Journal number 1 ∘ Revaz Gvelesiani ∘

Existing Contradictions Among the Basic Social Values and Problems for Their Solution

Social justice has a defi ned content, expresses the ideal and indicates the lack of modern public order. It is clear that when it comes to freedom and justice as the basic values of social jusƟ ce criteria for use, the law is not a sufficient tool to resolve the confl ict arisen between them. Western welfare state aims at reaching a compromise between freedom and fairness, but on the one hand, the democratic methods of the creation of political will do not allow for solid assumption about such compromise. On the contrary, the use of the privileges as an instrument, socially based in political competition, threatens material as well as formal law. On the other hand, it should be examined whether it is possible to change the institutional condiƟ ons in which the creation process of political will takes place and allows for a long-term compromise. The confl icts existing between economic freedom and social justice as well as ongoing conflicts in our everyday life are a great menace t

Journal number 1 ∘ Eka Lekashvili ∘

Current Issues of Social Entrepreneurship Development in Visegrad Countries

The paper deals with the issues of social entrepreneurship, which represent the starting point for social development in a number of countries and regions. It is a subject of heated social debates, which is considered to be the major way for solving social problems. Therefore, development levels of social economy and social business differ. The study covers three main issues: 1. The European experience of social entrepreneurship; 2. Social Entrepreneurship challenges in Visegrad countries; and 3. The recommendations developed based on the outcomes of studying the experience of Visegrad countries in social entrepreneurship should be directed towards encouraging development of entrepreneurship in this direction; in particular: ● The environment which ensures promotion of the development, simplification of financing and proper management of social entrepreneurship should be created through development of legislative framework for regulating social entrepreneurship; �

Journal number 1 ∘ Dimitri Javakhadze ∘

Analysis of the Factors Affecting the Exchange Rate of Lari

The exchange rate of currencies represents a relative value of various countries currencies, that is determined by supply and demand at the currency market in the conditions of floating exchange rate regime. The exchange rate of national currency had been and remains an important economic issue, it’s an important economic parameter of the country and special interest in it is created by speculative interests of economic agents. Since its introduction Lari has undergone periods of its appreciation and depreciation; it is difficult to show all of the factors that negatively afect the GEL exchange rate, although it is possible to identify the main factors. What kind of factors they are, what kind of impact they can have on the nominal exchange rate of lari and whether it is possible to regulate them, these issues are constantly in discussion. The article deals with the factors affecting the exchange rate of national currency against U.S. dollar, analyzes and discusses the signifi ca

Journal number 1 ∘ Avtandil Chutlashvili ∘

The Ratio and Imbalances of Savings and Investment in Georgia

Today, it is necessary to develop the new concept of savings for the solution of economic problems in developing countries. There is a large scientific literature on this subject, but unsolved problems still exist. This paper discusses the structure of the savings of Georgia’s population from 2001 till 2015. The research analyses expenses and incomes of the persons, households and population; it was established that expenses exceeded the incomes in the period from 2001 till 2009. There was carried out comparative analysis of GDP, consumption, expenses and savings. It is shown that only since 2012 savings have become significant macroeconomic indicators. The are also discussed the quesons on transforming savings into investment and possibility of alternave investment. Keywords: Savings; Incomes; Spending; Investment; Bank Deposits; Financial Markets . JEL Codes: E20, E21, E22 დანაზოგების სტრუქტურა და ბალანსი სტ

Journal number 1 ∘ Eliso Beridze ∘

Inclusiveness: The Most Important Factor in Economic Growth and Development

Recently in many countries the problem of inclusive growth has become a highly topical issue. The article focuses on the content of inclusive growth, characterization of inclusive growth factors and the role of inclusiveness in economic growth and development. The proper place in the article is given to the specifi city of inclusive growth and the importance of the improvement of Georgia’s population well-being and the country’s socio-economic advancement in general. In connection of each noted problem, the author of the work has formulated her position and set adequate measures. Keywords: inclusive growth, growth factors, unemployment and employment, disparities in incomes, social equality, inequality coeffi cient, structural transformation, Georgia – 2020. JEL Codes: O10, O40, O50 ბოლო პერიოდში მსოფლიოს მრავალ ქვეყანაში უაღრესად აქტუალური გახდა ი�

