SIENCE

FROM THE REDACTION

The Problems of Regulation of the Labor Force Market and the Main Directions of Perfection of the Population’s Employment
Resume
Tamila Arnania-Kepuladze
Candidate of Economic Science, Assistant Professor

It is pointed out in the work that at the stage of formation of
the labor force market the role of the state is especially
important on account of lack of development of its main components and the mechanism of self-regulation and self-organization. In implementation of the state policy of the labor force market’s regulation, first of all the objectives of this policy and the ways of achieving them should be determined. From our point of view, the main purpose of the state policy on the labor force market is, on the one hand, perfection of employment and reducing of the unemployment rate on the other. The state should secure accomplishment of such tasks as: a) regulation of the labor force supply b) regulation of demand for the labor force c) perfection of correlation between the demand for and supply of the labor force. Accomplishment of each of the above-mentioned tasks is possible based on implementation of certain arrangements. The employment policy should be spearheaded at changing of the very nature of the labor force market, which means transition from excess supply of labor force with low productivity to low unemployment rate and highly productive employment. This kind of model of employment policy must be based on the currently existing social, economic and demography specificity of the country, peculiarities of its culture and traditions. In the dissertation work there substantiated expediency of the state employment policy. The program should be of complex character, in particular, along with raising of the employment rate, such employment characteristics as its efficiency, terms, structure, etc. should be envisaged in it. The problems currently existing on the labor force market are in many respects stipulated by the same reasons as the current economic crisis in the country. That is why the employment policy should be implemented within the framework of a single social-economic policy, one of the priorities of which is employment.

The Criteria of Economic Efficiency of the Region’s Construction Market
Resume
Paata Chaganava

Judgments of the efficiency of the region’s construction
market imply judgments of public and internal company
efficiency.
Public efficiency implies maximum meeting of customers’ demand for the construction product based on rare public resources.
Internal company efficiency implies a possibility for construction companies to maximize their profits be means of minimization of costs.
All the aforesaid can be united under the notion of “static efficiency”.
According to the classical macroeconomic theory, a purely competitive market is an ideal market. However, a purely competitive market cannot reach the condition that can be called “static efficiency” – when companies have incentives and an opportunity of financing and introducing in production the achievements of the scientific and technological progress.
As a really effective construction market of the region can be considered a market on which competition is retained and, at the same time, large companies are engaged in technical development of production.

The Prospects of Development of Financial-Economic Analysis
Resume
T. Jolbordi, Doctor of Economic Science
N. Abesadze, Doctor of Economic Science
R. Kinkladze, Doctor of Economic Science

Formation of market relations in Georgia, mass priva-
tization, appearance of different ownership forms, for
malizing of foreign economic relations and internationalization of business required creation of a corresponding international financial information base which will be available for all information users.
Inculcation of international standards in Georgia caused a lot of changes in the economic literature, in particular, in business accounting and economic analysis. Many issues again require working up and a new approach; however, these changes should be introduced deliberately, there should not be an exact analogue of the foreign model and the Georgian experience on this issue should be taken into account so that the positive experience should be retained and supplemented with a new progressive one.
At the same time, we believe that raising of a timely and relevant issue – enterprise management should be considered in the international context in which financial analysis will not be separated from other aspects of economic analysis and, along with them, will constitute a single whole.

Consumers’ Requirements and Segments on the Tourist Market
Resume
Tamar Koblianidze, Doctor of Economic Science
Maia Meladze

Tourist requirements are formed under the influence
of a great number of factors. In each concrete case all
factors have their own role stipulating consumers’ motivation.
A. Maslow’s motivation theory was adapted by English recreologist P. Pierce who singled out the following levels of requirements in recreation: weakening, excitement, interrelation, respect and self-development.
The theories of Maslow and Pierce represent the basis of market segmentation.
In tourism there accepted market segmentation in accordance with geographic, demographic, social-economic, psychographic and behavioral signs. American scientist S. Plog singled out two extreme types of tourists: psychocentrics and alocentrics, though a large part of travelers belong to the category of medium centrics. In accordance with the behavioral sign, for segmentation noteworthy is the profit seeking (price level, quality, kind of environment, adroitness, etc.) indicator.
Important is the journey duration indicator, in accordance with which the experts of the World Tourism Organization single out seven segments ( 1-3 days, 4-7 days, 8-14 days, 15-28 days, 29-56 days, 57-91 days, 92-365 days), and four segments of the tourism market by the combination of education and income indicators: a) tourists with medium and comparatively low level of education and incomes b) tourists with higher than medium incomes and higher (rarely with special secondary) education c) persons with high income level and higher education d) the category of highly educated people with different income level.
The considered tourist requirements and segments do not fully reflect the market’s peculiarities, however they give a sufficient idea of its diversity.

