Journal number 2 ∘ Merab Lominadze ∘ Eter Kharaishvili ∘

Dialectic of Private Property

https://doi.org/10.56079/20222/1 Property is the foremost category that lies beneath the economic system and determines its historical type. At certain stages of societal development, the differentiation of property into private and public property has played a crucial role in the formation of civil society. Property is a complex category that contains three components: possession, disposal, and use. Possession means the appropriation of material property in the absence of a real right to it. This is de facto, but not de jure property. In the case of possession, the property is not subject to sale, although it is possible to transfer it by inheritance, which creates a precondition for the transformation of possession into a property. The historical process is precisely concerning the dialectic of individual and collective property and indicates that they preceded the establishment of private and public property. Private property can be considered as a special type of own pr

Journal number 2 ∘ Tamta Todadze ∘

Pricing policy in Georgia

https://doi.org/10.56079/20222/2 The main issue of the article is the impact of the recent inflation rate and price dynamics at the subsistence level in Georgia. It clarifies how the situation changed by the COVID-19 pandemic and the processes that developed as a result, how it affects the living standards of each citizen, employment and income. The paper comprehensively analyzes the main causes of inflation for Georgia as an import-dependent country, supply-side delays and sharply increased price dynamics in the international commodity market. Based on results received in the scope of research there are given conclusions and recommendations. The COVID-19 pandemic has become the biggest challenge of the 21st century not only for the healthcare system but also for the economies of each country and the world in general. Challenges in different sectors of the economy are also compounded by the significant increase in consumer price inflation global

Journal number 2 ∘ Tengiz Verulava ∘ Avtandil Jorbenadze ∘

Medical Education in Georgia: Challenges and Policy Outcomes

https://doi.org/10.56079/20222/3 As a result of the reorientation in the health sector in Georgia, the foundation was laid for a new system of medical education, built on modern principles. A medical practice requires special and specific knowledge, which is mastered by a doctor as a result of many years of study and practice. The modernization of the medical education system included the implementation of the following measures: Adoption of regulatory norms for residency programs or postgraduate training in certain medical specialties, adoption of normative acts for accreditation and licensing of medical staff and medical institutions of higher and secondary education, and, most importantly, under the auspices of the World Bank, residency programs have been jointly prepared by specialists and foreign experts from the Ministry of Health. The Attestation and Accreditation Commission of Medical Educational Institutions established by the Ministry of Health of

Journal number 2 ∘ Nugzar Paichadze ∘ Kakhaber Paichadze ∘

Unemployment Rates in Georgia Calculated According to the New Methodology of Employment Statistics and Ways to Reduce It

https://doi.org/10.56079/20222/4 Unemployment is a social-economic status in a society in which a part of the population wishing to work cannot find a job that they are able to do. The main negative economic consequence of unemployment is the non complete usage of the economic potential of the society, which results reduction of the ability to produce GDP in the country and a number of other negative economic and socio-psychological events. Since 2020 after transition to a new methodology of employment statistics, the numbers of employment-related indicators such as: labor force, Employees, the self-employed, the unemployed, the level of employment, the level of unemployment have changed significantly in Georgia. Its evident, that in view of the above, the conclusions reached in the study of a given problem in future would be different than

Journal number 2 ∘ Paata Koguashvili ∘ Lado Arabidze ∘

Modernization Opportunities for Georgian Traditional Winemaking

https://doi.org/10.56079/20222/5 Winemaking has a big part in world economy. Every year wine production and consumers are being increased. Traditional winemaking of Georgia has a small but important part in this big sector. Recent years were quite hard for world industries. Economic and Technological changes brought us new challenges and a desire for adaptation. Georgian Winemaking has a 8000-year history. During 8000 years of history winemaking and viticulture has always been part of Georgian culture, religion or social life. Because of the big connection and long history Georgian people have developed different winemaking methods like: Qvevri wines, Besides Qvevri wines Georgian people have also developed Kakhuri (Kakhetian) wines that nowadays are classified as Amber (orange) Wines. In the 1900s Georgian people also started to make semi-sweet wines that became the big part of the Georgian viticulture. As we start discu

