World Economy: Economic Implications of the COVID-19 Crisis and Prospects for Recovery

PDF version Global trends and prospects of economic development have been studied on the grounds of an analysis of statistical data of Georgia, developed and developing countries against the background of a crisis caused by COVID-19 pandemic. It is an analysis of perturbations caused by COVID-19, along with their impact on the economic growth, foreign trade, balance of payments, public debt, current account deficit, parameters of the State Budget, inflation, employment, performance of the financial sector, sustainability, etc. Article also presents a discussion on wide-scale fiscal and monetary anti-crisis measures implemented in various countries, along with a possible outcome of such measures in a short- to medium-term horizon, their impact on macroeconomic and monetary stability of individual countries, regions and world, economic growth and welfare of people. Article presents a comparative analysis of the economic impact caused by the pandemic based on the rich statistical

Journal number 3 ∘ Eter Kharaishvili ∘ Ia Natsvlishvili ∘ Gulnazi Erkomaishvili ∘ Manana Lobjanidze ∘

Food Transportation: Modern Challenges and Policy Priorities in Georgia

The paper evaluates the importance of transportation for economic growth and development of food markets. Delays in transportation of agro-food caused by COVID-19 pandemic are analyzed and logistical problems are identified. Theoretic approach of transportation policy and rates are evaluated based on bibliographic research. It is substantiated, that effective transportation of food will play an important role in development of food markets. Therefore, by identifying challenges in transportation system and developing effective policy tools, structural adjustment of food markets according to the changes in demand will be possible. Challenges in food transportation sector has been identified by „urgency-impact quality“ matrix: weak policy support, legislative vacuum about standards of transportation and food markets, inconsistency of regulatory laws to the regulations of other countries, low level digitalization of transportation, policy for maintaining food pricesin case

Journal number 3 ∘ Marina Chavleishvili ∘

Blueberry Production Opportunities in Georgia

There is a growing trend in demand for berry crops, including blueberries, worldwide. The European Union, Russia, China, the United Arab Emirates and other countries stand out in this regard. Today, the blueberries produced in the world do not meet the market demand. Exports of raw blueberries to the EU have doubled in the last ten years. However, in the wake of the growing market, the resources available in many regions are not yet fully utilized. It was found out that Georgia has one of the best soil-climatic conditions for the production of blueberries, which allows obtaining quality raw materials in accordance with international standards. Thus, the current situation makes the analysis of blueberry production and its future development even more relevant. It is important to assess the potential of the country in this field in order to determine the parameters of production efficiency, increase the export potential and raise awareness. The paper presents the opportunities for blue

Journal number 3 ∘ Nino Nadibaidze ∘

Agricultural Risk and Risk Management Strategies

Improving agricultural efficiency in a diverse agricultural landscape and developing new risk management tools are critical to the viability and sustainability of the sector. In addition to traditional risks, farmers face challenges from climate change, market expansion, rapid price changes and globalisation. The current pandemic and the pandemic crisis have shown the importance of a holistic approach to agricultural risk management. The article gives a systematisation of the risks for the farmer and presents the mechanisms for assessing and managing them. Risks are divided into 2 broad groups according to their origin - internal and external risks. Internal risks include production, human resources, financial and physical risks, while farming is independently affected by political, market, price and other agriculture-related risks. Risk identification is the first stage of risk management, followed by the stages of risk assessment, risk management and risk control. In practice

Journal number 3 ∘ Nugzar Todua ∘ Charita Jashi ∘ Ekaterine Urotadze ∘

New Approaches to Higher Education Marketing (Conceptual Review)

Education is a key factor in the development of any society. The formation of modern approaches and vision of teaching in higher education institutions is a necessary requirement for their involvement in the process of internationalization. The current global processes and integration into the European higher education system pose significant challenges to Georgian universities. Participation in the European educational space requires new marketing approaches, which must be taken into account to ensure the competitiveness of universities. The use of the latest approaches to marketing strategies allows universities to determine the optimal number of students, determine the levels of student satisfaction with the services offered, improve the quality of teaching and diversify educational services. At the same time, it should be taken into account that the competition in the market of educational services is intensified, new technologies are introduced, and the level of student awareness

