Summary

Effective development of Georgia’s economy significantly depends on the correct direction of socio-economic processes in the country and integrated assessment. In Georgia, for the right direction of economic reform (which is too long drawn), it is necessary to know what riches the country has, what kind of wealth and quantity we have, how we use it, where it is distributed and so forth. For this, all kind of Georgia’s wealth should be properly listed and analyzed. At the same time, if we really want to move to a market economy (about which we have already been shouting for 25 years, whereas a number of countries spent this period of time to obtain the status of the “Asian tiger”), it is necessary to take the pulse of the world economy which will serve as a compass for us. It is impossible to judge about such extremely topical and burning issues, the future of Georgia, the priorities of her development and general strategy based on emotions, without taking into consideration the world experience.

The implementation of a sound economic reform is directly connected with the creation of an “army” of entrepreneurs and, first of all, the development of small business which is in extremely grave condition in Georgia. The acuteness of this problem is also confirmed by the fact that in the country with great traditions in terms of entrepreneurship, currently only 9.1% is engaged in manufacturing activities with small business, the share of medium-sized business makes 8.4%, and the rest is 82.5%, that is a big business. Unfortunately, such an ugly structure of entrepreneurship destroys entrepreneurship. That is why the core of economic development – the average strata - is very small in Georgia, it makes only 9%!!! Where is the opposition at this time from which we hear only scolding of the authorities and not constructive criticism. Based on this, only such a conclusion can be drawn: there is a shortage of people with reformatory aspirations in Georgia. There are so many unskilled parliamentarians who have no idea about the market economy, what role is played in the parliament of Georgia. Today, it is not the time to sit in a chair and do not try to catch fish in muddy water.

In modern global world the country’s competitiveness as the most important indicator of development and public welfare determines the place of each country and role in the world economy. The creation of a new strategy in modern economy is based on new innovative system. That is why, in the 21^st century the number of structural transformations represent the development of innovative economy.

At present, the basis for efficient functioning of a modern economy is a continuous process of substituting of obsolete technology by the new one, development of resource saving technologies. Special attention is paid to information technologies that have a huge impact not only on material resources but also on the quality of intellectual capital and provide the advancement of the phenomenon of knowledge to the forefront. Innovative progress has given a powerful impetus to the all-round development of creative potential. That is why today in foreign trade the theory of comparative advantages gives way to the theory of competitive advantage. Currently, in the world market the most advantageous are those industries that produce information technologies in the service sector, means of communication and the entire telecommunications system. Their success in the world market is determined by the introduction of innovations, rather than the growth of production capabilities and makes emphasis on such values as quality, “know-how”, new approach to the market, ne w design, etc. The best way to achieve competitiveness for Georgia is the development of resorts and tourism that promises to give the country a great economic investment to the country.