Abstract: This article presents SWOT analysis for Georgian - South Ossetian conflict. The research analyzes socio-economic aspects and considers future prospects for all sides including neighbor countries and regions. Also it includes the possibilities of positive intervention of neighbor countries to solve the conflict or to mitigate its negative results. The main question of the article is: What will it take to award Georgians and South Ossetians with a peace dividend?
Abstract: Fresh water deficit is one of the most important global problems today. In the countries with scarce water resources, they often become a reason of armed conflicts. The peaceful settlement of relations connected with management and water consumption issues within and beyond the frontiers of the country is an important guarantee of the region stability. The said problem is urgent in Georgia as well because of its water objects are located at the borders and the transit run-off that is 12% of the total one. Fresh water resources are the major natural resources of Georgia. Despite of this, water supply of population at its Eastern part is an acute issue. Southeastern part of the country has been selected to carry out the research. This region is notable for deficiency of water resources in the country. The region tends to desertification which aggravates fresh water problem even more and presumably may lead to migration of local population from the area. The purpose of study was creation geographical information system (GIS) of water resources. GIS contains almost all layers of different content (water resources, springs, channels, hydrological stations, population water supply, etc.). The results of work provide an opportunity to identify the resource potential of the mentioned region, control and manage it, carry out monitoring and plan regional economy.
Abstract: Importance of management of legal entities under
private law of which especially corporate management, as well as
looking for ways of its improvement and perfection has become
especially relevant in the twenty-first century, which was greatly
contributed to by the global economic crisis. Some states have adopted
Corporate Governance Codes; the European Union has set to work on
a series of directives the main purpose of which is an improvement of
corporate governance, provision of greater transparency and
implementation of an effective control mechanism. This process is not
yet completed, and various problematic issues associated with
management of legal persons are still being debated among
practitioner experts and scholars. Georgia is not an exception in this
regard. The article discusses the legislative gaps, and in some cases,
discrepancies having arisen in legal relationships under private law and
having caused many practical problems. This especially applies to the
management of capital companies.
Abstract: One of the topical issues for the companies operating in the present-day conditions is making decisions about creation and development of brands. The goal of the research was to study peculiarities of implementation of branding principles using the well-known Georgian mineral water Borjomi as an example, to establish the attitude of consumers to Borjomi at Georgian market, to determine the discovered weaknesses based on the result of the research and to make certain proposals and give recommendations, which would help Georgian companies interested in branding issues to pay proper attention to fundamental principles of branding in their marketing activities. As a result of the marketing research, it was found out that Borjomi adhere to a number of branding principles in its activity, although it has certain shortcomings in that respect. The research method was of exploratory and descriptive nature. In the conclusive part of the work is given sum up research results, draw conclusions and give recommendations. If companies existing in Georgia will take them into consideration, it will help them to better make sense of branding and main aspects of using its principles.
Abstract: The paper presents the analysis of the current situation of agricultural development in Georgia. The investment environment that supports development of the agricultural sector is evaluated and the key priorities are identified. The analysis of the projects already implemented with state and EU support, as well as those that are being currently implemented is presented. The policy and the programs supporting development of agricultural sector are analyzed. Based on an analysis of the evaluations of experts and the primary accounting documents, the outcomes of investment programs, their advantages and disadvantages, are studied. Through identifying investment programs in the agricultural sector of Georgia, corresponding conclusions are made, based on which some recommendations are developed.
Abstract: This paper discusses small entrepreneurship development strategy in Georgia and the tools and regulations that will encourage development of small entrepreneurship. The current situation in the small entrepreneurship sector, as well as factors affecting growth and decline in the sector and the priorities of state support, are studied and analyzed. The objective of this research is to assess the current situation of the sector to highlight opportunities and reveal the gaps. State support of small entrepreneurship should become a key priority in the country’s economic policy, as development of the sector will ensure social, economic and political stability. Based on the research, a small entrepreneurship development strategy is presented; corresponding conclusions are made and recommendations are developed.