Journal number 3 ∘

Formation of Future Foresight-Competencies

Nowadays globally, when discussing the main goals of education the focus is actively turned towards the competency approach in the training of the future professionals, which is considered within the context of the Bologna Process. Countries participating in the said process cite competencies as a principal criterion that determines how well are young professionals prepared for instability of their working conditions or social life. Solution to the said problem lies in introduction of the foresight competence model to the educational activity of the active professionals and building foresight capacity of the future professionals during their basic vocational training. The said approach allows for the development of a model for skills and competencies of the professionals of a specific field as well as their professional future, which will ultimately contribute to the growth of the national economy and the development of the country. In our times, forming foresight competence ca

Journal number 3 ∘ Maya Gogokhia ∘

On the Issue of Investment Analysis of the Securities Market

The development of the securities market is associated with the country's investment climate, which is determined by the investment potential and the level of investment risk. Increased investment in the economy – is a vital task for Georgia, at the same time, the potential for savings by the population is small due to low incomes. At the same time, the population does not trust the institutions of the stock market, therefore, saving money is a big part of the savings (the instrument of collection is the US dollar). Due to the specifics of the Georgian securities market, the variety of investment is limited, improper development of the corporate securities market, low liquidity and guarantees of joint stock companies. The role of the regulator represented by the National Bank is not homogeneous. The refinancing rate does not ensure the redistribution of fun

Journal number 3 ∘ Rezo Manvelidze ∘ Salome Japaridze ∘

Some Basics of Forming Marine-Transportation Clusters

Based on global economic tendencies and international experience, in this article cluster is discussed as one of the priorities in the process of forming and realization of regional strategies. Exactly the cluster gives the opportunity to accelerate the developing of branch/region. Developing the effective clustering model by country helps to develop technological innovations, new models of business managing, simple adaptation of new technologies in market, management, marketing. There are priorities of integration of Georgian economy and its involvement in international processes. It is proved that clusterization of logistics and operations connected with them will cause multifunctioning and more productiveness, integration of different investments will lead to effective functioning of logistic centres. Existing the free economic zone, “Porto Franko”, Seaport, multifunctioning terminals, railway network, air and land infrastructure-all of these create extra basis of clus

Journal number 3 ∘ Teona Tavdishvili ∘

Prospects for the Use of Solar Energy in Georgia

The article presents research on the importance of solar energy, potential and investment opportunities in Georgia. Strengthening the electricity sector and energy independence is one of the main goal of development-oriented countries. The only way to replace imported electricity and satisfaction of increased demand is to increase electricity production. Solar energy as an inexhaustible resource is an actual issue in the world and more people are consuming it. However, in Georgia consumer awareness is rising about solar energy. The aim of the study was to study the electricity market in Georgia, assess the current situation and discuss about solar energy as an investment opportunity. The paper is based on official statistics, scientific articles and research results conducted in the energy sector. As Georgia continues its economic development the need for energy will continue to grow. If Georgia does not meet this challenge it may face an energy shortage in the next ten years.

Journal number 3 ∘ Ineza Gagnidze ∘ Merab Khokhobaia ∘ Vasja Roblek ∘ Nenad N. Petrović ∘

Challenges of Tourism Cluster Formation in Racha Region (Georgia)

Racha, one of the Georgia's beautiful regions, faces many challenges. Due to the existing challenges (population structure, size, and ageing) in our opinion, tourism can be considered as a vital industry that can enhance the speedy recovery of the local economy. As a destination inhabited since the Stone Age, Racha may again become an interesting place of discoveries. Due to the region's potential, many types of tourism can be developed in Racha: ethnographic, archaeological, speleological, health-recreational, religious, rural, wine, gastronomic, adventure, and others. It should be noted that the feedback from the respondents and the SWOT analysis of tourism development in the Racha region are fully consistent with each other. Therefore, the paper examines and presents a cluster analysis of tourism based on a systemic vision of the field. In the article, we also wish to highlight the opportunities for rural tourism development that the EU also offers to the pre-accessi

