HISTORICAL PARALLELS OF THE NATIONAL ECONOMIC DOCTRINES

Historical experience shows that problems of economic development in certain countries are linked to the rational use of economic resources. It is not accidental that this issue was of high importance as early as in the 19th century in Georgia. An outstanding Georgian writer Ilia Tchavtchavadze (1951-1961) and other researchers (see References) dedicated interesting works to studying this problem. Like German national economic doctrines, Ilia Tchavtchavadze was much concerned with the priorities of national economy. Based on the research results, the present work provides conclusions that Ilia Tchavtchavadze’s economic doctrine complies with German as well as classic economic doctrines with the only difference that development of Georgian economy should start with the development of agriculture; complies with free trade policy; gives great importance to building railway network and Batumi-Baku pipeline, development of oil industry, co-existence of private and community ownership and inadmissibility of forceful infringement of such ownership; lays foundation to building of an independent banking system in Georgia

ABOUT REGIONAL ECONOMIC THOUGHT

Georgia is a small country but it is one of the ancient states in the world that has its unique alphabeth. Unfortunately, a considerable part of its territory has been occupied. The country lacks the experience in building the market economy. Interesting economic thoughts originated in Georgia in various historical epochs, which still deserve close attention. In particular, the feudal age in Georgia gave way to multiple economic thoughts that are still significant these days. One of them is a Code of Laws of Beka and Agbug (XIII-XIV cc.) published in Georgian, which, first of all, covers the issues of regional governance. Some mercantilist ideas expressed in the Code precede the creation of the School of Mercantilism. The Code is an important historical source for market economy researchers, because it determined several essential issues of the economy in general, and agriculture, industry and financial-credit relations, in particular. The Code includes several noteworthy opinions concerning the possibility to hire a labour force and labour remuneration, which to some extent was an innovation for the thinking of that age. Economic ideas expressed in one of the important written sources of Georgian (and not only Georgian) economic thinking correspond not only to regional interests, but to the national and, in some instances, broaderscale interests. The Code was created for one of the oldest regions of Georgia which was of particular strategic, spiritual and economic significance for the country. In spite of certain independence, the region always acted in favour of national interests of the country. In this light, the Code of Laws analyzed in this article is one of the valuable written sources about mercantilism (even long before its foundation), the first doctrine of economic development of society, and certain elements of market economy doctrines

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.

Die Entwicklung der Finanzpolitik in Georgien

This paper gives an outline of the evolution of fiscal policy in Georgia. Starting in the mid-1990s, the authors break the recent Georgian history into two main periods, separated by the Rose Revolution of 2003. The first period was marked by some first efforts to generate and stabilize tax revenues, which were largely offset by the financial crisis of 1998. The Georgian budget at that time was largely financed by foreign sources. Following the Rose Revolution the country’s financial situation has improved, hyperinflation was overcome and public revenues have steadily increased due to administrative changes and tax law reforms.tax reform , fiscal policy , state budget , revenues and expenditures