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Journal number 1 ∘ Mirza KhidasheliNikoloz Chikhladze

COVID 19 Crisis - The Precondition of Great Reset

The 21st century began with a crisis.   First it was the 2008 Financial Crisis that led to the Great Recession. The aftermath of the crisis was not fully overcome and we have faced another crisis that erupted in the healthcare system. The COVID 19 pandemic brought the second wave (after the 2008 Financial Crisis) of global financial and economic shocks. Since 1944, we have had a global financial order shaped on the Bretton Woods Conference. The system showed solid performance till 2008, but the Financial Crisis empirically tested the existing deficiencies. In the US and other states, enormous monetary and fiscal interventions had to be done for saving the economies and the banking sectors especially.Sovereign debt had been a main source of funding for measures to maintain the economy.  From a financial perspective, the same is being done now to cope with the COVID 19 pandemic shocks. Keywords:  COVID 19, sovereign debt, financial crisis, globalization, “s
Journal number 1 ∘ Elguja Mekvabishvili

Coronomic Crisis Challenges for the World and Georgia

The economic crisis caused by the Kovid-19 pandemic proved to be the most severe test for the economies as world, so for individual countries. The crisis is still going on, but in its depth and severity it is already surpassing the global financial crisis of 2007-2009 and equating to the "Great Depression" of the 1930s. The coronomical crisis has significantly hampered the process of globalization, but there is currently no real threat for deglobalization. The negative impact of the coronomical crisis on the Georgian economy was extremely large. In 2020, the country's gross domestic product (GDP) decreased by 6.1% compared to the previous year, in January 2021, the decline in GDP was 11%. The field of tourism, which has been the main source of foreign currency in Georgia in recent years, has found itself in a particularly difficult situation.The anti-crisis activity of Georgia Government can be divided into three stages. In the first phase, the government implemented sharp limitations
Journal number 1 ∘ Joseph Archvadze

Transformation of State Function in the Post-Pandemic Period

In the history of mankind, one can count on one fingers the years with which mankind has associations with specific historical events: 1453 - the fall of Constantinople, 1492 - the discovery of America, 1789 - the beginning of the Great French Revolution. With high probability, 2020 will enter in the history of humanity as the year of the coronavirus pandemic, which has had an incredibly great impact on economic, on social and political processes almost all over the world, on interpersonal relations and on the psychological state and expectations of the latter. It should be said unambiguously that this epidemic can not be regarded as another force majeure. The COVID-19 pandemic revealed, on the one hand, the entire absurdity of the libertarian view of the omnipotence of the market and, in contrast, emphasized the importance of the stabilizing and organizing function of the state. It is Fact that humankind and its institutions and intellectual elite met with less readiness to the atta
Journal number 1 ∘ Avtandil Sulaberidze

On Formation and Development of Pandemology as an Interdisciplinary Branch of Science

The following article deals with the issue of creation of pandemology as the newest integral branch of science which is based on separate corresponding scientific disciplines. The relevance of the emergence of pandemology as a scientific discipline is supported by the fact that the emergence of new types and names of pandemics is possible. And thanks to the knowledge gained from research on pandemology, we will be better prepared for new massive infectious infections, and both demographic and other social losses will be less. On formation (establishment) of Pandemology as an Interdisciplinary branch of sciencein contrast to the existing scientific field of epidemiology, the research object of pandemology is broader and derived from the global character of pandemics. Epidemiology belongs to the sphere of medicine and as opposed to it pandemology studies not only medical field, but also the results caused by economic, demographic, sociological, psychological and other types of behaviora
Journal number 1 ∘ Giorgi Benashvili

Why Pandemic Push Changes in the Economy?

