Economics and Business

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 10.52340

Journal number 2 ∘

Journal N2, 2025 content

„ECONOMICS and BUZINESS“ VOLUM XVII, N2, 2025

C O N T E N T

ECONOMIC THEORY ◊ ECONOMIC POLICY

Elguja Mekvabishvili - Contours of the New World Order and the Prospects for Georgia's Effective Integration into the Global Economy
Nodar Kereselidze - Aligning Georgia’s National Rural Development Initiatives with the Objectives of the EU Common Agricultural Policy (CAP)

DIGITAl ECONOMY

Zhana Tolordava - The Importance of Computer Business Games in Improving Quality of Education
Zaza Sopromadze, Nana Shashiashvili, Besarion Simonishvili - Strategies for Overcoming Barriers to the Integration of Artificial Intelligence (AI) in Pharmaceutical Practice in Georgia

BUSINESS ◊ MANAGEMENT ◊ TOURISM

Eter Kharaishvili, Ineza Gagnidze, Ia Natsvlishvili, Nino Damenia, Tamar Atanelishvili, Tamar Lazariashvili, Nino Lobzhanidze, Lela Aduashvili - Geo-Economic Fragmentation: Challenges and Opportunities for Small and Medium-Sized Business Development in Georgia
Shota Veshapidze, Ramaz Otinashvili, Merab Vanishvili - The Role of “Competitive Intelligence (CI)“ in Building a Business's Competitive Advantage

Khatuna Berishvili - Identifying and Addressing the Impact of Endogenous and Exogenous Factors on Small Businesses in Georgia
Lali Kipshidze - Development Trends in Healthcare Business in Georgia
Manana Aladashvili, Tamar Tamarashvili, Nana Rinkiashvili, Neli Tskitishvili - An Analysis of the Survey Conducted Among Tourism Service Providers in the Kakheti Region

FINANCE and BANKING ◊ ACCAUNTING and AUDIT

Leila Ghudushauri - Challenges and Trends in Managing Overdue Loans for Individuals in Georgia’s Commercial Banks
Aboubaker Khoualed, Ahmed Makhloufi, Ali Bentayeb, Hassiba Almi - Research of the Attractiveness of the Algerian Banking Sector Using the SWOT Analysis
Lia Kodelashvili - What Is Known about Compliance Risk, and Can it Be Assessed
Giorgi Paresishvili - Capital Market Hubs in Post-Soviet Countries: Comparative Analysis of Stock Exchange Development

CRITICISM and BIBLIOGRAPHY

Davit Sikharulidze - Important Scientific Research about Unconventional Economics

ANNIVERSARIES

Professor Nugzar Paichadze – 85
Professor Mirian Tukhashvili – 80
Professor Revaz Gvelesiani's – 70

Bright Memory

Professor Revaz Kakulia

2025-07-06

Journal number 2 ∘ Elguja Mekvabishvili ∘

Contours of the New World Order and the Prospects for Georgia s Effective Integration into the Global Economy

doi.org/10.52340/eab.2025.17.02.01 ჟურნალი N 2. 2025 The contemporary world continues to operate within an international order established after World War II and later revised in the early 1990s. This system, known as the rules-based world order, is founded on the principles of international law and institutions. At its core lies the fundamental respect for state sovereignty and the inviolability of national borders. Additionally, this order is marked by the United States’ predominant global influence and the widespread adoption of liberal principles in post-communist states, as well as certain regions of the so-called “Third World.” Consequently, it is often referred to as “Pax Americana,” signifying a liberal-democratic world framework. However, its crisis – originating in the early 2000s – has persisted to this day. Several epochal events contributed to the gradual destabilization of the existing world order. The
2025-07-06

Journal number 2 ∘ Nodar Kereselidze ∘

Aligning Georgia s National Rural Development Initiatives with the Objectives of the EU Common Agricultural Policy (CAP)

doi.org/10.52340/eab.2025.17.02.02 This study evaluates Georgia’s Agriculture and Rural Development Strategy (2021–2027) in the context of the European Union’s Common Agricultural Policy (CAP). Using comparative policy analysis, stakeholder consultations, and alignment mapping, it identifies areas of convergence and divergence between Georgia’s rural development objectives and CAP principles. While Georgia’s strategy addresses sectoral competitiveness, sustainability, and food safety, it partially aligns with the CAP’s social objectives, particularly in areas such as youth support, employment, and gender equality. The research also highlights institutional challenges, such as fragmented responsibilities and recommends establishing EU-style Managing and Monitoring Authorities. Further alignment with CAP intervention types is also proposed, especially in preparation for IPARD funding. The study concludes with actionable recommendations to strengthen
2025-07-06

