sign in sign up
<<
Home , Choloki, Scottish independence, Separatism

Sch J Appl Sci Res 2019 Inno Scholar Journal of Applied Sciences Volume 2: 5 and Research

Methodology of Detection of the Economic

Zurab Garakanidze1* 1PhD (Economics), Professor, International, University, Tbilisi, Nata Garakanidze2 2PhD Candidate, Tbilisi Javakhishvili State University, Tbilisi, Georgia

Abstract Article Information

The most of the experts believe that deepening of crisis Article Type: Review will reinforce separatism in Europe and . Serious threat can Article Number: SJASR231 be faced not only by and the , but the integrity Received Date: 29 March, 2019 of many European . Therefore, it is necessary to create the Accepted Date: 10 April, 2019 mechanism, which will be able to send earlier notice of so-called poor Published Date: 17 April, 2019 and rich regions separatism. Particularly this type of mechanism will be discussed in this article. *Corresponding author: Zurab Garakanidze, Professor, International, Black Sea University, Tbilisi, Georgia. Email: Keywords: Fiscal Separatism, Threat, Economic . z_gara(at)yahoo.com The Essence of Fiscal Separatism According to the current data, there are from 20 to 25 active Citation: Garakanidze Z, Garakanidze N (2019) Methodology separatism movements on the European continent. Among them the of Detection of the Economic Separatism. Sch J Appl Sci Res Vol: 2, Issu: 5 (23-31). demand for part of the rebel regions is the , while the other

Copyright: © 2019 Garakanidze Z. This is an open-access partHowever, claims fiscal it should rights– be rememberedextension of economic that in the independence90s of the last centuries, [1]. article distributed under the terms of the Creative Commons Europe, which is under threat of separatism today, did not fully resist Attribution License, which permits unrestricted use, the desintegration of the former , and Georgia. distribution, and reproduction in any medium, provided the By active or passive supporters of the separatist projects implemented original author and source are credited. under self-determination slogan they promoted the introduction of precedents extremely dangerous for and their future. So, the Western Europeans and Russians will soon reap what they have sown in the , Middle East and the Balkans in the 1990s. Secessionist movements of the regions, whether it is in Georgia, historic, political, cultural and social factors. However, most researchers believeSpain or that the they UK, all at have first one glance, common have cause different - demand reasons. for Theseeconomic are independence. In addition, such economic secession, if it is disguised by addition of ethnic-political colors, becomes particularly acute. American themselvesresearchers to T.R. be of Gurr the common and W. Mooreorigin, common define an historical acute ethno-political past, valuable culturalconflict assigns the in confrontation a certain combination of such politicaland put their groups, collective which interests consider aboveThe the remarks expressedor other groups by American living in researchers it [2]. on the primacy of Generalities Jordi Pujoli: The language is important, the flag is also important,interests confirm the culture the words is very ofimportant, former rebel but the president most important of the Catalonian is money

Fiscal[3]. Separatism of Poor and Rich Collective economic interests in the condition of federal arrangement of nation are primarily revealed in the fiscal interests of individual www.innovationinfo.org regions-administrative-territorial or ethnic-autonomous the funds assigned to the central treasury in . The subjects of the . In this case, the necessity of arguments of the then leaders of the Autonomous lobbying by the local elites of regional economic interests in of Adjara were simple: autonomy did not transfer to the the federal countries (especially if the powers of the center central budget the money, which would be sent in the form and the regions are not dramatically differentiated) arises. of transfers again to the regions, including Adjara. During poor’s and rich’s. disobedience from the budget of Adjara