National Systems of Food Products Safety Control
Resume
Professor Paata Koguashvili
Assistant Professor Demur Bakhtadze
Assistant Professor Murman Togonidze

According to the norms accepted in the international
practice, the indicator of competitiveness and its reg-
ulation do not require special interference of the state. The main concern of the state is safety of products, so that marketed products might be of various king but safe.
Identification of a product’s safety and quality is inadmissible for the following reasons:
1. A product’s safety is a subject of state control in all developed countries and is obligatory.
2. In using of product quality control mechanism, its compliance to the standard is established when, according to the practice accepted in the world, compliance of the product to the standard does not necessarily means that such product is safe (harmless) for a customer.
Fulfillment of provisions envisaged by the legislation is obligatory for protection of consumers along with creation of corresponding departments that will be responsible for safety of products. The following bodies control safety of products in Georgia: “Sakstandard”, the Ministry of Agriculture, the Ministry of Environmental Protection and Natural Resources and the Ministry of Health. They are charged with revelation at goods markets of products harmful to human health and constant control over their withdrawal from the goods turnover, giving information to the population concerning harmful products, prohibition of selling of such products and carrying out of different compulsory arrangements.
The main principles of safety of food products are based on three components of risk analysis:
a) risk assessment (that includes scientific advice, recommendations and information analysis);
b) risk management (that includes control and regulation);
c) spreading of information concerning the risk and notification.
European experts believe that creation of new departments for control over food products will raise the level of customers’ protection and create a better system of food products’ safety.
The analysis shows that in no country exists a department that is generally responsible for safety of consumer products. European experts believe that creation of new departments for controlling food products will raise the level of customers’ protection and create a better system of food products’ safety. The analysis shows that in no country exists a department that is generally responsible for safety of consumer products. All countries have different controlling systems but their functions and competence are well determined and differentiated.
As to control over other consumer goods, it is desirable that the functions and competence of different should be differentiated, which will provide for formation and functioning of an effective system securing a full-fledged protection of consumers.

Importance of Management for Successful Implementation of the Reform
Resume
Tsiuri Okruashvili

The issue being considered by the author in the article
arose in studying of management of Georgian com-
mercial banks. At the initial stage of the research, serious moments concerning the issues of both financial and personnel management were concretized. Proceeding from the aforementioned, it is natural that there arose a necessity of analyzing the international experience in bank management.
In the article the author considers the issues concerning the necessity of inculcation of management and its integral part – marketing in the banking sector. In the author’s opinion, the XXI century makes new demands to commercial banks. In particular, the management of assets-liabilities, liquidity-profitability and, what is most important, of complex management is of great importance.
The author singles out two main blocs in the management sphere: financial and personnel management. In the author’s opinion, both blocs are equally important for successful functioning of a bank.
According to the author, with the purpose of successful development of the reform in Georgia, it is necessary to create a center of bank marketing provide services for both banks and nonblank establishments and subsidiaries.
At the same time, the author considers it expedient to introduce in Georgian commercial banks the methods of assets and liabilities management that are popular in banking practice of the developed countries and are known under the following names:
1. The general funds method
2. The method of conversion or distribution of funds
3. Scientific method or the method of linear programming. Their utilization will give the management of a bank an opportunity to choose the categories of operations with assets, set priorities of general character, solve the main dilemma of a bank – the problem of liquidity and profitability, which will have an effect on strengthening of separate banks and the whole banking system.

The Theoretical Analysis of Currency Crises
Resume
Samson Pkhakadze

In this article there considered changes of the exchange
rate as a result of development of crisis phenomena in
the economy and on financial markets. In the scientific work there summarized the results and summarized the basic models describing currency crises in the countries with transitional and developing market economy. In the theoretical analysis of currency crises of the second half of 1990 there revealed specific features peculiar to currency crises of this period and the basic provisions of the models offered for explanation are analyzed. Definition and description of “crisis transfusion” and “crisis infection” effects are given. It is proved that “first” and “second” generation models are not enough for adequate modeling of the modern currency crisis, and that application of the “third” generation models is necessary.

Peculiarities of the Necessity of Parallel Work of the Georgian Power System in Relation to the Power Systems of the Neighboring Countries
Resume
N. Samsonia, N. Giorgishvili

In the work there given the advantages of parallel work of
integrated power systems in comparison with the ones
operating in autonomous mode. In particular, non-simultaneity of maximum charging, raising of stability of the system’s work and reliability of electric power supply to consumers, a possibility of export of surplus electric power, hiring of local specialists and workers, an incentive for subsequent mastering of non-traditional energy resources, etc.

Commercial banks’ activities in formation and development of tax administration
Resume
Revaz Lursmanashvili

Ensuring full mobilization of monetary funds from banks
into budget in terms of market economy is one of the
important tasks as for state so for taxpayer. Proceeding from the mentioned, necessity and purpose of tax administration comprises not only state control, but this notion is comparatively wide.
One of the essential problems of banks’ taxation needs immediate solution, that is a coordination of actions and interaction, which will contribute to meeting requirements envisaged by tax code, between Georgian National Bank, as a regulator of accounting in banks, and Ministry of Finance, as a tax collection regulatory body. For this aim, it is necessary to implement a number of complex measures that will improve this process, privately: first, registering taxpayer, second, controlling timely and full tax payment by banks; third, analyzing income tax from commercial banks; fourth, estimating expediency and efficiency of any tax collection from commercial banks; and finally, for the aim of improving tax law, raising questions that will ensure the solving of points at issue.