Expert: The country has no strategy for economic development

TBILISI(BPI)-  “There is no strategy on how to develop a country economically and what it should be based on. Focus is made  on the development of the  tourism sector only, ” TSU professor Vladimer Papava says.

“When we talk about Georgia’s economy, we must divide the issue in two-  one is theoretical, scientific problem and the second is  practical. For more than 10 years leading world economists have said that to calculate economic growth using  GDP is a mistake. Economists are looking for  how to replace GDP or if not replaced what it can be used with.

The second problem faced by the economy is the growth structure. The fastest growing is a financial sector as well as  hotels business, restaurants business, government expenditure and leasing property. All this is economic activity which  growth is reflected in the economic growth rate. But this does not provide the population’s well-being. Therefore, the public thinks that the government deceives, in fact neither the government nor the population say a lie.

The government has developed  a general economic program but it is very general. But a strategy for  the country’s economic development  and the principles  it should be based on don’t exist The state boosts the development of only one sector-  tourism, ” Vladimer Papava stresses.

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