In the era of globalization, the attraction of foreign investments has become an important factor in promoting the economic growth of countries. Investors are constantly looking for favorable conditions for investing their capital, which involves a combination of several important factors. The investor, who is focused on getting the maximum profit with the minimum cost, before making an investment decision, will study the investment environment of the host country, the proximity to large key markets, the barriers to entry from the host country to international markets, the availability of production and energy resources, the level of political and economic stability, the number of labor force, qualifications, etc. .sh. In terms of investments in the modern world, two types of trends have been identified: 1. High-tech investments, which are mainly located in developed countries, due to the developed country's intellectual resources, key market and good opportunities for business development, and 2. Investment, which is focused on obtaining maximum profit at the expense of cheap resources and labor force, and there is no or minimal technical innovation in it. It is important for the state to attract such direct foreign investments, which will not only be focused on making profits, but will also ensure the raising of the qualifications of local staff, the introduction of technological innovations, and the social protection of employees. Thanks to the economic reforms implemented after the post-Soviet upheavals, Georgia has become an attractive place for foreign investment, however, due to the shortage of labor force and low qualifications, investments focused on cheap resources and labor force are entering the country more than high-tech ones. The entry of relatively large, high-tech investments is hindered, in addition to the scarcity of the country's workforce and relatively low qualifications, the low level of energy independence, the territories occupied by the Russian Federation of Georgia, the generally politically and economically unstable region (Tskhinvali, Abkhazia, Karabakh regions), the aggressive state - the Russian Federation. Neighborhood and high probability of potential armed conflicts. The positive factors that make Georgia attractive for foreign investors are a favorable geopolitical location with land access, moderate natural and climatic conditions, low level of corruption, less bureaucratic and simple legislation compared to other countries, high level of harmonization of national legislation with international legislation, with the European Union in 2014 and in 2017 Free trade agreements signed with China, which allow a foreign investor to export products produced on behalf of Georgia to two of the world's largest markets without any problems. Due to the fact that one of the most important factors of production - "capital" - is needed to develop the economy, and the country does not have it at this stage, attracting forei
{"title":"THE ROLE OF FORING DIRECT INVESTMENTS IN THE ECONOMY AND THEIR STIMULATION MECHANISM","authors":"Alim Kherkhadze","doi":"10.52244/ep.2022.24.03","DOIUrl":"https://doi.org/10.52244/ep.2022.24.03","url":null,"abstract":"In the era of globalization, the attraction of foreign investments has become an important factor in promoting the economic growth of countries. Investors are constantly looking for favorable conditions for investing their capital, which involves a combination of several important factors. The investor, who is focused on getting the maximum profit with the minimum cost, before making an investment decision, will study the investment environment of the host country, the proximity to large key markets, the barriers to entry from the host country to international markets, the availability of production and energy resources, the level of political and economic stability, the number of labor force, qualifications, etc. .sh. In terms of investments in the modern world, two types of trends have been identified:\u0000\u00001. High-tech investments, which are mainly located in developed countries, due to the developed country's intellectual resources, key market and good opportunities for business development, and\u0000\u00002. Investment, which is focused on obtaining maximum profit at the expense of cheap resources and labor force, and there is no or minimal technical innovation in it.\u0000\u0000It is important for the state to attract such direct foreign investments, which will not only be focused on making profits, but will also ensure the raising of the qualifications of local staff, the introduction of technological innovations, and the social protection of employees.\u0000\u0000Thanks to the economic reforms implemented after the post-Soviet upheavals, Georgia has become an attractive place for foreign investment, however, due to the shortage of labor force and low qualifications, investments focused on cheap resources and labor force are entering the country more than high-tech ones. The entry of relatively large, high-tech investments is hindered, in addition to the scarcity of the country's workforce and relatively low qualifications, the low level of energy independence, the territories occupied by the Russian Federation of Georgia, the generally politically and economically unstable region (Tskhinvali, Abkhazia, Karabakh regions), the aggressive state - the Russian Federation. Neighborhood and high probability of potential armed conflicts. The positive factors that make Georgia attractive for foreign investors are a favorable geopolitical location with land access, moderate natural and climatic conditions, low level of corruption, less bureaucratic and simple legislation compared to other countries, high level of harmonization of national legislation with international legislation, with the European Union in 2014 and in 2017 Free trade agreements signed with China, which allow a foreign investor to export products produced on behalf of Georgia to two of the world's largest markets without any problems.\u0000\u0000Due to the fact that one of the most important factors of production - \"capital\" - is needed to develop the economy, and the country does not have it at this stage, attracting forei","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":"128961616","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}
This research analysed the impact of globalisation on Nigeria's economic growth and sustainable development. Financial globalisation has paved the opportunity for corporations and governments to get access to competitive sources of foreign funds. Rather than depending on investors in the domestic financial markets corporate entities and governments can take advantage of international investors in the global financial markets for essential money. The research utilised time series data. Data pertaining to economic growth and development were analysed utilising pertinent statistical data analysis methodologies. According to the research completed, it can be stated that financial globalisation influences economic growth and sustainable development in Nigeria. Due to access to external sources of capital, the study concluded that stringent regulation and strong policies on the part of regulators are required to sustain the benefits of financial globalisation.
