TO THE EFFECTIVE ECONOMY – BY THE WAY OF EVOLUTION

Guram Akhvlediani

We’re living in post-soviet reality, so the appeal to business and businesspersons remains the same therefore. Unfortunately, both the society and the government share that opinion. Business layer became a key figure of all disputes and allegations.

As soon as government faces the problem, with the help of mass media, it sets about for blaming all upon business and its presenters. Especially works the thesis that successful business and higher incomes are only available with embezzling the population’s money.
It’s a principally wrong affirmation that causes the negative reaction of all layers of society to business and businesspersons. This could be true to corrupted government officials rather, those skin their illegal acts to call population’s attention to others, including business.
Occurs the question asking of why and who had brought us to the state that successful business is unachievable. I’m not sure that if entrepreneur pays all the bills and taxes required, it won’t profit. Many of today’s businesses in Georgia are absolutely transparent and profitable at the same time. However, changes are most important and desirable at the moment.
Legislation should be changed in favour of business development; taxes lowered, decreased in number and presented with fixed rates. It will increase taxable basis without fail. Executive branch, especially governing stuff has to be cut down. Moreover, entire controlling system needs to be transformed into different one; for example, in combat against corruption, prior should be the prophylactics, instead of acting post-factum. Scaring businesspersons with enumeration of their property – a house, vehicles, residences and others, is the product of only populism. That’s not a panacea, as you may hide incomes with purchasing not above mentioned, but that of more stable and hidden ones like gold, diamonds, stocks etc.
This kind of appeal will carry our corruptive millionaires underground and won’t eliminate main – corruption itself. Finally, we’ll bring our businessmen to the condition that they will invest not in Georgia, but in Turkey, Russia or anywhere else. This kind of propagandizing campaigns can’t hurt corruption much.
Another difficult question is smuggling. A repressive method against contraband has to be strengthened instead of facilitating, presented with expropriation of smuggled merchandise, putting the penalties upon smugglers and closing all the paths for illegal import. This will be the battle against reason and not result – right what we need. Comparing to neighbor countries, Georgia can not be the interest of smuggling, in other words it means that taxes, duties and excises has to be less then burdens in competitive neighbors. If so, then contraband has no commercial basis.
All these and other related problems are scrutinized in Georgian and local Trade Chambers, which are the perfect unification and the closest to the business. Chambers serve to the interests of business development and with that end in view, negotiate with government. Trade Chambers are delegated to serve for business in informational service, including translations, marketing research, project and business plan draw up, expertise, exhibition, conferences, symposiums etc.
Chamber provides the lobby only in favour of business and its development. it doesn’t protect all fields of business and certain financial groups. It’s aimed at building favourable economic and investment environment for business, which will eventually develop relations between society and business.
Serious businessperson is always interested in population’s wellness. I remember, communists, to prove the inefficiency of capitalism, were presenting the statement by A. Sensimone: “Capitalist is delighted, if it’s raining cats and dogs and hail breaks the window-glass, as he’ll sell more glass next day?” – the opinion of real utopist philosopher. Yes, it will sell if population has the payment ability, which is the both, basis and aim of each business. In this case, interests of population and business accord with each other.
We’re now living in inhuman conditions. But, if remember the period 6-9 years ago, when people were afraid of even going out in the street, current conditions are more acceptable. According to latest figures, minimal income comprises 100 GEL per head, and average – 250 GEL, which is five times less then five years ago.
Despite the fact that hardest period is already overtaken, deep economic crisis still hurts the country much. Let’s look around and see that: all of the restaurants in us full of customers each day; 12 super-elite stores of “Voules Vous” and “ICI PARIS” work with great success; Market is loaded with national product; We even manage conspicuous overproduction of some goods; Our city is full of expensive auto-vehicles and many more?
Is there an economic crisis in country?
As soon as energetic crisis is overtaken, country will make a huge economic step up and it will be caused by only potential of internal evolution of business.