Journal number 1 ∘ Ramaz Abesadze ∘

Georgias innovative policy and system

10.36172/EKONOMISTI.2023.XIX.01.RAMAZ.ABESADZE Annotation. The processes of innovative policy and innovative system formation in Georgia are investigated and the main directions of innovative policy of Georgia are defined. Keywords: innovative development, innovative policy, innovative system. Introduction The well-being of the society is inextricably linked to the innovation. It led to unprecedented progress in all spheres of human activity and daily life. It can be said that the process of economic development is the process of implementing innovations in all elements of the economic system. Innovative economy is based on knowledge, flow of innovations, technologies, information, institutions, human capital, production organization, products, etc. constant perfection, intellectual work of scientists and innovators. After the collapse of the Soviet Union, there was an economic decline in Georgia, which caused the degradation of the existing innovation system (reductio

Journal number 1 ∘ Vakhtang Burduli ∘

Global economic dangers and their impact on national economic security

10.36172/EKONOMISTI.2023.XIX.01.VAKHTANG.BURDULI Expended Summary The purpose of this work was to identify economic dangers that arise during the development of the last stage of globalization (hyperglobalization) and necessitate the transition to a new stage of globalization, as well as to determine, to the extent possible, the impact of these dangers on the country's national economic security. Before moving on to solving this problem, the work first studied the general structural problems of the processes of development of globalizations of recent periods in order to identify and systematize the structures of world and state influence and business coordination on the processes of development of globalizations. Therefore, in the first subsection of the first chapter of the work, structural elements (attributes, categories, tools, mechanisms, etc.) that ensure the course and development of globalizations are identified (and some of them were introduced by me), systematized an

Journal number 1 ∘ Shota Veshapidze ∘ Ramaz Putkaradze ∘

International economic relations of Georgia at the modern stage of globalization

10.36172/EKONOMISTI.2023.XIX.01.SHOTA.VESHAPIDZE.RAMAZ.PUTKARADZE Expanded Summary In the presented article, the field of interest of scientific research is the identification and determination of the results and perspectives of Georgia's participation in international economic relations. The interest in the research topic is due to the fact that the level of economic development of Georgia is significantly dependent on the quality of relations with the rest of the world and international economic unions. International economic relations are an important factor of the country's sustainable development, which contributes to the acceleration of scientific and technological progress, the rational use of natural resources, the globalization of the world economy, the sharing of international production experience, the accelerated development of international trade in goods and services, the free movement of capital and people. The purpose of the research is an in-depth examination of the

Journal number 1 ∘ Paata Koguashvili ∘ Davit Manukelashvili ∘

Inclusive entrepreneurial development reform main directions in Georgia

10.36172/EKONOMISTI.2023.XIX.01.PAATA.KOGUASHVILI.DAVIT.MANUKELASHVILI Expanded Summary it is necessary to carry out a fundamentally different state policy, which will be focused on protecting the interests of the majority of the population of the regions, i.e. small and low-income farms, recognizing their priority role in the development of the country and creating such models of development that will open up all opportunities for the free development. None of the Georgian authorities, could solve this problem, directly connected with the solution of the exacerbated social problems, which largely became the reason for the low efficiency of their economic policy and, in general, the failure. In the current conditions, without support, the existence of small farms in rural areas is possible only at a low technological level, which cannot ensure their development in any way. With state support and regulation, those functions are performed that are not provided by se

Journal number 1 ∘ Malkhaz Chikobava ∘

About The Monetary Policy Of The National Bank Of Georgia

10.36172/EKONOMISTI.2023.XIX.01.MALKHAZ.CHIKOBAVA Annotation. The article analyzes the inflation targeting policy of the National Bank of Georgia, its impact on prices, the exchange rate of the national currency, and financial stabilization. It has been shown that based on inflation targeting policies, it is difficult to convince monetary authorities that they can deal with inflation and exchange rate fluctuations by manipulating interest rates. The document also mentions that raising interest rates to reduce inflation and strengthen the national currency is a template recommendation of the International Monetary Fund, which is based on mathematical models of market equilibrium, does not correspond to economic reality and is absolutely counterproductive for import-dependent countries. The paper emphasizes that the main directions of the current monetary and credit and currency policy do not take into account either protecting or ensuring the stability of the national currency. Unfor

