The main directions of overcoming retroeconomics in Georgian industry (რეტროეკონომიკის დაძლევის ძირითადი მიმართულებები საქართველოს მრეწველობაში)

Abstract

The article describes some of the specifications of different types of opportunities in order to better eliminate retroeconomics in Georgia. The term “Retroeconomics” is produced through the combining of the following two words: “retro”, which in Latin means “back to the past” and “economy”. Consequently, this concept refers an economy based on backward technology. The relevant conditions that contribute to the strengthening of the retroeconomy are quite firmly represented in the industrial sector of Georgia. The list of countries with weak economy have widely used or consuming outdated technological means in their industrial sector. Although, the use of backward technology at the initial stage can cause an illusion of development of the business environment. But when it has met international competition there is no chance to get success in this order for such kind of production. Based on all of above mentioned, the elimination of retroeconomics is a very difficult but in same time n important necessity for Georgian industry. In order to minimize the negative effects of retroeconomics in the country, it is necessary to: • Relevant decision-makers should be clearly analyze the circumstances under which it is inconceivable to take significant effective steps without the active intervention of the country’s government. • The policy of innovative enterprenership and other relevant institutional measures in Georgia should be aimed at overcoming technological backwardness. • The most important direction in tackling retroeconomics is to promote and strengthen the educational system in the country, including system of higher education. • Minimize the market from non-viable enterprises, identify insolvent enterprises and assess their viability. Today, there are many companies and / or enterprises in Georgia that create products for which the demand is either very low or they can not compete in the world market due to the fact that the production process is carried out with outdated technology.