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Journal number 4 ∘ John F. Tomer

Metaphors for the Evolution of the American Economy: Progressing from the Invisible and Visible Hands to the Humanistic Hand

The first part of this paper considers how three important metaphors can help us understand the past progress of the American economy. First is Adam Smith’s “invisible hand” metaphor that helps explain how the market economy functioned inthe mid to late 18th century. Second is Alfred Chandler’s “visible hand” metaphor thatexplains about the relatively decreased importance of markets and the increased importance of managerial decision making in the allocation of economic resources during the late 19th century and the first half of the 20th century. Third is RichardLanglois’ “vanishing hand” metaphor that he used to characterize the significant changes occurring in the American economy’s functioning from the late 20th to the early 21st century. Taken together these three metaphors help explain how the American economy’s predominant functioning has changed as the economy has transitioned from one stage to another. The seco
Journal number 4 ∘ Elguja Mekvabishvili

Economic Metaphors that Lead Us to Interesting Conclusions

Recently a member of the editorial board of our Journal, Acad. Lado Papava, offered me, as editor-in-chief, an interesting idea: to publish Georgian translations of articles written on topical problems of well-known or relatively unknown Western economists in the journal periodically. The first step in implementing the idea was the publication of Georgian translation of the article of the prominent American economist P. Krugman in the third issue of the journal "Economics and Business," with commentary by L. Papava. In the present issue, we offer our readers the article by John F. Tomer, Manhattan College Emeritus Professor, which, we think is interesting in several respects.  First, this is an article of "purely" theoretical and methodological content, the kind of work which our readers are less pampered with. Secondly, the article contains many original ideas, and thirdly, the views developed therein may be inconsistent with the main postulates of the modern mainstream neoclas
Journal number 4 ∘ Teimuraz ShengeliaAlexandru Gribincea

On Overcoming the Contradiction between Global Economic Development and Environmental Pollution

Currently a new vector for the development of the world economy is being crystallized. An impetus for growth has been provided by accelerated competition, global economic crises, climate changes on the globe. Between the desire for economic growth and its consequences lie ecological contradictions. Ecology has struggled with the desire for economic development as well as with political, social and cultural issues. The consequences of the contradictions are highlighted by the establishment of environment-oriented international economic policies and instruments, by implementation of legislative support, by financial investments in ecological and innovation projects in the field. Every country should take into account orientation of development vector, applying predominantly economic incentives to sustainable economic development. The use of previous measures and policies have not convinced all states and have not led to positive consequences. The measures applied are not enough to change
Journal number 4 ∘ Joseph Archvadze

Government Debt as an Important Factor for the Economy Growth (On the example of Georgia after 2000-s)

Loan and debt - are the most important economic categories of market economy. By means of a selected loan, the resources of the economy and its individual segments are reconciled, on a principle of equilibrium, there are transfer  of excessive resources to those areas and segments of the economy where their deficits are observed. As a result, economic processes, growth dynamism and, ultimately, the well-being of the entire society will accelerate.  As a rule, borrowed money from the state debt creates additional financial resources, mainly covering the budget deficit, improving municipal and road infrastructure, energy sector development, etc. Private sector loans serve to expand relevant business activity. Overall, both forms of lending - public and private –if they are effectively used, have a positive impact on the country's economy, its individual sectors or regions, on macroeconomic growth and ultimately on the welfare of the population. Despite the widespread as
Journal number 4 ∘ Paata KoguashviliNikoloz Chikhladze

Food Independence is a State Necessity

Georgia has long been regarded as one of the exemplary countries in the production and consumption of wheat. To date, in the world there are listed and registered 23 cultural and 4 wild species in the wheat botanical genus. Of these, 14 cultural species of them are presented in Georgia. In the world there has been observed a steady decline in grain production and prices over the past two decades: the international price of 1 ton of wheat has increased from $80.4 to $173.4 in the last four decades. The era of cheap food in the world is over. Therefore, grain as a strategic commodity is not only a key guarantee of economic independence for each country, but also a powerful tool for political influence on grain importing countries. Due to the current situation, countries with relevant land resources, based on the generally recognized principles of food self-sufficiency, make every effort to develop grain farming on the ground, regardless of whether they have a comparative or an absolute
Journal number 4 ∘ Eka Lekashvili

