Prior Directions of the Investment Policy in Georgia

Lamara Qoqiauri, Professor

Prior Directions of the Investment Policy in Georgia

Lamara Qoqiauri, Professor
Important appropriateness of development of modern economy is its cycled character. New possibilities are formed during every structural crisis of the world economy. Capital of countries, which have been leaders during last cycle, is being devaluated and qualifications of labor forces in the fields using old technologies are being ruined, while those ones of innovational potential, appear in the center of capital attraction.
It is important to increase innovational-investment activities and involving new technological directions and basic technologies at trajectory of firm development of the economy. It is also very important to develop such basic directions of scientific innovations, which give rise and do not estimate existed directions of the economical development. As it is known, wave of basic scientific innovations gives rise to the activation of so-called innovational multiplier, which is related with investments by increased requests.
A process of forming new directions of innovational activities and also priorities of innovational policy consists of three stages.
Main goals of the first stage are: Further productions of technical base of the field, production of which is already highly required at the marker. Innovations are basically oriented towards modernization of those enterprises, which use technologies economizing resources and improve consuming features of the production.
At the second stage they form enterprises, which provide realization of the sources of the newest technologies. Entering of own and foreign science-consuming production into the markets also takes place. Activity of the state at this stage is directed towards creation and fulfillment of mechanisms needed for attracting private investments; using and protection of objects of intellectual property; also formation an supporting of the infrastructure necessary for investment development.
Decision of the following basic problems is the most important at the third stage: state support of innovational infrastructures, making basement to the switching of the requests to the native innovations, informational support of the industrial enterprises, improvement of relations between science and industry.
For fulfillment of every needed activity, it is important to provide following practical actions:
– Informational provision must be radically improved;
– Reconstruction of the part of scientific-research and projecting institutions with the financial-economical, marketing and commercial structures developed into engineering firms;
– Creation of a system of venture investments (not budgetary financing of highly risky projects);
– Development of a system of nongovernmental and private provision of innovational risks. Foundation of insurance companies within the bounds of finance-industrial groups.
– Using modern methods of predicting of engineering and marketing of science-consuming production;
– Development of small innovational business of advantage conditions for creation and functioning of small enterprises;
– Formation of appropriate logistic basis, which regulates relations in the field of intellectual property;
– Preparing of typical state contracts for balancing legislative interests of the participants of this process from the point of using results of scientific-technical activities.

Summery
Statistical Analyses of Factors Affecting Populations Health
Nino Abesadze, Rusudan Kinkladze, Ketevan Chitaladze
Health condition of Mothers and children still remains to be an important problem in Georgia – inflectional, heart and blood vessels as well oncology diseases, traumatism and depending on pills. Demographic behavior, way of living and attitude towards own health condition of population requires particular attention. Estimating factors affecting people’s health clarified the fact that social environment plays an important role. The way of living is conditioned by living conditions, although using the above mentioned terms as synonyms is wrong. Health protection strategy should be directed to providing financial and geographic availability of minimal necessary medical service, healthy and safe environment. All the above mentioned requires the implementation of the following programs: early diagnostics of diseases, ambulatory and emergency stationary service, providing necessary medicine. Analysis of statistical data has clearly shown the necessity and priority of strategic directions defined by Georgia’s national health protection policy. The factors affecting population’s health conditions have been shown: improving health conditions of mothers and children, decreasing mortality caused by diseases of heart and blood vessels, improving the treatment of oncology diseases, decreasing number of infective and dangerous diseases etc.

Summery
Peculiarities of Time Management and Self- management elationships
Khatuna Bebnadze, Candidate of Economic Sciences, Associated professor
Every person, especially those who get ready for the career of a manager or who is a manager already, should be able to manage problems and difficult situations in their own way. By means of managing own activities, planning private time affectively, organizing labor in a scientific way and number of other approbated methods, it is possible to find a way out of even the most difficult situation. Planning, managing and controlling own activities, private time and generally way of living is not a full list of self-management task. Self-management is the purposeful and consistent implementation of working methods in every day life. Quite often a person loses lots of time on unimportant things. If you carefully follow and observe what you do during the whole day and try to get rid of doing things that simply lose your time, you’ll be able to use every hour of your working day far more affectively.

