Journal number 2 ∘ Ramaz Abesadze ∘

Alternative Energy[1]

Summary.Nowadays concerning to energy sector still stands strictly two the most important problems: 1. Exhaustion of traditional sources of energy and 2. Protection of environmentfrom energetic contamination. Into this work is studied the both problems throughout the world modern status and conditions. Also in the work has analyzed the possibilities for development of renewable and alternative energies in Georgia. Key words: Alternative Energy, Hydropower, Solar power, Wind energy, Geothermal energy.. Introduction The energetic sector is the biggest consumer of energy resources. Nowadays the most of energy resources that have used are unrenewable, and after a certain period that resources won’t exist. Thus, the agenda is the task of searching alternative energy resources. Energy is also the biggest pollutant ofenvironment which requires the creation of clean energy technologies. Nowadays, the world has made a quite huge steps in that

Journal number 2 ∘ Liliya Ukrayinets ∘

CHINESE FDI TO UKRAINE IN THE CONTEXT OF ROAD AND BELT INITIATIVE

Summary.China is the leader of economic development among the countries of the Asian region and given its strong economic expansion it is the key economic center of the Asian and Eurasian mega-regions The empirical study shows that Chinese investors receive additional incentives to invest in Ukraine if there is a prior positive investment experience, increasing market potential, and openness and economic freedom. One of the main priorities of modern Ukrainian foreign policy is joining Belt and Path Initiative Keywords: China, foreign trade, foreign economic relations, FDI, Ukraine. Introduction Until recently the official key priority of Chinese economic policy was the attraction of inward FDI, but gradually there was a shift to the outward foreign direct investment from China. In the early 2000's, the country's government proclaimed the launch of a strategy of “going global” that encouraged Chinese enterprises to invest abroad. Since the mid-2000s, China's FDI ha

Journal number 2 ∘ Alfred Kuratashvili ∘

PHILOSOPHY OF THE SOCIAL GOAL – METHODOLOGICAL BASIS OF SOCIAL-ECONOMIC PROGRESS

Expanded Summary The whole history of development of philosophical, political, legal and economic thought, as well as modern views and approaches of scientists, politicians and so on towards problems of functioning and development of the society, the state and mankind as a whole, in my deep belief, were based and are based, as I call it, on the philosophy of the means. Though these views and approaches – as the philosophical trend, as the philosophy of the means and as the philosophical system did not exist till me (before creation by me of scientific works on these problems). Consequently, exactly for this reason even the term – the philosophy of the means – did not exist till me in the science, in the policy and in the practice. It is necessary to pay attention here to the fact that, in my deep belief, the mentioned views and approaches, proceeding from interests of people, are obviously erroneous both from the methodological and the theoretical and practi

Journal number 2 ∘ Nugzar Paichadze ∘

Strategic Management of Human Resource Development and Organized Training

On the modern stage of public development Management of Human Resource Development and Organized training of employees has a great importance. Main elements of Human resources are: training, education, upbringing and development. Its strategic priorities are considered as: 1) Understanding the teaching necessity as provision for sustainable perfection of human resources; 2) Increasing the managers’ active participation in staff training; 3) Widening of personnel teaching and training possibilities in the organization; 4) Focusing on all employees of the organization; 5) Management of teaching and upbringing process. The researchers working on this problem offer the following models of human resources development strategy: a) centralized; b) decentralized; c) functions transferring; d) business service; e) outsourcing. Organizational teaching makes a great contribution in development of the organization and business itself. Due to this the intellectual ca

Journal number 2 ∘ Solomon Pavliashvili ∘ Zurab Garakanidze ∘ Nata Garakanidze ∘

The spatial harmonization of the global gas market

Summary At present, the only place where Caspian and Russian gas transport network intersect is in Geor-gia. In that country, the North-South Trunk Pipeline, which runs from Russia to Armenia via Georgia,crosses the South Caucasus Pipeline (SCP), which is currently pumping gas from the first stage of Shah Deniz (SD1) and which will direct gas into Nabucco or the Trans-Anatolian Gas Pipeline. Thepoint of intersection is near the village of Jandara, near Gardabani. The North-South Trunk Pipelinebegins in the southern Russian city of Mozdok in Russia and terminates at the Armenian-Georgianborder. The 235-km conduit includes two pipes—one with a diameter of 1,200 mm and a second orspare tube with a diameter of 700 mm. Most of the gas transited through these pipes is now deliveredto Armenia, as Georgia has been receiving SD1 gas since 2007. Following the collapse of the SovietUnion, the pipeline operated far below capacity. While the design capacity of both pipes comes to18 bcm per y

