FROM THE EDITOR

Jemal Inaishvili

The year 2006, which has brought us nearer to Europe and the European market, is coming to the end. All the problems that arose because of the Russian embargo are pushing the Georgian business to the West.

This year huge steps have been taken in logistics, marketing, management as well as in inculcation of innovations and taking over of the standards. Probably, a logical conclusion of that was the entry of a Georgian firm or, to be more exact, a bank to the world’s largest platform – London Stock Exchange. I do not think that anyone will blame me for complacency and a vivid confirmation of that is the annual final meeting of the members of the Chamber of Commerce and Industry (p.8). At this meeting we were speaking of all the problems and we have no illusions that a full substitution of the Russian market will take place in the coming two or three years, that it will be easy for the Georgian business to enter the western economic space and that this transformation will cost cheap to the Georgian production. However, sooner or later it will happen and the sooner we shall follow the path of the Baltic or West-European countries the sooner we shall achieve the desired goal – complete integration into Europe and growth of the Georgian output’s production in accordance with the requirements of this market.
The aforesaid makes the analysis of the world economic problems more relevant to us. It is absolutely clear that the processes in our economy are completely dependent on the trends taking place there, be it exchange rates (in particular, weakening of dollar’s positions) or raw materials’ market prices. That is why in this issue we have paid much attention to the problems of the world economy in 2007 and made it the main subject. There is no doubt about your interest in the expected prices of fuel and basic products. We hope that our experts’ conclusions will help you to correctly direct and plan your business activities in the coming year.
A serious enlivening of the Georgian financial sector has become evident and for this reason we considered it expedient to return to this subject. I understand that it is still far from civilized forms. The processes taking place there remind us of a sunny but frosty weather in January, but it is a fact that the world’s leading investors have taken interest in investing to the Georgian hotel business and banking sphere, and it was the basis of the solidity of our payment balance in 2006. True, the 70% deficit of foreign trade is a serious puzzle, but capital inflow in this period has surpassed it. At the same time we do not forget the main problems related to the export potential. A serious group of French investors was on a visit to our country (p.10), and we, together with world level experts, have held a seminar in the wine sphere for Georgian businessmen. We offer you a rather interesting material on the trends and problems of the world wine business, as well as foreign experts’ views concerning Georgia’s possibilities (p.15). It has become clear that a lot has to be done from the viewpoint of changing of the market’s geography and investment attraction, but the interest of the serious and solid business in the Georgian business can be clearly seen.
We traditionally offer you the review of the world and the Georgian market, as well as interesting works of Georgian figures in the scientific rubric.
We cannot but mention the 130th anniversary of Ivane Javakhishvili and the festive arrangements held in the University, since now that the reformation of the higher school and the University is at the decisive stage, it would be good to remember once more our ancestors’ doctrines concerning the system of national education.
And finally, with all my heart I would like to wish you a merry Christmas and happy New Year and say goodbye to you with the best wishes.