There are two types of fiscal separatism- poor’s 1998-2004 such separatism, which means that the local elites force to seize caused to central budget to lose several tens of millions GEL One of the type of fiscal separatism is the as much money as possible from the center or take-away [5].Important prerequisites for the emergence of poor through blackmail. separatism are structural problems that are arisen due to unequal development of regions. Historical experience demonstrates that two major poor’s Particularly non-received transfers from the federal separatism: support the region by a stronger foreign nation center was named by the then- of the andfactors unbearable significantly influence of the on center. the stirring Such separatism of Autonomous Republic of Adjara as a reason for aspiration is more radical, because the poor usually operate more radically than the rich as they do not have anything to lose. the political upheaval of separatists by the neighboring strongfor self-sufficiency. state of Georgia. In this On case, the surfacethe source of these of problems events, wasthis The example of the separatism of the poor was Georgia in the beginning of the 90s. At this time the difference between between the autonomy and Tbilisi, which lasted until the developments of different regions in the country was was revealed in the worsening of the fiscal confrontation not as sharp as in other countries. However, two parallel Choloki River at the administrative border and railway, the economic and cultural poles were formed- capital-city separatismMay, 2004. Fortunately,of Adjara’s leadership after opening did thenot moto-bridgego into armed on Tbilisi, or center, and poor regions. At that time, Georgia confrontation. was a very weak state, where foreign economic assistance always played a major role in strengthening centrifugal In addition to the Autonomous republic of Adjara, other movement. Consequently, due to the weakness of the regions of Georgia also had problems, which led to creation of separatist and Tskhinvali region- so called that in the beginning of this century the separatist regions South . Separatist aspirations in these regions were remainedcenter, the in separatists the phase of tried frozen to seizeconflicts its finances.in the north It is of true the country, but in terms of Georgia was much more the Soviet era, with the help of Moscow. These processes cohesive than many other young states. At the same time, innot Abkhazia connected was to fiscalpreceded : by the itwithdrawal was conceived of energy yet in the world experience shows that when the oppositions are generated by HPP through the high-voltage electric accumulated, the forces emerge in the country and abroad to power line Caucasus into Russia in the 70s of the last work on deepening of these oppositions, which often results in the formation of a powerful secessionist project. on the Gudauta-Ochamchire Shelf, it was started the supply ofcentury. electricity In this from period Abkhazia it was todiscovered Russian citythe firstof Sochi, oil fields the That is what happened in the late 90s of the last century negotiation on supply of natural gas from Sochi to Sukhumi in the Georgian autonomy of Adjara, where the Russian- through gas pipeline was initiated as well as the issue backed separatist regime created its paramilitary armed of arranging the road from to Sukhumi via the Caucasus was launched; at the same time, it was started the transferred to the Federal Center. The local elite argued that review of the project of construction of Russian pipeline to formations with the fiscal revenue which belonged,overcome but did’t from Novorossiysk via Abkhazia, which promised poverty caused by unacceptable transfers from the center. fiscal independence was necessary for them to Sukhumi to gain a multi-million transit revenue. Republic of Adjara in the central budget of Georgia became Similar developments occurred in the then-South aIn tradition 2000-2003,. It incurred the absence a damage of funds to the from center the in Autonomous the amount Ossetian Autonomy. Despite the resistance of the leading representatives of the Georgian society, at Russia’s government in expenditure . At that time Adjara was insistence, in 1985 it was activated Roki tunnel - so called aof typical 2-3 million representative GEL every of month, the poor creating’s sectarianism. problems for the TRANSKAM. At the same time, the project capacity was achieved by obtaining the deposit of poly-metals in Kvaisa The budgetary problems between Adjara and the Center mining. It was launched the review of the projects on Alagiri- should not have been created, as the Parliament of Georgia Tskhinvali Railway connecting the , opening adopted relevant normative acts every year (despite the of moto-road on Mamisoni pass and high-voltage power absence of the present form of the Budget Code). For example, transmission line through the Roki tunnel. in 1996-2000 there were adopted the laws, which set the long-term standards of federal and local taxes between the Thus, achieving economic independence from Tbilisi Center and Autonomies, i.e budget federalism began to form greatly contributed to the creation of separatist tendencies in Abkhazia and Tskhinvali region. in GeorgiaHowever, [4]. the then government of Autonomies often Unfortunately, the use of economic leverage for creation ignored the above-mentioned legislation and actually kept of tension still has a place in Pankisi- the region of Georgia

Sch J Appl Sci Res 2019 24 www.innovationinfo.org populated with Kists. For example, a Dagestan entrepreneur recession. Although the country is successfully exporting someone Magomed Kebedov for already 27 years has been natural gas, oil, electricity and alcoholic beverages, building at his own is poor in comparison with Catalonia - in the last years

Vantliash Pass. He expensesintends toand bring technique the road the to54 Georgian km long villageand 4-meter Akhaldaba, wide roadclaiming from asDagestan’s he wants village to restore Bezhta thevia Scotlandthe GDP ofin thisthe Unitedregion Kingdom,is 140 million despite pounds a large and number its share of economic relations launched yet in the period of Tsar’s oilin theand UKgas supplies, gross domestic is now considered product amounts a poor region 10% [8].and I.e.its Russia between Georgia’s Kakheti region and the Russian current separatism is a typical example of poor’s separatism. Fedration Dagestan authonomy populated with Avars. However, several decades ago, Scottish separatism emerged Actually, the goal of the project is to connect to the from wealth. Eurasian space with the land communication and to change The thing is that Scotland was the supplier of 90% of the foreign vector of Georgia and Azerbaijan in this natural gas and oil consumed in Britain for almost half a century. Additionally, there are powerful hydro power mannerTherefore, [6]. in order to reduce the tension between the plants in Scotland, supplying the rest of the United Kingdom and if Scotland is separated, the British will be forced to start or economic policy mechanisms gains a great importance. energy import. In this case, they will have to pay much more center and the regions the correct use of fiscal distribution than they are paying to Scotland now. For example, the Chinese government spends huge amounts of money for the development of the eastern At that time, the Scottish political elite has the separatism regions that are far behind the country’s rich coastal zone. of not poor’s, but of rich’s. This was contributed by the It is true that under the current strict administrative control hydrocarbons (natural gas and oil) that have been supplied of Beijing, it is hard to imagine that any province of in the North Sea Shelf in the region since 1970. On the may plan to separate, but the center believes: in order not to cause problems after some time, the center should be prices have risen by 2 times in the European market. After activated today. That’s why billions are being invested in that,background hydrocarbons of the becameenergy crisisan important of 1973-1974, political oil weapon and gas in infrastructural programs of , Internal Mongol and the hands of Scotland. At the same time, separatism increased. Sindzi-Uighur Autonomies as well as in raising the cultural In particular, if in the 1970s the Scottish nationalist party, level of the backward regions. whose main program promises is the separation from the

