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Journal number 2 ∘ Tengiz Kavtaradze

Expanded Summary

Innovation is a novelty based on the use of gains of scientific knowledge and advanced experience in technologies, technics, labor organization and management. The use of scientific and technological novelties is related to all human activities including the agrarian sector. For example in the production the use of technical and economic innovations means the development of new types of projects, as well as the implementation of new technologies, progressive forms of labor and entrepreneurship.

The USA state agrarian innovative policy is an integral part of the country's social – innovative policy identying in agriculture the goals, main directions and methods of state power functioning. In agriculture the most significant goal of innovative palicy is  to create the mechanism.  That provides the successful  application of the latest advances in technics and technologies, generally, the results of national and international innovative activities, more fully meet competitive products on the world market, acceleration of social-economic development of the country and ever-growing material and cultural events. It involves three steges: scientifically based concept of development of national innovative activity worked out by means of comprehensive analysis of the potential; determination of basic directions of state support to the development of innovative activity; identification of practical action to intensify the  innovative activity.

The sucecess of  US policy of innovation is due to a large capital investment in agriculture and rapidly increasing use of  high-skilled workers; scientific processing and re-processing of seed  in order to maximize its productivity and disease and drought resistance; is established the optimal number of fertilizers and irrigation. Projects for new tractors and other agricultural equipment are being developed; the use of mechanization in cultivation and harvesting reduces labor costs and makes it possible to save time on each unit of output. Farmers are provided with research information through “extension service”. This is a very flexible and powerful service for agricultural knowledge dissemination and implementation. Almost every state in the United States usually has at least one agricultural university  and  each   district has “extension service” office which provides farmers, women and children as well with the necessary information.

In US food complex for the implementatiom of any information the national priority tasks are carried out by a special targeted programs but with the difference that each target  innovative program is realized through law which is discussed in congress and affer approval enters into force. Federal budget allocates the necessary funds for the  implementation of each such program, and the ministry of agriculture improves its structure – sets up new departments, Federal budget allocations are systematically growing.

In recent years agricultural management mechanism has been undermined in Georgia because of well -  known reasons, Specific share of agriculture in GDP of Georgia was 9,2%.

That's when more than half of the country's population lives in   rural areas and the wealth created by hem is not proportional to this parameter.  In Georgia half of emploeesis occupied in agriculture and 17-18%of them gets income less than $1 a day. The main highlights of the agricultural sector hava fallen sharply in recent years. In 2004-2015 years, the sown area was half-reduced;crop production including potatoes, fruit and grape harvest was reduced by 50%, vegetables and melins by 60%, corn by 70%, wheat by 80%. The number of cattle, sheep and paultry also decreased. During this period, 50% less meat and 25 % less milk was produced. Wheat production per capita was 5 times less due  to the worsening of the varietal composition of livestock, low level veterinary service, found production-related problems in the field. All these are directly related to the country's food self-sufficiency, the ratio of which is worsened. Particularly note worthy is wheat the import of which increased 3,7 times, grain self-sufficiency ratio decreased from 24% to 9%. The consumption of bread, meat and meat products, milk and dairy products, eggs, regetables, honey and other food products by Georgian population was less than in 2003. During this period, import of products increased 6 times, white export-only 2,5 times. Because of this Georgian agricultural products were replaced by foreign cheap, in most cases, defective goods in agricultural market. At present 80% of agro-food products consumed by the population is imported.

In order to escape the difficult situation in agriculture the government considers rural cooperative system development. As for the question – “Is the cooperative system the innovation or not in Georgia?” in our view because of understandable reasons and circumstances some of considerable practical experience and knowledge with regard to the system does not exist and is impossible to exist as the seventy years of artificially regulated central planned economy, the prohibition of the free market, private property and private enterprise in the violent repression from and the implementation of  industrial cooperation in the form of Kolkhozes  and Sovkhozes the system can not be developed. More over, after the declaration of independence in 1991 for twenty years, the policy based  on thought out and long term strategic vision related to the sector's development was not implemented either.