The Digital Economy: The Challenges of Science and Politics

What should economic policy makers consider in process of developing economic strategies to tackle the challenges of the digital revolution and to take advantage of its progressive outcomes, and what are the threats to technological development that will allow industry 4.0 to have a negative impact on economic policy? To answer these questions, we aimed to conduct a bibliographic study based on the of modern advanced scientific papers and to systematize the expectations and challenges of the economic development of the digital economy using induction and deduction methods. The results of the study will help us to foresee the future concept of economic policy. During the research process, we selected the most recent and highly rated scientific papers, identified the results of the research using the induction method, and finally finalized the grouping of the results of the analyzed analyzes - systematization. In the research process, we have studied the works of Kovaks (2018), Nguyen e
Journal number 4 ∘ Zaur PutkaradzeJambul Abuladze

Family Farms and their Development Prospects in Adjara

In the article, redistribution of arable land and perennial planting plots among households of Ajara Autonomous Republic is discussed. Also, based on data analysis, potential of primarily agricultural production in the condition of land scarcity and high level of land fragmentation is considered. In particular, based on database of Agriculture and Rural Development Agency’s program ‘’To promote spring work 2016 of small farmers’’, in Autonomous Republic of Ajara, 31 202 households own 8 406 ha arable land (average 0.27 ha per household). At the same time 54 701 households own 14 839 ha perennial plantings (average 0.27 ha per household). Accordingly, small households (with exception of citrus plantations and relatively big household farms) face the situation when they are not in the position to market their agricultural produce because of small volume of production, low level of competitiveness and lack of logistical support. According to arable land owne
Journal number 4 ∘ Tsotne Iashvili

Key Aspects of Green Economy and Its Development Prospects in Georgia

(This work was supported by Shota Rustaveli National Science Foundation (SRNSF) [PHDF-18-1264. Impact of Inequality on Economic Growth. Case of Georgia).  For the last several decades, the issues of Green Economy have been receiving a lot of attention and more and more countries are trying to make it one of the main strategies for their development. It should be mentioned that, Green Economy does not necessary mean only environmental protection issues or an attempt to do less harm to the environment. The Green Economy is one of the means of economic growth, and it has a great impact on macroeconomic indicators. There are spheres where it is most effective and spheres where it is not advisable to use it. The article will discuss the prospects for Green Economy in Georgia and consider its macroeconomic impacts, outlooks and potential challenges along the way.   Keywords: Green economy, green growth, macroeconomy, green economy in Georgia. JEL Codes: O13, Q52, Q56,
Journal number 4 ∘ Quji Bichia

How Does Choices Made by Others Affect Individual’s Economic Decisions (Experimental Study)

Experimental research has shown that people under uncertainty often observe information about choices of others in a similar situation and resort to group behavior. Human cognitive resources are limited, so they exhibit not fully but myopic rational behavior. In certain situations, the method of decision-making heuristics, called counting heuristic is observed. Group behavior can emerge when additional information is easily accessible and inexpensive and when individuals trust the ability of others to make rational decisions. Group behavior, arising by imitation of others, is not uncommon in situations in which decision-making is made with a lack of information. Observing others reduces the level of uncertainty, but sometimes it leads to undesirable results. Group behavior is the result of a kind of externality that influences the perceptions of individuals through the information received. This phenomenon is observed in consumers of certain products, security analysts, general fund m
Journal number 4 ∘ Vasil Khizanishvili

The Analysis of the Ethic-Economic Sides of Loan Interest Using in Modern Islam

Islam gives for the worldly life the positive value system. Ethics of Islamic economics is in agreement with the West-Christian attitudes towards the individual ethical sphere. It is to ask how much define ethics of Islamic economics principles factual behaviors of Muslims, because the basic determinable factor of the economic backwardness of Near East Islamic countries represents loan interest prohibition. The Quran forbids historically usury (riba). Against this, it supports on the joint-stock(share) principle based temporal assignment of own capital with a beforehand agreed part of win or loss. The supporters of Islamic financial system seem in this primary interest-yielding alternative form of the money loans. By such position they hinder valuable participation of the process of Islamic economic modernization and Islamic financial systems in globalization process. Keywords: Islam, Islam and Christianity, Ethics of Islamic Economics, Koran and usury (Reba). JeL Codes: H80, H81, H8
Journal number 4 ∘ Ushangi Samadashvili

