Indicative plan as a lever for affecting economic growth (ABSTRACT)

Khachaturyan Raisa

The article analyses the strategy of socio-economic development in Georgia that is oriented towards economic growth by means of applying indicative planning necessitated by production decline, crisis of finance and credit sphere and sharp deterioration of other socio-economic indicators in transition period.

Principal attention is attached to planned indicators and factual results. Through their detailed analysis, the article reveals the problem of systematic failure of forecasted indicators in 2000-2003 in such crucial macro-parameters as volume of GDP, industrial and agricultural production, employment, export and import, turnover of all kinds of transport and investments in fixed capital.
It is noted that decrease of economic growth is mainly stipulated by low quantity of added cost in major sectors of Georgian economy ? agriculture and industry, as well as by difficult situation in external trade.
In summary, a conclusion is drawn based on research results of socio-economic development indicators. The article mentions reasons for small volume of aggregate supply and demand that form depressive balance in Georgian economy. It is proposed to improve indicative planning with the view of turning it into an active tool for state regulation of macro-economic balance.