Showing posts with label Economic. Show all posts
Showing posts with label Economic. Show all posts

Wednesday, December 15, 2010

Transformation of the economic free zone in Georgia

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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Tuesday, August 10, 2010

China relations - United States Economic

Introduction
This is an attempt to prevent the economic aspect of the emergence of US relations - China, the Chinese perspective. This approach can generate attractive returns information on the main economic objective of the economic interdependence of the modern world, and innovative ideas, such as current problems and future actions.

Theoretical background
The present phase of Sino-US through a high degree of economic interdependence can be analyzed by arealistic. Henry Kissinger has worked on a classic "realist" balance of power-sharing agreement for a closer relationship with China as a counterweight to Soviet influence in Asia after the Vietnam War. By Dr. Kissinger with Nixon's own words that "ideas for building peace in the world." Therefore one could say that in a constructivist perspective, this tradition of "realist" foreign policy of developing the law provides that the realitymost remarkable phenomenon of modern politics, economic interdependence among the world's leading liberal democracy and free markets the last communist state intentionally. The impressive increase in trade between the two countries after the reforms of Deng Xiaoping in 1979, presented the current situation, which dominate world trade and global economic stability takes place, depending on their development. The management of these relationships and interdependentpolitical and security implications require a qualified statesman economic issues to an unprecedented level of economic interdependence and the structural differences between the communist domination of economy is in transition toward a free market economy where China and the economies in transition the solution of "laissez-faire Reagan era, which seeks greater regulation in the global financial crisis of 2008.

Background
Thedevelop relations between the United States and China began a new direction, after Henry Kissinger visited China and brought economic relations, particularly after the reforms of Deng Xiaoping in 1979. Trade with the United States helped China to achieve spectacular success in improving the quality of life of the world's most populous country. life in China has advanced democracy in political openness and accountability and the protection of private property, the possibility ofcreate a prosperous middle class. At the same time, China remains a communist country, led by the Communist Party, which is still far from the notion of something like Gorbachev's perestroika, political reforms and much less complete. The remarkable economic development was accompanied by significant environmental damage. Some of these new rich have acquired their fortunes through corruption and avoid the lack of effective justice to this problem is partly due to PACThe opposition to political reform. The income of most people, but more people die of hunger in sub-Saharan Africa remains dangerously near the poverty line. Economic development is always based on cheap labor and evidence of success in advanced technology fields, such as performances in Japan and the Asian tigers.
The approach on China has oscillated between the relations of good will to threaten security in the 70s to alleviate someextraordinary period of economic growth, reforms of Deng Xiaoping, culminating in China, won first place among U.S. trading partners and the importance of the United States the world leader in uncertainty about how to treat China as a rival, an ally or a partner difficult problem to deal with, but impossible to dismiss.
floating exchange rage of the Chinese currency.

The Chinese government has a strong international pressure led by the United States resisted Chinese floatMint. The Chinese complain that this is not the problem after the financial crisis, the exchange rate of its currency but the dollar value or less correct, but the stability of the dollar, which depends on the political stability of the United States. The conclusion of Wang Qing, an economist at Morgan Stanley in Hong Kong, the U.S. government responsible for the stability of exchange rates and political stability. If a connection between politics and moneyThe measured values are not directly from him. There was no change in policy if the financial crisis hit in recent days the Bush administration. In particular, the importance of policies that may affect the exchange rate. In all cases, the huge Chinese trade surplus in U.S. dollars are mainly in the form of Treasury bonds has been confirmed.

"We paid a huge sum of money at UP, we are concerned about the security of our systems. To be honest, I amProbably a bit 'worried. "The problem is that the Chinese do not need a massive sale of bonds of the United States, have since been priced to another. But even if they have a great encouragement of the United States: U.S. Government. UU. Sell more bonds and the market may have an interest in keeping the interest rate on bonds issued by Chinese demand. The scenario of a decline in bonds held by the Chinese. For addition, if the U.S. government decided to restrict lendingand each half of the stimuli may be a slower recovery of the U.S. economy, exports from China to the United States have failed. Another scenario is linked to the reduction of trade deficit the United States because of the crisis resulting from the reduction of Chinese purchases of U.S. bonds. In any case, the financial crisis affecting the Chinese leadership with a dilemma. The United States sees the solutions for the promotion of domestic consumption in China. The Chinese government sees the solution in reducing its dependence on reserves of U.S. dollarsand dependence in American politics beyond their financial resources, as (with Russia) to create a global reserve currency has managed to increase the stability of global financial markets and have the advantage of greater freedom for the financial policies of political leaders that the money the U.S., EU and Japan.

