English / ქართული /

Journal number 1 ∘ Givi TalakvadzePaata Koguashvili

The Formation of the New World Order and Its Connection with the Potential of Global Integral Resources

On February 22, 2022, the threat of a radical complication of international relations and transition of global processes to an acute and conflict stage became a reality. The Russia-Ukraine military-economic-political conflict, which Russia calls a "special military operation", has turned into a full-scale war. Despite the fact that the superiority of Russia's military potential in the initial stages of the war seemed obvious, the sympathy and support of practically the entire progressive world on the side of Ukraine was transformed into military superiority. It should be noted that the current situation is not only a problem of relations between Russia and Ukraine. Taking into account the established practice of relations between states, there are no two countries in the world where the results of the military-economic-political conflict between them will not affect the lives and realities of third countries. And taking into account that both Ukraine and especially Russia, even in term
Journal number 1 ∘ Revaz GvelesianiIrina Gogorishvili

Guiding Principles for a Successful EU Industrial Policy

There is no shortage of innovative digital business ideas in Europe, but only a few companies are expanding or creating access to global markets, while other major commercial players (often benefiting from government support, low regulatory standards or low tax rates) threaten Europe's influence on technological development and challenge European values and interests. Scholars in the EU believe that Europe should strive for both open strategic autonomy and technological sovereignty, reducing its dependence on third countries for some key technologies, especially in terms of security. In addition, it can be noted that in an increasingly geopolitically fragmented world with strong players, the EU is able to defend its position only in certain cases. As a trading superpower with a multilateral order, with its social economy model, it achieves its goals if it has the highest qualitative advantages. The EU seeks strategic autonomy, which does not require the obligatory presence on any side
Journal number 1 ∘ Elguja MekvabishviliRati MekvabishviliMarine NatsvaladzeRusudan SirbiladzeGiorgi Mzhavanadze Salome Deisadze Salome Kobakhidze

Cooperation and Peer Punishment in Public Good Game: Experimental Evidence from Georgia

In economic relations and public goods provision, individual and public interests often clash because individuals have an incentive to "free ride" and not contribute. Researchers have conducted numerous experiments using the Public Goods Game (PGG) to study human behavior dynamics. Results from studies (Fehr and Gächter 2000, Nikiforakis 2008, Yamagishi 1988) confirm that cooperation among individuals cannot be sustained due to opportunistic behavior. To tackle this issue, a punishment mechanism was introduced in the experimental PGG, which has proven to be an essential tool in promoting cooperation. The punishment mechanism provides an incentive for opportunistic individuals to cooperate and, as a result, fosters a belief in cooperation among individuals.Numerous studies have reported on the effectiveness of peer punishment in improving cooperation in PGG (Fehr and Gächter 2000, Herrmann, Thöni and Gächter 2008, Nikiforakis 2008). However, the effectiveness of prom
Journal number 1 ∘ Giorgi Malashkhia

The Contribution of Free Resources to the Creation and Growth of Goods (Wealth)

In economic science, there is only a mention of free goods and production resources. We find it since the time of the Physiocrats. The classic of economic theory A. Smith noted the participation of natural forces in the creation of wealth. The nature works together with man and this participation is free, gratuitous.Indeed, in the creation of tangible and intangible benefits, they have a lot of roles, in particular. Solar energy, climatic conditions, land resources, water resources, minerals, flora, fauna, etc. At the same time, the free (free) nature of some anthropogenic productive forces is not mentioned at all in science. These are knowledge, experience, scientific and technological achievements, organizational innovations accumulated and transferred by previous generations to the current generation, as well as the results of the gift nature of new knowledge and achievements in science and technology, which in many respects exceed the costs of them. Free resources are fully and par
Journal number 1 ∘ Eter Kharaishvili

The Atypical Crisis Impact on the Fruit Market: Structural Changes and Challenges

The article substantiates the importance of the fruit industry development for the balanced nutrition of the population and studies the factors that determine the further growth and steady development of the industry. There are several factors that lead to an increasing trend in fruit production and consumption, including the increase in the share of the middle class in the total population, the increase in the disposable income of the population, the rapid process of urbanization, the change in the lifestyle of consumers due to healthy food products, raising awareness about the characteristics of fruits, etc. It is substantiated that in the nearest period the current trends in the fruit market will be influenced by the further increase in the raw fruit production, the development of branding, technological progress and the development of online grocery chains. Based on the study of the changes caused by the atypical crisis, the negative and positive impacts on the fruit industry are i
Journal number 1 ∘ Tengiz Verulava

