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Journal number 4 ∘ Ramaz Abesadze


Summary.In the article is scrutinized the innovative policies of economics in the post-Soviet countries. There is identified advantages and disadvantages of that policy, its common and distinctive marks. Also are proposed the key directions for improving innovative policies in economics in these countries. Keywords: Innovation, Innovation Economy, Innovation Policy, Innovation System  Introduction Every country, no matter in what level of development it is, in the modern time should be able to strive  an effective  system of innovations that would be  based on its own research. To do this, the government must create the conditions for enhancing innovation activities, for increasing an innovative components in  economy. First of all, government should define the country's innovation policy and formulate the legal basis for innovative development. Innovations are held from immemorial time, but the period from innovation to innovation was too long (see table)
Journal number 4 ∘ Gurbanov Tariyel Musallim ogluMustafayev Asif Mirlazim oglu

Evaluation of the use of budgetary costs to improve the economic role of the State

Summary. Over the last years, the  position of the Country concerning the development of national economy of Azerbaijan has been assessed positively in several international rankings on the background of measurements performed by the government. It should be noted that the orders and decrees adopted by the President of the Republic of Azerbaijan in this direction should be emphasized. So, as an example we can show the Decree "On additional measures to improve the business environment in the Republic of Azerbaijan and further improvement of our country's position in international rankings", issued on July 13, 2016 and the Decree “On national economy and strategic roadmaps for 11 sectors of economy”, issued on December 6, 2016. The targets have been determined in regard to decrease in oil dependence of the economy of the country, development of small and medium-sized businesses to make the national economy more competitive and appropriate steps are being taken. In partic
Journal number 4 ∘ Natela LatsabidzeMurman TsartsidzeGiorgi KhmaladzeNikoloz Khmaladze

Enterprise (business ) valuation methods and the peculiarities of their employment in practice

Expanded Summary Business valuation is a complicated, expensive and time-consuming process. According to the norms of procedures and professional standards approved in the international practice, the definitely established approach or recommendation on applying the specific method of valuation does not exist. The method of valuation should be selected taking into consideration the specific objective of business valuation.  It is worth noting, that the evaluator is free to approach and select the valuation method, he/she can apply the various methods considering the aim of valuation and the specific situation. The process of selection should necessarily comprise thereview of appropriate basis for the value and preconditions of valuation, the analysis of the strength and limitations of possible approaches and methods of valuation, the availability of the required, credible information for applying the specific method. According to the international standards of valuation three bas
Journal number 4 ∘ Alfred Kuratashvili


Expanded Summary  In scientific work, the Theory of balance of rights and responsibility of officials is considered as a necessary scientific basis for the eradication of economic fascism and criminal business in society and in the state. The reason for the occurrence in the modern world of economic fascism is the economic aim – the economic purposefulness – of the functioning of society and the state (?!). Consequently, the "supremacy" – domination – of money, market, profit, capital over a person in society and in the state, characteristic of the essential nature of capitalism, is a manifestation of economic fascism (?!). Moreover, the theoretical "grounding" and "justification" of economic fascism is given in the so-called "Invisible Hand" of the famous Adam Smith (?!). As for the followers of the founder of classical political economy – the famous Adam Smith, who is at the same time the founder and “bleach” of economic fascism, it
Journal number 4 ∘ Joseph Archvadze


(Was welfare in Georgia higher than the USSR average?)  Expanded Summary  After the collapse of the USSR, the republics that gained independence began to take an independent path of development. The problems that they face along this path, the Russian Federation, as the successor of the USSR, are completely attributed to them, while the “contribution” of Russia itself to the problems that arise is by no means insignificant. In particular, the goal of such a policy towards Georgia is to present the situation in such a way that Georgia lived at the expense of other republics, in particular, at the expense of Russia in the Soviet period, and, secondly, to explain the difficult economic situation of Georgia in the post-Soviet period as the exceptional "merit" of Georgia itself and the result of the fact that Russia no longer contains it. The purpose of this position is to generate nostalgia for the USSR population in Georgia, which fully fits into the Chubais concep
Journal number 4 ∘ Paata KoguashviliNikoloz Chikhladze

