There are several free zones around the world. What are the priorities needed to form a free trade area in Georgia, and little by little right?
We can check the current situation of the country, the proximity of Azerbaijan, Armenia, Russia, Turkey, Ukraine and Central Asian markets, before the formation of the industrial zone. It should also establish a direct neighbor of Georgia on the Black Sea to the European Union.
It is worth remembering that the doorPoti is the biggest and the Black Sea and 'the largest port in the maintenance of dry cargo from the Caucasus is in the TRACECA corridor and the traffic more important for the transport of the Caucasus. The port is a direct instruction to the sea to major ports in Europe and Asia are connected, has a ferry with Ukraine, Russia, Bulgaria. Wearing this trip in the country is connected, is connected to all cities in Georgia to travel by car have a relationship with potentiometerAirport and Batumi International Airport. The port offers all sorts of goods. It has obtained ISO-9001-2000.
port of Poti can increase the conductivity and serves over 25 million tonnes of freight annually.Together be as stand-by position, proximity to international trade and cheap labor.
This is a free trade area of 400 hectares and the opening of borders to the northern port city and went to seaLine.
Exactly the point of view of economic free zone and lead to very liberal legislation needs to attract foreign investment, as the investment environment in Georgia is not very interesting from different angles. first factor in the investment climate is the size of a market. Enlarge the market size, the most interesting. Georgia does not differ in any market.
The second factor is the law. Georgia is the liberal law.Heritage Foundation keeps us pretty village in that direction. According to the index of economic independence, taking 32nd place in Georgia. This means that the barrier is rather liberal of the screen provides businesses and industry initiatives in Georgia.
A failure of political instability. We know that the attention of the creators of political stability and investment guarantees. A problem of territorial integrity of our country,Georgia, under the constant threat of war is also for those who are mentioned.
There are some problems in terms of law enforcement. facts fixed eliminated the negative impact on the environment for private investment in the property. It 'important to maintain economic activity and the creation of mechanisms of legal protection.
Qualifications of the personnel is also a serious problem. is very low in Georgia. intellectual resource is also reduced.
The main reasonCreating a free trade area attracts more and more investment firms in the region and achieve employment. For these to form the country benefits from the financial situation for investors, for the production of their choice in favor of Georgia, among many others. We'll see how the future success of the operation zone of free trade, and if the flow of investment.
Call EPZ in high seas areas that areunder the gaze of all the skeptics, because it is not checked. Its implementation in Georgia has been followed by the opposition and critical dependence. Most experts Georgian negative function of EPZs, as is supposed to be in connection with these actions have reduced the private interests of particular individuals, to clarify the "black money", the sale of assets in the form of circumventing the rules and the fiscal point of view very doubtful Georgia. In his mind,understand why it is necessary to create free economic zones in the country had taken important steps towards the liberalization of economic and industrial context. Full liberalization of foreign trade was in the 90s. This means that the export was approved by the tax. reductions have been abolished duty-free quotas and licenses. Since 1998, monetary operations totally independent. In 2006, high tariffs reduced. Today, the habitTariff on agricultural production is 12% of building materials - 5%, others are zero. They simplified licensing and rights and the principles of industrial activities and their implementation. A teacher called, the economic expert Vladimir Papava: "the creation of a free trade under conditions of free economy, the pace of inefficiency that is what can create a free trade area in Georgia believe that nonsense.".
He finds the following statement at his trial. E 'There are two types of countries in the world - those who suffer from over-investment and lack of them. surplus countries to increase investment by domestic investors in the economic zone. That the country is the condition that the investor invests money in the free zone in the territory of its country and not leave. Creation of free economic zones in the country's hunger hardens the investment situation in which the investor isField itself, but in the region. local investors will try to do the same thing. Georgia's economy is strong and the downfall of the economy, creating economic zone.
Temur Giorkhelidze expert writes: "The fact that something is done in the city and across the nation will rise is an illusion, a sector that will keep the capacity of the international construction industry through the little country to cause chaos in this field ..!
The authors of thefor the design and creation of the estimate of its foundation FIZ be positive and remember that Georgia is more developed and easier to overcome poverty if the economy is more open and liberal.
The author of the bill Kakha Benduqidze this area, if necessary, to increase the commercial value of the assets in Georgian regions. These high-tech production and the area where the person is basically an industrial system what to doadditional incentives for business development.
Deputy Economy Minister Vakhtang Lezha wrote: "It 's very liberal system of economic regulation in Georgia primary objective of free trade area to guide the creation of a liberal business environment in the territory of the country, including a real job .. "Lezha called" Georgia will not become off-shore area, there is no prerequisite for this. "After the declaration of the GovernmentFree economic zones to boost the economy for the country.
Therefore, the establishment of free trade area from different angles to be achieved. There is a constant question - "What to reconcile the principles of free trade zone with Georgia" in such a situation, often say "a stick has two ends" is positive or negative, if one side. It is necessary to address the surplus part of each other and make decisions is positively related to benefit or otherwise of the FIZGeorgia.
Speaking to the anticipated risks and problems of creating free economic zones:
Establishment of the FIZ is followed by spending in the first phase because of the tax and the reduction of family income.
attractive legal regime of free trade in the region is investing inflected, a specific region of the country at the expense of others. These regions are less attractive investment ruin pf point. This canThe opposition between the various regions, as they say in a particular region may be deleted, and no possibility of development.
This is the meaning of the law, which may be the zone in every region of the country may be set up in each region. This is exactly where the experts see the danger that the foundation of FIZ is available in border areas where ethnic diversity is the area of free trade for economic developmentArea of our country and can fully integrate the territories of its neighbors in economic terms.
