20
June
2014
Before answering this question, let us define what economists usually mean by” informal employment”. There is some confusion with this term, and sometimes it is improperly used as a synonym for tax evasion or illegality. ILO defines informal employment as: employment “consisting of units engaged in the production of goods or services with the primary objective of generating employment and incomes to the persons concerned.
18
June
2014
On June 13, ISET hosted Dr. Dmitry Shapiro from the University of North Carolina at Charlotte, who presented his paper “Microfinance and Dynamic Incentives”.
18
June
2014
On May 31, ISET organized an excursion to an agricultural cooperative called “Gift of Forest” in Tsinamdzgvriantkari, in the Mtskheta-Mtianeti region of Georgia. The purpose of the excursion was to learn more about a successful cooperative and understand how this success could be replicated in other contexts and value chains in Georgia.
16
June
2014
In the first part of this article, I described some of the adverse incentives resulting from a social welfare system. Then I argued that according to Simon Kuznets' famous paradigm, increasing inequality is hardly evitable when a country enters a growth trajectory (as Georgia did in 2003), and I reasoned that it is at least an ambivalent (not to say questionable) policy for Georgia, at its current state of development, to fight inequality by social welfare measures. In this vein, the article seemed to advocate that Georgia might better follow the “Asian” approach of “develop first, redistribute later”.
13
June
2014
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.
