THE ESSENCE, OBJECTIVES AND IMPORTANCE OF ECONOMIC SECURITY IN MODERN WORLD

Besik Aladashvili

Economic security (hereinafter ES) is an integral part of national security and, proceeding from priority of the economic basis, it can be said that it is its foundation as well, since centuries-old history of society’s development shows that the main directions and trends of political, ideological, social, cultural, etc. development is finally determined by the economic development.

The collapse of the Soviet Union clearly showed us that on the threshold of the 21st century ensuring of national security for a long period of time depends not so much on military power as on the competitive ability and viability of the economy. First of all, for formulation of ES notion, it is necessary to determine the notion of “national security”. The term “national security” appeared in political dictionaries thanks to the President of the US in 1901-1908, Theodore Roosevelt. In 1904, in his address to the Congress he substantiated the occupation of those Panama’s territories where later on Panama Canal had to be built, and he explained it by the national security interests. Theodore Roosevelt’s merit that from the beginning of the 20th century the foreign policy of the US acquired a more active character, and global political and economic interests of this country became a priority. Since then the notion of “national security” was specified and extended. For instance, a famous American politologist Hans Morgentaum included in the national security issues not only military ones but also all the issues related to the country’s interests. The US was the first country in the world that passed a corresponding law in 1947 for solving the national security issues, and in the same year a special structure was formed – “The National Security Council”. Later on scientific investigation of the above-mentioned issues in the world has been extended though the US remained the leader from this point of view. A number of scientific works and articles was published (U.Lipman, G.Rener, G.Kenan, etc.) in which the national security issues were considered. The former US Secretary of State Henry Kissinger pointed out that national security includes all spheres in which the issues related to the society’s viability are solved. He believes that T. Roosevelt was the first American president that substantiated that it was duty of the US to spread its influence all over the world, and build relations with other countries based on the national security concept. And in the opinion of a famous scientist and political figure Zbigniew Brzezinski, the country’s security depends not only on military power but on the power in the economy, social, political, moral and other spheres. It must be stressed that the single ES system is an integral part of the state national security concept and policy and its basis at the same time. ES is a predetermined complex system of political, economic, power, etc. (social, technological, informational, ecological, legal, etc.) arrangements the implementation of which provides for a constant protection of an individual, society, vitally important interests of the state and dynamic development of the country’s economy both in peace (normal) conditions and in internal and external situations taking into account the dynamics of political, economic, ecological and other threats. The main objective of the ES changes in time and space depending on the strategic and technical tasks confronting the society. Ensuring of the country’s ES is one of the main functions of the state. Proceeding from the fact that the economy is the basis of development of an individual, the society and the existence of the state, it becomes clear that prediction and avoidance of both real and potential economic threats is very important. It must be specially pointed out that, unfortunately, studying of ES issues and their theoretical processing has not been carried out in our country at a serious scientific level. As to the practical aspect of ES, here the situation is more regrettable – the level of Georgia’s current ES is beyond criticism. In modern global world the necessity of ES ensuring is stipulated by the following basic factors: 1. Confrontation of national interests and aims of different countries, which is mainly stipulated by still growing interdependence of the national economies and internationalization of economic relations; 2. The confrontation that appeared as a result of uneven distribution and use of strategic resources; . Ever increasing competitive struggle for mastering of markets; 4. Confrontation between civilizations owing to religious and economic inequality. Presently, the growth of competitive ability of a country may contradict to the interests and aims of other countries. Ensuring of ES is a solid base of sustainable development of an individual, society and state. At the same time we should not consider ES as ideal model that will automatically work without participation of the society and state structures and lead us to the wishful result. From the geostrategic point of view ES is: Global – implies such system of economic and political interrelations according to which the sovereignty and economic development strategy of separate states of the world will be protected by the international legal norms; Regional – ensuring of collective ES of the countries situated in one concrete region based on common economic, political, ecological and other interests; Collective – cooperation of several geographically outlying countries on ES issues. A vivid