Journal number 1 ∘ Alexander Vasilyev ∘

Comparative Analysis of the Real Estate Market in Tbilisi

The study deals with the determination of the dynamics of prices in the sector of residential spaces of the real estate in 2007-2016 in Tbilisi, separation of business cycles, evaluation of the investment climate through short-term forecast within the third and fourth quarters of 2016 and identification of determining factors in respect of price changes. Keywords: Real Estate, Business Cycles; Factor Analysis, The Primary and Secondary Real Estate Markets. JEL Codes: E31, E32, R31 სტატია ეხება თბილისში უძრავი ქონების საცხოვრებელი ფართების სექტორში 2007-2016 წლებისთვის ფასების დინამიკის განსაზღვრას, ბიზნეს-ციკლების გამოყოფას, 2016 წლის მესამე-მეოთხე კვარტლ

Journal number 1 ∘ Giorgi Gaganidze ∘

Trade Relations Between Georgia and the USA: Dynamics and Prospects

In the article the author reviews the existing trade relations between Georgia and the USA, special attention is paid to the structure of the trade and future trends. There are analyzed the possible efects of the free trade agreement between the USA and Georgia. Keywords: Trade Regimes, Free Trade Agreement, Trade Intensification. JEL Codes: F10, F13, F14 სტატიაში განხილულია საექსპორტო პოტენციალის უკეთ რეალიზაციის საკითხები, კონკრეტულ სავაჭრო პარტნიორთან მიმართებით. გაანალიზებულია საქართველო-აშშ სავაჭრო ურთიერთობები და მათი შემდგომი ინტენსიფიკაციის შესაძლებლობები. შეფასებ�

Journal number 1 ∘ Nugzar Todua ∘ Teona Gogitidze ∘

The Study of Consumers Perception of Genetically Modified Products on the Georgian Market

The research examines advantages and disadvantages of production and sale of genetically modifi ed products, as well as, main aspects of their regulations. It is confirmed that the marketing research plays a significant role in the development of GMO market. The marketing research is considered to be a cornerstone in investigation of consumers’ perception towards the GMOs. The study reveals main specifi cations of perception, knowledge and awareness, and main aƫ tudes and tendencies of Georgian buyers of geneƟ cally modifi ed goods. It also defines main factors that impact the decision making process of Georgians during the acquisition of genetically modifi ed products. Keywords: Genetically Modified Products, Consumers Perception, Marketing Study, Georgian Market. JEL Codes: D11, D12, Q18 ნაშრომში გაანალიზებულია გენმოდიფიცირებული პროდუქციის წარმ

Journal number 1 ∘ Miron Tugushi ∘

For the Regulation of Illegal Street Trading in Tbilisi

From the end of the last century in Tbilisi, due to high unemployment, one part of population began illegal street trading; over time its scope gradually expanded and at present it is formed as a serious problem. Although illicit street trading is some alternative source of income for a small number of populayion, its negative consequences are significantly serious. These are: Selling of food products - meat, milk, fish, cheese, sour cream, etc. in the street, in the open air, without meeting the basic sanitary and hygienic conditions; dreadful unsanitary conditions in respective territories; sharp worsening of population’s living conditions due to the noise, difficulties of people’s movement and insanitariness in these territories; street markets and incomes reduction of those employed in them; extreme distortion of the city’s appearance, etc. Illegal street trading in Tbilisi and in the territories adjacent to the Navtlugi Agrarian Market must be ended becau

Journal number 1 ∘ Tengiz Verulava ∘ Revaz Jorbenadze ∘

Hospital Global Budgeting and Health Care Reforms in Georgia

One of the biggest problems for universal health care program is the cost management. Many countries with publicly funded systems of healthcare have adopted global budgets as a key funding mechanism. One of the major attractions of the global budget model is that it can combine administrative simplicity with some incentives for performance enhancements. Furthermore, experience has shown that the information needs of this type of payment mechanism are less than more complex payment systems such as diagnostic related groups and itemized payments. According to the Government officials in Georgia, in order to improve universal health care program administration costs, there are planned reforms for hospitals funding methodology, in particular, installation of the hospital global budgeting. The artucle examines the concept of the global budget financing methodology, the mechanisms of cost containment, the experience of the world and the possibilities of its implementation in Georgia. Key

