From the Editor I

Jemal Inaishvili

The world economy stagnation era has started. The US dollar is constantly losing its high rates and prices on fuel and other products are growing.

There is a significant drop on stock market. Last sessions of February were the most important with the maximum of drop. The world faced financial crisis exactly ten years ago (not including 2001). 1998 world crisis sharply covered Asian financial market, our county as well as CIS countries. By the way, crisis then began with liquidity deficit in banking and financing sector. That is why our readiness is so important to reduce the crisis influence on Georgia and to create a special working plan. By the way, there were certain people then and even now stating that the crisis will not affect us, although they seem to forget that Georgia has become an integral part of the world and despite the absence of perfect functioning finance markets, it will definitely concern us.
We have come back to the issue of National Bank once again and we consider that there are number of items to be discussed (pg.8). Time will show whether the part of the program is so called ‘revolutionary package’ or not.
Georgian Chamber of Commerce and Industry traditionally announced winners of Small and Medium Enterprises Competition 2007. The winners were awarded by the president of Georgia at Sheraton Metechi Palace Hotel. The above mentioned business sector requires special support. Thousands of farmers and small entrepreneurs work hard, like ants, building the country’s economy. You can find an extensive overview about the competition in this edition (pg.23). We didn’t leave changes in neighboring Russia without attention, as the country is one of our major trade partners. It is important heritage will the new leader be handed and what economic course will he follow at international market. One can state that he will continue Putin’s route, although let’s not hurry. Russia’s direction will become clear in a year time. President’s position totally changes a person and I do not think Mr. Medvedev is an exception. Russia has no other way than to have friendly relationship with Georgia. The world undergoes changes and Russia’s imperial goals may not come true. In case Georgia doe not become a member of EU, it will definitely be a member of The Mediterranean Union, suggested by French President Nicolas Sarkozy and Angela Merkel. Although we were not invited at the summit of the union in Barcelona, but let us keep in mind that Black Sea is the part of Mediterranean Sea and we have the opportunity to become the members of new Union together with EU. You can find special overview of Putin’s heritage in economics at the present edition.
We have invited experts with the purpose of discussing the rush about pharmaceutical business. It is the hardest business. Establishing each type of medicine requires USD 20 million and a 5 year term. Its distribution is also a hard task, especially in a small country like Georgia. Exporting pharmaceutical industry has risen during this period. Anyway, on the other hand, price on medicine has significantly increased. You can find an exclusive overview on this issue in the present edition (pg.16).
We have dedicated an important part to the world market trends and we believe that it is fair, as all of us, as well as business structures are directed to the West, to supposed recession level. Therefore we have decided to offer extensive materials and analysis to our readers. We have also prepared a research on Business development hampering conditions in Georgia. Prime Minister Mr. Lado Gurgenidze attended the meeting of the Georgian Chamber of Commerce and Industry Board in February. We reported on our last year’s activities. Besides, business representatives spoke about various problems, including the issue of fines in administrative code that is the result of lobbing and that do not support the business development. We hope that the issue will be improved in the nearest future. At any rate Prime Minister promised to discuss it. You can find a letter on this challenge that is quite important for the development of business (pg.14)
The scientific part of the present edition is quite extensive. I believe you will find it quite interesting as there are quite interesting statements. I would like to emphasize Mr. Rezo Gvelesiani’s article on economic development policy, strategies and challenges. Also Ramaz Zubiashvili’s analysis on population‘s old age etc.
We traditionally offer you the world and internal market overview and we hope that you’ll find us useful again.