Economic Policy to Promote Industrial Development in Georgia

In connection with the transition to a market economy, industrial industry inherited from Soviet economy was almost completely dismantled. 1990-1994, compared era, production of products decreased fivefold and number jobs fourfold (National Statistical Service Georgia, 1995). Industrial became uncompetitive in both domestic foreign markets. The machines, devices, tools, electric vehicles, light partly food stopped. Accordingly, level fell, specific share total product decreased, ties were dissolved. All this led deindustrialization country. 1999, Ministry Industry Georgia developed: Concept “Strategic Programs for Development Enterprises 2000-2005” order solve extremely important tasks facing period their further development. However, they did not have major impact on revitalization sector. years 2003-2012, decreased. By 2020, sales increased significantly, but pandemic had serious indicators. 2022, by 2.6 times output 2.9 times. employees has slightly recent years; there no changes during pandemic. Wages 1.9x 2022 2014, slight increase post-pandemic era. largest sub-sector is manufacturing, which previous (2018 - 18.4%, 2019 2020 20%). mining also 1.2%, 1.4%, 1.9%). This followed supply electricity, gas, steam air conditioning, characterized downward trend 2.3%, 2.1%, 2.1%). water decreasing trend; Sewage, waste management decontamination works 0.7%, 0.6%) (Georgian National Statistics Service, 2021). economic policy state plays an essential role development industry. Institutes been established since 2012, aim was, among other things, promote various branches To date, Government implemented programs direction. Specifically, Produce Partnership Fund, Group, Innovation Technology Agency Startup Georgia. After implementation support sector, are some positive results terms employment business At current stage development, country should choose model aimed at technological maximum growth export potential. An be developed country, will allow us apply innovative approaches priority It necessary use such instruments as: innovations technologies, education skills, orientation trade, mechanism industries, competitiveness protection competition. Based identified challenges area ??industry, recommendations active short long term periods developed. Namely: government's development; paying special attention processing sectors that potential produce; supporting scientific fields; Determination certain benefits those investors who invest money production; State partnership private manifested fight against bureaucracy, corruption crime, creating favorable conditions entrepreneurs; Coordination between science Much paid basic research, does require purely commercial returns term, become real productive force; Particular importance attached formation entrepreneurial ecosystem contribute expansion export-oriented Overcoming entry barriers Keywords: Industry, sectoral structure industry, export-import products, institutions implementing policy. JEL Codes: L16, L52, L53, O25