COMMENSURATEDEVELOPMENTOF THE COUNTRIES IN THE WORLD AND IT’S ASSESSMENT INDICATORS

Gigi Elizbarashvili

Journal number 2 ∘ Gigi Elizbarashvili ∘
COMMENSURATEDEVELOPMENTOF THE COUNTRIES IN THE WORLD AND IT’S ASSESSMENT INDICATORS

journal N2 2025

Expanded Summary

This article explores the issue of commensurate economic development across different countries, emphasizing the socio-economic challenges caused by imbalances between capital cities and regions. A significant gap in development leads to regional depopulation and resource-strained capital cities with excessively concentrated populations. This imbalance weakens a country’s overall economic potential and creates long-term structural challenges.

The study aims to analyze the importance of balanced economic development, identify ways to reduce disparities, and introduce assessment indicators. Factors contributing to regional underdevelopment include limited investments, poor infrastructure, unemployment, and lack of essential services, which drive migration and poverty. Social factors such as low incomes, high living costs, and limited opportunities for youth also play a role. Institutional and political factors further influence these imbalances through governance structures and policy measures. The result is increased internal migration to capital cities, leading to overcrowding, higher unemployment, economic stagnation in rural areas, and socio-environmental challenges such as air pollution, rising crime rates, and inflated real estate prices.

To assess economic balance, we developed deviation coefficients that compare the economic development of a country’s regions and capital city with national averages. Using this method, we analyzed 44 countries across Europe, Asia, North America, South America, and Oceania. The results categorize countries into three groups: those with commensurate development (Australia, Austria, Germany, Canada, Mexico, Norway and Chile), those with moderate imbalances (e.g., Spain, Turkey, Poland, and Georgia), and those with significant disparities (e.g., the U.S., France, South Korea, and Ukraine). Germany and Canada showed the highest levels of commensurate development, with Germany emerging as the global benchmark.

Our findings highlight the importance of learning from successful models, particularly Germany’s, to implement policies that foster regional economic growth. By reducing development disparities, countries can mitigate urbanization challenges, encourage sustainable regional economies, and promote long-term national stability. Developing tailored policies based on these insights can help create opportunities for people to thrive in their own regions, reducing migration pressures and strengthening overall economic resilience.

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 DOI: 10.52340/EKONOMISTI E ISSN 2346-8432 Print ISSN 1987-6890	Journal number 2 ∘ Gigi Elizbarashvili ∘ COMMENSURATEDEVELOPMENTOF THE COUNTRIES IN THE WORLD AND IT’S ASSESSMENT INDICATORS journal N2 2025 Expanded Summary This article explores the issue of commensurate economic development across different countries, emphasizing the socio-economic challenges caused by imbalances between capital cities and regions. A significant gap in development leads to regional depopulation and resource-strained capital cities with excessively concentrated populations. This imbalance weakens a country’s overall economic potential and creates long-term structural challenges. The study aims to analyze the importance of balanced economic development, identify ways to reduce disparities, and introduce assessment indicators. Factors contributing to regional underdevelopment include limited investments, poor infrastructure, unemployment, and lack of essential services, which drive migration and poverty. Social factors such as low incomes, high living costs, and limited opportunities for youth also play a role. Institutional and political factors further influence these imbalances through governance structures and policy measures. The result is increased internal migration to capital cities, leading to overcrowding, higher unemployment, economic stagnation in rural areas, and socio-environmental challenges such as air pollution, rising crime rates, and inflated real estate prices. To assess economic balance, we developed deviation coefficients that compare the economic development of a country’s regions and capital city with national averages. Using this method, we analyzed 44 countries across Europe, Asia, North America, South America, and Oceania. The results categorize countries into three groups: those with commensurate development (Australia, Austria, Germany, Canada, Mexico, Norway and Chile), those with moderate imbalances (e.g., Spain, Turkey, Poland, and Georgia), and those with significant disparities (e.g., the U.S., France, South Korea, and Ukraine). Germany and Canada showed the highest levels of commensurate development, with Germany emerging as the global benchmark. Our findings highlight the importance of learning from successful models, particularly Germany’s, to implement policies that foster regional economic growth. By reducing development disparities, countries can mitigate urbanization challenges, encourage sustainable regional economies, and promote long-term national stability. Developing tailored policies based on these insights can help create opportunities for people to thrive in their own regions, reducing migration pressures and strengthening overall economic resilience.