“Dont Lose Life in a Rural areas, You Will destroythe City”

annotation Peasants are one of the powerful tools of preserving the nation's identity. Peasants are often regarded simply as agricultural producers, but their role goes beyond these frameworks. Peasants, especially in Georgia, cannot be seen as a means to an end - they should only be seen as an end. The Georgian village has been severely depleted due to poor social-economic (including agricultural and rural development) policies implemented in recent years. Under such conditions, it is virtually impossible to stop the increased migration of the population from the villages, to get out of the agrarian crisis, and to develop them without proper safeguards and external support. Only real systemic employment and complex measures can be achieved through real employment in rural areas and a relatively short period of socio-economic development. One of them is the promotion of entrepreneurial activity of human resources. As a rule, functions that are not provided with self-regulatory mark
Journal number 4 ∘ Ramaz OtinashviliEvgeni BaratashviliTamar Lagvilava


Expanded Summary As a business cannot exist without a market, it is also impossible to imagine a market without competition. The main subject in each competition is resources- information, finances, technology, etc. However, the most important is the customer (“Client”) itself, without whom competition could not exist. Competitive strategy includes several factors that are essential for a business’s success such as competitive pricing and quality, customer value for products (services), the professionalism of the employees and a well-established image, business experience and reputation, credit history and a relevant level of management culture, etc. To be competitive, one would need relevant information and experience. Business development concept should be drafted - “comparative competitive strategy”, related to the search and study of modern methods of business management and their implementation. This practice is called Benchmarking. Any type of be
Journal number 4 ∘ Teimuraz Gogokhia


Summary  Research purpose of the given work, using a large sample of firm-level data from the Business Environment and Enterprise Performance Survey (BEEPS V round) across 28 transition economies, is to explore the role of business environment in transition economies in enhancing firm’s performance: —  R&D activity; —  innovation; —  labour productivity. Research objective is to study of the structural relationship —  between Business Environment – Research & Development – Innovations – Labor productivity —  at the individual firm level —  in transition economies, —  applying augmented CDM model. Research novelty is that we modify traditional CDM model by incorporating additional equation for the business environment performance and estimating the effect of BE at each stage of the model. The main contribution of this study is that it provides new empirical insights into the casual link between Bus
Journal number 4 ∘ David JalagoniaIrma Gelantia-Akhvlediani

The Role of Internal Audit for Corruption and Fraud Prevention in the Georgian Public Administration

,,Integrity, Transparency and the fight against Corruption  have to be part of the culture. They have to be thought as fundamental values  Angel Gurria[1] Resume. Effective Management of State Budget is the subject of interest of legal and physical person-each citizen of the state. Corruption and fraud existing  in the country always endanger the targeted management of budget funds. It is confirmed by studies that millions of money are lost annually through fraud and corruption worldwide (1). In addition, Modern world practice shows that high risks of corruption are typical for the countries in the transition-stage, with weak economics and administrations. Unfortunately, Georgia is still among this countries. In terms of program budgeting, corruption and fraud impede the country's sustainable and stable development.  Despite the implemented activities in the public administration of Georgia, there is still a lack of good governance principles, effective financ
Journal number 4 ∘ Erekle Pirveli


Expanded Summary  The Law of Georgia on Accounting, Reporting and Auditing 2016, through increased financial transparency, aims to promote country’s economic growth (Law 2016, Article 1.2). For the first time in the history of Georgia, the private sector entities are obliged to publicly disclose their financial statements. First and second category entities, plus the Public Interest Entities (about 700 entities), had to publish their audited financial statements by October 1st, 2018; about 3.000 entities of a third category had to submit their financial statements by October 1st, 2019; and about 80.000 entities of an IV category have to do so by October 1st, 2021. According to existing evaluations, the ongoing changes are unprecedented within the country’s history. Though, the question remains: does a mandatory public disclosure of financial information promote financial transparency? According to prior literature, financial statements’ public disclosure is nec
Journal number 4 ∘ Murman Kvaratskhelia


Expanded Summary  In Conditions of open economy categorization of countries according to the degree of economic freedom is very important. Its indicator differs from region to region. Countries are divided into two categories by the freedom level – from most free or open to the most closed. The first five countries having the open economy are: Hong Kong, Singapore, New Zealand, and Austria.  The closed economy countries are: North Korea,   Venezuela, Cuba, Republic of Congo, and Eritrea. The most significant is the fact that the freedom economy index tends to decrease.  The level of freedom of economy is as a rule assessed on the basis of the qualitative and quantitative factors, which in their turn are divided into four categories. Among them the most significant are: the supremacy of law, government measure, and freedom of business, labor and currency, freedom of trade, investments and finances. In this present paper, index of economic freedom is anal
Journal number 4 ∘ Nino Paresashvili

