For a long time, Russia was seen as the land of opportunity for foreign investors. The allure of the country with a large population, vast natural resources, and more importantly, a large middle class willing to spend money, was irresistible. The burgeoning economy, however, held a few secrets which threatened to derail investors’ hopes.

Until very recently Russia was considered by many foreign companies a somewhat difficult but promising country for investment, a “land of opportunity” that perhaps necessarily came with a hefty dose of a “riddle wrapped in a mystery inside of an enigma”. The difficulty was stemming primarily from Russia’s heavy-handed bureaucracy. Stories of corrupt practices, politically motivated court decisions, and questionable tax authorities’ tactics abounded.

These are Georgian churchkhela, a kind of national candy made from a string of walnut halves dipped in grape juice thickened with flour (Tatara or Phelamushi) and dried in the sun. There are essentially 2-3 kinds of Churchkhela. Somebody may be better in making them, somebody worse, but all in all, it is the same stuff sold all over Georgia.

The recently published government strategy “GEORGIA 2020” aims “to ensure that the majority of Georgia’s population benefits from economic growth”. The natural million-dollar question, however, is how this “inclusive growth” objective could be achieved in reality. In other words, how to make sure that the economy grows while creating jobs and business opportunities for the poor.

“It is an honor for me to be standing here, at ISET, in the best school of economics in the region” – with these words, Nodar Khaduri, the Minister of Finance of Georgia, started his presentation on March 10, 2014.