The day of economics, economy and economists

Sophico Sichinava

In accordance with the tradition, the day of economics is celebrated on the second Friday of September. The initiator of this tradition was Vladimir Papava. This day is connected with the issue of journal “Economist”.

In spite of the tragedy in America, the current minister of economics celebrated this date again in a rather difficult situation when Georgia is expecting an economic shock and when economists’ opinions and economists themselves are not appreciated. Where are economists and what is going on in economy? Mr. Gela Khanishvili speaks on this matter.
I congratulate all Georgia on this day, but, unfortunately, this day had no effect on economists and the whole society. The people who taught us economic theories on which they grew up, fell into contradiction with these very theories and saw them in reality.
I would like to congratulate these very people and tell them that their work was not vain because it is due to them that anybody now has a wish to become an economist. A great part of economists were not prepared for this shock in society. Yet, their duty did not only consist in bringing up the future generation. Their professionalism depended on the way economy would develop. It was their duty to be at the head of the country or, at least, they could achieve their own well being. Unfortunately, it was not so. The future generation was in no better position. They learned other theories, but they had to use other ones in practice. They found themselves in the boundary between the future and the past. First of all, we would like to congratulate these young economists, who learn economic models not only from authors and manuals, but they learn them in practice. They are familiar with computer as well as with internet. They do not have problems with books, they can become readers of any library without leaving their room.
We congratulate the press and your journal on the day of economics. It is very difficult to issue a journal in these hard economic conditions when the society is so nihilistic and when no one wishes to know the truth. Moreover, this journal has nothing to do with emotions and describes the possible ways of the country’s development.
I think that on this day free economists should do much for liberal press. I look at the future of my country and the role of economists in its development with optimism. Looking at the President and his chancellery, you find out that the country that passed so many construction processes lacks economists who, at least, are aware of the economic criteria not to mention thier professionalism.
– The tragedy in America shocked the population. Financial markets were seized with panic. Do you think that these events will have an effect on our country?
I think that it will. I think that cataclysms in Europe will reach Georgia sooner or later. However, our role in the world economy is not significant, so these effects will hardly be significant ones. It is certainly a regrettable fact that we do not have any stock exchange in our country and that no one has any notion of shares. Communication means served to limit the world. The direct influence is certainly impossible, but indirectly, each positive or negative event that threatens the dollar will certainly affect Georgia, too. Lari does not play a definite role; otherwise we would not have had such an exchange rate for so long a time.
I would also like to mention another point ? people’s aspiration towards the idea of creating paradise. It turned out that stability and safety is conditional. So, even Pentagon cannot give any guarantees. The life of thousands of people was unsecured. The transnational companies in the trade centre were ruined. A serious intellectual group of people working there disappeared.
– To the experts’ mind, the further development of events will possibly slow down the economy of Georgia.
– I think no other factor will affect our country more than different decisions of our
Authorities. I cannot say whether these events will reach Georgia or not. It depends on the policy the country will choose. We are provided aid from the United States. To my surprise and joy, on 14 September we received a confirmation letter about the delivery of 35 thousand tons of humanitarian wheat. And this tragedy happened on September 11. I mean that in spite of the fact that America is in a state of martial law, the country is not in panic. The agricultural branch fulfills its duties as well as other branches.
– The parameters of the Y2002 budget are much debated. Are you aware of them, what is your comment?
– I did not review the budget, but I have some idea of it from the figures indicated in the press. Do you know what I think of it? The country did not realize the deepness of problems connected with the implementation or non-implementation of the budget. I cannot understand one thing ? in compliance with the constitution date, the Government must submit budget before October 1. It is certainly in the process of implementation and dispute about its parameters is going on. this very Government must receive 300 million sequester at the same time before October 9. I cannot understand the position of the Government. On the one hand, it sees difficulties and performs 300 million worth sequester and, on the other hand, it wants the quantity of water to increase in the next year budget and intends to perform sequester next year. It is a paradox. If you review the history of sequesters, you will see that sequesters of these scale have not yet been implemented. Perhaps, you remember Nogaideli’ statement ? it will be a last sequester! – which unfortunately was not implemented.