ISET

ISET Economist Blog

A blog about economics in the South Caucasus by ISET
Jan
14

How Can We Revitalize the Struggling Georgian Agricultural Sector?

LEFT BEHIND Between 1990 and 1994, the Georgian economy experienced one of the sharpest declines in economic activity in recent history, with GDP per capita falling by more than 70 percent. Since then, however, especially after 2003, it has been growing quite fast, with the Georgian GDP per capita overtaking the 1990 level in 2013. However, the Georgian agricultural sector, in the same period, has been characterized by a quite different trend, as shown in Figure 1. Figure 1. GDP Per Capita and Agriculture Value Added as a Share of GDP During the crisis ...
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Pati Mamardashvili
I think that the capitalizing input vouchers in land values was not a huge problem for Georgia (not comparable with some other cri... Read More
Wednesday, 18 January 2017 5:05 PM
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May
11

Georgia in the Cycle of History

The second of May, 2015, may well go unnoticed by historians of the future; but I am convinced that it marks a watershed not only in Georgia’s recent evolution – but also, maybe, in the history of our times... On the surface of life, this Saturday marked maybe the Saturday when tourists finally returned to Tbilisi. At about 2 p.m. spotted a group of about thirty Dutch tourists assembling near the Marriot Courtyard hotel; and there were two further groups moving slowly down the sidewalks of Leselidze Street. Maintaining the festive note, the converted Lon...
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Guest — mfmsm
1 May was the day that the Georgian Parliament introduced a new provision into the visa and migration legislation of Georgia 'maki... Read More
Saturday, 16 May 2015 10:10 PM
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Nov
25

Economic Reflections in the Kakheti Mountains

Over the last weekend I was invited by an international development bank to run a workshop in the nice Hotel Eden in Kvareli, Kakheti. The topic of the workshop was “Georgia’s economic future”. We started the workshop by discussing the great promise of development economics: “Do the right policy, and you’ll be fine”. Economists like Thorvaldur Gylfason like to show the growth paths of pairs of countries with somewhat similar characteristics, like Mauritius and Madagascar, Singapore and Malaysia, Botswana and Nigeria, and Ireland and Greece. In these pair...
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Guest — Eric Livny
Having just come from Korea, and having observed the Korean economic miracle from close range (thought not at great depth), I can ... Read More
Tuesday, 25 November 2014 4:04 PM
Guest — NP
Very nice! Now, here is a (provocative?) comment about the following statement (and what follows it). "Afterwards, a country has t... Read More
Tuesday, 25 November 2014 4:04 PM
Guest — Adam
I still think there's plenty of room for growth in all sectors in Georgia and I see catch-up growth everywhere I go. There's now a... Read More
Tuesday, 25 November 2014 8:08 PM
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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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Oct
14

Is Capitalism the Final Stage of History?

No. In this two-part article I will argue that there are challenges to capitalism on the horizon which are virtually unsurmountable. There are good reasons to believe that in 30 years from now we will not see global dominance of market systems anymore. FUKUYAMA VS. MARX A few weeks ago, one of the worldwide most influential thinkers of the last 30 years visited Tbilisi to give a speech at the Free University: Francis Fukuyama. Fukuyama became famous through his book The End of History and the Last Man (1992) which offers a reinterpretation of Hegelian id...
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Guest — Eric Livny
Putting this article out is surely an act of bravery. I'll be very happy to continue discussing after you publish the second part.... Read More
Tuesday, 14 October 2014 10:10 AM
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Sep
30

The Ice Bucket Challenge: Does Motivation Matter?

In summer, social media were flooded with videos showing your friends (and celebrities of all levels of prominence) pouring buckets of icy water over their heads. While some people enjoyed watching this (and even participated in the Ice Bucket Challenge), many were unnerved by this charity campaign which was hardly distinguishable from an ordinary spam attack, were it not for the fact that now your friends and acquaintances were spamming you. A third group however, showed the most interesting reaction: they became moral about it. For those who do not kno...
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Guest — Eric Livny
This discussion is quite relevant to a very wide range of phenomena. For instance, what immediately springs to mind is the concept... Read More
Tuesday, 30 September 2014 11:11 AM
Guest — Gregory Levonian
Florian and Saba are right, but for the wrong reasons. To condemn selfish motivations for doing good deeds is flawed. One could ar... Read More
Tuesday, 30 September 2014 3:03 PM
Guest — Zurab Garakanidze
how can I submit a blog?
Tuesday, 30 September 2014 4:04 PM
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