10 months gone since the outbreak of COVID-19 - novel coronavirus, which killed more than 1 million people already become the cause for a new understanding of issues related to geo-economy and geo-politics. Its own scale and spread rate, according to official data already counts around 56 millions infected people in more than 200 countries worldwide, the coronavirus has become a global pandemic. The pandemic already having a growing impact on the behavior of the world community, instead of the usual medical consequences. While still missed neither vaccine against the virus nor proven clinical methods of treatment, social distancing remains the most common and recommended way to fight against the virus. The economic crisis caused by the Covid-19 is primarily faced on the agenda of developing countries, whereas the economy is experiencing a shortage of the real sector and the negative balance of foreign trade is being balanced by attracting tourism sector and FDI. The thre
Journal number 1 ∘ Nugzar Paichadze

Growth of Labor Productivity as the Most Important Factor for Development of the Country Economy

Labor productivity is the most important economic indicator that assesses the efficiency of the main producer of society - human labor force.  Today, the main factor of the country's economic growth and raising the living standard of the population is growth of labor productivity. It is a decisive factor for the country's economic growth. On contemporary stage of the economical development it has especially great importance in the real sector of economics, as in the conditions of market relationship, there is a "transfer" of labor to   the service sector and this reduces the number of people employed in real sector. In the article the author made attempt to study by what method the indicator of the level of labor productivity in most countries of the world is calculated and, using this method, tried to calculate the indicator of the level of labor productivity in Georgia today. In almost all the countries of the world, the indicator of the level of labor productivity is
Journal number 1 ∘ Gunter Hofbauer

An Updated Approach for the Value Chain in Times of Digital Transformation

The purpose of this article is to introduce a new configuration of the value chain in view of the digital transformation. The value chain is a very important management concept. In times of digitalization this concept has to be adjusted in terms of composition and interaction of different components. The scientific approach is conceptual and analytical. To start with, the activities of value creation will be examined and rearranged. Second, the logical connection and interaction will be verified as the basis for digitalization. The scientific aim is to contribute a contemporary approach of the value chain in combination with the digital transformation to academic discussion. The substantiation for the rearrangement of activities is well based on theoretical and statistical examination.  In summary, one major conclusion can be drawn: not only activities should be analyzed for value creation, but much more the linking process. The product management process for example is considere
Journal number 1 ∘ Rati Mekvabishvili

Georgia Leads in Prosociality: Comparison to Cross-Cultural Economic Experiment

Recent experimental economic research highlights the importance of Altruism and prosociality in many economic relations. Our experiment replicates the cross-cultural public goods game experiment conducted in 16 different countries by (Herrmann, Thöni, and Gächter 2008). We find that the mean contributions in standard public goods experiment with voluntary contribution in Tbilisi participant pool appears the highest compared to 16 experiment participant pool of different countries. Moreover, our experimental results show surprisingly flat pattern of mean contributions, indicating on strong evidence of altruism and prosociality. Individual level experimental data tentatively suggests, the repeated game incentives and considerable portion of altruism seems to reinforce each other and motivate subjects' genuine generosity reputation building, as it is a distinct and esteemed character of Georgian culture. In our view, our results of strong evidence of altruism contributes to the
Journal number 1 ∘ Merab Lominadze

Privatization and Post-Communist Economic Transformation (Critical Analysis of the Experiences of Central, Eastern Europe and the Baltic States)

Privatization is a dividing line between the administrative-command system and the market economy. After the collapse of the Soviet bloc, the process of post-communist transformation began in Central, Eastern European countries and the former "Union Republics", the content and main direction of which was determined by the privatization of state property. In the post-communist transition period, privatization was characterized by both -general and specific signs. Based on the research, two groups of countries were identified. Some post-communist countries (Poland, Hungary, Czech Republic) and post-soviet country (Estonia) have successfully privatized and achieved high positive results: increased the efficiency of privatized enterprises, improved corporate governance, modernized technology, attracted foreign technology and Know-How, has been created a highly competitive environment, fiscal discipline has been raised, and so on. In countries where privatization has been flawed, the des
Journal number 1 ∘ Nino Lobzhanidze

