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Journal number 2 ∘ Merab KakuliaNodar Kapanadze

Impact of Anti-Pandemic Restrictions on Economic Growth: Visible and Invisible Loss

The article is an attempt to estimate the economic loss caused by the restrictions introduced in 2020 against the Covid-19 pandemic.  The article discusses preliminary estimates of economic growth in European countries in 2020. Four of the top five European economies severely affected by the Covid-19 crisis are the flagships of the global tourism industry (Spain, Italy, Greece and France). Against this background, the question of whether it is appropriate for the government to choose the development of tourism as the main strategic priority is gaining more legitimacy.The originality of the approach used in the article for estimating economic losses is reflected in the assessment of visible and invisible losses.  Real GDP in 2020 decreased by 6.2 percent compared to 2019, amounting to GEL 2.482 billion in 2015 in monetary terms. In other equal conditions, based on trend of 2017-2019, GDP in 2020 calculated at 2015 prices, could have increase by 4.4 percent compared to
2021-07-21
Journal number 2 ∘ Paata KoguashviliDavid Mamukelashvili

Economic Mechanism of Entrepreneurial Development of the Population in the Regions of Georgia

Based on the experience of both Georgian and different countries in coordinating and supporting financial mechanisms for the development of the cooperative sector, it is possible to clearly define the main: the task cannot be solved empirically without considering the theoretical and methodological aspects of the problems and preparing appropriate foundations which is related to the creation of conceptual foundations of organizational-economic and financial mechanisms of development, qualitative changes in the financial environment, improvement of the investment environment, capitalization of labor and material resources, and balancing the economic interests of the state and the private sector, which is most effectively possible with the active support of the development of the cooperative system of entrepreneurial activities. Inadequate assessment of the importance of transformation in cooperative relations, insufficient understanding that the development of cooperation in the
2021-07-21
Journal number 2 ∘ Lina Pilelienė

Theoretical Insights into Citizen Satisfaction: Measurement and the Model

As a branch of consumer satisfaction, theoretical aspects of citizen satisfaction are being discussed in the article. The aim of the study is to determine the factors possibly having impact on citizen satisfaction. Reviewing previous attempts of citizen satisfaction measurement, eleven factors were considered as determinants: Urbanity and diversity; Nature and recreation; Infrastructure of the city (a. Pedestrian environment; b. Street layout); Job opportunities in the city; Cost-efficiency of living; Neighborhood of the citizen; Determinants of subjective well-being perceived by the citizen; Parenting / Education possibilities; Public transport services; Necessary services; and Dwelling type of the citizen. Moreover, two levels of outcomes were identified: 1) Attachment to the city; Attitude towards the city; and Subjective well-being; leading to 2) Intention to leave (stay in) the city and Word-of-mouth. The determined factors were aggregated into a model of Citizen
2021-07-21
Journal number 2 ∘ Zura Gamtenadze

Analysis of Investment Attractiveness of the Georgian Regions

This following paper analyzes the investment environment in the regions of Georgia. The analysis outlines several variables that affect the investment attractiveness of the regions. The variables, which are categories of a specific field, are combined into relatively larger groups called micro-climates. These micro-climates are human resources, technical infrastructure, market size, economic indicators and administration. Micro-climates cover economic, demographic, political and technical areas to make the analysis as comprehensive as possible. The latter necessitated due to the various dimensions of the topic. Attracting investment is not a linear and one-time process or result; however, it requires the consideration of dozens of variables, processes and calculations. The paper firstly examined relevant scientific literature regarding predicting variables. Mostly, as the following paper demonstrated, scientists describe infrastructural component as the core one for the investment
2021-07-21
Journal number 2 ∘ Giorgi Mzhavanadze

The Effectiveness of Tobacco Control Policy in Georgia

This article emphasizes the importance of the problem associated with smoking in Georgia in both health and economic perspectives. It describes the changes in tobacco control policy, specifically, the amendments to Law of Georgia on Tobacco Control (TCL) and tax measures, implemented since 2013. The article analyzes the effectiveness of these changes using the data from Integrated Household Surveys (IHS) conducted by National Statistics Office of Georgia (GeoStat). Resulted estimates of smoking prevalence suggest that implemented tobacco control policy was successful in reducing smoking in Georgia. At the same time, heterogeneous nature of taxation of different tobacco products affects consumers’ choices by stimulating downward substitution and shifting to smoking non-filtered and RYO cigarettes, which could negatively affects the possible health benefits of recent legislative and tax policies.  Keywords:  tobacco controlpolicy, excise tax, smoking prevalence,
2021-07-21
Journal number 2 ∘ Giorgi Sanadze

The Main Directions of Overcoming Retroeconomics in Georgian Industry

The article describes some of the specifications of different types of opportunities in order to better eliminate retroeconomics in Georgia. The term “Retroeconomics” is produced through the combining of the following two words: "retro", which in Latin means "back to the past" and "economy". Consequently, this concept refers an economy based on backward technology. The relevant conditions that contribute to the strengthening of the retro-economy are quite firmly represented in the industrial sector of Georgia. The list of countries with weak economy have widely used or consuming outdated technological means in their industrial sector. Although, the use of backward technology at the initial stage can cause an illusion of development of the business environment. But when it has met international competition there is no chance to get success in this order for such kind of production. Based on all of above mentioned, the elimination of retroeconomicsis a very difficult
2021-07-21
Journal number 2 ∘ Shota VeshapidzeRamaz Otinashvili

