In order to firmly establish a place in the global economy, Georgia must ensure a high rate of economic development and turn from an import-dependent country into the most important player in the global supply chain. Our goal is to find an answer to the question that has been transformed from rhetorical to existential in the post-independence period: "Can we do anything?" Our country's roe highway runs through sustainable and dynamic development, reducing import dependence, achieving an active trade and payment balance - increasing the scale and efficiency of using local resources, attracting, training and using suitably trained personnel with entrepreneurial experience and skills. In an ever-changing global world, new opportunities suddenly appear, and we must be ready to respond faster than others to the new demands of the economy and establish a place in the global supply chain. In our opinion, in order to overcome poverty, attention should be shifted to two main factors: investing a growing part of public funds in education adapted to the requirements of the modern world, and secondly, focusing on the production of products with high added value. The more the raw material goes through the recycling cycle, the more value is added to it and the richer society becomes. Qualified, high-quality education, together with appropriate supporting programs, restores and creates new sectors of the economy, which will be a determining factor in the economic development of Georgia. In order to identify contradictions and opportunities, in the research process, we set the following tasks: • Identification and analysis of factors promoting and hindering the dynamic development of the Georgian economy; • Systematic presentation of conditions and factors ensuring rapid economic development of Georgia and development of appropriate recommendations. In order to achieve the set goal, which included identifying factors promoting and hindering the rapid economic development of Georgia and determining the corresponding effects, from January 9 to January 16, 2023, four higher educational institutions of Georgia (Kutaisi University, Akaki Tsereteli State University, Caucasus University and Ivane Javakhishvili Tbilisi State University) We conducted an online survey among academic staff of the economic profile via corporate e-mail. We believe that in the process of searching and researching the factors of the rapid development of the economy of Georgia, it is important to have the assessments, expert knowledge and opinions of those who are most aware of the situation in the country's national economy and who, through their publications and appeals, regularly provide relevant opinions and recommendations to the central or local authorities. 60 professors and teachers answered the questionnaire, where 11-11 factors promoting and hindering the accelerated growth of the Georgian economy and one question were given. When filling out the questionnaire, the respondents should
{"title":"FACILITATING AND HINDERING FACTORS OF THE ACCELERATED GROWTH OF THE GEORGIAN ECONOMY AND OPINIONS OF THE SCIENTIFIC COMMUNITY (RESULTS OF A SELECTIVE STUDY)","authors":"Alim Kherkhadze","doi":"10.52244/ep.2023.25.04","DOIUrl":"https://doi.org/10.52244/ep.2023.25.04","url":null,"abstract":"In order to firmly establish a place in the global economy, Georgia must ensure a high rate of economic development and turn from an import-dependent country into the most important player in the global supply chain. Our goal is to find an answer to the question that has been transformed from rhetorical to existential in the post-independence period: \"Can we do anything?\" Our country's roe highway runs through sustainable and dynamic development, reducing import dependence, achieving an active trade and payment balance - increasing the scale and efficiency of using local resources, attracting, training and using suitably trained personnel with entrepreneurial experience and skills. In an ever-changing global world, new opportunities suddenly appear, and we must be ready to respond faster than others to the new demands of the economy and establish a place in the global supply chain. In our opinion, in order to overcome poverty, attention should be shifted to two main factors: investing a growing part of public funds in education adapted to the requirements of the modern world, and secondly, focusing on the production of products with high added value. The more the raw material goes through the recycling cycle, the more value is added to it and the richer society becomes. Qualified, high-quality education, together with appropriate supporting programs, restores and creates new sectors of the economy, which will be a determining factor in the economic development of Georgia. In order to identify contradictions and opportunities, in the research process, we set the following tasks: • Identification and analysis of factors promoting and hindering the dynamic development of the Georgian economy; • Systematic presentation of conditions and factors ensuring rapid economic development of Georgia and development of appropriate recommendations. In order to achieve the set goal, which included identifying factors promoting and hindering the rapid economic development of Georgia and determining the corresponding effects, from January 9 to January 16, 2023, four higher educational institutions of Georgia (Kutaisi University, Akaki Tsereteli State University, Caucasus University and Ivane Javakhishvili Tbilisi State University) We conducted an online survey among academic staff of the economic profile via corporate e-mail. We believe that in the process of searching and researching the factors of the rapid development of the economy of Georgia, it is important to have the assessments, expert knowledge and opinions of those who are most aware of the situation in the country's national economy and who, through their publications and appeals, regularly provide relevant opinions and recommendations to the central or local authorities. 60 professors and teachers answered the questionnaire, where 11-11 factors promoting and hindering the accelerated growth of the Georgian economy and one question were given. When filling out the questionnaire, the respondents should ","PeriodicalId":344544,"journal":{"name":"Economic Profile","volume":"1998 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-07-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132474794","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Georgian universities as business entities are faced with new reality provoked by Covid-19. Distance learning became accompanying part of teaching as providing service to students. It is a challenge for university administrations to provide quality service and education and on the other hand, create pleasant working conditions for lecturers to perform uninterruptedly. This article identifies the challenges that arise from changes around the world and also offers few recommendations for managers/ administrations to manage their human resources effectively while telecommuting. 