Journal number 1 ∘ Givi Bedianashvili ∘ Giorgi Kokhreidze ∘

Public debt and economic growth in small countries under contemporary challenges

10.36172/EKONOMISTI.2023.XIX.01.GIVI.BEDIANASHVILI.GIORGI.KOKHREIDZE Expanded Summary In the conditions of modern dynamic global processes, revealing the peculiarities of small countries and their reflection in the context of promoting the country's socio-economic development and ensuring macroeconomic stability is of particular importance. Small countries are distinguished by the presence of relatively different mechanisms of the functioning and development of the corresponding socio-economic systems, which naturally requires the consideration of the mentioned fact when considering individual economic problems. The role of the socio-economic systems of small countries is increasing in the light of new challenges and today's confrontational globalization, when the issue of the country's sustainability, the topic of economic security and the need to effectively implement various anti-crisis economic mechanisms gain importance. The analysis of gross domestic product in t

Journal number 1 ∘ Sulkhan Tabaghua ∘

Fiscal Rules Nexus Covid19 shock in case of Georgia (Macro Approach)

Abstract Empirical experience, deficits, and debt amounts in many countries show that governments spend more than they can afford. To reduce this risk and ensure long-term macroeconomic stability, most countries have periodically established legal restrictions on fiscal parameters, known as "fiscal rules". Macroeconomic approach of fiscal rules assessment relatively new subject of scientific research. Furthermore, rules-based macroeconomic policies are trending, and research around these issues has become more common in recent times. Covid19 shock led to a reduction in economic growth, a deterioration in a number of macroeconomic parameters (notably, deviation from debt and budget deficit rules), and fluctuations in fiscal rules. The pandemic (Covid19) has been a massive test of the fiscal rules. Flexibility, Activation of escape clauses in response to pandemic (covid19) challenges defended as a main macroeconomic channel for successful anti-crisis economic policy development and

Journal number 1 ∘ Tengiz Verulava ∘

School of Medicine and Healthcare Management, Caucasus University Challenges of Introducing Critical Incident Reporting System in Georgia

10.36172/EKONOMISTI.2023.XIX.01.TENGIZ.VERULAVA Expanded Summary Critical Incident Reporting System (CIRS) have become most common patient safety tools in healthcare. The purpose of this study was to present the development of CIRS in Georgia. A quantitative approach using a cross sectional survey was adopted. The most common critical incidents were due to lack of personal attention and related to individual errors. The most of the critical incidents arise from non-adherence to guidelines and standards. CIRS can be seen as an effective clinical risk management tool that can be used to identify potential sources of critical incidents and help ensure patient safety at a healthcare organization. Key words: Medical errorsQuality assuranceHealth careRisk managementPatient safety Patient safety is a specific indicator of the quality of medical care (Hajimohammadi, et al., 2018; Verulava, 2018). Safety is about protecting the patient from the risk of complications, injury, and

Journal number 1 ∘ Giorgi Miqeladze ∘

Possibilities of econometric and statistical modeling of incomes and expenditures of Georgian households by small areas: Methodological analysis of selective and non-selective survey and identification of similar variables

Expanded Summary Small area estimations (SAE) have been developed since 1970 and are considered to be the basis of FAY and Herriot. Statistical surveys of households are usually representative at a high level of aggregation. Through the mentioned method, small and large statistical datasets are used to obtain statistically significant estimates in small areas. Small area estimation models (SAE) are usually divided into two groups: 1) territorial unit models and 2) unit level models. These models mainly differ in the availability of statistical data. The aim of the research is to obtain statistically significant estimates of household incomes and expenditures on the example of Georgia by the small territorial areas (municipalities/disrtict of Tbilisi) using the empirical models. The empirical realization of models should be based on similar variables. Based on detailed analysis of methodology, fieldwork instruments and metadata, similar variables should be identified from the selectiv

Journal number 1 ∘ Murman Tsetskhladze ∘ Salome Sulaberidze ∘

"Tea" production and its role in the development of agrotourism (on the example of Guria region)

