ISET

ISET Economist Blog

A blog about economics in the South Caucasus.
Jun
24

How Can You Be Sure? On the Agricultural Insurance in Georgia

  BACKGROUND Agricultural production is associated with a variety of risks, including market, institutional, and production risks. An important production factor in agriculture is the weather. Its uncontrollable nature makes weather risk the prevailing risk to agricultural production. Farmers have various informal and formal means of transferring and mitigating these risks. Informal means include savings, diversification, off-farm activities, etc. The most common formal means of risk mitigation is insurance. Insurance is a contract that transfers th...
Rate this blog entry:
Continue reading
591
0 Comments
Write a Comment
May
07

Georgia’s Economy Grows, Agriculture Shrinks: What Should We Do?

Since 2012, when the political party Georgian Dream took leadership of the country’s governance, economic [real] growth reached its highest rate in 2017 (5.0%). The drivers of this growth were construction (11.2%), hotels and restaurants (11.2%) and the financial sector (9.2%). However, a few sectors of the economy declined in 2017, and one was agriculture (-2.7%). Experts on this sector agree that 2017 was a “bad year” for Georgia’s agriculture. Winter lasted longer and spring frost damaged fruit plantations. This was followed by some periods of drought...
Rate this blog entry:
Recent Comments
Simon Appleby
The growth in the construction industry is largely driven by foreign investment, both equity and debt, and supplemented by locally... Read More
Monday, 07 May 2018 10:10 AM
Pati
Thanks, Simon!Nobody should question the importance of FDI for Georgian agriculture. What we should question, however, is the tran... Read More
Tuesday, 22 May 2018 3:03 PM
Continue reading
1243
2 Comments
Write a Comment
Mar
18

Rising Generation of Georgian Agripreneurs

According to the ILO’s Global Employment Trends Report, agriculture accounts for 32% of total employment globally, and 39% in Asia and the Pacific. In spite of this, it seldom tops young people’s “most wanted” wish list of careers. In developed countries like Korea and Australia, employment in the agricultural sector is gaining more and more popularity, however, moving back to the countryside in developing nations remains associated with poverty, inefficiency and lack of progress. In Georgia, the majority of the population is employed in agriculture, but...
Rate this blog entry:
Continue reading
1628
0 Comments
Write a Comment
Mar
28

Farmer Groups: Why We Love Them, Why We Do Them and Why They Fail

As Georgia embarks on an ambitious program to develop farmer organizations, it is worth considering both the positive and negative lessons from the experience of similar initiatives, both in Georgia and elsewhere in the developing/transition context. The piece by Tim Stewart, originally published on www.springfieldcentre.com, identifies some of the main reasons for the failure of start-up farmer organizations. The challenge for Georgia is to learn from these mistakes in planning and implementation, and ensure improved coordination among the many cooks in...
Rate this blog entry:
Recent Comments
Guest — NP
Great piece!
Friday, 28 March 2014 4:04 PM
Guest — Adam
This is a great piece, indeed. Very thought-provoking, particularly when it comes to assessing the reasons for failures in previou... Read More
Friday, 28 March 2014 8:08 PM
Guest — Juan Echanove
Very fancy article. And quite dogmatic too,despite the cooll lingo.Back in 2008,Mike Albu, one of the ''M4P sect' gurus already r... Read More
Friday, 28 March 2014 10:10 PM
Continue reading
2612
11 Comments
Write a Comment
Sep
18

Does Productivity Increase with Farm Size?

Ukraine’s agriculture started progressing after the land reforms of 2001, which established an effective land rental market. While the titles to land still belong to former kolkhoz and sovkhoz members, agricultural land can now be easily aggregated and leased to interested businesses. Given the ease of entering and exiting the industry (and of extending farm size), this reform has unleashed a fast process of land consolidation (particularly until 2008) and productivity growth. Some of Ukraine’s largest farms currently span close to 150,000ha.  For c...
Rate this blog entry:
Recent comment in this post
Guest — Simon Appleby
An interesting study. The data from Ukraine coincides with what most managers of graingrowing properties in developed countries wi... Read More
Thursday, 19 September 2013 1:01 PM
Continue reading
2622
1 Comment
Write a Comment
Dec
10

Economic Growth and Income Inequality in Georgia

Poverty and income inequality are two of the top concerns for the newly elected Georgian government. Indeed, despite impressive growth performance (annual growth rates have averaged more than 6% since 2005), Georgia remains a poor country. Once the wealthiest Soviet republic, Georgia fell far behind others (except, perhaps, Tajikistan, Kyrgyzstan and Moldova) on almost any parameter of wellbeing. Adjusted for purchasing power parity, Georgia’s annual income per capita in 2011 was in the $5,400-5,800 ballpark (very similar to the resource-poor Armenia). M...
Rate this blog entry:
Recent Comments
Guest — Nika
mokled ra mainteresebs chvenma axalma mtavrobam sityvaze rom gaxsnas ramdenime qarxana ar vici romel sferoshi(movifiqrebt mere) da... Read More
Monday, 10 December 2012 10:10 PM
Guest — Juan Echanove
Excellent analysis, indeed, which I largely endorse.Just an important issue to mention: for reaching economies of scale in agricul... Read More
Tuesday, 11 December 2012 4:04 PM
Guest — Eric
Juan, many thanks for your comment. I am sorry to have removed the land consolidation part to this new blog post http://www.iset.g... Read More
Wednesday, 12 December 2012 12:12 PM
Continue reading
4794
4 Comments
Write a Comment

Our Partners