ISET

ISET Economist Blog

A blog about economics in the South Caucasus.
Mar
07

Consumer Rights in Georgia

On the 15th of March 1962, President John F. Kennedy delivered a seminal speech to the congress, outlining the four rights that he considered essential for consumers: the right to safety, the right to be informed, the right to choose, and the right to be heard. Ever since Kennedy’s speech, the idea of consumer protection blossomed both in theory and in practice. In this year, 52 years after Kennedy’s speech, Georgia will pass a new law on the protection of consumer rights. Let us have a look at consumer protection in general, in Georgia, and at the ...
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Guest — Eric
One can check Friedman's opinion on this. But, regardless, the market is very good at generating information that is demanded by c... Read More
Sunday, 09 March 2014 11:11 PM
Guest — Florian
Would Friedman agree that we need a regulation that forces companies to be transparent? Arguably, Friedman would insist that marke... Read More
Sunday, 09 March 2014 10:10 PM
Guest — Eric
I don't think Friedman would be against transparency. To be able to choose people should know what they are buying. But there is a... Read More
Sunday, 09 March 2014 9:09 PM
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Mar
03

Tiger in the Caucasus?

On the 14th of February, the Ministry of Economy and Sustainable Development of Georgia published the draft version of the Socio-economic Development Strategy 2020 (SDS). This comprehensive document identifies the main socio-economic challenges Georgia will be facing in the next years and presents a strategy how to cope with them. The overall goal is to achieve sustainable and inclusive growth until the end of this decade. The spirit of the document very much reflects the principles of the new government. There is no belief in the self-regulatory power o...
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Guest — vato
While the so called vision 2020 emphasizes the need for export orientation it does not tackle the issue on how shall Georgian busi... Read More
Monday, 03 March 2014 2:02 PM
Guest — Ia
More optimistic view: If South Caucasus tiger does not exist (any more) we need to think up ways how to built appropriate "zoo" f... Read More
Wednesday, 05 March 2014 1:01 AM
Guest — Eric
Tigers are long extinct in the South Caucasus... Only their paper version (wrapped in tiger skin) may be found in bookstores...
Tuesday, 04 March 2014 12:12 AM
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Feb
24

Should We Regulate?

Last week, we argued that political decision makers have a tendency to overregulate a society, as new laws, even useless or harmful ones, create the impression that politicians are addressing problems in a society. Moreover, we outlined the theory of a military historian who claims that the Red Army was an “overregulated army”, explaining the disproportionate death toll of the Red Army in the Second World War. In today’s article, we will first look at the advantages of regulation, and we will then propose a set of tools called “Regulatory Impact Analysis...
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Guest — G.T.
RIA of RIA is not defined ) Also, RIARIA in Georgian means "mess"
Tuesday, 25 February 2014 3:03 AM
Guest — Eric
The RIA methodology could be used to assess the costs and benefits of making RIA an obligatory step in the introduction of any new... Read More
Monday, 24 February 2014 11:11 PM
Guest — Eric
This really depends on the level at which the minimum wage is set relative to average wage. See full list of countries: http://en.... Read More
Tuesday, 25 February 2014 7:07 PM
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Feb
17

Regulating Rightly

Regulations apparently address problems of a society in a quick and uncomplicated way, and the call for regulations therefore is one of the most effective weapons in the arsenal of populists. Whether or not a regulation will help to solve the problem, in any case it creates the impression that politicians are doing something. As regulations are so popular among political decision makers, the US Code of Federal Regulations, not including regulations on state level, in 2009 had 163,333 pages. In this article we discuss the cost of regulations, an aspect th...
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Guest — NP
Very nice piece! Looking forward to read next blog on the topic!
Monday, 17 February 2014 3:03 PM
Guest — Y
And so dictatorship is nothing but an extreme case of micromanagement... Only to think that a good business training course could ... Read More
Wednesday, 19 February 2014 9:09 PM
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Feb
14

When Morals Constrict the Markets

It is well known that government intervention, be it through taxation or regulation, can obstruct the functioning of markets. Yet there is another kind of influence that may also have strong effects on the efficiency of an economy but is much less discussed, namely the set of values, traditions, and moral standards a society subscribes to. To some extent, the moral framework of a society is reflected in its legal system and in this way affects the economy, but more often an informal consensus that some things should or should not be done in certain ways ...
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Guest — Adam
There was a nice discussion a few years ago between Mike Munger and Russ Roberts about "euvoluntary exchange" in markets:http://ww... Read More
Friday, 14 February 2014 11:11 AM
Guest — Eric
This is not only about voluntary exchanges. How about growing weed for own consumption or using "corporal" punishment as an educat... Read More
Friday, 14 February 2014 5:05 PM
Guest — blintu
How about selling own life for money? Or selling your child as a slave? These are not allowed for the moral issues, if not that, t... Read More
Tuesday, 18 March 2014 7:07 PM
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Feb
03

The Lari Depreciation

The value of a currency, measured in terms of other currencies, has consequences for the real economy. A more expensive lari, for example, makes it more profitable to import goods into Georgia. The importer has to pay the foreign goods with foreign currency, and when the lari is more valuable, less lari are needed to pay for them. Driven by competition, importing companies will forward some of this cost reduction to the consumers and charge lower prices for imported goods. At the same time, an appreciation of the lari puts a burden on exporters. A bottle...
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