21st century is an era of changing environments and the progress is made in every field. The world is changing at a mile in a minute due to globalization, technological development, consumer habit changes, process reviews, pressure from new business entrants and competitors arising out of nowhere, focus on benefits and etc. These driving factors make us to be more changeable and adaptive to the current events. Popular directions of evolution and surviving, such as Darwinism, turned into one rule (simple and difficult at the same time) – if you want to survive, you need to change. Everything around us develops rapidly. This process has been accelerated by the Covid-19 pandemic. The pandemic has changed lifestyle, work and education style. While the whole world found itself surrounded by restrictions and limitations, the quality of life should have been stayed the same. Therefore, everything including education system has moved to a remote setup. Education system has a substantial impact on country’s economy and Georgia is part of this scheme. Since education plays a huge role in development, it is crucial to maintain the quality of distance learning. Covid-19 virus has covered enormous scales and has changed the daily lifestyle of the whole world. While the countries were under lockdown, they had to adapt an alternative working style, which is telecommuting. Working from distance became the main style of working which has covered all business units, including universities. At the current time, many researches have been carried out and many scientific literatures explaining telecommuting as a working practice. The number of universities that offer students online classes are growing fast. It is interesting how university’s administration manages their human resources on distance, because in a new reality it is a challenge. Communication between the employees and their supervisors is another important aspect that has significant effect of whole distance learning process. As it is known, communication and feedback are crucial for job satisfaction and performance of the employees. However, the type of personality plays a role in the telecommuting process and the satisfaction of the telecommuter, which is supported by the need of strong communication. For some people face-to-face communication is the most effective way to do their job. University administration should provide the s
{"title":"TELECOMMUTING IN GEORGIAN HIGHER EDUCATION SYSTEM – CHALLENGES AND OPPORTUNITIES","authors":"Giorgi Butskhrikidze, Neli Beridze","doi":"10.52244/ep.2023.25.03","DOIUrl":"https://doi.org/10.52244/ep.2023.25.03","url":null,"abstract":"Georgian universities as business entities are faced with new reality provoked by Covid-19. Distance learning became accompanying part of teaching as providing service to students. It is a challenge for university administrations to provide quality service and education and on the other hand, create pleasant working conditions for lecturers to perform uninterruptedly. This article identifies the challenges that arise from changes around the world and also offers few recommendations for managers/ administrations to manage their human resources effectively while telecommuting. 21st century is an era of changing environments and the progress is made in every field. The world is changing at a mile in a minute due to globalization, technological development, consumer habit changes, process reviews, pressure from new business entrants and competitors arising out of nowhere, focus on benefits and etc. These driving factors make us to be more changeable and adaptive to the current events. Popular directions of evolution and surviving, such as Darwinism, turned into one rule (simple and difficult at the same time) – if you want to survive, you need to change. Everything around us develops rapidly. This process has been accelerated by the Covid-19 pandemic. The pandemic has changed lifestyle, work and education style. While the whole world found itself surrounded by restrictions and limitations, the quality of life should have been stayed the same. Therefore, everything including education system has moved to a remote setup. Education system has a substantial impact on country’s economy and Georgia is part of this scheme. Since education plays a huge role in development, it is crucial to maintain the quality of distance learning. Covid-19 virus has covered enormous scales and has changed the daily lifestyle of the whole world. While the countries were under lockdown, they had to adapt an alternative working style, which is telecommuting. Working from distance became the main style of working which has covered all business units, including universities. At the current time, many researches have been carried out and many scientific literatures explaining telecommuting as a working practice. The number of universities that offer students online classes are growing fast. It is interesting how university’s administration manages their human resources on distance, because in a new reality it is a challenge. Communication between the employees and their supervisors is another important aspect that has significant effect of whole distance learning process. As it is known, communication and feedback are crucial for job satisfaction and performance of the employees. However, the type of personality plays a role in the telecommuting process and the satisfaction of the telecommuter, which is supported by the need of strong communication. For some people face-to-face communication is the most effective way to do their job. University administration should provide the s","PeriodicalId":344544,"journal":{"name":"Economic Profile","volume":"12 3","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-07-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"120908406","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The best way to objectively evaluate the proper functioning and financial results of construction companies is to analyze their financial situation. As a result of the analysis of the actual situation, it is possible to make a forecast about the future stability of the company, or on the contrary, based on the mentioned information, expected threats can be avoided. The purpose of the present study is to develop directions for improving the financial condition of construction companies and to formulate appropriate conclusions and recommendations based on the practical analysis of the financial condition of these companies. There are a number of serious gaps in the regulations in the construction sector, which require timely completion. The analysis of the current processes in the construction sector reveals that the field is currently developing on its own. It is necessary to fully introduce modern construction regulations in Georgia and to regulate the construction field. It is important that continuous and active work in this direction is carried out. Regulation of the construction sector should be implemented through the coordinated work of state agencies, international organizations, construction industry and academia. It is important to fully realize the importance of international standards and make decisions with the participation of a