Faculty of Economics and Business

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2019 budget, fiscal risks
(Ivane Javakhishvili Tbilisi State University Press, 2019) Chikviladze, Mikheil
2019 State Budget, Fiscal Risks includes analysis of amendments to “the Law of Georgia on State Budget 2019“, discusses conceptual issues of new distribution of VAT on budgets of local, territorial units ‘’municipalities“, it also emphasizes the state debt , depreciation, negative events of economic shock, fiscal risk analysis of 2019 is also made.
About common and distinctive signs of the terms “international business” and “international management”
(Ivane Javakhishvili Tbilisi State University Press, 2021) Tugushi, Miron
There is not any similar understanding of the content of the concepts of “International Business” and “International Management”. When figuratively speaking, “Business” and “Management” are two sides of the same coin. One is the management system and the other is the managing (controlling) system. There is no business without management and vice versa. There are a lot of essential differences between running business within the frames of one country and commercial activity on the International arena, and these differences form necessity of adequate changes in management system. The main goal of “International Business” is to gain much more profit between organizations operating in different (two or more) countries than it is possible within one country as a result of business interdependencies and business operations (firms, companies, corporations and their branches). International Management is a special type of management, the main goals of which are to form, develop and use the competitive advantages of international business organizations (their branches) based on doing business in different countries; As well as study of the economic, social, demographic, cultural and other peculiarities of these countries in-depth and use them to develop their own business activities. Successful salvation of the above mentioned tasks requires from International Managers and others, increasing of their cultural awareness and knowledge of global thinking.
About customers attitude towards service in retail stores
(Science Events Ltd, 2020) Seturi, Maia
Customer service in retail stores is of great importance in creating customer satisfaction. The needs of Georgian consumers in the services offered in stores are changing. Today, consumers are often well informed. Customers want and expect to receive quality products, provide the right level of service and much more. Along with buying the products they need, consumers also expect the buying process to be enjoyable and convenient for them. Existing retail stores that compete with each other contribute to increasing consumer expectations. Personal communication is very important in sales. Sales staff practically helps people make the right choice. The aim of our research - to study the attitude of consumers to the services available in stores, to the sales methods and to the staff. Based on the results of the study, a number of shortcomings were identified. The final part of the article presents our main recommendations that will help retail stores improve their operations.
About effective cash flow management of the company
(Ivane Javakhishvili Tbilisi State University Press, 2021) Barbakadze, Khatuna; Kakakshvili, Nato
Managing company’s cash flow is part of the financial activities that are important to the overall stability of the business. Competition between companies makes it difficult to increase profit as well as maintain positive cash flows. While the main goal of companies is to increase profit and market share, less attention is paid to forecasting and managing cash flows. Cash flow is a driving force for any company and developing the right management strategy is vital to any sector of the economy. The aim of the research is to discuss the theoretical-methodological aspects related to cash flow management and to evaluate the factors affecting cash flow in order to improve the company’s cash flow management. Based on the consideration of cash flow measurement and reporting methods, we can say that these methods differ from each other only by the specifics of calculating cash flows obtained from operating activities. If the direct method of incoming and outgoing cash flows occurs directly, in the indirect method, the financial result of the company, profit, is adjusted for non-cash items and we receive the net cash flow. This method is much more informative for the company’s management as it shows the relationship between the profit earned and the cash flow. A review of money management models allows us to say that the advantages of the Miller-Orr model over the Baumol model lie in the realistic assumptions, namely that the Miller-Orr model does not allow an equal amount of cash flow to be found in the Baumol model. Conversely, the Miller-Orr model assumes that cash flows fluctuate over time, which is, of course, much more realistic. Therefore, this model is more usable than the Baumol model.
About population growth and global problems
(Ivane Javakhishvili Tbilisi State University Press, 2021) Veshapidze, Shota; Zubiashvili, Tamaz
Population growth is a trend in the modern world economy. Its growth rate is gradually decreasing significantly. Differences in population growth rates are observed between developed, developing and transition economies. In developed countries, declining fertility and expected life expectancy are leading to the stabilization of population size and aging. International migration is becoming an important source of population growth in these countries. In many developing countries, high population growth rates are maintained. Many developing countries are less able to cope with the problems caused by the growing population, which is related to the provision of adequate income, food security, employment and basic social services for the growing population. In addition, the proper management of natural resources, which in many developing countries have traditionally ensured the survival of a large part of the population, is of great importance. Georgia, like other countries with economies in transition, has been in a deep economic crisis since the 1990s, when the country began to transition from a planned economic system to a market economy. Living conditions in the country have deteriorated and the population has decreased. Population growth is a precondition for the emergence of global poverty, food and environmental problems. In order to overcome these challenges, it is important to strengthen the joint efforts and take into account the interests and needs of different countries of the world.
