From The Editor I

Jemal Inaishvili

The world is facing the worst financial crisis. According to George Soros’s analysis the major challenge of leading economies is the increased prices on raw materials and resistance caused by technological irregularity.

The reason of the world’s disaster lies in Chinese people’s hard work and high level of Indian people’s development. The world stability was not under danger till economies of the developing countries remained on lower level. As son as the developing countries’ economies began to grow, consumption increased and the crisis began. According to experts, it is not an ordinary cycle, familiar to us from economic theories. It is totally new phenomenon with an old form and global inflation. Exactly, with global inflation – increase of the world prices dynamics. Maybe it is a decline of the greatest economy – the US economy. You can find the analysis of the above said views in the article: ‘American Dream has passed away’ as well as overview of the world economy. Are we prepared for new changes, is our foreign trade policy adequate to the new reality. We would like to discuss the issue together with Professor Revaz Gvelesiani. One of the major issues that we, as well as international society considerers to be of utmost importance are problems of financial sector. In fact, according to the manager of UBS Bank, due to a mortgage crisis in the US, the bank has lost USD 38 billions. It’s unbelievable, but the bank has not gone bankrupt. Is it possible that bank managers ascribe everything to mortgage crisis and get ready for getting bonus and profit? actually it is a fact that banking sector faces problems. Credit has become quite expensive in our country, its amount is decreasing. You can find an analysis of the problem in the article ‘What caused the raise of interest rates on Georgia’s banking market’ (pg.8)
We continue our discussions on the issues related to economic education and offer you special material on auditors’ professional education and service quality control standards (pg.11). International standards of accounting is one of significant themes while forming market economy and protecting and monitoring business. The process has been underway during ten years and still, number of issues remains unsolved. Therefore we still focus on it, as well as on Students’ Page. Discussion club summarizes international Chamber’s role in supporting foreign trade and its regulations. This topic is quite important for agreeing the EU neighborhood policy and creating valuable trade partnership. In fact, supporting and regulating agro sector is important in this respect. You can also find an interesting approach to currency rate problem in relation to export, such as tea export, programs on keeping agro chemicals, watering and protecting from erosion. Professor Paata Koghuashvili provides an interesting viewpoint in his article on ’state regulation of agricultural food sector and economic support’.
As a rule, the present edition includes scientific articles.