{"title":"FINANCIAL GLOBALIZATION, ECONOMIC GROWTH AND SUSTAINABLE DEVELOPMENT IN EMERGING ECONOMY","authors":"Adeshola Olunuga","doi":"10.52244/ep.2022.24.02","DOIUrl":"https://doi.org/10.52244/ep.2022.24.02","url":null,"abstract":"This research analysed the impact of globalisation on Nigeria's economic growth and sustainable development. Financial globalisation has paved the opportunity for corporations and governments to get access to competitive sources of foreign funds. Rather than depending on investors in the domestic financial markets corporate entities and governments can take advantage of international investors in the global financial markets for essential money. The research utilised time series data. Data pertaining to economic growth and development were analysed utilising pertinent statistical data analysis methodologies. According to the research completed, it can be stated that financial globalisation influences economic growth and sustainable development in Nigeria. Due to access to external sources of capital, the study concluded that stringent regulation and strong policies on the part of regulators are required to sustain the benefits of financial globalisation.","PeriodicalId":344544,"journal":{"name":"Economic Profile","volume":"49 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":"127781525","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 financial crisis of 2008 was a major crisis after 1929. It reminded once again us about the contradictory nature of fractional reserve Banking. The Great Depression taught us that the financial crisis of 2008 would result in a substantial reduction in economic activity and a sharp deterioration of key economic indicators. To "avoid" recessionary risks, the Federal Reserve System and other central banks of developed countries actively adopted monetary easing measures. A large amount of money was injected into the credit system. At the initial stage, the "explanation" of the mentioned measure was liquidity and recession risks. However, the time has shown us that the number of “colored papers" does not create wealth, it only distributes it in favor of those who have the privilege to "spend" it first, until a quantitative increase of money will be reflected in prices. As expected, the unconventional monetary policy gave very conventional results: inflation, stagnation, and an overheated credit system. The results would be more unambiguous without the Russia-Ukraine war, which affected inflation in the EU. The results of the monetary experiment conducted after the financial crisis of 2008 and its consequences, once again showed us that finance does not create wealth, it only promotes, distributes, and insures it. Therefore, every attempt to improve the picture of the real economy with monetary interventions is futile and cannot change the final result. With monetary interventions, it is only possible to postpone the consequences of the crisis, at the expense of their aggravation and intensification.
{"title":"CONVENTIONAL RESULTS OF UNCONVENTIONAL MONETARY POLICY","authors":"Mirza Khidasheli","doi":"10.52244/ep.2022.24.06","DOIUrl":"https://doi.org/10.52244/ep.2022.24.06","url":null,"abstract":"The financial crisis of 2008 was a major crisis after 1929. It reminded once again us about the contradictory nature of fractional reserve Banking. The Great Depression taught us that the financial crisis of 2008 would result in a substantial reduction in economic activity and a sharp deterioration of key economic indicators. To \"avoid\" recessionary risks, the Federal Reserve System and other central banks of developed countries actively adopted monetary easing measures. A large amount of money was injected into the credit system. At the initial stage, the \"explanation\" of the mentioned measure was liquidity and recession risks. However, the time has shown us that the number of “colored papers\" does not create wealth, it only distributes it in favor of those who have the privilege to \"spend\" it first, until a quantitative increase of money will be reflected in prices. As expected, the unconventional monetary policy gave very conventional results: inflation, stagnation, and an overheated credit system. The results would be more unambiguous without the Russia-Ukraine war, which affected inflation in the EU. The results of the monetary experiment conducted after the financial crisis of 2008 and its consequences, once again showed us that finance does not create wealth, it only promotes, distributes, and insures it. Therefore, every attempt to improve the picture of the real economy with monetary interventions is futile and cannot change the final result. With monetary interventions, it is only possible to postpone the consequences of the crisis, at the expense of their aggravation and intensification.","PeriodicalId":344544,"journal":{"name":"Economic Profile","volume":"91 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":"117292393","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}
Achieving sustainable development goals may be overlooked amid the acute economic crisis created by the current pandemic and the Russia-Ukraine war. On September 25, 2015, the 193 member states of the United Nations reached an unprecedented agreement on the sustainable development document "Transforming our world: the 2030 Agenda for Sustainable Development", which includes 17 goals and 169 tasks (United Nations, 2020). The Sustainable Development Goals are based on three interrelated elements of sustainable development: economic growth, social inclusion and environmental protection. Whether Georgia will be able to be relevant to the tasks of sustainable development with its economic strategy, reforms and results is a highly important issue. If the country has resources that have not yet been identified or properly studied, then the government should urgently find every means to ensure the financing of those programs and initiatives that are intended to eliminate the mentioned problems and thus contribute to the advancement of the country's future, raising the standard of living of the population. and job creation. Citizens have the right to participate in decision-making processes, including at the local level. The right of citizen participation is directly related to the citizen's right to influence the exercise of government powers and responsibilities. It is precisely in the process of development and evaluation of public services that the involvement of citizens provides the basis for obtaining better results of the government's policy and promotes the strengthening of trust between citizens and the government. The authorities are obliged to provide the society with the necessary environmental protection information, and in case of request, to give them. Because without correct information it is practically impossible to form a free opinion.