About retroeconomics and combined systematic approach
(Ivane Javakhishvili Tbilisi State University Press, 2023) Shapatava, Medea
The research of creation mechanisms of Retroeconomic theory and reasons of its existence provides us with the information, what are the problems and hindrances on the way to the economic development processes in certain countries. The fact is, that Retroeconomics exists not only in developing countries, but also in highly developed countries and it shows an ability to exist steadily for an extended period of time. It is important to research all the factors and reasons of its creation in details in order to avoid repeating of previous mistakes in future. In this topic we provide a brief discussion of these matters and the idea that it would be possible to acknowledge certain combined systematic approaches for better implementation of processes in future.
About some directions of formation of an entrepreneurial ecosystem in Georgia
(Ivane Javakhishvili Tbilisi State University Press, 2018) Gagnidze, Ineza
The paper deals with entrepreneurial ecosystem and necessary pillars and components for its formation discussed in World Economic Forum “Around the Globe and Early-Stage Company Growth Dynamics - the Entrepreneur's Perspective”, Report 2014. The position of Georgia is given in the Global Entrepreneurship Index 2018. The special role of entrepreneurial universities in the development of entrepreneurial ecosystem is justified. The directions of bio-production development in Georgia are proposed.
About the dangers of academic competition
(Ivane Javakhishvili Tbilisi State University Press, 2023) Veshapidze, Shota
The purpose of this article's research is to protect the conduct of open manner for the competition for academic positions, which must comply with the principles of transparency, equality and fair competition. The subject of the research is ensuring the protection of the rights of the participants in the competitions to holding academic positions. The object of the research is the dangers arising in the process of actual implementation of certain legal norms and their causes. In the research process, the methods of comparative analysis, synthesis, and analogy are used, which will allow us to reveal the challenges of academic competitions, real dangers and fair ways to overcome them. In order for the academic staff to carry out their activities safely and effectively, it is necessary to protect the freedom of labor. It is important to avoid or prevent discrimination, manipulation, favoritism, nepotism, corruption and other dangers when conducting academic competitions. Keywords: Freedom of labor, non-compliance with international legal norms, discrimination, threats of manipulation, favoritism, nepotism, corruption. | სტატიის კვლევის მიზანს შეადგენს აკადემიური თანამდებობის დასაკავებელი კონკურსის ღია წესით ჩატარების დაცვა, რომელიც უნდა შეესაბამებოდეს გამჭვირვალობის, თანასწორობისა და სამართლიანი კონკურენციის პრინციპებს. კვლევის საგანია აკადემიური თანამდებობების დასაკავებელ კონკურსებში მონაწილეთა უფლებების დაცვის უზრუნველყოფა. კვლევის ობიექტია გარკვეული საკანონმდებლო ნორმების რეალური განხორციელების პროცესში წარმოშობილი საფრთხეები და მისი გამომწვევი მიზეზები. კვლევის პროცესში გამოყენებულია შედარებითი ანალიზის, სინთეზის, ანალოგიის მეთოდები, რაც საშუალებას მოგვცემს გამოვავლინოთ აკადემიური კონკურსების გამოწვევები, რეალური საფრთხეები და მისი დაძლევის სამართლიანი გზები. იმისთვის რომ აკადემიურმა პერსონალმა თავისი საქმიანობა დაცულად და ეფექტიანად განახორციელოს, აუცილებელია შრომის თავისუფლების დაცვა. მნიშვნელოვანია, რომ აკადემიური კონკურსების ჩატარებისას თავი დავაღწიოთ დისკრიმინაციის, მანიპულირების, ფავორიტიზმის, ნეპოტიზმის, კორუფციის და სხვა საფრთხეებს, ან მოვახდინოთ მათი პრევენცია.
