ISET

ISET Economist Blog

A blog about economics in the South Caucasus.
Mar
05

Poverty in Georgia

The ability of families to meet their most basic needs is an important measure for the development of a country. Poverty touches on questions of human dignity and fairness in a society, but beyond that, poverty causes problems that may impair long run economic prospects, like crime, social unrest, and underinvestment in human capital. Given the libertarian agenda pursued by the United National Movement since the Rose Revolution, one might suspect that Georgia has a poverty problem. Is this true? POVERTY IN GEORGIA According to the ISET Consumer Confidenc...
Rate this blog entry:
Recent Comments
Guest — RT
"the tax rate is flat as a khachapuri" :-)
Tuesday, 05 March 2013 4:04 PM
Guest — Giorgi Mekerishvili
"As long as income in a society is not fully equal, there will always be people who earn less than 60% of the median income". Inco... Read More
Wednesday, 06 March 2013 10:10 AM
Continue reading
2309
2 Comments
Write a Comment
Feb
25

Thou Shall Work or Thou Shall not Eat

Recent strikes of minibus drivers in Tbilisi have reminded all of us about the long-forgotten issue of labor rights in Georgia. Since the new government came to power in the beginning of October, employee protests have become a regular “inconvenience”. Some strikes lasted longer than others, as in the case of the Chiatura manganese mine and Poti port, generating significant losses for the Georgian economy. The situation reminded me of a year I spent as an exchange student in Thessaloniki, Greece, where walkouts by public and private servants became a dai...
Rate this blog entry:
Recent Comments
Guest — Florian
Hi Aleqsandre, This is a very instructive article. I heard about the plans to change the labor code in Georgia but didn't know det... Read More
Tuesday, 26 February 2013 9:09 PM
Guest — Aleqsandre
Hi Florian,thanks for the comment,for more details regarding the labor code project you can see the presentation here: http://amch... Read More
Tuesday, 26 February 2013 10:10 PM
Continue reading
1974
2 Comments
Write a Comment
Nov
12

Price Stability: the Lull before the Storm?

During the past 18 months, Georgian consumers have been enjoying an unprecedented period of price stability. Ever since May 2011, when inflation peaked given the state of frenzy in the global commodity markets, inflation has literally come to a halt: since early 2012, monthly inflation rates are fluctuating around the zero trend. In fact, Consumer Price Index (CPI) is slightly lower today (153) than in January 2012 (153.8), and only 0.1% higher than in October 2011 (152.8). THE STORM IS COMING! A spate of worrisome news is hitting the Georgian media sin...
Rate this blog entry:
Recent Comments
Guest — Florian
Highly interesting analysis of the problems facing Georgia under the new government. Indeed, one problem of the democratic system ... Read More
Thursday, 15 November 2012 11:11 AM
Guest — Eric
But, Florian, why blame the economists? First, they are all two-handed species (on the one hand, on the other hand, etc.). Second... Read More
Thursday, 15 November 2012 6:06 PM
Guest — Florian
Do economists really have two hands? That's how they seem themselves... but in reality? Paul Krugman - two hands? Nouriel Roubini ... Read More
Friday, 16 November 2012 3:03 PM
Continue reading
2220
3 Comments
Write a Comment
Oct
26

Jobs For Sale

As Harry S Truman once noted – “It's a recession when your neighbor loses his job; it's a depression when you lose your own”.  While Georgia was able to grow its economy, this growth did not trickle all the way down. The overall number of jobs did not increase, resulting in very high unemployment, especially among youth and recent university graduates (up to 35% according to some counts). Unemployment hurts the individuals involved and the economy as a whole. As an individual you lose income, and still worth, may see your value in the labor market (...
Rate this blog entry:
Recent Comments
Guest — Lasha
Thank you Giorgi for very interesting blog. This is awesome! It is new for me and for many others I guess. From time to time I als... Read More
Friday, 26 October 2012 2:02 PM
Guest — Eric
This post may read like one of these spam mails of the "Earn $1000 per day" type, but it is not. It shows the power of outsourcing... Read More
Friday, 26 October 2012 2:02 PM
Guest — Michael
I hope this blog post was meant to be a joke.
Friday, 26 October 2012 3:03 PM
Continue reading
1962
5 Comments
Write a Comment
Oct
02

Breaking the Vicious Circle of Poverty and Inequality

Despite spectacular growth performance during the past several years (averaging more than 6% since 2005), Georgia remains a poor country. In 2011, Georgia’s GDP per capita reached USD 3,215, just below the average for small island states in the Pacific and just above Guatemala. Still worse, more than half of Georgia’s population live on incomes that are much lower than this average figure. This is so because the Georgian society is plagued by a very high level in income inequality. For instance, in 2011, Georgia’s Gini coefficient – the most common indic...
Rate this blog entry:
Recent Comments
Guest — Michael
1. The WEF ranking is as useless as a ranking can be.2. Is there any empirical evidence on the efficiency of preschool education i... Read More
Tuesday, 02 October 2012 3:03 PM
Guest — Eric
Michael, the WEF ranking of education peformance is as useless as a ranking that is based on subjective feelings of a small number... Read More
Tuesday, 02 October 2012 8:08 PM
Guest — Michael
Oh, that sounds good. And a much better investment than handouts at a later stage in life. But the big question is probably how th... Read More
Tuesday, 02 October 2012 10:10 PM
Continue reading
5338
5 Comments
Write a Comment
Sep
05

Who Is Able To Afford A Khachapuri?

As reported in our Khachapuri Index Column, the prices of key khachapuri ingredients have started rising in July, given their strong correlation with the annual cycle of agricultural production in Georgia. A standard portion of Imeretian khachapuri can now be cooked at slightly more than 3GEL, on average. Now, while 3GEL does not sound like a lot for the expats and the better off Georgians, it may be beyond reach for many of the less fortunate Georgian households. To remind ourselves: about 9.2% of Georgia’s population (close to 400,000 people) are ...
Rate this blog entry:
Continue reading
2257
0 Comments
Write a Comment

Our Partners