{"title":"PROBLEMS AND PROSPECTS OF NATIONALIZATION AND IMPLEMENTATION OF SDG INDICATORS IN GEORGIA","authors":"Tsitsino Dzotsenidze, Z. Mushkudiani","doi":"10.52244/ep.2022.24.14","DOIUrl":"https://doi.org/10.52244/ep.2022.24.14","url":null,"abstract":"Achieving sustainable development goals may be overlooked amid the acute economic crisis created by the current pandemic and the Russia-Ukraine war. On September 25, 2015, the 193 member states of the United Nations reached an unprecedented agreement on the sustainable development document \"Transforming our world: the 2030 Agenda for Sustainable Development\", which includes 17 goals and 169 tasks (United Nations, 2020). The Sustainable Development Goals are based on three interrelated elements of sustainable development: economic growth, social inclusion and environmental protection.\u0000\u0000Whether Georgia will be able to be relevant to the tasks of sustainable development with its economic strategy, reforms and results is a highly important issue.\u0000\u0000If the country has resources that have not yet been identified or properly studied, then the government should urgently find every means to ensure the financing of those programs and initiatives that are intended to eliminate the mentioned problems and thus contribute to the advancement of the country's future, raising the standard of living of the population. and job creation. Citizens have the right to participate in decision-making processes, including at the local level. The right of citizen participation is directly related to the citizen's right to influence the exercise of government powers and responsibilities. It is precisely in the process of development and evaluation of public services that the involvement of citizens provides the basis for obtaining better results of the government's policy and promotes the strengthening of trust between citizens and the government. The authorities are obliged to provide the society with the necessary environmental protection information, and in case of request, to give them. Because without correct information it is practically impossible to form a free opinion.","PeriodicalId":344544,"journal":{"name":"Economic Profile","volume":"29 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":"124888675","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 Covid pandemic and hostilities developed in the post-Soviet space had a heavy impact on the world economy, sharply slowing economic growth and increasing socio-economic problems. The impact of current events has become a significant topic in terms of regional economies. The rather rich experience accumulated in the world has shown us that the management and development of the region should be based on the economic potential of a particular country, the historical past of economic and political life, cultural and natural-resource characteristics, which are the result of historical preconditions. From this point of view, Georgia is quite diverse and interesting country. This diversity and the rules and traditions of economic life formed on the basis of sharply different natural-economic conditions create the inequality of the state and trends of the development and competitiveness of the territorial-administrative units (parties) of the country. Our attention was drawn to the fact that the Imereti region is distinguished by low incomes of the population, high rates of migration processes and aging and, accordingly, high dependence on social assistance. Imereti region is located in the central part of Georgia, it is one of the most beautiful places. It occupies 9.4% of the territory of Georgia and unites 12 municipalities. Rather important positive factors of the region are: proximity to seaports and international airports, location on energy and automobile corridors, a high level of urbanization, a variety of minerals, favorable environmental conditions for the development of crops, various types of tourist and recreational resources. The real result is that today the actual weakness of Imereti region is the high level of unemployment and poverty. Less developed municipal services, commercial and business infrastructure, low level of professional development and qualification of the workforce, absence of effective natural disaster management system, limited rights of regional and local administrative structures, meager income and property resources. It is a fact that the region cannot effectively use the existing resources for the purpose of development. In order to strengthen agriculture and increase labor productivity, first of all small-land farms should be enlarged, which will contribute to the technical rearmament of the sector and the intensification of production. It is a sad reality that Imereti is considered a region significantly dependent on social assistance. Not only the unemployed, but also the majority of employed people are socially vulnerable, because the payment is quite low. A similar situation is a problem not only in Imereti, but in the entire country. The post-pandemic period is characterized by price increases and unstable inflationary processes, the influence of both internal and external factors is great. Revealing the low standard of living and poverty should not become the main goal. There is constant talk ab
{"title":"SOME ASPECTS OF THE SOCIO-ECONOMIC SITUATION OF IMERETI","authors":"Naira Virsaladze, Malvina Kipiani","doi":"10.52244/ep.2022.24.04","DOIUrl":"https://doi.org/10.52244/ep.2022.24.04","url":null,"abstract":"The Covid pandemic and hostilities developed in the post-Soviet space had a heavy impact on the world economy, sharply slowing economic growth and increasing socio-economic problems. The impact of current events has become a significant topic in terms of regional economies.\u0000\u0000The rather rich experience accumulated in the world has shown us that the management and development of the region should be based on the economic potential of a particular country, the historical past of economic and political life, cultural and natural-resource characteristics, which are the result of historical preconditions. From this point of view, Georgia is quite diverse and interesting country.\u0000\u0000This diversity and the rules and traditions of economic life formed on the basis of sharply different natural-economic conditions create the inequality of the state and trends of the development and competitiveness of the territorial-administrative units (parties) of the country.\u0000\u0000Our attention was drawn to the fact that the Imereti region is distinguished by low incomes of the population, high rates of migration processes and aging and, accordingly, high dependence on social assistance.