About the failure of political Coase theorem
(Ivane Javakhishvili Tbilisi State University Press, 2019) Balarjishvili, Inga
Economic institutions and behavior models are endogenous variables and represent an obvious or non-obvious agreement (contractual process), the result of the collective actions of economic and political agents. From this follows the question: under what conditions can be achieved Pareto-effective political agreement among the social agents about the creation of economic institutions? In other words, does political Coase theorem work or not, which suggests free and voluntary exchange of economic and political rights and consequently, effective institutions. As in the case of Coase “starting” theorem, the basis for such collective actions (exchange of powers) is to increase the collective benefit or public wealth. This gain can be distributed among the members of the public and may increase their individual benefits or compensate economic and political “victims.” Thus, changes in institutions and behavior models, as Pareto-improvement, are common interest. This means that the creation of effective rules, through the voluntary agreements between the parties, is conceptually possible. In terms of game theory, this means that there is a possibility of cooperative play between economic and political agents, when the joint actions of the parties can create an institution, which results in overall profit (in which indicators this profit is expressed, in this case, does not matter). Analysis involves certain pre-requisites, specifically: - there is some ineffective institutional structure (property rights, distribution of income, etc.); - there is a more effective institutional model (pareto-improvement);- there is no principal obstacle to presenting this institutional model as a political project; - parties (politicians, asset owners, scientists, etc.) have sufficient qualifications and experience to create a new institutional model. Why do not economic and political agents work together to improve institutional structure and gain profit? What hinders the realization of the Coase theorem in politics? Expenses incurred by public agents for changing institutional structure, i.e. obstacles to the realization of the “political Coase theorem” are: • Political transaction costs: the costs for optimal distribution of power; the costs of conducting negotiations; the costs of changing the formal and informal organization of the system; “Transition costs” (changing the rules requires expenses for all socio-economic and political players) etc. In the absence of these expenses, the optimal set of “rules of the game” would be established everywhere and always, since replacing any “outdated” institution with a new one, with more effective one, would “cost” nothing; • Absence of motivation for creating eff ective rules. Parties (at least on one side) may not be interested in overall profi t, as there are alternative ways of making private profit (economic and political rent). Its source is asymmetry in the distribution of power. The rent source can also become asymmetric information; • Institutional changes are “creative destruction.” Increasing effectiveness of institutions may result in the loss of income, power and ownership by individual economic and political agents. This results in potential “losers” resistance to institutional changes; • The problem of trust between the parties. This means absence of belief that that maximizing the functionality of the public benefit will positively affect the individual function of benefits; • The problem of credible promises. There are not “reliable” mechanisms for the distribution of the gain of social income in favor of any of the parties. It is about the absence of a coercive mechanism (third party) for the fulfillment the obligations. In other words, as there is no guarantee of redistribution of benefits, there are no incentives for perfection of institutions; • Problems of preferences. Power for its owner is not just an opportunity to achieve goal (for example, receiving rental income). It is a “wealth” in itself, and therefore it can be the ultimate goal; • “Time horizons” of institutional changes. The difference in time between the cost of the institutional changes and the benefits derived from these changes weakens the motivation of institutional changes, which gives the effect in the long term. Thus, according to the political “Coase theorem,” people can always negotiate and exchange powers. But as a result of the combined constraints, many of them are of insurmountable nature, Coase theorem does not work in politics; i.e. always remain missed alternative institutional capabilities. Rational, maximized behavior can not overcome all costs, which are necessary for the establishment of effective institutions.
About the importance and benefits of event marketing
(“Baltija Publishing”. Riga, Latvia, 2023) Seturi, Maia
In today's environment, where consumers have a wide range of information available to them, it is important for companies to use more effective and flexible approaches to the market. Modern information technology helps the marketer to be closer to the buyer than in the past and to understand the customer's needs and desires well. In addition, marketers need to have a good understanding of the capabilities and benefits of different marketing communication tools and media channels. In today's competitive environment, it is becoming increasingly important for companies to use incentives that are better suited to today's targeted strategies. Effective marketing communications play an important role in a company's success in the marketplace. It is important in creating an impression of the company and its brands. Events help companies to achieve this goal. The purpose of this paper is to summarise and present the main benefits that companies can achieve through the intelligent use of events. Events are used by many companies to impress other people. And companies can gain their favour by making a great impression on the public. Thus, event marketing influences consumer attitudes towards different brands, consumer behaviour and stimulates purchases. An important question is when and how special events will be implemented. Their proper planning, organisation and execution will bring the company high recognition and economic benefits. Methodology. Secondary data was used in the course of writing this article. Modern scientific works of scientists and researchers were studied, and information was searched for using Internet sources. The paper examines modern forms of event marketing, individual approaches to work in this area and aspects of its development. Research results. Based on various reliable sources of information, a clear picture of the current situation in Georgia in this area was created. It has been found that companies do not use measures with the frequency that would bring them high results. They use only certain approaches. The paper examines the conceptual aspects of event marketing, analyses the definitions and opinions of various scientists and specialists in this area. Practical implications. The article discusses the risks and problems associated with the implementation of events, and presents a number of conclusions and recommendations to improve the efficiency of the use of events.
