The purpose of the study is to comprehensively assess the legal and economic prerequisites for integrating prediction markets into the US financial system, taking into account the regulation of derivative financial instruments, gambling legislation, and the characteristics of decentralized management models, as well as to determine the impact of legalization on the informational efficiency of markets and the stability of the financial system. The study uses formal legal analysis of regulatory acts and law enforcement practices of federal authorities, a comparative legal approach to the distinction between financial and gambling regulation, economic and mathematical modeling using autoregressive models with external variables and rational expectations theory, as well as elements of agent-based modeling to assess the risks of price manipulation. The source base consists of relevant scientific publications from 2022 to 2026, analytical materials, and regulatory documents. It has been established that the main barrier to integrating decentralized prediction markets into the US legal framework is the dual legal nature of event contracts, which creates competition between the regulatory regimes governing derivatives markets and the gambling sector. It has been proven that the absence of a centralized issuer in decentralized autonomous organizations complicates state supervision and the identification of the responsible entity. Economic analysis confirmed the ability of binary contracts to aggregate scattered information and form market expectations more efficiently than individual traditional indicators, while also revealing the risks of short-term price distortions. The need to introduce a mixed legal support model, combining distributed registries with a licensed organizational form of activity, is justified. Legalization of prediction markets, provided that there is a clear distinction between financial and gambling regulation, can increase the transparency of market expectations and expand the range of risk management tools without creating excessive systemic threats.
Public finance transparency has become central to economic modernisation, fiscal accountability, and anti-corruption reform in transitional economies. With the emergence of distributed ledger technologies (DLTs), blockchain systems have been increasingly explored as instruments to improve auditability, reduce information asymmetry, and strengthen institutional trust between state, business, and society. This article develops a comparative analysis of blockchain adoption in public finance across four transitional or post-socialist economies: Uzbekistan, Estonia, Georgia, and Kazakhstan. Drawing on political economy frameworks, digital governance studies, and blockchain technical literature, it examines the potential and constraints of distributed ledger innovation in procurement, budgeting, treasury operations, registries, and asset disclosure systems. The analysis shows that blockchain adoption is not solely a technological issue but an institutional one, shaped by state capacity, bureaucratic incentives, regulatory ecosystems, and pre-existing digital infrastructure. While Estonia demonstrates advanced institutional integration of blockchain-based infrastructure, Georgia and Kazakhstan illustrate intermediate pathways of digital governance with selective blockchain pilots, and Uzbekistan represents an emerging adopter with rapid digital modernisation but slow blockchain deployment in fiscal functions. The article concludes that blockchain-based transparency reforms in transitional economies require a coordinated approach linking governance, data interoperability, legal reform, and administrative incentives rather than technology alone.
Stablecoin -Stable-Caucasus (STCAUX)Technical Whitepaper v1.0 Multi-Asset Commodity-Backed Stablecoin for the South Caucasus Region1. Executive Summary StableCaucasus is a multi-component stable digital asset based on the economic foundation of the South Caucasus and pegged to: ● regional currencies (AZN, GEL, AMD) oriented toward USD exchange rates; ● commodity indices: gold, agriculture, metals mining, oil and gas; ● the region’s energy and resource potential; ● Logistics ● uranium as a strategic component and future driver of global energy The goal of StableCaucasus is to create a regional, resilient digital asset that reflects the real economic potential of the Caucasus and provides users with stability, liquidity, and protection against currency volatility. 2. Mission & VisionMissionTo create the world’s first multi-commodity stable asset representing the South Caucasus as a center of: ● agricultural production, ● energy, ● gold mining, ● Logistics and strategic natural resources Vision To position StableCaucasus as: ● a settlement unit for cross-border trade between the Caucasus, GCC, EU, and Central Asia; ● a protective asset for investors; ● a digital instrument for governments, banks, logistics operators, and exporters. 3. Value Proposition StableCaucasus provides: ✔ Stability — the multi-index model reduces dependence on any single asset. ✔ Trust -each part of the formula is based on public financial and macroeconomic data. ✔ Regional relevance- partially reflects the real economy of the South Caucasus. ✔ Collateralization - the asset is backed by auditable and transparent baskets. ✔ Web3 infrastructure - BNB Chain and Ethereum compatible.