properly informed construction sector. In our opinion, for the state regulation of business, it is necessary to correctly analyze the country's development indicators, take into account specific conditions and determine the possible directions of business development. A rational coordination of strategic and operational goals should be implemented and an organic relationship between the market and the state should be established, as a result of which the relations between the state and the construction market will be causally interconnected. Based on the analysis of the results of the research carried out by us, it is possible to formulate the main conclusions and recommendations of the existing problems identified in the research process: • Preparation and analysis of financial statements will provide significant assistance to the construction companies themselves (both management and owners) in objective assessment of past activities and making correct forecasts, therefore the financial services of construction companies should permanently analyze the main indicators of financial statements, study changes in these indicators and negative Taking preventive measures in case of detection of trends. • The ability to analyze financial statements will increase the interest of potential investors in terms of investing in a specific company, which in itself will help construction companies to find an alternative source of financing, that is why companies should provide presentation of financial statements in the language of business; • The availability of financial statements will allow stakeholders to calculate av
{"title":"ANALYSIS OF THE FINANCIAL SITUATION OF CONSTRUCTION COMPANIES AND DIRECTIONS FOR ITS IMPROVEMENT","authors":"Lela Kheladze","doi":"10.52244/ep.2023.25.09","DOIUrl":"https://doi.org/10.52244/ep.2023.25.09","url":null,"abstract":"The best way to objectively evaluate the proper functioning and financial results of construction companies is to analyze their financial situation. As a result of the analysis of the actual situation, it is possible to make a forecast about the future stability of the company, or on the contrary, based on the mentioned information, expected threats can be avoided. The purpose of the present study is to develop directions for improving the financial condition of construction companies and to formulate appropriate conclusions and recommendations based on the practical analysis of the financial condition of these companies. There are a number of serious gaps in the regulations in the construction sector, which require timely completion. The analysis of the current processes in the construction sector reveals that the field is currently developing on its own. It is necessary to fully introduce modern construction regulations in Georgia and to regulate the construction field. It is important that continuous and active work in this direction is carried out. Regulation of the construction sector should be implemented through the coordinated work of state agencies, international organizations, construction industry and academia. It is important to fully realize the importance of international standards and make decisions with the participation of a properly informed construction sector. In our opinion, for the state regulation of business, it is necessary to correctly analyze the country's development indicators, take into account specific conditions and determine the possible directions of business development. A rational coordination of strategic and operational goals should be implemented and an organic relationship between the market and the state should be established, as a result of which the relations between the state and the construction market will be causally interconnected. Based on the analysis of the results of the research carried out by us, it is possible to formulate the main conclusions and recommendations of the existing problems identified in the research process: • Preparation and analysis of financial statements will provide significant assistance to the construction companies themselves (both management and owners) in objective assessment of past activities and making correct forecasts, therefore the financial services of construction companies should permanently analyze the main indicators of financial statements, study changes in these indicators and negative Taking preventive measures in case of detection of trends. • The ability to analyze financial statements will increase the interest of potential investors in terms of investing in a specific company, which in itself will help construction companies to find an alternative source of financing, that is why companies should provide presentation of financial statements in the language of business; • The availability of financial statements will allow stakeholders to calculate av","PeriodicalId":344544,"journal":{"name":"Economic Profile","volume":"264 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-07-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125810473","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Microfinance is the provision of financial services to low-income groups. By classical definition it contributes to the improvement of the socio-economic condition as well as financial self-sufficiency of the low-income costumer and improves their living standards. Today, microfinance institutions around the world serve up to 156 million borrowers and manage a loan portfolio of USD 187 billion (Impact Finance Barometer, 2022: 3). Formation of Georgian microfinance market began in the 1990s and was developed mainly with the same scenario as in Balkans, Eastern Europe and Central Asia. During the first 10 years after adoption of the new Law on Microfinance Organizations and commercialization of the industry, a rapid growth and fast development of the sector was recorded (2006-2016), which has been then changed by a negative trend and market decline. The main reasons of the crisis are: tighter regulation, market saturation, growing competition from commercial banks, over-indebtedness, weak corporate governance, etc. In July 2022, the draft law on the activities of micro banks was registered in the Parliament of Georgia, according to which a new financial institution focused on lending to entrepreneurial and agricultural activities - a micro bank - will enter the market from 2023. The draft law was prepared based on the recommendation of the International Monetary Fund, which advised the National Bank to introduce a micro bank as a new institutional form (International Monetary Fund, 2020: 19). As a result of the law, 4 types of financial institutions will be presented in the financial market of Georgia since 2023: commercial banks, micro banks, microfinance organizations and loan issuing entities. The new regulatory framework should give microbanks the following advantages over the current status of MFIs: The maximum loan amount per borrower will be increased from GEL 100,000 to GEL 1 million, which allows microbanks to actively enter the SME lending segment, retain good borrowers, grow faster faster in the market and compete with banks. Having the right to mobilize the deposits, microbanks will be able to better diversify their funding sources, reduce the cost of local currency borrowing (based on savings in hedging) and, accordingly, reduce the interest rate on loans for thier clients, which will also increase their competitiveness with banks. By offering bank account services, microbanks will be able to provide customers with an almost full range of banking services. After legally differenciating from “consumption” and “pawnshop” type of financial institutions, microbanks will be able to attract more investments from responsible and reputable international financial institutions. At the same time, the new draft law contains certain potential risks that need to be properly assessed and analyzed: The increase of loan size limit from 100,000 to 1 million GEL is a good for portfolio growth. However, most companies lack the experience and qualif