Abstract: The paper analyses the role of small farms in socio-economic development of agriculture in Georgia and evaluates modern concepts regarding the development of the farms of this size. The scale of farms in Georgia is studied and the major problems are revealed. Opportunities and directions of diversification are discussed from the point of increasing the share of Georgian grapes and wine both on domestic and international markets. It’s shown that the size of vineyard areas is directly reflected on the grape and wine production potential. Accordingly, vineyard area and grape production dynamics is discussed. Comparative analysis of small farms in Georgia and Italy is made and the major differences are identified. Diversification is evaluated based on cost-benefit analysis on the one hand and on the other hand, from the point of promoting economic activities, protecting nature and rural area development. The paper provides proofs for the outcomes of diversification. The key hindering factors for the development of small farms are identified and corresponding conclusions are made, based on which recommendations for diversification of the farms of this size are developed.
Abstract: The importance of agribusiness development is
proved in accordance with the trends in the agricultural sector of
Georgia. Agribusiness environment and the consequences of the
agricultural reforms are evaluated. The factors hindering the
development of agribusiness are revealed and the ways for
overcoming these problems are suggested. SWOT analysis is done in
order to identify the needs of agribusiness. The needs of agribusiness
development in Georgia are evaluated by priorities: prevention of
diseases and reduction of the harm caused by these diseases,
accessibility of long-term agricultural loans with low interest rates,
improving qualification of farmers, the level of education and usage
of modern technologies, changes in legislation, accessibility to high
quality agricultural machinery, and the development of infrastructure.
Based on the outcomes of the research, agribusiness development
strategies in Georgia are suggested and appropriate priorities of
economic policy are determined. Conclusions are made and based on
these conclusions, some recommendations are suggested.
Abstract: Out-migration is an important issue for Georgia as
well as since independence has loosed due to emigration one fifth of
its population. During Soviet time out-migration from USSR was
almost impossible and one of the most important instruments in
regulating population movement within the Soviet Union was the
system of compulsory residential registrations, so-called “propiska”.
Since independent here was not any regulation for migration from
Georgia. The majorities of Georgian migrants go abroad by tourist
visa and then overstay, becoming the irregular labor migrants. The
official statistics on migration published for this period was based on
the administrative system of population registration, were
insignificant in terms of numbers and did not represent the real scope
of these migration movements. This paper discusses the data quality
and methodology of migration statistics in Georgia and we are going
to answer the questions: what is the real reason of increasing
immigration flows according to the official numbers since 2000s?
Abstract: In the years followed independence, an economic
crisis and some conflicts led to the displacement of many people
inside Georgia. The growing poverty, unemployment, low income
and its unequal distribution limited access to basic social service have
had a clear direct impact on Georgian population dynamics and its
age-sex structure. Factors influencing the changing population age
structure and urbanization include mortality, fertility, migration and
expansion of urban. In this paper presents the main factors of
changing the distribution by urban and rural areas. How different are
the urban and rural age and sex structures? Does Georgia have the
same age-sex structure among their urban and rural populations since
1950s?
Abstract: The paper presents the trends of Georgian hazelnut market development and analyses the competitive advantages which will help Georgia to enter international hazelnut market using modern technologies. The history of hazelnut crop development and hazelnut varieties in Georgia are discussed. For hazelnut supply analysis trends in hazelnut production are considered, trends in export and import development is evaluated, domestic hazelnut market is studied and analysed based on expert interviews and initial accounting materials. In order to achieve and strengthen its position in international market, potential advantages and disadvantages of Georgian hazelnut are revealed, analysis of export and import possibilities of hazelnut is presented. Recommendations are developed based on the conclusions, which are made through identifying the key factors that hinder development of Georgian hazelnut market.
Abstract: The paper shows the necessity of farm diversification
in accordance with the current trends in agricultural sector of
Georgia. The possibilities for the diversification and the
corresponding economic policy are suggested.
