Factors that obstruct or limit economic growth in Georgian regions (ABSTRACT)

Zurab Alavidze

In past years favourable factors of economic growth in Georgia as well as in regions were as follows: provision of macroeconomic and financial rehabilitation, certain improvement of criminal situation, inflow of foreign capital, increasing support of international community, gaining of certain knowledge and experience in the field of business administration, implementation of Trans-Caucasian large projects – construction of Baku-Supsa pipelines and Shahdeniz-Turkey gas pipelines, realization of international projects on the restoration of engineering power and communications, etc.

There were the following specific local restrictive factors of economic growth in Georgia:
– Existing impediments in electric energy supply. In some regions, towns or settlements energy was supplied for 2-3 hours a day, which, in fact, excluded any possibility of industrial units operation;
– Low level of natural resources provision;
– Dependence of agriculture and food industry on natural climatic conditions;
– Lack of infrastructure development (roads, airports, sewerage system, communications as well as other structures essential for the production and distribution of goods and services);
– Lack of regional management and regional marketing development;
– Lack of regional markets development, etc.