China hopes that the second U.S.

failure to monitor
After the financial crisis and recovery measuresChina's main concern is the determination of the U.S. government and its ability to reduce its budget deficit under control. In terms of Chinese national interests of its capacity, with the negative impact of global financial crisis on the value of its reserves, according to the theme of American politics. Commentators speculate on whether China continues to buy U.S. securities and finance so that public spending in the United States. The obvious answer is: Yes, becauseReplace the U.S. Treasury for a safe investment, even taking into account all the dangers of the use of financial instruments a reservation. A logical consequence of improvement in Sino-US trade is that China is in the securities of the United States because there is less money for purchases used to buy bonds, but the money is to use the proceeds of exports to the United States to pay imports into force. Finally, if China was a viable choice to switch to other reserves"Safe Harbor" SDR of the IMF or €, will not hesitate to do so if it is commercially viable in the future. According to current estimates, however, make the dollar more attractive, despite its contradictory position serves as an international currency, but according to the national control of the United States. China will continue its national reserves in U.S. dollars and the dollar will lose influence government policies preventedValue.

Trade protectionism not free
Art other main issue of Government economic policies that China is happy to see a positive relationship with the United States has to resolve is how the government is in the use of protectionist pressures in Congress. China is understandably suspicious of U.S. intentions. On the one hand we have Obama's strong statements in several meetings of G-20 warning on the dangers of protectionism and otherthe introduction of fees involved in tires imported from China.

to prevent new U.S. rules on financial crisis
China is the negative impact of financial crisis, its vulnerability to economic events outside its control is the object. And 'understand that China calls for better regulation of their functioning and predictability of the U.S. financial system as global trade must be guaranteed by their state of health.

Strengthening the role of IMF in China
In20th meeting of the Fund International Monetary and Financial Management Board of the IMF in Istanbul was the Deputy Governor of Central Bank of China Yi Gang, a point for the higher rate for developing countries and monitoring capabilities more International Monetary Fund. He accused the IMF, which contemplate the global financial crisis and the blame for the failure of economic mismanagement resulting in partial representation in the organs of the International Monetary Fund.This is a valid complaint of China, as they have done what is expected of them to the goods actually exported and financial crisis that strikes without warning. The IMF on the need for structural and administrative reforms, including the type of examination is known, supported by the U.S. government.

The recognition of China as a market economy.
The recognition of China as a market economy affects the way in which the market value of assets is calculatedwhether the country participates in subsidies and dumping. Since China is not recognized as a market economy through its most important trading partner of the United States and the European Union is easiest to apply sanctions against China was imported when the latest U.S. rates on tires from China. In theory, the question is, has two faces. The first is this: China can be considered a market economy? The prevalence of state enterprises and the close scrutiny of the national currency, has a negative effectresponding. Furthermore, the remarkable development of business development in China, while its effectiveness, including residential work towards increasing export capacity points to the conclusion that China has considerable efforts to design it a market based system. The results of the recent Sino - US Strategic Dialogue to show that there are no insurmountable obstacles in the way of recognition of the United States on the status of China as a market economy will occur sooner or laterAccording to political developments in both countries.

While the official policy of China is the continued dominance of the Communist Party and the Marxist ideology of the Russian Federation (and the question Yugoslav) Experience shows that the true interests of the ruling class may be more material and ideological focus on the perpetuation of their power economy. Metastasis fueling corruption at points of origin int economic sense in this context, threerecognize scenarios for the future development of China. What is more desirable, but perhaps not the most likely gradual political development of Chinese society towards democracy after the consolidation of market economy principles. The most dangerous would be under the pressure of economic constraints and oppression of belligerence was Mao. Most likely, however, the collapse of the Communist Party and the transfer of power inhands of corrupt officials and mafia structures. U.S. incentives for democratic reform in China could defuse the risk of chaos and the collapse of communism and the significant impact that can cause safety. Ultimately, the conclusion can be drawn that there is a convergence of interests between the Communist Party of China, entrepreneurs and people of China and leads to resolution of a peaceful economic development as a form of all the problems in modern China. This position mayWatch the understanding of the United States and the rest of the world, because they are interested in compliance with long-term interests of all countries in the development of economic relations with China in the world wins.