\u0000\u0000Imereti region is located in the central part of Georgia, it is one of the most beautiful places. It occupies 9.4% of the territory of Georgia and unites 12 municipalities. Rather important positive factors of the region are: proximity to seaports and international airports, location on energy and automobile corridors, a high level of urbanization, a variety of minerals, favorable environmental conditions for the development of crops, various types of tourist and recreational resources.\u0000\u0000The real result is that today the actual weakness of Imereti region is the high level of unemployment and poverty. Less developed municipal services, commercial and business infrastructure, low level of professional development and qualification of the workforce, absence of effective natural disaster management system, limited rights of regional and local administrative structures, meager income and property resources.\u0000\u0000It is a fact that the region cannot effectively use the existing resources for the purpose of development. In order to strengthen agriculture and increase labor productivity, first of all small-land farms should be enlarged, which will contribute to the technical rearmament of the sector and the intensification of production.\u0000\u0000It is a sad reality that Imereti is considered a region significantly dependent on social assistance. Not only the unemployed, but also the majority of employed people are socially vulnerable, because the payment is quite low. A similar situation is a problem not only in Imereti, but in the entire country.\u0000\u0000The post-pandemic period is characterized by price increases and unstable inflationary processes, the influence of both internal and external factors is great. Revealing the low standard of living and poverty should not become the main goal.\u0000\u0000There is constant talk ab","PeriodicalId":344544,"journal":{"name":"Economic Profile","volume":"36 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":"121649388","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 establishment of a modern European standard corporate reporting system in Georgia, which represents the country's commitment under the "Association Agreement", is, in turn, an important stimulating factor for attracting additional investments, business development, creating new jobs and, ultimately, increasing social well-being. For the introduction of a modern corporate reporting system, one of the most important prerequisites is to bring the national legislation and regulatory norms into compliance with the relevant European regulations. Such is the Directive 2013/34/EU of the European Parliament and the Council - "On annual financial statements, consolidated financial statements and related reports of certain categories of enterprises" and Regulation N1606/2002 of the European Parliament and the Council of July 19, 2002 on the application of international accounting standards. This regulation establishes that in the member states of the Union, the consolidated statements of open joint-stock companies must be prepared in accordance with international accounting standards. In addition, member states have the right to allow or require the same obligation from closed joint-stock companies. Directive 2013/34/EU establishes that the requirements contained therein shall apply to the laws, regulations and administrative provisions of the Member States and shall apply to private and public companies which have share capital or whose owners are enterprises with share capital. The directive contains the definitions of the main concepts, the criteria for determining the size category of enterprises, as well as the list of organizations to be included in the category of Public-interest entity. The accounting standard to be used for each category of entity, the list of mandatorily prepared reports and the rules of their preparation and publication are established. The directive allows the member states to use simplified forms of reporting for small enterprises and provides specific approaches and instructions as to which articles/points should be combined to simplify the reporting forms. On June 8, 2016, the Parliament of Georgia approved the law on Accounting, Reporting and Auditing, however, if we look at the date of entry into force of the Association Agreement (July 01, 2016) and the date of adoption of the law, as well as the deadlines for the implementation of the main obligation defined by this law, we can conclude that Obligations under the association agreement are fulfilled within the relevant time frame. The law, as defining the categories of enterprises, as established the obligation of them to prepare and submit financial statements, as well as to publish them for public stakeholders, for enterprises of the first, second and third categories. And the enterprises of the fourth category have the obligation to submit to the Accounting, Reporting and Audit Supervision Service (SARAS) the statement prepared in accordance with the simplifie
{"title":"ASSESSMENT OF THE COMPLIANCE OF THE NATIONAL LEGISLATION OF CORPORATE REPORTING SYSTEM WITH THE REQUIREMENTS OF THE EUROPEAN DIRECTIVES","authors":"P. Kldiashvili","doi":"10.52244/ep.2022.24.15","DOIUrl":"https://doi.org/10.52244/ep.2022.24.15","url":null,"abstract":"The establishment of a modern European standard corporate reporting system in Georgia, which represents the country's commitment under the \"Association Agreement\", is, in turn, an important stimulating factor for attracting additional investments, business development, creating new jobs and, ultimately, increasing social well-being.\u0000\u0000For the introduction of a modern corporate reporting system, one of the most important prerequisites is to bring the national legislation and regulatory norms into compliance with the relevant European regulations. Such is the Directive 2013/34/EU of the European Parliament and the Council - \"On annual financial statements, consolidated financial statements and related reports of certain categories of enterprises\" and Regulation N1606/2002 of the European Parliament and the Council of July 19, 2002 on the application of international accounting standards. This regulation establishes that in the member states of the Union, the consolidated statements of open joint-stock companies must be prepared in accordance with international accounting standards. In addition, member states have the right to allow or require the same obligation from closed joint-stock companies.\u0000\u0000Directive 2013/34/EU establishes that the requirements contained therein shall apply to the laws, regulations and administrative provisions of the Member States and shall apply to private and public companies which have share capital or whose owners are enterprises with share capital.