Journal number 1 ∘ Valeri Mosiashvili ∘ Lia Otiashvili ∘

Some Issues of Educational Organization’s Nonprofit Finances Management

Since 2004 the educational system in Georgia has experienced great changes – the structure of the system, financing and education has changes. In 2005 Georgia joined the Bologna process after which the Ministry of Education and Science in Georgia as well as higher educational institutions are conducting the reforms for the implementation of those tasks that are specified by the Bologna process. The sources of financing the non-state educational organizations are first of all, those income provided under the contract of educational services. As for the accredited establishments the existence of additional source may be the budget financing. The educational organizations conducting the paid educational activities and there is a competition between them risking geƫ ng into two extreme situations. The reduction of the educational service price (for the reason of attracting a great number of educators) may cause the sharp decrease in teaching quality and vice versa, the increase o

Journal number 1 ∘ Gia Beridze ∘

Tax Reforms (Estonian Model) Impact on Economic Growth in Georgia

This article analyzes Georgia’s fiscal reform - Estonian corporate income tax model. It describes the features of the Estonian model; on the example of Estonian experience, explains expected economic and fiscal consequences of the reform, also concentrates on the advantages and disadvantages of the model, including possible problematic issues. Finally, it gives the recommendations for further development of tax code of Georgia. At the end of the analysis the article concludes, that the reform might not have that high impact on the economic growth as the Georgian government expects it to have. Keywords: Estonian tax model; tax reforms in Georgia; economic growth in Georgia; Estonian corporate income tax model in Georgia JEL Codes: H20, H24, O40, O41 სტატიაში გადმოცემულია საქართველოში განხორციელებული ფისკალური რეფორმის, მოგების გად

Journal number 1 ∘ Teimuraz Beridze ∘ Nino Paresashvili ∘

The Conference – “Challenges of Globalization in Economics and Business"

More recently the Faculty of Economics and Business, Ivane Javakhishvili Tbilisi State University conducted the International Scienfic Conference – “Globalization: Challenges in Economics and Business.” There was quite a wide circle of issues discussed: ranging from theoretical aspects of globalization to the risks associated with it. The circle of the conference participants was quite impressive - Germany, Poland, Russia, the Baltic States, Romania, Ukraine, Georgia. The term “globalization” is relatively new in scientific literature, however, as a phenomenon, it existed almost all over the period of the XX century. Globalization is characterized by a range of spectra (layers) - Globalization in politics, economy, social sphere and the other, but, globalization in economy and education (development of foreign trade among countries, creation of the World Trade Organization, introduction of new technologies, transition of education to universal standards)

