After the collapse of the Soviet Union it was believed that tourism might become one of Georgia’s “locomotive” sectors. While the Shevardnadze government failed to develop this potential, after the Rose Revolution, tourism became a top priority. Each year since 2005, the direct effect of tourism (i.e. the money spent by tourists) alone has contributed 6-7% of Georgia’s total GDP.

Bubbles belong to the most fascinating phenomena in a market. Suddenly, people are willing to pay prices that are completely out of touch with the fundamental economic values of assets. In the stock market bubble of the 1920s, persons who had never before considered becoming investors borrowed money and bought shares, so as not to miss out on the chance to become rich.

Investments in real estate compensates for risk premiums (compared to money deposits) and more than covers its costs (Mortgage interest rate). Average rental price for residential property continues to fall and reaches its historical minimum since March 2013.

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.

One of the few economists who won the Nobel Peace Prize is Muhammad Yunus, a Bangladeshi who invented the concept of microcredits. What is it about?