The causes that hinder diversification of farms are revealed,
possibilities of diversification are identified and the ability of
increasing employment through diversification is proved. Index of
harvest diversification is calculated based on the areas used for
cereals and legumes, potatoes and vegetables and other food crops.
Crop and livestock production indexes are analyzed; correlation
between crop capacity index and value added per worker and per
hectare is studied.
Based on the research farm diversification strategies and priorities
of corresponding economic policy are presented. Based on the
conclusions relevant recommendations are suggested.
Abstract: The paper discusses mineral water consumer market
and development policy in Georgia, the tools and measures, which
will contribute to production of mineral waters and increase its
export.
The paper studies and analyses current situation in mineral water
production sector as well as the factors affecting increase and
reduction of its export. It’s noted that in order to gain and maintain
competitive advantage, it’s necessary to provide continuous supply of
high quality goods with modern design, open new distribution
channels to enter new markets, carry out broad promotional activities,
organize e-commerce. Economic policy plays an important role in
protecting markets from counterfeit goods. The state also plays an
important role in attracting foreign direct investments. Stable
business environment and export oriented strategy is the basis for the
country’s economic growth.
Based on the research, the paper suggests the strategy for
improving competitiveness of Georgian mineral waters; relevant
conclusions and recommendations are provided.
Abstract: A model was constructed to predict the amount of
solar radiation that will make contact with the surface of the earth in
a given location an hour into the future. This project was supported
by the Southern Company to determine at what specific times during
a given day of the year solar panels could be relied upon to produce
energy in sufficient quantities. Due to their ability as universal
function approximators, an artificial neural network was used to
estimate the nonlinear pattern of solar radiation, which utilized
measurements of weather conditions collected at the Griffin, Georgia
weather station as inputs. A number of network configurations and
training strategies were utilized, though a multilayer perceptron with
a variety of hidden nodes trained with the resilient propagation
algorithm consistently yielded the most accurate predictions. In
addition, a modeled direct normal irradiance field and adjacent
weather station data were used to bolster prediction accuracy. In later
trials, the solar radiation field was preprocessed with a discrete
wavelet transform with the aim of removing noise from the
measurements. The current model provides predictions of solar
radiation with a mean square error of 0.0042, though ongoing efforts
are being made to further improve the model’s accuracy.
Abstract: Within the framework of this research, the regulatory
documents, which are in force in relation to this industry, were
analyzed. The main attention is turned to their modernization and
necessity of their compliance with European standards.
It is a current issue to direct the efforts of state policy on support
of business by implementing infrastructural projects, as well as by
development of human resources, which may be possible by
supporting the relevant higher and vocational studying-educational
programs.
Abstract: This paper is focusing on the attitude of Georgian
consumers toward social media, influence of social media on
consumer buying behavior. The purpose of this paper is to explore
the usage of social media marketing for small business companies of
Georgia. The result of marketing research has revealed that social
webs are mostly used by Georgian consumers, but they have little
impact on the buying decision. The research method was exploratory
and descriptive. Conclusions summarize the research results and
offers insight to provide better understandings of consumers demand
and implementation of marketing strategy through social media in
Georgia.
Abstract: One of the best examples, in evolution of the public
procurement, from post-soviet countries are reforms carried out in
Georgia, which brought them close to international standards of
procurement. In Georgia, public procurement legislation started
functioning short after gaining independence. The reform has passed
several stages and came in the form as it is today. It should also be
noted, that countries with economy in transition, including Georgia,
implemented all the reforms in public procurement based on
recommendations and support of World Bank, the United Nations
and other international organizations.
The aim of first adopted law was regulation of the procurement
process of budget-organizations, transparency and creation of
competitive environment for private companies to access state funds
legally. The priorities were identified quite clearly in the wording of
the law, but operation/function of this law could not be reached on its
level, because of some objective and subjective reasons. The high
level of corruption in all levels of governance can be considered as a
main obstacle reason and of course, it is natural, that it had direct
impact on the procurement process, as well as on transparency and
rational use of state funds. These circumstances were the reasons that
reforms in this sphere continued, to improve procurement process, in
particular, the first wave of reforms began after several years. Public
procurement agency carried out reform with World Bank with main
purpose of smartening the procurement legislation and its
harmonization with international treaties and agreements. Also with
the support of World Bank various activities were carried out to raise
awareness of participants involved in procurement system.