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 1 ∘ Revaz Gvelesiani ∘ Existing Contradictions Among the Basic Social Values and Problems for Their Solution Social justice has a defi ned content, expresses the ideal and indicates the lack of modern public order. It is clear that when it comes to freedom and justice as the basic values of social jusƟ ce criteria for use, the law is not a sufficient tool to resolve the confl ict arisen between them. Western welfare state aims at reaching a compromise between freedom and fairness, but on the one hand, the democratic methods of the creation of political will do not allow for solid assumption about such compromise. On the contrary, the use of the privileges as an instrument, socially based in political competition, threatens material as well as formal law. On the other hand, it should be examined whether it is possible to change the institutional condiƟ ons in which the creation process of political will takes place and allows for a long-term compromise. The confl icts existing between economic freedom and social justice as well as ongoing conflicts in our everyday life are a great menace t Journal number 1 ∘ Eka Lekashvili ∘ Current Issues of Social Entrepreneurship Development in Visegrad Countries The paper deals with the issues of social entrepreneurship, which represent the starting point for social development in a number of countries and regions. It is a subject of heated social debates, which is considered to be the major way for solving social problems. Therefore, development levels of social economy and social business differ. The study covers three main issues: 1. The European experience of social entrepreneurship; 2. Social Entrepreneurship challenges in Visegrad countries; and 3. The recommendations developed based on the outcomes of studying the experience of Visegrad countries in social entrepreneurship should be directed towards encouraging development of entrepreneurship in this direction; in particular: ● The environment which ensures promotion of the development, simplification of financing and proper management of social entrepreneurship should be created through development of legislative framework for regulating social entrepreneurship; � Journal number 1 ∘ Dimitri Javakhadze ∘ Analysis of the Factors Affecting the Exchange Rate of Lari The exchange rate of currencies represents a relative value of various countries currencies, that is determined by supply and demand at the currency market in the conditions of floating exchange rate regime. The exchange rate of national currency had been and remains an important economic issue, it’s an important economic parameter of the country and special interest in it is created by speculative interests of economic agents. Since its introduction Lari has undergone periods of its appreciation and depreciation; it is difficult to show all of the factors that negatively afect the GEL exchange rate, although it is possible to identify the main factors. What kind of factors they are, what kind of impact they can have on the nominal exchange rate of lari and whether it is possible to regulate them, these issues are constantly in discussion. The article deals with the factors affecting the exchange rate of national currency against U.S. dollar, analyzes and discusses the signifi ca Journal number 1 ∘ Avtandil Chutlashvili ∘ The Ratio and Imbalances of Savings and Investment in Georgia Today, it is necessary to develop the new concept of savings for the solution of economic problems in developing countries. There is a large scientific literature on this subject, but unsolved problems still exist. This paper discusses the structure of the savings of Georgia’s population from 2001 till 2015. The research analyses expenses and incomes of the persons, households and population; it was established that expenses exceeded the incomes in the period from 2001 till 2009. There was carried out comparative analysis of GDP, consumption, expenses and savings. It is shown that only since 2012 savings have become significant macroeconomic indicators. The are also discussed the quesons on transforming savings into investment and possibility of alternave investment. Keywords: Savings; Incomes; Spending; Investment; Bank Deposits; Financial Markets . JEL Codes: E20, E21, E22 დანაზოგების სტრუქტურა და ბალანსი სტ Journal number 1 ∘ Eliso Beridze ∘ Inclusiveness: The Most Important Factor in Economic Growth and Development Recently in many countries the problem of inclusive growth has become a highly topical issue. The article focuses on the content of inclusive growth, characterization of inclusive growth factors and the role of inclusiveness in economic growth and development. The proper place in the article is given to the specifi city of inclusive growth and the importance of the improvement of Georgia’s population well-being and the country’s socio-economic advancement in general. In connection of each noted problem, the author of the work has formulated her position and set adequate measures. Keywords: inclusive growth, growth factors, unemployment and employment, disparities in incomes, social equality, inequality coeffi cient, structural transformation, Georgia – 2020. JEL Codes: O10, O40, O50 ბოლო პერიოდში მსოფლიოს მრავალ ქვეყანაში უაღრესად აქტუალური გახდა ი� Journal number 1 ∘ Alexander Vasilyev ∘ Comparative Analysis of the Real Estate Market in Tbilisi The study deals with the determination of the dynamics of prices in the sector of residential spaces of the real estate in 2007-2016 in Tbilisi, separation of business cycles, evaluation of the investment climate through short-term forecast within the third and fourth quarters of 2016 and identification of determining factors in respect of price changes. Keywords: Real Estate, Business Cycles; Factor Analysis, The Primary and Secondary Real Estate Markets. JEL Codes: E31, E32, R31 სტატია ეხება თბილისში უძრავი ქონების საცხოვრებელი ფართების სექტორში 2007-2016 წლებისთვის ფასების დინამიკის განსაზღვრას, ბიზნეს-ციკლების გამოყოფას, 2016 წლის მესამე-მეოთხე კვარტლ Journal number 1 ∘ Giorgi Gaganidze ∘ Trade Relations Between Georgia and the USA: Dynamics and Prospects In the article the author reviews the existing trade relations between Georgia and the USA, special attention is paid to the structure of the trade and future trends. There are analyzed the possible efects of the free trade agreement between the USA and Georgia. Keywords: Trade Regimes, Free Trade Agreement, Trade Intensification. JEL Codes: F10, F13, F14 