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.

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).

An unprejudiced look at the Georgian economy is rather disenchanting. Starting in 1990 at a per capita income that was close to Poland’s, Georgia went into a free fall as a result of secession wars, loss of markets, an explosion of crime and corruption, and the staggering incompetency of its governments.

While there are differences between regions, most of the systematic regional disparities can be explained by differences in urbanization rates across the regions; namely, relatively more urbanized regions tend to have a higher per capita gross value added, a more diverse and sophisticated economic structure, and a better developed infrastructure.

On the 8th of March, Georgia joined many other countries around the world in celebrating International Women’s Day. While this particular way of appreciating the many contributions of the Georgian women may be said to have been inherited from the Soviet Union, women have historically played very important roles in Georgian society and politics.