Expanded Summary Agrotourism is a direction where the products of the tourism industry and agriculture are jointly presented. In the paper, the modern trends of the development of tea-making in Georgia and the world are studied, and the perspectives of its development in the Guria region are outlined. In Guria, tea production has a two-century history. The first tea bush was planted in 1809 in the garden of Mamia the fifth Gurieli (chief of Guria 1809-1826). The tea grown in the garden had no industrial purpose. After the death of Mamiya Gurriel, he garden was destroyed. In 1864 M. Eristavi was the first in Georgia to process tea products in a primitive manner. In the second half of the 19th century, the cultivation of tea bushes went beyond Guria and practically spread to all regions of Western Georgia. In the 1980s, Georgia ranked fifth in tea production, after India, China, Japan and Sri Lanka. (Tea...). In the 90s of the last century, the collapse of the Soviet

Journal number 1 ∘ Ketevan omanadze ∘

Theoretical-methodological foundations of social-economic security and anti-crisis management of the healthcare system

Expanded Summary Anti-crisis management, as an organization's management system, has a complex systemic nature. It aims to prevent or eliminate undesirable events for business by using the full potential of modern management, which means that a special program for the organization must be developed, which will have a strategic character and allow us to overcome temporary difficulties, maintain and increase our market positions under any conditions. The concept of anti-crisis management is one of the controversial ones in scientific literature, there are different points of view about its definition and content. Etymologically, "anti-crisis" means the opposite side of the crisis, which is directed against the crisis (from the Greek anti - "opposite", crisis - "border between two states, turning point"; "decision"). For crisis management, we can choose goals, the combination of which ultimately represents anti-crisis management: • Anticipation of a crisis and adequate preparatio

Journal number 1 ∘ Ketevan Gudushauri ∘

Financial control of the banking sector

Expanded summary At the end of the 20th century, important processes developed in the world, which led to break down of the command-administrative system and the beginning of the process of transition to a market economy in the former communist countries. During the 70-year history, the politics of Georgia less relied on economic factors. Accordingly, Georgia faced to the end of the 20th century, without the mechanisms of economic policy formation. For a sovereign state, the credit system is very important. The involvement of Georgia in the world system, the efficient functioning of enterprises and in general, the development of the state are directly related to the banking system. In order to, implement necessary measures to overcome the economic crisis in Georgia, the banking system has an important role, because the country's economic development and macroeconomic stability are closely related to a reliable, solid and liquidity banking system. The importance of the banking sect

Journal number 1 ∘ Tsotne Gogishvili ∘

The Nature, Formation, and End of 2007-2008 Global Financial Crisis

Expanded Summary Financial crises are very familiar phenomena. However, 2007-2008 financial crisis unexpectedly hit US and Global financial market. The formation of the crisis did not start in 2007 but it was years in the making. The Depository Institutions Deregulation and Monetary Control Act of 1980 relaxed the rules under which national banks could merge. Moreover, the Gramm–Leach–Bliley Act (GLBA), also known as the Financial Services Modernization Act of 1999 allowed commercial banks, investment banks, securities firms, and insurance companies to consolidate. So concentration in the financial sector increased and the “too big to fail” mentality encouraged banks to engage in more risk taking activities. Thus, the Garn-St Germain Act allowed lenders to offer 2/28 adjustable-rate mortgages at low rates to attract subprime borrowers, but in the end when mortgage rates increased they could not afford the payments. Increased subprime mortgage lending since 2000

Journal number 1 ∘ Mariam Bitsadze ∘

Development level and challenges of the fabrication laboratory in Georgia

Expanded Summary The first part of the work - "Development level and challenges of the fabrication laboratory in Georgia" shows how important is fabrication laboratory for a development oriented country. The laboratory is one of the main participant of the national innovation system, which is perceived as an important tool for the creation of innovations. Special attention is paid to those fab labs, which are hosted by universities. The laboratory stimulates technological and innovative ideas, creates an environment for transforming ideas into a prototype. In the process of idea development, fab lab provides: sharing of knowledge and technical skills, developing of human capital, creating of digital designs. It is a space where stakeholders learn how to create prototypes by using a modern technologies and test them on a small scale without making large investments. For the existence of the fab lab, it is important to fulfill four conditions: technology and equipment; digital s