\u0000\u0000The directive contains the definitions of the main concepts, the criteria for determining the size category of enterprises, as well as the list of organizations to be included in the category of Public-interest entity. The accounting standard to be used for each category of entity, the list of mandatorily prepared reports and the rules of their preparation and publication are established.\u0000\u0000The directive allows the member states to use simplified forms of reporting for small enterprises and provides specific approaches and instructions as to which articles/points should be combined to simplify the reporting forms.\u0000\u0000On June 8, 2016, the Parliament of Georgia approved the law on Accounting, Reporting and Auditing, however, if we look at the date of entry into force of the Association Agreement (July 01, 2016) and the date of adoption of the law, as well as the deadlines for the implementation of the main obligation defined by this law, we can conclude that Obligations under the association agreement are fulfilled within the relevant time frame.\u0000\u0000The law, as defining the categories of enterprises, as established the obligation of them to prepare and submit financial statements, as well as to publish them for public stakeholders, for enterprises of the first, second and third categories. And the enterprises of the fourth category have the obligation to submit to the Accounting, Reporting and Audit Supervision Service (SARAS) the statement prepared in accordance with the simplifie","PeriodicalId":344544,"journal":{"name":"Economic Profile","volume":"251 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":"115951780","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}
Agriculture, despite the relative stabilization of recent years, is still the weakest link in the Georgian economy. This is evidenced by the country's low level of self-sufficiency in many types of agricultural products (for wheat - 22%, for corn – 74%, for vegetables – 61%, for meat - 51%) and its high dependence on imports. In the first 9 months of 2022 alone, the negative balance in foreign trade in agricultural and food products amounted to 385.8 million US dollars, which negatively affects both the macroeconomic state of the economy and the country's exchange rate. Due to the rise in prices for oil products on the world market, Georgia had to pay USD 440 million more in January-September 2022 compared to the corresponding period last year, of which only less than 1/5 was due to economic growth, and the rest “was a merit” of the rise in oil prices. The uncultivated land area remains too large (up to 60%), which, along with other reasons, is due to the rise in the cost of material resources for the production of agricultural products (mineral fertilizers, pesticides, agricultural machinery, fuel). Due to the virtual lack of domestically produced non-ferrous products, the government can only regulate the price of fuel for farmers through the regulation of taxes (excise, VAT). Many countries follow the practice of returning part or all of the cost of fuel to farmers involved in the implementation of government programs or orders. In some countries, the state fully (Sweden) or partially (USA, Germany, etc.) covers the cost of fuel used for agricultural work. In our opinion, it is most acceptable for Georgia to subsidize diesel fuel purchased for agricultural work by manipulating indirect taxes (excise, VAT), for which it is necessary to develop a transparent mechanism for its use. An appropriate law should be adopted by the Parliament of Georgia. Appropriate subsidies should be extended exclusively to farmers involved in the relevant state programs (orders), as well as to the production associations created by them - cooperatives. The excise tax on 1 kg of fuel in Georgia is currently 44 tetri, and on one liter of fuel, respectively, 36.7 tetri. At the same time, if the amount of excise tax per liter of fuel is a constant value, VAT, on the contrary, is a variable value and in each specific case an individual calculation is required. We consider it lawful that the subsidization was at least 1.50 lari per liter of diesel fuel. At prices for October 2022, one liter of diesel fuel costs 4.10 GEL. To cultivate 5 hectares of arable land, a farmer needs approximately 100 liters of fuel, i.e. fuel worth 410 GEL. By subsidizing 1 liter of fuel in the amount of 1.50 GEL, the farmer can save 150 GEL, buying 100 liters of fuel will cost only 260 GEL (= 410-150), i.e. more than 1/3. It seems that in order to reduce the cost of agricultural work, the same work should be carried out in other areas (plowing, milling, sowing ...), which are currently est
{"title":"ABOUT ONE ASPECT OF STATE SUPPORT FOR FARMS","authors":"P. Koguashvili, Joseph Archvadze, N. Chikhladze","doi":"10.52244/ep.2022.24.05","DOIUrl":"https://doi.org/10.52244/ep.2022.24.05","url":null,"abstract":"Agriculture, despite the relative stabilization of recent years, is still the weakest link in the Georgian economy. This is evidenced by the country's low level of self-sufficiency in many types of agricultural products (for wheat - 22%, for corn – 74%, for vegetables – 61%, for meat - 51%) and its high dependence on imports. In the first 9 months of 2022 alone, the negative balance in foreign trade in agricultural and food products amounted to 385.8 million US dollars, which negatively affects both the macroeconomic state of the economy and the country's exchange rate.\u0000\u0000Due to the rise in prices for oil products on the world market, Georgia had to pay USD 440 million more in January-September 2022 compared to the corresponding period last year, of which only less than 1/5 was due to economic growth, and the rest “was a merit” of the rise in oil prices.\u0000\u0000The uncultivated land area remains too large (up to 60%), which, along with other reasons, is due to the rise in the cost of material resources for the production of agricultural products (mineral fertilizers, pesticides, agricultural machinery, fuel).\u0000\u0000Due to the virtual lack of domestically produced non-ferrous products, the government can only regulate the price of fuel for farmers through the regulation of taxes (excise, VAT).\u0000\u0000Many countries follow the practice of returning part or all of the cost of fuel to farmers involved in the implementation of government programs or orders. In some countries, the state fully (Sweden) or partially (USA, Germany, etc.) covers the cost of fuel used for agricultural work.\u0000\u0000In our opinion, it is most acceptable for Georgia to subsidize diesel fuel purchased for agricultural work by manipulating indirect taxes (excise, VAT), for which it is necessary to develop a transparent mechanism for its use. An appropriate law should be adopted by the Parliament of Georgia. Appropriate subsidies should be extended exclusively to farmers involved in the relevant state programs (orders), as well as to the production associations created by them - cooperatives.