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 4 ∘ Giorgi Malashkhia ∘

Consumer Excess Is A Challenge To Humanity

The article examines the economic, social, and ethical aspects of such a widespread phenomenon as consumer surplus - excessive consumption and accumulation of good from the point of view of a eudemonic vision, human happiness. It is presented as a challenge to humanity, the overcoming of which is associated with the elimination of the harm of a number of human negatives - greed, the unreasonableness of needs and their satisfaction, etc. The article defines the essence of consumer surplus, explains its manifestations, causes of occurrence, and socio-economic consequences show what place is occupied by consumer surplus in people's lives. The author draws attention to the limitedness of reasonable needs and consumer power of a person, the senselessness of excessive consumption, and the accumulation of goods. Excessive consumption and accumulation of goods are assessed as deviant behavioral acts. The work focuses on the manifestations of consumer excess,

Journal number 4 ∘ David Chelidze ∘

Inflation and Some Directions of Improvement in Its Management - Regulation

Despite the severity of the problems facing the Georgian economy, the recent inflationary processes deserve special attention. Activation of the fight against inflation implies the study-analysis of the legal framework regulating the functioning of the monetary-credit system of the country. In the light of the foregoing in the first part of the work based on estimation of the key macroeconomic parameters stimulating inflation, in particular: the Real Gross National Product, the aggregate budget balance, foreign investments, the trade deficit, and the actual M2 Money Stock and trends estimated parameters, and the estimates made based on the Irving Fisher’s Equation of the Theory of Money, and the conclusion(s) made upon complex analysis of the inflation targeting legal regulatory norms, improvement of the existing practice (including existing legal base) of management/regulation of inflation processes is regarded as an urgent objective.&nb

Journal number 4 ∘ Kristine Uglava ∘

Decentralization for Local Economic Development

An important strategic method to achieve Sustainable Development Goals faster in the country is the applying Local Economic Development approach (LED approach), for which it is necessary to have the preconditions in the country provided through decentralization processes. This paper presents an analysis of the role of decentralization for successful implementation of the Local Economic Development approach in Georgia; a general overview of the current situation, problems, and challenges in Georgia; an assessment of relevant implemented reforms and problem-solving ways. Since 2010, changes have been made in all directions of decentralization in Georgia ( for political, administrative, economic, and fiscal decentralization). However, despite the progress, the situation shows that many more reforms is needed to be carried out in order to involve local self-governments in the processes of local social and economic development and, moreover, to make them becoming initiators

Journal number 4 ∘

About Effective Cash Flow Management of the Company

Managing a company’s cash flow is part of the financial activities that are important to the overall stability of the business. Competition between companies makes it difficult to increase profit as well as maintain positive cash flows. While the main goal of companies is to increase profit and market share, less attention is paid to forecasting and managing cash flows. Cash flow is a driving force for any company and developing the right management strategy is vital to any sector of the economy. The aim of the research is to discuss the theoretical-methodological aspects related to cash flow management and to evaluate the factors affecting cash flow in order to improve the company's cash flow management. Based on the consideration of cash flow measurement and reporting methods, we can say that these methods differ from each other only by the specifics of calculating cash flows obtained from opera

Journal number 4 ∘ Vazha Verulidze ∘

Green Taxes, Bioeconomy and Sustainable Development of Georgian Agricultural Sector

The present-day world faces many challenges, among them is a negative impact of climate change on the environment and maintaining a stable economic growth under the conditions of the existing economic system because this system causes degradation of the environment and exhaustion of natural resources. Therefore, sustainable economic development is associated with efficient use of natural resources, boosting of bioeconomy, and implementing green taxation. In Georgia, the role of green taxes in achieving a long-term sustainable development of the economy and maintaining it is not sufficiently explored. The aim of the research is to demonstrate the substance and importance of bioeconomy and green taxes, for ensuring sustainable development of the agricultural sector. In accordance with the green economy strategy of Georgia, infrastructural investments are envisaged in the agricultura

Journal number 4 ∘ Gela Tsitelashvili ∘

Topical Issues of Assessing Profitability and Financial Stability of Georgian Mobile Operators

The aim of this article is to research and analyze of profitability and financial stability of leading Georgian telecommunications companies and prepare respective conclusions and recommendations based on the given research. Given analysis is performed based on pre-Covid pandemic period and during Covid pandemic period financial information and based on given research were made respective conclusions and recommendations. We determined potential improvement steps, which should be taken by the company to improve future financial stability and profitability. Based on performed research and analysis, we identified, that the pre-pandemic period financial stability of JSC “Silknet” and LLC “Vioni Georgia” was higher, than during the pandemic period, when most indicators of companies’ profitability deteriorated, including gross profit margin and operating profit margin. Performed research resulted in the following conclusions: Profitability is variable during

