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Journal number 4 ∘ Ketevan Kveladze Nunu Kistauri Medea Melashvili
Modern Aspects of service sector and its development perspectives in Georgia


Rapid growth of service sector is one of the main tendencies at modern period of development.

Service – is a process, the integral part of which is always the people.

According to international statistical data more than 40% of foreign investments in the world is spent on the development of the service sphere that indicates not only the importance of this sector, but the vast perspectives of the further development. Such a cardinal change in  the role of the service sector has given birth to talk about the foundation of postindustrial “service” society and mention economy as a “service economy”.

At present according to the World Bank data the service sphere revenue is 68% in the world GDP structure while more than a half of employees in developed economies are concentrated in service sphere where the place of material-intensive sectors is quickly occupied by science-intensive and labor-intensive sectors.

Revising the last years dynamics of service sector we see that in developed countries the business service is the leading complex.

MICE (meetings, incentives, conferences, events) tourism business in the world is considered to be one of the most profitable and fast growing species of business service giving significant economic-benefit. In Georgia this type of business is a new direction and our country is the best place to arrange such international effects as MICE: conferences, congresses, workshops, business, sports and cultural meetings, trainings, exhibitions, symposia.

No less rapidly is developing the information service which forms the basic look of new economy and determines the national competitiveness in the world market. Computerization and informatization of economy has a steadily leading role in the modern world infrastructure.

The communications and telecommunications are at the most important position. In Georgia, broadcasting, electronic communications and information technologies is one of the most developed areas and its figures keep pace with the development of other countries of the world.

Among the rapidly advancing sectors one of the leading is the leisure service of population, its cultural and social needs service. Now a particular branch of this sector is the so-called “impression” industry – cinema, theatre, sports etc.

Travel and tourism industry in the world is the most fast growing sector in service types. Any country, including Georgia which is trying to develop tourism as a service sector has to ascertain and reveal general tendencies and regularities of tourism service of its own country; then find specific features typical only for him and differing him from other countries. otherwise the country will not be able to appear before tourism market (tourist service buyers).

Georgia is a service exporting country, where the tourism share is 60% but despite this the absolute volume of tourism share in national economic performance is not impressive yet which is a result of political and economic instability of the country and still a low level of service and infrastructure development in tourism sector.

We definitely want to pay maximum attention  to such a significant sector of economy as the service field the development of which of our opinion is the most important condition for steady advancement of the whole economy - education and science  - as we believe that development of science is the very foundation for economic development

The present demand – the establishment of knowledge - based economy will not be possible without the support of higher education system improvement and science development. It is necessary to work out a long-term strategy for the development of higher education and science with the active participation of all stakeholders which should define the legislative changes on the basis of the country’s social and economic development strategy and at the same time clearly define the appropriate financial resources. Should be defined the scientific priorities and ensured the internalization of doctoral targeting funding. Should be planned the steady increase in funding for higher education and science  in accordance with GDP growth.

Intellectual and scientific – technical potential still existing in our country is a solid foundation not only for the development of service sector in our view as leading field, but for the independence, strength and steady progress of Georgian economy in the nearest future. It is the prerogative of the state as far as the selection of right economy policy and justified priorities for the further development of any country with transition economy including Georgia, only the state is capable if.