GEORGIA – FREE MARKET IDEOLOGY OR PRAGMATISM
GEORGIA – FREE MARKET IDEOLOGY OR PRAGMATISM

Summary/Abstract: Georgia attempted the most radical reconstruction during the period from 2004 to 2012. There were made several pragmatic economic decisions together with implementing of state assistance programs for the most vulnerable. The assistance and subsidies had increased together with improvement of the economic performance and raise of state budgetary revenues but also strongest push of populist agenda by political rivals of the government. Economic performance of Georgia in the period was remarkable. The country improved its macroeconomic and business conditions by major reforming of business climate and economic freedom. The Economic Liberty Act of 2011 was a mojor step for guarantying and stabilizing of this environment but the simultaneous introduction of some interventionist measures made initiated and supported by internal and foreign stakeholders limited the ability of the economy to grow faster resulted in losing of popularity and inviting to the political agenda leftist players. Majority of the politicians who supported the radical reforms in the middle of 2000s found themselves in a trap of promises abandoning little-by-little small government agenda - to have chances to keep the support they had. For them so-called libertarian fashion lost its attractiveness and resulted in the shift towards left. They found a new pragmatic vision based on the belief that maybe more economic freedoms are good for business but this does not give immediate relief to poor who expect more responsibilities of the government for their living conditions. This paper is an attempt to analyze if the policy of economic freedom was maintained in its full range in Georgia and to show that more economic freedom is the only pragmatic way to improve economic conditions in the long-run.

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