ISET

ISET Economist Blog

A blog about economics in the South Caucasus.
Oct
31

To Cut or Not to Cut? Shifting Government Priorities and the Uncertain Future of Georgian Agricultural Cooperatives

“I cannot see any use [for the cooperative I have set up] if I cannot find anywhere [someone] willing to lend us money” Spanish Priest – 1908 (Cited in Garrido, S. 20071) THE GEORGIAN AGRICULTURAL SECTOR AND THE POTENTIAL ROLE OF AGRICULTURAL COOPERATIVES The Republic of Georgia was among the fastest Former Soviet Union countries to implement a large scale land reform and land redistribution plan, starting in 1992. Land redistribution resulted in the formation of hundreds of thousands of small family farms, replacing large-scale collectives and productio...
Rate this blog entry:
Recent comment in this post
Eric Livny
One question not addressed by the authors (and by ENPARD, and by ACDA) is what type of farmer cooperatives we are seeking to devel... Read More
Thursday, 03 November 2016 11:11 AM
Continue reading
1841
1 Comment
Write a Comment
Oct
29

Georgian Agriculture: Beacon or Red Lantern?

A question of causality: Does modernization of agriculture lead to economic growth or does growth induce a modernization of the agricultural sector? For many years, this question has been hotly debated among development economists. While those economists who believe in growth-led agriculture (GLA) were dominating until recently, now the proponents of agriculture-led growth (ALG) are afloat again. Which insights does this debate yield for Georgia? THE TRADITIONAL VIEW For a long time, the question seemed to be settled. If one asked a development economist...
Rate this blog entry:
Recent Comments
Florian Biermann
Thanks a lot, Simon, for this interesting reading suggestion!
Friday, 11 November 2016 12:12 PM
Simon Appleby
For heartbreaking real-life case studies of Chinas GLA model, where Chinese peasants were pillaged through punitive taxation (up t... Read More
Thursday, 03 November 2016 4:04 AM
Simon Appleby
I would question the rationale for deliberately focussing on labour-intensive agriculture. Six years ago I had rosy visions of com... Read More
Thursday, 03 November 2016 5:05 AM
Continue reading
1992
4 Comments
Write a Comment
Oct
24

The Shortest Road to Strawberry Field Isn’t Always the Sweetest, or Quickest

Nino Kvirkvelia and her husband Irakli Todua are not exactly your typical Georgian smallholders. Both spouses are well-educated (both hold economics and business degrees from reputable Georgian institutions). More importantly in the context of Georgian agriculture, the couple owns 28(!) hectare of arable land in Georgia’s horticultural heaven, Samegrelo, best known for its hazelnuts. This is a fantastic amount considering that the average size of agricultural plots in Georgia is only slightly above 1ha. A natural born entrepreneur, Irakli was among the f...
Rate this blog entry:
Continue reading
1863
0 Comments
Write a Comment
Oct
22

Back to the Future: Will an Old Farming Practice Provide a Market Niche for Georgian Farmers?

Back in ancient times, the moon was the center of everybody’s attention. People worshipped the moon and believed that it had mystical powers. Since then, the lunar effect on human mood and behavior has been an issue for psychological and astrological research. Surprisingly, many economic papers are also concerned about the influence of the lunar phases on stock returns. Yuan et al. (2006) found that stock returns (defined as the change in the value of a stock market index) are higher during the new moon period than during the full moon period. This ...
Rate this blog entry:
Continue reading
1905
0 Comments
Write a Comment
Oct
17

Khachapuri Index, Exchange Rate Dynamics and International Tourism

One glance at the ₾Khachapuri Index chart (for locals) tells the whole story of Georgian agriculture. Left to fend for themselves during the cold winter months, Georgian cows produce very little milk, sending dairy prices through the roof. Conversely, milk production peaks with the arrival of sunny weather and green fodders in early spring, leading to a collapse of milk prices. In the absence of large-scale industrial milk production (that does not depend as much on climate and weather conditions), the roller coaster image repeats itself, year in and yea...
Rate this blog entry:
Continue reading
1469
0 Comments
Write a Comment
Sep
19

What Do Politicians Promise Us: a Popular Guide to Political Platforms on Agriculture

“To win the people, always cook them some savory that pleases them.” ― Aristophanes, The Knights As the Election Day of October 8th approaches, we hear more and more about the platforms of Georgian political parties. Given that political competition is very fierce, one naturally expects to hear some blatantly populist statements – the kind of political promises (known to humanity from the times of Aristophanes) which are very popular among the voters, but are hard or impossible to implement in practice. Thus, for example, the reform of the tax syste...
Rate this blog entry:
Recent comment in this post
Hans Gutbrod
very useful. Thanks for your analysis and sharing this. I thought the UNM had updated their policies over the summer, as they had ... Read More
Monday, 19 September 2016 8:08 AM
Continue reading
1491
1 Comment
Write a Comment

Our Partners