The Essentials of Georgia's Economic Transformation

Author:

Iashvili Tsotne1

Affiliation:

1. PhD candidate in economics at Ivane Javakhishvili Tbilisi State University ( Department of Macroeconomics ). Researcher at University of Wrocław

Abstract

Abstract The aim of this article is to examine Georgia's economic transformation and try to answer the question: Why Georgia is not able to have a stable and high economic growth? In this article, it will be an attempt to answer this question by taking into account the weak private sector in Georgia, as one of the main burdens of economic growth. The article attempts to analyse the economic transformation in Georgia. The reasons for its failure and consequences, also to estimate its possible impact on the nowadays economic situation in Georgia. The latter will be examined from the perspective of Institutional Theory. The article will try to answer the above-mentioned question and problems, taking into account the institutional changes in Georgia. The article explains the unsuccessful path of transformation and tries to connect its results to the current economic situation in Georgia.

Publisher

Walter de Gruyter GmbH

Reference14 articles.

1. Gomulka S,- “Poland's economic and social transformation 1989–2014 and contemporary challenges” [2016] Vol (16), Central Bank Review CBR, 19;

2. Kolodziejczyk K,- POLAND IN THE EUROPEAN UNION. TEN YEARS OF MEMBERSHIP [2016] Vol (40), Revista UNISCI / UNISCI Journal, RU 1 International Monetary Fund, “Republic of Georgia Recent Economic Development” [1995] Vol (95/112) IMF country report IMF CR 1;

3. Lichtenstein Peter M, “A New-Institutionalist Story about the Transformation of Former Socialist Economies: A Recounting and an Assessment” (1996) Vol (30), Journal of Economic Issues JEI 243;

4. Ministry of the Economy of Georgia, “Georgia: Economic and Social Challenges of the Transition” [1997] Vol (40), Problems of Economic Transition PET 3;

5. Papava V, “Georgia Economy from “Shock Therapy” to “Social Promotion” Communist Economies & Economic Transformation” [1996] Vol (8) Communist Economies & Economic Transformation 252;

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