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Saturday, November 21, 2009

Special Economic Zone of transformation in Georgia

There are a lot of economic zones in the world. What priorities will be the formation of the industrial zone in Georgia, and is coordinated?

There may be its geographical location, the proximity of Azerbaijan, Armenia, Russia, Turkey, Ukraine and Central Asian markets, I believe that before the formation of the industrial zone. It 'also provided that the direct proximity of Georgia on the Black Sea is the euro, the European Union.

It should be noted that wearsPoti is the biggest in the Black Sea region, 'the largest port facilities for loading dry Caucasus, which is in the TRACECA corridor and the most important transit white web. The harbor is through a direct view of the sea in Europe and the largest ports in Asia, is connected, has a direct ferry links with Ukraine, Russia, Bulgaria. The port is connected to the railway network in the country, with all cities in Georgia with the way in which it is attached, has relations with potentiometerAirport and Batumi International Airport. This port city offers all types of cargo. It is certified ISO-9001-2000.

Port of Poti to expand the conductivity and serves over 25 million tonnes of freight annually.Together geographical location, proximity to main roads and international labor cheap looking also at the front.

They are in the industrial area of 400 hectares and is adjacent to the northern gate to open and follow the sea, the beachOn-line.

This position carries the benefit of the enclave's economic and very liberal legislation is to attract foreign investment, the investment climate in Georgia is not very attractive from different angles. First, the definition of the investment picture is the size of the market. Large market is more attractive. The Georgia market is no different with the large scales.

The second factor is the law. Georgian legislation is liberal.Heritage Foundation says that the country is interesting in this direction. According to the index of economic independence, 32 Georgia Performs. This means that the barrier is very liberal for the business of advertising and industrial initiatives in Georgia.

One factor is the interruption of political instability. We know that the great inventor of attention rate guarantees for the political stability and investment. One of the problems of territorial integrity of our country,Returned to Georgia under the constant threat of war is also for those who were.

There are some problems in terms of law enforcement. Fixed suppress facts affected environment for private investment. It is important to offer income-generating activities and creation of mechanisms for legal protection.

Skills of the workforce is also a serious problem. is very low in Georgia. Intellectual resources is also reduced.

The main reasonCreating an EPZ is to facilitate investment, business growth and employment in the region to achieve. The country has the advantages of how the financial conditions for investors to make their choice in favor of Georgia, among others. We will see in the future functioning of the EPZ, and if instead of inflow of investments.

Calling areas, possibly off-shore. These are the areas thatquestionable in the eyes of all, because it is not selected. Its structure in Georgia has been followed by the opposition and the dependency critique. The majority of Georgian experts have a negative function of these areas, as is supposed to be the sphere of action, without reducing the interests of some individuals to launder dirty money ', sales of capital as a means to avoid regulations and taxes is very doubtful prospect in Georgia. In their eyes,understand why it is not necessary to establish an economic zone of the country has taken important measures to liberalize the economic environment and industry. Full liberalization of foreign trade was in the 90s. This meant that the export tax was raised. Duty-free cuts, such as quotas and licenses have been eliminated. Since 1998, the monetary transactions are completely independent. In 2006, high tariffs reduced. Today, customTariffs on agricultural production by 12%, based on materials of construction - 5%, others are zeroed. E 'simplified license and rights beginning of industrial activities and their implementation. A teacher who encourages economic expert Vladimir Papava: "Creating an economic free zone in conditions of free economy is a good fit. So I think that is the creation of an economic free zone in Georgia is nonsense."

