Challenges of Regional Social and Economic Development on modern stage

Maia Danelia

Comparative analyses of regions, as economic agent and subject of specific interaction, leads us to a conclusion that nowadays, in modern era regions of a country are able to implement independent economic policy, use number of economic tools to strengthen their competitive positions, to enter the world market as the world’s competitive processes participant.

Regional and structural policy aims to provide additional effect for mobilizing structural factors of economic growth as part of a territory.
It is noteworthy that specialization of Georgia’s regions as the result of state policy have been formed historically, not on the market basis.
Specialization of regions and structural changes in industry are shown in number of works on the basis of the following analyses: each field of regions, region specialization, transformational period of their dynamics;
Role of structural transformation in regional economics as a possible tool of regional social and economic development harmonization, challenges of their economic transformations were maintained on the basis of conservative structural changes in post SSR national economy. The above mentioned hindered production reforming process. It still continues to cause regress in the structure of production that leads to the following results: people feel unconfident regarding positive changes; less understanding and more criminalization; technological degradation of enterprises, equipment out of date, lack of turnover sources, insolvency, worsening field and regional economic structures, high level of monopolization, changing export and import for the worse etc.,
In spite of witnessing positive changes to some extent, potential of progressive changes still remains low.