The Mechanisms of State Management in Agricultural Sector of Georgia

Abstract

The paper studies the current situation in the agricultural sector of Georgia, its impact on the country’s economy and possibilities of development. Agriculture is a traditional sector and it has always played an important role in economic and social development of Georgia. The country has favorable conditions for the development of agricultural sector. Despite urbanization processes in recent years, about half of Georgian population still lives in rural areas and most of them are employed or self-employed in this sector. Therefore, the level of development of agriculture in the country impacts the lives of significant share of the country’s population. Agriculture has been paid more attention by the government of Georgia in recent years. In particular, various programs and projects have been initiated and implemented in this direction. These programs aim at encouraging the development of various agricultural activities as well as development of processing industry, which will lead to increasing production and export of Georgian agricultural products. However, currently, development of agricultural sector in Georgia significantly lags behind other sectors of the economy mainly due to insufficient financing of this sector, lack of access to relevant technologies and lack of development of processing industry for raw agricultural materials. Therefore, a number of measures, like scientific-research activities, increasing the awareness of farmers, introduction of technological novelties and improvement of agro-insurance system that will enhance the competitiveness of the sector still need to be implemented.