Summery
Company’s value management and Financing Strategy
Khatuna Barbakadze, Irine Mamaladze
Capital value directed to long term economic growth is a vital component for succeeding in any type of business at modern stage of management. Therefore issues related to working out and implementing financing strategy require company’s managers special attention. Managers are well aware on the necessity of decreasing operational expenses, being the only way of protecting a company and keeping growth. Analyzing financing strategies implies the existence of a purpose, objective. Two fundamental principles are the basics of corporate management conception: the first – company’s financial management aims to maximize market value; the second – company’s value is defined by monetary flows.
We can distinguish two segments of decision making in relation to company financing: the first – distribution of profit (dividend policy) and the second – formation of capital structure. These decisions define a company’s strategy and as a rule is the competence of top management.
Financing strategy should consider the following: the first – financial goals of a company, second – requirements of financial resources; third – dividend policy and fourth – certain position.

Summary
Globalization and International Competitiveness: Theoretical and Methodological Aspects
Emir Eteria
Globalization process directly affects certain countries’ economic competitiveness level. Competitiveness of each state within global economy greatly depends on integration level of national economy into global economic space. It covers certain opportunities of raising competitiveness as well as a danger of losing competitive skills in certain fields. Globalization and increasing the competitiveness level of certain states’ economies are closely interrelated processes that reflect relationships among individuals, companies, fields and country interests. Major factor of national economies’ competitive advantage within globalization is the development level of an individual and generally the society. Concept of comparative advantages is substituted by competitive advantages in the modern world, although they are closely related to each other. At the same time state economic policy plays significant role in the process of getting and keeping competitive advantage. Impact of state’s foreign economic policy on economy’s competitiveness level is particularly important in this respect. Raising the competitiveness level of a country is closely connected to open economy and foreign direction of production. Country’s economic structure and correlation of fields of economy gain utmost importance while forming global economy. Stable development of national economy depends on forming post industrial economy that on its part is based on developing scientific fields. Development level of technologies and science greatly defines competitiveness of national economy. In addition internalization of technologies and science – development of scientific and technological cooperation among countries- is also very important. We mean cooperation among individuals, societies and nations in the above mentioned field that takes place among the countries of postindustrial, developed economies.

Summery
Management of finances and intracompany market of capital
Aleksandre Tsertsvadze
Directing on the increase of capital value by owners of enterprises is considered to be an outer aim related to quantity and purpose. In this case estimating methods quite often shift in front. They are based on the system of counting points, accordingly finding an adequate system is an important problem. Discounting method of monetary flows does not allow us to estimate intracompany projects objectively. Due to management system of finances as well as capital market, distributing resources remains to be a problem. Finances’ management system and intracompany market should be well combined. We have to define which information should we combine to forma data for estimating projects in an enterprise. The major issues regarding the above mentioned situation are perspectives that a company should target. Intracompany and outward direction of the company may define certain differences.

