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Revolution in Business?


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#1 Tariel Zivzivadze

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დაწერილია 26 November, 2003 - 20:18

How do you think, will the revolution in government couse any changes in business?

From my point if Saakashvili will do what he was promising to do before the elections (f.e. to free small business from taxes for 2 years and other stuff as well) that will cause many changes, which will evensually create the possibilities as well as the threats.

What's your idea about thatტ
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#2 David Birman

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დაწერილია 26 November, 2003 - 22:54

M. Saakashvili is not the main economical ideologist of the future government. L. Papava, former economy minister is discussed to be the main player in economic team. Taking this into consideration, I think that Georgia will not see great, or say, dramatic changes in economic policy.

#3 Tariel Zivzivadze

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დაწერილია 27 November, 2003 - 00:08

Probably there will not be any changes on the level of macroeconomic policy, but the idea was to change an attitude on the micro level.

If the tax code will change the way Saakashvili was promising, that will be a big HIT. Can you imagine a small business without tax for 2 years/

I can't. But there should be some approach of doing this without hurting the tax base.

Do you remember the controversies about the minimal wage rate? God save us from implementing that now. But we can be calm, as all what was done, was done for the political purposes. As all in the new government understand the burden of the economic shock we need to undergo because of this revolution, hope no one will remember that.
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#4 David Birman

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დაწერილია 27 November, 2003 - 01:03

I think we must state the problem: the lower taxes for SME, the higher their retained earnings from not paying this taxes! But... problem, that was stated before elections was not only amount of money payed, but also difficulty of procedure of tax control. So, SME-s really need easy-to-use tax code, with say, one or two, compound taxes... this will be the first step, that will generate bigger flow, partially by lowering corupt part. Only after that, SME-s need lowering tax rate, because they will be avoided of tax control problems...

#5 Tariel Zivzivadze

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დაწერილია 27 November, 2003 - 08:52

Here I see the following stuff:

1. Low tax
2. Tax procedures
3. Black Economy

My point is: Lower the tax for sme, lower the budget income from sme for certan period, higher the sme development in the short and long run, more businesses will join legal economy

This process should be accompanied with:
1. Simplifying the tax code and tax pay procedures
2. Legalizing the sme
3. Promoting rule of law in tax paying

Does it look tough to do? YEP!
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#6 Amy Denman

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დაწერილია 01 December, 2003 - 16:12

testing to see how this works.

#7 Tariel Zivzivadze

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დაწერილია 01 December, 2003 - 23:55

Amy Denman
Of course it works (from the both meenings)
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#8 Tamara Bokuchava

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დაწერილია 03 December, 2003 - 11:32

If Saakashvili decides to have staff government again with old timers, forget about GBCC. Georgia needs new energetic and western educated people to make fundamental changes in country’s economy and business environment. I do not see that so far

#9 Tariel Zivzivadze

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დაწერილია 04 December, 2003 - 00:40

Tamara Bokuchava
You have mentioned about

ციტატა

old timers

I agree that they are a problem, but they are here, they live here.

ციტატა

Georgia needs new energetic and western educated people to make fundamental changes in country’s economy and business environment.

Agree.

ციტატა

I do not see that so far

Wait little bit. We need to work hard to make that happen.
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#10 Dear Guest, You need to register...George Kukulava_*

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დაწერილია 10 December, 2003 - 09:38

Dear Friends,

I believe the change in the Government will affect business in Georgia (at least, this what we fought for while standing for 7-8 hours a day in front of the Chancellery or the Parliament :) )
I would now like to rebate some illusions that have existed in the Shevardnadze era and will continue to exist, hopefully, for not more than 6 months:

Myth no. 1
Everyone in Georgia is a criminal aspiring to steal everything from any place and this is the main reason why the resources in the budgetary tax part cannot be mobilized.

Answer: In Georgia, there are two types of businesses; the first have a strong "roof" and easily avoid taxes. The second, without a "roof", are trying to find one. A major cause for that is a tax rate that is impossible for any business to keep up. Therefore, not the Georgian people but the Georgian tax legislation is bad and unclear.

Myth no. 2
Georgia made crucial steps to simplify administrative barriers for businesses.

Answer: Administrative barriers whether formal or informal remain 90% the same.

Myth no. 3
Successful businesses in Georgia are trying to improve their performance.

Answer: Successful companies with a trend to grow into large businesses end up in the Parliament and deceive people as if they were attending the Parliament sessions for the good of the people.

Myth no. 4
Georgian firms are interested in having a code of conduct because they understand what it is

Answer: Large Georgian firms are interested in having a code of conduct because they know it creates a strong image at high national and international levels + a purely Georgian factor: it is "prestigious". Small companies are concerned with their daily business and worry about how to defend themselves from various control bodies.

#11 Tariel Zivzivadze

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დაწერილია 17 December, 2003 - 17:58

ციტატა

Large Georgian firms are interested in having a code of conduct because they know it creates a strong image at high national and international levels + a purely Georgian factor: it is "prestigious".


I totally agree with George the Mythologist :) that the main incentive for the Georgian businesses to be ethical is the prestige and their image in the eyes of the western partners and high-profile community. That, in my opinion should be the starting point when discussing the issue of why would Georgian managers want to introduce a business code of conduct in their companies. And I think that the revolution has played a very inmportant role in this connection at least 1) because the whole world is now focused on Georgia as it has probably never done before and 2) as quoted above, those businesses thus get great incentives to conform to the western standards so they can be accepted in that high-profile society.

Besides, as awards, benefits, etc. (but not punishment - we said, didn't we, that ethics is a free-will initiative) is one means, probably the strongest, to encourage ethics in Georgian companies, I believe it is the international organizations in Georgia and eventually overseas that should constitute and actually award the most ethical Georgian businesses vs Georgian Government, even post-revolutionary, which has yet to gain the moral right to award anybody for ethical conduct...
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#12 Nina Kiknadze

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დაწერილია 17 December, 2003 - 19:04

I think, that successful companies should be managed by successful bussinessmen, successful goverment will be held by successful politics. So everithing depends on us .You have already seen it at the samle of the Rose Revolution . If somebody tries to promote Bussines Code in Georgia whery well, let's do it.

#13 Nina Kiknadze

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დაწერილია 17 December, 2003 - 19:16

What about the Bussiness Code ethical aspect I think it should to be developed by people from various levels of bussiness, phsycologist. Very hardfull work!!!!

#14 Tariel Zivzivadze

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დაწერილია 18 December, 2003 - 14:38

Dear Nina Kiknadze

In the middle of January we will have a draft GBCC, at the end of April we will have the final one. So let's promote it all the way. For now it would be a great think if each participant of the web conference invites here at least one colleague to involve him or her in the discussions.

ციტატა

What about the Bussiness Code ethical aspect I think it should to be developed by people from various levels of bussiness, phsycologist. Very hardfull work!!!!

We need to involve the professionals from different fields. By web conferenceing we try to do exactly that.
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#15 Dear Guest, You need to register...Lella Shatirishvili_*

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დაწერილია 19 December, 2003 - 18:45

The hopes and expectations brought together with the recent political changes deem to be faded shortly if the society and businesses plan to await for the improvements and further developments to happen on its own. Instead of relying on "smart" decisions solely made by the government the businesses shall actively get involved in legislative drafting process though the business associations and bring their voices to the Parliament.



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