FOREIGN DIRECT INVESTMENTS IN THE POST-SOVIET PERIOD: THE CASE OF GEORGIA

In the former Soviet System, economy was financed by state. In the new independent states formed after the collapse of the USSR at the beginnings of the 1990s, traditional financing system was impossible to keep, because post-Soviet countries began to build a market economy, though their methods were different. Large volume of foreign investments were attracted to those post-Soviet countries which were richer in energy resources. In this view, Georgia faced problems. After restoration of independence Georgia was in dire need of foreign investments which could be attracted only in case of successful implementation of reforms. And it happened only after the country addopted new currency, implemented nation-wide privatization, price liberalization, reorganization of enterprises and institutional reforms, in general. In the last years of the development, foreign direct investment inflows increased significantly which was a result of tax system liberalization, removal of pressure on business from the state's side and relatively stable situation in the country. (Atanelishvili, 2011, 2013, 2016; Atanelishvili, Silagadze, N., 2016; Basilia, Silagadze, Chikvaidze, 2001; Zubiashvili and Silagadze, L., 2016; Silagadze, A., 2010-2014).

SOME ASPECTS OF THE GEORGIAN ECONOMY AT THE CONTEMPORARY STAGE

In the former Soviet Union the economy of the Georgian Republic occupied advanced positions. At the very first stage of the restoration of independence the post-Soviet Georgia’s economy declined 3-times; in the following years, the situation improved, but it reached the 1990 level only after 15 years. In spite of difficult problems of development it should be singled out the middle period progress of the 90-ies when the country introduced a new currency - Lari, created conditions for attracting foreign investments, economic growth was expressed in double-digit figures; it created an independent banking system, rapidly implemented the program of privatization, strengthened the links with international financial organizations and others. By this time, the private sector’s share in the state budget revenues was already 80%. After the end of the 90-ies, in a few years, economic reforms stalled. After the “Rose Revolution” - until 2012, the development of economy was greatly influenced by tightened administrative methods, foreign loans, foreign investment, and so forth. Unfortunately, at this stage of development, a property encroachment for the government became common practice in such a way as pressure on business. In recent four years, more attention was paid to the actual development, deepening of integration with European Union, the governmental pressure on business was removed. However, because of the lack of jobs, labour force continues to flow abroad