DOI:  10.36172/EKONOMISTI.2021.XVII.01.LOBZHANIDZE

Expanded summary 

The article analyzes the economic consequences caused by the coronavirus. There is discussed the crisis that is not a classic type, but a qualitatively new global economic one, because its causes are not endogenous, but exogenous, that is, when these causes are generated not in the economy, but provoked by a source outside the economy – from the medical sector.With the use of modern technologies, the processes in the real world have shifted somewhat to the electronic mode, however, in a number of economic sectors this change requires a great deal of resources and a long period of time to adapt or may not be possible to be implemmented at all.

Particular attention is paid to the main problems of the water sector, both worldwide and in Georgia. The study highlights three main challenges: 1. the problems in the field of water consumption and supply; 2. Delayed working processes of companies providing raw materials, equipment and technologies in the water sector; 3. Conservatism of  private sector companies in the water industry.  The first challenge reflects in the process of water supply which is very time consuming and important, which is mostly ignored, and this is reflected in the irrational consumption of water. The problem of retaining the jobs of specialists working in this field has arisen due to the current agenda, especially since the current situation, timely water supply, rational distribution, medical staff supply and clean water treatment are vital for billions of people worldwide. The second challenge describes the problmes in supply chain of the water industry that is very wide and includes raw material suppliers, technology supply and processing enterprises, supply companies, industry specialists and administrative managers. For all these stakeholders, there are two main challenges - on the one hand, protecting the rights and safety of their employees, and on the other hand, working as smoothly as possible in the production and supply chain. Discussions on this issue started in the early stages of the virus spread only on the example of China, however, it quickly became a global challenge. In order to analyze th third challenge the water is dicussed not only as a production factor as well as the product and service in the market where bottled water supply companies operate. Given the current situation, no wonder  that commercial companies try to save money and defer capital expenditures for the future. This will lead to a temporary suspension of capital projects. In addition, the issue of workforce safety is also relevant and actual in private companies. The managers of the company try to limit as much as possible the number of specialists involved in the on-site work process and working hours, however, there is a second economic problem - unemployment. Maintaining a balance between these two issues remains a major challenge.

The article discusses how the regional organizations, local governments, private companies and the public respond to the abovementioned problems caused by the coronavirus in the water industry. According to the World Economic Forum (WEF), only 60% of the world's population has clean water and soap for the first and most basic hygiene standard in the way of fight against coronavirus - frequent hand washing. The remaining 40% have limited or almost no access to this facility. Therefore, first of all, this problem should be addressed and analyzed. According to the experts of the World Economic Forum, this issue can be solved through more prudent planning and cooperation. It should be noted that a number of countries have already partially responded to this problem. UN agencies, local governments and private companies have also started building drinking water and laundry facilities in settlements and public places where access to water is very low. The problem of clean and drinking water is reflected in the "Water Risk Atlas" proposed by the World Resources Institute (WRI). Visualization of the Atlas is proposed in the article. Particularly problematic regions are visible, such as Africa including the entire southern part, several countries in Asia, and the northwestern parts of South America. What is more, it is noted in the article that the water service fee has been partially abolished or a preferential period has been established in a number of countries. This mainly applies to European countries and more than 90 cities in different US states, the UK has a distinctive policy in this regard, where there is a separate consumer administration body - the Consumer Council in the Water Sector (CCW). This department manages the problems caused by the coronavirus quite effectively by taking into account the needs of the users. A special coordination agency was set up under the CCW in March 2020 to act as an intermediary between retailers and their customers, consulting with them and assessing problems. Based on the information processed, on April 16, 2020, they have already published their first report and developed special discount offers. For retailers, the months of May, June, and July 2020 were declared a preferential period, while the deadline for full payment of the rest of the deferred tax was approved at the end of March 2021. Their main goal is, on the one hand, not to harm the consumer and, on the other hand, to maintain the production process as much as possible. According to their working agenda depending on the changed situation during the next period, their decisions will also change purposefully and reasonably.

The article also refers to the processes developed in Georgiain this case. In Georgia, as in the rest of the world, due to the circumstances created by COVID-19, companies face financial problems to repay business loans or pay taxes. For this purpose, the Government of Georgia has developed an economic stimulus plan, the main issues of which are: Restructuring of business loans; Deferment of property and income taxes for companies operating in the tourism sector; Refund of value added tax (VAT) during the preferencial period; Development of a state co-financing program to repay loan interest rates for hotels; deferment of consumer loan repayment obligations; Provide financial assistance to those who have lost their jobs. In particular, regarding the water industry in Georgia, preferential regulation in the field of consumption was extended to water consumption in accordance with the Resolution N220 of April 3, 2020 "On Approval of Rules and Conditions for Subsidizing Utility Taxes". Subsidizing electricity and / or natural gas and / or drinking water for April and May (for each month) and for the second round for the next three months from November 2020. As for the private companies in the water industry, their administrative and operational managers try not to stop the production process in limited conditions in order to protect healthcare, as is the world trend, and not to cause decrease in bottled water supply to the market, as well as unemployment, which will eventually lead to rising water prices. From May 2020, IDS Borjomi Georgian Company started online sales throughout Georgia. Products are posted on the online platform "Vendoo".

The study of the main challenges in the water industry is based on the analysis of reports of international and local organizations, statistical data, and the scientific works of  the field experts, cited as the sources.

According to the discussed challenges the article presents conclusions and offers recommendations for solving problems in the water industry for short-term and long-term periods. There is highlighted in the article that employers in the water industry should do their best to retain employees. In the challenging conditions, the issue of temporary release and appropriate assistance during the release period is very important. Also, it is too essential to keep balance and manage the production process and unemployment level in a lockdown period. Promoting the introduction of innovative technologies in the market - tools commercialization and digital transformation in the production and supply process, the introduction of green technologies in water use is especially important. 

Keywords: Water Industry, Coronomic Crisis, Water Consumption and Supply, Water Risk Atlas.