after the renowned Global Energy Crisis and risen price of or autonomous regions trying to achieve? The elites of United Kingdom, gained only 11% of the votes, in 1974, What are the fiscal goals the secessionist administrative votes. Hydrocarbon, the same party received more than 30% of the inthese order regions to get mainly more lobby:rights by1) prioritythe regional funding; 2) benefits / In contrast, during the economic crisis of 2008-2009, during tax collection; 3) amendments to federal legislation the number of pro-independence or poor’s separatists in Scotland has fallen sharply, which coincided with a self-governing bodies [7]. sharp decline in hydrocarbons price on global markets. know that, apart from dividing the common interests of the Interestingly, in 2009 the Central Government of the United separatistIn addition, regions, only countries a few lobbyists have to divide of fiscal their preferences liabilities as well. For example, Scotland will have to pay the part of credit resources to Scotland banks. the state debt of the United Kingdom state if it separates. Kingdom allocated a total of 37 billion pounds of sterling At present, 10 percent of the United Kingdom’s transfers come to Scotland, which means that in case of separation, of Scotland supported the remaining of the region in the this region will have to pay the proportion of the amounts UnitedAs a Kingdom. result, at Thereferendum Scottish decisionon September was primarily 18, 2014, due 55% to received. In addition, Scotland wants to keep pounds sterling, economic factors, namely: which may be a hindering factor for their independence. 1) The quantity of hydrocarbons obtained in the waters So, we can say that the separatist movement here has of the Scottish North Sea and their share in consuming been exhausted at this moment. At the on in the United Kingdom was reduced; accordingly, their the UK. The primary reason for this decision of Scotland is surveys proved that the reserves in the North Sea are ofSeptember course the 18, economic 2014, 55% factor. of Scotland They do wantednot want to to remain abandon in significance for Scotland was also reduced. The geological said about Northern , where the periodic growth of therapidly North falling-the Sea hydrocarbons extraction have has already decreased been exhausted; by 40%. ethnic-politicalthe economic benefits tension they is get in the withUK. The the samestart canof the be Specialists estimate that since 1970s, more than 2/3 of coinciding 2) of the President of the European Commission-José regions in the UK are bilateral. Currently there is no place for ManuelScotland’s Barroso-on decision unacceptability was influenced of byseparatists the statement for the budget process.. In The most economic cases Scotland benefits and of remaining Northern ofIreland these fiscal plunder and the threat of staying of Scotland are getting more from the central budget of the UK than they outside the EU, which would create for Scotland political contribute there. problems along with the economic ones. After that, the In the past few years, traditional factories in Scotland - coal miners and metallurgy, and shipbuilding shells are in up secessionist activities; announcement by of the eventually ended Sch J Appl Sci Res 2019 25 www.innovationinfo.org 3) It was important the position of Scotland businessmen, big would be culturally different from the rest of Spain, since investors, banks, and companies to go against Scotland’s attention was paid to economic and political aspects. In this complications and poverty in the region; 2003 the role of culture has become less important and much independence, as this would lead to big financial 4) There were also doubts about remaining the pound regard,Catalonian the fiscal elite policy and is anparticularly important remarkable part of society [11]. are sterling in the turnover in the region. They did not exclude cautious. It does not need destabilization, which can the transition from Scotland pound to Euro, which would not be painless. prosperity. They are not ready for long struggle due to independence-connected to the they independence are afraid ofat economicthe sacrifice problems. of economic It is It is interesting to note that Osborne, the Finance Minister true that in Catalonia there are people who require radical action and think little about the economy, but they cannot before the Scottish referendum made a statement. He offered of the United Kingdom, on September 7, 2014, a few days Catalan separatism, like Scotland, requires not a completely You will be more able to control your fate, influence the autonomy’s government. In addition, today’s more fiscal autonomy if Scotland would stay in the Kingdom: independent state but the creation of a new member of Due to the current reality of the Brexit - he, most said [9].European the EU; in many cases, the separatists are trying just to experts believe Scotts have made absolutely the right throw away an excess ring decision to remain in the United Kingdom. Otherwise, they subordinated directly to Brussels Euro-. will not be in the Kingdom neither in the European Union. (Madrid, London) and become Catalonia is a large region with more than 7 million Brexit is a bilateral pragmatic step aimed at maintaining inhabitants. This is more than 12 EU member states taken together. Catalonia’s GDP is equal to the sum of the Gross Domestic Product of , Ireland and Portugal. Furthermore,stability- by leaving the Kingdom the EU Londondoes not gained disturb the integritythe ethnic of Catalonia is one of the 17 richest regions in Spain, with a identitythe country, of Scotland, while Scotlandthe population received has economicthe right to benefits. hold a share of 20% in Spanish GDP. The GDP in Catalonia is 192 referendum on the separation issue, has its representative, billion Euros, while GDP per capita is about 27 thousand judicial and some bodies. Scotland’s example of the 70s shows the existence of Spain. rich’s separatism. Euro, which is more by 13% to the similar index of whole Confrontation between Spain’s central government and From this point of view, it should be noted the regions that Catalonia’s local governance is expressed in the fact that out arethe richsecond in comparisontype of fiscal with separatism- the rest ofthe the country and try of 20% contributed to Spain GDP Catalonia receives very are, for example, Basque and Catalonia in Spain, not to share their fiscal revenues to the center. Such regions in . Such separatism is also active in northern Italy, little,The about annual 57 cents budget from of 1this euros autonomous paid [12]. region is 26 which is richer than the south. All these regions are a rich billion euros. Barcelona emphasizes that the region annually part of the country and in this case we can say that the richest contributes 11 to 15 billion euros in the form of taxes, while regions do not want to maintain poor regions- this is the in Madrid they claim that they receive only € 8.5 billion rich’s separatism. The classical example of such separatism is today’s Catalonia. banksannually in Spainfrom Cataloniaare located [13]. in Catalonia. Catalonia It produces is noteworthy a quarter that of Spanish exports. In addition, there 10 banks out of 46 a democratic state. Spain has a very developed economy. Like Georgia, Spain is a federation, and like the UK - is By increasing the autonomous rights, it became a federal unemployment rate is 1% here while it is 12-13% in the rest state today. However, in recent years the situation in the partsIn ofaddition, Spain [12]. Catalonia is an attractive region for foreign a solution to hinder the secessionist sentiment. Apparently, acountry similar confirms economic that, policy like like Georgia, the United federalism Kingdom has should not been be mostinvestors successful - for regions the last in Europe five years as well there in tourism is an point annual of taken up in Spain. view.investment Therefore, of 3-4 the million Catalonia Euros call [12]. the Catalonia relationship is one between of the the center and the region a fiscal theft. They often appeal with the slogan Spain steals from us. Fiscal independence is independence. They share the opinion that in today’s one of the most frequently demanded alternatives from the worldNow with a significant free trade part relations, of Catalonian small countries population can demands be very Catalans.

