FROM THE EDITOR

Jemal Inaishvili

The summer is at its height and, following all the rules, Tbilisi, which is languid with the heat, should not care for serious problems. However, the uniqueness and acuteness of the current period consist in the fact that we cannot afford this luxury. The problems and passions, be it in politics and all the more in the economy, do not fade away.

The World Bank’s conclusion, published this summer, that the Georgian economy is one of the most reformable and rapidly growing ones in Europe, once again points out to the appropriateness of the course being implemented by the country. What was unachievable yesterday is already the attained history today. However, the existing growth rates have entailed problems as well – first of all it is the unprecedented deficit of the export-import balance – one billion and one hundred million in six months – caused by the Russian embargo. The export indicator has seriously dropped according to the several basic articles and the issue of the new market’s development has arisen with all the acuteness. This problem is equvalent to real independence since the economy tied to Russia’s unstable market will not be able to advance. That is why we started a discussion on the export potential and the export policy on the whole. The conference held in “Sheraton Metekhi Palace” hotel at the end of July clearly showed us that a lot should be still done in this sphere. This discussion, what is going on in Georgia in this sphere, what is the dynamics and what are the trends in the neighboring countries – here is the main subject of this issue. What is the way out seen by the experts and economists?
A part of this discussion is the article concerning the tea business, the problems and prospects of this business – why we do not develop the 50 million domestic market and what is necessary for us to become a world supplier. This is the reality, Georgia will return to it and make it a serious export article. We do not share the nihilism that some experts and state officials have in relation to this issue.
The discussion on the order of determination of the customs tax and the customs value turned out to be in the centre of our attention. From our point of view, it is a rather delicate and serious sphere and there is a discussion of the recent document of the Finance Ministry in this issue. It does not contribute to implementation of international operations in Georgia and needs perfection, otherwise this document may cause serious fiscal problems and make the market more expensive.
A memorial plaque was unveiled on the dwelling house in Vera in honor of the famous Georgian economist and scientist, one of the founders of Tbilisi State University, who was unjustly persecuted during the communist regime. It is a rather important event today, since he was a model of European education and patriotism, a model of what how one should serve his country and lead the nation to complete independence by means of European values and education. We also offer you the article of Mr. Philip published 100 years ago in Ilia’s “Iveria”, which he edited on the issues having to do with the relations between Russia and Georgia on the instructions of Ilia. Time does not change Russia and its ambitions, this article makes us think once again of the present day and adds another imperial feature to Russia.
We present you details of the G8 meeting, Russia’s disappointment and its cherished wish to become a member of the WTO and the barriers that lie in its actions. What the summit brought to Russia, why analysts do not speak of this meeting’s achievements and what trends began to show in the world economy – read about these issues in the world economy review.
By tradition, we also present the review of the domestic and foreign markets, as well as scientific publications on various economic problems.
I wish you a happy holiday, my dear reader, and I hope that you will not have a tedious time with us. Till September.