Sustainability and the Role of SMEs in Contemporary Economics Georgia

The document clarifies what is meant by "small and medium-sized businesses," because in the modern world economy, including Georgia, there is no single definition of SMEs, which causes some confusion. A comparative analysis of the parameters of SMEs in Georgia and the corresponding indicators in the EU with the old and new methodology is given. It was shown that the essence and importance of small business lies in its functions, the priority of which in terms of relevance varies in time and space. It chronologically analyzes the transition of Georgia from a market economy to a transitional SME. Keywords: Small, medium and large business, old and new methodology, pottery, Applied, periodic period. JEL Codes: M20, M21, M22 მცირე და საშუალო ბიზნესის არსი და როლი თანამედროვე საქართველოს ეკონომიკაში ნაშრომში დაზუსტებული
Journal number 4 ∘ Nino Janelidze

Social Entrepreneurship as a New Field of Research

The scientific conceptualization of social entrepreneurship began to form only in the 1990s. Some practical experience and theoretical materials on social entrepreneurship have already been accumulated in the late 20th and early 21st centuries. In last years the rapid growth of publications on social entrepreneurship in leading international peer-reviewed journals demonstrates the growing interest for researching this field. However, social entrepreneurship, as well as areas of new research, cannot be shaped by insufficient legitimacy and theoretical boundaries and indefinite content. The need to develop social entrepreneurship theory, which is at the stage of formation, is an important task for the development of social entrepreneurship itself. Social entrepreneurship, as a socio-economic and organizational event, has become the focus of researchers, business representatives and the state in recent years. Social entrepreneurship is a form of economic activity aimed at solving the pro
Journal number 4 ∘ Simon GelashviliMarine MindorashviliNino Maghradze

The Demographic Structure of the Population Plays a Significant Role in the Socio-Economic Development of the Country

The demographic structure of the population plays a significant role in the socio-economic development of the country. Given this importance, it is necessary to study demographic events and processes, as well as public opinion, knowledge and awareness of these issues. Quantitative and qualitative indicators of demographic knowledge level of students in Georgia were obtained from sampling statistical analysis by using SPSS software. Many general and special indicators (ratios, means and variations) were calculated and evaluated during the research process. The analysis revealed students' different demographic mood according to gender, age, ethnicity and other groups. According to the results of the survey, 22.8% of respondents find demographic problems most challenging in Georgia. Majority of them (67.0%) think  that the demographic situation in the country is alarming and needs to be corrected, 28.9% consider the situation catast
Journal number 4 ∘ Tamaz Gogoladze

XVII-XVIII Centuries Georgian Merchants in Safian Iran (According to the inscriptions on Georgian and Georgian-Armenian tombstones preserved at Armenian Church in Ispahan)

As it is known, Georgian-Persian relations revived in the period of Safavid Iran, more specifically, in the XVII-XVIII centuries. Of particular interest is the Georgian-Persian trade-economic relationship of that time. Tbilisi - the capital of the Kingdom of Kartli, as one of the trading centers and transit cities of the Transcaucasia, was economically particularly associated with the Iranian cities. The trade route from Tbilisi to Persia went to Kazakhstan-Ganja and Lore-Bambak. The first place in the close trade-economic relationship with the Kingdom of Kartli had exactly the Safavid Iran, from where precious fabrics, silk, salt, alum, leather, etc. were brought to Kartli. In its turn, the Kingdom of Kartli was supplying Iran with raw silk. In addition, wool and cotton fabrics were exported from Kartli. Various Georgian wines were also exported from Tbilisi to Armenia, Midia and Ispahan to meet the needs of the Persian Shah. Georgian and foreign sources provide rich material on how
Journal number 4 ∘

IV International Scientific Conference "Challenges of Globalization in Economics and Business" (Tbilisi, 1-2 November, 2019)

https://www.tsu.ge/data/file_db/economist_faculty/konf%20IV.pdf The 4th International Scientific Conference "Challenges of Globalization in Economics and Business" was held on November 1-2, 2019 at the Faculty of Economics and Business of Ivane Javakhishvili Tbilisi State University. The conference was attended by scientists from both Georgia and other countries: Germany, Scotland, Poland, Republic of Latvia,  Lithuania, Ukraine, Slovakia, Romania, Belarus, Kyrgyzstan, Azerbaijan.              On November 1, the plenary session was opened at the first building of the University by the Dean of the Faculty of Economics and Business of TSU, Professor Giorgi Gaganidze,  TSU Rector Giorgi Sharvashidze, Chairman of the Committee of the Parliament of Georgia in Education, Science, Culture and Sport of Georgia Mariam Jashi, Chairman of the Committee of the Parliament of Georgia in Sectoral Economy and Economic Policy Roman Kaku