Purpose This study analyzes Georgia’s healthcare transformation from 1991 through both historical policy evolution and the WHO Health Systems Framework, evaluating how reforms prioritized or neglected system components while projecting 2030 outcomes. Design/methodology/approach We analyzed 26 peer-reviewed studies, WHO reports and Georgian government records, categorizing reforms by WHO component and assessing their cumulative impact on equity and efficiency. Findings Georgia’s journey reveals three distinct phases: post-Soviet collapse (1991–2006), market-driven reforms (2007–2012) and universal coverage expansion (2013–present). While financing and service delivery improved (OOP payments reduced from 74.7 to 57%), chronic workforce shortages (1:1 nurse–doctor ratio) and governance gaps persist. The 2030 strategy represents the first holistic attempt to address all WHO components simultaneously. Practical implications Policymakers must balance historical lessons (e.g. corruption risks in decentralization) with WHO-aligned investments, particularly in workforce training and digital infrastructure, to achieve 2030 goals. Originality/value This is the first study to combine historical policy analysis with WHO framework application for Georgia, revealing how reform sequencing explains current strengths (90% coverage) and weaknesses (rural disparities).
This study investigates the mediating role of organizational commitment in the relationship between budget participation, leadership style, motivation, job satisfaction, and managerial performance in the regional government apparatus (OPDs) of Merauke, South Papua. As one of Indonesia's newly autonomous provinces, South Papua faces significant administrative challenges, especially in implementing decentralization policies and managing special autonomy funds effectively. This research employs a quantitative explanatory design with data collected from 386OPD employees through structured questionnaires and analyzed using Structural Equation Modeling (SEM) with SmartPLS 4.0. The findings reveal that budget participation, motivation, job satisfaction, and organizational commitment have significant direct effects on managerial performance. In contrast, leadership style does not directly influence performance. Motivation, while negatively affecting performance directly, contributes positively to organizational commitment, which subsequently enhances performance. Organizational commitment also plays a significant mediating role in the relationship between budget participation, motivation, and job satisfaction with managerial performance. However, it does not significantly mediate the effect of leadership style on performance.This study is grounded in Organizational Behavior Theory, Path-Goal Theory, Expectancy Theory, and Contingency Theory, offering a robust theoretical lens to understand how internal organizational dynamics affect public sector performance. The results underscore the importance of participatory leadership, strategic human resource management, and job satisfaction in fostering emotional attachment and performance-enhancing behaviors among civil servants.Theoretically, the research enriches public administration literature; practically, it informs policymakers and administrators seeking to optimize human capital in underdeveloped regions with unique cultural and political contexts.
The integration of smart contracts and artificial intelligence (AI) into family law represents a major advancement in the digital transformation of legal procedures for marriage contracts. The blockchain technology enables smart contracts to function autonomously as self-executing agreements that deliver benefits through automated processes and transparent systems, and secure transactions. AI integration with these agreements enables real-time adjustments through adaptability because it allows automatic changes based on financial, legal, or personal circumstances. The implementation of family law through these agreements creates essential legal problems regarding their enforceability and jurisdictional differences, and their ability to handle marital relationship dynamics. The paper studies the basis of smart contracts alongside their potential AI-enhanced adaptability and automation capabilities. It also studies the Serbian marriage contract legal regulation. The research investigates the legal obstacles and jurisdictional problems that emerge when these technologies are used in family law by making comparisons with other civil law jurisdictions. The article also evaluates important ethical issues related to algorithmic bias and privacy concerns before it concludes by analysing the advantages and disadvantages of AI-enhanced smart contracts for marriage contracts in Serbia.
In 2016, the World Economic Forum recognized blockchain technology as one of the ten most important emerging technologies. Prior to this recognition, The Economist published articles about the "trust machine," introducing this remarkable technology to a wider audience. In order to understand the progress of blockchain technology and its current state, it is essential for countries to research these issues in relation to their economies. It is important to distinguish between theoretical blockchain applications and their commercial applications to assess the potential disruption of existing business models by blockchain technology. This article presents the European initiative in applying this technology and estimates the Moldovan economy's preparedness in this regard. To achieve this, we have set the following objectives: describing the principles and directions of the EU Blockchain/Web3 Strategy; conducting a comparative analysis of the level of innovation in the Moldovan economy with two EU member states; estimating the potential for future use of these technologies, and outlining the necessary skills and abilities. This research is relevant because it identifies the actions that the Moldovan economy must take to achieve a level of innovation and economic progress on par with the EU.