He finds the following statement about his views. Theretwo types of countries in the world - those who suffer from over-investment and for them. Surplus countries to strengthen national investment of investors in the economic zone. Landforms in other conditions such that the investor invests money in the free zone in the territory of their country, not outside it. Creation of economic zones, tempered in the hunger for investment in land, the situation, since the investor does not enter theOwn country but throughout the region. Local investors will try to do the same. The economy of Georgia is not fixed and the ruin of the establishment of free economic zone economy throughout the country.

Temur Giorkhelidze expert wrote: "It 'something of a people and the country is made even raise an illusion. One area that is not of an international character. Insufficient development of the business environment across the country to cause chaos in this area!"

The authors ofDesign and supporters of the basis of the estimated FIZ its founding as positive and believe that Georgia is more developed and easier to overcome poverty if the economy is open and liberal.

The author of the bill Kakha Benduqidze considered an area of increasing activity in regions of Georgia needs. The area of high technology and production, working in the industrial city in the neutral point of doing somethingfurther impetus for the provision of their activities.

Economy Minister Vakhtang Lezha wrote: "It 'a very liberal system of economic regulation in Georgia. EPZ main objective is the creation of a liberal industrial specific region of the country for actual use is the goal." Request Lezha that "Georgia is not in the area becomes off-shore, where there are no prerequisites for this." After the declaration of the Governmentachieve greater economy of the economic zone, the country is.

Thus, the creation of an export processing zone was followed by several criteria. There is a constant demand - "What will be the basis of the industrial zone in Georgia?" Say in this situation on several occasions that "stick with two ends, or as there is positive, negative unilaterally. One might think that the surplus aside and make another advantage, it is good or not FIZGeorgia.

Let's talk about the anticipated risks and problems of establishing the free zone economic

Founding Director of FIZ is followed by spending in the first phase, since the payment of taxes, the family income decreased.
The legal regulation attractive free trade area to turn into investments, a particular region of the country at the expense of others. These regions are less interesting from the point of ruining the investment horizon. This can lead toThe opposition between the different regions, because people in one area can say they are oppressed and have no means designed for this.
It is defined by law, that the economic zone can be established in every region of the country will open in May in each region. This is exactly where the experts see the danger as the basis of FIZ is possible in the border areas where ethnic diversity, while the economy has EPZTheme of our country and fully integrated, it will be possible for the territories of neighboring countries from an economic perspective.

is negative, because a zone without any control of the country in which trade can be controlled, such as sections of the Roki - Down Zaramaga and eagles - Gantiadi. It 'very difficult to implement custom controls
is necessary to provide specific security measures may be because the production includedField area to the market through illegal means. E 'need to reduce the input and the maximum and opportunities posed by surveillance. There is the risk of smuggling in the economic zone. They see the danger the existence of shell companies to consider how much money himself. Although the authors intend to make calls in the law to avoid this danger.
EPZ increases the risk of giving a recycling "of money. There are many ways to"Recycling" of money. Cash transactions, the illegal use of banks and other financial institutions, expensive, movable and immovable property, gambling, considered a classic. The best way to "lighten" the money is in the process of privatization and free zones. A free zone is the best way for the entry of smuggled goods by road.
It is well known axiom that in countries where economic liberalization,The opening of borders, the development of transit, access to foreign investment, a growing movement of natural persons are in progress in countries where a relatively large proportion of the population is abroad and the countries of evil, surrounded by the possibility of "whitening", "Black" Money is very high.
Georgia "met" almost all the above conditions and may be one of the areas of "recycling" of money. The fact that so-called off-shore, symbols"Recycling" of money into the activities of Georgia, which increases the risk.

In my opinion, the danger of "recycling" of money in the FIZ is superior in the whole territory of Georgia, the anticipation that the record companies, like banks FIZ prohibited. I think this process is under way in Georgia today, however, because foreign investors who do not belong to their sources in Georgia by the number of holders of capital transparent. In fact, there are capital flows civilGeorgia. The capital will be invested by listed companies in the marine areas (eg, Marshall Islands, and Virginia), and this obviously means that are questionable.