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 1 ∘ Ramaz Abesadze ∘ Georgias innovative policy and system 10.36172/EKONOMISTI.2023.XIX.01.RAMAZ.ABESADZE Annotation. The processes of innovative policy and innovative system formation in Georgia are investigated and the main directions of innovative policy of Georgia are defined. Keywords: innovative development, innovative policy, innovative system. Introduction The well-being of the society is inextricably linked to the innovation. It led to unprecedented progress in all spheres of human activity and daily life. It can be said that the process of economic development is the process of implementing innovations in all elements of the economic system. Innovative economy is based on knowledge, flow of innovations, technologies, information, institutions, human capital, production organization, products, etc. constant perfection, intellectual work of scientists and innovators. After the collapse of the Soviet Union, there was an economic decline in Georgia, which caused the degradation of the existing innovation system (reductio Journal number 1 ∘ Vakhtang Burduli ∘ Global economic dangers and their impact on national economic security 10.36172/EKONOMISTI.2023.XIX.01.VAKHTANG.BURDULI Expended Summary The purpose of this work was to identify economic dangers that arise during the development of the last stage of globalization (hyperglobalization) and necessitate the transition to a new stage of globalization, as well as to determine, to the extent possible, the impact of these dangers on the country's national economic security. Before moving on to solving this problem, the work first studied the general structural problems of the processes of development of globalizations of recent periods in order to identify and systematize the structures of world and state influence and business coordination on the processes of development of globalizations. Therefore, in the first subsection of the first chapter of the work, structural elements (attributes, categories, tools, mechanisms, etc.) that ensure the course and development of globalizations are identified (and some of them were introduced by me), systematized an Journal number 1 ∘ Shota Veshapidze ∘ Ramaz Putkaradze ∘ International economic relations of Georgia at the modern stage of globalization 10.36172/EKONOMISTI.2023.XIX.01.SHOTA.VESHAPIDZE.RAMAZ.PUTKARADZE Expanded Summary In the presented article, the field of interest of scientific research is the identification and determination of the results and perspectives of Georgia's participation in international economic relations. The interest in the research topic is due to the fact that the level of economic development of Georgia is significantly dependent on the quality of relations with the rest of the world and international economic unions. International economic relations are an important factor of the country's sustainable development, which contributes to the acceleration of scientific and technological progress, the rational use of natural resources, the globalization of the world economy, the sharing of international production experience, the accelerated development of international trade in goods and services, the free movement of capital and people. The purpose of the research is an in-depth examination of the Journal number 1 ∘ Paata Koguashvili ∘ Davit Manukelashvili ∘ Inclusive entrepreneurial development reform main directions in Georgia 10.36172/EKONOMISTI.2023.XIX.01.PAATA.KOGUASHVILI.DAVIT.MANUKELASHVILI Expanded Summary it is necessary to carry out a fundamentally different state policy, which will be focused on protecting the interests of the majority of the population of the regions, i.e. small and low-income farms, recognizing their priority role in the development of the country and creating such models of development that will open up all opportunities for the free development. None of the Georgian authorities, could solve this problem, directly connected with the solution of the exacerbated social problems, which largely became the reason for the low efficiency of their economic policy and, in general, the failure. In the current conditions, without support, the existence of small farms in rural areas is possible only at a low technological level, which cannot ensure their development in any way. With state support and regulation, those functions are performed that are not provided by se Journal number 1 ∘ Malkhaz Chikobava ∘ About The Monetary Policy Of The National Bank Of Georgia 10.36172/EKONOMISTI.2023.XIX.01.MALKHAZ.CHIKOBAVA Annotation. The article analyzes the inflation targeting policy of the National Bank of Georgia, its impact on prices, the exchange rate of the national currency, and financial stabilization. It has been shown that based on inflation targeting policies, it is difficult to convince monetary authorities that they can deal with inflation and exchange rate fluctuations by manipulating interest rates. The document also mentions that raising interest rates to reduce inflation and strengthen the national currency is a template recommendation of the International Monetary Fund, which is based on mathematical models of market equilibrium, does not