Journal number 3 ∘ Grigol Modebadze ∘

Damage and Loss Assessment in Agriculture Sector Caused by Hazards (Georgian Case Study)

Natural and man-made hazards may disrupt and affect negatively agricultural sector. 0Damage and loss caused by disasters which are likely to become more frequent and severe due to Climate Change effects, need to be assessed, because precise sector-specific disaster losses and damage data are a vital indication for disaster risk reduction and policy-making. This paper responds to the necessity of creation a unified methodology for the damage and loss assessment in Agriculture Sector in Georgia. The paper introduces a comprehensive formula for damage assessment in agriculture sector. Assessment formulas has been designed to be compliant to the Sendai Framework requirements while enforcing the assessment of damages in agriculture with a multi-temporal dimension. The proposed methodology differs from other well know methodologies (ECLAC- DaLA, FAO and UNSDR methodologies) by excluding certain aspects and adding relevant variables (e.g. yield per hectare by region, irrigation and varieties;

Journal number 3 ∘ Murman Margvelashvili ∘ Ilia Urgebashvili ∘ Shorena Kashibadze ∘

Value of Lost Load for Georgian Economy

The article estimates the economic loss caused by electricity supply interruption for Georgian economy. To do so, the Value of Lost Load (VoLL) is used, which is an internationally accepted economic indicator that estimates the average cost of 1 kilowatt-hour (kWh) of unsupplied electricity. Since electricity is an intermediate commodity, the effect of supply interruption varies for categories of consumers. Therefore, it is necessary to estimate this loss by sectors. Although the data needed to estimate VoLL according to the methodology proposed for European Union is not available in Georgia, we use another methodology for which the reliable data is available. With the data collected by the National Statistics Office of Georgia (Geostat), the production function approach is used to estimate VoLL for different sectors, divided according to the NACE Rev.2 classification. According to 2019 data, 1 kWh of undelivered electricity, on average, causes an overall loss of 3.6 GEL for different

Journal number 3 ∘ Amiran Berdzenishvili ∘ Kakha Ketsbaia ∘

On the Subject of Sociology, Critical Analysis of Western Sociology by Academician Paata Gugushvili

The article deals with the issue of the subject matter and scientific status of sociology according to critical reception of definitions of western sociology by P. Gugushvili. It is emphasized that in spite of multiplicity and variety of opinions, the problem of subject matter of sociology is still unsolved. Accordingly, views of a famous Georgian scholar and one of the path-breakers of sociology in Georgia P. Gugushvili on this particular issue, deserve close attention. In definitions of the subject matter of sociology given by western scholars it is stressed that sociology studies society but nothing is said what the subject matter itself is. Stating that sociology scientifically studies society, social groups and relations, expresses only our cognitive-scholarly attitude to the objects of study but says nothing about a particular subject matter of sociology as a science. Such is academician P. Gugushvili’s attitude to the subject matter of sociology that should be a condition

Journal number 3 ∘ Demur Sitchinava ∘ Murtaz Maghradze ∘ Rusudan Seturidze ∘ Shorena Davitaia ∘ Zviad Sigua ∘

Problems of Distribution and Use of State Education Grants in Contemporary Georgia

The article is dedicated to the problems of distribution and use of state education grants in higher education in contemporary Georgia. It analyzes the existing systems and approaches to funding tuition fees at universities in the former Soviet Union, Europe and the United States. Shortcomings of the current rule on the distribution and use of state grants are shown: low motivation to study, social injustice in the education process, unrealistic autonomy of universities and faculties in the distribution and use of state grants, a high likelihood of committing a crime by students who miss lecture-seminars and others. Various possible options for tuition reimbursement are analyzed. The views of education system experts and leading specialists in the field of education and science on the issue are discussed. An authorial model for the distribution and use of the state education grant is proposed and the advantages of introducing this model over the existing model are highlighted. The fo

