ISET

ISET Economist Blog

A blog about economics in the South Caucasus.
Jun
12

Wanna Get Rich? Make Batumi Your “Second Home”!

With 6.3 million tourists visiting the country in 2016, Georgia has become a popular tourist destination. In May, the number of international visitors (those who stayed in the country 24 hours or more) increased annually by 19% (compared to the same month in the previous year). While Tbilisi Airport is the main border-crossing point, in May, Batumi Airport overshot Kutaisi Airport, famous for its low costs flights, and experienced a 20% annual increase in the number of arrivals. The concert of legendary musical band “Aerosmith,” which took place near Bat...
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Apr
19

Bread Should Be Baked By the Baker!

"Sixty-Eight Million Dollars Were Given for Colleges Last Year: – if  the Mania for College Education Continues We May Soon Expect the Above State of Affairs" American and Western European visitors to Georgia are fascinated by the fact that middle-aged Georgian taxi drivers often brandish a couple of engineering degrees, while young hotel receptionists and shop assistants frequently come with law, business and international relations education. Having spent a couple of days in Tbilisi, visitors may come to imagine that Georgia is so abundant in huma...
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Recent Comments
Florian Biermann
Ok, the situation is dire, but what do you expect in a country with $4,000 per capita income? One should compare the situation in ... Read More
Wednesday, 19 April 2017 2:02 PM
Simon Appleby
One issue not discussed in the issue of military conscription. Suspended midway through last year, it was reinstated in Novemberht... Read More
Wednesday, 19 April 2017 2:02 PM
Eric Livny
Simon, thanks for your comment. First, I could not agree more. We actually do mention the current system of military conscription ... Read More
Wednesday, 19 April 2017 3:03 PM
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Apr
17

How Businessmen Grow Wings

  Everybody knows Bakar and Tengo (BATE Generals), two businessmen from a very popular Georgian TV series, 'My wife's best friends' ('ჩემი ცოლის დაქალები'), who became incredibly rich from a start-up with a seemingly 'nonsense' idea to export the 'tails' of khinkali (traditional Georgian dumplings) to Bulgaria. Later on, BATE Generals created a special office for ideas, where their relatives and unemployed friends of their friends were solicited to generate promising business ideas. BATE Generals is paying a fixed amount to the idea generator and a ...
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Eric Livny
Thanks for an interesting analysis, Olga! I have a little bit of an angel investor experience in Georgian agriculture, so fully ap... Read More
Thursday, 20 April 2017 6:06 AM
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Apr
01

What Does It Take to Become a “Vakeli“?

Vake has always been one of the most prestigious districts in Tbilisi and being a “Vakeli” has been associated with high social status for no obvious reasons. In the picture: Vake Park, one of a few green places in Tbilisi and thus a big asset for the Vake district. Maybe having an opportunity to walk every day in this park makes people living in Vake so special. The recent publication of the Real Estate Laboratory (REM Lab), a joint project of ISET, TBC Bank and JumpStart, reports a remarkable growth in the real estate market in 2016. The growth was obs...
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Guest — Melanie
Oh your article appeared pretty good for me. I actually adore Tbilisi city. I was in Georgia last summer, rented a car from here: ... Read More
Thursday, 06 April 2017 1:01 PM
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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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Feb
25

Law Can’t Buy Me Love… To The National Currency

  Beginning in July 2017, if an entrepreneur offers and/or advertises a property and/or service for sale in the territory of Georgia, the price of the property/service shall be expressed solely in GEL. According to the bill, failure to abide by the new law when denominating the price will lead to a warning, while a repeated offense will lead to a penalty of 1000 GEL. Each subsequent offense will be subject to a penalty of 5000 GEL. BACKGROUND INFORMATION This law is one of a few changes which will take place in support of a de-dollarization plan imp...
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Eric Livny
A great article with a great title. One small comment. The costs of construction can be in GEL or USD, but the financing of constr... Read More
Monday, 27 February 2017 12:12 PM
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