Journal number 4 ∘ Merab Khmaladze ∘

Demographically Dying Villages in Georgia

Statistical data on the number of villages and their population are provided by the censuses of the population that record the changes which occurred in the periods between the censuses. Of the categories of villages we have considered, the most hopeless is the former settlements, hopeless because it is unimaginable to ever revive them. The transformation of villages into former settlements accelerated in the second half of the 20thcentury when the rural population began to move intensively from rural to urban areas. During 1970-2002, 69 villages disappeared from the “statistical map”, while during 2002-2014 their number reached 121. Out of these 121 villages, 11 come to Adjara, 8 to Imereti, 87 to Mtskheta-Mtianeti, and 15 to Kartli. The condition of small villages is also deplorable. Small villag

Journal number 4 ∘ Ana Chagelishvili ∘

Employment and development problems of people with disabilities in Georgia

The paper discusses employment and development problems of people with disabilities in Georgia, for which the level of realization of their labor rights is studied based on documentary research: the national normative base and legislative changes implemented in recent years are analyzed; State programs, strategies and statistical data on employment and development of people with disabilities are discussed; The employment problems and main trends of people with disabilities are described. Statistical data of international institutions, the National Statistics Office of Georgia, Civil Service Bureau and other local institutionsare used in the research. The study summarized the legal issues hindering the employment and development of people with disabilities, taking into account the effectiveness of the enforcement mechanism, identified public barriers and employer attitudes on a number of issues, on which the author's conclusions and relevant recommendations were formulated. Keywords:

Journal number 4 ∘ Magda Magradze ∘

The Role of Internationalization of Higher Education for Country’s Economic Development

The country of Georgia is a newly emerged democracy located in a geopolitically important Caucasus region. Since Georgia regained independence in 1991, it has been struggling with political and economic challenges. Poverty and unemployment have been some of the major challenges that the Governments of Georgia have been facing since independence. Recent developments have made it clear to the Government and people of Georgia, that education is the key to the country’s economic growth and development. The Government of Georgia’s new social-economic development strategy “Georgia 2020” as well as a four-pillar strategic development plan and reform agenda declare education as the country’s major priority. It is believed that high-quality education will yield in raising professionals who will help the country develop through the attraction of investments, creation of new businesses, and support of the industry. The workforce in Georgia does not meet the indus

