Browsing by Author "Mekvabishvili, Elguja"
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Item Deposits, banks and โthe initial accumulation of capitalโ in post-communist Georgia(Ivane Javakhishvili Tbilisi State University Press, 2019) Mekvabishvili, ElgujaIn the post-communist transitional period, the administrative-commanding (โsocialistโ) economy is being transformed into a capitalist market economy. โThe initial accumulation of capitalโ is a part of this process, which has been carried out to a certain extent in every post-communist country and was expressed in deep socio-economic differentiation of the society. In Georgia it had a particularly acute nature in Georgia and the banking system was organically involved in this process. In the work there is given an attempt to answer the following questions: How was the new Georgian capital created? What are the ways of enriching a small part of the population and impoverishing of the vast majority of the population? Where did the huge amount of money deposited in banks by the population during the Soviet period go? To whom was transferred the largest share of the former state property? Based on the conducted research, the following conclusions are made in the article: In the Soviet period Georgia did not have an independent banking system and money circulation was fully controlled by the Central Bank of the Soviet Union. The reforms in banking sphere were started by Z. Gamsakhurdiaโs government. The ๏ฌrst steps were taken ๏ฌrst in the direction of the formation of two-er and then to three-er banking structures, but the military coup slowed down this process. The planned economy collapsed with the dissolution of the Soviet Union, and the economic relations which were intertwined between the former allied republics broke. Under such conditions emerged the hidden in๏ฌation which subsequently developed into hyperin๏ฌation. Depositors frightened by the danger of losing their savings, raced to banks to withdraw their money but they were unable to receive their own money, since the issuer of the ruble was a former metropolis โ Russia which did not give Georgia money banknotes anymore. Hyperin๏ฌation โateโ most of 13 billion of rubles that had been deposited in the bank by population during the Soviet period, but some part of the savings had not gone away without a trace, but it turned out in the hands of a small group of โcrayโ people. This fact was contributed signi๏ฌcantly by the sluggishness of the then-government and to a certain degree its criminal policy. The example of the latter can be considered the National Bankโs so-called โsoโ monetary policy, under which the National Bank gave the absolutely unreasonable amount of credit. The largest part of them ๏ฌew to the โCaucasian Exchangeโ, and then by currency manipulations was converted to dollars, then dollars were transformed into rubles, then coupons, the latter again to dollars, and so on. This was the in๏ฌation spiral through which certain individuals got rich but the vast majority of the population got poor, and the economy was collapsing. The role of banks privatization was important in populationโs impoverishment. In this process the absolutely most of the funds in the banks appeared in the hands of their leadership. Today it is absolutely clear that, as a result of privatization carried out at the initial stage of post-communist transformation, in Georgia, it was established not only โmarket economyโ but also โmarket societyโ, which is distinguished by the sharply expressed economic (property, income) diversi๏ฌcation and high degree of social injustice. Over the past three decades, populationโs economic and social di๏ฌerentiation in our country has not decreased, but it increased on the contrary and the civilized and socially oriented market economy remains a distant prospect for todayโs population of Georgia.Item Opportunities and challenges of the โnew financial realityโ in post-pandemic conditions (political-economic aspect)(Ivane Javakhishvili Tbilisi State University Press, 2023) Mekvabishvili, ElgujaThe article discusses a new economic phenomenon called the new financial reality. It includes three elements: increase in state budget expenditures and as a result - increase in state debt; excessive monetary emission and low interest rates. The new financial reality is one of the mechanisms for solving crisis and post-crisis problems, as well as the logical result of deep structural changes in the economy of post-industrial countries. The new monetary theory (MMT) is presented as the theoretical- methodological basis of the new financial reality. Its positive sides and shortcomings are shown. The opinion is expressed that the actualization of the new financial reality and the new monetary theory indicates a paradigm shift in economic theory from the neoliberal-neoclassical theory to the updated Keynesian theory. In economic policy, it means replacing Thatcherism and Reaganomics with policies similar to F.D. Roosevelt's "New Deal~. Two threats arising from the new financial reality are distinguished: the strengthening of inflationary processes and the revival of the idea of a "big state~. Some measures are proposed to overcome these threats.Item The paradoxes of economic globalization(Ivane Javakhishvili Tbilisi State University Press, 2021) Mekvabishvili, ElgujaThe economic globalization began in the 1990s. It was caused by fundamental changes in the technical and technological basics of the industrialized and post-industrial countries economies. An important role was played by the radical change of approaches in economic theory and economic policy. The idea was formed that global markets could successfully replace national markets, and superpower structures could change the economic functions of the nation state. An overly optimistic attitude towards the economic globalization was formed, which was based on the possibility of solving three most important problems of this process: a) ensuring the stable crisis-free development of the world economy; b) accelerating economic growth; c) mitigation of social inequality between different regions of the world. The past period of economic globalization has shown that the above-mentioned problems have not been solved, but on the contrary, aggravated, which should be considered as a paradox of economic globalization. The COVID-19 pandemic crisis has deepened the characteristic contradictions of globalization. One part of the researchers came to the conclusion that the era of globalization is over and it is inevitable to replace it with some alternative processes. This paper critiques such views and notes, that the economic globalization is an objective process. Despite some obstacles, it will continue constantly now and in the future. In this case, it is possible to discuss the replacement of the existing neoliberal model of economic globalization with another model, that more adequately reflects the reality created in the modern world.