Further major changes in the legislation were filed bit later, which
was also directed towards the improvement and smarten of the
procurement process. The third wave of the reform more or less
guaranteed the transparency of the procurement process, which later
became the basis for the rational spending of state funds. The reform
of the procurement system completely changed the procedures.
Carried out reform in Georgia resulted in introducing new
electronic tendering system, which benefit the transparency of the
process, after this became the basis for the further development of a
competitive environment, which become a prerequisite for the state
rational spending. Increased number of supplier organizations
participating in the procurement process resulted in reduction of the
estimated cost and the actual cost.
Assessment of the reforms in Georgia in the field of public
procurement can be concluded, that proper regulation of the sector
and relevant policy may proceed to rational and transparent spending
of the budget from country’s state institutions. Also, the business
sector has the opportunity to work in competitive market conditions
and to make a preliminary analysis, which is a prerequisite for future
strategy and development.
Abstract: The paper deals with the usage of speech acts and
politeness strategies in an EFL classroom in Georgia (Rep of). It
explores the students’ and the teachers’ practice of the politeness
strategies and the speech acts of apology, thanking, request,
compliment / encouragement, command, agreeing / disagreeing,
addressing and code switching. The research method includes
observation as well as a questionnaire. The target group involves the
students from Georgian public schools and two certified, experienced
local English teachers. The analysis is based on Searle’s Speech Act
Theory and Brown and Levinson’s politeness strategies. The findings
show that the students have certain knowledge regarding politeness
yet they fail to apply them in English communication. In addition,
most of the speech acts from the classroom interaction are used by
the teachers and not the students. Thereby, it is suggested that
teachers should cultivate the students’ communicative competence
and attempt to give them opportunities to practise more English
speech acts than they do today.
Abstract: In Capitalism all economic activity rests upon a set of
core institutional foundations, main from which are privately owned
capital assets and profit. How these core institutional foundations are
working in former soviet countries, in particular in Travel and
Tourism Industry of Georgia?
The role of Travel and Tourism as a key pillar of economic growth
is being increasingly recognized by governments in all regions of the
world. For the last few years Georgia succeeded in the World Bank
and IFC “Doing Business” rankings. Despite of that, during decades
totally different statistical data of the tourism sector were provided by
the different State bodies; economic parameters were published few,
or not published at all.
The frequency and extent of property rights violation in Georgia
has repeatedly been the subject of concern for the last decade. Total
value of abrogated by the former Georgian Government private
property is estimated approximately in US$4-5 billion.
Thus, if economic profitability is unknown and property rights are
not protected – that means that the main institutional foundations of
capitalism in Georgia, are not working properly yet, that cause
management problems at all levels of the national Travel and
Tourism industry of Georgia.
Abstract: The article presents the trends in Georgian wine
market development and evaluates the competitive advantages of
Georgia to enter the wine market based on its customs, traditions and
historical practices combined with modern technologies.
In order to analyze the supply of wine, dynamics of vineyard land
area and grape varieties are discussed, trends in wine production are
presented, trends in export and import are evaluated, local wine
market, its micro and macro environments are studied and analyzed
based on the interviews with experts and analysis of initial recording
materials.
For strengthening its position on the international market, the level
of competitiveness of Georgian wine is defined, which is evaluated
by “ex-ante” and “ex-post” methods, as well as by four basic and two
additional factors of the Porter’s diamond method; potential
advantages and disadvantages of Georgian wine are revealed.
Conclusions are made by identifying the factors that hinder the
development of Georgian wine market. Based on the conclusions,
relevant recommendations are developed.