სტატიაში განხილულია საექსპორტო პოტენციალის უკეთ რეალიზაციის საკითხები, კონკრეტულ სავაჭრო პარტნიორთან მიმართებით. გაანალიზებულია საქართველო-აშშ სავაჭრო ურთიერთობები და მათი შემდგომი ინტენსიფიკაციის შესაძლებლობები. შეფასებ� Journal number 1 ∘ Nugzar Todua ∘ Teona Gogitidze ∘ The Study of Consumers Perception of Genetically Modified Products on the Georgian Market The research examines advantages and disadvantages of production and sale of genetically modifi ed products, as well as, main aspects of their regulations. It is confirmed that the marketing research plays a significant role in the development of GMO market. The marketing research is considered to be a cornerstone in investigation of consumers’ perception towards the GMOs. The study reveals main specifi cations of perception, knowledge and awareness, and main aƫ tudes and tendencies of Georgian buyers of geneƟ cally modifi ed goods. It also defines main factors that impact the decision making process of Georgians during the acquisition of genetically modifi ed products. Keywords: Genetically Modified Products, Consumers Perception, Marketing Study, Georgian Market. JEL Codes: D11, D12, Q18 ნაშრომში გაანალიზებულია გენმოდიფიცირებული პროდუქციის წარმ Journal number 1 ∘ Miron Tugushi ∘ For the Regulation of Illegal Street Trading in Tbilisi From the end of the last century in Tbilisi, due to high unemployment, one part of population began illegal street trading; over time its scope gradually expanded and at present it is formed as a serious problem. Although illicit street trading is some alternative source of income for a small number of populayion, its negative consequences are significantly serious. These are: Selling of food products - meat, milk, fish, cheese, sour cream, etc. in the street, in the open air, without meeting the basic sanitary and hygienic conditions; dreadful unsanitary conditions in respective territories; sharp worsening of population’s living conditions due to the noise, difficulties of people’s movement and insanitariness in these territories; street markets and incomes reduction of those employed in them; extreme distortion of the city’s appearance, etc. Illegal street trading in Tbilisi and in the territories adjacent to the Navtlugi Agrarian Market must be ended becau Journal number 1 ∘ Tengiz Verulava ∘ Revaz Jorbenadze ∘ Hospital Global Budgeting and Health Care Reforms in Georgia One of the biggest problems for universal health care program is the cost management. Many countries with publicly funded systems of healthcare have adopted global budgets as a key funding mechanism. One of the major attractions of the global budget model is that it can combine administrative simplicity with some incentives for performance enhancements. Furthermore, experience has shown that the information needs of this type of payment mechanism are less than more complex payment systems such as diagnostic related groups and itemized payments. According to the Government officials in Georgia, in order to improve universal health care program administration costs, there are planned reforms for hospitals funding methodology, in particular, installation of the hospital global budgeting. The artucle examines the concept of the global budget financing methodology, the mechanisms of cost containment, the experience of the world and the possibilities of its implementation in Georgia. Key Journal number 1 ∘ Valeri Mosiashvili ∘ Lia Otiashvili ∘ Some Issues of Educational Organization’s Nonprofit Finances Management Since 2004 the educational system in Georgia has experienced great changes – the structure of the system, financing and education has changes. In 2005 Georgia joined the Bologna process after which the Ministry of Education and Science in Georgia as well as higher educational institutions are conducting the reforms for the implementation of those tasks that are specified by the Bologna process. The sources of financing the non-state educational organizations are first of all, those income provided under the contract of educational services. As for the accredited establishments the existence of additional source may be the budget financing. The educational organizations conducting the paid educational activities and there is a competition between them risking geƫ ng into two extreme situations. The reduction of the educational service price (for the reason of attracting a great number of educators) may cause the sharp decrease in teaching quality and vice versa, the increase o Journal number 1 ∘ Gia Beridze ∘ Tax Reforms (Estonian Model) Impact on Economic Growth in Georgia This article analyzes Georgia’s fiscal reform - Estonian corporate income tax model. It describes the features of the Estonian model; on the example of Estonian experience, explains expected economic and fiscal consequences of the reform, also concentrates on the advantages and disadvantages of the model, including possible problematic issues. Finally, it gives the recommendations for further development of tax code of Georgia. At the end of the analysis the article concludes, that the reform might not have that high impact on the economic growth as the Georgian government expects it to have. Keywords: Estonian tax model; tax reforms in Georgia; economic growth in Georgia; Estonian corporate income tax model in Georgia JEL Codes: H20, H24, O40, O41 სტატიაში გადმოცემულია საქართველოში განხორციელებული ფისკალური რეფორმის, მოგების გად Journal number 1 ∘ Teimuraz Beridze ∘ Nino Paresashvili ∘ The Conference – “Challenges of Globalization in Economics and Business" More recently the Faculty of Economics and Business, Ivane Javakhishvili Tbilisi State University conducted the International Scienfic Conference – “Globalization: Challenges in Economics and Business.” There was quite a wide circle of issues discussed: ranging from theoretical aspects of globalization to the risks associated with it. The circle of the conference participants was quite impressive - Germany, Poland, Russia, the Baltic States, Romania, Ukraine, Georgia. The term “globalization” is relatively new in scientific literature, however, as a phenomenon, it existed almost all over the period of the XX century. Globalization is characterized by a range of spectra (layers) - Globalization in politics, economy, social sphere and the other, but, globalization in economy and education (development of foreign trade among countries, creation of the World Trade Organization, introduction of new technologies, transition of education to universal standards)