FROM THE EDITOR
Jemal Inaishvili
World economy faces rising inflation. According to the World Bank data since 1990 to date prices on fuel has increased from USD20 to USD 130 – six times.
The same applies to food and metal products. Construction and transport prices have increased in the world and at the same time consumption of all these products has also increased. Classical scheme is being destroyed – price, supply and consumption at the same time. Economic theory is also changed and its time to implement significant international changes. It’s really important to work out a program that will decrease fuel price growth influence level on inflation rate. it can be low taxes or some other way. It is of utmost importance to start discussing it today. You can find materials on current situation on international economics in this edition (pg.8) and Georgia’s problems related to all this (pg.16).
Construction business market volume has long exceeded USD 4.5 billion and it’s annual growth indicator reaches 30%. Two international building exhibitions were arranged in Tbilisi in May. It is a significant sign as these types of exhibitions has become a tradition recently, emphasizing Georgia’s market significance for building industry. Old soviet machinery parks have changed. Today Tbilisi is constructed by Shwing and Dewalt mechanisms, Mercedes and Ford technique and it has become a rule. Construction and building technologies have also changed and latest western successful tools have been introduced on Georgian market. This year exhibition was important due to other reasons as well: number of important Georgian enterprises participated in this event. they attended not as clients, but as participants. ‘Interplast’ could be use as a perfect example while talking about Georgia’s residents’ success (pg.21).
Discussing stock exchange problems has gained permanent character. Moreover, this sector is the most problematic and at the same time useful for developing Georgia’s investment sphere as well as for introducing new institution of property, for optimizing joint stock company. All this is a basis of not only successful business but also successful pension reform. Pension insurance funds that will definitely be created, requires more complex and massive stock and monetary market. It will be possible to save deposits there, keep and grow in real value to receive pensions. Therefore, the prior task is to develop stock exchange market. Therefore we welcome ongoing reforms in this sphere. We would like to go back to securities market problems in Georgia and we offer exclusive materials provided by our journalist in relation to recent changes (pg.11).
You can find an interesting material by a third year student of Tbilisi State University on Robert Lucas as part of students’ discussion club. Ideas and monetary policy of this person is quite interesting and useful nowadays. We thought our banks could pass through international banking liquidity crisis but problems related to issuing business credits are obvious. Therefore implementing optimal monetary policy to develop Georgia’s macro economic situation is of utmost importance nowadays. It would be a good idea to overview several aspects of this immortal monetary policy. We traditionally offer you discussion on scientific problems and internal as well as international market data statistics.
I hope you will find us difficult, hard but useful for you and for your business.