RESUMES

FROM THE REDACTION

REASURES ON MACROECONOMIC STIMULATION OF EXPORT. Gela Aladashvili In the article there considered the trends in the foreign trade system and the importance of Georgia’s orientation for open economy. Foreign trade become important for Georgia after gaining economic and political independence.

The planned economy that used to exist in the Soviet Union made Georgia and other republics dependent on each other. Attention is paid to the economic reforms that started in 1995, which were coordinated by international financial and aconomic arganizations. It is worth of notifing that Georgia must develop the links as with western European as C.I.S. as well. Though it is more important to have economic relations with developed countries than with third world countries. To recover Social-economical, industrialtechnological lagging of Georgia is only possible to integrate with developed countries. Much attention is paid to the role of investments in export development. There given four main directions which are the result of the international experience, by means of which different countries assist each other in increasing export. In the last part there given the arrangements to be implemented in Georgia in the nearest fitire for stimulation of the export sphere. RESUME MODERN METHODS OF FORECASTING OF TAX REVENUE’S REGIONAL STRUCTURE S. Sanadze B. Jobava In the article there considered modern methods of forecasting of tax revenue based on the costs-output model. The purpose of using of the mentioned economic model is analyzing of flexibility and dynamics of taxes. In the article, based on correlative-regressive analysis, there created an economic model that, according to all indicators, meets the requirements of its application in practice. The instruments of the above-mentioned model consist in estimation of the mechanisms that give specialists dealing with the budgetary process an opportunity of making a based on concrete numerical parameters forecasted appraisal of changes in budget revenues and the general economic growth as a result of changing of tax structures. In fact, the above-mentioned model is a complex of models that imply combined use of economic and balance methods. In particular, at the first stage an economic model is created in accordance with main macroeconomic indicators and types of tax revenues, the real basis of which is the data of the budgetary statistics and national accounts. RESUME RISK MANAGEMENT IN BUSINESS Goderdzi Chanadiri There are various kinds of risks in economic practice. Among them noteworthy are market risk, technological risk, risk of losses, and political risk. Market risk in business is mainly stipulated by sudden price change in production and selling of the produce. Constant price change has an effect on the condition of goods’ supply and demand. At the same time there is always a risk of changing of market opportunities, which, in its turn has an effect on production of concrete produce. The economy may experience a slump at the macroeconomic level. It may cause changes in the market structure and the level of goods’ assortment. It may also cause changes in produce’s life cycle. That is, the produce may become worthless sooner than it was envisaged when it was produced, and, besides, firms may incorrectly estimate the demand for this produce. Changes in technology – introduction of new produce, inculcation of new manufacturing methods – represent a big risk for business. As a rule, business is related a great variety of risks, but in most cases it is impossible to anticipate and manage them. A manager takes all possible measures in order to protect the firm from the anticipated risks. As it is known, a complete avoidance of the anticipated losses is impossible, that is why the worked out arrangements should provide for minimization of losses. If the anticipated losses cause financial difficulties to the firm, the manager confronts the choice – either to assume the economic risk, or pass it to another organization. At this time the manager uses the methods of risk financing. The firm can reduce its losses by means of self-insurance, which is related to creation of a special reserve fund and spending of a part of own floating assets, or taking of means from a special insurance fund. Large firms often establish their own insurance companies. Managers working in the risk management sphere choose such methods of risk control and management which will minimize the losses inflicted to the firm, or they will choose such form of insurance that will compensate the losses on beneficial terms in order to retain the firm’s financial standing. RESUME ECONOMIC ACTIVITIES OF COMMERCIAL ESTABLISHMENTS E. Kakhniashvili In modern conditions activities of commercial establishments should be based not only on taking care of current issues, but their main efforts should be spearheaded at creation of a solid basis for their future successful functioning. Present day life requires not sticking to old dogmata and standards but creative activities, persistent search, securing of effectiveness of all economic elements. In this respect, consecutive formation of separate elements of commercial establishments’ economic and social development is very important. Based on all this, we consider it expedient that unity of retail trade’s large-scale (enterprise, firm, etc.) activity should be built taking into account the following elements: Section I – retail commodity turnover and stock of