ეკონომიკური პროფილი (Aug 2022)

FOOD SECURITY AS THE BASIS OF NATIONAL SECURITY

  • Paata Koguashvili,
  • Joseph Archvadze,
  • Nikoloz Chikhladze

DOI
https://doi.org/10.52244/ep.2022.23.02
Journal volume & issue
Vol. 17, no. 1(23)
pp. 109 – 125

Abstract

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One of the central problems of an independent state is the provision of its food security, that is, its ability to provide citizens with basic food products, through proper production practices and import operations. It may safely be said that for every country, more so in the relatively newly independent States, it is an even existential challenge. Despite a full understanding of the problem, its definitive and comprehensive solution is complicated by a trivial problem - limited resources, which is why the extent to which subsidy is provided by the developed countries (per unit of output, per employee or agricultural land), is far beyond the capacity of the developing countries and countries with economies in transition (that would also include Georgia). In such countries, a stereotype picture emerges: food demand remains inelastic, but low purchasing power among a large segment of the population, the weak economy and the limited capacities of providing subsidies artificially lower demand for food. In post-socialist countries with the economies in transition the situation is aggravated by the violation of the social (in fact, political) subsidy system, which has substantially changed the proportions between the volumes of consumed food products. In Georgia, almost 2/3 of the total calories consumed by the population come from food products of plant origin, which is 1.5 times higher than the recommended proportions. The main reason is that the cost of every 1000 kcal from products of plant origin consumed by the population is about 3-4 times cheaper than the cost of the same number of calories from products of animal origin. As a result, the cost of the food basket is formally reduced, a formal basis is created for reducing the subsistence minimum, but at the same time, the proportions are broken between the volumes of the consumption of proteins, fats, carbohydrates by members of society. The common pattern is to remain in force: the high correlation of food security with the level of economic development of the State, or with the macroeconomic situation. In this regard, despite the fact that the dynamics of output and value added created in the agricultural sector in recent years is no longer inferior to the dynamics of national product, but already is slightly higher (in 2020, compared to 2012, the scale of output in the agricultural sector increased by 24.6%, while in other sectors of the national economy (23.3%), the situation in this sector of the economy, especially in terms of food security, is still clearly unsatisfactory. In order to meet citizens food needs, it becomes necessary to import vast quantities of food products, whose average annual volume exceeded $1.2 billion in 2011-2020. Along with the objective circumstances impeding food security (primarily weakness of the economy), the process is also negatively affected by factors such as the insufficient political will of the ruling powers and the lack of competences of decision makers, and consequently, low levels of their productivity. Georgia, just like other civilized nations, needs to give priority attention to the agricultural sector. Priorities in this area can be in two directions: first, the preservation of the village as a territorial and social unit (this task also includes the protection of cultural and wild landscapes); second, the establishment of an agricultural sectoral structure to ensure food security. Food security is a State priority. The only entity that can solve this problem is the State itself. Achieving success on this issue in many ways depends on the effectiveness of public administration of the State as an economic entity, that is integrated with the improvement of agricultural production, its transformation into a high-tech sector and large-scale socio-economic, cultural and technical development of the rural population. We still import more than 70% of the food we need. If we want to improve the trade balance by 2027, we must significantly increase agricultural production in order to reduce foreign exchange spent on food imports.

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