FOREIGN DIRECT INVESTMENTS IN THE POST-SOVIET PERIOD: THE CASE OF GEORGIA

In the former Soviet System, economy was financed by state. In the new independent states formed after the collapse of the USSR at the beginnings of the 1990s, traditional financing system was impossible to keep, because post-Soviet countries began to build a market economy, though their methods were different. Large volume of foreign investments were attracted to those post-Soviet countries which were richer in energy resources. In this view, Georgia faced problems. After restoration of independence Georgia was in dire need of foreign investments which could be attracted only in case of successful implementation of reforms. And it happened only after the country addopted new currency, implemented nation-wide privatization, price liberalization, reorganization of enterprises and institutional reforms, in general. In the last years of the development, foreign direct investment inflows increased significantly which was a result of tax system liberalization, removal of pressure on business from the state's side and relatively stable situation in the country. (Atanelishvili, 2011, 2013, 2016; Atanelishvili, Silagadze, N., 2016; Basilia, Silagadze, Chikvaidze, 2001; Zubiashvili and Silagadze, L., 2016; Silagadze, A., 2010-2014).