\u0000\u0000The excise tax on 1 kg of fuel in Georgia is currently 44 tetri, and on one liter of fuel, respectively, 36.7 tetri. At the same time, if the amount of excise tax per liter of fuel is a constant value, VAT, on the contrary, is a variable value and in each specific case an individual calculation is required.\u0000\u0000We consider it lawful that the subsidization was at least 1.50 lari per liter of diesel fuel. At prices for October 2022, one liter of diesel fuel costs 4.10 GEL. To cultivate 5 hectares of arable land, a farmer needs approximately 100 liters of fuel, i.e. fuel worth 410 GEL. By subsidizing 1 liter of fuel in the amount of 1.50 GEL, the farmer can save 150 GEL, buying 100 liters of fuel will cost only 260 GEL (= 410-150), i.e. more than 1/3.\u0000\u0000It seems that in order to reduce the cost of agricultural work, the same work should be carried out in other areas (plowing, milling, sowing ...), which are currently est","PeriodicalId":344544,"journal":{"name":"Economic Profile","volume":"61 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":"128508885","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 Coronavirus along with other sectors of the economy, has caused great damage to the tourism sector and related industries. The number of international tourists decreased by 0.7% in February 2020 compared to 2019. The decrease in the number of visitors has affected the restaurant business, airlines, shopping and catering establishments. In 2020 with the period before the pandemic, the number of employees in hotels throughout Georgia decreased by 17 000 people. According to the statistical data the increase was recorded in the 2nd quarter of 2022. The same trends were observed in the research region in particular in Imereti in 2019. In the mentioned sector by 2020, 2536 people were employed and their number decreased to 1725. By 2021 a slight increase was recorded in amount to 1745 people. In 2021, the highest rate of domestic visitors was recorded, both in the country as a whole and in the regions that exceeded the pre-pandemic period. An increase of 34 000 was recorded in Imereti alone, and the increases of 314 000 in the country as a whole. It were caused by broader crossing restrictions. Although, the income from international tourism decreased significantly during the research period, the opposite result was observed in the case of local visitors, the expense within the country increased significantly and reached 226 million GEL, higher than the same period before the pandemic with is 73,5 million GEL. In post-pandemic conditions, tourism and its separate sector are being revitalized, both in Georgia and in the world as a whole. According to the National Tourism Agency the number of visitors to Georgia in 2022 is promising. In March 2022 211 484 visitors arrived, which is 210,6% higher than the previous years and comprises 48,5% of March of 2019. Difficulties arose in the process of renewal of work in the tourism sector of Georgia. Domestic tourism resumed on schedule, but resumption of international travel was delayed. From June 8, 2021, hotels were allowed to resume operations; Intercity transport was restored. The railway resumed operations on June 15. The final phase of the opening of domestic tourism was marked by the resumption of domestic flights from July 24. On July 8, Georgia opened its borders to 5 European countries (Germany, France, Estonia, Lithuania and Latvia). The mutual unconditional opening of the borders with the mentioned countries was caused by the fact that Georgia was included in the list of 15 safe countries for travel published by the European Union on June 30. To date, the flow of passengers in all three international airports of Georgia has almost equaled the period before the pandemic, in particular, according to the data of the 8th month of 2022, Kutaisi airport recorded a 95% recovery of the same period of 2019, Batumi airport - 94%, and Tbilisi airport - 74%. In 2022, the rapid recovery of the tourism sector began everywhere, including Georgia. An accelerated pace of tourism recovery has been observed in
{"title":"TRENDS IN THE RECOVERY OF THE TOURISM INDUSTRY (ON THE EXAMPLE OF IMERETI)","authors":"T. Davituliani, Maia Azmaipharashvili","doi":"10.52244/ep.2022.24.09","DOIUrl":"https://doi.org/10.52244/ep.2022.24.09","url":null,"abstract":"The Coronavirus along with other sectors of the economy, has caused great damage to the tourism sector and related industries. The number of international tourists decreased by 0.7% in February 2020 compared to 2019. The decrease in the number of visitors has affected the restaurant business, airlines, shopping and catering establishments. In 2020 with the period before the pandemic, the number of employees in hotels throughout Georgia decreased by 17 000 people. According to the statistical data the increase was recorded in the 2nd quarter of 2022. The same trends were observed in the research region in particular in Imereti in 2019. In the mentioned sector by 2020, 2536 people were employed and their number decreased to 1725. By 2021 a slight increase was recorded in amount to 1745 people. In 2021, the highest rate of domestic visitors was recorded, both in the country as a whole and in the regions that exceeded the pre-pandemic period. An increase of 34 000 was recorded in Imereti alone, and the increases of 314 000 in the country as a whole. It were caused by broader crossing restrictions. Although, the income from international tourism decreased significantly during the research period, the opposite result was observed in the case of local visitors, the expense within the country increased significantly and reached 226 million GEL, higher than the same period before the pandemic with is 73,5 million GEL.\u0000\u0000In post-pandemic conditions, tourism and its separate sector are being revitalized, both in Georgia and in the world as a whole. According to the National Tourism Agency the number of visitors to Georgia in 2022 is promising. In March 2022 211 484 visitors arrived, which is 210,6% higher than the previous years and comprises 48,5% of March of 2019.\u0000\u0000Difficulties arose in the process of renewal of work in the tourism sector of Georgia. Domestic tourism resumed on schedule, but resumption of international travel was delayed. From June 8, 2021, hotels were allowed to resume operations; Intercity transport was restored. The railway resumed operations on June 15. The final phase of the opening of domestic tourism was marked by the resumption of domestic flights from July 24. On July 8, Georgia opened its borders to 5 European countries (Germany, France, Estonia, Lithuania and Latvia). The mutual unconditional opening of the borders with the mentioned countries was caused by the fact that Georgia was included in the list of 15 safe countries for travel published by the European Union on June 30. To date, the flow of passengers in all three international airports of Georgia has almost equaled the period before the pandemic, in particular, according to the data of the 8th month of 2022, Kutaisi airport recorded a 95% recovery of the same period of 2019, Batumi airport - 94%, and Tbilisi airport - 74%.