{"title":"THE NEW LAW ON MICRO BANKS AND WHAT IT WILL CHANGE IN THE FINANCIAL MARKET OF GEORGIA","authors":"Malkhaz Dzadzua","doi":"10.52244/ep.2022.24.11","DOIUrl":"https://doi.org/10.52244/ep.2022.24.11","url":null,"abstract":"Microfinance is the provision of financial services to low-income groups. By classical definition it contributes to the improvement of the socio-economic condition as well as financial self-sufficiency of the low-income costumer and improves their living standards. Today, microfinance institutions around the world serve up to 156 million borrowers and manage a loan portfolio of USD 187 billion (Impact Finance Barometer, 2022: 3).\u0000\u0000Formation of Georgian microfinance market began in the 1990s and was developed mainly with the same scenario as in Balkans, Eastern Europe and Central Asia. During the first 10 years after adoption of the new Law on Microfinance Organizations and commercialization of the industry, a rapid growth and fast development of the sector was recorded (2006-2016), which has been then changed by a negative trend and market decline. The main reasons of the crisis are: tighter regulation, market saturation, growing competition from commercial banks, over-indebtedness, weak corporate governance, etc.\u0000\u0000In July 2022, the draft law on the activities of micro banks was registered in the Parliament of Georgia, according to which a new financial institution focused on lending to entrepreneurial and agricultural activities - a micro bank - will enter the market from 2023. The draft law was prepared based on the recommendation of the International Monetary Fund, which advised the National Bank to introduce a micro bank as a new institutional form (International Monetary Fund, 2020: 19).\u0000\u0000As a result of the law, 4 types of financial institutions will be presented in the financial market of Georgia since 2023: commercial banks, micro banks, microfinance organizations and loan issuing entities.\u0000\u0000The new regulatory framework should give microbanks the following advantages over the current status of MFIs:\u0000\u0000The maximum loan amount per borrower will be increased from GEL 100,000 to GEL 1 million, which allows microbanks to actively enter the SME lending segment, retain good borrowers, grow faster faster in the market and compete with banks.\u0000Having the right to mobilize the deposits, microbanks will be able to better diversify their funding sources, reduce the cost of local currency borrowing (based on savings in hedging) and, accordingly, reduce the interest rate on loans for thier clients, which will also increase their competitiveness with banks.\u0000By offering bank account services, microbanks will be able to provide customers with an almost full range of banking services.\u0000After legally differenciating from “consumption” and “pawnshop” type of financial institutions, microbanks will be able to attract more investments from responsible and reputable international financial institutions.\u0000At the same time, the new draft law contains certain potential risks that need to be properly assessed and analyzed:\u0000\u0000The increase of loan size limit from 100,000 to 1 million GEL is a good for portfolio growth. However, most companies lack the experience and qualif","PeriodicalId":344544,"journal":{"name":"Economic Profile","volume":"84 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-12-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125389673","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In terms of mobilizing financial resources in the budget, value added tax has a leading position among other taxes. The analysis of the fiscal value of the value added tax, how it affects the current processes in the economy and economic growth in general, is highly relevant. Indirect taxes are a mechanism that affects the formation of the final price of products, the profit of entrepreneurs, its profitability and, in general, the financial situation of economic entities. Over the last few years, the system of taxation with value added tax (VAT) is developing more and more, its administration measures are being improved, reasonable benefits are established for the supply of various types of goods and services. The taxation mechanism is becoming closer to the European Union standards, although there are still a lot of shortcomings. Undoubtedly, as soon as the system of taxation with indirect taxes takes a more complete form, it will be a prerequisite for it to effectively perform the regulatory function of the economy. In turn, this will lead to an increase in production, an increase in the well-being of the society and economic growth. Value added tax has an important fiscal function in the formation of budget revenues. According to the Budget Code, the equalization transfer was canceled and instead of this, VAT was introduced into the budget of local territorial units according to the respective municipalities. 81% of VAT will be credited to the state budget, and 19% - to the budgets of relevant local self-governing units. This approach is adopted in many developed countries. The mentioned method is an additional incentive for each local self-governing unit, as they are given the opportunity to plan the budget in a more targeted way, which will be the basis for the economic development of the respective territorial unit. In general, indirect taxes affect both demand and supply. They are added to the price of goods and services and increase their value. Therefore, it is important to consider the impact of VAT on demand and supply and thus on economic growth. If we look at the dynamics of economic growth in the recent period, we can be sure that there is a trend of economic growth. One of the reasons for this, along with many other factors, can be considered the recent changes in VAT, which made the indirect tax system more loyal. The existing system of indirect taxes in the country should, first of all, ensure the fulfillment of the tasks and measures set before the state, however, at the same time, the amount of the tax rate should be reasonable and differentiated and tax administration measures are simpler, which will help business entities to carry out their activities without interruption.
