by Georgy Kalatozishvili, Tbilisi. Exclusively for VK
Georgia plans two parades for the Independence Day. Kutaisi, the home city of the parliament's headquarters, has hosted the parade for the first time. At the same time, Tbilisi is holding an "industrial parade", an exhibition of Georgian national products. Rustaveli Avenue was closed two days ahead of the parade. The place had some of the most significant political events happening in the last 25 years. Tents and stands were set to demonstrate products under the "made in Georgia" label. Despite economic recession, Georgia is a manufacturer of a lot of useful products, ranging from electric trains and washing machines to cigars and orange juice.
Borzhomi Mineral Water, tea and wine are common in Georgia. Tbilisi produces computers, trucks, two-seat planes, hovercraft and other machines. Textiles, furniture, granite, tiles, construction materials, fiber optic cables. The most amazing products were Didgori-1 and Didgori-2 armored cars, which President Saakashvili calls more advanced than Russian analogues. Other vehicles such as the Lazika armored car, a valley fire system, drone, mortars, a pistol and an assault rifle resembling an M-16 made in Georgia were presented.
However, the old generation still remembers the All-Union Exhibition of Achievements of National Economy (VDNKh) of the Soviet Era. The huge country could not produce some of even the simplest products. The Tbilisi exhibition makes a difference. Manufacturers were proud of their products, but the problem is the transmission from the Soviet system that many developing states face. "The main problem is not production of quality products, but reduction of prices to fulfill demands at the market and compete with imports", a company producing washing machines told VK. Other manufacturers have a similar point of view. They all agree that the development of production is vital, but entering the world markets is impossible without state support. Many manufacturers lost hope after realizing that they have no chance of compete with imports even at their own market. Importers reduced prices to prevent local manufacturers from growing. As a WTO member, Georgia will be unable to limit foreign manufacturers.
It is a trap for post-Soviet states, including Georgia: high quality is essential, but without organized production reducing prices, with "naive management" and poor promotion, even the highest-quality product cannot reach its consumers.
Tax reduction (Georgia has some of the lowest taxes) is important, but other aspects of the "culture of production" is only getting started. Despite beauty and people's joy at the exhibition, the "parade of national products" failed to convince specialists understanding the complexity of modern production. But the fact that Georgia has made its first notable step in the last years is doubtless.