correspond to economic reality and is absolutely counterproductive for import-dependent countries. The paper emphasizes that the main directions of the current monetary and credit and currency policy do not take into account either protecting or ensuring the stability of the national currency. Unfor Journal number 1 ∘ Givi Bedianashvili ∘ Giorgi Kokhreidze ∘ Public debt and economic growth in small countries under contemporary challenges 10.36172/EKONOMISTI.2023.XIX.01.GIVI.BEDIANASHVILI.GIORGI.KOKHREIDZE Expanded Summary In the conditions of modern dynamic global processes, revealing the peculiarities of small countries and their reflection in the context of promoting the country's socio-economic development and ensuring macroeconomic stability is of particular importance. Small countries are distinguished by the presence of relatively different mechanisms of the functioning and development of the corresponding socio-economic systems, which naturally requires the consideration of the mentioned fact when considering individual economic problems. The role of the socio-economic systems of small countries is increasing in the light of new challenges and today's confrontational globalization, when the issue of the country's sustainability, the topic of economic security and the need to effectively implement various anti-crisis economic mechanisms gain importance. The analysis of gross domestic product in t Journal number 1 ∘ Sulkhan Tabaghua ∘ Fiscal Rules Nexus Covid19 shock in case of Georgia (Macro Approach) Abstract Empirical experience, deficits, and debt amounts in many countries show that governments spend more than they can afford. To reduce this risk and ensure long-term macroeconomic stability, most countries have periodically established legal restrictions on fiscal parameters, known as "fiscal rules". Macroeconomic approach of fiscal rules assessment relatively new subject of scientific research. Furthermore, rules-based macroeconomic policies are trending, and research around these issues has become more common in recent times. Covid19 shock led to a reduction in economic growth, a deterioration in a number of macroeconomic parameters (notably, deviation from debt and budget deficit rules), and fluctuations in fiscal rules. The pandemic (Covid19) has been a massive test of the fiscal rules. Flexibility, Activation of escape clauses in response to pandemic (covid19) challenges defended as a main macroeconomic channel for successful anti-crisis economic policy development and Journal number 1 ∘ Tengiz Verulava ∘ School of Medicine and Healthcare Management, Caucasus University Challenges of Introducing Critical Incident Reporting System in Georgia 10.36172/EKONOMISTI.2023.XIX.01.TENGIZ.VERULAVA Expanded Summary Critical Incident Reporting System (CIRS) have become most common patient safety tools in healthcare. The purpose of this study was to present the development of CIRS in Georgia. A quantitative approach using a cross sectional survey was adopted. The most common critical incidents were due to lack of personal attention and related to individual errors. The most of the critical incidents arise from non-adherence to guidelines and standards. CIRS can be seen as an effective clinical risk management tool that can be used to identify potential sources of critical incidents and help ensure patient safety at a healthcare organization. Key words: Medical errorsQuality assuranceHealth careRisk managementPatient safety Patient safety is a specific indicator of the quality of medical care (Hajimohammadi, et al., 2018; Verulava, 2018). Safety is about protecting the patient from the risk of complications, injury, and Journal number 1 ∘ Giorgi Miqeladze ∘ Possibilities of econometric and statistical modeling of incomes and expenditures of Georgian households by small areas: Methodological analysis of selective and non-selective survey and identification of similar variables Expanded Summary Small area estimations (SAE) have been developed since 1970 and are considered to be the basis of FAY and Herriot. Statistical surveys of households are usually representative at a high level of aggregation. Through the mentioned method, small and large statistical datasets are used to obtain statistically significant estimates in small areas. Small area estimation models (SAE) are usually divided into two groups: 1) territorial unit models and 2) unit level models. These models mainly differ in the availability of statistical data. The aim of the research is to obtain statistically significant estimates of household incomes and expenditures on the example of Georgia by the small territorial areas (municipalities/disrtict of Tbilisi) using the empirical models. The empirical realization of models should be based on similar variables. Based on detailed analysis of methodology, fieldwork instruments and metadata, similar variables should be identified from the selectiv Journal number 1 ∘ Murman Tsetskhladze ∘ Salome Sulaberidze ∘ "Tea" production and its role in the development of agrotourism (on the example of Guria region) Expanded Summary Agrotourism is a direction where the products of the tourism industry and agriculture are jointly presented. In the paper, the