The Competitiveness Level of Georgian Mineral Water and its Promoting Ways

The article assesses the competition and competitiveness in the mineral water sector of Georgia. Competition is analyzed according to competitiveness indexes and factor analysis. The paper examines the peculiarities of the dynamics of Georgian mineral water exports. Bibliographic research has been conducted on the issue of competition and competitiveness. Competition in the mineral water sector is assessed by the Concentration Index. The Herfindahl-Hirschman index (HHI) is calculated to determine the level of monopolization of the market. Product competitiveness is justified by calculating the Revealed Comparative Advantage Index (RCA) and the Relative Export Advantage Index (RXA). The econometric model examines the cause-and-effect relationship between competitiveness and exports and reveals a positive impact. Mineral water production is one of the leading sectors in Georgia, which significantly contributes to the economic development of Georgia. Priority for mineral water producti
Journal number 1 ∘ Ketevan Telia

Internal Competition of the Organization as a Threat to the Integrity of the Group

Competition is one of the key principles of a market economy. It is undeniable that it’s role is very important. Competition is, in fact, a powerful tool that "forces" an organization to improve its products or services. This topic, obviously, does not only apply to manufactured products and for the most part the most discussion in this topic comes about social capital. Proper distribution of staff in the workplace based on their skills is the main basis for the proper management of social capital, which ultimately, will inevitably lead the organization to the desired result. The twentieth century was marked by a strong interest in the study of human resources. A clear example of this is behavioral science and the subsequent separation of human resources as a separate field. Many behavioral techniques studies in the area of ​​organizational behavior, which once again emphasizes that the main basis of the organization is social capital. Thus, there are numerous theories on t
Journal number 1 ∘ Natiq GurbanovRauf GushkhaniEldar Guliev


Years fly and humanity, based on new geographical discoveries, the establishment of more and more commercial, economic and cultural relations between countries and peoples, is becoming more enlightened, religiously tolerant and civilized. This process, coupled with the development of science, technology and technology at the intersection of mathematics, physics of chemistry, biology, information technology and other fundamental and humanitarian disciplines that we really encounter in modern times, whether we like it or not, cultivate appearance, psychology, everyday life and the culture of us and the younger generation. In these historical conditions, people give a special place and preference to the logic of risk management in all their manifestations: in everyday life, technology, economics, in business, etc. Therefore, it was no coincidence that they came up with such relatively new sciences as marketing and management, and before them an insurance system. Keywords: Insurance mark
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Information about new book

Vladimer Papava is a Professor of Economics at the Ivane Javakhishvili Tbilisi State University, and a Senior Fellow at the Rondeli Foundation. He was the Minister of Economy of the Republic of Georgia (1994-2000) and a Rector of the Ivane Javakhishvili Tbilisi State University (2013-2016). His previous books include Necroeconomics: The Political Economy of Post-Communist Capitalism. Another book - "Becoming European:  Challenges for Georgia in the Twenty-First Century" by Professor Vladimer Papava has been published in USA. This book is a collection of electronic publications over the past 15 years. These articles are devoted to the political and economic problems of Post-Communist Georgia in the XXI century. For Georgia, even before the collapse of the USSR, and especially in the last years of its existence, the priority was an Euro-Atlantic orientation. Georgia's European path of development has not been an easy one. The formation of an Europ
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Dmitry Sorokin, a foreign member of the journal "Economics and Business" editorial board, prominent Russian economist, Doctor of Economic Sciences, Professor, Corresponding Member of the Russian Academy of Sciences, has passed away. D. Sorokin was born on January 1, 1946 in Moscow. Graduated from the Moscow Institute of Economics and Statistics, worked as Head of the Department at the Institute of Economics of the Russian Academy of Sciences (1988-2006), First Deputy Director (2006-2014), and from 2015 until his death he was a Head of “Macroeconomic Regulation“ Department, Vice-Rector for Science and Scientific Supervisor of the University of Finance of the Russian Federation. Most recently he led the Department of Economic Theory. Since 2014 D. Sorokin was the Chief-Editor of the journal “Financial University Bulletin”. Professor Dmitry Sorokin made a significant contribution to the development of Russia's social-economic development strategy. D. Sorokin was