The FINANCIAL - What the New Prime Minister and the Economic Team should Consider

What the New Prime Minister and the Economic Team should Consider

The FINANCIAL -- Creating a coordination center for implementing reforms and legislative initiatives is vital for efficiency and inclusive economic growth with benefits incurred by every section of society.

Center will need to subordinate to the Prime Minister, because up to date, many interesting projects were not developed when it crossed through different ministries and there was no coordinating leader who would provide deadlines and consequently make accountable responsible parties for timely execution. There were cases when the official began to work on the project, after some time resigned, everyone forgot topic and nobody was being held responsible to the alleged loss that could result in budget revenues.

Reimbursement of government official is much less than the salary of a private sector top manager. Moreover, motivation of private sector top manager is driven by personal interests to develop a business and gain dividend. Consequently, when the initiatives are offered from the private sector, government official’s enthusiasm is less, because they do not see personal interest in making changes, even though such changes may create a huge fortune in the country and increase budget revenues. Such attitude creates the hearth for corruption and leads to corrupt interests of officials to promote projects where personal benefits prevail.

It is important to be able to count the revenues, after implementation of legislative changes that leads to economic, business, and budget revenue growth. Government officials’ team that will develop such changes must have specific interest rate from total revenue, in a form of bonuses to standard reimbursement. Of course this should not be considered while increasing taxation, but for projects, changes, that promote innovations and services development in the state. Such approach will increase efficiency, synergy in collaboration of private and public sectors, and decrease corruption, which in return will give the impetus of intensive work on good for the state.

Brian Tracey in his book - "Goals" emphasizes on studies conducted over the years in an attempt to identify the qualities of leadership. The most common quality found in all these studies was that of “Vision.” The difference between leaders and ordinary people is that leaders have an exciting vision for the future; average people do not, and those who are not leaders are oriented on receiving pleasure in the present time, without focus on future.

Based on the study, government officials could be divided in two groups:

a. Leaders, who have vision, carry out reforms for a better future. Their action serves to the state interests, introduce novelty, create values and achieve success; and

b. Officials, who do not have vision or leader qualities, and are oriented on the present.

If in the second case, prevails indifference, the lack of values, the prone to corruption, the likelihood that against such officials are instituted criminal proceedings is very high.

In almost every field there are weaknesses in Georgia, especially in the transport industry. Officials are actively talking about the revival of the merchant fleet, development of new ports and terminals, but there are neither financial resources for quick development of capital intensive business sectors, nor vision for harmonious development of transport industry.

Can the Government of Georgia develop additional one or two “ports” in the country by implementing legislative changes? Of course they can.

Only skeptics and pessimists can say they can’t, but optimists and professionals can easily see the opportunities of optimal use of the territorial waters of Georgia for the purpose of maritime services business.

Is it possible to revive and develop international shipping, logistics and trading business company’s activities in Georgia? Of course it’s possible. But for this it is necessary to have a leader with a vision and aim to make Georgia and its people prosperous.

The easiest way to achieve success is to find out what are the problems and obstacles for development, examine the essence of the problems, find ways to solve and make the parties happy. Happiness creates the simplicity and gravity of doing business, which ultimately affect the state and society positively. If rule of law, and no preferences for certain business or society group is guaranteed, then inclusive component is activated and the benefits from prosperity is evenly spread, which automatically is incurred by every section of society.