Summery
Corporate Management and Expenses on Financial Problems
Aleksandre Tsertsvadze, Tbilisi State University, Associated Professor
Probability of modern corporate management financial problems is insignificant in case of moderate debt level. Although from certain level while additional loans probability of financial problems begins to increase quickly. Expenses on financial difficulties greatly reduce value of a company. Theoretically optimal margin is reached when the cost on taxes is compensated by means of loans. Corporate management expenses on financial challenges depend on the size of loss and probability of going bankrupt that companies undergo. Special conditions have own expenses that are mainly related to investment and industrial decisions. Restrictions of creditors limit the range of seeking investment opportunities by means of positive net incomes and may lead to the hamper of strategic development major directions. Besides, creditors increase additional expenses related to the management of implementing special conditions and compensate them by means of higher interest rates. As a result, shareholders raise expenses of such control and it is negatively reflected on the company’s market value. The best way of cutting expenses on special conditions is to limit loans to certain extent, when the company’s loan may be considered reliable.
Abstract
Aspects of Applying logical-probibility models while assessing credit risks by commercial banks
Tamar Gamsakhurdia, Doctor of Economic Sciences
Tea Munjishvili, Academic Doctor of Economic Sciences
Considering the risks, typical logic-probability model for financial stability assessment and program model of financial situation assessment and prognosis simulation will be elaborated; application of the mentioned will certainly be reasonable for the both parties of the bank system: person conducting supervision (the National Bank) and commercial banks.
During implementation of supervisory policy the National Bank of Georgia focuses the adequacy of risks management within commercial banks. Namely the method basing at mathematical method of logic-probability simulation of risks management enables with effective monitoring and controlling, adequate assessment, application timely identification and risks reasonable management. In compliance with requirements by the National Bank and in the basis of methods elaborated by us commercial banks will be able to assess risks management on quarterly basis and to submit report concerning risk’s profile with the financial reports to the National Bank.
Intentional management of risks on commercial banks level aims at improvement of assets value, receive the information on probable damage of the bank, on the basis of availability of the information to improve the methods and processes of systemic decision making, apply more accurate base for bank assessment, assess risks characterising the complex instruments and business activity as well as to establish the risks management infrastructure that support development of health competition throughout the country.

Summery
Regional tourism in Georgia – pre history and development strategic directions
Marina Metreveli, Doctor of Economic Sciences, Professor, Member of the World Tourism Association University Teaching, True member of international academy of tourism
Religious factor made a great contribution in developing traveling and later tourism over centuries. Lots of people go to faith-based cruising, ancient and modern cultural sites. Religious tourism is a part of modern tourism industry. These types of trips are quite popular recently and they are quite widely spread. It is a constantly growing segment of international tourism market. Rich cultural and historical heritage is the basic of Georgia’s religious and pilgrimage tours. We hope that great number of religious places and buildings, rich historical background and their significance will support Georgia not only to find its place on Christian, orthodox tourism market but also to assist people to strengthen their faith and improve their living conditions at the same time. All the above mentioned requires the implementation of right policy (working out and managing a long term strategy for developing religious tourism), relevant publicity and promotion of the issue. Religious tourism development strategy in Georgia first of all implies so called promotion of the country’s orthodox monuments on the world’s tourist market; formation of new motivations for tourism, new demands by means of supplying new products (religious tourist products). It’s also important to revive and reestablish traditional religious holidays as well as national handicraft, especially production of souvenirs on religious topics. The above mentioned strategy should be worked out and implemented by patriarchate of Georgia together with the State Department of Tourism and Resorts.

Summery
Application Values and Perspectives of Decision Making Theory
Zaliko Gogia
One of the major tasks of new Georgia is to form a social market. We should fully use our historical heritage. Georgian conservatism or neo conservatism owns great potential opportunities in this respect. It is supported by the most distinguished public persons during the latest century: Ilia chavchavadze and Ivane Javakhishvili. The latter has established Tbilisi State University with a defined goal: Georgian intellectuals to pave the way for nation and for country. Mathematics will assist us to show full objective picture of each directions of national economy. It will firmly confirm the rightness of a decision and will forecast results by means of applying mathematical methods.

Resume
Challenges of Small and Medium Enterprise in Georgia
Tsiala Lomaia, Doctor of Economics, Professor
Nato Nozadze, MA
The development of a small and medium business in innovation and industrial field depends upon the formation of a profitable economical and justice environment. Just small and medium business has become that very mechanism which promoted in Georgia in a difficult economical crisis situation the creation of working places, the occupation of people and their participation in economical reforms.We offer the industry the development and widening of two elements of small business franchising and business incubators.

