Many of the projects and ideas presented by the Georgian government are good examples of wishful thinking. However, when the ruling party is called Georgian Dream, a pursuit of wishes and dreams should not surprise anyone.
Georgia is becoming, once again, a country to be watched by those of us who value liberty and the expansion of freedom and prosperity. Back in the fall and winter of 2019, there was little news about Georgia in the European and Central European media. There were a few political and economic developments – such as the international indexes (on economic freedom, by the Fraser Institute, and on ease of doing business) and an interview…
The story of Georgia should be an example to all developing nations that any country with the will to do so can take charge of its own tax system and, without the aide or interference of international organizations, create the conditions for economic growth and prosperity.
In times of crisis, it is easy to make mistakes, and no one can be infallible. One of the most characteristic signs of the crisis is its politicization. All parties want to prove that they have the best program and ideas to get out of the crisis.
In the current difficult situation, it is especially important for Georgia to choose a pragmatic way and not to be overwhelmed by emotions – this applies to health care measures as well as economic policy.
The football business shows well how underestimating a well-performing and efficient player can bring other costs. The player may either simply leave for another team, or, if restricted with a contract – underperform to the level only required by the payment.
One of the problems with the economic progress in the transition countries from socialism to market economy is the state of property rights. You can improve business environment, trade, or monetary systems but never progress if the property (rights) is not protected well.
Georgia, after regainig its independence, became a place of many experiments. The nation made certain state-craft steps to obtain legitimacy and capacity to run social institutions. Including the process of restoration of private property.
Privatization, however, is not only a sale of government-owned properties: It is first and foremost a process of separating the government from intervention in many other areas, not just the economy. Georgia is a positive example, and an almost unique exception in this respect.