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 3 ∘ Irakli Kovzanadze ∘ World Economy: Economic Implications of the COVID-19 Crisis and Prospects for Recovery PDF version Global trends and prospects of economic development have been studied on the grounds of an analysis of statistical data of Georgia, developed and developing countries against the background of a crisis caused by COVID-19 pandemic. It is an analysis of perturbations caused by COVID-19, along with their impact on the economic growth, foreign trade, balance of payments, public debt, current account deficit, parameters of the State Budget, inflation, employment, performance of the financial sector, sustainability, etc. Article also presents a discussion on wide-scale fiscal and monetary anti-crisis measures implemented in various countries, along with a possible outcome of such measures in a short- to medium-term horizon, their impact on macroeconomic and monetary stability of individual countries, regions and world, economic growth and welfare of people. Article presents a comparative analysis of the economic impact caused by the pandemic based on the rich statistical Journal number 3 ∘ Eter Kharaishvili ∘ Ia Natsvlishvili ∘ Gulnazi Erkomaishvili ∘ Manana Lobjanidze ∘ Food Transportation: Modern Challenges and Policy Priorities in Georgia The paper evaluates the importance of transportation for economic growth and development of food markets. Delays in transportation of agro-food caused by COVID-19 pandemic are analyzed and logistical problems are identified. Theoretic approach of transportation policy and rates are evaluated based on bibliographic research. It is substantiated, that effective transportation of food will play an important role in development of food markets. Therefore, by identifying challenges in transportation system and developing effective policy tools, structural adjustment of food markets according to the changes in demand will be possible. Challenges in food transportation sector has been identified by „urgency-impact quality“ matrix: weak policy support, legislative vacuum about standards of transportation and food markets, inconsistency of regulatory laws to the regulations of other countries, low level digitalization of transportation, policy for maintaining food pricesin case Journal number 3 ∘ Marina Chavleishvili ∘ Blueberry Production Opportunities in Georgia There is a growing trend in demand for berry crops, including blueberries, worldwide. The European Union, Russia, China, the United Arab Emirates and other countries stand out in this regard. Today, the blueberries produced in the world do not meet the market demand. Exports of raw blueberries to the EU have doubled in the last ten years. However, in the wake of the growing market, the resources available in many regions are not yet fully utilized. It was found out that Georgia has one of the best soil-climatic conditions for the production of blueberries, which allows obtaining quality raw materials in accordance with international standards. Thus, the current situation makes the analysis of blueberry production and its future development even more relevant. It is important to assess the potential of the country in this field in order to determine the parameters of production efficiency, increase the export potential and raise awareness. The paper presents the opportunities for blue Journal number 3 ∘ Nino Nadibaidze ∘ Agricultural Risk and Risk Management Strategies Improving agricultural efficiency in a diverse agricultural landscape and developing new risk management tools are critical to the viability and sustainability of the sector. In addition to traditional risks, farmers face challenges from climate change, market expansion, rapid price changes and globalisation. The current pandemic and the pandemic crisis have shown the importance of a holistic approach to agricultural risk management. The article gives a systematisation of the risks for the farmer and presents the mechanisms for assessing and managing them. Risks are divided into 2 broad groups according to their origin - internal and external risks. Internal risks include production, human resources, financial and physical risks, while farming is independently affected by political, market, price and other agriculture-related risks. Risk identification is the first stage of risk management, followed by the stages of risk assessment, risk management and risk control. In practice Journal number 3 ∘ Nugzar Todua ∘ Charita Jashi ∘ Ekaterine Urotadze ∘ New Approaches to Higher Education Marketing (Conceptual Review) Education is a key factor in the development of any society. The formation of modern approaches and vision of teaching in higher education institutions is a necessary requirement for their involvement in the process of internationalization. The current global processes and integration into the European higher education system pose significant challenges to Georgian universities. Participation in the European educational space requires new marketing approaches, which must be taken into account to ensure the competitiveness of universities. The use of the latest