{"title":"FISCAL SIGNIFICANCE OF VALUE ADDED TAX AND IT’S IMPACT ON ECONOMIC GROWTH","authors":"Lia Kheladze, Natia Kurdgelia","doi":"10.52244/ep.2022.24.07","DOIUrl":"https://doi.org/10.52244/ep.2022.24.07","url":null,"abstract":"In terms of mobilizing financial resources in the budget, value added tax has a leading position among other taxes. The analysis of the fiscal value of the value added tax, how it affects the current processes in the economy and economic growth in general, is highly relevant. Indirect taxes are a mechanism that affects the formation of the final price of products, the profit of entrepreneurs, its profitability and, in general, the financial situation of economic entities.\u0000\u0000Over the last few years, the system of taxation with value added tax (VAT) is developing more and more, its administration measures are being improved, reasonable benefits are established for the supply of various types of goods and services. The taxation mechanism is becoming closer to the European Union standards, although there are still a lot of shortcomings. Undoubtedly, as soon as the system of taxation with indirect taxes takes a more complete form, it will be a prerequisite for it to effectively perform the regulatory function of the economy. In turn, this will lead to an increase in production, an increase in the well-being of the society and economic growth.\u0000\u0000Value added tax has an important fiscal function in the formation of budget revenues. According to the Budget Code, the equalization transfer was canceled and instead of this, VAT was introduced into the budget of local territorial units according to the respective municipalities. 81% of VAT will be credited to the state budget, and 19% - to the budgets of relevant local self-governing units. This approach is adopted in many developed countries. The mentioned method is an additional incentive for each local self-governing unit, as they are given the opportunity to plan the budget in a more targeted way, which will be the basis for the economic development of the respective territorial unit.\u0000\u0000In general, indirect taxes affect both demand and supply. They are added to the price of goods and services and increase their value. Therefore, it is important to consider the impact of VAT on demand and supply and thus on economic growth.\u0000\u0000If we look at the dynamics of economic growth in the recent period, we can be sure that there is a trend of economic growth. One of the reasons for this, along with many other factors, can be considered the recent changes in VAT, which made the indirect tax system more loyal.\u0000\u0000The existing system of indirect taxes in the country should, first of all, ensure the fulfillment of the tasks and measures set before the state, however, at the same time, the amount of the tax rate should be reasonable and differentiated and tax administration measures are simpler, which will help business entities to carry out their activities without interruption.","PeriodicalId":344544,"journal":{"name":"Economic Profile","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-12-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129450402","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The current tax systems in the world are quite substantially differ from each other in many parameters, including the role and ratio of direct and indirect taxes - both in terms of the implementation of the regulatory and fiscal functions. In the tax system of Georgia, indirect taxes have assumed an important role, especially in terms of the implementation of the fiscal function. Currently, the value added tax and the excise tax account for around 60% of consolidated budget revenues, and this percentage mostly keeps getting bigger. The article discusses the factors responsible for this, including the introduction of the new, so-called Estonian profit tax model, resulting in rapid decline in the percentage of the profit tax in the overall budget incomes; the inflationary processes have become more active, the results of which were directly reflected in the increase of mobilized indirect taxes; relative simplicity of administration of indirect taxes, as well as a sharp increase in excise rates (which, unlike other taxes, is allowed even without a referendum). The article discusses also legislative changes, as a result of which the topic of value added tax has been completely changed in the Tax Code. This necessity was caused by the association agreement signed with the European Union, through which Georgia has committed to obligation regarding gradual convergence between the tax legislation and the relevant legal standards of the European Union. These changes are also important in terms of improving the business environment and liberalizing tax conditions. However, along with undoubtedly positive results, certain problems, risks and threats have also been identified.. The simplification of the rules for return of tax surplus, which was mostly carried out within the framework of the reform of the main added tax, proved to be associated with particularly significant risks. The VAT excess refund system has become fully automated. This made it easier for taxpayers to claim back the excess, but resulted in increased burdens in term of tax control. Recent years, have seen a significant increase in the excise rates, especially on tobacco products. This, on the one hand, was due to the country's international obligations, as we are connected to the World Health Organization's Framework Convention on Tobacco Control, and we also have an association agreement with the European Union. In both cases, we undertook excise policies to reduce tobacco consumption and increase the burden of taxation. However, fiscal motivation is also an important factor - over the years, in order to balance the growing state expenses, excise rates have been systematically increased, which is allowed by Georgian legislation even without a referendum. We noted that an abrupt increase in excise rates and substantial increase in the burden of taxation on tobacco consumption caused a number of problems, including the risks of smuggling and illegal circulation of tobacco products ha
{"title":"INDIRECT TAXES IN GEORGIA: PROBLEMS AND OPPORTUNITIES","authors":"Guram Uphlisashvili","doi":"10.52244/ep.2022.24.12","DOIUrl":"https://doi.org/10.52244/ep.2022.24.12","url":null,"abstract":"The current tax systems in the world are quite substantially differ from each other in many parameters, including the role and ratio of direct and indirect taxes - both in terms of the implementation of the regulatory and fiscal functions.\u0000\u0000In the tax system of Georgia, indirect taxes have assumed an important role, especially in terms of the implementation of the fiscal function. Currently, the value added tax and the excise tax account for around 60% of consolidated budget revenues, and this percentage mostly keeps getting bigger. The article discusses the factors responsible for this, including the introduction of the new, so-called Estonian profit tax model, resulting in rapid decline in the percentage of the profit tax in the overall budget incomes; the inflationary processes have become more active, the results of which were directly reflected in the increase of mobilized indirect taxes; relative simplicity of administration of indirect taxes, as well as a sharp increase in excise rates (which, unlike other taxes, is allowed even without a referendum).