აკაკი ცომაია

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აკაკი ცომაიას სტატიების უმეტესობა ქვეყანაში მიმდინარე ეკონომიკური პროცესების ანალიზს ეხება. აკაკი ცომაიამ დაამთავრა ივ. ჯავახიშვილის თბილისის სახ. უნივერსიტეტის ეკონომიკისა და ბიზნესის ფაკულტეტი. აქვს დოქტორის ხარისხი. ფულბრაიტის პროგრამით, ლექციებს კითხულობდა აშშ-ს ფლორიდის სახელმწიფო უნივერსიტეტში.

Articles

HOW DEMAND IS CREATED IN THE PUBLIC SECTOR

Part 2In a free market system people take decisions on the basis of cost-benefit analysis. Any such decision means, on the one hand, making a choice between existing alternatives and, on the other, yielding one thing in order to get something else of higher value. Consequently, price is important information for any customer, enabling him/her to compare various goods and services and create a personal scale of preferences. In other words, demand on a free market is that quantity of goods and...

What Do We Want, Expect and Demand?

An Economic Analysis of DemocracyPart 1: The Theory of CollectivismMutually beneficial transactions between buyers and sellers that take place in a free market represent a crucial element of the economic system. Sometimes, however, to ensure the process of mutually beneficial transactions, it is necessary to have more participants than just a buyer and a seller alone. Let’s call the entirety of such participants a collective organization, or club, that represents a group of people whose...

The Cost of the Policy to Replace Imports with Local Production

After a recent TV address of Georgian Prime Minister Irakli Garibashvili, it became known that the state's efforts in 2014 and the coming years will be focused on the implementation of an import replacement policy. According to the prime minister: "it is a shame when imports account for 80% of the net export structure." A special matter of concern is the import of agricultural produce, especially during the winter period when production in Georgia in this regard is very low.Even more, it was...

Depreciation of the Lari

What has happened on the currency exchange market? The Georgian national currency, the lari (GEL), has depreciated against the US dollar by 0.07 points (4%) since March 2013. Prices on food products have increased. Importers have sustained significant losses. Consumers have felt that their lives have become more expensive.Politicians and experts have made controversial and confusing statements on these issues. The official position of the Georgian government and the National Bank is that...

Economic Freedom Instead of “Idiocracy”

It is well known that, according to the rule of 70, a country's gross domestic product (GDP) doubles in the 70/X period, where X is an indicator of economic growth. If Georgia's economy grows by 10% annually, the GDP will double after only seven years. This means that over this time span, the welfare of people will reach the current level of Azerbaijan, provided that the Azerbaijani economy does not grow in the meantime. In the event of 2% growth, Georgia will still be a poor country after 50...

The Government’s Economic Achievements

One year, a single accounting period, is the minimal period of time on the basis of which one may speak about preliminary forecasts and the economic trends that will be observed throughout a parliamentary election cycle; provided, of course, that the state's behavior in regards to economic policy remains unchanged throughout that period. An analysis of the economic achievements of the past year helps us determine what social and economic problems and challenges the country will come to face...

Economic Results of Political Decisions

Even though this is something that is taught to first year undergraduates, there is a need to repeat it over and over again: a free market distributes resources in such a way that the total welfare of society is greater under that arrangement than it would be in any other possible situation. The market equilibrium price is the very power through which resources are distributed between market participants (consumers and producers) in a desirable direction. In particular, a free market, primarily...

Irresponsible Governance

According to data from the National Statistics Office of Georgia, in May the Gross Domestic Product (GDP) grew by zero percent on the corresponding indicator in April. In previous articles, I have warned about the high likelihood of recession. The Georgian government, however, forecasted economic growth of six percent. The International Monetary Fund downscaled that forecast to four percent, providing that the Georgian government meets certain preconditions. One such precondition concerns...

Georgia’s Investment Environment Will Further Deteriorate

Based on the analysis of statistical data, in a previous article, "Is Recession Likely," published in Tabula English Issue № 27 in March, I wrote that the Georgian economy was preparing to enter a new reality. Namely, I predicted an increase in unemployment in the short term and a rise in prices in the longer term, which means stagflation. Such a forecast was based on instant changes in direct foreign investments, the Gross Domestic Product (GDP), consumer spending, private and public savings,...

Why Are You Against Progress and Economic Development?

A widely accepted idea in Georgia is that agricultural land must be owned by the state. Even worse, for many people, the sale of land to foreigners is tantamount to an enemy invasion, the crime of treason or something like that. Moreover, xenophobic sentiments often dominate informal discussions about this issue. This all points to a lack of education. The aim of this article is to argue that such approach, in reality, deprives the country of an additional possibility to create products (and...

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