ISET

Agricultural input subsidy programs are meant to increase crop production, contributing in this way to improved food security and rise of incomes of stallholder farmers. An important goal of such programs is to develop efficient input supply systems, improving farmers’ access to inputs and adoption of new technologies (e.g., use of new seed varieties, fertilizers, and pesticides). Nevertheless, because of high opportunity cost of subsidies for other public goods and social transfers, these programs are widely debated in the literature.

Georgia has been implementing the Agricultural Card Program since February 2013. Farmers received vouchers for plowing and purchasing agricultural inputs. The budget of the program was 290 million GEL in 2013. It was reduced to 90 million GEL in 2014 and to 50 million GEL in 2015 and 2016.

Our investigation shows that the program was not properly targeted, neither geographically nor by poverty considerations. Moreover, farmers worry about more severe problems than plowing and fertilizing; problems related to irrigation (mostly in East Georgia) and difficulties in marketing of agricultural products (mostly in West Georgia) was stated to be the primary concern.

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Since September, 2014, the ISET Policy Institute has been working with the German Economic Team (GET). In May,2015 ISET-PI and GET extended their partnership and began working on a variety of policy briefs for Georgia's industrial development. These briefs will simultaneously advance research in the sector and provide the Georgian government a set of guidelines for the development of its own policy, exploring where Georgia's comparative advantages lie. The German Economic Team is a consulting group who provides advisory services to the Georgian government on economic policy and is supported by the German Federal Ministry for Economic Affairs and Energy.

 

 

Policy Briefs

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  • Unlocking the Export Potential of Georgian Agriculture

    Georgia’s agri-food export is concentrated in few products and few undemanding markets, making it highly vulnerable to shocks on a small number of commodity and geographical markets. At the same time, the diversity of climatic conditions and ample water resources create significant growth and diversification potential for Georgian agriculture. Georgian conditions appear especially suitable for the production and export of high-value niche products as the land mass is small and fragmented, Read More
  • Towards Strong and Balanced Growth: Georgia’s Economic Policy Priorities in 2017-2020

    This research paper intended to supplement and complement the following economic policy strategies and plans of the Georgian government in the areas of sustainable and balanced growth: • “Georgia 2020”, a broad agenda directed at long-run growth of most economic sectors with validity beyond the 2020 date • A “4 point plan” and a broader “14 point plan” of economic reform proposals of the government announced right before and right after Read More
  • Fiscal Policy After the Parliamentary Elections

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  • Access to Finance for Agricultural Cooperatives

    The Forum took place on 29 November 2016 in the framework of the EU-funded European Neighbourhood Programme for Agriculture and Rural Development (ENPARD) in order to discuss some the key challenges Georgia’s agricultural cooperatives face with regard to access to finance. Please see the conference programme and presentations (listed below). This was the fourth in a series of policy dialogues about agriculture and rural development organized by the CARE consortium, which Read More
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