PROBLEMS OF INCREASING NATIONAL ECONOMIC SELF-SUFFICIENCY
Vakhtang Burduli, D.Sc. (Econ.), department head, Paata Gugushvili Institute of Economics (Tbilisi, Georgia)
This article examines the problems of increasing the self-sufficiency of the Georgian economy through an improvement in its sectoral structure, diversification and expansion of exports, and increased import substitution. In this context, the author explores the concept of structural effect (mainly its sectoral-structure aspects) and the methods of its evaluation. The focus here is on evaluating the level of national economic self-sufficiency.
The level of self-sufficiency of the Georgian economy is studied in terms of broad sectors (groups of industries), and ways to improve its sectoral structure (through accelerated growth of priority sectors/industries) are suggested on this basis. The author charts ways to improve the strategy and instruments of Georgia’s sectoral structural policy, taking into account the opportunities provided by the provisions (guidelines, prescriptions) of the Association Agreement between the European Union and Georgia.
Keywords: Georgian economy, national economic self-sufficiency, sectoral structural policy.
The post-communist economic transformation of the economy began more than 20 years ago, but the country’s macroeconomic indicators are still less than satisfactory. The relatively high rates of economic growth recorded in the first decade of the 21st century (in some years) are explained by the fact that the recovery started from a very low point after an economic collapse.
In the 1990s, output in many industries (including those producing sufficiently competitive products) fell dramatically; for a number of reasons, there was a massive decline in agriculture. It should be noted that imports of goods and services exceeded exports (and in some groups of industries, even total local production), which indicates an extremely low level of………….