ISET

ISET Economist Blog

A blog about economics in the South Caucasus.
Jun
28

Georgian Banking Sector Development: Is There Room for Growth?

The Georgian economy faces many challenges, not least of which are access to finance and the extremely high cost of financing private enterprises. With the cost of borrowing (real interest rate) reaching 17.3% on average in April 2013, businesses find it very difficult to function, let alone invest in innovative technologies, long-term growth and development. These challenges can be directly traced to issues raised in one of the ISET Economist blogs: the Georgian financial industry is still very far from being a well-developed, efficiently functioning sy...
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Guest — jaswinder singh mavi
dear friend, I am not a big economist.I know one basic thing that to Bank we go for keeping our money safe and to borrow money if... Read More
Friday, 28 June 2013 5:05 PM
Guest — YB
Dear Sir, thank you very much for your comments and your question. You are right in pointing out that the kind of businesses that... Read More
Sunday, 30 June 2013 2:02 AM
Guest — jaswinder singh mavi
dear friend, I am not a big economist.I know one basic thing that to Bank we go for keeping our money safe and to borrow money if... Read More
Friday, 28 June 2013 5:05 PM
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Jun
21

Regional Disparities in Georgia

Regional development policy, defined as aid and assistance given to economically less developed regions, is an issue for almost every country that seeks territorial unity. Putting the arguments of equity or efficiency aside, states with high regional disparities are potentially exposed to the political risk of disintegration. This threat can come from both developed and underdeveloped regions. While more advanced regions are capable of independence and might even decide to strive for secession, weaker ones, especially those bordering unpleasant neighbor-...
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Guest — Eric Livny
While Michael is not signed on this post, I recognize his handwriting. Two points.FIRST, I don't quite understand the rationale fo... Read More
Friday, 21 June 2013 7:07 PM
Guest — RT
Sorry, can you change a legend to the last chart? Not quite clear what KK, MM, etc are. P.S. I can guess but not everybody will :-... Read More
Friday, 21 June 2013 8:08 PM
Guest — Nino
RT, thanks for the suggestion. I will, if possible. However, I assume all those interested in the regional development of Georgia ... Read More
Friday, 21 June 2013 9:09 PM
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Jun
03

Riding the Dragon

Cultural and intellectual achievements herald economic success of a people, and the Chinese cultural and intellectual heritage is breathtaking. The Chinese discovered gunpowder, the compass, and the movable type printing press long before the Europeans. Admiral Zheng He’s fleet reached Mogadishu and Mombasa with up to 28,000 sailors at the same time when the Europeans set out to discover Africa with crews of not more than 300 sailors. Temporarily lamed by Mao and his followers, capitalism has unleashed the dragon once again! China is about to become the ...
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Guest — Eric Livny
A very interesting undertaking, thanks for posting. There is a development theory attributed to Alexander Gershenkron (http://en.w... Read More
Monday, 03 June 2013 10:10 AM
Guest — Simon Appleby
Good to see this analysis, well done. Xinjiang Hualing is a private company, albeit with close connections to the Chinese governme... Read More
Monday, 03 June 2013 10:10 AM
Guest — M
There is a history of Chinese immigration into Georgia jumpstarting domestic industries: "[...] a tea-specialist named Liu Junzhou... Read More
Monday, 03 June 2013 12:12 PM
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May
10

What Can Be Achieved Through Better Education?

When speaking about unemployment, arguably the sorest problem in many market economies, “better education” is one of the standard remedies proposed by economists. This recommendation is given to rich and poor countries alike. Yet since I am in Georgia, I am increasingly skeptical about this recipe. To what extent can the education and training of people, or, to use the economic term, the accumulation of human capital, foster economic development? In Georgia, you may have studied law and you really know your trade, but there is an oversupply of lawyers, a...
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Guest — Eric Livny
I think I tend to agree with (some of) the libertarian arguments. Of course, the oversupply of formally trained lawyers, internati... Read More
Friday, 10 May 2013 11:11 AM
Guest — Nikita
I agree that young people’s (and their parents’) educational choices may be informed by extraneous considerations. However, I also... Read More
Friday, 11 July 2014 1:01 AM
Guest — Zahra
Improvements demands creativity (which were not included in Soviet education system) and hardworking (reasons of which is ambiguou... Read More
Monday, 10 February 2014 11:11 PM
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Apr
29

Fiscal Transparency

Would you like to buy in a supermarket where the supermarket owner decides what you will get for your money after you made the payment? Such a supermarket would arguably not attract many customers. Yet although this is an odd allegory, a good deal of our consumption we all make in exactly this way – and we are even forced to buy! We pay taxes to the government, and afterwards politicians decide what we get for this money. Sellers serving private customers have to deliver value for money. You won’t buy a second time in a grocery store if the food was spoi...
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Guest — Sanjit
Good stuff Giorgi and Florian. Very clearly explained. Keep it up. A good explanation is often a good signal of good understanding... Read More
Monday, 29 April 2013 8:08 AM
Guest — Florian
If I understand you correctly, the government, assuming it is better informed than the general public, should pretend that a negat... Read More
Monday, 06 May 2013 8:08 PM
Guest — Giorgi Mekerishvili
I was waiting that the author would make "citizens' lack of identification with the society" a central point as I was reading thou... Read More
Monday, 29 April 2013 10:10 AM
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Apr
23

Jobless Growth in Georgia

There is no arguing that during the ten years since the Rose Revolution, the Georgian economy registered an impressive growth performance, averaging 6.6% per annum. Summing up Georgia’s post-2004 growth experience, a recent ISET-PI study (Babych and Fuenfzig (2012)), finds it “remarkable not only in light of the 5.3 percent average growth rate in the 1995-2002 period, but also considering that the average GDP growth rate for European and Central Asian developing countries was about 5.1 percent in the period between 2003-2010.” Yet behind the gliste...
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Guest — test
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Tuesday, 23 April 2013 8:08 PM
Guest — Eric
test 5
Tuesday, 23 April 2013 9:09 PM
Guest — M
What is the evidence for the alleged skill mismatch? When me and Yasya were working on the growth diagnostics study we were lookin... Read More
Thursday, 25 April 2013 3:03 PM
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