About the importance of brand as a system
(World Organisation of Systems and Cybernetics (WOSC), 2017) Seturi, Maia; Urotadze, Ekaterine
Marketing system contains various sub-systems and elements. Their combined and thoughtful use makes it possible to achieve effective results in the competitive market. A big diversity of goods is represented on the market today. One of the most actual topics in the marketing’s theory and practice is the matter of the brands ruling. There are many opinions related to this. According to the one of the most popular point of view, brand success is not provided only by its trademark, but it has to pass certain levels. The key point in the Brand’s success is held by creating its positive image and ensuring its awareness. The image of the brand emerges by the psychological satisfaction of the buyer.
About the importance of brand as a system
(Taylor & Francis Group, by Routledge., 2018) Seturi, Maia; Urotadze, Ekaterine
Success of produced products on the market can be assessed with its sales figures (indicator). Sales growth is impossible, if users do not have information about the company's products (brands) on their characteristics and advantages. The proper management of brand is very important for modern companies. Brand is presented as a complex system of interconnected elements. It is very important for our country, Georgian products to be presented not only in the domestic market, but also to increase its exports. Significant place in the country's total export is held by Georgian wine, mineral water, alcoholic beverages, carbonated soft (nonalcoholic) drinks and etc… (National Statistics Office of Georgia, 2016). It should be noted that branding was applied in Georgia in certain form in the past as well. There existed lots of Georgian-made consumer products, which had the benefits from their high reputations between consumers not only in Georgia, but also in abroad (Ten Oldest Georgian Brands). The tasks of this research was: to determine consumer evaluations at Tbilisi (the capital of Georgia) consumers market about Georgian brands; to find out the attitude of consumers to the advantages of Georgian brands. Based on the results of the research to determine weaknesses which prevent Georgian brands from success. In the conclusive part of the work are given research results, conclusions and some recommendations.
About the Importance of Tourism Promotion Policy (Georgian Case)
(Journal of International Economic Research, 2018) Seturi, Maia
Today tourism is one of the main directions of development of national economy in Georgia. With the development of this sector, the country can receive significant revenues and reduce the level of unemployment. The tourism promotion policy, which the state is implementing, is expressed to carry out a number of activities and support by the state. Georgia has a great tourist potential. Georgian resorts and tourist destinations have gained wide recognition. Our country is becoming more attractive for foreign travelers and tourists. Tourism development is not only the result of the industry activity. But it needs united effort of state and private sectors. The growth of interest towards Georgia on the international tourism market is largely conditioned by the state's policy of tourism promotion. In this work are given analysis of the current situation in Georgia and a number of conclusions. According to the authors, the positive results were brought the use of marketing approaches and the work to demonstrate the advantages of tourism destinations of the country. In this case a big role played the use of world leading news channels that have a large audience in different countries of the world. Also, it is necessary to master marketing approaches to every enterprise and organization involved in the tourism and hospitality industry, because they make great contribution to the satisfaction of tourists.
About the issue of private property relations and the genesis of entrepreneurship (კერძოსაკუთრებრივი ურთიერთობებისა და მეწარმეობის გენეზისის საკითხისათვის)
(Ivane Javakhishvili Tbilisi State University Press, 2020) Basaria (ბასარია), Vladimer (ვლადიმერ)
An important role in ensuring the well-being of the population is how the society has mastered the defining (basic) reasons for its economic activities - its own relations and the motivation of the activities caused by them - and how it uses them to achieve the desired result. The coexistence and ratio of two forms of property, private property and public property, has historically always conditioned the essence of the socio-economic order, the result of economic activity. At the same time, private property, the substance that determines motivation, has always been dominant. Therefore, understanding the motivation of private owners, the correct theoretical assessment of the pros and cons of this motivation and the impact on the well-being of their society and its practical application should become one of the main means of developing highyield production in our country. In our reality, the solution to this problem is complicated by the fact that private property was restored in the country not through the acquisition of wealth, but through the privatization of public property by individuals using various illegal, criminal methods of ownership of the entire population. Added to this was the seizure of wealth by private owners by the criminal “elite” imprisoned in state structures in 2002-2012. It is clear that such a nature of the process would not have contributed to the stimulation of the motivation of private property relations, weakening its downside. This indicates that the Georgian government must grasp the importance and severity of the problem, consistently and simultaneously pursue a comprehensive policy of maximizing the pros and cons of the relationship between private owners.