Managed Competition and Health Insurance Reforms in Georgia

Reforms implemented in the health care system of Georgia in 2008-2010 were intended for the creation and support of a competitive environment in the medical marker. Since 2010 competitive health insurance has been changed by a monopolistic system of insurance companies within one corresponding region. The goal of the research is to study the reasons for transferring from a competitive to a monopolistic health insurance system.The advantages of the competitive insurance model were expressed after the reforms implemented in Georgia in 2008-2010.The competitive insurance model increases the free choice of the insurer by insured ones. Free choice of the customers stimulates the insurer to consider customers’ preferences and conclude selective contracts with the providers of medical services who deliver high-quality services for relatively low prices. This motivates physicians and hospitals to improve the quality and decrease prices continually.Free choice of insurance funds stimulate
Journal number 1 ∘ Akaki Arsenashvili

Variable Structure Optimal Control Problem for the Economic -Political Systems

Investigation of variable structure optimal control problems is one of the important directions of the optimal control theory. Change of the structure of a system means that the system at some beforehand unknown moment may go over from one law of movement to another. Moreover, after changing the structure the initial condition of the system depends on its previous state. This joins them into a single system with variable structure. Such problems are important for various practical applications.In this article we consider the general economic system, the main purpose of which is to meet all the basic needs of society. Important features of the economic system are described. The classification of the economic system according to the ability to meet the main goal is given. It also takes into account the fact that the essence of the economic system depends on the political system in society, which is constant at certain intervals of time, but can change at any time unknown in advance. This
Journal number 1 ∘ Babulia MgebrishviliEkaterine UrotadzeMaia Veshaguri

Key Aspects of Retail Social Responsibility in Achieving Sustainable Development

Sustainable development is the most important way to solve the problems facing our planet. It can only be achieved through the joint efforts of the world's progressive community, and this is how the struggle for the realization of the Sustainable Development Goals is ongoing. The authors of the article believe that retail can play a role in achieving sustainable development goals. Therefore, attention is focused on its role in understanding the goals of sustainable development, such as human health and well-being and sustainable consumption and production. The authors also discuss, to some extent, environmental protection and the improvement of the earth's ecosystem in this article. According to them, retail can take some positive steps in this direction as well. The authors believe that the contribution of retailers to sustainable development is directly related to working with social responsibility. But, according to them, in this regard, there are some problems in the retail busines
Journal number 1 ∘ Petre Adamadze

Role of Orgnizational Culture in Management Process

In any socio-economic process, the human factor plays a decisive role. The influence of economic (and not only) thinking spread in society on economic reforms is quite big (Khaduri, 2002). The main goal of any social process, including the economy, is also a human being, creating favorable conditions for his all-round development. In itself, the implementer of any public process is also a person, and how effective this process will be, first of all, is determined by a person. In other words, a person is the main indicator of any social process (Papava, 2020).It should be noted from the beginning that there is no single "classical" definition of the human model in modern economic science. Nevertheless, the model of Adam Smith's homo economicus (economic man, homo oeconomicus, economic man) should be considered the most widespread, i.e. the model of a person whose defining motives are maximum utility in the family farm, and maximum profit in the firm. It must be emphasized that homo econ
Journal number 1 ∘ Nino Mikeladze

The Relationship Between Government Expenditure and Economic Growth: Wagner’s Law for Georgia

Government measures during the economic policy implementation should be based on the impact on economic growth and economic development. Moreover, as it is inevitable to have government expenditures, it is crucial to analyze what kind of relationship exists between economic growth and government expenditure. The answer comes from either Keynes or Wagner theories. This report explores such relationship for Georgia during 1995-2022 and finds the optimal point, when there is a maximum national income, according to Armey-Rahn curve.According to Keynes, government expenditure is the measure of the fiscal policy, through which it is possible to increase revenues (Demez 2021, 201). On the other hand, according to Wagner, economic growth is accompanied by the faster growth in government expenditure (Балацкий 2010, 80) and therefore, public spending is endogenous factor of economic development. Wagner theory shows that as revenue is increasing, it is more necessary to regulate externali