Economics and Business
Referential and Reviewed International Scientific-Analytical Journal of Ivane Javakhishvili Tbilisi State University, Faculty of Economics and Business
Referential and Reviewed International Scientific-Analytical Journal of Ivane Javakhishvili Tbilisi State University, Faculty of Economics and Business
Journal number 3 ∘ Elguja Mekvabishvili ∘ Teimuraz Beridze ∘
K. Marx’s "Capital" and the Global Financial and Economic Crisis (Dedicated to the 150th Anniversary of the First Volume of “Capital”)
K. Marx is one of the greatest intellectual figures in human history. Now, when there is no longer a "socialist" system based on the main postulates of Marx, its great merit as a research scholar is acknowledged by modern visible authors. They name Marx among the most prominent economists of all time, along with A. Smith and J. M. Keynes. Interest in Marx’s theoretical heritage became especially strong in the global financial crisis and post-crisis period. At that time, K. Marx’s "Сapital" became the best-selling book, and the influential magazine "The Economist" published the French President N.Sarkozy’s caricature holding "Capital" in his hands. This fact was preceded by a number of acute public speeches of Sarkozy, including the EU summit in October 2008, where he said that ultra liberal capitalism suffered a collapse and it was necessary to change it with the model of social market economy. Marx had supposed to publish his main work "The Critique of Political EJournal number 3 ∘ Ushangi Samadashvili ∘
The Objective Necessity for Accelerating Economic Growth of Georgia and the Main Priorities
In the article, based on the analysis and comparison of macro-indicators, there is characterized the unfavorable situation in the Georgian economy. There is also shown a low real per capita gross domestic product or an insufficient living standard and a serious backwardness in comparison to the European Union. On the basis of the appropriate calculations and the method of abstraction, it is justified that in order to get out of this situation and a gradual rapprochement with the European Union, it is objectively necessary not annual three percent growth of the economy, but higher rates, stable and long-term growth. The main priorities for accelerated growth are identified. Keywords: Economic Growth; Living Standard; GDP Per Capita; Time Buying; Problems and Opportunities; Shortcomings and Reserves; Main Priorities. JEL Codes: F43, F44, F49 საქართველოს ეკონომიკური ზრდის დაჩქარების ობიექტუJournal number 3 ∘ Inga Balarjishvili ∘
Behavior of Elites and Informal Institutionalization
Based on the retrospective analysis of post-Soviet "informalism" in the work there is presented the hypothesis of "population", "succession" and "variation" of non-formal institutions. Traditional informal institutions will be maintained on the one hand and on the other hand they experience "mutation", transform into new forms. This scenario of non-formal institutionalization leads to a high level of uncertainty in the economy and the formation of negative institutional expectations, the distrust of the economic agents towards the legitimate system of rules. Keywords: Elite; Formal Rules; Informal Institutionalization; Institutional "trap"; Cultural Determinism; Institutional Transformation. JEL Codes: B52, O10, O17 ელიტების ქცევა და არაფორმალური ინსტიტუციონალიზაცია სტატიაში ნეოინსტიტუციონალიზმის მეთოდოლოგJournal number 3 ∘ Lia Svanidze ∘
Physiological Basics of Human Psyche
The work discusses extremely scrupulous problem, which over the centuries was in the center of interest of corresponding sciences – the issue of interrelations and interdependence of soul and body, material and nonmaterial, psyche and physiology. The author absolutely intelligibly considers this extremely complicated problem and from the very beginning informs us that psyche doesn’t exist irrespective of material world. It was formed along with origination of brain, as organic brain property, nonmaterial phenomenon, as the world of emotional experience, which underlies a life process and serves subjective, active refl ection of objective reality. The author emphasizes: "Despite the fact that psyche is brain property and is based on corresponding physiological processes, it isn’t confined only by interrelations with these processes. That’s why scientific study of psyche is impossible without knowledge of laws of supreme neural impact taking place in the brain".&nJournal number 3 ∘ Badri Ramishvili ∘
Economic Analysis of the Military Megatrend and Its Influence on the Formation of the World Geostrategic Landscape
