ACTUAL ISSUES OF ASSESSMENT OF THE INVESTMENT ENVIRONMENT
Authors:   Batumi Shota Rustaveli State University, Tsinaridze Ramin , Abuselidze George ,   Batumi Shota Rustaveli State University, Beridze Lasha ,   St.Tbel Abuserisdze  University
Published: December 2023

One of the most important factors of the sustainable and safe development of the national economy is the availability of investment resources in the economy, the establishment of a favorable climate for attracting foreign investments and the mechanisms of their effective use. The practice of countries with developing economies shows that investments should play the most important role in ensuring acceptable parameters of economic development and economic growth, that's why investments Countries are considered as one of the factors of economic growth.	Investment environment (climate), as an economic category, represents a wide system of economic-geographic, socio-economic, political-legal, geopolitical-ecological relations. It is formed by the influence of closely related processes and events at the macro, meso or micro level of management and generates strong investment motives.	Foreign direct investment in Georgia and its ratio to GDP are often used as a measure of the country's investment climate and competitiveness. According to Blomstrom, developing countries are able to export competitive products to the world market through direct foreign investments. Investments are closely related to human development, directly ensuring the economic growth and progress of mankind.	According to world experience, many countries in transition have achieved economic strength as a result of increased investment. The modernization of the national economy, the growth of investments depends on the creation of a favorable, rational investment environment, which means a combination of factors that give companies opportunities, incentives to expand the fields of activity, the scale of business through the advancement of capital. Foreign capital also plays an important role for Georgia, which is the main means of introducing new technologies, using modern management methods and implementing local innovative projects. Foreign investment can also become a motivating factor for local investment and promote healthy competition and the absence of monopoly. The best, rational investment environment leads to attracting large amounts of investment. On the other hand, investments play the role of a catalyst for economic growth and development, it is especially effective in developing countries.	Acceptable level of economic growth, development and achieved micro- and macro-economic conditions are necessary conditions for investment activity. All this contributes to raising the competitiveness of domestic goods producers and, ultimately, the standard of living of the population.	Complex ratings of investment attractiveness of world countries are periodically published by the leading economic magazines: "Euromoney", "Fortune", of which "Euromoney" is considered the most popular. Twice a year (in March and September), the mentioned magazine informs the readers of the investment risk and reliability rating of the countries of the world with a 10-point system – by the expert reports and analytical results. Nine groups of indicators are used as analytical indicators: the efficiency of the economy, the level of political risk, the state of debt service, creditworthiness, the availability of bank lending, the availability of short-term finance, the availability of long-term loan capital, the probability of occurrence of force majeure circumstances.	In terms of perfecting the investment environment assessment methodology, the USA and Japan have noteworthy practices. In order to evaluate the investment environment in the US, such factors as political views and environmental movements formed in individual states are also used. On the basis of the factors affecting the investment environment, they publish the "annual statistical map" by individual states, which contains four generalized indicators. These indicators are: economic effectiveness of investments, business capacity, and development potential of the territory and the main components of tax policy. Based on the overall assessment of various rating and sovereign companies discussed in the paper, the analysis of the past period of ongoing reforms in Georgia shows that today the formation of a favorable investment environment is again and again an urgent task, and the changes made in the implementation of the state investment policy can be evaluated as a positive event that expresses the realization of the market principles of investments in practice, but it needs improvement and refinement. The various evaluations examined in the article also reveal common trends characterized by the weakness of the legal system (including the judiciary) and innovation.	We think that in the process of stimulating foreign direct investments in Georgia, priority should be given not to any form of stimulation, but to the formation of a favorable investment environment in the country, which depends on many social, economic and political factors. Moreover, during the analysis of the prospects of attracting foreign investments, it is necessary to evaluate the investment opportunities of domestic savers and their role in the investment process. The policy towards foreign investors is one of the main components of the state investment policy. The strong connection between measures to stimulate domestic investments and the attraction of foreign investments, the mutual influence of these two sources of economy and finance determines the feasibility of their complex study. Regulating investment relations in Georgia, creating a favorable investment environment, developing the right system for evaluating investment activities, attracting foreign investments and making effective investments, proper functioning of the investment market, creating investment banks and researching other relevant issues will be a kind of forward step on the way to overcoming the problems in investment activities. .	The functioning of the state's economic complex is completely impossible without investments. Investments contribute to the realization of industrial, innovative and social projects, participate in the process of increasing the volume of production and increasing the efficiency of public production. In the conditions of state crisis, investments represent the most important means of structural transformation of social and production potential and its subordination to the market.