Journal number 2 ∘ Marina Chavleishvili ∘

Georgian Pharmaceutical Market - Current Situation and New Challenges

https://doi.org/10.56079/20222/6 At the present stage, it is relevant to study, analyze and make certain assessments of the problems and challenges in the pharmaceutical market. The paper presents the development trends of the Georgian pharmaceutical market, the analysis of the main economic agents in the market, the competitive environment, the existing market barriers and restrictions, the mechanisms for regulating the pharmaceutical market. Based on the obtained results, conclusions are made and recommendations are proposed. Based on the research, three dominant companies were identified in the pharmaceutical market - "Aversi", "PSP" Ltd and JSC "Gefa", which are major market players and they have practically distributed market (total share -70%), however, they pursue a single policy of pricing and price discrimination. Mentioned companies import and distribute pharmaceutical products, have retail sales and production of med

Journal number 2 ∘ Leila Gudushauri ∘

Responsible Lending Framework in Georgia: Challenges and Solution Methods

https://doi.org/10.56079/20222/7 At the current stage, one of the pivotal challenges to the financial stability of Georgia’s economy has been the excessive debt burden of the private sector and its rapid concurrent growth. For years, granting loans without submitting the proof of income has been the main reason for this problem. Excessive indebtedness, as is known, significantly increases the borrower's solvency risks which, in turn, remarkably foster the borrower's default risk as well as the likelihood of a financial crisis entirely for the country. In response to the challenges of excessive indebtedness of private individuals, in 2019 the National Bank of Georgia launched a responsible lending framework which aims to subjugate all licensed lenders to unified credit granting rules in terms of consumer rights and credit standards. Considering the current reality, this provision was simplified and refined in 2020. The further changes are planned for 2022. The article r

Journal number 2 ∘ Besik Bauchadze ∘

Management Accounting Development in the Process of Digital Economy Formation (Case of Georgia)

https://doi.org/10.56079/20222/8 In the article there is given the assessment of digital economy in Georgia. It is established that effectiveness of managing activities of the organization depends on the information level support. There are discussed the issues of evaluation of the management accounting system functioning, development of cost accounting and budgeting methods, selection of the automated system for information and analytical support. The management accounting data allows not only to analyze the financial results of the organization activities, but also to manage costs, formulate assortment, investment, contract and pricing policies, and, consequently, directly to manage the organization work. The management accounting, which is the special system of knowledge, skills and abilities, can be described as the combination of two main subject areas: as a science and as a practical field of activity. The digital economics and management accounting are interrelated, bec

Journal number 2 ∘ Ioseb Khelashvili ∘

Investment Opportunities in Tourist Accommodation Facilities: A Case Study for Batumi

https://doi.org/10.56079/20222/9 The tourism industry has traditionally been the leading sector of the economy of the Georgian Black Sea resort of Batumi for many decades and is currently experiencing rapid growth. This trend is accompanied by an increase in investment activities and the constructions of rental accommodations. Developers are focusing on promoting their rooms and apartments, positioning them as a source of long-term rental income, while potential private (mostly non-professional) buyers are facing difficulties in making grounded investment decisions. The purpose of this study is to identify a number of key indicators that determine a reasonable return on investments in Batumi tourist facilities. After empirical research on a wide range of variables relevant to making investment decisions in this market, key representative indicators were identified and a research design were developed to explore local investment opportunities. Classifying investment proposals

Journal number 2 ∘ Günter Hofbauer ∘

Hazard Analysis of the German Car Manufacturing Industry and Related Business Eco Systems

https://doi.org/10.56079/20222/10 Hazards and risks can endanger business systems and corresponding business eco systems (BES) in an existence-threatening way. Different reasons may cause technological changes, but stake holders should have a clear road map and strategy to guide through times of change and consider carefully the consequences. It is a matter of fact, that all industries are driven by changes in technologies, business models, processes, constellations, and systems. An appropriate response is a mandatory requirement for companies to survive. Innovativeness is the basis for competitiveness, profitability and sustainability of companies and corresponding industries. The car manufacturing industry is one of the most important industries in Germany and contributes about 12 percent to German GDP. This industry is a driving force for economic growth, employm