The presented article is a continuation cycle aimed at identifying Georgia’s position in the global geostrategic landscape. The given paper describes the economic analysis of the military megatrend. Based on the geopolitical location of Georgia and the situation created, the research of this trend is especially important. The author begins the research of military megatrend with the historic perspective of the post-World War II confrontation between the USSR and the US. In the article, the research continues about the situation created in the late XX century, when two military blocks confronted each other. The author also analyzes the modern confrontation of the West and Russia with the historical context. Russia’s military expenditures in 2016 were 3.5 times lower as compared with the analogous indicator of the USSR in 1988. In the same years the diff erence between the Warsaw Agreement and the Collective Security Treaty Organization was almost 4-fold, in favor of thJournal number 3 ∘ Tengiz Verulava ∘
The Role of Non-Profit Hospitals in Health Care System: World Practice and Georgia
The health care market is substantially different from other areas of the economy and therefore the behavior of health care providers operating in the health care market is different, which is mainly related to the form of ownership. If the market is mainly characterized by the pursuit of maximum profit, medical services market has for some public good features. Because of this, non-profit hospitals in Western countries are considered as an alternative form of commercial hospitals. The purpose of the research was to study the role of not-for-profit hospitals in the United States as an example, and in this regard examine the situation of the medical market in Georgia. Methodology: The existing literature about non-profit hospitals, relevant legislation and statistical data, scientific articles, and other related works. Results: The majority of the hospitals in Georgia represents profitable (commercial) organizations. 42% of the hospitals owned by private insurance companies, 29% - by pJournal number 3 ∘ Shorena Tielidze ∘
The Main Challenges of Labour Market in Georgia
Labour market is the most signifi cant component of the market economy whose main function is to provide manufacturing and service sector with relevant human resources. The perfect functioning of the labor market largely determines the quality of use of the country’s labor and economic potential, as well as the living standards of the population. However, there are many problems in the process of market development that can be solved by developing and implementing targeted state policy in the fi eld of employment. The article discusses the main indicators of the labor market of Georgia, labor market demand and supply components and their importance for promoting economic development of the country. There are highlighted the recent labor market challenges and adequate response mechanisms. Keywords: Employment; Unemployment; Labour Market. JEL Codes: E24, J21, J23 შრომის ბაზრის ძირითადი გამოწვევები საქართJournal number 3 ∘ Giorgi Gaganidze ∘
Export Potential and Competitive Advantages of the Georgian Products on the EU Market
In the article the author examines Georgia’s export potential and competitive advantages of Georgian products on the EU market. In particular, there is analyzed the volume of export potential, its ability to develop and increase. The export potential assessment is based on the detailed analysis of the EU import market according to specific commodity groups. Keywords: Export Potential; Competitiveness; Trade Intensity. JEL Codes: F14, F16, M21 ქართული პროდუქციის საექსპორტო პოტენციალი და კონკურენტული უპირატესობები ევროკავშირის ბაზარზე სტატიაში ავტორი იკვლევს საქართველოს საექსპორტო პოტენციალისა და ქართული პროდუქციის კონკურენტული უპირაJournal number 3 ∘ Ioseb Khelashvili ∘
The Importance of Transdisciplinary Studies in Sustainable Development of Tourism
The concept of sustainable development is focused on rational allocation of limited resources in the long-term. It deals with the inter-related social, economic and ecological processes which are the cornerstones for studying complex tourism-related issues. While developing the concept, a new trans-disciplinarily approach has emerged. It aims to diminish the gap between theory and practice, and to generate new ways to address complex and interrelated social, economic and ecological issues. These are the explicit and implicit driving forces of many tourism-related problems. Identifying and solving these issues lead to sustainable development. In Georgia’s Black Sea coast, mountainous regions and protected areas, some problems have surged as subjects of the transdisciplinary study. According to the concept’s methodology, the first step is identifying such problems. Further steps include problem structuring, followed by phases of problem analysis, and finally bringing resuJournal number 3 ∘ Maya Gogokhia ∘
Options on the Modern Global Securities Market
