The market economy model has practically proven to be the most efficient and result-oriented structure. It is a socio-economic system based entirely on the values of private property. The basic principle of a market economy is the existence of a market system based on private property and commodity relations, in which the main conditions are universal competition, a free market and the regulation of supply and demand.
What is the importance of property privatization and what is the role of private property in the development of the economy?
The productivity of any economic model is determined by the form of ownership of the means of production, which in itself affects social outcomes, the involvement of society in the general aspects of the economy. Historically, entrepreneurial activity was, initially, a unity of public, collective labor, which was also a natural fact for the early period, since man had neither the right to own resources separately nor the willingness to dispose of them. Forms of property ownership changed at different times. And as a result of the development of the productive forces and the deepening of the social division of labor, a new phase arose, which meant the disintegration of the community and the separate disposition of property. As a result, man developed a production resource in which he was given the opportunity to set up more farms than he needed, which would bring additional benefits.
As a result, man developed a production resource in which he was given the opportunity to set up more farms than he needed, which would bring additional benefits.
The role of private property is very important at the personal and state level. If people will have private property and wealth, it will not only be a personal benefit, the data will definitely have a positive impact on the economic development of the country.
It turns out that the nationalization of property and the transfer of ownership to people is the best model for the prosperity of the economy, as exemplified by the examples of many countries. Years ago, Georgia also faced the need for a new system of economy, which began a gradual transition from the existing, command-and-control system to a market economy model, the implementation of which required the satisfaction of the main condition – the privatization of property.
Privatization is the process by which state property must be removed from the state governance structure and transferred to independent production, in the hands of private owners. Thus, we get that each person will be actively involved in entrepreneurial activities, each of them will be involved in the economic cycle, which in itself implies land acquisition and economic function, state-owned enterprises, which at this time only have the status of old buildings, will acquire and operate. Thus, the resource that the state has will be actively loaded and will no longer be unused.
It should be noted that the transition to a market economy system and privatization is a complex process that requires the right strategic vision and policies. Necessary works are still being actively carried out in Georgia to develop the productive force. The National Agency for State Property of the Ministry of Economy and Sustainable Development is actively pursuing the accelerated privatization process and offering new facilities to the private sector in addition to the old ones.
“Everything will find its owner. The property will be transferred to the private sector so that our economy can develop faster,” said Natia Turnava, Minister of Economy and Sustainable Development.
Editor’s blog
Source:https://geoeconomics.ge/, https://businessfeed.ge/, https://bm.ge/