Conflict Management Impact on Employee Behavior

Summary Nowadays changes in a personal life are the inseparable part of everyone. We observe changes in every environment: in politics as well as economy and technology. Since these changes influence organizations on different levels, changes within the above-mentioned fields will also affect organizations of different type or scale. On the one hand the dynamic process within the organization is always followed by adequate changes, but on the other hand changes are accompanied by conflict. Vast majority of researches prove that conflict affects employees. Therefore, conflict management is crucial for managers and can be quite challenging. There are different types of conflict. Conflict that affects employees’ behavior and the relationships in the workplace will influence the outcomes. Hence, the managers need to handle conflicts in a way that shapes the behavior of employees and adjusts it to the goals of the organization. The reasons of conflict must be analyzed in the first pl
Journal number 4 ∘ Maya Grigolia

Fiscal Policy Multiplier Calculation Using Input-Output Tables for Georgia

Expanded Summary Fiscal multipliers are used to estimate the effectiveness of fiscal policy (Samuelson, P.A. 1948). Due to the complexity of the fiscal policy and transmission mechanisms, existing estimates of multipliers in the literature vary widely from negative to positive numbers. Those who are skeptical about the effectiveness of discretionary fiscal policy mainly refer to those academic papers resulting in smaller fiscal multipliers, while those who believe in the effectiveness of fiscal policy rely on the research that yields larger multipliers. This article represents another step forward in a discussion about the empirical assessment of fiscal effects for Georgia. Both, applied theoretical and empirical literature, have shown that the general economic situation and the positioning of monetary policy influence the fiscal multiplier (Blanchard, O., Perotti, R. 2002). Depending on what will be the response of monetary policy (it will increase nominal interest rates in response
Journal number 4 ∘ Ani Kalandia

Ease of Doing Business Ranking 2020

Summary: Doing Business is part of the World Bank Group's annual report. It is a quantitative indicator of business regulation and Protection of property rights.The report examines regulations that enhance or hinder businessactivities. The article discusses the criteria by which a country is assessed. Main emphasis is on doing business, ways to start a business, bureaucratic measures, reforms, restructuring mechanisms, taxes, levels of corruption, the strength of financial systems. The article highlights the importance of doing business as a powerful instrument that governments can use to create regulatory policies, structural reforms intended to encourage economic growth. Keywords: Doing business, ranking, top reformer, business indicators, investments. Introduction The World Bank annually establishes ratings and spreads the information about the state of doing business. Ratings are made among 190 countries worldwide. During the last decade, Georgia has made rapid advance.  Wh
Journal number 4 ∘ Levan kikilashviliRusudan Kvaratskhelia

Ecocity role and importance in empowering of human life degree

Expanded Summary Nowadays when Georgia, has become European Leading country for the first time in Georgian history it’s getting more and more important just to make deeper relationship with the European Union. Georgia has defined 4 priorities for the cheerleading and they are: human rights and environmental protection. As we know the connection Eurpoean Union and Georgia consist of environmental protection and meal insecuarance just support the degree of human health and life duration. As we know the greatest importance of sickness and death has caused by uncatching diseases. For this reason living accommodation greatly affects on human life duration and health condition, we get in touch with risk factors almost everywhere. Such as: air pollution (degrees of inner and outer air), inadequate water(hygienic and sanitary), chemicals and bio-agents, radiation, agricultural remains, building works (tools), roads, climate disorder, labor risks, noise. As for atmosphere pollution, th
Journal number 4 ∘ Erekle Zarandia

Development of potential revenues of Local Self-Government in Georgia

(Case of Samegrelo and Upper Svaneti Region, Georgia)  Summary. My research topic is about a very important issue in Georgia, which can provoke the development of irreversible economic processes. Geographically, a village is the smallest administrational and municipal unit and logically, if the smallest territory is affluent, the state is correspondingly wealthy. Economic advancement in Georgia largely depends on the development of local democracy and self-government. The essence and the aim of the local self-government is to create possibilities for local citizens to resolve local problems independently. It will not be possible, if the rights, responsibilities and duties of the territorial and administrational units are not clearly distributed. The main flaw of the reforms carried out so far in Georgia in the process of local democracy formation is that the local authorities are largely depended on the central government and they are not focused on realizing the interests of