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 4 ∘ Giorgi Malashkhia ∘ Consumer Excess Is A Challenge To Humanity The article examines the economic, social, and ethical aspects of such a widespread phenomenon as consumer surplus - excessive consumption and accumulation of good from the point of view of a eudemonic vision, human happiness. It is presented as a challenge to humanity, the overcoming of which is associated with the elimination of the harm of a number of human negatives - greed, the unreasonableness of needs and their satisfaction, etc. The article defines the essence of consumer surplus, explains its manifestations, causes of occurrence, and socio-economic consequences show what place is occupied by consumer surplus in people's lives. The author draws attention to the limitedness of reasonable needs and consumer power of a person, the senselessness of excessive consumption, and the accumulation of goods. Excessive consumption and accumulation of goods are assessed as deviant behavioral acts. The work focuses on the manifestations of consumer excess, Journal number 4 ∘ David Chelidze ∘ Inflation and Some Directions of Improvement in Its Management - Regulation Despite the severity of the problems facing the Georgian economy, the recent inflationary processes deserve special attention. Activation of the fight against inflation implies the study-analysis of the legal framework regulating the functioning of the monetary-credit system of the country. In the light of the foregoing in the first part of the work based on estimation of the key macroeconomic parameters stimulating inflation, in particular: the Real Gross National Product, the aggregate budget balance, foreign investments, the trade deficit, and the actual M2 Money Stock and trends estimated parameters, and the estimates made based on the Irving Fisher’s Equation of the Theory of Money, and the conclusion(s) made upon complex analysis of the inflation targeting legal regulatory norms, improvement of the existing practice (including existing legal base) of management/regulation of inflation processes is regarded as an urgent objective.&nb Journal number 4 ∘ Kristine Uglava ∘ Decentralization for Local Economic Development An important strategic method to achieve Sustainable Development Goals faster in the country is the applying Local Economic Development approach (LED approach), for which it is necessary to have the preconditions in the country provided through decentralization processes. This paper presents an analysis of the role of decentralization for successful implementation of the Local Economic Development approach in Georgia; a general overview of the current situation, problems, and challenges in Georgia; an assessment of relevant implemented reforms and problem-solving ways. Since 2010, changes have been made in all directions of decentralization in Georgia ( for political, administrative, economic, and fiscal decentralization). However, despite the progress, the situation shows that many more reforms is needed to be carried out in order to involve local self-governments in the processes of local social and economic development and, moreover, to make them becoming initiators Journal number 4 ∘ About Effective Cash Flow Management of the Company Managing a company’s cash flow is part of the financial activities that are important to the overall stability of the business. Competition between companies makes it difficult to increase profit as well as maintain positive cash flows. While the main goal of companies is to increase profit and market share, less attention is paid to forecasting and managing cash flows. Cash flow is a driving force for any company and developing the right management strategy is vital to any sector of the economy. The aim of the research is to discuss the theoretical-methodological aspects related to cash flow management and to evaluate the factors affecting cash flow in order to improve the company's cash flow management. Based on the consideration of cash flow measurement and reporting methods, we can say that these methods differ from each other only by the specifics of calculating cash flows obtained from opera Journal number 4 ∘ Vazha Verulidze ∘ Green Taxes, Bioeconomy and Sustainable Development of Georgian Agricultural Sector The present-day world faces many challenges, among them is a negative impact of climate change on the environment and maintaining a stable economic growth under the conditions of the existing economic system because this system causes degradation of the environment and exhaustion of natural resources. Therefore, sustainable economic development is associated with efficient use of natural resources, boosting of bioeconomy, and implementing green taxation. In Georgia, the role of green taxes in achieving a long-term sustainable development of the economy and maintaining it is not sufficiently explored. The aim of the research is to demonstrate the substance and importance of bioeconomy and green taxes, for ensuring sustainable development of the agricultural sector. In accordance with the green economy strategy of Georgia, infrastructural investments are envisaged in the agricultura Journal number 4 ∘ Gela Tsitelashvili ∘ Topical Issues of Assessing Profitability and Financial Stability of Georgian Mobile Operators The aim of this article is to research and analyze of profitability and financial stability of leading Georgian telecommunications companies and prepare respective conclusions and recommendations based on the given research. Given analysis is performed based on pre-Covid pandemic period and during Covid pandemic period financial information and based on given research were made respective conclusions and recommendations. We determined potential improvement steps, which should be taken by the company to improve future financial stability and profitability. Based on performed research and analysis, we identified, that the pre-pandemic period financial stability of JSC “Silknet” and LLC “Vioni Georgia” was higher, than during the pandemic period, when most indicators of companies’ profitability deteriorated, including gross profit margin and operating profit margin. Performed research resulted in the following conclusions: Profitability is variable during Journal number 4 ∘ Merab Khmaladze ∘ Demographically Dying Villages in Georgia Statistical data on the number of villages and their population are provided by the censuses of the population that record the changes which occurred in the periods between the censuses. Of the categories of villages we have considered, the most hopeless is the former settlements, hopeless because it is unimaginable to ever revive them. The transformation of villages into former settlements accelerated in the second half of the 20thcentury when the rural population began to move intensively from rural to urban areas. During 1970-2002, 69 villages disappeared from the “statistical map”, while during 2002-2014 their number reached 121. Out of these 121 villages, 11 come to Adjara, 8 to Imereti, 87 to Mtskheta-Mtianeti, and 15 to Kartli. The condition of small villages is also deplorable. Small villag Journal number 4 ∘ Ana Chagelishvili ∘ Employment and development problems of people with disabilities in Georgia The paper discusses employment and development problems of people with disabilities in Georgia, for which the level of realization of their labor rights is studied based on documentary research: the national normative base and legislative changes implemented in recent years are analyzed; State programs, strategies and statistical data on employment and development of people with disabilities are discussed; The employment problems and main trends of people with disabilities are described. Statistical data of international institutions, the National Statistics Office of Georgia, Civil Service Bureau and other local institutionsare used in the research. The study summarized the legal issues hindering the employment and development of people with disabilities, taking into account the effectiveness of the enforcement mechanism, identified public barriers and employer attitudes on a number of issues, on which the author's conclusions and relevant recommendations were formulated. Keywords: Journal number 4 ∘ Magda Magradze ∘ The Role of Internationalization of Higher Education for Country’s Economic Development The country of Georgia is a newly emerged democracy located in a geopolitically important Caucasus region. Since Georgia regained independence in 1991, it has been struggling with political and economic challenges. Poverty and unemployment have been some of the major challenges that the Governments of Georgia have been facing since independence. Recent developments have made it clear to the Government and people of Georgia, that education is the key to the country’s economic growth and development. The Government of Georgia’s new social-economic development strategy “Georgia 2020” as well as a four-pillar strategic development plan and reform agenda declare education as the country’s major priority. It is believed that high-quality education will yield in raising professionals who will help the country develop through the attraction of investments, creation of new businesses, and support of the industry. The workforce in Georgia does not meet the indus