ON THE ESSENCE OF BALANCED DEVELOPMENT OF GEORGIA AND ITSEVALUATION INDICATORS

Gigi Elizbarashvili

Journal number 2 ∘ Gigi Elizbarashvili ∘
ON THE ESSENCE OF BALANCED DEVELOPMENT OF GEORGIA AND ITSEVALUATION INDICATORS

Expanded Summary

The purpose of the article is to analyze the current situation in Georgia in terms of commensurate economic development, for which in the article are represented the indicators of the assessment of the country's commensurate economic development worked out by the author. The obtained results revealed a significant imbalance between the development levels of the capital city of Georgia and the regions. Also, we were given the opportunity to determine which region is relatively developed and which of them is in the most difficult economic situation. The article emphasizes the factors contributing to the incommensurate economic development of the country and the severe socio-economic consequences that are the results of the mentioned imbalance. Also, the means of prevention of the incommensurate economic development of the country and minimizing them are analyzed. Relevant conclusions and recommendations are represented at the end of the article.

The main concern of any country is to ensure economic stability of the country and high standard of living of its population. The economic growth of the country and the raising of the standard of living of the population can be considered as a success when the mentioned growth is equally distributed as much as possible to the territorial units and the entire population in the country. If the growth of the country's economic activity is determined by the development of one specific region or capital city, it is impossible for the overall picture of the country to be satisfactory in terms of economic growth and raising the wellfare of the population. Therefore, the main goal is not only economic growth, but also commensurate economic development of the country.

The incommensurate economic development of the country causes the concentration of the main part of the population in the capital city, where there is an excess supply of labor, as a result of which the level of unemployment increases. In contrast, Regions are prone to depopulation and marginalization [Kokhler, et al., 2017: 415, Paniagua, 2013: 1], the end result of which is the paralysis of economic activity.

The article represents the deviation coefficients of commensurate economic development worked out by the author and their calculation formulas. Along with the formulation for calculating the coefficients of deviation of proportional economic development, square functions are given for the arrangement of these coefficients on the numerical axis and for the determination of ranges, the solutions of which are the mentioned ranges. These ranges determine the status of the country's commensurate economic development. The area of commensurate economic development of the country is determined by the range in which the coefficient with the highest deviation will fall, and the smallness of the coefficient module is an indication of less inequality. By means of the mentioned coefficients, the imbalance between the development levels of the capital city of Georgia and the regions and the proportionate development range, in which Georgia was included, taking into account the values of the coefficients, were identified.

Based on the obtained results, it can be concluded that today the main challenge of Georgia is to get rid of incommensurate economic development or at least take important steps to minimize it. The imbalance between the development of different regions of the country and the capital city overshadows the economic progress of the entire country and ensuring the wellfare of the population. The role of the state is important in minimizing the mentioned problem. The process of preventing the incommensurate economic development of the country is difficult, long and time-consuming. It requires a number of such changes, which will be aimed at revitalizing the paralyzed economic activity in less developed regions, eliminating the depopulation of the region, ensuring equal opportunities for development for the entire population, and equally distributing the goods produced in the country to everyone.

As a result of the implementation of the mentioned measures by the state, the growth rate of proportional economic development will accelerate and the level of its development will move from the disproportionate range to the proportional range.

EKONOMISTI The international scientific and analytical, reviewed, printing and electronic journal of Paata Gugushvili Institute of Economics of Ivane Javakhishvili Tbilisi State University

DOI: 10.36172/EKONOMISTI E ISSN 2346-8432 Print ISSN 1987-6890	Journal number 2 ∘ Gigi Elizbarashvili ∘ ON THE ESSENCE OF BALANCED DEVELOPMENT OF GEORGIA AND ITSEVALUATION INDICATORS Expanded Summary The purpose of the article is to analyze the current situation in Georgia in terms of commensurate economic development, for which in the article are represented the indicators of the assessment of the country's commensurate economic development worked out by the author. The obtained results revealed a significant imbalance between the development levels of the capital city of Georgia and the regions. Also, we were given the opportunity to determine which region is relatively developed and which of them is in the most difficult economic situation. The article emphasizes the factors contributing to the incommensurate economic development of the country and the severe socio-economic consequences that are the results of the mentioned imbalance. Also, the means of prevention of the incommensurate economic development of the country and minimizing them are analyzed. Relevant conclusions and recommendations are represented at the end of the article. The main concern of any country is to ensure economic stability of the country and high standard of living of its population. The economic growth of the country and the raising of the standard of living of the population can be considered as a success when the mentioned growth is equally distributed as much as possible to the territorial units and the entire population in the country. If the growth of the country's economic activity is determined by the development of one specific region or capital city, it is impossible for the overall picture of the country to be satisfactory in terms of economic growth and raising the wellfare of the population. Therefore, the main goal is not only economic growth, but also commensurate economic development of the country. The incommensurate economic development of the country causes the concentration of the main part of the population in the capital city, where there is an excess supply of labor, as a result of which the level of unemployment increases. In contrast, Regions are prone to depopulation and marginalization [Kokhler, et al., 2017: 415, Paniagua, 2013: 1], the end result of which is the paralysis of economic activity. The article represents the deviation coefficients of commensurate economic development worked out by the author and their calculation formulas. Along with the formulation for calculating the coefficients of deviation of proportional economic development, square functions are given for the arrangement of these coefficients on the numerical axis and for the determination of ranges, the solutions of which are the mentioned ranges. These ranges determine the status of the country's commensurate economic development. The area of commensurate economic development of the country is determined by the range in which the coefficient with the highest deviation will fall, and the smallness of the coefficient module is an indication of less inequality. By means of the mentioned coefficients, the imbalance between the development levels of the capital city of Georgia and the regions and the proportionate development range, in which Georgia was included, taking into account the values of the coefficients, were identified. Based on the obtained results, it can be concluded that today the main challenge of Georgia is to get rid of incommensurate economic development or at least take important steps to minimize it. The imbalance between the development of different regions of the country and the capital city overshadows the economic progress of the entire country and ensuring the wellfare of the population. The role of the state is important in minimizing the mentioned problem. The process of preventing the incommensurate economic development of the country is difficult, long and time-consuming. It requires a number of such changes, which will be aimed at revitalizing the paralyzed economic activity in less developed regions, eliminating the depopulation of the region, ensuring equal opportunities for development for the entire population, and equally distributing the goods produced in the country to everyone. As a result of the implementation of the mentioned measures by the state, the growth rate of proportional economic development will accelerate and the level of its development will move from the disproportionate range to the proportional range.