Government’s economic policy criticised

Economic analyst, Gia Khukhashvili thinks that the main reason for the shortfalls in the Georgian economy is the wrong system. According to Khukhashvili it is called “nomenclature capitalism.” The ruling administration directs businesses and under such conditions economic development is impossible. Normally the government should not interfere in the economy; it should facilitate the development of a certain type of environment and protect this environment. “Unless we do this, it is impossible to cure our economy,” thinks Khukhashvili. The analyst stressed that it is very important to have competition, an investment environment protected from political risk and an independent court system whereby the entrepreneur's interests are protected fairly. In general proof of a bad environment is confirmed by the fact that foreign direct investments have decreased dramatically this year. The analyst suggests that the investment environment in Georgia is completely intolerable; that serious investments enter the country only from unidentified sources – some from unfriendly countries.