On the first of January, Armenia will adopt an entirely new pension system. This radical reform addresses two problems: widespread poverty among the elderly and a lack of capital in the economy. The very same problems also exist in Georgia, where the standard governmental pension currently is 150 lari, and where the economy is suffering from high capital costs due to notoriously low saving rates.

There are many possibilities for how to increase the productivity of the Georgian agricultural sector. Experts suggest upgrading knowledge and technologies, promoting collaboration among farmers, and coping with the land fragmentation problem, to name just a few of the ideas circulating in the debate.

It is a commonly accepted view that corruption is bad for economic growth. It leads to an inefficient allocation of resources by contradicting the rules of fair competition and by setting wrong incentives.

Wages and productivity levels differ across countries. For instance, in 2011 the average yearly income in the US was about $53 000, whilst the same indicator was $250 in Madagascar.

In his blog post “The puzzle of agricultural productivity in Georgia and Armenia”, Adam Pellillo raises the following question.