This article analyzes the relationship between local self-government and democracy, focusing on their significance for individual political freedom within the context of Ukraine’s ongoing democratic reforms. The study highlights the theoretical foundations of this correlation, examining the impact of decentralization and governance at the local level on the country’s political system. Despite Ukraine’s substantial efforts toward democratization, significant challenges remain in effectively balancing the principles of local self-government with centralized state power. The article explores three primary theoretical and methodological approaches to understanding this relationship. The first approach argues that local self-government and democracy are not necessarily interconnected, and self-governance can exist even under authoritarian regimes. This perspective is based on examples from states where self-governing structures function autonomously, without direct influence from democratic processes. The second approach emphasizes that local self-government acts as a precursor to democratization, serving as a «school of democracy» where citizens acquire participatory skills and foster political culture. This approach acknowledges the role of local institutions in developing civic responsibility and engagement in decision-making processes. The third approach asserts that democratization must first occur at the national level, creating favorable conditions for the development of autonomous local self-government systems. The article concludes that a balanced approach to decentralization and centralization is crucial for the effective functioning of local governance. The Ukrainian experience demonstrates that decentralization can strengthen local communities’ capacity for self-organization and responsiveness to citizens’ needs. However, excessive decentralization, in the absence of strong democratic traditions, risks consolidating power among local elites, which may hinder broader democratization efforts at the national level.
Technological advancements have significantly shaped global society, leading to widespread reliance on technology across various domains. This pervasive influence is particularly evident in the daily lives of individuals, who heavily depend on the digital world and internet connectivity. Crucial sectors such as finance, trade, and the creative industry have embraced the digital realm, with the emergence of Non-Fungible Tokens (NFTs) representing a novel approach for creators to acquire recognition and value for their work. However, this technological progress has also presented opportunities for criminal exploitation, as illicit activities such as money laundering and terrorism funding have transitioned to the digital landscape. This study employs a secondary research methodology to investigate the vulnerabilities associated with the use of NFTs as a medium for money laundering and terrorism funding. The study aims to highlight the potential implications for national economic resilience if these issues are not adequately addressed and securitized. By combining the constructivism theory with the concept of securitization, this work explores how the adoption of NFTs can pose a national concern, affecting both economic stability and security. Furthermore, the research reveals that the anonymity feature inherent in NFT transactions facilitates easier execution of money laundering and terrorism funding activities, thereby posing risks to a country's national security and economic resilience.
The suspension of economic relations as a result of the global pandemic has severely affected the country’s peripheries. Unequal development of territorial units and overcoming socio-economic problems is the biggest challenge of any country. To address these challenges, the country needs to mobilize large amounts of finance and make optimal allocations. Intergovernmental relations play an important role in the effective implementation of the transformation of the country’s economic and political system. The aim of the paper is to study the characteristics of revenue mobilization and distribution between the levels of the fiscal system. There are developed some recommendations for improving inter-budgetary relations based on the experience of different countries. The recommendations proposed as a result of the research analysis can be used for both theoretical (for lecture) and practical (for legislative) purposes.
In this article, we lay out the results of an analysis of the role of property tax regime in the local finance of Kosovo and highlight the current advantages and weaknesses. Design/Methodology/Approach: We do this by carrying out an analysis of the legislation in force, which regulates financial issues at the central and local levels, the functioning of property tax, and other financial implications for municipalities. In doing this we review the level of dependence of municipalities on central government, grants and their share, as well as other issues which have an impact on fiscal decentralization. We also analyse tax system and its evolution, the participation of tax categories and municipality tax in central and local budgets and give specific accentuation to property taxation, role in the taxation system and local finances. Moreover, we present the institutional structures and their competencies, relationship between central and local institutions. Findings: The current situation and system in place leaves much to be desired and property taxes may have more potential as a revenue source for municipalities. Practical Implications: This article shows the importance for municipalities to find a means to self-finance through their own sources. Originality/Value: We define needs for strengthening the Own Source Revenues (OSR), taking strong and coordinated steps to improve the management and collection of OSRs in general and property tax in particular.
