ISET

ISET Economist Blog

A blog about economics in the South Caucasus.

Nino Doghonadze was born in Kutaisi, Georgia on December 30, 1988. She holds a Master's degree in economics from the International School of Economics at Tbilisi State University (ISET). Nino is a new addition to ISET Policy Institute, as she joined in July 2012. Mrs.Doghonadze is conducting research and providing economic policy consulting. Additionally, she also teaches Principles of Economics at Tbilisi State University's International School of Tourism.

May
26

Discrimination in Georgia

On May 2, 2014, the Georgian parliament unanimously passed the law on the elimination of any form of discrimination. The stated objective of the law is to ensure that any physical or legal entity equally benefits from all rights defined by Georgian legislation, irrespective of race, skin color, language, sex, citizenship, place of origin, birth or residence, wealth or class status, religion or belief, national, ethnic or social belonging, profession, marital or health status, disabilities, sexual orientation, gender identity, political or other considera...
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Mar
17

"Inclusive Growth" Policies: Roads Paved with Good Intentions

The recently published government strategy “GEORGIA 2020” aims “to ensure that the majority of Georgia’s population benefits from economic growth”. The natural million-dollar question, however, is how this “inclusive growth” objective could be achieved in reality. In other words, how to make sure that the economy grows while creating jobs and business opportunities for the poor. Before delving into this “how” question, let’s state the obvious trade-off: efforts to achieve inclusivity by means of aggressive income redistribution (e.g. increased social ben...
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Feb
21

Lending by Georgian Banks Boosts Savings and Provides Shelter from Relatives in Need

Georgian households, being as poor as they are, don't save enough for the rainy day. Do low savings imply that Georgians are impatient to consume and do not care about their future? Is it in our genes that we prefer today’s egg to tomorrow’s chicken? Maybe our history, the history of a small nation struggling for survival, taught us to live our lives one day at a time? Let’s face it: while culture may definitely play a role in people’s attitude to saving (an issue to which we will come back in the second part of this article), the vast majority of G...
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Dec
13

On Imitation, Forbidden Fruits, and Sour Grapes

For many observers, the Georgian job market is a mystery. Companies are bitterly complaining about a lack of engineers, forcing them to withhold the expansion of production capacities and to cut down investments. Yet Georgian young people, who could make good fortunes by studying technical subjects, prefer to learn law, business administration and the like, qualifications that are oversupplied in the market and on average do not yield high salaries. Young Georgians, lacking information on what sells well in the job market, apply a simple decision rule ca...
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Nov
04

From Thieves-in-Law Towards the Rule of Law

Thomas Hobbes (1588-1679) in his Leviathan describes the conditions where “there is no place for Industry; because the fruit thereof is uncertain; and consequently no Culture of the Earth; no Navigation, nor use of the commodities that may be imported by Sea; no commodious Building; no Instruments of moving, and removing such things as require much force; no Knowledge of the face of the Earth; no account of Time; no Arts; no Letters; no Society; and which is worst of all, continual fear, and danger of violent death; And the life of man, solitary, po...
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Sep
27

“You Merchants Are Cowards”…

In the very first class on the Principles of Economics we teach our students how beneficial trade is. We explain that voluntary exchange (trade) increases overall welfare and is mutually beneficial. Economists tend to regard this basic “principle of economics” as an axiom, providing the basis for many other principles of economics and, most importantly, the notion (or fallacy) that “the markets know best”… Perhaps paradoxically, despite the many beneficial features of trade, merchants (i.e. professional traders), rarely enjoy social esteem. One reason fo...
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