English / ქართული /

Journal number 2 ∘ Murman Tsartsidze

The Active Policy on Labor Market and the Peculiarities of Youth Employment

 The principle objective of macro-economic policy is the provision of effective employment for the population at the current stage of forming and developing the labor market in Georgia. The above-mentioned is conditioned by the fact, that the unemployment represents the most acute, global and topical challenge, which is acknowledged to be the key factor causing the poverty in the country. On the basis of the aforesaid, the in-depth research of problems related to the certain social-demographic groups of population, especially the employment of the young people, is attached the considerable significance. The study of the existing situation in the mentioned sphere, as well as the analysis of findings of the conducted researches, allow us to infer a set of the following conclusions:        1. Under the modern conditions there is identified the incompatibility of the skill level of alumni of higher and vocational institutes with the demands of employers
Journal number 2 ∘ Gulnazi Erkomaishvili

Digital Economy - an Innovative Tool for Economic Growth

 In the modern world, the role of digital technologies in the country's productivity and national competitiveness is increasing. Today, it is used in almost all fields of economy. The pace of e-commerce, computerized management of digital processes and digital infrastructure growth is remarkably high and it is an important tool for economic development. The digital economy is an important part of the fourth industrial revolution. It is directly related to the development of digital computer technology, which includes online services, electronic payments, internet marketing, internet advertising, internet games, etc. Sh.  For the rapid adaptation to modern economic trends and a new stage of development of the country on June 1, 2018, the Digital Economics Association (DEAG) was founded in Georgia. DEAG has clearly defined objectives and tasks that promote digital business culture, stimulate and support business environment; Investment platform preparation, capital market dev
Journal number 2 ∘ Paata KoguashviliDavid Mamukelashvili

Agricultural Cooperative Development Experience in Different Countries of the World

The existence of an efficient system of agricultural cooperatives in EU countries is related to the continuous process of long-term development. The cataclysmic changes in socio-economic formation in this process did not take place, as it happened in the countries of Eastern Europe or the former Soviet Union. In the period of crisis, agricultural cooperatives were used by the states as the means of agriculture regulation. In the period of the acute food crisis after the Second World War, many states identified the agricultural cooperative process as the most effective means of the quantitative growth of agricultural production and it was going with active state support. During the same crisis, an active propaganda campaign by the state agencies led to a rise in the number of cooperatives and intensification of their economic capabilities. Today, a perfect system of agricultural cooperatives operates in many countries around the world. The legal basis of the Italian cooperative syste
Journal number 2 ∘ Giorgi Shikhashvili

Fundamental Sources for Synergistic Understanding of Socio-Economic and Managerial Activities

Nowadays in Georgia it is very urgent to study the socio-economic development issues of the country and to set the ways to solve the problem based on the mutual understanding of synergistic, or in other words theological and secular positions.  The aim of the work is to promote the study of such issues in Georgia, as well as relevant sources and develop appropriate conclusions and recommendations for elaboration of a synergistic concept of socio-economic development of the country.   Pursuant to the purpose, the fundamental documents for synergistic development sphere are reviewed in this article: constitutional agreement (concordat) between the State of Georgia and Autocephalous Orthodox Church of Georgia; The Canon Law; Charter of Petritsoni Monastery by Grigol Bakurianisdze; Management Regulation of Autocephalous Orthodox Church of Georgia.  The relationship between the state of Georgian and the apostolic autocephalous Orthodox Church of Georgia is determined by co
Journal number 2 ∘ Mariam Kenchoshvili

Inclusive Growth-The Qualitative Innovation of Georgian Social and Economic Development Strategy

Econonmic growth is an important challenge for every country, especially for developing ones, including Georgia. Actually, economics of Georgia was increased without significant growth of the number of employed. As a response of this challenge in 2014 the Social and Economic Development Strategy of Georgia – Georgia 2020 was published aiming identification of key problems and challenges preventing development of the foundation for a long-term inclusive economic growth and improvement of welfare of the population. The social and economic development program/strategy of Georgia - “Georgia 2020”- is relevant to the world trends, Georgia is relevant to world trends, as the main goal of the strategy is identification of the preventive factors of inclusive economic growth and defining the social-economic policy for overcoming it.  Inclusive economic growth was the main direction of country economic development, the result is long-term nature based on the strategy com
Journal number 2 ∘ Nunu OvsyanikovaIrakli Arabidze

State Inspection Services and Risks for Business

At the stage of planning and implementation of  state inspection (supervision) system, the  government should conduct legal, technical and economic analysis and study the business environment. When State makes its own decision, special importance is given to share the experience in the relevant field  for implement practice. In the developing countries, at the stage of establishing effective control mechanism, supervise of inspection services is a key element to release system corruption. The business should underline the requirements of the national standards and legislation in the relevant field, and in case of necessity, resolve problems, determined by the supervising body in the specified timeframe. To achieve the goals and to protect public interests, it is necessary to coordinate the work of the Inspection Service and Business Representatives, which  covers raising awareness  of society. Business involvement in the process of development of various legi
Journal number 2 ∘ Nato KakashviliNatia Kaxniashvili