Journal number 2 ∘ Izolda Lashkarashvili ∘

International Experience in Quality Management and Its Importance in Georgian Business Companies: Level of Customer Satisfaction

https://doi.org/10.56079/20222/11 Understanding quality and its importance is one of the biggest challenges for modern business companies. Today, when healthy competition is the key to success, the issues of maintaining a sustainable competitive advantage have become particularly important. When it comes to quality, one of the most important places is occupied by retail service units, which, if they function properly and properly, contribute to customer satisfaction, have a positive impact on them, maintain them and gain their loyalty to the enterprise. The loyal customer is the guarantor of the successful activity of any firm, both in the short and long term. Firms can create all this only with the right strategic management. Based on all the above, this article serves to assess the international experience of quality management and its importance in Georgian business companies. Based on the research question, the hypothesis is formulated as follows: Introduction of internat

Journal number 2 ∘ Joseph Archvadze ∘ Lia Kurkhuli ∘

Phenomenon of Giving a Tip: Economic and Psychological Aspects

https://doi.org/10.56079/20222/12 Despite the fact that a person is a rationally thinking being, he often shows activities that do not meet the criteria of rationalism, rational use of resources. Such irrational activities are based either on the mental structure and addictions, on the irrational motivation (the use of tobacco and drugs, usage of alcoholic beverages, etc.), or on the stereotypical model of behavior that prevails in society, which often do not fit within the framework of economy and expediency. One of these is "To give a tip". Tip is the money that a person pays additionally for the service offered him. The tradition of giving a tip comes from those countries and societies where, as usual: a) the market economy is sufficiently developed; b) the middle class is quite numerous, and its financial situation and well-being is more or less satisfactory; c) the services are massively used by representatives of average and above-avera

Economics and Business Referential and Reviewed International Scientific-Analytical Journal of Ivane Javakhishvili Tbilisi State University, Faculty of Economics and Business