\u0000\u0000In 2022, the rapid recovery of the tourism sector began everywhere, including Georgia. An accelerated pace of tourism recovery has been observed in ","PeriodicalId":344544,"journal":{"name":"Economic Profile","volume":"10 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":"129189450","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 role of international financial institutions is recognized in the modern world and even today the global world depends on the finances of financial organizations, because they play a major role in the accumulation, availability and distribution of finance, and some international financial organizations help publicly And has become an essential aid component at the modern stage, especially during the Kovid-19 pandemic and the Russia-Ukraine conflict. International financial organizations are often cited as the world's most powerful agents of economic reform (Halliday and Carruthers, 2007:1135-1202). The role of international financial organizations is also special for Georgia, it can be said for developing countries in general, of course developed countries are not excluded, but access to finance and technical assistance is often needed by poor, transition or developing economies. The role of international financial organizations increased especially after the Second World War, in fact, in 1944, and the Bretton Woods Conference is considered the birthplace of international financial organizations, as there were no such financial organizations before, however, the formation of such organizations Financial condition. We will not discuss the origins of organizations in this topic, but it should be noted that the International Monetary Fund and the World Bank, established under the Bretton Woods Conference, are still major players in the process of globalization and economic rapprochement with various international or regional financial organizations. At the same time, the International Monetary Fund is constantly introducing new standards in the face of modern challenges and adapting in the face of crises and challenges, assisting in implementation and conducting monetary policy, of course, taking into account the specifics of the country. It should also be noted that the opinion of scientists and experts often does not coincide with the policies of international financial organizations, even the International Monetary Fund in some cases, because local factors are ignored, which will be discussed in the main text, according to some examples. As for the World Bank Group, it mainly accredits countries with various types of loans and often plays an important role in stimulating the economy of a particular country - by financing infrastructure, energy and investment projects. It should be noted that intercity and urban infrastructure in Georgia is mainly financed by international financial organizations, including the construction of highways, municipal infrastructure, drainage systems, sidewalks and municipal transport development (For example, KFW-funded projects are important for the city of Batumi). The Asian Development Bank mainly finances the construction of the Central Highway, etc. Of course, such list is much broader and a matter of separate research, but we understand that it would be difficult for the state to finance such projects on
{"title":"THE ROLE OF INTERNATIONAL FINANCIAL ORGANIZATIONS IN STIMULATING THE ECONOMY","authors":"Lasha Beridze","doi":"10.52244/ep.2022.23.08","DOIUrl":"https://doi.org/10.52244/ep.2022.23.08","url":null,"abstract":"The role of international financial institutions is recognized in the modern world and even today the global world depends on the finances of financial organizations, because they play a major role in the accumulation, availability and distribution of finance, and some international financial organizations help publicly And has become an essential aid component at the modern stage, especially during the Kovid-19 pandemic and the Russia-Ukraine conflict. International financial organizations are often cited as the world's most powerful agents of economic reform (Halliday and Carruthers, 2007:1135-1202).\u0000\u0000The role of international financial organizations is also special for Georgia, it can be said for developing countries in general, of course developed countries are not excluded, but access to finance and technical assistance is often needed by poor, transition or developing economies.\u0000\u0000The role of international financial organizations increased especially after the Second World War, in fact, in 1944, and the Bretton Woods Conference is considered the birthplace of international financial organizations, as there were no such financial organizations before, however, the formation of such organizations Financial condition. We will not discuss the origins of organizations in this topic, but it should be noted that the International Monetary Fund and the World Bank, established under the Bretton Woods Conference, are still major players in the process of globalization and economic rapprochement with various international or regional financial organizations. At the same time, the International Monetary Fund is constantly introducing new standards in the face of modern challenges and adapting in the face of crises and challenges, assisting in implementation and conducting monetary policy, of course, taking into account the specifics of the country. It should also be noted that the opinion of scientists and experts often does not coincide with the policies of international financial organizations, even the International Monetary Fund in some cases, because local factors are ignored, which will be discussed in the main text, according to some examples.\u0000\u0000As for the World Bank Group, it mainly accredits countries with various types of loans and often plays an important role in stimulating the economy of a particular country - by financing infrastructure, energy and investment projects.\u0000\u0000It should be noted that intercity and urban infrastructure in Georgia is mainly financed by international financial organizations, including the construction of highways, municipal infrastructure, drainage systems, sidewalks and municipal transport development (For example, KFW-funded projects are important for the city of Batumi). The Asian Development Bank mainly finances the construction of the Central Highway, etc. Of course, such list is much broader and a matter of separate research, but we understand that it would be difficult for the state to finance such projects on","PeriodicalId":344544,"journal":{"name":"Economic Profile","volume":"21 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-08-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121780877","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}