\u0000\u0000The article discusses also legislative changes, as a result of which the topic of value added tax has been completely changed in the Tax Code. This necessity was caused by the association agreement signed with the European Union, through which Georgia has committed to obligation regarding gradual convergence between the tax legislation and the relevant legal standards of the European Union. These changes are also important in terms of improving the business environment and liberalizing tax conditions. However, along with undoubtedly positive results, certain problems, risks and threats have also been identified..\u0000\u0000The simplification of the rules for return of tax surplus, which was mostly carried out within the framework of the reform of the main added tax, proved to be associated with particularly significant risks. The VAT excess refund system has become fully automated. This made it easier for taxpayers to claim back the excess, but resulted in increased burdens in term of tax control.\u0000\u0000Recent years, have seen a significant increase in the excise rates, especially on tobacco products. This, on the one hand, was due to the country's international obligations, as we are connected to the World Health Organization's Framework Convention on Tobacco Control, and we also have an association agreement with the European Union. In both cases, we undertook excise policies to reduce tobacco consumption and increase the burden of taxation. However, fiscal motivation is also an important factor - over the years, in order to balance the growing state expenses, excise rates have been systematically increased, which is allowed by Georgian legislation even without a referendum.\u0000\u0000We noted that an abrupt increase in excise rates and substantial increase in the burden of taxation on tobacco consumption caused a number of problems, including the risks of smuggling and illegal circulation of tobacco products ha","PeriodicalId":344544,"journal":{"name":"Economic Profile","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-12-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129852351","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Improving the production capacity of modern transport enterprises requires increased attention to the environmental component of their activities. The close connection between the transport enterprises’ environmental and economic activities contributed to the formation and popularization of the concept of ecological and economic safety management. The conducted research allows us to identify the directions and features of the environmental factors’ influence on the ecological and economic safety management of transport enterprises. As part of the research, the legal framework in the field of environmental and economic safety management of a transport enterprise was studied, and the peculiarities of the influence of external environmental factors on the environmental and economic safety management of enterprises were analysed. The purpose of the study is to explore the environmental factors that affect the management of environmental and economic safety of the enterprise. As part of achieving the goal, the following tasks were solved: groups of environmental factors affecting the ecological and economic safety management of the transport enterprise were identified; the primary importance of factors was determined; the legal framework in the field of environmental and economic safety of transport enterprises has been studied; the intricacies of the influence of environmental factors on the ecological and economic safety of transport enterprises were analysed. The conducted analysis of the environmental factors’ influence on the management of ecological and economic safety of transport enterprises can be used to form a system of indicators for assessing the level of ecological and economic safety of a transport enterprise, direct assessment and development of a mechanism for increasing the level of ecological and economic safety of a transport enterprise.
{"title":"THE EXTERNAL FACTORS' INFLUENCE ON THE TRANSPORT ENTERPRISE'S MANAGEMENT OF ENVIRONMENTAL AND ECONOMIC SAFETY","authors":"O. Bakulich, V. Holodenko","doi":"10.52244/ep.2022.24.01","DOIUrl":"https://doi.org/10.52244/ep.2022.24.01","url":null,"abstract":"Improving the production capacity of modern transport enterprises requires increased attention to the environmental component of their activities. The close connection between the transport enterprises’ environmental and economic activities contributed to the formation and popularization of the concept of ecological and economic safety management. The conducted research allows us to identify the directions and features of the environmental factors’ influence on the ecological and economic safety management of transport enterprises. As part of the research, the legal framework in the field of environmental and economic safety management of a transport enterprise was studied, and the peculiarities of the influence of external environmental factors on the environmental and economic safety management of enterprises were analysed.\u0000\u0000The purpose of the study is to explore the environmental factors that affect the management of environmental and economic safety of the enterprise. As part of achieving the goal, the following tasks were solved: groups of environmental factors affecting the ecological and economic safety management of the transport enterprise were identified; the primary importance of factors was determined; the legal framework in the field of environmental and economic safety of transport enterprises has been studied; the intricacies of the influence of environmental factors on the ecological and economic safety of transport enterprises were analysed. The conducted analysis of the environmental factors’ influence on the management of ecological and economic safety of transport enterprises can be used to form a system of indicators for assessing the level of ecological and economic safety of a transport enterprise, direct assessment and development of a mechanism for increasing the level of ecological and economic safety of a transport enterprise.","PeriodicalId":344544,"journal":{"name":"Economic Profile","volume":"14 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-12-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125314693","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The systemic crisis of the capitalist mode of production and the rigid market economy, the features of the neo-industrial era are creating much accelerated and qualitatively different modes and conditions of actions and practical activities compared to the previous ones, a new paradigm of global development. Only at the turn of the 20th and 21st centuries does it begin to be recognized that the present and future of humanity depends not only on the possession of integral resources, but primarily on their rational use and the effectiveness of optimal management systems. Quite real opportunities have emerged to influence people's living conditions not only with military-political and economic levers, but also with high technologies created using intellectual resources. Moreover: today's technological achievements have created a real possibility of influencing the formation of algorithms of human behavior and bringing it into the framework subordinate to the realization of certain interests. At the current stage of development, which is called the "post-industrial" stage, the work on influencing the formation of people's desires and aspirations from the "outside" is going on more and more powerfully and with dangerous aggressiveness. In these circumstances, special attention and efforts are required for each country to formulate and implement the most concrete development action program useful only for it. The key issue of such programs is to determine the development priorities of the country and to develop optimal schemes and modes of management and use of integral resources ensuring their