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ISET Economist Blog

A blog about economics in the South Caucasus financed within the institutional grant by the Government of Sweden.
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  • Tinatin Akhvlediani
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Chiatura and the Resource Curse
Chiatura is a small but resource-rich and picturesque town, situated in the province of Imereti in Western Georgia. The abundance of an important natural resource, manganese ore, was the main reason for establishing the town in 1879. Akaki Tsereteli, the famous Georgian writer from the same region, initiated manganese mining back then.
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The Roots of the Georgian Mining Industry
In the early 1980s, Soviet engineers drove a prospection tunnel into Sakdrissi hillock close to the small town of Kazreti, about 50 kilometers south of Tbilisi. Much to their surprise, they discovered that the hillock already bore a labyrinth of tunnels, and, as quickly became clear, these tunnels were manmade.
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Exporting Education
Recently, the Georgian authorities cracked down on Nigerian students who allegedly did not really study but used their student visas for getting access to the Georgian labor market. Yet their residence permits were withdrawn without proper verification that this suspicion was actually true.
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The Strategic Dilemma of the Tbilisi Marshrutka Drivers
Everyone using the service of the Tbilisi marshrutkas experiences one of two extreme cases: the marshrutka either moves tantalizingly slowly or excessively fast. How can this apparent paradox be explained? In search of an answer, let us turn to game theory, one of the appealings outgrows of mathematical economics.
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Yellow Moving Saunas in the Streets of Tbilisi: A Tragedy
Tbilisi public transportation resembles a classic Greek tragedy. In those pieces, usually, the gods interfere with human affairs and create a big mess. In Tbilisi, marshrutkas were operating in a competitive market and state intervention led to the creation of a monopoly.
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The "Wizz Air Effect" or how Georgia Became Part of the Global Economy
On Monday evening I am taking the express train from Tbilisi to Samtredia with my wife and two kids (business class, 120GEL). We plan to stay overnight in a little family hotel (40GEL), and at 6.30 am we’ll board the Wizz Air flight to Katowice, Poland, at the cost of €40 a person and €35 per suitcase (one way).
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