Journal number 2 ∘ Nazira Kakulia ∘

Georgian Institutional Environment Assessment by WGI Indicators and its Impact on Economic Growth

The decline of Eastern European and socialist countries of the former Soviet Union and transformation of centrally planned farming into market economy in new states that were based on their territories has been a major influence in the history of modern world economics at the end of the 20th century. There is some interdependence between economic developments and processes in the economies of any country. One of the fundamental relationships in the economies of countries with transformation economies is the link between institutions, which are operating in the country, and economic growth. Regarding this issue, even though the importance of the problem is high, a common approach to institutions’ and economic growth problems is not yet formulated. Worldwide governance indicators estimate the quality of governance of more than 200 countries around the world. The assessment is given as absolute value and rating. Absolute assessment refers to the situation of an individual country

Journal number 2 ∘ Murman Tsartsidze ∘

EFFECTIVE EMPLOYMENT-THE KEY FACTOR IN HUMAN WELFARE AND ECONOMIC GROWTH IN GEORGIA

Expanded Summary In the era of modern globalization, when the country is actively involved in the process of euro – integration, the principal objective of inclusive economic growth and development represents the improvement of the quality of work life and the rise of living standards of the population. The latter is impossible to be achieved without the enhancement of human resources and the rational, effective utilization of the existing labor potential. That is why, the struggle for decent work, life conditions and social safety holds the leading place and becomes the essential goal of the macro-economic policy of the state. Employment is the arduous socio-economic, demographic and psychological phenomenon which can be regulated through applying the systemic approach and taking the complex measures. Based on the aforesaid, the top priority is given to the employment policy. And the realization of the principle –“ The decent work is the foundation

Journal number 2 ∘ Malkhaz Chikobava ∘

Does inflation targeting provide price stabilization?

Inflation targeting means that the central bank subordinates its policy to a single goal - to reduce inflation rates. The latter, judging by the numerous explanations of the National Bank of Georgia, is understood as the consumer price index (CPI). Thus, announcing the transition to the inflation targeting policy, the National Bank of Georgia has in mind that the monetary policy is subject to the achievement of the CPI target indicators. In order to control inflation in an open economy and its over-dependence on imports, it is first necessary to control the Lari exchange rate. But the monetary authorities, on the contrary, refused such control, as from many other instruments for regulating the currency and financial market, including the most effective ones, connected with the use of currency restrictions. At the same time, for any experienced speculator, it is obvious that with a single interest rate in the conditions of free movement of money in the capital account, the national cur

Journal number 2 ∘ Nona kavtaradze ∘

Foreign trade trends of Georgia in 2018

Summary. The article presents the dynamics and structure of the foreign trade of Georgia, as well as export-import of the country (commodity) and trade balance statistics. On the basis of complex analysis of this material, recommendations have been developed that together with the expansion of export potential will promote Georgia's integration into the international and European markets. Keywords: trade deficit, export, import, trade turnover. Foreign trade trends of Georgia in 2018 Under the current market economy, improving the country's economic situation is largely dependent on its involvement in international trade. Consequently, the dynamics and structure of the foreign trade in the state and the overall trade policy issues in all countries, including Georgia, do not lose its topicality. Georgia's foreign trade turnover increased by 16.9 percent in 2018 (compared to the same in 2017) and total volume of 12 484.4 million USD in the absolute value. As a result, the registered

Journal number 2 ∘ Rusudan Chitava ∘

VALUE CREATION IN THE INSURANCE SECTOR OF GEORGIA

Abstract In the modern globalized world with rapid and complex changes, cross-border mergers and acquisitions, capital and investment movements, companies need more sophisticated and advanced indicators to measure performance. Emerging markets is considered to be “growth engine “of the global economy, whereas economic growth drives growth in insurance sector with the emerging markets. Thus meeting these challenges in insurance business requires application of modified concepts and measures for performance evaluation. The main challenge for the management of an insurance company, is to define the key drivers of the value creation process, and control them in order to receive benefits in the long run. In order to conduct the valuation in Georgian insurance industry, we decided to apply Economic Value Added approach, which is relatively new concept, to evaluate how actually this business performs. Keywords: Economic Value Added, Insurance, Risk, Capital Cost, Cost of

Journal number 2 ∘ Irakli Aslanishvili ∘

The role of the framework of economic order in the development of business environment in Visegrad countries

