GEORGIAN EXPERIENCE IN FUNCTIONING OF STATE STATISTICS BODY

After the collapse of the former Soviet Union and restoration of independence of Georgia, the economy faced numerous problems and without settling those problems it was impossible to build a market economy in the country. Before, we could hardly imagine that we would be challenged to create an independent state statistics body in terms of building the market economy. In this light, post-Soviet Georgia partially used experience gained in the independent Democratic Republic of Georgia (1981-1921). The statistics body of that time could not manage to provide the country with social-economic information fully due to short period of functioning but taking into account the necessity of its existence, withdrawal from departmental subordination, necessity of participation of scientists in the statistics board, etc. proved to be useful for the independent post-Soviet Georgia. Although, imperfect attitude towards the statistics body in the post-Soviet period was evident from permanent changes of its status and its subordination to one of the Ministries. Parallel studies show that other negative experiences of the 1920s as well as modern international experiences were underestimated, which linked numerous difficulties revealed during the development of post-Soviet Georgia to disorganization of the statistical system

EVOLUTIONARY ASPECTS OF THE GEORGIAN BANKING SYSTEM

Georgian monetary relations have a centuries-old history. Credit associations were first founded in 11-13th centuries. Network of credit institutions became larger in the 19th century – independent commercial banks were established in the second half of the 19th century. Central State Bank of Georgia was established in the Democratic Republic of Georgia in the beginning of the 20th century. At the same time, there were efforts to create independent two-level banking system, although those efforts failed due to forceful sovietization of Georgia. But still, independent banking system was founded in Georgia after the collapse of the former Soviet Union. This work examines afore-mentioned evolutionary processes and some of peculiarities of modern banking system. The research shows that modern Georgian banking system is growing fast but it contains signs of oligopoly which contradicts the interests of vast masses of population and entrepreneurial development, while stimulating retaining of high interest rates and devaluation of national currency

SOME ASPECTS OF THE GEORGIA-CIS TRADE RELATIONS

The paper emphasizes that the Commonwealth of Independent States (CIS) was created after the collapse of the former Soviet Union. In addition to the Baltic States (Estonia, Latvia, Lithuania), all the former Soviet republics united in this Commonwealth in 1991: Azerbaijan, Belarus, Moldova, Armenia, Russia, Tajikistan, Uzbekistan, Kazakhstan, Kyrgyzstan, Turkmenistan (an associate member since 2005), Ukraine (withdrew from the organization in 2018) and Georgia (withdrew in 2009, 1993). On August 26, 2005 Turkmenistan refused to be a full member and now it is an associate member. Initially, the maintenance of traditional economic ties was very important for the post-Soviet countries included in the CIS. Soon it became clear that Russia used the CIS to strengthen its influence on its member states. Because of this, some countries, including Georgia, left the "Commonwealth" and expressly chose the European course. Nevertheless, up to date foreign trade, on the free basis, plays an important role in Georgia's economic development. According to the conclusion made in the paper: Georgia's export to the CIS countries is much higher than to the EU countries - despite the increase of the share of the EU countries in recent years. According to the data of 11 months of 2018, the CIS countries - Azerbaijan, Russia and Armenia occupy 1-3 places of the five largest export countries of Georgia. Import of Georgia from the CIS countries in 2003-2017 increased 6.7 times; in Georgia's total import from the CIS countries in 2017 Russia had the highest percentage - 23.3%, Azerbaijan - 16.2% and Ukraine - 13.5%. In spite of difficult political relations, trade between Georgia and Russia did not cease: increased both exports and imports indicators. In addition, the difference between them is 2 times more for Russia; the CIS countries are important partner countries for foreign trade, including a large partner-the Russian Federation, but its market is often unstable due to political pressure (it does not fulfill its commitment to WTO membership), which further accelerates Georgia's foreign markets diversification

SOME ASPECTS OF NATIONAL ECONOMIC DOCTRINE

Doctrines which substantiated introduction of market economy elements and priority of development of real sector , e.g. industry, at certain stage of the development of national economy have held an important place in the history of economic thought. Classes were the very first to develop such doctrines. (Silagadze, A., 1996, 2000, 2001, 2006-2016; Kharitonashvili, 2008; Silagadze, A. and Atanelishvili, T., 2006-2007, 2010-2011, 2013-2014).The issue was quite challenging at the first stage of building capitalism in Georgia (19th century). Niko Nikoladze, a Georgian public figure (1843-1928), emphasized the high priority of the issue in those times. (Nikoladze, N., 1960-2003; 2006; Gamezardashvili, D., 1983; Janelidze, O., 1988; Silagadze, A., (Editor), Atanelishvili, T., Goshadze, G., (Edit.), Demetrashvli, T., Zurabishvili, V. (Edit.) - 2005; Silagadze, A. and Atanelishvili, 2004). His attitudes are still important in post-Soviet Georgia which heavily depends on import. The fact is that instead of using rich local resources, Georgia tends to import goods which the country has a real ability to produce itself. Poor development of real sector of economy has remained an Achilles' heel for years. Tourism is a priority for the country, but during economic crises tourist flows stop and if there is no alternative, the country will face a deep crisis. (valchrelidze, A., Silagadze, A., Keshelashvili, G., Gegia, D., 2011)According to the conclusion made in this article, Nino Nikoladze's doctrine which complies with "classic" attitudes, complies with both "classic" and national economic doctrines of Germany. It also complies with Ilia Chavchavadze's economic doctrine with the difference that Ilia believed that agriculture was of highest priority while Niko Nikoladze believed industry to be the most important. In general, his economic doctrines implies priority development of national industry, deepening of west-east sea and railway ties, construction of ports, supporting of export, careful demilitarization, and improvement of market mechanisms of price formation, etc.