Economic Dynamics of the Last Years of the World Economy and Financial Trends of the Georgian Economy

The article reviews the substantive changes in the world economy, which greatly depends on Georgia's economic growth.  The aim and objective of the article is to consider the impact of the economic indicators on the Georgian economy. At the backdrop of the slowdown in the global economic growth, the focus is on economic growth and the financial environment of small and medium-sized economies.  In terms of attracting investments and promoting short-term economic growth, the economic policy of the last decade was successful but could not create a basis for increasing Georgia's competitiveness and long-term inclusive economic growth; The results of economic growth have not reflected on the unemployment and poverty indicators of the Georgian population.  The new economic policy envisaged by the strategy is to increase welfare by reducing unemployment, improving labor and living conditions, forming a basic social security system and developing human capital. At the same ti
Journal number 2 ∘ Keti Tskhadadze

Georgian Economy in 2003-2017

The article covers the Georgian economic overview and analysis in the years of 2003-2017, which is important in order to identify the necessary aspects for country’s economic development. As a result of global economic challenges and risks it is crucial to create, maintain and improve stable macroeconomic environment in Georgia. A number of European countries are facing problems that are associated with macroeconomic parameters such as high debt level or high debt budget deficits. Depending on the fact that the Georgian economy is fully integrated into the world economy, the world financial crisis is directly reflected on Georgia, which implies that the world’s reduced economic growth will result in reduced demand for Georgian products. The above mentioned situation will cause investors’ caution and as a result foreign direct investments will be reduced. The goal of the Georgian government is to reach the high level of economic growth, as it will attract more investme
Journal number 2 ∘ Mikheil Chikviladze

Impact of the Introduction of the Common Treasury Code into Accounting of Tax Revenues

The more difficult tax compliance is, the greater the risk of tax avoidance and vice versa. One of the key components to improve tax compliance is a simple tax payment system. Simplicity of payment is a part of the “doing business” ratings criteria. From January 2016 Georgia introduced the single treasury code. 101001000 is now the only thing taxpayers need to know to pay their taxes. This new approach has improved the previous system of tax revenue accounting and has subsequently influenced many aspects related to taxes, tax administration and revenue analysis. Before introducing single treasure code, treasury accounts for paying taxes in Georgia were detailed and had a breakdown consisting of regions, tax authorities and tax types (including sub types for each tax, differentiating many types of products and services, sanctions etc.), creating thousands of possible combinations for generating necessary code. On the one hand detailed information may seem convenient and use
Journal number 2 ∘ Ana Polodashvili

Hazelnut Production in Georgia and Its Export Potential in the EU Market

Georgia is a traditional producer country of hazelnuts. The advantages of Georgian hazelnut are: Favorable location in the Black Sea Region and low producers’ costs, but lack of modern technologies, low productivity and quality incompliance with international standards, can be considered as the main disadvantages of Georgian hazelnut. Climate conditions of our country provide good possibilities for hazelnut production. In Georgia, during the 2006-2017 years, almost 28 thousand tons of hazelnuts were produced on average. In the 2016-2017 season, hazelnut production was obviously reduced, which is connected with the appearance of Asian pest in the country. In the 2017-2018 season, world hazelnut kernel basis production accounted for 490,000 metric tones. Turkey is the leading producing country, adding up to 73% of the world share, followed by Italy, Azerbaijan and Georgia with 9, 5 and 3% respectively. Georgia is one of the biggest exporter countries in the EU market. The largest a
Journal number 2 ∘ Babulia Mgebrishvili

Impact of Changes in External Marketing Environment on the Development of Retail Trade in Georgia

In the article, retail trade is considered an important field of Georgia's economy providing delivery of wide range of products to the customers. At the same time it is also an important source of employment and income of population. Therefore, according to the author, finding new ways for further development of retailing can play a great role in the country’s economy. In order to find these ways the author analyses political, legal, demographic and economic factors in the external marketing environment of retailing enterprises. In her opinion, it is only possible for retailer work effectively if marketing strategies are based on evaluation affects of these factors. The author thinks that the political situation in Georgia nowadays is favorable for the development of retailing. She believes that general lines of the development of retailing are identified correctly and the population has the possibility to obtain products safe for their life. Retailers, at the same time, observe
Journal number 2 ∘ Maia Nikvashvil

The Causes of Conflict and their Ability to Improve their Management in Organizations

