On the Non-Economic Policy and the Post-Communist Experience of Georgia

Abstract

Economic policy is an integral part of public policy and is to be based on the accomplishments of economics. If an economic policy is not only far from economics, but in certain cases contradicts its basic postulates and rules, then such an economic policy carried out by the government represents a “non-economic policy.” Among the causes that lead to “non-economic policies,” first and foremost, is the unprofessional economic team of the government and false opinions entrenched in economics or economics lagging behind the processes unfolding in the economy. The present article offers the typology of a non-economic policy. The experience of post-Communist Georgia illustrates a number of clear examples when the governments in the country implemented non-economic policies which quite negatively affected the development of the country. As a result of developing a successful economic policy such economic reforms were carried out which allowed the country to overcome hyperinflation in the 1990s and macroeconomic stability was achieved. After carrying out currency reform, the national currency, the lari, was introduced. The reforms were fully based on economics. The main challenge is to approximate the economic policy to economics which can be achieved only in the case when economic policy-makers are highly skilled economists.

Keywords: economic policy, economics, economic reforms, economists, international financial institutions

JEL Classification: A11, O50, P11, P16, P21