Territorial fragmentation has been viewed as a problem in several countries of Central and Eastern Europe. Georgia is one of very few cases which has introduced an amalgamation reform dealing with this issue. The paper analyses the process of preparation and implementation as well as the consequences of the reform. It shows alternative reform proposals and discussions around them, which led to the selection of the most radical option of territorial consolidation. The paper briefly discusses the role of international aid programmes and especially of the Council of Europe (and the European Charter of Local Government) in structuring the discourse of the reform. On the basis of a public opinion survey and interviews, it shows that in spite of radical character of the reform it did not attract much of public attention, which is related to the fact that local government is not seen as an important element of the Georgian political system. In spite of initial declarations of the goals of the reform, the actual change was limited to the redrawing of administrative boundaries by the omnipotent (Leviathan) state and was not accompanied by parallel functional or fiscal decentralisation. According to some interpretations, the reform led to an even more centralised power structure. The price of the negative consequences of the amalgamation (such as local government being more distant from the citizens) has been paid, but the potential positive results of more capable and powerful local governments have not been achieved. Unreformed financial system has not allowed to reduce regional inequalities in capacity to finance local services either. Central government is afraid that decentralization may strengthen separatist tendencies undermining unity of the country and that is why the government is hesitant to introduce more decentralization.
This project provides an evaluation and analysis of the Education Financing and Management Reform Project. Among the few larger-scope reform projects designed for more expansive changes in the education system of Armenia, Education Financing and Management Reform Project is the most Important, in terms of both its financial aspects and the scale of targeted changes. The project provides an evaluation and analysis of the Education Financing Management Reform Project from two points of view: the choice of textbook and publication/provision and achieving successful decentralization of schools. It will also try to find out to what extent the proposed changes match the general development of the country, thus evaluating the chances of success also from this aspect. With a rather pessimistic attitude regarding the effectiveness of the project, the two project questions will be put in the negative: (i) why is this project irrelevant for achieving improvement of the quality of the general education system in Armenia? and (ii) why this project cannot achieve its concrete goals - improved textbook publication and provision and successful school decentralization? The project comprises of two chapters, each of which covers one of the two questions stated above. The first chapter provides an analysis of the textbook and decentralization components as tools for quality improvement in the general education system. The second chapter analyzes the actual chances of the project to achieve its concrete objectives - successful textbook publication and provision, and school decentralization. For avoiding complication and setting a logical line of analysis, each of the chapters is divided into several sections (some of these having also subsections).
We analyze Georgian education finance and show that it is embedded in the overall structure of Georgian rayon finances, reflecting all their weaknesses: inequalities, lack of transparency, unmanageability, room for corruption. The budgetary and political independence of rayons is very limited. The steep fiscal inequalities between rayons are only partially and ineffectively addressed by the system of transfers. The transfers moreover are heavily negotiated and non-transparent. Thus education finances depend on general income of the rayons, which effectively determines the level of financing. At the same time, however, the role of the rayons in the management of the sector is very limited. The actual spending patterns for Georgian general education schools are very closely related to per capita income of the rayons without the transfers (about 75% of education spending), and to student teacher ratio (about 25% of education spending). The dependence of the education system on rayon wealth is our main empirical finding, and it contradicts widespread belief among Georgian education professionals. It is not surprising therefore that the education sector in poorer and in mountainous rayons with very low student teacher ratio has to adapt to this situation. It responds by reducing the number of teachers per class, thus lowering standards of service delivery despite high per student costs. The first step required to change this situation is to increase budgetary independence and education management role of rayons. Without strong local governments it will not be possible to decentralize Georgian education. Moreover the influence of fiscal inequalities on education finance should be broken by taking it out of general rayon income and by basing it on a per student education grant to rayons (education subvention). This would lead to significant redistribution of public funds in Georgia. Such a move needs to be carefully prepared. It is necessary to subject education subvention to buffer mechanisms, in order to protect rayons from drastic changes to their present education spending patterns. Moreover, Georgia should begin thinking about a per student formula for education subvention, which recognizes unavoidable higher per student costs of providing education in different geographical and social settings.