Conflicts imply the clash of the opposing tendencies in the psyche of individuals, in people and mutual relations of their formal and informal associations. In organizations conflicts manifest themselves through people’s certain behavior and actions, which often develop into meddling others' affairs. Conflicts may be taking place in the form of cooperation, competition and open fighting. The first and second forms are characterized for civilized conflicts. In the modern view of conflicts, many of them are not only permissible but also desirable. The conflict gives information about the problems of the organization and the hidden processes in the organization are revealed. Positive results of conflicts are also considered as a means of solving problems for all parties that help to improve psychological climate in the organization and to organize the workforce. Today, the methods of conflict management are classified by the following signs: Behavior of the parties in conflict, av
Journal number 2 ∘ Erekle PirveliTeona Shugliashvili

Accounting and Audit Reform in Georgia: Theoretical and Descriptive Analysis

This work was supported by Shota Rustaveli National Science Foundation of Georgia (SRNSFG) [grant number: FR17_489, Project Title: Are Georgian Private Sector Entities Engaged inFinancial Information Manipulation? Georgian government enacted the Law of Georgia on Accounting, Reporting and Auditing as of June 8, 2016. The law has required entities of first and second categories as well as Public Interest Entities (c.a. 600 entities) to report their financial statements latest on October 1st, 2018. Groups of the third and fourth categories (c.a. 83.000 entities) shall report their financial statements latest on October 1st, 2019. As the regulation towards massive transparency takes place for the first time in the country’s history, it is a unique possibility not only for data-seeking researchers (like us), but also for the regulators and standard-setters in Georgia and within the EU. Before the larger dataset enters the playing field by the end of this year and before grasping the
Journal number 2 ∘ Tetiana SobolievaYuliia Lazarenko

Intellectual Property Management in the Shift Towards Open Innovation

In recent years due to the increased interest in the practice of open innovation as a promising model of innovation process management numerous studies have been conducted devoted to the discussion of various aspects of the open innovation implementation. The growing trend towards open innovation adoption causes the need for a more open approach to the management of the intellectual property (IP). However, despite the fact that the study of organizational determinants in the open innovation collaborative projects is an area of increased interest for both academics and practitioners of innovation management a modern understanding of these aspects at the enterprise level remains incomplete and needs further research. The IP management involves the implementation of the key managerial functions, such as developing a strategy and planning measures for the protection and commercialization of intellectual property, organizing activities to create conditions for their implementation, creating
Journal number 2 ∘ Ineza Vatsadze

Study of the Attitude of Local Community towards Rural Tourism Business (The Case of Racha, Georgia)

The attitude of the local population towardsrural tourism business is one of the most important factors in the development of this direction of tourism. The study of this attitude, the main purpose of the this article, was carried out according to willingness to do rural tourism business, relevant skills and psychological readiness, as well as the ability to assess the quality of tourism services and identify harmful factor in the development of rural tourism. We used the method of sociological research (Face-to-face interview and phone interview). 174 respondents from different villages of Racha were interviewed. 75.2% of respondents have a positive attitude to the development of rural tourism business, express a desire to go into this field of activity. 42.7% of respondents have no any entrepreneurial experience, so in case of practical implementation of their will, they will need to be trained. 83.2% of applicants are aware of the potential difficulties associated with a parti
Journal number 2 ∘ Giga KikoriaSima GachechiladzeSalome Pataridze

Distance Education and E-learning in Georgia

Distance learning method in many countries is getting more and more popular. The advantage of this method is due to several factors, namely: less time spent on time and financial resources, flexibility and availability of the course, freedom of choice and mobility. The modern education system seeks to develop technological progress that is irreversible. The needs of students and pupils are rapidly changing with time, which requires modification of the education system. The distance learning method in most of the universities of Georgia does not exist or is not actively used. Although some universities have a base that can help students get an electronic knowledge, they are less informed about it. Most of the courses on the bases of the Universities do not provide the opportunity to obtain the certificate, which shows a low level of development of distance learning. This article focuses on the development of distance education, the situation in the world and in Georgia and the attit
Journal number 2 ∘ Vladimer PapavaVakhtang Charaia

Inflation and its Modifications (On the Terminological Aspect)

The traditional inflation index regrettably fails in developing countries. Some of the commodity groups do not reflect the problems of the low income population. Agrarian inflation – agflation, becomes more and more popular in economics. The paper proposes a statistical indicator munflation, which reflects price fluctuations on medication, utilities and nutrition. Additionally, for countries where import exceeds export by several times, obviously, it is necessary that price changes be calculated for imported goods and services (imflation). Keywords: Inflation, agflation, munflation, imflation JEL Codes: E31, I32, O13, P36, P46 New terms emerge in the development of economic science. This process is the result of the enrichment of this field of science, the further result of the new understanding of economic development  and the possibility for deepening research. One such phenomenon, in which a new understanding of economic processes is reflected, is inflation.As it is kn