Hospitality is one of the most prized aspects of Georgian culture. Welcoming (literal translation: "respecting") guests is a matter of great pride for any family. My mother grew up in a small Imeretian village, and as she tells me, the kids of the family were not allowed to eat until the guests were fully "respected", i.e. properly fed. Even the poorest household in the village would go out of its way (and income) to impress its guests with a cornucopia of local delicacies, meats, veggies, and homemade wine.

The main objective of this project is to analyse a possible impact of imposing 20% tariff on wine export from Georgia to Russia on grape prices in Georgia. In addition, the study aims to assess the impact of this possible tariff on the incomes of grape producers in Georgia. In addition, the study aims to assess the impact of this possible tariff on the incomes of grape producers in Georgia.

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.

This project aims to support the development of business-oriented small farmer groups (e.g., agricultural cooperatives) with the goals of increasing agricultural productivity and reducing rural poverty in Georgia.

Why should we care about income inequality? According to Nobel Prize laureate Joseph Stiglitz and Harvard economist Jason Furman, “greater inequality leads to more political instability, and greater political instability leads to lower growth” (“Economic Consequences of Income Inequality”, Federal Reserve Bank of Kansas: Journal Proceedings, 1998, pp. 221-232).