Objective reasons of socio-economic differentiation and their adjustment priorities in Georgian regions (ABSTRACT)

Eugene Baratashvili, Doctor of economic science, Zurab Alavidze

Sustainable and safe growth of Georgian economy is impossible without overcoming and adjusting disproportions of socio-economic development.

The causes of socio-economic differentiation in Georgian regions are as follows:
1. Surplus factories inherited from the Soviet period and concentrated in large industrial centers, especially in Tbilisi;
2. Existence of so-called “mono-cities” whose economy unilaterally depends on one or two branches;
3. De-stabilization of regional economic system;
4. Inadequate replenishment of economic system with market infrastructure. Imperfect and contradictory legal framework;
5. Lack of accurate distribution of rights and obligations between government structures engaged in solving of regional economic problems;
6. Inadequate approach of the central government towards regional economic problems;
7. Unbalanced economic structure both in the country and its regions;
8. Structural and techno-innovational inertia, etc.
Adjustment priorities of existing disproportions in socio-economic development of Georgian regions:
1. Acceleration of institutional reforms, completion of institutional market framework formation, promotion of its stability and distinctness;
2. Improvement of sector economic structure in regions;
3. Adequate, accurate distribution of rights and obligations between central and regional government bodies engaged in solving of economic problems, formation of efficient management system;
4. Readjustment and overcoming of depression in lagging regions;
5. Promotion of businesses in problematic regions;
6. Encouraging move of businesses to regions and depressive areas;
7. Development of integration processes among regions, etc.