realization. Georgia can be transformed into an unprecedented innovative training ground, a space for the development and realization of complex programs of direct large investments, fundamentally new economic regimes and projects secured by international and sovereign guarantees, i.e., an adequate demonstration and realization state of the neo-industrial paradigm of integral resources of Georgia. Special processes developed in the second half of the 20th century and the first twenty years of the 21st century: the fourth industrial revolution gave a qualitatively new impetus to global technological progress, completely real opportunities emerged to influence people's living conditions not only with military-political and economic levers, but also with high technologies created using intellectual resources. Moreover: today's technological achievements have created a real possibility of influencing the formation of algorithms of human behavior and bringing it into the framework subordinate to the realization of certain interests. In the current stage of development, which is called the "post-industrial" stage (although, in our opinion, it carries a more "neo-industrial" content), the work on influencing the formation of people's desires and aspirations from the "outside" is increasingly powerful and dangerously aggressive. Such a paradigm, in the case of its real
{"title":"NEOINDUSTRIAL PARADIGM OF RESOURCE POTENTIAL","authors":"G. Talakvadze, Talakvadze Giorgi","doi":"10.52244/ep.2022.24.10","DOIUrl":"https://doi.org/10.52244/ep.2022.24.10","url":null,"abstract":"The systemic crisis of the capitalist mode of production and the rigid market economy, the features of the neo-industrial era are creating much accelerated and qualitatively different modes and conditions of actions and practical activities compared to the previous ones, a new paradigm of global development. Only at the turn of the 20th and 21st centuries does it begin to be recognized that the present and future of humanity depends not only on the possession of integral resources, but primarily on their rational use and the effectiveness of optimal management systems. Quite real opportunities have emerged to influence people's living conditions not only with military-political and economic levers, but also with high technologies created using intellectual resources. Moreover: today's technological achievements have created a real possibility of influencing the formation of algorithms of human behavior and bringing it into the framework subordinate to the realization of certain interests. At the current stage of development, which is called the \"post-industrial\" stage, the work on influencing the formation of people's desires and aspirations from the \"outside\" is going on more and more powerfully and with dangerous aggressiveness. In these circumstances, special attention and efforts are required for each country to formulate and implement the most concrete development action program useful only for it. The key issue of such programs is to determine the development priorities of the country and to develop optimal schemes and modes of management and use of integral resources ensuring their realization. Georgia can be transformed into an unprecedented innovative training ground, a space for the development and realization of complex programs of direct large investments, fundamentally new economic regimes and projects secured by international and sovereign guarantees, i.e., an adequate demonstration and realization state of the neo-industrial paradigm of integral resources of Georgia.\u0000\u0000Special processes developed in the second half of the 20th century and the first twenty years of the 21st century: the fourth industrial revolution gave a qualitatively new impetus to global technological progress, completely real opportunities emerged to influence people's living conditions not only with military-political and economic levers, but also with high technologies created using intellectual resources. Moreover: today's technological achievements have created a real possibility of influencing the formation of algorithms of human behavior and bringing it into the framework subordinate to the realization of certain interests. In the current stage of development, which is called the \"post-industrial\" stage (although, in our opinion, it carries a more \"neo-industrial\" content), the work on influencing the formation of people's desires and aspirations from the \"outside\" is increasingly powerful and dangerously aggressive. Such a paradigm, in the case of its real","PeriodicalId":344544,"journal":{"name":"Economic Profile","volume":"9 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-12-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127019222","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In Georgia, even today, in the post-pandemic period, the tourism business is quite relevant. The increase in tourist flows in the country has given rise to the prospect that the share of the tourism sector in the economy will increase, which is fully in line with the 2025 vision of the Georgian Tourism Strategy. The point to note here is that more attention should be paid to the quality and variety of visitors rather than the quantity of visitors. In the 2025 "Tourism Strategy of Georgia" plan, which was developed in previous years and 2015 is taken as the base period, it is planned that the income from tourism should increase (from the existing 1.9 billion US dollars) to 6.6 billion US dollars. The share of the tourism sector in the GDP should be 7.9%. Increasing the average amount spent by visitors from the current $300 to $600. as well as increasing the average length of stay to 7 nights and doubling the number of visitors from the high-paying markets of Western Europe, Asia and North America. Priority tourism activities in the country are: increasing state and private investments in the field of tourism; improvement of the business environment in order to promote the increase of the number of visits, foreign and local investments; attracting visitors from high-paying markets by means of effective marketing and information campaigns, as well as stimulating domestic tourism; Increasing competitiveness by offering world-class tourism services; Creating unique and authentic offers in tourism using natural and cultural heritage resources. In the development of the country's tourism sector, the development of domestic tourism has gained great importance in the recent period. A number of measures were implemented during the pandemic period and in the subsequent period to stimulate domestic tourism. The total number of domestic tourism visits in 2021 amounted to 16.9 million, which is +35.8% more than in the same period of the previous year, such a sharp increase is also due to the fact that in previous years, the tourism seasons during the pandemic period were unsuccessful. According to the data of the National Bank, in 2021, Georgia received approximately 1.2 billion USD from international travel, which is 130% higher than the 2020 figure, and 62% lower than the 2019 figure. Tourism is a priority direction for Georgia. In the pre-pandemic period, the number of international visitors and, accordingly, the income from international travel increased every year. Restoring the tourism sector is an important precondition for overcoming the crisis. In the post-pandemic period, the development of tourism in Georgia, as well as around the world, has an undeniably great perspective, as evidenced by the data of the World Tourism Council. The travel and tourism industry is one of the fastest growing service sectors in the world. According to the World Travel and Tourism Council (WTTC), in 2021, the contribution of this industry to the total GDP amounte
