The Strategic Approach to the International Competitiveness Under Conditions of Globalization

Globalization and liberalization change the world economic environment, the competition mechanism and, accordingly, strategic approaches to the international competitiveness. In recent years the role of human capital and intangible assets in maintaining competitiveness has increased, while the role of tangible assets has decreased. Thus it is necessary to take into account, that in the old economy marginal costs grew together with the increase in volume of production, while in the new economy this is vice versa – the contribution of intangible assets rises and marginal costs reduce. In the global economy the strategic idea of increase in competitiveness includes transition to innovative type of development of the economy. The adequate estimation of quickly changing conditions of market interrelations of all subjects of the global market, increase in management efficiency of the advantages and research of the new factors influencing competitiveness have become important. It is necessary to take into consideration, that at the present stage it is possible to compensate economic weakness of the country by the geopolitical factor and dynamic and active policy. In addition, while analyzing international competitiveness it should be taken into consideration that Politically influential and economically powerful states due to their positions gain so called development rent. The less developed countries pay backwardness rent. The quantitative evaluation of the development and backwardness rents and ascertainment of their role in the countries’ competitiveness are extremely urgent. Georgia is a small country with little natural resources, though the country possesses sufficient potential to maintain its competitiveness. First, as the country of the ancient civilization, it has traditional competitive characteristics created during the whole historical period, cultural, economic, political properties; second, the level of literacy of the population is high and the third is geopolitical factor. These factors combined with the improved state policy, rationalization of government structures, perfection of institutions, etc., will secure sustainable growth, which in its turn will provide competitiveness of the country. Under modern conditions economic growth takes place, where intellectual level and innovative abilities of businessmen are high. In this regard it is necessary to focus on effective control of the intellectual capital and improvement of the educational system. This work concerns with the level of educational of the Georgian population and provides practical recommendations forthe use of human capital, which will promote further development of this field both on a local and a global scale. It is noted that Georgia is rich in human capital and it can become one of the leader states of the new economy on condition that its potential is used effectively.