Modern Economy, 2016, 7, 314-319
Published Online March 2016 in SciRes. http://www.scirp.org/journal/me
http://dx.doi.org/10.4236/me.2016.73034
How to cite this paper: Aslanishvili, D. (2016) Market Foundation for Sustainable Economy Growth and Energy Policy
(Georgian Case). Modern Economy, 7, 314-319. http://dx.doi.org/10.4236/me.2016.73034
Market Foundation for Sustainable Economy
Growth and Energy Policy (Georgian Case)
David Aslanishvili
Department of Finance and Banking, Faculty of Economy and Business, Tbilisi State University, Tbilisi, Georgia
Received 23 February 2016; accepted 20 March 2016; published 23 March 2016
Copyright © 2016 by author and Scientific Research Publishing Inc.
This work is licensed under the Creative Commons Attribution International License (CC BY).
http://creativecommons.org/licenses/by/4.0/
Abstract
In this article we have overviewed the present conditions of Georgia and proposed some ideas about
how to turn Georgia from a backward country into a developed one. The article, “Market foundation
for sustainable economy growth and energy policy (Georgian Case)”, highlights the importance of
the strong and reliable energy system for sustainable economic growth, their interaction, the luck of
market tools and market price (capitalization) and energy problems in Georgia, including the dys-
functions of regulatory Commission. At the same time, we have highlighted and presented the nega-
tive gap between the per capita GDP and energy consumption rates in Georgia and the developed
countries, like Switzerland, the US and the Europe. Also, it had investigated the ways how to encour-
age economic growth in energy sector in Georgia based on modern market tools.
Keywords
Economy Growth, GDP, Energy Policy, Stock Market, Regulatory Commission
1. Introduction
The mission of research proposal is to find out the real solution to rapidly developed countries like Georgia
based on modern capital market tools.
Economic progress and improving living standards of the population depends largely on the provision of high
economic growth. That issue itself heavily depends on energy sources.
To illustrate wide gap between the developed economy and the weak one, let us compare the current level of
per capita GDP of Switzerland to Georgian one: an average income of middle-income Swiss citizen (58,996.90
USD) [1] is more than 2 years’ (24 months) income of Georgian citizen (2254.38 USD) [2].
If we look closely on per capita GDP in Georgia [3], its figures do not show the rapid growth tendency to
narrow negative gap in development: (Figure 1).