modern trends of the development of tea-making in Georgia and the world are studied, and the perspectives of its development in the Guria region are outlined. In Guria, tea production has a two-century history. The first tea bush was planted in 1809 in the garden of Mamia the fifth Gurieli (chief of Guria 1809-1826). The tea grown in the garden had no industrial purpose. After the death of Mamiya Gurriel, he garden was destroyed. In 1864 M. Eristavi was the first in Georgia to process tea products in a primitive manner. In the second half of the 19th century, the cultivation of tea bushes went beyond Guria and practically spread to all regions of Western Georgia. In the 1980s, Georgia ranked fifth in tea production, after India, China, Japan and Sri Lanka. (Tea...). In the 90s of the last century, the collapse of the Soviet Journal number 1 ∘ Ketevan omanadze ∘ Theoretical-methodological foundations of social-economic security and anti-crisis management of the healthcare system Expanded Summary Anti-crisis management, as an organization's management system, has a complex systemic nature. It aims to prevent or eliminate undesirable events for business by using the full potential of modern management, which means that a special program for the organization must be developed, which will have a strategic character and allow us to overcome temporary difficulties, maintain and increase our market positions under any conditions. The concept of anti-crisis management is one of the controversial ones in scientific literature, there are different points of view about its definition and content. Etymologically, "anti-crisis" means the opposite side of the crisis, which is directed against the crisis (from the Greek anti - "opposite", crisis - "border between two states, turning point"; "decision"). For crisis management, we can choose goals, the combination of which ultimately represents anti-crisis management: • Anticipation of a crisis and adequate preparatio Journal number 1 ∘ Ketevan Gudushauri ∘ Financial control of the banking sector Expanded summary At the end of the 20th century, important processes developed in the world, which led to break down of the command-administrative system and the beginning of the process of transition to a market economy in the former communist countries. During the 70-year history, the politics of Georgia less relied on economic factors. Accordingly, Georgia faced to the end of the 20th century, without the mechanisms of economic policy formation. For a sovereign state, the credit system is very important. The involvement of Georgia in the world system, the efficient functioning of enterprises and in general, the development of the state are directly related to the banking system. In order to, implement necessary measures to overcome the economic crisis in Georgia, the banking system has an important role, because the country's economic development and macroeconomic stability are closely related to a reliable, solid and liquidity banking system. The importance of the banking sect Journal number 1 ∘ Tsotne Gogishvili ∘ The Nature, Formation, and End of 2007-2008 Global Financial Crisis Expanded Summary Financial crises are very familiar phenomena. However, 2007-2008 financial crisis unexpectedly hit US and Global financial market. The formation of the crisis did not start in 2007 but it was years in the making. The Depository Institutions Deregulation and Monetary Control Act of 1980 relaxed the rules under which national banks could merge. Moreover, the Gramm–Leach–Bliley Act (GLBA), also known as the Financial Services Modernization Act of 1999 allowed commercial banks, investment banks, securities firms, and insurance companies to consolidate. So concentration in the financial sector increased and the “too big to fail” mentality encouraged banks to engage in more risk taking activities. Thus, the Garn-St Germain Act allowed lenders to offer 2/28 adjustable-rate mortgages at low rates to attract subprime borrowers, but in the end when mortgage rates increased they could not afford the payments. Increased subprime mortgage lending since 2000 Journal number 1 ∘ Mariam Bitsadze ∘ Development level and challenges of the fabrication laboratory in Georgia Expanded Summary The first part of the work - "Development level and challenges of the fabrication laboratory in Georgia" shows how important is fabrication laboratory for a development oriented country. The laboratory is one of the main participant of the national innovation system, which is perceived as an important tool for the creation of innovations. Special attention is paid to those fab labs, which are hosted by universities. The laboratory stimulates technological and innovative ideas, creates an environment for transforming ideas into a prototype. In the process of idea development, fab lab provides: sharing of knowledge and technical skills, developing of human capital, creating of digital designs. It is a space where stakeholders learn how to create prototypes by using a modern technologies and test them on a small scale without making large investments. For the existence of the fab lab, it is important to fulfill four conditions: technology and equipment; digital s