The separatist aspirations of Catalonia are based on a successful [10]. Spain’s, but leaving the EU and will also bring very weighty historical argument, but we should also take disastrousAt first results glance, to Catalonia’s it. The regional economy government is stronger is in thandebt into consideration the so-called separatism of the rich - separation from the Spanish state is the desire of the elite addition, according to the Credit Suisse survey, the Catalonia of one of the most developed provinces. In the aftermath grossand financial domestic aid product from European will be reducedfunds is decisiveby 20% forin casehim. Inof separation. of Pascual Maragalla, the approach to the separatist movementof the 2003 in Catalan Catalonia Generalitat has changed. If earlier and theCatalanism success was associated with the development of the country, which The role of the fiscal sphere is important in the federative Sch J Appl Scistates, Res 2019 as in the federal financial system, as no any other area,26 www.innovationinfo.org the antagonistic attitudes between the federal center and its the Iraqi Kurds protected this city from the , subjects, as well as the subjects of the federation themselves Iraq is now ready if necessary to release Kirkuk from Kurdish Give me your financial order and I will tell you what your federalism is are clearly expressed. As figuratively they say: influenceIn all these by Iranian cases, military political, aid social, [14]. historical and cultural [12]. factors have great importance, but as we see, economic independence from the center, unlike two other Spanish interest has played the same role of catalyst everywhere. autonomousThe thing regions is that - CataloniaNavarra and does Basque. not have Nevertheless, full fiscal Interestingly, that the idea of ​​escape from poor relatives European politicians and economists agree that Catalonia is in Catalonia, northern Italy and southern was largely the same for Spain as Germany for the EU. In the legal sense, caused by the lack of oil monitoring, mainly due to the lack according to the pragmatic theory of the secession, the has the right to demand a secession if the central one of the main distinguishing marks of rich’s secessionism. authorities systematically carry out the economic looting of Accordingof fiscal monitoring to some experts, mechanism. nationalist In addition, rhetoric such and caution striving is the region, or if the internal colonization takes place [11]. increase . For example, in the fall of 2017, operates internal colonization Catalonia. Presumably, it is whenfor separation everybody’s is aattention trick to was gain directed additional to Catalonia, finances andthe possibleIn this to solve regard, Catalonia’s it is difficult economic to confrontation say whether by Spain the three states of Brazil: Santa-Katarina, Parana and Riu-Grant- du-Sullah (with 29 million inhabitants) conducted so called redistribution. universal consultations of citizens. Spanish central authorities through fiscal reforms, or fiscal Historical experience shows that when the difference between the living conditions of the regions reaches a critical in 2016, analogous surveys were conducted on a relatively level, or when occurs the event that leads to an increase smallIn scale.fact, it So was far unofficialin South Brazilreferendums no one declareson independence; universal in revenues (for example, the discovery of hydrocarbon disobedience and formation of armed formations, although deposits in one of the country’s regions), immediately separatist ideas are becoming more widespread. Part of the lobbying and then separatist views emerge. For example, in commentators believe that it is very well organized by the the 60’s of the last century, the discovery of the North Sea world’s superpower, because Brazil’s enormous potential will enable them to become a superpower in the future, impact on the resurgence of Scottish separatism; the same and to compete for example with the or other discoveryoil and natural coincided gas in withthe United the demand Kingdom for made the separation a significant of BRICKS members. The example of South Brazil shows how the northern coastal region of Flanders from Belgium and the so-called Separatism of rich is born. Holland. It is interesting that now Flanders covers only Brazil is a very young state with the measurement of a third of Belgian territory but earns 60% of GDP of the Europe-Asia history. Until it was formed, there were a country. number of separatist insurgencies, both in the South and in From the beginning of this century, the oil factor plays other regions. Years after these historic events, the central government sought to divert large parts of immigrants and Over the past few months, it has also become important in migrants from the Southern States to get them closer to Myanmara significant in the role state in Iraq’sof Arakan, where andthe deposits South . have local farmers, who settled there earlier. For example, the been discovered. German immigrants, their language and culture dominated in Riu-Grenz-du-Souza and Santa-Katarin. In Paraná, along The same is the foundation of Kurdish independence. with the , many Polish people lived. Finally, these In particular, after the referendum, Iraq, Turkey, Iran and states, along with the state of São Paulo, where the separatist Syria have threatened Kurdistan with military-economic movement Republic of São Paulo existed, were formed as the sanctions. They are ready to neutralize big Kurdistan Economic Heart of Brazil. There are three quarters of the GDP earned in the country and traditionally the infrastructure 2017, the turnover between Turkey and Iraq’s Kurdistan was development, as well as culture level is higher. 7ambitions billion dollars, by force. Turkish Despite President the fact Recepthat in Tayyip the first Erdogan half of threatened to block Kirkuk-Ceyhan pipeline One of Brazil’s major problems was always bad today. By this pipeline, the Kurdistan Autonomous Region, communications between the provinces, and in many cases bypassing the Iraqi central government, exports 500 000 they had no land but sea routes, they have the land border barrel of oil daily, which is 95% of the budgetary revenues of with foreigners. Because of this, the psychology of the this secessionist autonomy. separate world of independent enclaves has been formed in certain states. government 17% of annual revenues of the country’s federal The development of these regions was always uneven - budgetUntil in 2014exchange Iraqi for Kurdistan 250 thousand received barrels from of oil, the i.e central about the government was less cared for it, and the business was 15 billion dollars. This agreement has been violated and as one part of the experts suggested it was accelerated by a there were developed ports and their adjacent area in the referendum. south,looking where for maximum there are profit. favorable Therefore, conditions first for and successful foremost economic activity. As a result, economic distortion led to Consequently, after a referendum, disputes around the a cultural one- to put it simply, rich people can give their oil-rich Kurdish urge will become more intense. Although