ISSN 1987-5789 ESSN 2587-5426 doi 10.56079	Journal number 2 ∘ Merab Lominadze ∘ Eter Kharaishvili ∘ Dialectic of Private Property https://doi.org/10.56079/20222/1 Property is the foremost category that lies beneath the economic system and determines its historical type. At certain stages of societal development, the differentiation of property into private and public property has played a crucial role in the formation of civil society. Property is a complex category that contains three components: possession, disposal, and use. Possession means the appropriation of material property in the absence of a real right to it. This is de facto, but not de jure property. In the case of possession, the property is not subject to sale, although it is possible to transfer it by inheritance, which creates a precondition for the transformation of possession into a property. The historical process is precisely concerning the dialectic of individual and collective property and indicates that they preceded the establishment of private and public property. Private property can be considered as a special type of own pr Journal number 2 ∘ Tamta Todadze ∘ Pricing policy in Georgia https://doi.org/10.56079/20222/2 The main issue of the article is the impact of the recent inflation rate and price dynamics at the subsistence level in Georgia. It clarifies how the situation changed by the COVID-19 pandemic and the processes that developed as a result, how it affects the living standards of each citizen, employment and income. The paper comprehensively analyzes the main causes of inflation for Georgia as an import-dependent country, supply-side delays and sharply increased price dynamics in the international commodity market. Based on results received in the scope of research there are given conclusions and recommendations. The COVID-19 pandemic has become the biggest challenge of the 21st century not only for the healthcare system but also for the economies of each country and the world in general. Challenges in different sectors of the economy are also compounded by the significant increase in consumer price inflation global Journal number 2 ∘ Tengiz Verulava ∘ Avtandil Jorbenadze ∘ Medical Education in Georgia: Challenges and Policy Outcomes https://doi.org/10.56079/20222/3 As a result of the reorientation in the health sector in Georgia, the foundation was laid for a new system of medical education, built on modern principles. A medical practice requires special and specific knowledge, which is mastered by a doctor as a result of many years of study and practice. The modernization of the medical education system included the implementation of the following measures: Adoption of regulatory norms for residency programs or postgraduate training in certain medical specialties, adoption of normative acts for accreditation and licensing of medical staff and medical institutions of higher and secondary education, and, most importantly, under the auspices of the World Bank, residency programs have been jointly prepared by specialists and foreign experts from the Ministry of Health. The Attestation and Accreditation Commission of Medical Educational Institutions established by the Ministry of Health of Journal number 2 ∘ Nugzar Paichadze ∘ Kakhaber Paichadze ∘ Unemployment Rates in Georgia Calculated According to the New Methodology of Employment Statistics and Ways to Reduce It https://doi.org/10.56079/20222/4 Unemployment is a social-economic status in a society in which a part of the population wishing to work cannot find a job that they are able to do. The main negative economic consequence of unemployment is the non complete usage of the economic potential of the society, which results reduction of the ability to produce GDP in the country and a number of other negative economic and socio-psychological events. Since 2020 after transition to a new methodology of employment statistics, the numbers of employment-related indicators such as: labor force, Employees, the self-employed, the unemployed, the level of employment, the level of unemployment have changed significantly in Georgia. Its evident, that in view of the above, the conclusions reached in the study of a given problem in future would be different than Journal number 2 ∘ Paata Koguashvili ∘ Lado Arabidze ∘ Modernization Opportunities for Georgian Traditional Winemaking https://doi.org/10.56079/20222/5 Winemaking has a big part in world economy. Every year wine production and consumers are being increased. Traditional winemaking of Georgia has a small but important part in this big sector. Recent years were quite hard for world industries. Economic and Technological changes brought us new challenges and a desire for adaptation. Georgian Winemaking has a 8000-year history. During 8000 years of history winemaking and viticulture has always been part of Georgian culture, religion or social life. Because of the big connection and long history Georgian people have developed different winemaking methods like: Qvevri wines, Besides Qvevri wines Georgian people have also developed Kakhuri (Kakhetian) wines that nowadays are classified as Amber (orange) Wines. In the 1900s Georgian people also started to make semi-sweet wines that became the big part of the Georgian viticulture. As we start discu Journal number 2 ∘ Marina Chavleishvili ∘ Georgian Pharmaceutical Market - Current Situation and New Challenges https://doi.org/10.56079/20222/6 At the present stage, it is relevant to study, analyze and make certain assessments of the problems and challenges in the pharmaceutical market. The paper presents the development trends of the Georgian pharmaceutical market, the analysis of the main economic agents in the market, the competitive environment, the existing market barriers and restrictions, the mechanisms for regulating the pharmaceutical market. Based on the obtained results, conclusions are made and recommendations are proposed. Based on the research, three dominant companies were identified in the pharmaceutical market - "Aversi", "PSP" Ltd and JSC "Gefa", which are major market players and they have practically distributed market (total share -70%), however, they pursue a single policy of pricing and price discrimination. Mentioned companies import and distribute pharmaceutical products, have retail sales and production of med Journal number 2 ∘ Leila Gudushauri ∘ Responsible Lending Framework in Georgia: Challenges and Solution