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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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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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David the Economist
In 1122, King David IV. reconquered Tbilisi from the Muslims. In those times, a bloodbath among the former oppressors would have been the logical consequence of such a victory. Leaders of the High Middle Ages took merciless revenge against their enemies once they had defeated them.
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An Economist’s Comment on “Dodge or Die” on the Streets of Tbilisi
As Stephen Dowling put it in his BBC News article a few years ago, “when it comes to crossing the road, there's no such thing as an international standard. Every country does it differently.” How people drive and cross the road, according to Dowling, is a matter of a country’s cultural values. Is it really?
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Financial Literacy in Georgia
Does Georgia have a well-developed financial sector? Certainly, the proliferation of bank branches and automated teller machines in the capital city of Tbilisi might suggest that it does. And yet, the data indicates that for a country of its size, Georgia has a relatively small financial sector.
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Arbitrage? Not in Georgia!
I have snapped the picture above in one of Tbilisi’s main streets. To the economist’s eye, however, this picture should be disturbing. While the general observer will see clean and wide sidewalks, beautiful classical-style buildings, and a single pedestrian in this early hour of the day, one also sees two adjacent currency exchange booths (Lombardi, as they are called here).
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