example of collective ES is the activities of European structures for ensuring free competition principles on European markets; National – is the basis of the three abovementioned levels. Presently, the necessity of global ES ensuring is particularly relevant since increasing of internationalization of economic relations and intensification of international division of labor have considerably weakened the ES level of separate countries involved in these processes, and gave rise to a number of attendant negative phenomena. National ES is a complex system that unites three dialectically (organically) interrelated horizontal levels: individual ES, social ES, and state ES. State ES implies protection of the country’s economic sovereignty and interests by means of legislation and corresponding administrative structures. Social ES implies protection of entrepreneurial-economic interests and property of all stratums of society and social groups residing in the country. Social interests consist in the unity of economic interests of all members of the society (individuals). Individual ES implies protection of property and social-economic interests of each citizen of the country. Historically, creation of a democratic state is related to protection of security of a society and an individual. Community of interests (individual, of various stratums and nationalities) and the necessity of overcoming the threats by joint efforts stipulated for formation of a state as a single consolidated structure. As early as in the 17th century, a famous English philosopher Tomas Hobs pointed out: “The main objective of a state is ensuring of security”. And indeed, a state is a mechanism that should serve for the implementation of the interests of an individual, society and nation, and protect them from external or internal threats. A long-term community of interests of subjects existing in the state is a condition for the development of the state and nation. At the same time opposition and differentiation of interests becomes a reason for defeat in the face of a common threat. In a democratic country a state should be a guarantor of the national security, and ensuring of security of the state and society should be spearheaded at protection of individual freedom and security. Economic security for each stratum is characterized by single indicators of economic threat, the difference between which is expressed only by the scale of effect in time and space and vigor quality. The process of elaboration of methodological foundations of a single national ES system consists of the following top-down directed vertical steps united in a logical consecution: I. Formation of strategic and tactic objectives of the country’s economic development. II. Singling out of economic interests and development priorities from these objectives. III. Forecasting of the problems (“sensitive points”) that may inhibit the implementation of economic interests. IV. Revelation of concrete threats that impend the implementation of the mentioned interests and priorities. V. Establishment of ES indicators and their boundary parameters. VI. Choosing of methods of ensuring ES. VII. Elaboration of ES concept and its approval at the legislative level. VIII. Elaboration of ES strategy, drawing up of ES special program. IX. Implementation of ES strategy. I. Formation of Strategic and Tactic Objectives of the Country’s Economic Development Implies economic progress of an individual, society and state as well as sustainable development over a long period of time, formation of the main (general) directions and solving of intermediate and current (concrete) problems of economic development (e.g. overcoming of objective and subjective threats of the transitional period to market economy). II. National Economic Interests and Priorities National interests are the unity of concrete requirements (objectives), meeting of which provides for the existence and sustainable development of an individual, society and state over a long period of time. A famous French diplomat and scientist Zh. Kambon pointed out: “The interests of people do not change. They are determined by nature, geographical situation and people’s own character”. The classification of national interests is as follows: Common to all mankind (global), geostrategic and local (current). The following is referred to common to all mankind (global) national interests: protection of the country’s territorial integrity; retaining of economic and political independence; development of the society based on democratic principles; raising of the population’s living standard, etc. Global (vitally important) national interests represent desired objectives of all societies and basically have common characteristics for all countries. Subsequently they 8 determine geostrategic and local (concrete) economic, political, social and other interests. Geostrategic interested are not limited to the country’s geographical border’s only, since globalization and integration processes currently taking place in the world, whether open or latent ones, have a strong impact on the development of separate countries. That is why it is possible that national interests may encompass vast geographical area. Geostrategic economic interests are related to a full enabling of economic potential of the country, retaining of economic and political stability and planning of perspective development directions for long and medium-term periods. Local interests vary depending on concrete stages of development of a state, society and individual. The interests resulting from the economic