commodities; Section II – creation and use of financial resources; Section III – formation of demand and its substitution (marketing); Section IV – material and technical basis element; Section V – development of labor resources; Section VI – social development. A well-grounded plan should exist in commercial establishments, which should be specified as a result of final determination of contract obligations. One of the leading positions in the trade service system belongs to service standards which include such undertakings as a broad assortment of goods in the network, inculcation of progressive trade service methods, perfection of trade-technology processes, etc. Here we have to add human element as well: courtesy, cordial interrelation, concern for customers, creation of favorable conditions for them in buying goods, etc. RESUME SEPARATE ISSUES OF DEVELOPMENT OF AJARA’S NATIONAL ECONOMY M. Chanidze XX century was a century of radical turns in Georgian history. Ajara did not manage to avoid these turns either. Changes in the country’s political structure, declaration of Georgia’s independence, break-off of the existing economic relations and inculcation of market economy principles called forth a lot of social and political problems for settling of which it became necessary to determine priority directions both in the whole of the country and in the autonomous republic. Wide-ranging effective utilization of unique recreational zones can be considered as one of such priorities. Development of tourism and health resort business in Ajara’s recreational zones will contribute to strengthening and stability of the region’s national economy. Ajara’s recreational region is multifunctional. Health-resort, mountain-climatic, sanitary and tourism-cognitive facilities are concentrated here. In the region there is a complex of resorttourist establishments, sanatoriums and holiday centers that are located in Kobuleti, Makhinjauri, Green Cape and Tsikhisdziri. One of important integral parts of the national economy’s development is the region’s resources of minerals, mining and processing of which is a factor that determines the country’s economic development and strength. From the viewpoint of mineral resources, Ajara is characterized by a wide range of minerals. In particular, it is famous for its deposits of precious and non-ferrous metals. The country’s and Ajara region’s progress will be largely promoted by correct implementation of reforms in agriculture, which will give us an opportunity of saving tea-growing, citrusgrowing, viticulture, horticulture, fruit-growing and tobacco-growing sectors, the revival of which should turn into the main direction of the process industry’s development. Realization of a correct economic policy in the region is the main factor for attracting of interest of those foreign businessmen and entrepreneurs that have so far been cautious about investing in production and agriculture. Protection of constitutional rights of citizens is one of the basic guarantees for realization of the investment policy and mutually beneficial cooperation with the civilized world, and it should be purposefully implemented by the region’s legislative and executive bodies, which will eventually provide for a steady rise of the population’s money incomes, elaboration and implementation of new economic programs, as well as improvement of social protection and well-being of people. RESUME PRIORITY RESTRUCTURING DIRECTIONS IN CONSTRUCTION ENTERPRISES Khatuna Arabuli Over the past decade the economic policy being carried out in Georgia has seriously amended the activities of all production enterprises. The only way of rescuing the enterprises that existed during the soviet period is reorganization and restructuring. That is why the most important task of management of any organization is elaboration and implementation of a restructuring project. Formation of an appropriate management structure in new market conditions first of all implies transformation of a pure technocratic management style into a social format, or substitution for social management. First of all, social management implies that managers should study and introduce the methods of analyzing the motives of peoples’ behavior for effective utilization of their potential. For this purpose, harmonization of interests of shareholders, managers and ordinary employees is necessary. For successful functioning of construction organizations after transition to market system a special importance is attached to strategic issues under which, during the soviet period, only production was implied, but now, besides production, finances, marketing, personnel are implied, that is the organizational structure has increased and became more complicated, and required structural reforms and redistribution of the rights and obligations. As a result of the reorganization, bringing to the forefront of strategic plans stipulated for the necessity of substitution of traditional management methods for strategic ones. The process of observation over the process of enterprises’ reformation resulted in revelation of the two strategic directions. The first one implies an active strategy orientated for increasing of incomes out of an enterprise’s activities, while the second one implies realization of passive measures that are orientated for reduction of production cost or increasing of nonproduction incomes. Oriented approach in the process of enterprises’ reorganization is considered as the most