Sch J Appl Sci Res 2019 27 www.innovationinfo.org children better education. They are very annoyed by the fact that poor, based on the principle of , can do the federative state is formed by the opposite process of the same or (because of the demographic advantages) have independenceAt the same - distribution time, the axis from of the the Revenue financial Center, system the of greater impact on the distribution of wealth. basic parameters of which are given in Table 1. This argues that sometimes the ultimate goal of rich’s As shown in this chart, the federal state’s subjects, since separatism is to create not a new state, but to gain the highest they have independent tax sources, have a relatively high preferences from the central government by taking cautious share of revenue compared to the center; so independence steps. Part of the commentators see this desire behind the and redistribution are the unity of the opposing sides, Catalan government and thinks that the parties have gone which require constant monitoring to ensure that one does so far because of the peculiarities of the national mentality: not suffer at the expense of another. This unity is achieved they feared that the voter would deemed their moderate to between the center and the regions by means of economic be their weakness. Consequently, escalation in this region regulation of income, so that it does not violate another of Spain was stipulated by a combination of political and principle- universality, which implies unnecessary appeal of psychological goals. That’s why (perhaps temporary) the than in Scotland, or even in southern Brazil, where local all budget revenues for financing of common taxes (except Table 1 shows that the most decentralized structure elitessettlement are trying of the to conflictforce the in center Catalonia to take was into managed account their later donors financed). of income and expenditures from federative states is interests. in , where federal authorities- the center In conclusion, we can say that in the example of the two expenses. Nevertheless, in this ethnicly mild country, low in the separatist movement of different regions. This also concentrationcontrols just 27 of percent revenues of andrevenue expenditures and only in30 thepercent central of regions of Europe, it is clear how important are fiscal factor government does not generate ethnic-political separatism secessionist sentiments, but in terms of non-distribution of regions (the country is divided into 6 ethnic cantons). ofconfirms incomes that or although a passive federal economic policy slows the separatistdown the Moreover, Switzerland is not a federation formally but it is a aspirations anyway emerge. So separatism is generated by higher form of regional autonomy - . The same famines, or great wealth. can be said about and Germany, where the regions

