Geocese has organized the online discussion on ‘Georgia and the Modern Global Economy’. The purpose of the event was to review the development of global economic trends and to define the role of Georgia in the modern global economic system.
The event was moderated by Victor Kipiani, Chairman of Geocase. At the beginning of the discussion, Victor Kipiani focused on two main constituents of the modern economic structure, as well as growing regionalization and some kind of convergence of industrial, trade and investment policies.
‘The global supply chain is equally tied to both economic and political processes. Today we are seeking a new balance between globalization and "economic nationalism. I assume, three objectives are emerging from the perspective of both the global and the Georgian economy: the first one is to use the opportunities that globalization offers us, but at the same time, to create opportunities and means in order to protect the legitimate national economy, in a way that no national system grows or ‘slips’ into protectionism,’ remarked Victor Kipiani.
Davit Aptsiauri, Director on Economic Policy at Geocase, gave a detailed overview of the current economic processes in Georgia as well as successful international projects, and their impact on the country's economy.
‘International consolidation to solve global problems clearly remains a priority in the modern world, which depends on many factors, first of all, especially on political will and resources. Today, not only due to the challenges of the pandemic crisis, we are in a transition phase, when multilateral approaches to cooperation do not lose their importance, though have weakened and bilateral regional cooperation outlines are evident,’ - stated David Aptsiauri.
During the webinar, Professor of Tbilisi State University, Academician Lado Papava, discussed the impact of the pandemic on world economic processes and explained the definition of term ‘pseudo-globalization’. He noted that Georgia has a great advantage, as it is the only country in the region that has a free trade agreement with the EU as well as China.
‘Given the global nature of the pandemic, it is fundamentally impossible to overcome it in isolation. The simple logic of the world dictates that in order to succeed, it is necessary to take globally coordinated measures in which international organizations and states must take an active part. If the efforts of individual states are of paramount importance in ending an epidemic, then it is fundamentally impossible to overcome a pandemic without the coordinated action of those states. And in the wake of the COVID-19 pandemic, there is obvious that the countries which hinder free trade ultimately suffer economically. Thus, we can assume that the process of ‘de-globalization’ is temporary, i.e. there is ‘pseudo-globalization’. Therefore, it is advisable for all countries to use the current situation to better prepare for a new round of globalization. The sooner Georgia prepares to take its place in the renewed globalized world, the sooner it will be successful,’ Lado Papava said.
Kakha Gogolashvili, Director of the Center for European Studies at the Georgian Foundation for Strategic and International Studies (GFSIS), talked about European visions for globalization and EU economic models. He spoke about how Georgia can become a bridge between the free trade countries, create a production chain and make neighboring countries interested in cooperation with Georgian enterprises and enter the EU market with the products made in Georgia.
‘Until the world is completely secure, as long as China, Russia and other illiberal countries try to promote their own order and thus threaten the development of liberal democracy in the world, the EU is trying to support small and medium-sized businesses in order to facilitate national economic independence and Self-efficacy in all main domains because so far it is impossible to move production to the regions with authoritarian rule. I think the usual approach to globalization will be temporarily limited after the pandemic. The agenda elaborated by the European Union for 2019-2024 fits the post-pandemic world and the policy of sustainable economic development is a priority, also, 'climate-neutral', digital economy is developing,’ Kakha Gogolashvili noted.
During the discussion, the participants analyzed the main challenges of the global economy and the current situation in Georgia in this regard in order to further raise public awareness.