As often discussed on this page, the seasonal dynamics of the Khachapuri Index are mainly driven by extremely sharp fluctuations in the supply of fresh milk, which directly affects the prices of traditional dairy products such as Imeretian cheese. However, these seasonal fluctuations in the price of cheese are consistently sharper in Kutaisi than anywhere else in Georgia.

The purpose of this event was to discuss the role of energy and water supply sectors for job creation and poverty reduction, as well as suggest improvements to existing policies affecting access to, and efficient use of, scarce resources. Georgia, just like other countries of the South Caucasus region, is characterized with significant energy poverty.

When thinking of “market distortions” we typically imagine government regulations, taxes, and subsidies that prevent market mechanisms from achieving an optimal outcome. For example, if you pay $100 for a 30-minute taxi ride (as is the case in many European capitals), you can easily relate it to a government regulation requiring all taxi drivers to be licensed (at a very high cost). In the absence of such a requirement, many more drivers would be able to enter the taxi driving profession, increasing supply and reducing prices.

BP in Georgia has implemented a number of projects related to renewable energy and energy efficiency through its Sustainable Development Initiative. The projects are designed to raise awareness about energy efficiency and provide subsidies for households to implement energy efficiency measures. In addition, several social programs related to increasing the efficiency of energy use and renewable energy have been implemented over the last four years.

When economists discuss the constraints for the economic development of a country like Georgia, one thing is always taken as given: That people have enough to eat.