Industrial Free Zone, in my opinion, supports the growth of inflation. Foreign investment is FIZ. This figure will increase with the growth of the foreign body in the country that has devalued in Lari, and is bad for exports.
There is no political stability in Georgia, the rights ofThe owners are abolished and the staff is not qualified. Permanent changes in the legislature is still in progress. Therefore, there is a risk of injury to predict the business climate in the absence of foreign capital FIZ called doubt that the country runs as fast as the economy worsened slightly to cause economic disruptions and funding in place.
There is a risk in choosing an operator. FIZ not b together, if the operatornot recognized in the world and a successful investor in this company. To be together, it is also necessary for the Georgia FIZ part of the world's industrial infrastructure and integrated production chain.

The creation of an industrial zone has its positive side. There are great opportunities for business expansion and growth. E 'possible to develop the region and set to zero the tax will be a new impetus for the sale of the company.

A positiveWebsite of the industrial area is also the fact that disruptive technologies and know-how to enter the country.

Increasing the supply of foreign currencies, since the objective is the capital of nature will pay the site is low. Inflow of investment has the potential for social and economic development. Investments grow to create jobs, relatively - employment.

The creation of an industrial zone in Georgia, wheresay, is not determined by the impact of the budget, it is necessary that the investment opportunities and attractive environment for businesses and new jobs.

You can increase the potential of the processing area for export. The majority of production will be produced for export, are certainly Georgia, Lari, as firming of the country meant to offset the increase in export prices and the deterioration of taxation. For example, data on imports and exports by 32% in1995, 2000, increased by 46%, is now reduced to 23%. From 1995 to 2007 has increased the volume of exports has been viewed 8 times and 11 times - import. WIP listed in the same period increased from 3.9 billion to 17 billion Laris say 4.36 times, while the actual WIP increased by only 2.1. Offset exchange rate has caused the deterioration of taxes. Only 10% of output is produced by FIZ be licensed in Georgia, the others will be exportedother countries. This will lead to improvements offset the tax.

Industrial zone - in terms of territorial integrity. FIZ aimed at territorial expansion. Challenges relating to 5-10 years. FIZ membership Guria, Samegrelo working properly, Guria, Sukhumi, Ochamchira. The separatists will not be able to block all property of the FIZ. For example, invited breakaway Turkish Republic of Northern Cyprus to have a thriving economy of Cyprus.

For expertsThe spirit, economic integration is necessary. Need of joint investment with Abkhazia and the Alans. The creation of these areas are carried out in the central regions of conflict LOB play a positive role in regulating the issue of conflict. Although this is only a dream, now, as is known to be a good control and stability. And 'the realization of good governance is possible in areas of conflict, and investors have a sense of stability isreally possible, the success FIZ. In fact, today, is a utopia, but we can not exclude that in the future.

Creating an industrial free zone has already been decided and will be activated shortly. FIZ should stimulate economic development in Georgia, although the opening of the industrial zone is not surprising, did not create their profit expectations, is a continuous process, the first results in 5-10 years.

Century Modern is theGlobalization. A process of economic globalization in the world will not be prevented from Georgia, and will be gradually integrated into the world of business. The process of our minds, already begun. Creation of Export Processing Zone suggests.

Government of Georgia, the law on the global competitiveness of the financial sector, "the foundation of financial supplies. The main purpose of this law is the integration of Georgia in the global financial system.Items for the transformation of "revolutionary package of legislation which established the offshore area badly in Georgia. We believe that foreign banks and assets for every ten million. Under the legal framework adopted in the section, advantages of banks for 100 million dollars, are not taxable. On the other hand, affects the provision of the rule of the taxation of banking, financial transactions, capital and so on.

What is the object of finding a financial center in Georgia in the framework of the financial centersLondon, Milan and Hong Kong are at the highest level of development and need not a representative of Poti. We provide havens and I really appreciate the conditions that may prevent his election in Georgia. Although not sufficient, given that foreign investors a lot of attention in countries with stable economic and political backgrounds, the type of Georgia that is not appropriate. There is no institutional infrastructure, technical and economic mechanism of protectionThe property is very low in Georgia.

However, Georgia's integration into the global economic dominance is inevitable and that it is a matter of time, because under conditions of globalization, for a total of any national government can not exist without space total economic and financial analysis.

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