It is an empirical fact that in market economies the economic activity shows cyclical patterns. The 19th-century French economist Clement Juglar is generally attributed to having formulated the first coherent theory of what are known as business cycles.

According to the Biblical Book of Genesis, Adam ate the forbidden apple, and now we all have to face the consequences: men have to work “by the sweat of their face” and women have “in pain to bring forth children”.

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).

Each year, top ISET students receive promising offers to continue their education at some of the best universities in the world. Ala Avoyan, the valedictorian of the ISET 2012 class, is currently completing the first year of Ph.D. studies at New York University (NYU).