Access to healthcare - as fundamental right or a privilege? (ჯანდაცვაზე ხელმისაწვდომობა, როგორც ფუნდამენტური უფლება თუ პრივილეგია?)
(Ivane Javakhishvili Tbilisi State University Press, 2020) Verulava (ვერულავა), Tengiz (თენგიზ); Jorbenadze (ჯორბენაძე), Revaz (რევაზ)
Understanding health as a human right creates a legal obligation on government to ensure access to timely, acceptable, and affordable health care of appropriate quality. Health and health care can not be considered only as a personal responsibility, because due to its socio-economic nature, the demand for it is often not only individual, but also social (“public goods” in the medical market) and requires the consolidation of consumers funds. Peculiarities of the medical market, such as risks and uncertainty, incomplete information, limited competition, external effects, production of public good, lead to special forms of economic relations in the medical market, which require the development of appropriate regulatory mechanisms. In European countries, where financing of health care is completely divorced from actuarial principles, the individual’s financial contribution to health does not depend on his or her health risk. Consequently, there is a universal healthcare principle that covers the entire population, where every citizen has the right of access to health services, which promotes solidarity between them. Employment, education and income are important factors influencing access to medical care. Some people have low access to health services due to various factors. The question arises as to whether the intervention necessary to assist them in obtaining such access should be considered a privilege, or a right. Viewing health care as a human service is not only done for humanistic and ethical reasons; it may also be done for pragmatic reasons. Other countries provide health care as a basic human right for utilitarian reasons. That is, universal access is provided not only because it benefits the individual but because it benefits the society by helping to ensure a productive workforce and promotes solidarity among its citizens. Thus, it has been determined by natural laws, and natural rights that human beings have the right, not the privilege, to healthcare access.
Accounting and audit reform in Georgia: theoretical and descriptive analysis
(Ivane Javakhishvili Tbilisi State University Press, 2019) Pirveli, Erekle; Shugliashvili, Teona
Georgian government enacted the Law of Georgia on Accounting, Reporting and Auditing as of June 8, 2016. The law has required entities of first and second categories as well as Public Interest Entities (c.a. 600 entities) to report their financial statements latest on October 1st, 2018. Groups of the third and fourth categories (c.a. 83.000 entities) shall report their financial statements latest on October 1st, 2019. As the regulation towards massive transparency takes place for the first time in the country’s history, it is a unique possibility not only for dataseeking researchers (like us), but also for the regulators and standardsetters in Georgia and within the EU. Before the larger dataset enters the playing field by the end of this year and before grasping the roots of financial information quality provided within the financial statements, this research project aims to theoretically review the ongoing reform details, descriptively analyze the already available data of about 600 entities and draw the first estimations of the reform outcomes. Our analysis suggests that the ongoing reform positively differs from any of its predecessor attempts in several regards: the reform’s regulatory window is consistent with the EU framework/ experience; the processes are actively (financially and administratively) supported by international organizations; an active focus is given to the increase of interested parties’ awareness and understanding of the accounting fundamentals; monitoring process is stronger and stricter. Findings show that the mandated legislation is well-obeyed; few entities have even voluntarily published their audited financial statements; a high proportion of the reports is audited by large audit firms. These details enable us to expect that the currently ongoing field reform, unlike to previous attempts, will lead to significantly different positive outcomes.
Accounting of deferred taxable asset and liability is not justified
(Ivane Javakhishvili Tbilisi State University Press, 2018) Chiladze, Izolda
International accounting standard 12-Income tax – regulates accounting methodic of profit tax and demands that the enterprises must account the deferred tax asset and the deferred tax liability. For this reason, the net profit indicator published in the financial statement of the enterprises is unrealistic which in one hand contradicts to requirements of basic qualitative characteristics a financial statement such as Relevance and Faithful Representation and in another hand, it allows of fraud in the financial statement. The aim of this study is to substantiation necessity of simplification of the IAS 12 – Income Tax. In the article is affirmed that accounting of the deferred tax asset and deferred tax liability derives many problems for the enterprises and the investors. They also have not an analytical role in the financial analysis of the enterprises. That is why, the leadership of the enterprises avoids to using mentioned standard 12 – Income Tax - in Georgia. This study gives the recommendation that in the IAS 12 - Income tax – bring in the changes, which will be simplified by the method of profit tax accounting in the enterprises and it will eliminate the existing problems of accounting the profit tax.