Model of are automatically secured by the e-treasure, which divides thehave federal more center’sfiscal leverages own revenues than the and center. the revenues These leverages to be left in the budgets of regions in accordance with the standard set The federal financial system is explained in economic by the Budget Code. includesliterature the as asystem set of ofnorms division that ofregulate competences financial (insofar relations as between different levels of state. The financial system On the other hand, if we compare the above-mentioned it has a financial character), budgetary law and financial with the same federal arrangement- Georgia, despite the Financial order of federative states, unlike any other countries with the financial position with the countries sources distribution system [15]. fiscal center (according to the requirements envisaged by the constitution of any of the federative states today cannot be Appendixmuch higher 1 to fiscal the Georgian power concentrated Budget Code, in almost the hands 80% of-90% the sphere, is in a constant change [16]. In this regard, the of revenues and expenses are accumulated in the center), relations in the federative state are distinguished with the problem of still remains. We want to say considered perfect [17]. In scientific literature, According financial to the prevailing view in the literature and the best practices inexceptional the world, contradiction in federal budget and dynamicity systems arranged [18]. according thethat accumulation in the fight against of the the most country’s of the secessionrevenues arrangementof the center to the federal principles the same subject should have a securedof fiscal sphereby the e-treasureaccording toelectronic the federal is not principles, always solution. and even certain power, as well as the responsibility for the expenses in order to discharge the power, including their lawfulness, So what’s going on? Why, while most of the above- entity that must carry out a certain task, should be also mentioned studies recognize that fiscal separatism is the purposefulness and efficiency. Administrative-territorial Table 1: Structure of income and expenditures. determines the volume of the budgetary funds used for this Type of a state Revenues of the center Expenses of the center responsible for its financing, since the cost of expenditure a. Federative states In the majority of modern federative states one of the Switzerland 27.0 30.6 purpose [19]. Austria 51.8 56.0 USA 41.0 45.8 area is the independence of the state budget, the budgets of Germany 33.4 30.6 themajor autonomous principles republic of the legislation (if such administrative-territorial regulating the financial b. Non-federative states: 71.4 formations are in the country is) and the independence of 66.9 Denmark 83.1 local self-governance units’ budgets, which are ensured 73.9 Great Britain 72.3 by the own revenues and balances; the major principle is 60.8 Italy 56.7 56.4 also the right to determine own taxes independently- in Netherlands 44.6 48.9 accordance with law.

