Unsustainable Economy

2026-07-04

Economic growth is driven by investments, production and trade. As well as the service sector. But the initiated production cannot be profitable without high technologies. Such technologies do not exist without expensive knowledge and capital. The existing social life of Georgian society does not possess such knowledge and capital. The fact is that the country has to start somewhere.

If we rely on the legacy of the USSR that Georgia is an agrarian country, we should also understand that in the modern world, the least developed countries are precisely agrarian. The share of agriculture in the GDP of developed countries is a maximum of 3%. The share of employment of the population in the agrarian sector of such countries does not exceed 3%.

If we say that the introduction of digital technologies is crucial for economic growth, we must understand that Denmark, Singapore and South Korea have gone a different path to achieving the formula for success in this area. Their current social environment and financial infrastructure require a different level of competition and different experience. In this direction, Japan was building the 22nd century yesterday.

It is known that the closer the number of producers and consumers is to each other, the stronger the country. However, if we connect such producer and consumer countries and their markets together, the strength and financial profit will be even higher. Therefore, directing all investments into transit infrastructure and logistics education is the solution and the start for the growth of the Georgian economy.

David the Builder has established tax benefits for foreign traders. The starting point for strengthening the state and renewing the Silk Road was created precisely with this step. Modern Georgia in recent years, on the one hand, has increased the transit fee for truck trailers, and on the other hand, has imposed a local fee on each container in Poti. However, Ilia Chavchavadze also called on the country: "The exchange of goods should be tax-free and not be covered by any legislation."

Ilia considered an open market to be better for everyone and urged us to buy goods there and from those who had better quality and at a better price. Now imagine how much profit would increase if we made such goods available to others. This is exactly what it is - "What you give is yours..."

A sustainable economy destroys occupation!

"A border that goods do not cross, soldiers from other countries will cross," - Frederic Bastiat, French economist.

A liberal economy is local investment and free trade - with stock and commodity exchanges. After the introduction of which, people start buzzing like bees in production and services every morning with interest.

The closer the number of producers and consumers approaches each other, the stronger the country. The rapprochement of other countries and companies through Georgia will subsequently bring investments, production and trade to Georgia on the level of Denmark, Singapore and South Korea.

The Netherlands is strong in both agro-industry and digital technologies because the port of Rotterdam connects the European market with the rest of the world. And the busy port of Rotterdam is created by the Amsterdam Stock Exchange, established in 1602.

Zurab Maghradze, DBA