Georgian economy: for understanding of 30 years of transformation (საქართველოს ეკონომიკა: 30-წლიანი ტრანსფორმაციის გაგებისათვის)
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Date
2021
Journal Title
Journal ISSN
Volume Title
Publisher
Ivane Javakhishvili Tbilisi State University Press
Abstract
The dissolution of the Soviet Union 30 years ago, on 25 December, 1991, had
huge affirmative consequences on Georgian people. The country’s independence
and statehood were restored. During 30 years, Georgia lived through the phases
of wild capitalism, taming and transforming it into democratic capitalism. In
the first phase, from 1992 to 1995, market economy emerged in its rudimentary
form at the constitutional level and different institutions were established. The
next phase included its transformation through modernization which is still
going on. Decommunization ended in Georgia along with the restoration of its
independence, however, desovetization is still under the process and sometimes
even the precedents of resovetization such as one-party-governance system
occur. The existence of some elements of the Soviet system is a result of lagging
behind efficient and competitive market economy that led to a thirty-yearfailure
to reinstate the level existing in the Soviet Union, namely the level of
social-economic development of 1988. In 1988, GDP (constant 2015 US$) totaled
to 21, 533.00 USD, while in 2019, the year before COVID-19, amounted to its 82.5%
- 17,758.00 USD. Other economic and social indicators have not been achieved
yet. It would not be the case if the country had had a unified, comprehensive
and systemic strategy detailing the parameters of desovetization, modification,
economic growth and social development in time and space along with the
responsibility for its implementation, and the needed budget. Otherwise, the
governance would not be reconcilable and coherent and would have the signs of
parallelism and low efficiency in which the governing elite displays the interest to
retain the process of desovetization interminably. During the period of impulsive
governance, the ruling elite has a possibility to impede the process and get richer
because of the system inadequacy. The solution to the problem lies in speeding
up the process of desovetization and introducing an indicative system. However,
in order to do so, it is imperative that the governance system be enhanced through
qualitative improvement of human resources and political elite. Normative
motivation system where one of the most important requirements shall be
scientific qualifications of state-political appointees should be introduced to expedite the evolution process of qualitative improvement of the country’s
political elite.
Description
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Keywords
transitional economy, transformative economy, wild capitalism, efficient market economy, capitalist restoration, a 30-year crisis, desovetization, indicative planning, scientific qualifications of a political appointee
Citation
Economics and Business, №4, 2021, pp. 41-57