“We have entered a new world where the literature and faith they have developed is useless.”

 Expert Gia Khukhashvili published his extensive post in the social network, on the recent events. 

Roadmap for economic security.

The plan is of a schematic nature. Only the action algorithm is provided,  which requires further detailing.

Step 1. Set the task

1. a) To draft a so-called critical consumer basket.

Here we are talking about the formation of a list of food and primary consumption items, which is vital for the minimum provision of the population;

1. b) To determine a total volume of the basket by the positions, according to the annual consumption;
2. c) To determine a share of import, by positions

The task is as follows: To organize in Georgia production of the goods listed in point ( c ) in the volumes, that as minimum,  will fill-up the volume indicated in Point (b)

Step 2 Major areas of action

1. a) Agrarian farms, livestock farms, poultry farms, extraction of primary raw materials and / or formation of annual reserves;
2. b) Logistics – transportation, sorting, packaging, storage of relevant products;
3. c) Construction of the relevant power processing and primary consumption industry with competitive, latest technological standards.

Step 3. Implement protectionist policies on action areas for 3-5 years to ensure they are established as competitive systems.

1. a) direct and indirect (tax) financial incentives;
2. b) tightening control of the economic border;
3. c) in some cases short-term subsidies until competitiveness is achieved;
4. d) Optimizing the management of the land fund for its full development, in accordance with the food safety tasks.

We will offer recommendations on specific steps in the future.

P.S. I ask the free market apologists not to start teaching me what to do. “We have entered a new world where the literature and faith they have developed is useless.” –  Gia Khukhashvili writes in Facebook 

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