ISET

ISET Economist Blog

A blog about economics in the South Caucasus.
Dec
12

Russo-Turkish Drama: a Christmas Gift for the Georgian Economy?

A “STAB IN THE BACK” AND ITS “GRAVE CONSEQUENCES” On November 24th, a Turkish Air Force fighter jet shot down a Russian SU-24 that briefly strayed into its airspace. One pilot was killed, and another member of the Russian military perished in the rescue attempt. Vladimir Putin called the event a “stab in the back” even though he had turned his back on Turkish warnings about incursions into its airspace. Turkish President, Recep Tayyip Erdogan, facetiously stated that Turkey would not apologize for the event and that Russia should be the one apologizing. ...
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Simon Appleby
Turkey's fresh produce prices plummeted 40% last week. Given that the EU likewise is facing difficulties selling vast amounts of f... Read More
Sunday, 13 December 2015 6:06 AM
Eric Livny
40% is amazing! Turkish trucks are apparently being turned back, which surely explains it. When writing this piece I have read abo... Read More
Sunday, 13 December 2015 7:07 AM
Simon Appleby
The Turkish government can probably get donor co-funding to buy surplus food for distribution to the Syrian refugee camps in Turke... Read More
Monday, 14 December 2015 10:10 AM
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Oct
29

Nagorno-Karabakh: Peace ex Machina?

Negotiation support systems (NSS) let computers be brokers in multidimensional and highly complex negotiation problems. In the last 20 years, platforms like Smartsettle and Inspire were used in thousands of serious negotiation cases around the world, many of which were successfully resolved. Some years ago, the first author of this article was involved in an attempt to use NSS for settling a dispute between the Israeli government, which wanted to shut down one of its departments, and a labor union, which represented the employees who were affected. The m...
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Oct
08

Elites That don’t Compete

The Six Nations Championship is an annual rugby competition featuring an exclusive club of European nations: England, France, Ireland, Italy, Scotland, and Wales. The Six Nations Championship is considered the “elite” rugby tournament of the Northern Hemisphere, matched only by another international “elite” tournament, simply called The Rugby Championship. The Rugby Championship is played out in another closed group, made up of Argentina, Australia, New Zealand, and South Africa, all belonging to the Southern Hemisphere.  These are the elite rugby l...
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Guest — Givi
Dear Florian,A very well-argued and relevant article indeed considering the recent public interest in the U.S. regarding the outra... Read More
Wednesday, 21 October 2015 9:09 PM
Eric Livny
An excellent comment, Givi! The top CEOs are fiercely competitive by their very nature. Money is certainly important for them, but... Read More
Thursday, 22 October 2015 9:09 PM
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Jun
08

The Ukrainian Malaise: Will Georgians Save the Day?

When Georgia ran into a conflict with its northern neighbor in 2008, it experienced considerable solidarity on part of its main Western ally. The United States supplied military transporters to fly back Georgian troops from Afghanistan, which was correctly understood by the Russians as a warning that the US would not allow Georgia to fall. While the Russians had already taken Gori, Condoleeza Rice and Michail Saakashvili held a joint press conference in Tbilisi, just 80 km away. Surprised by the American determination to defend small Georgia, the Russian...
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Guest — Megiddo
Eric, the nice thing about this dispute is that we can just wait and see who was right . Relatively soon we will know the performa... Read More
Monday, 08 June 2015 10:10 PM
Guest — Eric Livny
I don't think the Western treatment was all that different. There were no (and will not be) NATO boots on the ground in either Geo... Read More
Monday, 08 June 2015 9:09 AM
Guest — Lasha Lanchava
It reads like a post-mortem justification of what you call a pragmatic approach (And I know you are doing it out of curiosity, wit... Read More
Monday, 08 June 2015 10:10 AM
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May
29

Georgia’s Underground Economy

Economic activities which are not registered (and therefore not taxed) are commonly called Shadow Economy or Underground Economy. Are there shadowy corners in Georgia’s economy? Not just corners! According to Schneider, Buehn, and Montenegro (“Shadow Economies All over the World – New Estimates for 162 Countries from 1999 to 2007”, Policy Research Working Paper 5356, The World Bank 2010), based on estimates for 2007, Georgia has by far the largest shadow economy (as a share of GDP) among all surveyed 21 transition countries. 62.1% of all economic activit...
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Oct
21

Market Twilight

Last week, I began to discuss the question whether Francis Fukuyama’s hypothesis about convergence to liberal democracy and capitalism is at least partially right. While the countries of the world have not been moving towards democracy in the last 25 years, he could still be right that the future belongs to the markets. This week, however, I will argue that this is not the case. CAPITALISM OF THE PAST: WARM AND COZY In the works of libertarians like Ayn Rand and David Friedman, one can find a deep-rooted conviction that the outcomes of markets are not on...
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Guest — Eric Livny
Interesting stuff, but I did not quite understand how computer-assisted planning will help humans in their race against the machin... Read More
Tuesday, 21 October 2014 3:03 PM
Guest — Eric Livny
Florian, proving a theorem is very different from inventing one :-) I know a lot of creative people with very little problem solvi... Read More
Wednesday, 22 October 2014 8:08 PM
Guest — Florian
Eric, thanks a lot for your comment.Once my techno-communism was implemented, there is no need anymore for humans to race against ... Read More
Tuesday, 21 October 2014 5:05 PM
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