problems confronting the state and society are localized, but do not come to too concrete economic objectives. National interests – represent the basis of the national security and their protection requires existence of corresponding legislation, structures, bodies and financial means in the state. The conflict of national interests between the countries attends world globalization processes, and with the purpose of its overcoming the countries often have to make compromises. However, coordination of the national economic policy’s implementation and regulations concerning economic relations with other countries based on the recommendations received from international organization should not overshadow the national economy’s objectives. Singling out of only our country’s interests and subsequent planning of corresponding arrangements is not enough for protection of the national ES. It is necessary to establish geostrategic and local interests (often latent) of other countries, bilateral objectives and interests, try to forecast possible conflicts and neutralize problems and threats arising from them. IT is necessary to determine the main, priority objectives among the large number of national interests and direct all resources and efforts for reaching them. III. Forecasting of Problems As a rule, economic problems are of provoking character and without timely neutralization they may develop into a threat. IV. The Notion of Economic Threat and its Classification Threat is a constant category, it cannot disappear and cannot be lost. Only changing of its parameters, directions, time, origin and geopolitical space is possible. Economic threat is the unity of negative phenomena and processes generated after aggravation of the county’s internal and external economic problems (existing and expected ones) that are at variance with public interests and inhibit the current and perspective development of the state. In determination and classification of the economic threat we should take into account only global and geostrategic problems, since solving of day-to-day problems and correction of minor imperfections is the subject of the country’s concrete economic policy. That is why broad and too general interpretation of ES notion will only inhibit the solution of ES problems. V. ES Indicators and its Boundary Parameters A special importance of the abovementioned issue is stipulated by the circumstance that determination of ES indicators and formation of their boundary parameters is the corner stone of timely and effective solution of the ES problem. ES indicators are the aggregated economic indicators that are determined by separate groups of interests, and which may represent the biggest threat for the national economy, for instance: the volume of GDP; monetary and credit system; foreign economic relations; reserves of strategic resources; budget deficit; foreign and internal debt; scientific and technical progress; replacement of fixed assets; resource potential and its replenishment; corruption; shadow economy, etc. It should be stressed that ES will reach the highest level if the whole system of ES indicators does not exceed the predetermined security limits or boundary parameters (which, as a rule, are expressed in figure terms). In processing concrete quantitative indicators both minimum and maximum permissible boundaries as well as the so called “corridor” should be taken into account. VI. Basic methods of Ensuring ES In conditions of current global world, confrontation of interests between sovereign countries often takes place. The countries protect their interests by both traditional means – diplomatic negotiations, economic measures, economic sanctions, military power, and modern ones – when an increasing importance is attached to active participation of special services in protection of economic security of the country’s and national capital. The basic methods of ensuring ES can be formulated in the following way: 1. Economic measures 2. Political and diplomatic measures . Power involving measures (using of adequate political and economic sanctions, as well as maximal enabling of military power and abilities of special services). However, we should not consider the above-mentioned methods as functioning independently, in a fully autonomous mode. They are elements of a mosaic picture of ordinary national ES. VII. ES Concept ES concept is a system of general views on ES issues in which the content of the country’s ES, objectives and the main ways of reaching the objectives are formulated on a conceptual (doctrinal) level. ES strategy is worked out based on it. VIII. ES Strategy ES strategy develops and concretizes ES issues taking into account separate most important indicators and parameters, singles out priority directions of ES ensuring based on the long-term (5-15 years) and medium-term ( -5 years) tasks confronting the country. IX. ES Target Programs ES target programs are worked out based on the ES strategy (e.g. “energy security”, food security”, “communications security”, “strategic resources provision security”, etc.), which, on their part, represent the basis of implementation of ES strategy. X. ES Policy ES policy represents concrete measures carried out by joint efforts of an individual, society and state structures for protection of the country’s ES. At this time ES target programs become filled with content and administration, control and correction of their implementation takes place. Thus, these are the general principles of building of a single system of economic security, the methods and means of its ensuring.