AEC, KI a INESS v spolupráci s ďalšími partnermi organizovali medzinárodnú konferenciu v rámci Free Market Road Show 2013 na tému Šetriť alebo nešetriť: Zachránia Európu len úsporné opatrenia?, ktorá sa konala dňa 7. júna 2013 v Bratislave. Ďalšie súvisiace informácie nájdete na www.konzervativizmus.sk AEC, in cooperation with the Conservative Institute and INESS, and in association with international partners organized the Free Market Road Show 2013 in Bratislava on June 7, 2013. More information at www.institute.sk.

1. Collectivist Parasitization against
Responsibilities
Gia Jandieri
New Economic School – Georgia
Free Market Road Show
Bratislava
June 7, 2013

2. Bastiat’s Wisdom
• State is the fiction by which everybody tries to
live at the expense of others.
• This is now applied to the nations and looks
almost the same
– Now many nations try to use other nations
resources and capacities for their benefits,

3. How it works for individuals
• It is the nature of a human to try to reach results
with easiest way
• And if somebody offers free resource why not to
take it
• Because there is another nature of a human not
to offer anything for free unless forced to do so
• Another natural behavior of a human is to look
for such easy ways and
• if seeing others aren’t careful with using
resources – just taking them
• And seeing somebody used this free chance and
nothing very bad happened – they decide to
follow and not to lose the chance

4. Is there a limitation for this?
• It is obvious there is a limit of economic,
financial, at last human capacities
• Even in a family with many children energy and
health of parents are permanently decreasing
• A business will be punished by competitors if
employing some working and some not working
employees
• Economy cannot survive if one big part is just
consuming the achievements of another, at least
for competition reasons

5. Personal responsibility
• Individuals prefer other people to be responsible
• Even though in most of the cases they
understand if they did something wrong way this
is their not others’ fault
• But this is correct if not propaganda telling them
it’s still others’ fault
• And they don’t believe but accept: Collectivist
Parasitism (subsidies, assistance)
• If they are told someone is responsible instead
they like this

6. How it works – an example
• An Individual always tries to be out of special
responsibilities
• He accepts those responsibilities from where
he expects some gains
• And if he is told to accept some extra rules he
expects some compensation:
– Maybe privileges
– Maybe sharing responsibilities

7. What about the nation
• A nation is a collectively responsible – or it’s
nobody’s fault - union
• Nations like individuals – accept if offered - free
resources, free ride at the expense of others
• This can be
– financial resources or
– gains from
• international trade,
• monetary and
• fiscal policies

8. Like individuals
• Governments try to avoid responsibilities but
simultaneously propagating of about taking
full responsibilities
• Involving whole population in supporting the
policies of
– protectionism of different type,
– accepting debts,
– policies allowing people living at the expense of
others
– Policies shifting the responsibilities away from
individuals

9. Harmonization and Centralization
• The Benefits
–Better policies are adopted easier
–Easier to cooperate n some fields
–Some Compliance costs are lower

10. Harmonization and Centralization
• The Costs
–National Governments are losing their
responsibilities
–De-motivating of
–Consumers are losing their choices
–Lack of competition brings higher prices and
lower qualities
–Black markets are widening

11. International Donors
• In one hand:
– They give access to resources in important times
– They also try to put national governments in some
discipline frames
• But in the other hand
– They de-motivate national governments to look for
better policies, accounting to the public
– They give a relief to national governments to shift
their responsibilities
– They give chances to live at the expense of future
generations

12. Georgia and IMF
• IMF started working with Georgia in 1990s
• It made several attempts to support Georgia’s
economy with loans and strengthening of
monetary reserves and policies.
• It also “supported” Georgia with advices and
consultancy, in fact mostly looking like orders
– “Tax Code of Taxastan”

13. 2008
• May. IMF Office was closed down. Local policy
was best for growth and there was no need
for external injections.
• War in August.
• Immediately offer of $750m

14. Budgetary payments for Foreign Public Debt
(Ministry of Finance of Georgia)

15. Growth of GDP
(World Bank, 2005 International $)

16. Budgetary Revenues (MOF Georgia)

17. What is Now
• IMF is looking for new opportunities, stated that:
– Georgia needs Russian market
– Georgia’s new policy to invest in agrarian sector is a
solution
What are the ideas behind?
World Bank works with the new government on
Pensions… what for? To make our system as bad as
others?

18. DCFTA with EU
• Georgia asked for FTA
• EU commission offered deep and
comprehensive
• Full EU regulatory frame (aquis) to be
implemented
• BUT:
–This can slow down the growth by 3-5 %
–Government will then ask for
compensation…

19. Georgia is a Champion
• Free movement of goods
• Freedom of movement for workers
• Free movement of capital
• Freedom of establishment and
Freedom to provide services
In all these sectors Georgia is a leader.

20. Economic Liberty Act
• Prohibition of increase of tax rates or
implementation of new taxes
• No more than 30% of government
expenditures
• No more than 60% of public debt
• No more than 3% of public budget deficit

21. General System of Preferences with
the US and Labor Unions
• Georgia being a member of the WTO from
2000
• Has had GSP with the US from 2004
• Georgia is one of the freest trade nations –
total customs tax collections is under 0.2 % of
GDP
• But Unions didn’t like our free labor
environment and asked USTR to stop GGSP

22. Trade Policy of Georgia

23. After Criticisms and Local Hesitation
• Georgia has new government :
– which already trying to destroy all the
achievements of reforms
– looking for assistance and loans

24. Conclusion
• Stop propaganda of parasitism
• Decentralization of responsibilities
• DON’T GREEK US!

25. Many Thanks!
• gjandieri@yahoo.com
• http://gjandieri.blogspot.com