ABOUT STATE FINANCIAL CONTROL

State financial body control of Georgia has a distinctive centuryies-long history. State financial control institute was established in the Democratic Republic of Georgia (1918-21) as early as in 1918 and it existed until Soviet occupation of Georgia in 1921. For 70 years the state financial control body was the part of the Soviet structure and it was not until the collapse of the Soviet Union that it started to function again in post-Soviet Georgia. This article covers some of the issues concerning the experience of establishment and operation of the state financial control body in the Democratic Republic of Georgia (1918-21) and in post-Soviet Georgia from the 1990s to date. According to the conclusions made, legal base of the financial control institutes succedeed and still succeeds to meet international challenges, and, in general, their institutional functioning is an efficient factor which significantly encourages economic progress of the country

THE USE OF DRINKING WATER IN THE CONDITIONS OF MAINTAINING ECOLOGICAL BALANCE

Central Caucasus is an important transit place for the "Great Silk Road"; an important role in it is assigned to the Baku-Tbilisi-Supsa and Baku-Tbilisi-Ceyhan oil pipeline, Baku-Tbilisi-Erzurum gas pipeline and the Baku-Tbilisi-Kars railway line which is at finishing stage of its construction, and others. The countries of Central Caucasus can make a meaningful contribution to the construction of the "New Silk Road" with other untapped rich natural resources. Especially attractive for investors can be the Georgian underground artesian renewable, biologically clean drinking water reserves of international importance; an effective utilization of their small part can make a significant contribution to the resolving of high quality drinking water supply problem for millions of people in Europe and Asia. After the collapse of the Soviet Union, independent post-Soviet Georgia has passed through the toughest period of reforms, conflicts and development. A significant part of its territory is still occupied, the economy is weak; the country is oriented to the European Union. In this light the country should use foreign experience and capabilities in the real sector (agriculture, mining industry ...). In post-Soviet Georgia according to the current legislation, foreign investors enjoy the same rights as domestic ones. A large part of the world's population suffers from water shortages. In Georgia this resource is virtually untapped (only 0.01 is used). This resource will further rise in price on the world market of raw materials. Through the participation of foreign investors Georgia can make its contribution to the solving of the above-noted global problem in different directions: By the exploitation of freshwater resources Georgia should become a larger producer and exporter of drinking water until the problems of products transportation arise; the second part of underground water reserves should be provided to Europe and other countries through pipelines. Thus, there is proposed a model of bacteriological pure underground artesian water supply from Georgia to Europe in the conditions of maintaining ecological balance. This model takes into account the analysis of water pipeline alternatives, “Georgia-Europe” pipeline construction, as Europe's population is in need of high-quality drinking water, and Georgia is interested in its export

ASPECTS OF CHINA’S ECONOMIC DEVELOPMENT

The 25 year period of transition in newly independent post-USSR states did not bring either of them to a desired target – mid-European level of economy. Against this sad background China represents a unique example of successful economic reforms, which lead to rapid economic development and accelerated increase of leaving standards. In spite of structural and legislative changes, the success of China’s economic reforms was determined by extensive industrialization based on downstream processing of national and imported primary commodities. Privatization in this sector and support of private businesses was expressed by creation of corresponding financial instruments and, first of all, by foundation of commodity exchanges of the global importance. The phase of extensive economic development has not been finished in China yet, however, such extensive development cannot be sustainable for more than 8-10 years, and the greatest challenge for China will be a step-by-step construction of a post-industrial economy and society in coming years. Example of China may show a guideline for the newly independent states: only synergetic amalgamation of, on one hand, a civil society and, on the other hand, sustainable exploitation of national natural resources and downstream processing of national primary commodities may ensure irreversible merging of newly independent states into the civilized world.

GLOBALIZATION: EMIGRATION AND TRANSACTIONS

The globalization severely affected post-Soviet countries which were in the process of introduction of new reforms. Independent states emerged after the collapse of the Soviet Union had to make a choice while building market economy. One group of countries (the Baltic States) chose European orientation from the very beginning, whereas another group chose to remain in the Commonwealth of Independent States (CIS). The latter failed to retain its integrity and some of its member states (Georgia, Moldova and Ukraine) have recently emphasized their EU integration policy. The territorial integrity of these countries has been violated. The pressure on these countries has been persistent in the entire post-Soviet era, which has hindered their economic development and resulted in large-scale outflow of labour force abroad. This is a broad-ranging problem. We have investigated only one aspect of the problem, which has not been analuzed profoundly: interrelation between emigration and remittances in post-Soviet Georgia. According to the conclusion made, the population of Georgia sharply decreased due to forceful emigration, although, number of monetary transactions increased, which play an important role in the economic development of Georgia and satisfaction of needs of subsistance of families and relatives of emigrants