Sch J Appl Sci Res 2019 28 www.innovationinfo.org basis for political secessionism, in some countries with Code. 100% performance of the norm will be presented at the maximum frequency of the output vertical lines from Switzerland or US there is no separatism? As the examples the corresponding drawer. Similarly, the horizontal strings fromthe decentralized the Table 1 show, financial the systems,reason for such all asis not multi-ethnic the non- will be catalytic indicators (C - Catalist) that represent the reason is the federal center’s economic policy in the regions. frequency of the corresponding horizontal lines out of this regulated standard framework for fiscal sector, but the drawerspecificity is ofthe this maximum region in 100%economic value policy, of this and indicator. the maximum For example, the correlation of roads or transmission lines by the budget legislation of any country. For example, connecting the region’s center with roads, railways, power AnnexMechanism 1 of the forBudget fiscal Code federalism of Georgia is has mainly allocated provided the transmission lines etc. quantity, or quantitative ratio of state- percentage ration of distribution of all six budgetary taxes based enterprises based on the number of state enterprises established by regional governance, or the ratio of minerals autonomous ’ budgets and local self-governmental and other fiscal and non-tax revenues to the budgets of state, in the region to the overseas deposits of the center, etc. The federal matrix operator periodically records the units’Monitoring budgets [20].of Fiscal Separatism data of various departments from B and C indicators in the To ensure that the federal center constantly monitors federal center of the country in both vertical and horizontal monetary transfers of its own revenues from the budgeted boxes and afterwards the electronic rating of the separatist quality begins. e-Treasure electronic program is created in the Treasury. Computer program on the display in a different color Itregions is based and on thus the software prevent that fiscal automatically secession attempts, changes the (say red) will highlight the maximum frequency of vertical and horizontal lines crossing points that are characterized used as such software. by the most frequency in the given period (say month). calendar days. In many countries, SQL or Visual Fox Pro is But before this system was introduced, annual regulations The frequency of the most vulnerable indicators revealed were used to distribute the revenues from different levels by the program provides a combination of the basic and of budgets. Monitoring of their protection was one of the catalytic indicators that in the case of achieving certain main tasks of the Ministry of Finance of any country with critical weight leads to redness of the corresponding transit federal arrangement, which required substantial resources. point on the display, so it highlights the high probability of Currently, using the electronic system, monitoring is carried forceful confrontation between the center and the region. out in automatic mode and the cost of monitoring is minimal. These critical triggers of the cross revealed by the electronic However, in order for the monitoring to be program will allow the decision-makers in central power comprehensive, it is necessary to specify the second group before the multiplication of the red points to convene the of indicators (variables) in the program, in addition to the operative meeting with participation of the representatives Budget Code, - Catalytic indicators. vertical and horizontal lines of the red boxes) and manage standardsare distinguished defined byby the their peculiarities. For example, if of central and regional offices (in accordance with the AbkhaziaSuch indicators had more will be energy specific ties for withall regions, neighboring as the regionsRussia than the rest of Georgia, Tskhinvali region and Russia, or the early detection of a separatist conflict and respond to it. are about 25 active separatist movements in Europe. In Nagorno-Karabakh and Armenia have more land transport thisAccording term the demand to the datafor part in scientificof the rebel literature, regions is there the communications. Adjara is generally distinguished with many communications with Turkey, including confessional independence. communication, development, etc. secession, while other part claims fiscal rights - economic Collective economic interests in the condition of federal That’s why we believe that in the program of early detection of separatist trends, in addition to the Basic interests of individual regions - administrative-territorial or there Budget Code, ethnic-autonomousarrangement of state subjects are primarily of the federation. revealed There in the are fiscal two should be Catalytic indicators of economic policy (revenues redistribution).normative revenues For example, defined the by ratio the of the road network (frequency) between the center and the region to the Tabletypes 2: of Records fiscal of separatism- data of various “Poor” departments and from “Rich”. B and C by federal matrix neighboring country or the frequency of power lines operator. with the neighboring country in comparison to the wires B1 B2 B3 B4 B5 B6 B7 B8 B9...... …..Bn connected to the center, or the quantitative ratio of the state- C1 owned enterprises owned by the center to the local state C2 C3 of the region’s economy, the program of early detection of C4 economicenterprises, secessionism, etc. Finally, takingin our intoview, account must have the specificity a matrix C5 (Table 2). . . The vertical columns in it will be to implement the root (B . - Basic) standards between the Center for Fiscal and Non-Tax . Budget Cn

Revenues and Budgets defined by Appendix 1 of theSch J Appl Sci Res 2019 29 www.innovationinfo.org Historical experience demonstrates that two major An example of the mentioned is the Autonomous Adjara separatism: support the region by a stronger foreign state into thethe beginningpoor performance of this century; of the region’s fiscal standards. andfactors a dictate have aof significantthe center over influence the region. on provoking Such separatism “Poor’s” - Separatist aspirations of the regions are enhanced by the is more radical, because the poor usually act more radically minerals found there, say, the availability of hydrocarbons, rather than rich people for at least one simple reason: they or the prospective of receiving the revenues as a result do not have anything to lose. of transit of transport routes through their territory. For instance, the separatism of Scotland, Flanders, South the regions that are more developed in comparison with the Sudan and Kurdistan in these regions is coincided with restIn of terms the country, of “Rich’s i.e.; Separatism” they are rich it should and are be trying emphasized not to extracting hydrocarbons, while the aspiration of South Brazil, Abkhazia, (Georgia) for secession for example, Basque and Catalonia in Spain, Flanders in is coincided with the construction of centrifugal/ Belgium.share their Such fiscal separatism revenues isto alsothe center.active inSuch northern regions Italy, are, transboundary communications in their territory; which is richer than the south part. All these regions are a - rich part of the country and in this case, we can say that the revenues and expenditures between the federal center richest regions do not want to sustain poor regions. andLegal regions and flexible weaken fiscal separatism. mechanisms Examples for distribution are Scotland of and in the United Kingdom. The inter-agency economic mechanism of the different antagonisticThe role of attitudes the fiscal of sphere the federal is special center in Federative and its subjects, States, branches of Government interaction of early warning is as inwell the as federal among financial the subjects system, of the as infederation no other itself area, are the proposed in this article. The federal center will use model of clearly expressed. economic mechanism of the separatism early detection and Federal regionalism slows down the separatist moods, but the separatist aspirations emerge anyway in terms the executive branch agencies and the heads of the regions, of non-distribution of revenues, i.e in the conditions of a wherewill carry the outlegislative a concrete changes preventive and economic measures sanctions, – meetings other of passive economic policy. So, separatism is generated by a new initiatives will be discussed. starvation or great wealth. References To ensure that the federal center constantly monitors 1. Christopher J Borgen (2010) From to catalonia: separatism and timely transfers of its own revenues from the budgeted

