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ISET Economist Blog

A blog about economics in the South Caucasus.
Nov
15

Troubles to Cooperate in Georgian Agriculture

Georgian agriculture was more developed in Soviet times as it is today. Despite great overall technological progress almost everywhere in the last 20 years, Georgia moved backward when it comes to agriculture. In the year 1990, at the end of the Soviet Union, the number of cattle exceeded 4 million, while today it is just a little more than 1 million. In the Soviet Union, Georgia was a main producer of tea, citrus fruits, deciduous trees, and vine. According to the Rural Poverty Portal, after the collapse of the Soviet Union the output of some of these g...
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Guest — Juan Echanove
Baselines and studies about farmers' cooperation in GeorgiaIn preparation of the ENPARD, the EU, in collaboration with FAO, produc... Read More
Friday, 15 November 2013 12:12 PM
Guest — Simon Appleby
You make a good point about very small co-operative ventures based on blood relatives as members. In my experience these are succe... Read More
Friday, 15 November 2013 4:04 PM
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Nov
01

Fresh Capital for the Georgian Economy

Last year, Prime Minister Bidzina Ivanishvili announced his plans to set up a so-called co-investment fund. It took a year for this idea to mature, but finally a group of financially potent investors endowed the fund with 6 billion dollar. 15 % of the capital is provided by Bidzina Ivanishvili himself, the remaining 85% are held by the Abu Dhabi Group, the Ras Al Khaimah Investment Authority (both United Arab Emirates), Milestone International Holding from China, Mr. Alexander Moshkevich from Kazakhstan, capital of the late Badri Patarkatsishvili, Batumi...
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Guest — NP
"In all these cases managers might want to try making things go in a way that does NOT coincide with public interests, using the “... Read More
Friday, 01 November 2013 11:11 AM
Guest — NP
Very interesting topic. And very appropriate conclusion. Having a sudden access to capital (and especially this much capital) is ... Read More
Friday, 01 November 2013 11:11 AM
Guest — NP
Unless you are BOTH the one who decides the rules of the game AND one of the players
Saturday, 02 November 2013 12:12 PM
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Oct
25

Georgia's Democratic Challenge

In his 1991 book “The Third Wave: Democratization in the Late Twentieth Century”, the famous American political scientist Samuel Huntington (1927-2008) identifies three global democratization waves in the history of humankind. The first wave was the creation of the classical democracies in the United Kingdom and North America and the ongoing democratization process of the 19th century in France and other European countries. The second democratization wave refers to the time after the Second World War, when some latecomers (Germany, Italy, Spain etc.), jo...
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Guest — makachitanava
Very nice post Ia, however I would like to see more discussions about Georgian case. What can be reasons for Democracy reversal i... Read More
Friday, 25 October 2013 10:10 AM
Guest — Till
It would be interesting to read a blog about how the % of Georgians describing democracy as the best political system has evolved ... Read More
Friday, 25 October 2013 11:11 AM
Guest — Jeff
Setting aside Huntington and Rustow, we may look straight to American history for a parallel. 10 years after the USA elected its ... Read More
Friday, 25 October 2013 4:04 PM
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Oct
21

Georgia on the Development Frontier: From Subsistence Agriculture to Exchange

While written in 1991, “The Development Frontier” by Peter Bauer has lost none of its relevance for Georgia and other predominantly agrarian economies of the 21st century. Economic development, suggests Bauer, “begins with the replacement of subsistence activities by production for sale. Producers will move out of subsistence production only if they see the advantages of doing so and if it is made possible for them to do so. They need the incentive, the opportunity, and the resources.” And this, according to Bauer, is where the traders come in. Traders m...
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Guest — Eric Livny
A valid point, Helene. The transfer of know-how, let alone seeds and implements, etc, is certainly not as smooth as Bauer is descr... Read More
Tuesday, 22 October 2013 10:10 AM
Guest — Helene Ryding
"Armed with knowledge of local, regional and export markets, traders also create new opportunities by providing outlets for farm p... Read More
Tuesday, 22 October 2013 9:09 AM
Guest — Juan Echanove
do agree that the improvements in roads (specially the rehabilitation of Tsalka road, which has totally modified the whole trade n... Read More
Tuesday, 22 October 2013 12:12 PM
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Oct
19

Assessing the Impact of Development Projects - Looking for a Black Cat in a Dark Room and Hoping that the Cat is There?

Do development projects reach their stated objectives, such as reducing poverty, improving skills, creating jobs, etc.? This turns out to be a complicated question about project impact that a simple before-and-after measurement would not help answering. Why? The answer is also complicated, of course, but here are two points to consider: First, when a country goes through a rapid modernization process, as is arguably the case in Georgia, most development indicators improve over time regardless of specific donor interventions. Second, even if we observe a...
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Oct
07

The Two Faces of Foreign Direct Investment

Recently, the Georgian media abounded with alarming reports about a slowdown of foreign direct investments (FDI) in Georgia. Indeed, economic figures seem to support the view that there may be a turn in the FDI activity. The graph shows FDI in the first two quarters of each year from 2005 to 2013. There is obviously a huge volatility in the investment activity throughout those years, reflecting economic and political events like the war and the financial crisis in 2008. Yet since 2009, FDI activity was following a slow but steady upward trend. This trend...
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Guest — RT
1. That's an interesting chart, though it may be more interesting to look at these flows in % of GDP (corresponding two quarters).... Read More
Monday, 07 October 2013 5:05 PM
Guest — Eric Livny
Quote from The Telegraph: "Steel-making giant Arcelor Mittal has suffered an extraordinary attack from a French government ministe... Read More
Monday, 07 October 2013 8:08 PM
Guest — Y
FDI can be a powerful instrument in the government's industrial policy toolkit. The idea is to 'direct' FDI in way that facilitate... Read More
Tuesday, 08 October 2013 10:10 AM
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