FROM THE EDITOR

Jemal Inaishvili

The year is coming to the end and it becomes frosty both in the street and in the relations with the big neighbor.

In many aspects the economy will have to set out on a different path, and this mainly concerns export production, transfer flows and agriculture. That is why it is natural that the year 2007 will be a special one not only for the economy but, without exaggeration, for the statehood. So, the importance of the country’s main economic law – the budget is invaluable, since it the mirror of economic priorities. For this reason, it is already the second issue in which we give much attention to the draft budget of 2007. Probably, we have bored the readers with this subject, but we believe that publicity and transparency will be useful in this issue – more specialists and people will be involved in this matter.
We continue the discussion on the local budget in Professor M. Jibuti’s article (p.8) as well as on chiaroscuros of the Budget Law (p.13). Of course, listening to all opinions by means of our web site’s forum will be very interesting to us. The most important of them may become a subject for discussion in the parliament.
The issues of the Georgian financial market are very important from the viewpoint of the economy’s transformation. It is particularly significant now that an unprecedented case has taken place – a Georgian bank entered the ring of London Stock Exchange. A new era in Georgia’s economic sphere begins with the commencement of this quotation. The article contains the discussion on the financial market’s formation, modern management and the world trends, in which the problems of the financial and the currency market are given in a single context and a serious debate on the issues of the finance and currency begins (p.23).
Now that Russia threatens by creation of an energy or, to be more exact, gas cartel and monopoly prices not only to Georgia, but Europe as well, to which it has already proposed gas at the price 290 USD starting from 2007, it is very important to discuss the world trends, Russia’s policy on a global scale and consider the issues of Georgia’s energy security in this context. In summer we spoke about some aspects of this issue in my article published in “24 Saati” newspaper, but we considered it expedient to return to this issue again in view of the changed circumstances (p.34).
We again shall continue the subject of the export potential and consider the problems related to tea production along with the discussion on a very important issue – human resources (p.31).
Today, construction becomes the leader of the economic growth, but, along with many important improvements and increasing of its volume, it has some problems. So, we believe that the polemics in this direction is sure to interest our readers (p.44).
In this issue we offer you the reminiscences about Milton Freedman, since he was regarded among the economists who often change economic thinking and light up with grandeur halo not only the Chicago School, but the whole economic world. His death in November was a tragic event for the economists’ community and, I want to admit, quite a painful one.
We thank our devoted readers for not sparing their time and nerves to discourse upon difficult and serious subjects with us. Economy is important now, since, as the President has pointed out, “today the front line passes here”.