2. integrationTed Robert Gurr,in Europe. Will H. Faculty Moore Publications (1997) Ethnopolitical 114. Rebellion: A Cross- attempts, it is created the e-Treasure- electronic program in Sectional Analysis of the 1980s with Risk Assessments for the 1990s. theregions Treasury. and in this manner to prevent fiscal secession However, in order for the monitoring to be comprehensive, AmericanPujol scandal Journal fractures of Political Catalonia’s Science ruling 41: 1079-1103.coalition. it is necessary to specify the second group of indicators 3. Assignments from State Taxes to the Budgets of the Autonomous 4. RepublicsLaw of Georgiaof Adjara (1997)and Abkhazia On Long-Term and other Territorial Economic Units Standards of Georgia. of (variables) in the program in addition to the standards defined 5. Government begins to look for a scapegoat under the accusation of distinguishedby the “Budget by Code” their –peculiarities. so called catalytic For example, indicators. Abkhazia Such budget separatism. Economic 2002. hadindicators more willenergy be specific connections for each out region, of the as countrythe regions - with are 6. Road Map of Kebedov. neighboring Russia than with the rest of Georgia, Tskhinvali 7. Lentra (2014) region and Russia, or Nagorno-Karabakh and Armenia had Matsaberidze M (2004) Lobbyism and government. Business and 8. managementA National Statisticsthe journal Publication N 3. for Scotland. Quarterly National was distinguished from Turley with its development in all Accounts Scotland. more land transport communications. Before 2004, Adjara 9. : Osborne reveals ‘no vote’ action plan. education, medical, cultural and ecological tourism, power fields, including theological communications (theological 10. The economic impact of the European union transmission lines and transport communications, and etc.). Andjelka Pantovic (2014) 11. on subnational Isseparatist catalan sentiment.separatism Undergraduate a Progressive Honorscause? DissidencesTheses 174. Hispanic Journal of Theory and Criticism 5: 7. Illas E (2014) electronicTherefore, program we believe of separatist that in trends addition early to thedetection, “basic” 12. The Economic Consequences of European Separatism. therenorms should of the be revenues indicators defined of economic by the policy Budget (redistribution Code, in the of the incomes). For example, the ratio of the road network (frequency) between the center and the region to the road 13. PujolNew separatist scandal fractures formations Catalonia’s in world ruling and threats coalition. for AugustGeorgia 17,. 2014. connecting to the neighboring country or the frequency of 14.15. Albert B (1998) Vom Sinn und Zweck des Demokratieprinzips. Ein power transmission lines in comparison with the cables Beitrag zur teleologischen Auslegung desStaatsorganisationsrechts; pp: connecting to the center or the quantitative ratio of the state- . owned enterprises owned by the center to the local state 16. 163Duchacek I (1970) Comparative Federalism, New York, Holt, Rinehart enterprises, etc. In the article, as a conclusion, we prove that: 17. - Aspiration of some separatist regions for separatism is due and Winston. P. 370. Frenkel M (1984) Foderalismus und Bundesstaat. S: 83. Sch J Appl Sci Res 2019 30 www.innovationinfo.org

18. Theorie des Bundesstaates. Ein Beitrag zur 20. Distribution of revenues according to percentage indexes among the Allgemeinen Staatslehre ausgearbeitet am Beispiel derSchweizerischen budgets of Georgia, the Autonomous Republics of Adjara and Abkhazia Usteri M (1954) . 19. Eidgenossenschaft, Zürich,Kanton S: und249. Gemeinde vor ihrer Erneuerung, Bern. and local self-governmental organs. Budget Code of Georgia, 2014; pp: 84-95 Fagagnini HP (1974)

Citation: Garakanidze Z, Garakanidze N (2019) Methodology of Detection of the Economic Separatism. Sch J Appl Sci Res Vol: 2, Issu: 5 (23-31).

Sch J Appl Sci Res 2019 31