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ISET Economist Blog

A blog about economics in the South Caucasus.
Oct
22

One Step Forward on a Long Journey

  “With the Fourth Industrial Revolution (4IR), humanity has entered a new phase. The 4IR has become the lived reality for millions of people around the world, and is creating new opportunities for business, government and individuals” – Klaus Schwab, Founder and Executive Chairman, World Economic Forum. The 4IR, as envisioned by Professor Schwab, is about breakthroughs in the fields of artificial intelligence, genetics, computing, etc. that are changing the world in which we live at breathtaking speed. With this vision in mind, the World Economic F...
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Oct
22

No Country for Wheat Trucks?!

About two months ago, the Georgian government announced the introduction of restrictions on wheat imports and their transit by road transport. However, this idea was soon abandoned in the wake of a concerted backlash from a number of stakeholders (including small-scale wheat importers, truck drivers, and flour-milling plants that use road-imported wheat). The culmination of the subsequent protests saw one truck driver scale the roof of the building of Revenue Service’s customs clearance zone, pour gasoline and threaten to set himself on fire. In response...
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Oct
01

Georgia Becomes a Net Importer of Electricity Even During the Summer Period

  In August 2018, Georgian power plants generated 985 mln. KWh of electricity (a 5% decrease in total generation, compared to the previous year and a 22% decrease with respect to July 2018), while consumption of electricity on the local market was 1,049 mln. kWh (+1% compared to August 2017, and -4% with respect to July 2018). Consumption to exceed generation by 64 mln, which is 6% of total consumption and 7% of the amount generated. As it can be seen in Figure 1, the emergence of a generation-consumption gap was not totally unexpected. Not only it...
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Jul
09

Great Expectations: Does the DCFTA Really Boost Georgia’s Economic and Export Potential?

On June 27, 2014, Georgia and the EU signed an Association Agreement (AA) and its integral part – the Deep and Comprehensive Free Trade Area (DCFTA). On July 1st, 2016, DCFTA fully entered into force. Until then, trade between Georgia and the EU was regulated by the Special Incentive Arrangement for Sustainable Development and Good Governance that contained a Generalized System of Preferences+ (GSP+) agreed to in 2005.  GSP+ covered 7,200 products for which the customs duty was reduced or eliminated when exporting to the EU market. It is w...
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Recent Comments
Salome Deisadze
Dear Hans, thank you!Indeed, the ban on ownership of agricultural land for non-Georgians should be considered as the hindrance for... Read More
Tuesday, 10 July 2018 1:01 PM
Guest — HansG
interesting post __ a factor you are missing is that the ban on ownership of agricultural land for non-Georgians is not conducive ... Read More
Tuesday, 10 July 2018 11:11 AM
Guest — DavidLee
The European Business Associations mission is: To advocate/lobby for European Businesses in Georgia;To facilitate the development... Read More
Thursday, 12 July 2018 2:02 AM
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Jun
30

Real Estate = Real Investment

Summer is a good time for traveling to the sea, but now I want you to join me in the journey in time. A memory from my childhood in the early 2000s was the discussion among people about the choice between “Khrushovka” and “Chekhuri.” Households were buying flats and making investments in real estate. It is difficult to explore the real reasons why people prefer real estate over other types of investments, but the some of the standard arguments which I was hearing were the following: “if something happens it is still a real estate,” “at least I will have ...
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Jun
18

Georgian and Armenian “Deplorables” and "Desperados" Taking It to the Streets

Georgian and Armenian ruling parties have been until recently basking in the glory of high GDP growth rates. Armenia’s stellar growth performance of 7.5% in 2017 and Georgia’s respectable 5% are, indeed, worthy of praise. However, do these figures really matter for the objective well-being of the majority of Georgians and Armenians? Second, how does economic growth, as measured by GDP, affect people’s subjective perception of happiness? Third, what does it do to crime rates and people’s appetite for political representation, social justice and fairness? ...
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Eric Livny
Ani, I am sure you are a better judge of the Armenian people. From what Ive read, however, there have been quite a number of recen... Read More
Thursday, 21 June 2018 8:08 AM
Guest — Ani
It is interesting to mention about the little degree of patience of Armenians for their rulers, while they could tolerate the same... Read More
Wednesday, 20 June 2018 8:08 PM
Eric Livny
Could not agree more, Simon! I would only add that decent schooling and improved socialization starting from an early age, well be... Read More
Thursday, 21 June 2018 8:08 AM
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