approaches to marketing strategies allows universities to determine the optimal number of students, determine the levels of student satisfaction with the services offered, improve the quality of teaching and diversify educational services. At the same time, it should be taken into account that the competition in the market of educational services is intensified, new technologies are introduced, and the level of student awareness Journal number 3 ∘ Formation of Future Foresight-Competencies Nowadays globally, when discussing the main goals of education the focus is actively turned towards the competency approach in the training of the future professionals, which is considered within the context of the Bologna Process. Countries participating in the said process cite competencies as a principal criterion that determines how well are young professionals prepared for instability of their working conditions or social life. Solution to the said problem lies in introduction of the foresight competence model to the educational activity of the active professionals and building foresight capacity of the future professionals during their basic vocational training. The said approach allows for the development of a model for skills and competencies of the professionals of a specific field as well as their professional future, which will ultimately contribute to the growth of the national economy and the development of the country. In our times, forming foresight competence ca Journal number 3 ∘ Maya Gogokhia ∘ On the Issue of Investment Analysis of the Securities Market The development of the securities market is associated with the country's investment climate, which is determined by the investment potential and the level of investment risk. Increased investment in the economy – is a vital task for Georgia, at the same time, the potential for savings by the population is small due to low incomes. At the same time, the population does not trust the institutions of the stock market, therefore, saving money is a big part of the savings (the instrument of collection is the US dollar). Due to the specifics of the Georgian securities market, the variety of investment is limited, improper development of the corporate securities market, low liquidity and guarantees of joint stock companies. The role of the regulator represented by the National Bank is not homogeneous. The refinancing rate does not ensure the redistribution of fun Journal number 3 ∘ Rezo Manvelidze ∘ Salome Japaridze ∘ Some Basics of Forming Marine-Transportation Clusters Based on global economic tendencies and international experience, in this article cluster is discussed as one of the priorities in the process of forming and realization of regional strategies. Exactly the cluster gives the opportunity to accelerate the developing of branch/region. Developing the effective clustering model by country helps to develop technological innovations, new models of business managing, simple adaptation of new technologies in market, management, marketing. There are priorities of integration of Georgian economy and its involvement in international processes. It is proved that clusterization of logistics and operations connected with them will cause multifunctioning and more productiveness, integration of different investments will lead to effective functioning of logistic centres. Existing the free economic zone, “Porto Franko”, Seaport, multifunctioning terminals, railway network, air and land infrastructure-all of these create extra basis of clus Journal number 3 ∘ Teona Tavdishvili ∘ Prospects for the Use of Solar Energy in Georgia The article presents research on the importance of solar energy, potential and investment opportunities in Georgia. Strengthening the electricity sector and energy independence is one of the main goal of development-oriented countries. The only way to replace imported electricity and satisfaction of increased demand is to increase electricity production. Solar energy as an inexhaustible resource is an actual issue in the world and more people are consuming it. However, in Georgia consumer awareness is rising about solar energy. The aim of the study was to study the electricity market in Georgia, assess the current situation and discuss about solar energy as an investment opportunity. The paper is based on official statistics, scientific articles and research results conducted in the energy sector. As Georgia continues its economic development the need for energy will continue to grow. If Georgia does not meet this challenge it may face an energy shortage in the next ten years. Journal number 3 ∘ Ineza Gagnidze ∘ Merab Khokhobaia ∘ Vasja Roblek ∘ Nenad N. Petrović ∘ Challenges of Tourism Cluster Formation in Racha Region (Georgia) Racha, one of the Georgia's beautiful regions, faces many challenges. Due to the existing challenges (population structure, size, and ageing) in our opinion, tourism can be considered as a vital industry that can enhance the speedy recovery of the local economy. As a destination inhabited since the Stone Age, Racha may again become an interesting place of discoveries. Due to the region's