The Role of Staff in Business Security

Georgia's gross domestic product fell by almost 6% in 2020 as a result of the Covid-19 pandemic. This poses a threat to both the public and private sectors of the economy. To overcome the challenges, it is important to increase the role of the firm's staff in ensuring business security. The selection of reliable employees has an ancient history; this problem arose when the first hired workers appeared. The resulting selection methods have undergone many changes and improvements. Until recently, the emphasis had been on the professional training of staff and was defined by such formal marks as: education, qualifications, experience, etc. In modern times, the demands on the personal qualities of the employee have increased significantly as staff employed in the business often have to deal with information that may be of interest to competing firms. Advanced companies have developed a proven, comprehensive methodology for checking eligibility for vacancies. The security service of the
2021-07-21
Journal number 2 ∘ Murman TsetskhladzeSalome Sulaberidze

Foreign Experience of Agro-Tourism Development and Some Aspects of Its Use in Georgia

The paper analyzes the foreign experience of agrotourism development and the possibilities of using it in Georgia. The significant improvement of Lanchkhuti farmers and, in general, socio-economic conditions if its inhabitants is possible by means of creative appropriation of foreign experience by making it suitable for Lanchkhuti’s potential possibilities, namely by merging new technologies of agriculture production with traditional methods, by improvement-refinement of service field, by implementing and perfecting advanced methods of production-processing-packaging-delivery. It is possible through restaurants, baking shops, groceries arranged by farmers, where natural products produced by them is used to make various dishes, where raw products and semi-fabricates are sold, for instance, milk products of the farmer and etc. The farmer should be focused on the quality of production, as well as on its quantity. For this to happen, it is necessary to determine agro
2021-07-21
Journal number 2 ∘ Levan Sabauri

Impacts of COVID-19 on the Financial Reporting and Audit

Abstract. The New Covid19 pandemic caused economic crises since the beginning of the year and created global challenges in the world. The enterprises have faced severe problems in preparing the financial reporting for 2019. The crisis seems to continue for the 2020 financial year. Serious challenge has been posed to auditors and audit companies. This paper proposes ways to solve these issues as specified by current international standards and regulations. Enterprises faced considerable challenges during unforeseen pandemics. The challenges are especially apparent in the preparation of valid financial statements. Due to the existing conditions, it is difficult to understand whether the use of the going concern of accounting in the financial statement will be adequately perceived and useful for the interested stakeholders.  The paper elaborates on the key topics that the industries should consider while preparing financial reporting, as well as auditors - while auditing
2021-07-21
Journal number 2 ∘ Ineza Vatsadze

Challenges Created by the Pandemic in Wine Tourism and Opportunities to Overcome Them in the Region of Racha

Tourism has been one of the most important sectors of our country's economy in recent years, but from the first day of the coronavirus pandemic it has serious challenges. It is therefore important to develop measures to respond to the economic threats posed by the pandemic. It is necessary to determine the factual situation which will help to develop rational recommendations. Based on a review of the special literature, the article discusses the challenges posed by the pandemic in the field of wine tourism and the measures to be taken to address them, based on the views of various experts in the field. According to the survey conducted by the author, the article discusses the state of wine tourism in the Racha region, which shows that by 2020, tourist visits to Racha have significantly decreased, compared to 2019. All respondents think that saving the wine tourism business during the pandemic is convenient by activating domestic tourism. Most of the respondents noted that their
2021-07-21
Journal number 2 ∘ Giorgi Khidesheli

Covid-19 and Challenges of the Tourism Industry in Georgia: The Outflow of Qualified Personnel

The Covid-19 pandemic has caused a global economic crisis. Restrictions imposed to stop the geographical spread of the virus have negatively affected the financial stability of tourism. Most of companies were forced to lay off workers or send them on unpaid leaves. Consequently, the process of labor force sectoral shift began. According to the Self-determination theory, people try to find stable jobs and fulfil needs of autonomy, connection and competence. Therefore, the tourism industry is no longer discussed as an attractive employer for the next few years. However, considering the tendencies of massive vaccination and the forecast of World Tourism Organization, gradual stabilization of crisis and revival of international travel are highly predictable. It must be determined how the tourism business can cope with the emerging demand in the post-pandemic period without qualified employees. Therefore, the article aims to detect not only ongoing, but also post-crisis peculiarities of
2021-07-21
Journal number 2 ∘ Murman TsartsidzeNatela Latsabidze

Stages of the Formation of Unemployment Social Insurance System and Development Perspectives in Georgia

Unemployment, as the most acute socio-economic phenomenon, is the main challenge facing Georgia. It has a significant impact on the overall process of economic development. In the conditions of modern global pandemic, problem has become more acute, which is accompanied by negative economic, social and psychological consequences. Therefore, it has a great importance for the country to develop an effective mechanism for social protection and insurance of unemployment. For the last 30 years social policy, pursued by the state in the field of unemployment protection and insurance were attempts to use different models tested in the practice of inconsistent and developed countries, however unsuccessful. In our opinion, in the work carried out of social protection and unemployment insurance there are three main stages: first stage (1991-2005) practically related  attempt to form a European model of unemployment insurance, second stage (2006-2012) - radical liberalization of labor and
2021-07-21
Journal number 2 ∘ Avtandil JorbenadzeTengiz Verulava

Social Health Insurance System in Georgia: Development Barriers

Georgia's healthcare system reform, which began in 1995, was one of the first state reforms in the country's recent history. When creating a new financing system, the choice stopped on the social insurance model. The aim of the paper is to study the reasons for the introduction of health social insurance in Georgia, in particular, why Georgia chose the model of health social insurance (Bismarck model) and not general tax financing (Beveridge) and what were the challenges associated with its development? The social security system, unlike Beveridge's general tax financing system, is more focused on introducing market mechanisms where health responsibilities are evenly and equitably distributed among the state, the employer and the employee. Despite the achievements, the introduction of health social insurance turned out to be more difficult than expected. Due to the ongoing economic crises, the state was unable to finance its promised commitments, resulting in a chronic shortage of
2021-07-21