Role of Effective Institutions in Coping Crisis And Economic Development of the Country

Abstract

The goal of the present research represents a special role of the political and economic institutions functioning in Georgia in the recent worldwide pandemic situation. Nowadays the ideas of the society and experts are split into two parts: some consider that the role of state institutions should be increased in the pandemic conditions and they are so called "powerful governmen" supporters, but according to the others the government should not interfere in economy functioning and should not set strict restrictions.

It is obvious that the signifi cant part of economy of Georgia and afterwards one of the greatest and largest branches of economic development of the country is tourism and service. At present it is difficult to predict anything and to work out long-term strategies for developing economics in the country as the situation is permanently changing. It is hard to have an expectation for the situation stabilization in the nearest future; it is crucial to make accurate and adequate conclusions and to make optimal decisions on the example of the experienced countries.

COVID-19 Pandemic changed individuals’ attitudes towards many issues. Business and governments are prudent to make venturesome steps. In order to survive and adapt to the new reality the business sector ought to seek new and alternative ways of business production. Now, we can say, total domination and supremacy period of digital technologies is upcoming. Great part of the businesses completely turned to online working regime. Manufacturers have to adjust delivery and service to the customers’ interests that is connected with additional expenditures and it considers working out and establishment permanently new types of relations between producers and clients. This is a marathon process and the individual who will adapt to the new reality on time and will be maximally oriented on setting novelties will be survived in the race.

Generally, engagement of the whole society is necessary in the economic processes for economic growth and development of the country that means inclusive institutions formation and provision of inclusive growth. Such institutions should provide more or less equal distribution of incomes among the society members in order to Georgian citizens have motivation for commitment in the political and economic life of the country more actively. Synchronous development of macroeconomic indicators is of great importance as well for economic development of the country which can be result of planning and implementation of strategic economic policy.