The paper discusses the main features of one of the most popular securities on the modern financial markets – option contracts, such as, for example, intrinsic value and time value. Also, for the purpose of evaluating options, formulas of estimating optimal price of options are given and different option strategies are displayed. Keywords: Options; Margin; Delta; Hedgers Strategy; Operators’ Strategy; Straddle. JEL Codes: E44, K22, O16 ოფციონები თანამედროვე გლობალურ საფონდო ბაზარზე სტატიის მიზანია თანამედროვე საფონდო ბაზრებზე ფართოდ გამოყენებადი ვადიანი წარმოებული ფინანსური ინსტრუმენტის - ოფციონური კონტრაქტის ძირითადი ნიშნების (Journal number 3 ∘ Natia Jibladze ∘
The Challenges of International Trade Financing after the Global Financial-Economic Crisis
The global economic crisis of the 21th century is one more clear example what a scale of negative impacts are caused by the late or inadequate estimation of economic events or trends and the negative results no longer leave any leverage for the crisis-hit countries to lift up and find an effective ways to minimize the adverse consequences of the crisis. In spite of that the international trade financing is considered to be the low-risk and high-secured lending area, the global crisis has significantly damaged international trade. Due to the actuality of the issue, world scientific society, governments, local and international institutions are actively involved in the search of ways for crisis prevention. In this regard, it is important to look for and take into consideration the challenges of the international trade finance. The work is dedicated to the challenges of international trade finance after the global financial-economic crisis. Peculiarities of modern financial-economic criJournal number 3 ∘ Levan Sabauri ∘
Some Issues of Accounting in Tariff Regulation Conditions
In early 2014, the International Financial Reporting Standards Board (IFRS) issued IFRS 14 Regulatory Deferral Accounts (the interim standard or IFRS 14) to ease the adoption of the IFRS for rate-regulated entities. The new standard will enable such companies not to change the accounting policy in the accounting of the deferred tariff corrections and to use such accounting in accordance with the National Accounting Standards according to the IFRS during the preparation of reports. Within the framework of this article, we consider the basic conditions for the use of 14 "Deferred Tariff Differences Reports" in the IFRS report when disclosing information in the financial statements and its explanatory notes. What is the tariff correction? This is the amount according to which the tariff regulator corrects the price of goods and services intended for sale by the enterprise (the company). In accordance with Section 4.8-4.19 of the conceptual basis of financial account, such adjustmentsJournal number 3 ∘ Lali Buchukuri ∘
Monitoring of Quality Control of Audit Activities in Georgia
The given article discusses the issue relating to improvement of audit firms and control of their quality. Georgia’s aspiration to EU membership requires development of investment and business environment to be promoted that is a necessary condition for improvement of Georgia’s economy. Successful functioning of business depends on the management organizational level and structure, as well as on the reliability quality of financial information for external customers. This could be achieved without perfect regulation of audit. Therefore, quality control of audit activities has a great importance. Keywords: Auditing Activities,; Auditing Activities Legislation; Quality Control of Audit Activity. JEL Codes: M40, M42, M48 აუდიტორული საქმიანობის ხარისხის კონტროლის მონიტორინგი საქართველოში გამჭვირვალე და ხარისხიაJournal number 3 ∘ Salome Sakvarelidze ∘
The Motivation Aspects of Public Servants
In a modern world, the motivated employee plays an important role for an organization. Individual motivation has different biological, intellectual, social and emotional factors. Based on this, it is recommended that managers employed in the public agencies to ensure creation of a certain motivation to achieve a high degree of performance. Nowadays public servants face many challenges, such as: incompatibility of knowledge, experience and position, as well as hard and lightweight work that affects their work quality. Consequently, human resources management specialists should be aware of the ability of modern human resource management methods that can be used in effective and efficient ways. The article discusses the motivation of public servants (PSM). The research results conducted by various researches are presented, which must be taken into consideration by the State Agencies. Keywords: Human Resource Management; Motivation; Public Service; Public Servant Encouragement Systems