ISET

ISET Economist Blog

A blog about economics in the South Caucasus.
Sep
21

Erekle II. - The Tragedy of an Enlightened King

Few events in Georgian history had consequences that were as far-reaching as the infamous Treaty of Georgievsk of 1783. In the end of the 18th century, Erekle II. (1720-1798) handed over his kingdom of Kakheti and Kartli to the Russians, aligning the fates of Georgia and Russia for the next two centuries. In the middle of what today is called the Age of Imperialism, when European countries, including Russia, were dividing the globe among themselves, Georgia was offered to Catherine the Great on a plate. Of course, she did not reject. Being a colony of a ...
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Guest — Levan Pavlenishvili
"Erekle II. (1720-1798) handed over his kingdom of Kakheti and Kartli to the Russians, aligning the fates of Georgia and Russia fo... Read More
Monday, 23 September 2013 9:09 PM
Guest — Vaxo Tyeshelashvili
I'm very pleased that I've read this article. It's quite interesting and cognitive, full of very usefull information with objectiv... Read More
Sunday, 20 October 2013 1:01 PM
Guest — vato
Persia, I would have gone to Persia, who guaranteed internal autonomy as usuall
Wednesday, 22 January 2014 1:01 PM
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Jul
01

Georgia's National Competitiveness

In the globalized world of today, increasing national competitiveness has become an important policy target for any country. While engaging in mutually beneficial trade, technological and cultural exchanges, countries find themselves in a race for scarce mobile resources such as financial capital and talent. Winning in this race are those locations that offer the best conditions for economic activity – skilled and disciplined labor force, high quality services and urban amenities, transparent and efficient public administration, etc. These locations – no...
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Guest — llabadze
It seems Georgia is going forward in terms of "the much-coveted role of a regional hub". Just today (Sep 20, 2013) the Austrian tr... Read More
Saturday, 21 September 2013 10:10 AM
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Jun
07

Correcting Unemployment Numbers – A Call for Government Action

There are many pressing challenges and issues that command the attention of people interested in politics in Georgia. Some of these issues are emotionally charged, and there is not necessarily a consensus across society. However, there is one issue on which there should be a consensus, and it matters tremendously to the Georgian people. This is the issue of unemployment, and more specifically, unemployment numbers. According to a recent survey that CRRC conducted for NDI, Georgians consider unemployment to be the most pressing issue.    The pr...
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Guest — M
There is merit to use the ILO definition, but at the same time it would be helpful to report other measures of un-or under-employm... Read More
Friday, 07 June 2013 4:04 PM
Guest — George Welton
FYI - the 15% number is the result of one very specific question on the Integrated Household Survey that GeoStat conducts every 3... Read More
Friday, 07 June 2013 2:02 PM
Guest — Heghine Manasyan
The data from the article show that the findings by GORBI and GEOSTAT are similar. According to the latter the share of unemployed... Read More
Saturday, 08 June 2013 2:02 PM
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May
13

Georgia's Education System Reforms: Corruption is Gone but Where is the Quality?

A country without oil needs smart people! This clearly applies to Georgia. Not endowed with substantial amounts of natural resources, Georgia totally depends on its human resources. Yet how good is the intellectual equipment of the Georgians that is so urgently required for driving the economic development of this country? When it comes to applied knowledge that can directly be utilized for economic activities, the picture is rather disenchanting. According to UNDP data, 81% of Georgian unemployed completed secondary or higher education. Yet as we wrote ...
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Guest — Eric Livny
An interesting suggestion, Givi! While I think that there are (still!) enough qualified Georgians to teach some of the technical s... Read More
Sunday, 19 May 2013 6:06 PM
Guest — Givi Melkadze
Indeed, the quality of education (particularly, of higher education) is very low in Georgia, and many like myself know it from the... Read More
Wednesday, 15 May 2013 11:11 AM
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Mar
08

The Georgian Labor Code: Real Challenges and False Myths

Georgia’s current rank in the ease of “hiring and firing practices” and “redundancy costs” (weeks of salary an employer is required to pay a dismissed worker) is 9th and 13th, respectively (World Economic Forum’s Global Competitiveness Report, 2012-13). While a matter of pride for Georgia’s previous administration, the liberal labor legislation has become a major bone of contention between the UNM and its many critics (constructive and otherwise), including local labor unions, International Labor Organization (ILO), the European Union (EU) and the US. Th...
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Guest — Eric
With something like 30% unemployment among Georgian youth, labor market regulation should really be the last thing to worry about.... Read More
Friday, 08 March 2013 11:11 AM
Guest — Simon Appleby
A very good article. It should be considered that some foreign governments and labour organisations critical of Georgia's labour p... Read More
Friday, 08 March 2013 11:11 AM
Guest — RT
Maka, a great topic. But I was expecting more refernces to empirics. For example, there is a common claim that NAIRU in Europe is ... Read More
Saturday, 09 March 2013 11:11 AM
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Feb
15

Is Some Degree of Corruption Good for Growth? – It Could Be.

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. Patronage and bribery are two components that define the notion of corruption and which cause the inefficiencies associated with it. Patronage often leads to the unfair delegation of the power of decision making to economic agents who do not posess the relevant skills to make good decisions. In the absence of patronage, ceteris paribus, the power of de...
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Guest — Nino
The last part about the region reminds me of the prisoners' dilemma __ if everybody else is corrupt, maybe it is better to be corr... Read More
Friday, 15 February 2013 10:10 AM
Guest — Florian
Is it prohibited for Georgian entrepreneurs to pay bribes abroad? Georgia should reconsider that rule. Until a few years ago, Germ... Read More
Friday, 15 February 2013 2:02 PM
Guest — Eric
Giorgi,I agree with the discussion in your blog up to the point where you make the link to Georgia. The thumb rule provided by Hec... Read More
Friday, 15 February 2013 4:04 PM
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