Journal number 2 ∘ Zhana Tolordava ∘

The Importance of Computer Business Games in Improving Quality of Education

doi.org/10.52340/eab.2025.17.02.03 The selection and implementation of effective teaching methods in education have gained significant relevance due to ongoing higher education and its globalization. These development have heightened the demands on organizing professional training of students, and the development of their cognitive activity through innovative teaching technologies, which now occupy a prominent position. This opens avenues for blending creative methods with computer technology, distinguishing them from traditional teaching approaches that focus primarily on expanding student's informational knowledge rather than developing professional skills. It is important to emphasize that traditional forms of teaching, such as lectures, seminars, should not be discarded; instead, they must remain integral to the educational process. However, when it comes to professional training and practical skill development, incorporating comprehensive teaching methodologies specifically
2025-07-06

Journal number 2 ∘ Zaza Sopromadze ∘ Nana Shashiashvili ∘ Besarion Simonishvili ∘

Strategies for Overcoming Barriers to the Integration of Artificial Intelligence (AI) in Pharmaceutical Practice in Georgia

doi.org/10.52340/eab.2025.17.02.04 The integration of Artificial Intelligence (AI) into the pharmaceutical sector has the potential to significantly enhance healthcare services. However, several challenges hinder its effective adoption. This study examines the key obstacles facing Georgia’s pharmaceutical industry, including technological, regulatory, educational, and infrastructural barriers. Through a literature-based approach, the paper explores strategies to overcome these challenges. Key findings emphasize the necessity of modernizing pharmacy education, increasing investment in research and development, and strengthening collaborations between the public and private sectors. Additionally, addressing data privacy concerns and rising public awareness are essential for fostering trust in AI technologies. The discussion underscores the importance of aligning local regulations with international standards and promoting continuous professional development. Ultimately,
2025-07-06

Journal number 2 ∘ Eter Kharaishvili ∘ Ineza Gagnidze ∘ Ia Natsvlishvili ∘ Nino Damenia ∘ Tamar Atanelishvili ∘ Tamar Lazariashvili ∘ Nino Nadibaidze ∘ Lela Aduashvili ∘

Geo-Economic Fragmentation: Challenges and Opportunities for Small and Medium-Sized Business Development in Georgia

doi.org/10.52340/eab.2025.17.02.05 The article analyzes the process of deglobalization, focusing on the trends of geo-economic fragmentation caused by deglobalization. It argues that geo-economic fragmentation intensifies geopolitical and economic tensions, posing significant challenges to the growth of global businesses - particularly small and medium-sized enterprises (SMEs). In this context, the article highlights the importance of identifying both the positive and negative impacts of geo-economic fragmentation on small and medium-sized businesses, exploring the challenges and opportunities it presents, and examining strategies for adapting to the emerging economic landscape. To address these concerns, the following research questions have been formulated: RQ1: What are the historical evolution and current trends in the study of geoeconomic fragmentation?RQ2: What are driving factors behind geoeconomic fragmentation?RQ3: How does geo-economic fragmentation influence the
2025-07-06

Journal number 2 ∘ Shota Veshapidze ∘ Ramaz Otinashvili ∘ Merab Vanishvili ∘

The Role of Competitive Intelligence in Building a Business s Competitive Advantage

doi.org/10.52340/eab.2025.17.02.06 In today’s fast-evolving business environments, the rapid shifts in competitive dynamics, the growing digitalization of enterprises, and the intensifying market competition have heightened the significance of competitive intelligence as a vital component of strategic management. Michael Porter, a distinguished American scholar, is widely recognized as the pioneering figure in competitive intelligence research. Other notable contributors to this field include Gilad, B., Kahaner, L., Prescott, J.E., and Vezmar, J.M.The first systematic implementation of competitive intelligence in practice was undertaken by Xerox, a leading manufacturer of photocopiers, which applied competitive intelligence at three distinct levels. This strategic approach has been widely credited as a key factor in the rapid expansion of Chinese companies in recent decades. The following statistics illustrate the extent to which competitive intelligence is utilized across
2025-07-06

Journal number 2 ∘ Khatuna Berishvili ∘

Identifying and Addressing the Impact of Endogenous and Exogenous Factors on Small Businesses in Georgia

doi.org/10.52340/eab.2025.17.02.07 In order to overcome the economic and social problems of society, authorities of all countries pay great attention to supporting small businesses and their development. At the current stage of Georgia's development, small businesses have a significant impact on raising the standard of living of the population and the country's economic growth rates. A fundamentally new approach to the development of economic policy and the social sphere lies in the fact that their main task is not the distribution of social benefits but rather fostering dynamic growth of the employed, enhancing their qualifications, integration into the labor market and, on this basis, advancing the social sphere. In this context, small businesses are an objectively necessary and important socio-economic element of a market economy, which allows not only to solve such important problems as: employment of the population and growth of their income, but also contributes to the
2025-07-06

Journal number 2 ∘ Lali Kipshidze ∘

Development Trends in Healthcare Business in Georgia

doi.org/10.52340/eab.2025.17.02.08 Over the past two decades, Georgia’s healthcare sector has undergone profound transformations driven by liberalization, privatization, and targeted reforms aimed at improving access to services and their quality. The article examines the sector’s current state, business models, and strategic development trends in Georgia’s healthcare industry between 2015 and 2024. It presents a comprehensive analysis grounded in a mixed-methods research approach, including quantitative data analysis, policy review, expert interviews, SWOT analysis, and comparative studies with Baltic and Scandinavian healthcare models. Healthcare as a Business: The New LandscapeIn the 21st century, healthcare in Georgia has transitioned from being solely a social service to an emerging economic sector that attracts private investment and innovation. This evolution has been shaped by public-private partnerships (PPPs), the growing influence of private providers,
2025-07-06

