Posted: 3 months ago

We should Develop Global Companies following State Interests

E-government system has been valuably developed in Georgia compared to digital economy directions.

Georgia has important digital economic resource, developed electronic services and telecommunication infrastructure. However, the country lacks for digital economic policy and efficient strategy. Key challenges of the digital economic policy are:

  • Electronic governance standards, normative legal basis, digital strategy and policy;
  • Promo programs for developing the equipment and software products of the industry;
  • Social-economic activation stimulated by block chain, cloud computing, mobile, social and sensor networks;

Psychology proves that Georgia’s digital environment is viable and potent, but the wealth from digital economy is very little because of low governance activity paces, deficit of programs and practical approaches.

It should be noted that not only money allocation suffices for activating the digital environment in the country. Initiating programs, resources and management component also represent an important factor.

Consequently, based on the existing reality, Government of Georgia should make focus on the following key directions:

  1. Georgia’s economic policy should be directed to digitalizing the country;
  2. More accents should be made on unemployed directions of the digital environment, digital lands and exports of digital products;
  3. Digital economic diplomacy and digital economic relations enhanced by diplomatic platform should be activated;
  4. On Georgia’s digital market, measures should be taken for attracting capital and growing investments interests of global digital companies (robotechnics, artificial intelligence and development of other fields);
  5. Under technological domination, it is necessary to develop programs (with due financial resources) that will foster the acting Georgian companies to digitalize their products – production of internetized products;
  6. With political interests of Georgia, Georgian companies with strategic business activities and competitive capacity should be established on the global market.
  7. Accents should be made on the resource of state research institutes. For overcoming the problems, it is necessary to create Digital Governance State Research Institute for exploring state problems and developing government programs. Establishing a due institute will resolve the issue with exposing the E-governance potential, consultations and recommendations will promote the management process, introduce problem-resolution practical approaches and target programs for digital economy development;
  8. State offices should transmit the component of establishing programs to state research institutes, the education component should go to education facilities, information component - to nongovernmental organizations and digital environment management process should be managed by one state office;
  9. For social-economic activation of each family (segment), individual programs should be implemented; digital economy should be developed in villages; economic development responsibility should be determined for village heads (governor, mayor, head should be entitled to initiate programs and implement them);
  10. Amid formation of the new world order, the country needs strategic preparations: with plans, programs, resources, trade-economic approaches and strategic business activities;

In conclusion, I would like to note that the country needs digital environment and digital economy development. For the development format, I offer the slogan: “Digital Economy against Poverty and Inequality”, which should be realized based on state programs, digital projects, governance activation and practical measures carried out in the society.

Rati Abuladze

Doctor of Economics, professor