E 'negative because it is another area without control of the country in which trade can not be controlled, as are parts of the Roki - Down Zaramaga and eagles - Gantiadi. It 's very difficult to create custom controls
is necessary to provide specific security measures, because the production can not meanfor the size of the domestic market through illegal means. It is necessary to reduce the input and opportunities, and better control. There is a risk of smuggling within the economic zone. There is a danger to the existence of shell companies, the amounts will be. Although the authors call the lever of the project of law to ensure this.
free trade area, increases the risk of "recycling" of money to give. There are many methods"Recycling" of money. Treasury operations, unlawful use of banks and other financial institutions in connection with the operation of the movable and fixed costs incurred, must be the game that the traditional mechanisms. The simplest type of "recycle" the money is in the process of privatization and free zones. The free zone is the best way for the entry of smuggled goods in his own way.
And 'well-known axiom that in countries where economic liberalization,The opening of borders, the development of transit, entry of foreign investment, the growing movement of natural persons are in place in countries where a relatively large proportion of the population is abroad and organized by poor countries a "whitewash" "black" money is very high.
Georgia "met" virtually all of the conditions listed above and may be an area to launder money is considered. The fact that so-called off-shore companies, symbols Forum"Recycling" of money to provide activities in Georgia, which increases the risk.
In my opinion, the risk of money to "recycle" is more in FIZ, as the whole territory of Georgia, the anticipation that the record companies and banks are prohibited in the FIZ. In my opinion, this process is under way in Georgia today is, however, because foreign investors in Georgia from sources outside of the number of shareholders transparent. In reality, there is no civilized capital flowsGeorgia. The capital invested by companies registered in offshore areas (eg, Marshall Islands, and Virginia) are introduced, and this of course means that there are doubters.
free trade area, in my opinion, support the growth of inflation. Foreign investment is on FIZ. This translates into growth in the foreign country that cancels sent as part of Lari, and this is bad for export.
There is no political stability in Georgia, the rights ofThe owners have been removed, and unskilled labor. The evolving legal system has not been completed. Therefore, there is the risk that the economic disadvantage provided, it seems doubtful FIZ abbreviated foreign capital, which expires in the country as the economy deteriorates, and thereby causing a disruptive economic and financial shortly.
There is a risk in choosing an operator. B FIZ not another operator whenhave not been recognized worldwide and a successful investor in this company. To be together, it is also necessary FIZ part of Georgia of the world's industrial infrastructure and integrated supply chain.
Creating a free trade area has its positive sides. There are great opportunities for business development and business growth. It 'possible that the development of the region to zero and the tax system to provide further impetus to the company.
A positive resultlateral free trade area that the technologies and know-how is the country in force.
There is a growing influx of foreign currency, as is the fate of the capital moves in essence, where low wages. Investment flows, the possibilities are for the economic and social development. Employment - to increase investment to create jobs, provide on.
Creation of an industrial zone in Georgiais not calculated for the effect of year, it is necessary to provide investment and attractive environment for businesses and new jobs.
With a potential free trade zone for export may be increased. Most of the production is exported to Georgia for another, such as hardening Lari in the country has led to an increase in the prices of export taxes and the deterioration of the balance. For example, data regarding imports and exports by 32%1995 and 2000 increased 46%, now reduced to 23%. Imports - 1995 to 2007 the export volume was 8 times, and increased by 11 times. WIP evaluated in the same period, 3.9 billion Laris was 17 million dollars, 4.36 times higher, while the only real WIP 2.1 was higher. The exchange rate of the currency led to a deterioration in the fiscal balance. Only 10% of production occurs in the FIZ is registered in Georgia, others will be exportedother countries. This will lead to a better fiscal balance.
free trade area - in terms of territorial integrity. FIZ aimed at territorial expansion. His duels territory in the years 50-10. if Guria FIZ-Samegrelo operating successfully, will join Guria, Sukhumi, Ochamchira. The separatists are not able to block all property of the FIZ. For example, the flight of Northern Cyprus has called on the Turkish part of Cyprus to accede to economic success.
For the expertsThe history of economic integration is necessary. Do you have plans for joint investment with Abkhazia and Alanians. The creation of these areas gives rise to lob the central regions of conflict to adjust the positive role of conflict case. Although this is only a dream, now, as we know it takes great control and stability. While the achievement of good governance can be in conflict regions, and investors have a sense of stability,FIZ actually possible to create it. In fact, today, is a utopia, if we can not exclude anything in the future.
Creating a free trade area has already been decided and will be activated shortly. FIZ expects a boost to economic development in Georgia, despite the opening of the regional free trade is not surprising that do not produce surplus is a continuous process, the initial results in 50 - 10.
Century, modernGlobalization. A process of economic globalization in the world will be prevented from Georgia and will be economically integrated with the world. The process, in our view, has already begun. The creation of the FTA suggests.
Government of Georgia adopted the Law "on the global competitiveness of the financial sector, the Foundation has a financial center. The main purpose of the law is the integration of Georgia in the global financial system.Elements of the revolution package accused touched laws that require the participation in high seas areas of Georgia. We believe that foreign banks and assets for ten million dollars. It will be after the section of the law, banks have a maximum taxes of $ 100 million. You also have the benefit of the rule of the taxation of financial transactions in the banking, capital movement and touch, etc..
What is the financial center of Georgia in the background, regardless of when financial centersLondon, Milan and Hong Kong are at the highest level of development and are not agents need to Poti. In case, if a tax haven and do not provide a benefit that can stop his election in Georgia. Although it is not sufficient, since foreign investors to pay particular attention to countries in economic and political stability in the category in which Georgia does not belong. There is no institutional infrastructure, technical and economic security mechanismThe structure is very low in Georgia.
However, Georgia's integration into the global economy is inevitable and a matter of time, because there is, in conditions of globalization, non-nation-state, without a total amount of space could finance and economics.
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