Actions for the professional development of staff in the public service
(Ivane Javakhishvili Tbilisi State University Press, 2019) Sardlishvili, Nino
Public Service Reform is an ongoing process, comprised of various important milestones. One of these stages is the professional development of civil servants. This year is the first in which public agencies are required to submit a plan for staff qualification upgrading at the beginning of the year and follow suit. All of this aims to systematize the training required for professional development and accordingly follow that plan.
The active policy on labor market and the peculiarities of youth employment
(Ivane Javakhishvili Tbilisi State University Press, 2019) Tsartsidze, Murman
The principle objective of macro-economic policy is the provision of effective employment for the population at the current stage of forming and developing the labor market in Georgia. The above-mentioned is conditioned by the fact, that the unemployment represents the most acute, global and topical challenge, which is acknowledged to be the key factor causing the poverty in the country. On the basis of the aforesaid, the in-depth research of problems related to the certain social-demographic groups of population, especially the employment of the young people, is attached the considerable significance. The study of the existing situation in the mentioned sphere, as well as the analysis of findings of the conducted researches, allow us to infer a set of the following conclusions: 1. Under the modern conditions there is identified the incompatibility of the skill level of alumni of higher and vocational institutes with the demands of employers, which is added to: the absence of experience in independent decision-making, the insufficiency of appropriate knowledge and the lack of practical skills regarded relevant within the profession. It might be said, that the mentioned factor performs the vital role in terms of the employment of young personnel as well as the whole population capable to work. 2. The low level of competences of the personnel having acquired the higher and vocational education and the incompatibility between the educational quality of the working force and the requirements of modern labor market account for the deficiency of qualified working force and the difficulty in recruiting the personnele according to a certain profession, which, in its term, becomes the hindering factor to the development of business and economics; 3. The crucial factor effecting the youth employment is their conceptions and viewpoints pertaining to the ways of adaptation to the area of labor and employment. While selecting the profession they are not frequently focused on the situation existing at the labor market and its real requirements. Hence, the extremely serious problem of professional orientation assuming the particular importance in the epoch of contemporary innovations and globalization has been illustrated. 4. At the current stage, the labor market cannot ensure the compliance with the social justice rule in the area of employment, the creation of the equal employment opportunities for the unemployed and the realization of the equal labor rights. The various services and events are less available for the certain groups of population. 5. The mechanism of social protection of the unemployed young people and their retraining programs are hitherto virtually nonexistent in the country. 6. The considerable problems can be detected in the sphere of remuneration of labor for the young people. Their wages are low. The situation is much more complicated by the appalling working conditions and the low level of the work organization, its encouragement and motivation; 7. The absence of undeveloped infrastructure and unified information system of the labor market becomes the obstacle to finding the professional job, furthermore, it develops the considerable difficulties for the employers in the process of recruitment and employment of personnel deemed necessary; 8. The scientifically founded management practice regulating the employment and social-labor relationships as well as the relevant legislative basis does not hitherto exist in the country; 9. The system of social partnership has not been developed in the sphere of social-labor relationships; Based on the above-mentioned circumstances, with the aim of providing the youth with effective employment it is essential to take the following measures within the labor market and the active policy on employment: 1. The problems related to the job placement of the young people are impossible to be solved without the joint efforts of social partners. The aforesaid requires the establishment of fundamentally new mechanism of social partnerships and the introduction of the practice regulating the collective agreement. The issues about the youth employment should not be settled spontaneously. It requires the scientifically substantiated approach from the economic as well as social aspects. 2. It is deemed necessary to enhance the quality and level of development of the higher and vocational education system and to focus it on the requirements of labor market. In addition, it is essential to form the adequate system for training and retraining programs for the personnel that will completely ease the shortage of qualified working force and remove the barriers and complications created in terms of recruiting the personnel of specific specialties 3. The effective employment of young people is impossible without the economic growth, in general and the advancement of private sector of economics 4. The youth employment programs should focus great attention on training, retraining of young people as well as helping them to find jobs and carrier planning, also on the issues related to providing them with consultancy and mobility. 5. The legislative basis in the area of labor and employment necessitates being improved and refined. 6. In order to successfully pursue the active policy on employment it is deemed expedient to introduce the effective system of its implementation and the monitoring of its outcomes. 7. With the aim of successful realization of the active employment policy it is expedient to introduce the effective system for monitoring its implementation and expectations. It must provide the strict control over the execution of each specific program launched in the sphere of the youth employment according to all its parameters and indicators.

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