Dr. Natia Surmanidze's article, a guest lecturer at the "University of Georgia" School of Business and Administrative Sciences, entitled "Privatization in Georgia and its Challenges" was published in the July issue of the "Journal of Science and Technology". The author himself will answer our questions about the scientific article.

1.         What effect can the result of this research have on human existence?

The privatization process became a powerful tool for forming the middle class after gaining independence in the Baltic countries. Unfortunately, we did not achieve the same effects in Georgia and we have a reality where social problems are very acute. It is important to understand that the state should create an environment that will contribute to the development of entrepreneurship, and should ensure a healthy institutional arrangement. The state cannot and cannot be an entrepreneur, so it does not need its own companies. The truth of my words is confirmed by the financial reports of Georgian state enterprises. With our taxes, we maintain enterprises that are, simply put, unprofitable, and on the other hand we have acute social problems. The research presents several ideas, and everyone is still moving towards the fact that it is necessary to move these companies to the private sector, the free market should decide their future fate, not the political will.

2.         How exactly is the subject of research related to these issues?

The subject of research is the state-owned or mixed-owned enterprises in the process of privatization, which are necessary to transfer to private ownership in order to remove them from the budget, which is profitable and should be paid in the budget on the contrary, which is unprofitable and should not exist at all. Here it is possible to oppose the increase in unemployment, although, as a state employer, this automatically means an increase in bureaucracy directly or indirectly, which is automatically ineffective. Reforms are always painful, especially radical, but at this time an intelligent society focuses on a successful result. If we look at the history of Georgia's reforms, we really have experience of this.

3.         How can students get involved in this field of research and why would you advise them to do so?

Students are future professionals who should be able to make healthy and effective decisions in their field of activity. In my opinion, the issues of institutional arrangement, especially in the background of modern Georgia, when we have so many problems, should definitely deserve the attention of students and orientation on the ways of correction.

4.         What were the main challenges and skills associated with this research?

The main challenge was to raise issues that everyone is silent about, for example, the state security service, which is in completely unhealthy competition with private security services, and this type of privilege (related to the right to carry weapons) is completely unacceptable for the free market, although in Georgia it is facilitated by the state.

5.         Why are you interested in researching this issue?

I became interested in the issue because as I mentioned above, state enterprises are entering into unhealthy competition with the private sector. We constantly hear on television how many people have the worst social conditions, and at this time no one talks about the important "institutional traps" of the economy, which removes us from the trajectory of healthy development.

7.         What was the response to this particular work?

Several researchers related to the work contacted me, mainly from India, and also organized a meeting in an informal format, where we talked about the problems and experiences of our countries.