International Assessments Analyses of Systemic Transformation of Georgias Economy

Abstract

Between 1989 and 1991, within the scope of an unprecedented systematic transformation, a completely new era, followed by a number of challenges, started in Georgia as well as in all the rest of the new independent countries. The 70-year-long socialist experiment was replaced by experiments in the period of transition to a market-based economy, which does not yet seem to have an end. The research aim and goal: Analysis of international assessments transformation economic policy of Georgia; identification of problematic areas of transformational economic policy in our country. The theoretical and methodological fundaments is based on the approaches to the economic policy in line with Walter Eucken’s Principles of Economic Policy (1952). Our analysis of the reasons and consequences of the transformation is based on the study by Simeon Djankov et al. (2003), Rainer Klump (2015) and on the basis of Leszek Balcerowicz’s (2004) economic theory of transformation. In order to analyze transformation processes, we will be using the BTI, which assesses the state of democracy in a legal state and socially responsible market economy as well as consequences of political execution of reform ideas; for the purpose of a political and economic analysis, we studied the Democracy, Human Development and Global Competitiveness indexes and their dynamics provided by Freedom House. Findings: Georgia is the only country in Eurasia to have earned a recent improvement in the electoral process rating. Also, analysis of internationally recognized data show that inefficient state governance, bureaucracy, corruption, weak antimonopoly regulation and property right protection among other challenges in the transformational policy of Georgia remain invincible problems. Despite shifting to the market economic system, entities still do not have complete autonomy. It is the state planning work rules, salaries and programmes for public organizations. Reforms are not initiated at low levels of hierarchy w