Problems of Customs Institutional Formation in Georgia (RESUME)

Akaki Akhvlediani

With economic stagnation in Georgian in the given stage, economists faced the problem of reorganising economy.

Certainly, priority should be attached to the reorganisation of country’s economic institutions and their adequacy to production and trade relations that are compatible with economy based on west-integrated market mechanisms.
The problem has brought home to us the necessity of studying the issue of customs institutional formation. At first sight, everything is obvious. However, there are also many difficulties and conceptual problems. Formation of customs service is a great attainment. Laws of the Parliament, economic reforms, president’s decrees, bills and decisions formed stable economic and legal grounds for customs activities thus making for fiscal implementation of budget.
Research of the topic has revealed the fact that formation of such institutions of fiscal and economic protectionist spheres as customs in transition countries like Georgia should not rely on copying system of other countries, but rather on the peculiarities of national economy, on the synthesis of political peculiarity and general European innovations.
It is important to perform this in three phases given the metamorphosis of economic relations after the change in the property and political scheme. The first phase should be creation of legal and fiscal market for transition period. The second phase is period of reforms and unification with European structures. The third one is institutions of Western type that is adequate to the production and trade relations and meets requirements of democratic market economy country. In the process of reforms in administration in 2004, this institutional improvement of administration should become a primary task.