Financial Globalization and Post-Communist Georgia

About the Book

In most cases the problems caused by financial globalization are identical in various countries, which is why it is especially important to develop some standard solutions. Nevertheless, it is also doubtless that economic "recipes" for "small" and "big" countries can be different and it would be a mistake to apply only a uniform approach to all of them.

The book evaluates an international financial system development potential in the context of "corporate crises" started in the USA and a probable impact on international financial markets and business activities. With the introduction of the Euro, a "new three-pole world currency system" was established. In this connection, two quite sensational forecasts made during the last two years regarding the collapse of the US Dollar are analyzed. These forecasts make a pretty "gloomy picture" of the future of both the US Dollar and the international monetary system.

The book draw reader's attention to global exchange rate instability and its implications for Georgia. It is demonstrated that as a small economy, Georgia cannot have any substantial influence on global economic developments; however, if it succeeds to pursue more-or-less reasonable economic policy, it may generate some positive results, or at least minimize negative ones.

About the Author

Senior Fellow of the Georgian Foundation for Strategic and International Studies, Prof. Vladimer Papava is the author of more than 150 works. Remarkable are his studies of Post-Communist economies. His research efforts are underpinned by a practical experience: from 1994 to 2000 he was a Minister of Economy of Georgia.

Senior researcher of the Paata Gugushvili Institute of Economics, Dr. Vepkhia Chocheli is the author of works devoted to the macroeconomic problems of the Post-Communist countries. From 1994 to 2000 he was a Director of the Macroeconomic Department in the Ministry of Economy of Georgia.