Methods https://doi.org/10.56079/20222/7 At the current stage, one of the pivotal challenges to the financial stability of Georgia’s economy has been the excessive debt burden of the private sector and its rapid concurrent growth. For years, granting loans without submitting the proof of income has been the main reason for this problem. Excessive indebtedness, as is known, significantly increases the borrower's solvency risks which, in turn, remarkably foster the borrower's default risk as well as the likelihood of a financial crisis entirely for the country. In response to the challenges of excessive indebtedness of private individuals, in 2019 the National Bank of Georgia launched a responsible lending framework which aims to subjugate all licensed lenders to unified credit granting rules in terms of consumer rights and credit standards. Considering the current reality, this provision was simplified and refined in 2020. The further changes are planned for 2022. The article r Journal number 2 ∘ Besik Bauchadze ∘ Management Accounting Development in the Process of Digital Economy Formation (Case of Georgia) https://doi.org/10.56079/20222/8 In the article there is given the assessment of digital economy in Georgia. It is established that effectiveness of managing activities of the organization depends on the information level support. There are discussed the issues of evaluation of the management accounting system functioning, development of cost accounting and budgeting methods, selection of the automated system for information and analytical support. The management accounting data allows not only to analyze the financial results of the organization activities, but also to manage costs, formulate assortment, investment, contract and pricing policies, and, consequently, directly to manage the organization work. The management accounting, which is the special system of knowledge, skills and abilities, can be described as the combination of two main subject areas: as a science and as a practical field of activity. The digital economics and management accounting are interrelated, bec Journal number 2 ∘ Ioseb Khelashvili ∘ Investment Opportunities in Tourist Accommodation Facilities: A Case Study for Batumi https://doi.org/10.56079/20222/9 The tourism industry has traditionally been the leading sector of the economy of the Georgian Black Sea resort of Batumi for many decades and is currently experiencing rapid growth. This trend is accompanied by an increase in investment activities and the constructions of rental accommodations. Developers are focusing on promoting their rooms and apartments, positioning them as a source of long-term rental income, while potential private (mostly non-professional) buyers are facing difficulties in making grounded investment decisions. The purpose of this study is to identify a number of key indicators that determine a reasonable return on investments in Batumi tourist facilities. After empirical research on a wide range of variables relevant to making investment decisions in this market, key representative indicators were identified and a research design were developed to explore local investment opportunities. Classifying investment proposals Journal number 2 ∘ Günter Hofbauer ∘ Hazard Analysis of the German Car Manufacturing Industry and Related Business Eco Systems https://doi.org/10.56079/20222/10 Hazards and risks can endanger business systems and corresponding business eco systems (BES) in an existence-threatening way. Different reasons may cause technological changes, but stake holders should have a clear road map and strategy to guide through times of change and consider carefully the consequences. It is a matter of fact, that all industries are driven by changes in technologies, business models, processes, constellations, and systems. An appropriate response is a mandatory requirement for companies to survive. Innovativeness is the basis for competitiveness, profitability and sustainability of companies and corresponding industries. The car manufacturing industry is one of the most important industries in Germany and contributes about 12 percent to German GDP. This industry is a driving force for economic growth, employm Journal number 2 ∘ Izolda Lashkarashvili ∘ International Experience in Quality Management and Its Importance in Georgian Business Companies: Level of Customer Satisfaction https://doi.org/10.56079/20222/11 Understanding quality and its importance is one of the biggest challenges for modern business companies. Today, when healthy competition is the key to success, the issues of maintaining a sustainable competitive advantage have become particularly important. When it comes to quality, one of the most important places is occupied by retail service units, which, if they function properly and properly, contribute to customer satisfaction, have a positive impact on them, maintain them and gain their loyalty to the enterprise. The loyal customer is the guarantor of the successful activity of any firm, both in the short and long term. Firms can create all this only with the right strategic management. Based on all the above, this article serves to assess the international experience of quality management and its importance in Georgian business companies. Based on the research question, the hypothesis is formulated as follows: Introduction of internat Journal number 2 ∘ Joseph Archvadze ∘ Lia Kurkhuli ∘ Phenomenon of Giving a Tip: Economic and Psychological Aspects https://doi.org/10.56079/20222/12 Despite the fact that a person is a rationally thinking being, he often shows activities that do not meet the criteria of rationalism, rational use of resources. Such irrational activities are based either on the mental structure and addictions, on the irrational motivation (the use of tobacco and drugs, usage of alcoholic beverages, etc.), or on the stereotypical model of behavior that prevails in society, which often do not fit within the framework of economy and expediency. One of these is "To give a tip". Tip is the money that a person pays additionally for the service offered him. The tradition of giving a tip comes from those countries and societies where, as usual: a) the market economy is sufficiently developed; b) the middle class is quite numerous, and its financial situation and well-being is more or less satisfactory; c) the services are massively used by representatives of average and above-avera