{"title":"POLICY OF TOURISM BUSINESS IN GEORGIA IN THE POST-PANDEMIC PERIOD","authors":"G. Shanidze","doi":"10.52244/ep.2022.24.08","DOIUrl":"https://doi.org/10.52244/ep.2022.24.08","url":null,"abstract":"In Georgia, even today, in the post-pandemic period, the tourism business is quite relevant. The increase in tourist flows in the country has given rise to the prospect that the share of the tourism sector in the economy will increase, which is fully in line with the 2025 vision of the Georgian Tourism Strategy. The point to note here is that more attention should be paid to the quality and variety of visitors rather than the quantity of visitors.\u0000\u0000 In the 2025 \"Tourism Strategy of Georgia\" plan, which was developed in previous years and 2015 is taken as the base period, it is planned that the income from tourism should increase (from the existing 1.9 billion US dollars) to 6.6 billion US dollars. The share of the tourism sector in the GDP should be 7.9%. Increasing the average amount spent by visitors from the current $300 to $600. as well as increasing the average length of stay to 7 nights and doubling the number of visitors from the high-paying markets of Western Europe, Asia and North America.\u0000\u0000Priority tourism activities in the country are: increasing state and private investments in the field of tourism; improvement of the business environment in order to promote the increase of the number of visits, foreign and local investments; attracting visitors from high-paying markets by means of effective marketing and information campaigns, as well as stimulating domestic tourism; Increasing competitiveness by offering world-class tourism services; Creating unique and authentic offers in tourism using natural and cultural heritage resources.\u0000\u0000In the development of the country's tourism sector, the development of domestic tourism has gained great importance in the recent period. A number of measures were implemented during the pandemic period and in the subsequent period to stimulate domestic tourism.\u0000\u0000The total number of domestic tourism visits in 2021 amounted to 16.9 million, which is +35.8% more than in the same period of the previous year, such a sharp increase is also due to the fact that in previous years, the tourism seasons during the pandemic period were unsuccessful.\u0000\u0000According to the data of the National Bank, in 2021, Georgia received approximately 1.2 billion USD from international travel, which is 130% higher than the 2020 figure, and 62% lower than the 2019 figure.\u0000\u0000Tourism is a priority direction for Georgia. In the pre-pandemic period, the number of international visitors and, accordingly, the income from international travel increased every year. Restoring the tourism sector is an important precondition for overcoming the crisis.\u0000\u0000In the post-pandemic period, the development of tourism in Georgia, as well as around the world, has an undeniably great perspective, as evidenced by the data of the World Tourism Council. The travel and tourism industry is one of the fastest growing service sectors in the world. According to the World Travel and Tourism Council (WTTC), in 2021, the contribution of this industry to the total GDP amounte","PeriodicalId":344544,"journal":{"name":"Economic Profile","volume":"41 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-12-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134274097","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Just when the whole world, which was already almost stopped and reduced as a result of the pandemic, was starting the process of restoring the global economy, the Russian Federation invaded Ukraine, which further stopped the process of economic recovery and deepened the world economic crisis, which was previously dictated by the breakdown of the supply chains. Russia and Ukraine, with their economic scale, are important players in ensuring the world trade balance, both jointly and separately, so the start of the war led to an increase in the prices of a number of goods and services, which particularly affected strategic goods such as oil products, gas, wheat, corn, oil and others. The increase in the prices of strategic goods was quite large-scale at the world level, so in the most countries of the world the rate of inflation increased, which led to the correction of various macroeconomic indicators, while such corrections turned out to be more sensitive for the countries of the European continent, which depended on Russian energy resources. Although the economic and financial sanctions were quite immediate, some countries still failed to join the sanctions and plans were developed to reduce their dependence on Russian energy resources and goods, because joining the sanctions completely would cause the collapse of the economy of such countries, since some countries are completely dependent on Russian resources. Russia and Ukraine are one of the most important trade and partner countries for Georgia, that's why the war had a significant impact on the economy of Georgia. Despite the fact that Georgia largely joined the sanctions imposed by the European Union, it still maintained its openness to the Russian economy and trade, which was reflected in the Georgian economy by the inflow of remittances from Russia and the increase by the flow of travelers.
{"title":"THE IMPACT OF THE RUSSIA-UKRAINE WAR ON THE TRADE BALANCE OF THE WORLD AND GEORGIA","authors":"Lasha Beridze","doi":"10.52244/ep.2022.24.13","DOIUrl":"https://doi.org/10.52244/ep.2022.24.13","url":null,"abstract":"Just when the whole world, which was already almost stopped and reduced as a result of the pandemic, was starting the process of restoring the global economy, the Russian Federation invaded Ukraine, which further stopped the process of economic recovery and deepened the world economic crisis, which was previously dictated by the breakdown of the supply chains. Russia and Ukraine, with their economic scale, are important players in ensuring the world trade balance, both jointly and separately, so the start of the war led to an increase in the prices of a number of goods and services, which particularly affected strategic goods such as oil products, gas, wheat, corn, oil and others. The increase in the prices of strategic goods was quite large-scale at the world level, so in the most countries of the world the rate of inflation increased, which led to the correction of various macroeconomic indicators, while such corrections turned out to be more sensitive for the countries of the European continent, which depended on Russian energy resources. Although the economic and financial sanctions were quite immediate, some countries still failed to join the sanctions and plans were developed to reduce their dependence on Russian energy resources and goods, because joining the sanctions completely would cause the collapse of the economy of such countries, since some countries are completely dependent on Russian resources. Russia and Ukraine are one of the most important trade and partner countries for Georgia, that's why the war had a significant impact on the economy of Georgia. Despite the fact that Georgia largely joined the sanctions imposed by the European Union, it still maintained its openness to the Russian economy and trade, which was reflected in the Georgian economy by the inflow of remittances from Russia and the increase by the flow of travelers.","PeriodicalId":344544,"journal":{"name":"Economic Profile","volume":"25 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-12-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121930680","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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