GEORGIA AND MOLDOVA: ECONOMIC ASPECTS OF DEMOCRATIC STATE DUILDING

Abstract

Democratic state building is the multidimensional process and its economic pillar is the most fundamental one. The objective of the work is comparison of economic transformation of Georgia and Moldova. The paper stresses relationship of economic transformation and democratic state building in both countries on the bases of the Bertelsmann Index (BTI). The comparison revealed that both countries have almost similar positions in market transformation. Also, private property and organization of market and competition (subindexes of the market development) are in more high correlation with democratic transformation in these countries than other pillars.The author offers a theoretical approach to evaluate the success of economic transformation in EaP countries on the basis of correlation of BTI and the European Integration Index . There is an attempt in the paper to find certain correlation between the integration level of Georgia and Moldova into the EU and BTI economic transformation indicators of these countries. On the current stage of the study revealed that the management and approximation pillars of EaP Index have higher significance for successful political and economic transformation processes, than sub index - linkage.