successful method for increasing of quality of the produce, when meeting of a customer’s requirements is a priority. It is expedient that management in the new organizational structure should be implemented by two directors: executive and technical ones. For increasing of efficiency rate, the deputy for supply issues should be subordinated to the executive director. The functions of the chief financial officer become particularly expanded and the whole financial management of the organization is placed under his authority. In market economy conditions, along with increasing of importance of analytic works, formation of financial-analytic departments in construction organizations is possible, and financial policy of a construction organization will be based on the results of their analysis of financial and economic state of the organization. For increasing of the effectiveness of organizational structures, in departmental and job descriptions the priority should be attached to perspective work directions, and the operative control over the current works till their completion should be carried out by the customer directly, which will stipulate for reduction of finance and time expenses spent for the control. RESUME TOURISM POTENTIAL OF KAKHETI REGION Assistant professor N. Katsitadze Assistant professor L. KochlamazashvilI In Georgia, as a country having a high tourism potential, tourism can freely have a high level of tourism exportability and it should play an important role in unceasing of revenues and large-scale employment of the population. Natural-geographic disposition of the tourism potential on the whole territory of Georgia gives an opportunity for equal development of the regional economy. At the same time, tourism stimulates development of other brunches of the economy (transport and communication means, agricultural sector, food industry, construction). Tourism has a particular effect on the country’s economy, and vice versa – the economy provides for the development of tourism. Location of Georgia, including that of Kakheti region, stipulates for the fact that first of all Western Europe is considered as a potential customer of the country’s tourism market. However, at the initial stage it is possible to increase the export of summer tourismrecreational product to the Caucasian and Russian markets, since former soviet countries are still not fully involved in the international tourism and there is a big potential for attraction of tourist flows thanks to our advantageous transport-geographic location. Low level of the population’s incomes, high unemployment rate, accommodation of temporarily displaced persons in the region’s sanatoriums, hotels, holiday homes and resort localities – these are the main factors that inhibit the development of tourism in Kakheti. Because of unavailability of modern information-stocking system in Georgia, a full-fledged collection of data on the number of the arrived tourists and received profits and, correspondingly, its presentation to the international tourism organizations cannot be implemented, while the available statistics is contrary to fact. Because of scantiness of statistical and other data, appraisal and forecasting of Georgian tourism market is confronted with serious difficulties. That is why it is necessary to inculcate “registration cards” which will be filled in by foreign tourists arriving by air, motor and railway transport. Increasing of incomes in Kakheti region and ensuing raising of the population’s well-being will be stimulated by the development of small-scale private enterprise and creation of the necessary infrastructure, in particular: development of the network of public catering units, including fast food units, development of entertainment parks, construction of open and indoor concert halls, construction of roads, development of local production of agricultural products based on the increasing demand for them, which in the end will raise the level of services rendered to tourists. Attainment of this objective is possible by means of correct and rational organization of tourism business in the region. RESUME TAX STRUCTURE – IMPERFECTIONS AND PROBLEMS OF ITS REFORMATION Prof. Tamara Gamsakhurdia Lali Khurtsia The importance of tax reform issues, especially for the countries with transitional economy, including Georgia, stipulated for the necessity of studying the experience of the developed countries. Formation of a tax structure that corresponds to market economy principles on the one hand and social and economic development of the country on the other, objectively requires reformation of the tax structure which has to play an important part in the process of realization of fiscal programs. There is a wide discussion in economic literature concerning possible approaches for improvement and perfection of the tax structure. At the present stage the finance science cannot give answers to many questions concerning taxes and, on their part, tax reforms that are being carried out in the countries with market economy are evidence of the incessant process of formation of a fair, well-founded and perfect tax structure which, proceeding from the country’s interests, should take into account the interests of the national economy. In the presented work there considered tax reforms carried out in different countries of the world with the purpose of such macroeconomic aggregations as: national income, employment, economic growth, balance of payments deficit, etc.