potential, many types of tourism can be developed in Racha: ethnographic, archaeological, speleological, health-recreational, religious, rural, wine, gastronomic, adventure, and others. It should be noted that the feedback from the respondents and the SWOT analysis of tourism development in the Racha region are fully consistent with each other. Therefore, the paper examines and presents a cluster analysis of tourism based on a systemic vision of the field. In the article, we also wish to highlight the opportunities for rural tourism development that the EU also offers to the pre-accessi Journal number 3 ∘ Grigol Modebadze ∘ Damage and Loss Assessment in Agriculture Sector Caused by Hazards (Georgian Case Study) Natural and man-made hazards may disrupt and affect negatively agricultural sector. 0Damage and loss caused by disasters which are likely to become more frequent and severe due to Climate Change effects, need to be assessed, because precise sector-specific disaster losses and damage data are a vital indication for disaster risk reduction and policy-making. This paper responds to the necessity of creation a unified methodology for the damage and loss assessment in Agriculture Sector in Georgia. The paper introduces a comprehensive formula for damage assessment in agriculture sector. Assessment formulas has been designed to be compliant to the Sendai Framework requirements while enforcing the assessment of damages in agriculture with a multi-temporal dimension. The proposed methodology differs from other well know methodologies (ECLAC- DaLA, FAO and UNSDR methodologies) by excluding certain aspects and adding relevant variables (e.g. yield per hectare by region, irrigation and varieties; Journal number 3 ∘ Murman Margvelashvili ∘ Ilia Urgebashvili ∘ Shorena Kashibadze ∘ Value of Lost Load for Georgian Economy The article estimates the economic loss caused by electricity supply interruption for Georgian economy. To do so, the Value of Lost Load (VoLL) is used, which is an internationally accepted economic indicator that estimates the average cost of 1 kilowatt-hour (kWh) of unsupplied electricity. Since electricity is an intermediate commodity, the effect of supply interruption varies for categories of consumers. Therefore, it is necessary to estimate this loss by sectors. Although the data needed to estimate VoLL according to the methodology proposed for European Union is not available in Georgia, we use another methodology for which the reliable data is available. With the data collected by the National Statistics Office of Georgia (Geostat), the production function approach is used to estimate VoLL for different sectors, divided according to the NACE Rev.2 classification. According to 2019 data, 1 kWh of undelivered electricity, on average, causes an overall loss of 3.6 GEL for different Journal number 3 ∘ Amiran Berdzenishvili ∘ Kakha Ketsbaia ∘ On the Subject of Sociology, Critical Analysis of Western Sociology by Academician Paata Gugushvili The article deals with the issue of the subject matter and scientific status of sociology according to critical reception of definitions of western sociology by P. Gugushvili. It is emphasized that in spite of multiplicity and variety of opinions, the problem of subject matter of sociology is still unsolved. Accordingly, views of a famous Georgian scholar and one of the path-breakers of sociology in Georgia P. Gugushvili on this particular issue, deserve close attention. In definitions of the subject matter of sociology given by western scholars it is stressed that sociology studies society but nothing is said what the subject matter itself is. Stating that sociology scientifically studies society, social groups and relations, expresses only our cognitive-scholarly attitude to the objects of study but says nothing about a particular subject matter of sociology as a science. Such is academician P. Gugushvili’s attitude to the subject matter of sociology that should be a condition Journal number 3 ∘ Demur Sitchinava ∘ Murtaz Maghradze ∘ Rusudan Seturidze ∘ Shorena Davitaia ∘ Zviad Sigua ∘ Problems of Distribution and Use of State Education Grants in Contemporary Georgia The article is dedicated to the problems of distribution and use of state education grants in higher education in contemporary Georgia. It analyzes the existing systems and approaches to funding tuition fees at universities in the former Soviet Union, Europe and the United States. Shortcomings of the current rule on the distribution and use of state grants are shown: low motivation to study, social injustice in the education process, unrealistic autonomy of universities and faculties in the distribution and use of state grants, a high likelihood of committing a crime by students who miss lecture-seminars and others. Various possible options for tuition reimbursement are analyzed. The views of education system experts and leading specialists in the field of education and science on the issue are discussed. An authorial model for the distribution and use of the state education grant is proposed and the advantages of introducing this model over the existing model are highlighted. The fo