• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Transition economy: Georgia. Transition economies are the economies that have changed from one kind of economy to another.

Extracts from this document...

Introduction

Transition economy: Georgia Transition economies are the economies that have changed from one kind of economy to another. There has been many instances where this has been the case. For example in Russia in 1917, when the Bolsheviks revolted to bring the capitalist state, following an ideology presented by Adam Smith in the "Wealth of Nations", to a command economy, following Karl Marx's theories. These two economies are very different from each other. The capitalist economy is an economy which is when the factors of production, namely land, labour, capital, and entrepreneurship are owned by privately and the state has no or almost no power, but the command economy is where everything is state owned and is put to use by a communist state, the governments usually have 5 year plans to plan everything beforehand. However this proved unproductive and therefore most of the former communist countries are developing a more capitalist perspective. ...read more.

Middle

Also the unemployment rate is steadily going down. Even though there was some rise in the unemployment in 2001, the country soon regained their balance and is improving. However the balance of payments is not as good as it could be. Georgia received help from the World Bank and the IMF; these organizations help Less Developed Countries with money to improve their economy. Although the country has med most of the criteria of the IMF, they are returning to be in more deficit than when they were financially helped. This is also because there is substantially more import than export to other countries. In 2006 (est.) the country was exporting 1.761billion US dollars and importing 3.32billion. This is not desirable for the country at all. For the country's economy to be stable the amount of export and import should be at equilibrium. Since this is not so, the country will not be growing at a rate that is needed. ...read more.

Conclusion

Georgia imports 2.4 billion kWh of energy, mostly from Russia. This is a great problem that the country must import energy because it is the major cause for the imbalance of import and export. The developing government must see to it that Georgia develops technology so that they do not need to rely on imports for energy in the future. In general, Georgia is improving. They have not improved as much as the other former USSR countries, but they are steadily making progress. After being helped by the World Bank and IMF, the country has become increasingly better off, although there are still more goals they need to achieve. The country has also applied to be in the European Union; however they were rejected because of the country's low standard of livings. The country has hope for the future. If they solve the major problems then they might have a chance of becoming a EU state, confirming their economic progress in the future. ?? ?? ?? ?? - 1 - ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Economics essays

  1. World Economics assignment. The core economic issues that are focused on in this ...

    is an organization which can provide a negotiating forum, offer a set of rules and helps to settle disputes for its memberships between nations." Its main function is to ensure that trade flow as smoothly, predictably and freely as possible(13).

  2. Assess the impact of a run on the dollar and a US recession on ...

    A current account deficit for the US during years of economic expansion is not a bad thing as imports provide price competition, which limits inflation and, without increasing prices, provides goods beyond the economy's ability to meet supply. However if the US were to be hit by a recession caused by an exogenous shock e.g.

  1. The future of Eli Lilly

    Therefore India was an attractive market for Eli Lilly, and when negotiations started with Ranbaxy it showed that the two companies had more in common than first assumed. Advantages with a Joint Venture There are several advantages with a Joint Venture.

  2. The luxembourg Economy (Complete Review)

    More accurate determinations are derived from the Human Development Index (HDI). The HDI is based on three main variables: life expectancy, educational ability (adult literacy and combined primary, secondary, and tertiary education), and GDP per capita. Bellow Source 1 shows that although Luxembourg has a substantially higher GDP than other

  1. Outline briefly- with a diagram, the key economies and diseconomies of scale, both internal ...

    Looking at it differently, we can rightly say that by achieving economies of scale, the company has better chances to decrease its cost. According to Adam Smith, there are two ways to achieve economies of scale, i.e. two ways to achieve larger returns on production: division of labour and specialisation.

  2. Equal rights for women in labour market in Lithuania

    As a consequence, the position of women and men changed, for any alteration of situation in economy results in demographic and employment variations. The most evident trend became the decrease of women role in labour market. The main features of the post-soviet Lithuanian economy were the growth of unemployment rates,

  1. Should the government take an active role in the management of national economies?

    He embarked on a program of reform. In essence, it was the beginning of fiscal policy.

  2. 15 Historical Economic Questions on Mercatilism and the Development of European Countries.

    Smith attacked the government?s tendencies to favor companies and limit their subsidies towards their operations. This closed out opportunities for small business within these colonies. High import duties hurt all business but left the state unscathed and only less worried about a negative trade balance.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work