Expanded Summary The objective of economic success is not only to achieve positive developments in economic indicators, but to ensure a high living standard and quality of life for the population. It is therefore necessary to measure economic success in terms of social and socio-economic indicators, which indicate the quality of life of the population. A relevant indicator of economic development and economic performance is the gross domestic product (GDP) per capita. Although this indicator is the most widely used, it has recently been subject to a wave of criticism. Therefore it is necessary to evaluate the economic success, taking into account other variables, which in themselves imply social indicators: net economic welfare, Human Development Index (HDI), Index of Competitiveness, Index of Economic Freedom (IEF), Prosperity Index, Corruption Perception Index and others. The subject of this article is to evaluate the economic performance of the Visegrad Group countries using

Journal number 2 ∘ Salome Silagadze ∘

Tertiary Education and Migration: Some Aspects of Youth Migration

Expanded Summary The outflow of young talent is not an economic, but a social problem as well as the fututr development of a country may be hindered. For a developing country like Georgia it is extremely important to have a self-actualized youth. Hence, observing and studying some aspects of the youth migration is a safe mean of acknowledging our problems and developing ways to battle the interruption of further expansion. Due to the importance of the subject the article discusses some of the relevant recent researches and statistical data that have been published by various international institutions and economic scientists. According to the study conducted by the United Nations, in 2016 there were 4.854 million international students registered around the world. The mentioned figure was equal to only the was about 3.961 million in 2011 [UNESCO, 2018] . Migrating in order to recieve education is especially alluring to young people who live in developin

Journal number 2 ∘ Ineza Vatsadze ∘

Current State and Challenges of Tourism Business Development in Racha

Extensive Summary Rural tourism business is recognized as a dynamic and promising direction of the tourism industry, with ability to solve socio-economic problems of the individual, village, region and country. Rural tourism business, as a source of job creation, has gained great importance for today when the government has chosen the innovation strategy of economic policy- inclusive development, which means enabling more people to contribute to and benefit from economic activities. Rural tourism development is of particular importance for the development of an economically distressed region such as Racha. For strategic planning of tourism development in Racha it is necessary to assess the current situation, which is the main purpose of this article and to this end the following tasks are set: Determination of possibilities of accommodation facilities of tourists in the Municipalities of Racha; Determination of working experience of persons engaged in rural touris

