Essay --

Agriculture plays an important role in the economic development of the country. It produces not only food and raw material but also a large portion of the workforce is engaged in this field (more than 50% in Georgia) . Agriculture is characterized by the presence of risk factors, and hence it is very important to know how to deal with these hazards. Risk factors can be not only biological or climatic variability, as well as fluctuations in prices. Unlike other manufacturers, for farmers and also for privet companies which are involved in agriculture it is difficult to predict the revenues and therefore profits from their activities. Therefore, insurance in agriculture is regarded as the one of the most important and effective way of rick management. It’s very interesting to look through the frameworks of insurance systems in developed countries and also study the experience of developing countries. As well the discussions about tendencies and problems related to insurance in developing countries. As it seems half of the worldwide agriculture insurance comes for US, and less than one-third comes for Western European states. Only three percent comes for Central and Eastern European countries of the world's agricultural insurance. Downstairs on the table we can see the availability of agricultural insurance around the world. In developed countries, there are different types of insurance systems. One of them is the privet insurance system in case of which the insurance companies provide the total compensation for losses and there is no government subsidy for premiums. This kind of insurance system works in Finland, in Germany and in France and in a few other developed countries. Private companies typically insure only certain risks... ... as the reinsurer and they forming entire system and working with it. In this case state should have the role organizer and should put the first capital in this type of insurance companies. The main founders of this system should be the farmers, agricultural cooperatives and peasantry, and also the farmers who have the status of an independent legal entity. I think, taking into account the situation of are in Georgia in this field, I mean, considering natural climate risks, at least in the first stage of all crops and agricultural sectors to be insured should be mandatory for government. Also, it will be interesting to divide Georgia as western and eastern parts and create the self-insurance funds or communities in these two regions. It will be more risk averse for farmers and it will diversify the risks. I will work to make deep this idea and apply to Georgia. â€Æ'