SUMMARIES
FROM THE REDACTION
State Policy for Developing Small and Medium Enterprise
Tamar Rostiashvili
Georgian state policy for the development of SME sector has gone through significant change. Certain events promoting small size business is followed by number of programs directed to small enterprise, the field that supports and develops society’s economic life. Its worth noting that a special state structure that would be obliged to realize state policy in this filed , namely working out a financial, credit and tax policy does not exist in Georgia. We can distinguish the following issues among major directions of SME state support:
1. Formation of normative and legal basis for small enterprise support and development;
2. Finance, credit and investment support;
3. Production and innovation support. Employment creation;
4. Formation of infrastructure for small enterprise support and development;
5. Information maintenance;
6. Scientific, methodological and personnel maintenance;
7. Social security in small entrepreneurship;
8. Creation of state and social support system;
Summery
Regional Strategies and County’s Economic Development
Evgeni Baratashvili – Doctor of Economic Sciences, Georgian Technical University, Full professor;
Nodar Dzidzikashvili – Strategic Planning Expert;
Nana Nadareishvili – Doctor of Geography, Georgian Technical University, Associated Professor
Jandiri Zarandia – Doctor of Economics, Sokhumi University, Associated professor
Kakhaber Tsimintia – Doctor of Economics, Sokhumi University, Associated professor
Tinatin Abralava – Georgian Technical University, MA.
Strategy is a tool to reach real goals the value of which lies in its practical character. It has a real influence on competitiveness level. Competitiveness itself is a critical factor (indicator) usually defined by population’s standard of living.
Regions, including regional administration and local business, play an important role in developing our country. Maintaining competitiveness is only possible by well determined and purposeful activities that support the rise of regional business competitiveness by creating attractive conditions for its development. Accordingly competitiveness of a region is defined by development strategy not by resources. Key to Georgia’s prosperity lies in preparing social and economic development strategies for regions. On the basis of the world and post soviet experience , its is advisable to distinguish four types of regional strategies formed according to the following chronological order:
· Strategies directed to developing production forces and arrangement;
· strategies oriented to attracting additional financial sources;
· Strategies directed to territorial arrangement/ space arrangement;
· Strategies directed to changing economic structure;
Working out social and economic strategy of a country is a multi plan and multi level task. It can not be solved without state authority’s assistance. Administrative reform, foreign agreements, and corresponding reforms in the sphere of economy should become integral part of the work. In addition, its global character should not become the reason of postponing the working out of a strategy. The process is quite a specific, technological and manageable task for those who understand its notion and the necessity of decision.
Summery
Territorial Development Management
Nato Chikviladze, Maia Danelia, Teona Bagrationi
Term ‘Development’ is often applied with the following matching: economic development, social and economic development, country’s economic development, regional development, city development. In all cases development implies any progressive change, especially in economics. Quantitative change points to economic growth, while qualitative change is related to structural changes either development: either changes in development or acquiring new characteristics by economic system.
Productive concept of region’s economic development problems affective analyses are major and assisting concepts. We can distinguish principal production in any region, the product that is taken from the region and assisting production that is basically used within the given region. For example: a car plant (as a main manufacturing), its serving infrastructure – post office, nursery schools, schools, clinics, banks, insurance institutions, transportation services, building and construction, as its auxiliaries. The growth of prior industry usually leads to the growth of its assisting infrastructures. As a result, so called multiplication affect is made: principal industry may be viewed as a kind of promoter of economic growth.
As a conclusion, while rapid change of major industries development level of whole city infrastructure becomes a major factor of stable economic development. It leads us to take a different view at so called auxiliary (assisting) industries’ roles, to estimate them as prior factors for economic development.
Summery
Using Georgia’s Forest lands – Economic Analysis
Mikheil Chikovani
The article deals with the ecological and economic bases of exploiting forest soils. According to the author it is based on timber application methods and principles. Analysis of timber use of forest is provided as well as advantages and disadvantages of selection cutting. The author notes, that although selection cutting totally meets forestry requirements, still it is unacceptable from the industrial point of view. It is not well argued and proved economically. Due to marked trees’ arrangement in forests it is impossible to build intensive road network.