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 E ISSN 2346-8432 Print ISSN 1987-6890	Journal number 2 ∘ Ramaz Abesadze ∘ Alternative Energy[1] Summary.Nowadays concerning to energy sector still stands strictly two the most important problems: 1. Exhaustion of traditional sources of energy and 2. Protection of environmentfrom energetic contamination. Into this work is studied the both problems throughout the world modern status and conditions. Also in the work has analyzed the possibilities for development of renewable and alternative energies in Georgia. Key words: Alternative Energy, Hydropower, Solar power, Wind energy, Geothermal energy.. Introduction The energetic sector is the biggest consumer of energy resources. Nowadays the most of energy resources that have used are unrenewable, and after a certain period that resources won’t exist. Thus, the agenda is the task of searching alternative energy resources. Energy is also the biggest pollutant ofenvironment which requires the creation of clean energy technologies. Nowadays, the world has made a quite huge steps in that Journal number 2 ∘ Liliya Ukrayinets ∘ CHINESE FDI TO UKRAINE IN THE CONTEXT OF ROAD AND BELT INITIATIVE Summary.China is the leader of economic development among the countries of the Asian region and given its strong economic expansion it is the key economic center of the Asian and Eurasian mega-regions The empirical study shows that Chinese investors receive additional incentives to invest in Ukraine if there is a prior positive investment experience, increasing market potential, and openness and economic freedom. One of the main priorities of modern Ukrainian foreign policy is joining Belt and Path Initiative Keywords: China, foreign trade, foreign economic relations, FDI, Ukraine. Introduction Until recently the official key priority of Chinese economic policy was the attraction of inward FDI, but gradually there was a shift to the outward foreign direct investment from China. In the early 2000's, the country's government proclaimed the launch of a strategy of “going global” that encouraged Chinese enterprises to invest abroad. Since the mid-2000s, China's FDI ha Journal number 2 ∘ Alfred Kuratashvili ∘ PHILOSOPHY OF THE SOCIAL GOAL – METHODOLOGICAL BASIS OF SOCIAL-ECONOMIC PROGRESS Expanded Summary The whole history of development of philosophical, political, legal and economic thought, as well as modern views and approaches of scientists, politicians and so on towards problems of functioning and development of the society, the state and mankind as a whole, in my deep belief, were based and are based, as I call it, on the philosophy of the means. Though these views and approaches – as the philosophical trend, as the philosophy of the means and as the philosophical system did not exist till me (before creation by me of scientific works on these problems). Consequently, exactly for this reason even the term – the philosophy of the means – did not exist till me in the science, in the policy and in the practice. It is necessary to pay attention here to the fact that, in my deep belief, the mentioned views and approaches, proceeding from interests of people, are obviously erroneous both from the methodological and the theoretical and practi Journal number 2 ∘ Nugzar Paichadze ∘ Strategic Management of Human Resource Development and Organized Training On the modern stage of public development Management of Human Resource Development and Organized training of employees has a great importance. Main elements of Human resources are: training, education, upbringing and development. Its strategic priorities are considered as: 1) Understanding the teaching necessity as provision for sustainable perfection of human resources; 2) Increasing the managers’ active participation in staff training; 3) Widening of personnel teaching and training possibilities in the organization; 4) Focusing on all employees of the organization; 5) Management of teaching and upbringing process. The researchers working on this problem offer the following models of human resources development strategy: a) centralized; b) decentralized; c) functions transferring; d) business service; e) outsourcing. Organizational teaching makes a great contribution in development of the organization and business itself. Due to this the intellectual ca Journal number 2 ∘ Solomon Pavliashvili ∘ Zurab Garakanidze ∘ Nata Garakanidze ∘ The spatial harmonization of the global gas market Summary At present, the only place where Caspian and Russian gas transport network intersect is in Geor-gia. In that country, the North-South Trunk Pipeline, which runs from Russia to Armenia via Georgia,crosses the South Caucasus Pipeline (SCP), which is currently pumping gas from the first stage of Shah Deniz (SD1) and which will direct gas into Nabucco or the Trans-Anatolian Gas Pipeline. Thepoint of intersection is near the village of Jandara, near Gardabani. The North-South Trunk Pipelinebegins in the southern Russian city of Mozdok in Russia and terminates at the Armenian-Georgianborder. The 235-km conduit includes two pipes—one with a diameter of 1,200 mm and a second orspare tube with a diameter of 700 mm. Most of the gas transited through these pipes is now deliveredto Armenia, as Georgia has been receiving SD1 gas since 2007. Following the collapse of the SovietUnion, the pipeline operated far below capacity. While the design capacity of both pipes comes to18 bcm per y Journal number 2 ∘ Nazira Kakulia ∘ Georgian Institutional Environment Assessment by WGI Indicators and its Impact on Economic Growth The decline of Eastern European and socialist countries of the former Soviet Union and transformation of centrally planned farming into market economy in new states that were based on their territories has been a major influence in the history of modern world economics at the end of the 20th century. There is some interdependence between economic developments and processes in the economies of any country. One of the fundamental relationships in the economies of countries with transformation economies is the link between institutions, which are operating in the country, and economic growth. Regarding this issue, even though the importance of the problem is high, a common approach to institutions’ and economic growth problems is not yet formulated. Worldwide governance indicators estimate the quality of governance of more than 200 countries around the world. The assessment is given as absolute value and rating. Absolute assessment refers to the situation of an individual country Journal number 2 ∘ Murman Tsartsidze ∘ EFFECTIVE EMPLOYMENT-THE KEY FACTOR IN HUMAN WELFARE AND ECONOMIC GROWTH IN GEORGIA Expanded Summary In the era of modern globalization, when the country is actively involved in the process of euro – integration, the principal objective of inclusive economic growth and development represents the improvement of the quality of work life and the rise of living standards of the population. The latter is impossible to be achieved without the enhancement of human