10.36172/EKONOMISTI.2024.XX.04.KHARAISHVILI.LOBZHANIDZE

Expanded Summary 

The article analyzes the factors influencing the formation of the world order, emphasizing the importance of state enterprises in transforming the global agenda. It substantiates the critical role of state-owned enterprises (SOEs) in providing effective services, fostering economic growth, and enhancing the well-being of populations in developed countries.

In Georgia, however, state enterprises often burden the national budget and contribute modestly to economic development. This underscores the necessity for comprehensive reforms in these enterprises.

Building on the justification of the research's relevance and aiming to conduct a comprehensive correlation analysis of the identified problem, the following research questions have been formulated:

RQ1: What are the key drivers necessitating the transformation of the world order?

RQ2: How do state-owned enterprises (SOEs) influence the development and shaping of the global agenda?

RQ3: What are the essential components of state enterprise reform in the context of global transformation?

RQ4: What are the primary challenges associated with state enterprise reform?

RQ5: How can Georgia leverage international best practices (e.g., OECD guidelines) in implementing state enterprise reforms?

RQ6: What is the foundational pillar underpinning successful state enterprise reform?

To address these questions, extensive bibliographic research has been conducted, focusing on evaluating published scientific articles and organizational reports that discuss the dynamics of world order transformation and the challenges of state enterprise reform. The analysis includes -Pillar Analysis: A detailed exploration of the structural and functional aspects of reform, identifying critical pillars that support the successful transformation of state enterprises. And, Traffic Light Method Evaluation: An assessment of the stages of reform implementation using a traffic light methodology, which categorizes progress into stages such as “on track” (green), “at risk” (yellow), and “needs significant attention” (red).

This approach provides a structured framework for evaluating the interconnectedness of global trends and domestic reform initiatives, ensuring actionable insights and alignment with international standards.

Bibliographic research identifies the main challenges facing state enterprises and highlights countries where SOEs significantly contribute to economic growth, development, and poverty alleviation. The research also evaluates the positions of SOEs in the global economy and their role in implementing public policies. It concludes that today, state-owned enterprises are not only global players but also integral components of the economic structure in the world's fastest-growing economies.

To address the challenges and eliminate problems in the field of state enterprises, the study examines the experiences of successful countries and proposes ways to apply these experiences in Georgia.

The reform of state-owned enterprises in Georgia, in alignment with international standards, is evaluated using a five-pillar framework: (1) Determining the priorities of commercial goals; (2) Implementing corporate governance principles based on the Organization for Economic Cooperation and Development (OECD) guidelines; (3) Formulating a rational state enterprise ownership policy; (4) Managing medium-term strategic target indicators for enterprises; (5) Institutionalizing the principle of competitive neutrality.

The article concludes that state-owned enterprises (SOEs) in Georgia play a vital role in economically significant sectors and are key providers of essential public services. To enhance their economic impact, improve the business environment, and mitigate fiscal risks, the implementation of robust and effective corporate governance systems is imperative.

Strengthening transparency and financial stability within SOEs will not only foster trust and accountability but also enable their integration into and active participation in the capital market. The reform of SOEs should be guided by an analysis of five interrelated pillars, each requiring comprehensive attention and implementation to ensure the adoption of international standards and the enhancement of corporate governance practices.

A critical aspect of these reforms includes the development of a code of ethics and the establishment of robust mechanisms for handling disciplinary proceedings within SOEs. Furthermore, ensuring public access to information about the operations and performance of each SOE is essential for fostering accountability and trust among stakeholders.

Finally, a set of recommendations has been formulated to guide the reform efforts, with a focus on strengthening governance, enhancing transparency, and ensuring the financial sustainability of state enterprises in alignment with international best practices. 

Keywords: world order, transformation, state enterprise, reform, pillar analysis.