Agricultural specialization of regions as basis for the increase of their economic potential (ABSTRACT)

Prof. Eugene Baratashvili, Gocha Kekelia

Georgia is a historically traditional agricultural country. In belongs to agrarian-industrial countries in the development level of industrial forces.

As far as regional aspect is concerned, Georgia’s agrarian climate is favourable for the development of citrus, tea, viticulture, fruit, tobacco and other industries. Based on the intensive development of the mentioned industries, it is possible to promote the growth of tea, viticulture, canned vegetables, tobacco and ethereal oil production.
We think it purposeful to establish requirements for nomenclature of products produced by agrarian-industrial complex of Georgia, which will make it possible to meet population’s demand for foodstuffs and industry’s demands for raw materials that are supplied by agrarian-industrial complex.
Scientific research and our analyses reveal the fact that specialization of agricultural production is a real trunk-road for the development of agrarian-industrial complex and regions. It contributes to the increase of their industrial-economic potential. Promotion of the functioning of agrarian-industrial complex and food industry should be considered as a principal direction for the development of most regions of Georgia. With this purpose redistribution of resources should not be performed in accordance with branches, but rather in accordance with more detailed signs (namely, enterprise, kind of production, investment project).
It is necessary to conduct active industrial policy by taking into account the real economic and financial condition of industrial enterprises. It is also necessary to determine individualized tactics and strategies with regards to each budget-forming industrial enterprise.
One of principal directions on the way of regional market reforms is formation of competitive financial-industrial companies. The purpose of such companies should consist in the structural transformation of industry and realization of new mechanisms of investment activity. We think it would be more perspective for financial-industrial groups to make use of trust and holding relations.
Based on the above-mentioned, we think it necessary to transform economic estimation methodology of regions’ functioning by taking into account the formation of optimal production structure, the achieved level of regions’ specialization and influence level of factual positive effect on the growth of region’ economic potential.