FACTORS HINDERING THE DEVELOPMENT OF NEW ECONOMIC THINKING IN GEORGIA AND WAYS OF OVERCOMING THEM

DR. NODAR KHADURI

Georgia has lived in the conditions of post-communist transformation for 10 years. Despite many failures and successes, the country has gradually occupied its place in the world community.

We think that the most important problem that stands in the way of the economic growth is inadequacy of market economy institutions and problems in the government.
There are quite strong informal institutions in Georgia that make a strong influence on the formation of economic policy.
These informal institutions (institution of the so-called “roof”) have been formed as a result of nation’s evolutional development and as a particular form of protest in the Soviet system.
Unfortunately, the mentioned institutions continue to exist even now and they are not less strong than formal institutions if not stronger.
We think that this strength can be visible in the scale of corruption in Georgia. Corruption and corrupted transactions fulfill the function of laws and underlie the adoption of illegal resolutions.
The greatest deficit observed in Georgia is deficit of cadres. Their decision will be more important than institutions, which indicates at the institutional disorder in the country.
In order to make the economic growth process possible in the nearest future, the state should use every efforts to fulfill such important tasks as restoration of territorial integrity of the country, formation of a full-valued system for the social protection of population, formation of institutions common for market economy countries including securities market and institution of civilised lobbying, creation of tax system that would encourage tax-payers to pay taxes. Therefore, the state system should ensure worthy existence and normal labour conditions for state officials as well as decrease of corruption scales.