One of the current economic mysteries of the South Caucasus and the source of certain uneasiness on the part of world development organizations has been the significant rise in the recent years of the consumption to output ratio in Georgia.

I know. I know that I know. For as long as the human race existed, knowledge embodied power. In the life of a society, however, what becomes even more important is the fact that we share certain knowledge with fellow human beings, and that we, moreover, are aware of each other’s knowledge.

How much foreign wealth does a country really have? In the Balance of Payments Accounts, the net foreign wealth is essentially the difference between the assets held by the country’s residents abroad and the country’s liabilities to foreigners, valued at the market price in each given year.

Far from being the root of all evil, money is one of the most spectacularly useful human inventions. On par with the technology of a wheel, the technology of money has made civilization as we know it possible. But what kind of technology does money replace?

Growth Diagnostics project applies the well-known methodological framework to uncover the binding constraints to economic growth in Georgia. The aim of this research project was to analyze all potential areas of economic reform in Georgia from credit markets to human capital to infrastructure; and thus produce a comprehensive assessment of reform priorities.