Journal number 2 ∘ Manana Aladashvili ∘ Tamar Tamarashvili ∘ Nana Rinkiashvili ∘ Neli Tskitishvili ∘

An Analysis of the Survey Conducted Among Tourism Service Providers in the Kakheti Region

doi.org/10.52340/eab.2025.17.02.09 The tourism industry plays a pivotal role in unlocking the country's resource potential, driving sustainable economic growth, enhancing employment opportunities, rising income levels, and addressing various social challenges. Georgia stands out as a year-round tourist destination, celebrated for its rich cultural and natural heritage as well as ancient traditions of hospitality. These attributes provide promising opportunities for tourism development. The country is particularly focused on attracting high-income tourists from around the world, a strategy that can also be adapted to specific regions within Georgia. In many developed and developing regions, tourism often serves as the primary source of income, significantly benefiting local population through revenues it generates. Despite its potential, many regions lack comprehensive research of tourism service providers. Such analysis is essential for improving the quality of service and
2025-07-06

Journal number 2 ∘ Leila Ghudushauri ∘

Challenges and Trends in Managing Overdue Loans for Individuals in Georgia s Commercial Banks

doi.org/10.52340/eab.2025.17.02.10 Overdue personal loans represent one of the most complex challenges amid Georgia’s fragile political and economic development. This issue extends beyond the concerns of commercial banks and their customers, involving into a broader public and governmental challenge.The paper examines the causes of overdue personal loans and management challenges faced by Georgia's banking sector, analyzing both internal and external factors affecting customer solvency while exploring potential strategies for loan recovery to minimize their presence in the bank's overall credit portfolio.Problematic loans continue to pose a significant problem in Georgia's evolving banking sector. The volume of overdue loans is influenced by internal banking policy as well as external factors such as economic conditions, political developments, and stability. The primary reasons for loan delinquency include: • Unstable income hindering consistent debt payment - Any
2025-07-06

Journal number 2 ∘ Aboubaker Khoualed ∘ Ali Bentayeb ∘ Ahmed Makhloufi ∘ Hassiba Almi ∘

Research on the Attractiveness of the Algerian Banking Sector Using SWOT Analysis

doi.org/10.52340/eab.2025.17.02.11 The SWOT model is one of the most widely used tools for environmental analysis, adopted by various organizations, including banks, due to its crucial role in shaping strategic direction. It helps banks define their future vision of the market and accurately assess their competitive position. This analysis encompasses various macro aspects, offering a comprehensive evaluation of a bank’s internal and external environment, making it an essential instrument for strategic planning. This research aims to examine the current state of the Algerian banking sector, assess its attractiveness, and evaluate its potential to draw international banks and financial institutions. To achieve this objective, a descriptive method was employed, utilizing diverse data and statistics related to all public and private banks operating in Algeria, totaling 19 banks. The findings reveal a balanced interplay between the strengths, weaknesses, opportunities, and risks
2025-07-06

Journal number 2 ∘ Lia Kodelashvili ∘

What Is Known about Compliance Risk, and Can it Be Assessed

doi.org/10.52340/eab.2025.17.02.12 The concept of “compliance risk” was first introduced into the Georgian legislative framework for companies operating in the financial sector in 2008. Despite its significance, there remains a notable lack of scholarly research focused on the management, characteristics, assessment, mitigation, and control of compliance risks in Georgia. Building on this contextual gap, this study aims seeks to explore contemporary practices for managing and assessing compliance risks. To achieve this goal, the paper addresses the following research questions: How is compliance risk defined? Why is compliance risk management important? What is the significance of compliance within the framework of corporate governance? How do the concepts of compliance, compliance management, and compliance risk management differ? What is risk and its management, in general, and compliance risk management, in particular? Which methods are employed in the banking sector
2025-07-06

Journal number 2 ∘ Giorgi Paresishvili ∘

Capital Market Hubs in Post-Soviet Countries: Comparative Analysis of Stock Exchange Development

doi.org/10.52340/eab.2025.17.02.13 The stock exchange, as a central hub of capital market activities, plays a vital role in facilitating companies’ capital-raising efforts, offering investors opportunities to trade securities, and driving overall economic growth. In post-Soviet countries, the evolution of stock exchanges has been shaped by dual influence of Soviet-era economic legacies and pressing need to modernize financial systems to align with global standards. While significant progress has been made, post-Soviet stock exchanges continue to face persistent challenges. In the future, it is imperative for these exchanges to prioritize investments in digital infrastructure and technological advancements to optimize market operations. Emerging fintech innovations and blockchain technologies offer promising avenues for enhancing market accessibility, transparency, and security. Moreover, local stock exchanges must strengthen their integration with international financial
2025-07-06