resources and the rational, effective utilization of the existing labor potential. That is why, the struggle for decent work, life conditions and social safety holds the leading place and becomes the essential goal of the macro-economic policy of the state. Employment is the arduous socio-economic, demographic and psychological phenomenon which can be regulated through applying the systemic approach and taking the complex measures. Based on the aforesaid, the top priority is given to the employment policy. And the realization of the principle –“ The decent work is the foundation Journal number 2 ∘ Malkhaz Chikobava ∘ Does inflation targeting provide price stabilization? Inflation targeting means that the central bank subordinates its policy to a single goal - to reduce inflation rates. The latter, judging by the numerous explanations of the National Bank of Georgia, is understood as the consumer price index (CPI). Thus, announcing the transition to the inflation targeting policy, the National Bank of Georgia has in mind that the monetary policy is subject to the achievement of the CPI target indicators. In order to control inflation in an open economy and its over-dependence on imports, it is first necessary to control the Lari exchange rate. But the monetary authorities, on the contrary, refused such control, as from many other instruments for regulating the currency and financial market, including the most effective ones, connected with the use of currency restrictions. At the same time, for any experienced speculator, it is obvious that with a single interest rate in the conditions of free movement of money in the capital account, the national cur Journal number 2 ∘ Nona kavtaradze ∘ Foreign trade trends of Georgia in 2018 Summary. The article presents the dynamics and structure of the foreign trade of Georgia, as well as export-import of the country (commodity) and trade balance statistics. On the basis of complex analysis of this material, recommendations have been developed that together with the expansion of export potential will promote Georgia's integration into the international and European markets. Keywords: trade deficit, export, import, trade turnover. Foreign trade trends of Georgia in 2018 Under the current market economy, improving the country's economic situation is largely dependent on its involvement in international trade. Consequently, the dynamics and structure of the foreign trade in the state and the overall trade policy issues in all countries, including Georgia, do not lose its topicality. Georgia's foreign trade turnover increased by 16.9 percent in 2018 (compared to the same in 2017) and total volume of 12 484.4 million USD in the absolute value. As a result, the registered Journal number 2 ∘ Rusudan Chitava ∘ VALUE CREATION IN THE INSURANCE SECTOR OF GEORGIA Abstract In the modern globalized world with rapid and complex changes, cross-border mergers and acquisitions, capital and investment movements, companies need more sophisticated and advanced indicators to measure performance. Emerging markets is considered to be “growth engine “of the global economy, whereas economic growth drives growth in insurance sector with the emerging markets. Thus meeting these challenges in insurance business requires application of modified concepts and measures for performance evaluation. The main challenge for the management of an insurance company, is to define the key drivers of the value creation process, and control them in order to receive benefits in the long run. In order to conduct the valuation in Georgian insurance industry, we decided to apply Economic Value Added approach, which is relatively new concept, to evaluate how actually this business performs. Keywords: Economic Value Added, Insurance, Risk, Capital Cost, Cost of Journal number 2 ∘ Irakli Aslanishvili ∘ The role of the framework of economic order in the development of business environment in Visegrad countries Expanded Summary The objective of economic success is not only to achieve positive developments in economic indicators, but to ensure a high living standard and quality of life for the population. It is therefore necessary to measure economic success in terms of social and socio-economic indicators, which indicate the quality of life of the population. A relevant indicator of economic development and economic performance is the gross domestic product (GDP) per capita. Although this indicator is the most widely used, it has recently been subject to a wave of criticism. Therefore it is necessary to evaluate the economic success, taking into account other variables, which in themselves imply social indicators: net economic welfare, Human Development Index (HDI), Index of Competitiveness, Index of Economic Freedom (IEF), Prosperity Index, Corruption Perception Index and others. The subject of this article is to evaluate the economic performance of the Visegrad Group countries using Journal number 2 ∘ Salome Silagadze ∘ Tertiary Education and Migration: Some Aspects of Youth Migration Expanded Summary The outflow of young talent is not an economic, but a social problem as well as the fututr development of a country may be hindered. For a developing country like Georgia it is extremely important to have a self-actualized youth. Hence, observing and studying some aspects of the youth migration is a safe mean of acknowledging our problems and developing ways to battle the interruption of further expansion. Due to the importance of the subject the article discusses some of the relevant recent researches and statistical data that have been published by various international institutions and economic scientists. According to the study conducted by the United Nations, in 2016 there were 4.854 million international students registered around the world. The mentioned figure was equal to only the was about 3.961 million in 2011 [UNESCO, 2018] . Migrating in order to recieve education is especially alluring to young people who live in developin Journal number 2 ∘ Ineza Vatsadze ∘ Current State and Challenges of Tourism Business Development in Racha Extensive Summary Rural tourism business is recognized as a dynamic and promising direction of the tourism industry, with ability to solve socio-economic problems of the individual, village, region and country. Rural tourism business, as a source of job creation, has gained great importance for today when the government has chosen the innovation strategy of economic policy- inclusive development, which means enabling more people to contribute to and benefit from economic activities. Rural tourism development is of particular importance for the development of an economically distressed region such as Racha. For strategic planning of tourism development in Racha it is necessary to assess the current situation, which is the main purpose of this article and to this end the following tasks are set: Determination of possibilities of accommodation facilities of tourists in the Municipalities of Racha; Determination of working experience of persons engaged in rural touris