ISET

ISET Economist Blog

A blog about economics in the South Caucasus.
Mar
11

When Carrefour Corners Your Corner Store

In the last few decades, large supermarkets (referring to all modern retail, which includes chain stores of various formats such as hypermarkets, convenience and neighborhood stores) have changed the retail business landscape in many countries through larger store formats, more shelf space, an increased variety of goods and services, and extensive marketing strategies. The so-called “supermarket revolution” has been underway in developing countries since the early 1990s, and supermarkets have now gone well beyond their initial upper and middle class cust...
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Simon Appleby
Well done Irakli on a very comprehensive analysis and some thought-provoking suggestions.In countries that have had a significant ... Read More
Monday, 13 March 2017 3:03 PM
Irakli Shalikashvili
Thanks Simon for your comment. I would also like to add that in Tbilisi trading experience has got a long time period history. So... Read More
Tuesday, 14 March 2017 7:07 AM
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Jun
30

Food Prices Reach Lowest Mark. At Least in Tbilisi

Retail food prices decreased by 7.6% m/m (compared to the last week of May) and 10.1% y/y (compared to June 2015). The biggest drops were observed for tomatoes (-65.5%), cucumbers (-63.3%) and eggplant (-33.7%). Only a few products gained in value. The highest increases were recorded for cabbage (12.8%), tea (7.3%) and rice (7.2%). TBILISI FOOD PRICES REACH MINIMUM?! Retail FPI reached its lowest mark at the end of June with the main drivers being fresh fruits and vegetables. On the one hand, price declines in the fresh produce category are always expect...
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Simon Appleby
Before the breakdown in relations, Turkey exported about USD$2.5 billion worth of fruit/vegetable and nuts to Russia each year. Ru... Read More
Thursday, 30 June 2016 2:02 PM
Eric Livny
Indeed, recovering lost markets is not going to be easy, especially for basic foodstuffs like tomatoes and cucumbers. The French w... Read More
Thursday, 30 June 2016 3:03 PM
Simon Appleby
Even French wine is not guaranteed re-entry, on equitable terms or at all. Russian investors are being offered huge subsidies to e... Read More
Thursday, 30 June 2016 7:07 PM
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Jun
22

Georgian Consumers Outsmarting Supermarket Managers?

Seasons change, and so do Georgian food prices. In the second week of June, Georgia’s major food retail networks (Carrefour, Goodwill, Fresco and SPAR) lowered their prices by an average of 3.9% y/y and 1.8% m/m. Compared to the end of May, prices moved the most for the following food items: eggplant (-21%), pasta (-10.3%) and coffee (-5.7%); wheat flour (+11%), buckwheat (+10.5%) and garlic (+6.8%). THE LAW OF ONE PRICE … WHAT LAW? Why should exactly the same product sell at dramatically different prices in different shops? It shouldn’t. At least that’s...
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Simon Appleby
It is good that you mention the issue of loss leaders. In Europe, America and Australia, farmers and processors are regularly outr... Read More
Wednesday, 22 June 2016 11:11 AM
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May
15

Deposit Insurance – a New Reality for Georgia

More than three years ago the ISET Economist blog discussed the idea of deposit insurance and how this idea may apply to Georgia. Today, the deposit insurance scheme is not merely an abstract idea, but a fast approaching reality. Recently, the Ministry of Finance of Georgia discussed a draft law on implementing the deposit insurance system in the country. According to the draft, all bank deposits in Georgia will be insured for up 5,000 GEL.  The deposit insurance program comes at a cost for banks. Each commercial bank will be obliged to pa...
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Florian Biermann
The article looks at international experiences and draws conclusions for Georgia, missing the fact that due to its geostrategical ... Read More
Sunday, 15 May 2016 8:08 AM
Simon Appleby
We went through this in Hong Kong about a decade ago. In the absence of deposit guarantees, but with rather conservative lending p... Read More
Sunday, 15 May 2016 3:03 PM
Guest — Akaki
I dont think that implementing the deposit insurance system will substantially contribute to financial stability in Georgia. The c... Read More
Monday, 16 May 2016 5:05 PM
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May
08

No Price Caps in the Electricity Wholesale Market!

This article is about a highly technical matter. To avoid losing all our readers in the very beginning, let us start with a famous doctrine by Montesquieu: Les lois inutiles affaiblissent les lois nécessaires. This principle, literally meaning “useless laws weaken the necessary laws”, should always be kept in mind by lawmakers and politicians. If a regulation is not beneficial, then it is almost surely beneficial to get rid of the regulation. Some great Georgians endorsed this principle, like Kakha Bendukidze, who is widely praised for having erased many...
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Eric Livny
The article raises many factual questions:What is the level of these price caps and how do it compare to the price electricity gen... Read More
Sunday, 08 May 2016 8:08 AM
Florian Biermann
Regarding your first two questions:(1) As we say in the article, the capacity to export is for technical reasons very low. Therefo... Read More
Sunday, 08 May 2016 8:08 AM
Eric Livny
Florian, The (potential) export price could be a good benchmark to assess the extent to which the cap is binding, reasonable, etc.... Read More
Sunday, 08 May 2016 9:09 AM
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Apr
05

XXI Century Arrives to Kakheti, with soplidan.ge

Have you ever had a problem of buying healthy products or being lazy to go shopping in open air bazaar? Wouldn’t it be wonderful to be able to order natural and fresh food that gets delivered straight to your door that is not of the fast-food, take-away variety? There might just be reason for optimism with the story of soplidan.ge (“from the village”).  This is a story of a small-business with an innovative idea. Soplidan is the first Georgian internet portal to offer online shopping for agricultural products. Consumers can choose goods they wa...
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Nana Moutafidou
Ia, praise is all yours! Very nice article. The Kakhetian girls do a very good job. A great example for entrepreneurial initiative... Read More
Wednesday, 06 April 2016 10:10 AM
Eric Livny
Ia, I am just curious, how do they solve the transportation problem? Isnt it too expensive for them to transport small quantities ... Read More
Wednesday, 06 April 2016 12:12 PM
Nana Moutafidou
Eric, this is stuff to answer in a new article
Thursday, 07 April 2016 3:03 AM
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