Land is the vital base of a nation. Land is not only a natural economic resource, but also a special cultural and social basis for establishing our identity. Land is also the creative space of a nation. Among the many challenges facing to the Georgian state today is resolving the land issue. The issue of land is most fundamentally linked to the fate of the country, as territorial identity is the ground of national consciousness, and its maintenance is impossible without regulating land ownership and land use. The primary attribute of the creation of a state is the possession of a certain territory, and the determining factor in the strength of the state is a detailed study of the wealth of this territory, its successful management and the development of a strategy for the development of the country. It all depends a lot on who lives in the area and how it is managed. Therefore, the issue of land management and accounting is vital not only for our country, but for all countries of the world and for humanity in general. The historical aspiration of the Georgian state to become a full member of the European family, which includes the integration and compatibility of various fields or spheres with European standards. There is also the area of land administration. The ongoing democratic transformations in Georgia and the need to fully manage land reform, as one of its organic and important components, have raised the issue of improving the land market formation-development mechanism. World experience shows that the formation of the land market should be preceded by the creation of a unified state information system, a comprehensive land code, a land registration system, a land cadastre, which legally secures the land market. The development of the land (real estate) market should be preceded by land registration and cadastre, which are interrelated systems and complement each other. The Cadastre and all other registers containing officially registered data on land and land ownership constitute the land administration infrastructure. Cadastre is a French word meaning a description of something, a set of data about something. Cadastre This is a set of data compiled by an official body or agency (eg land, water, forestry, city, etc. cadastre). The land cadastre is used in a dual sense - narrow and territorial in the narrow sense, cadastral data are accurate graphical and textual information about the configuration and location of the border of the land, buildings on it, including a linear construction, as well as easements or other legal restrictions. And in a broad sense, a land cadastre is a set of data that includes information about the natural, economic, legal, environmental, economic state of the land and answers the questions "Who? Where? How much? How?" The land registry is to some extent maintained by the LEPP - the National Public Registry Agency. The land registry prepared by the agency answers the questions: Where? whose? How much? Thi
{"title":"INFORMATION PROVISION OF LAND ADMINISTRATION","authors":"A. Chipashvili","doi":"10.52244/ep.2022.23.01","DOIUrl":"https://doi.org/10.52244/ep.2022.23.01","url":null,"abstract":"Land is the vital base of a nation. Land is not only a natural economic resource, but also a special cultural and social basis for establishing our identity. Land is also the creative space of a nation. Among the many challenges facing to the Georgian state today is resolving the land issue. The issue of land is most fundamentally linked to the fate of the country, as territorial identity is the ground of national consciousness, and its maintenance is impossible without regulating land ownership and land use.\u0000\u0000The primary attribute of the creation of a state is the possession of a certain territory, and the determining factor in the strength of the state is a detailed study of the wealth of this territory, its successful management and the development of a strategy for the development of the country. It all depends a lot on who lives in the area and how it is managed. Therefore, the issue of land management and accounting is vital not only for our country, but for all countries of the world and for humanity in general.\u0000\u0000The historical aspiration of the Georgian state to become a full member of the European family, which includes the integration and compatibility of various fields or spheres with European standards. There is also the area of land administration.\u0000\u0000The ongoing democratic transformations in Georgia and the need to fully manage land reform, as one of its organic and important components, have raised the issue of improving the land market formation-development mechanism. World experience shows that the formation of the land market should be preceded by the creation of a unified state information system, a comprehensive land code, a land registration system, a land cadastre, which legally secures the land market. The development of the land (real estate) market should be preceded by land registration and cadastre, which are interrelated systems and complement each other.\u0000\u0000The Cadastre and all other registers containing officially registered data on land and land ownership constitute the land administration infrastructure.\u0000\u0000Cadastre is a French word meaning a description of something, a set of data about something. Cadastre This is a set of data compiled by an official body or agency (eg land, water, forestry, city, etc. cadastre).\u0000\u0000The land cadastre is used in a dual sense - narrow and territorial in the narrow sense, cadastral data are accurate graphical and textual information about the configuration and location of the border of the land, buildings on it, including a linear construction, as well as easements or other legal restrictions. And in a broad sense, a land cadastre is a set of data that includes information about the natural, economic, legal, environmental, economic state of the land and answers the questions \"Who? Where? How much? How?\"\u0000\u0000The land registry is to some extent maintained by the LEPP - the National Public Registry Agency. The land registry prepared by the agency answers the questions: Where? whose? How much? Thi","PeriodicalId":344544,"journal":{"name":"Economic Profile","volume":"10 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2022-08-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130012351","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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