Summery
Interrelation and Interconnection of State and Economy
Sophio Nemsadze
Combination of social and economic functions of a state and business leads to the objective necessity of their active interrelation. There is no country in the world that does not regulate these types of relationships. The necessity of state’s and business’s cooperation grows together with the development of society and economy. State, as a bearer of the whole society’s interests, can not maintain a normal social and economic development of a society if it does not rely on an important bearer and organizer of resources – business in corresponding coordination way. The main idea of economy’s and government structures’ relationship is to coordinate political and economic actions, type of integration based on parties’ economic interests. It is necessary for effective implementation of specific functions of each of the parties, for reaching their strategic goals and solving their tactical tasks. Consequently the whole country’s social and economic development stability is maintained. Market and constructive dialogue between state and business may become an affective means of involving social economic resources in implementing private objectives. While realizing own goals an individual entrepreneur executes number of social functions, even not depending on his/her won wills, and these functions more or less comply with a state’s functions. Taking the above mentioned into consideration, certain part of business potential works not only on private interests, but on whole society’s interests as well. Relationships among state and business structures create a system of social relations that organizes within own specific interests optimal application of economic resources.

Summery
On customs informative service issues
Rusudan Seturidze, Tbilisi State University, Assistant-Professor
The article deals with the necessity of developing outsourcing service in relation to customs department. Number of outsourcing companies in developed countries show the importance of this service. They serve clients and assist them while preparing customs department documentation, cargo transportation issues etc. Customs information and technological outsourcing aims to formalize customs’ department documentation, transporting different types of commodities from various regions of Georgia, checking necessary papers, organizing the handing of documentation, organizing the process of keeping cargo at customs terminal, presenting and protecting client’s interests at customs structures according to law.
Information and technological outsourcing of customs department is maintained through web site. Logical –probability model is applied in order to define corruption level at customs department. It enables to analyze and forecast corruption risk at customs department.. it is important for a state as well as for outsourcing company. If corruption level at customs department is low then outsourcing service is actual and significant.

Summary
Coordination of Fiscal and Monetary Policies: Idea, essentiality, directions (Conceptual approach)
besik bolkvaZe
In order to provide effective regulation of macro-economic processes – characteristic to transitory economics, it is essential that the role and significance of coordination between fiscal and monetary policies be raised. Neither budgetary nor monetary-credit mechanism separately is capable of solving major macro economic problems for sustainable functioning of economics. Consequently, the mentioned above stipulates the significance and actuality of the coordination and the need to meeting the requirements of transitory economics.
Influence of budgetary-credit and monetary systems, optimum correlation of fiscal and monetary policies in times of transition to the market economy may seem to be a type of pragmatic, organizational problem. However, this is the most complicated fundamental issue, which affects the formation of right strategy of the country’s economic development a great deal and the provision of objective and supportive conditions for effective functioning of the economics.

Summery
Problems related to the development of tourism and agriculture
Shota Kizilashvili, Konstantine Kizilashvili
Tourism is a prior field of national economy in Georgia and it is developing as far as possible. It’s possible to host about five or six million tourists per year in case of using full potential. Opportunities for developing tourism in Georgia are maximally used, except for the one – providing food to population and to tourists. Supplying them with ecologically clean locally produced agricultural products. Currently they are supplied with imported food. It’s obvious that this will hamper the development of tourism in Georgia. Consequently development of agricultural sector in Georgia requires well analyzed and new approach in order to solve the problem related to supplying population and tourists with the country’s own resources. Therefore, article deals with the current situation and development perspectives of Georgia’s agricultural sector. Further sustainable development of Georgia’s agricultural sector requires the following: high level of using land resources, establishing close cooperation between people living in mountains and lowlands, wide specialization of agriculture, developed watering, developing agricultural production, creating high technical and material basis of agriculture, applying scientific researches in this sector, improving and correcting errors while forming market values, restoring Georgian national traditional agriculture. All the above mentioned will solve the problem of supplying Georgia’s population and tourists with own resources.