Main Challenges, Prospects And Impact Of Georgian Economy Under The Conditions Of “European Green Deal”

Abstract

Modernization of Georgian economy is quite difficult and nonreversible process. Despite of some success of country’s economic transformation, legal or market reforms, the country still stands to a number of challenges.

In last decade, the idea of green economy, green growth and inclusive development of economic have become much more popular. The idea of green economy is based on the sustainable development of the economy and values it on the basis to its natural capital. Georgia is rich in natural resources, including biodiversity, water and mineral resources and landscape diversity. Consequently, country has a great potential for long-term sustainable economic development in areas such as energy, agriculture, transport, tourism and forestry. According to GGND analysis, these sectors are identified as faster yield, both economically and environmentally. For reaching these preconditions is the preparation of specific policies and legislative documents and then harmonization then with EU legislation.

These processes are accompanied by ne policy initiated by European Union, which is known as “European Green Deal.” The main aim of this new imitative is making European continent a climate-neutral by 2050. It represents a completely new vision of establishing a new European order, which may have a major impact on its neighborhood, including Georgia.

What economic impact should have European “Green Deal” on Georgian economy depends on the transformation degree of country’s economy and its transformability and compatibility with the EU economy. Here some important factors should be considered: what impact will have Green Deal on Georgian-EU relations in terms of deep and comprehensive free trade agreement? The second and even more important fact is: what impact should have European Green Deal on Georgian economy in the context of formation opportunities of green economy. These processes are analyzed in this article, are outlined ways and relevant recommendations are developed.