The author emphasizes that low level of industrial production in a forest becomes the basis of excessive industry. Annual indicator of wood production for the period of 1960 – up to date is provided in the article. Corresponding conclusions are made according to the above mentioned indicators: the sharp decrease of the timber production is caused by violation of equal application principle that, in its way, is the basis of economic and ecological instability. Calculation of expenses for protection of nature is also provided in the article. The author suggests ways of improving situation caused as a result of violating environment balance. According to him, the prior task to improve modern situation in forests is to have right cutting management and to give reconstruction areas to a private property, as well as to begin using forests with resort and tourist purposes.
Summery
Tourism and Climate
L. Kartvelishvili, L. Kochlamazashvili
Tourism is one of the major economic and social events of the current century. Development of the sector is characterized by constant geographic spreading and diversity of tourism. Climate and weather make direct as well as indirect affects on tourism. Changes in climate conditions influence tourists’ flow and causes season changes in tourism. Information on climate and forecasting extreme climate events has been worked out by us at national climate service. Taking these data into consideration is necessary while determining normative and standards of tourist objects construction.
Summery
Economic systems and application of comparative analysis (comparative studies) in their researches
M. Danelia, Georgian Technical University, Pedagogue;
L. Bulia, Georgian Technical University, PhD;
T. Abralava, Georgian Technical University, MA
There are no publications or textbooks on problems of comparative studies in Georgia. Therefore for the majority of economists this discipline, its methods and theory remains less familiar. Moreover, methodological problems of economic systems and their typology, theories and approaches to comparison of theses systems – circle of issues is being less discussed by the specialists of this field. Conceptual analysis is rarely met at scientific researches. The present article deals with significant issues of economic system theories and its typology as well as application of comparative analysis while researching them. Economic systems theory is formatted within post industrialism. Major characteristics and of economic systems are given. There are different conceptions of comparative analyses (Ð. Ðèíåðò, Í. Ñìåëñåð, Ì. Çåëüäè÷, Ï. Ãðåãîðè, Ð. Ñòþàðò, Î. Àíàëüèí, Å. Ãàéäàð, À. Áóçãàëèí, À. Êîëãàíîâ).
Summery
Economic and Political Dimensions of Globalization: Theoretical Aspects
Emir Eteria, Doctor of Economics, Sokhumi University Associated Professor
Among great variety of globalization process at the modern stage of the world economy development, the major is economic globalization. It may be defined as a united global economic system formation on the basis of open economy and market form of economic functioning. The difference between the globalization of pre-World War I period and of modern times is worth noting (According to American scientist Williamson 1820-1914 is the first era of globalization). It refers to international trade, development of range of foreign economic relations. The major characteristics of the world economy from 90’s of XX century became the advantageous significance of geo-economics compared to Geopolitics and Geo-strategy. Economic-political factor within the world development process is the main determinant of globalization. It conditions a systemic character of modern globalization process and determines its further development trends. Development of economic relations is the basis of political interrelationships growth and political factor, caused by domestic and foreign political goals of certain state, influences the growth of economic interrelationships. Therefore, the major characteristic of globalization is the rise of economic and political interrelationships. The basis of interrelationships’ growth is the development of foreign economic relations: international trade and international circulation of capital. The rise of development level will increase interrelationships between developed and developing states. It will make positive affects on relatively poor countries. Growth of economic and political interrelationships changes the world’s economic functioning and little by little it becomes a united global economic system. Free movement of financial resources among countries within globalization creates a real threat of weakening political authority. First of all it refers to developing states and countries with transitional economy. Economic and political factor of globalization is related to changes in international relations and to the correlation transformation among the worlds leading participants. It is quite often associated to the decrease of national state role.
Globalization and liberalization are the two sides of one process. Resistance between them implies the internal resistance of this process where the interests of different economic, political and social forces, industrial and financial groups, fields and countries oppose each other.
The correlation of the two extremely different directions of freeing economic policy (liberalism and protectionism) depends on countries national economy goals and prior direction of the world’s economic development.