Concept of Transformation of the Economic System of the Republic of South Ossetia: Main Directions of Implementatio

Abstract

The article examines the problems of the economy of the Republic of South Ossetia and proposes the main directions for implementing the development concept in order to intensify the growth rate of the economy; increase its efficiency and improve all components of the social sphere; the key tasks of further political activity of the Republic of South Ossetia were identified, and the directions of structural transformations of the Republic’s economy were analyzed. The collapse of the USSR contributed to the appearance on the political map of the world of a number of unrecognized republics, the formation of which was a consequence of the clash of interests of major geopolitical entities. Over time, these republics contributed not only to changes in the economies of the main initiators of their creation, but also changed themselves, thereby undermining the existing order for years, destroying the structure and forms of ownership that had been established for decades, contributing to the decline in production. The states of the post-Soviet period that were newly formed after military conflicts have fewer opportunities both for the development of human capital and for expanding foreign economic relations and actively attracting investments. Taking this, into account new tools and mechanisms are needed to effectively stabilize the socio-economic situation of these regions and a gradual transition to self-development. The formation of unrecognized or partially recognized territories contributes to the emergence of rather complex problems that require their deep understanding, appropriate study and implementation of very flexible national and economic policies; in any other case, these territories are very difficult to preserve, which was confirmed by the events in Nagorno-Karabakh in September 2023, as a result of which this state formation ceased to exist, which caused a deep resonance among the entire world community. In this study we will consider in more detail the main ways of restoration and planned development of the Republic of South Ossetia, as well as the main directions of the concept of transformation of the economic system of the Republic of South Ossetia.