ISET

ISET Economist Blog

A blog about economics in the South Caucasus.
Jan
11

Institutions, Politics, and Development

How can a society become more prosperous? This question has been on the minds of economists and policymakers for centuries. More than two hundred years ago, Adam Smith wrote that “little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism but peace, easy taxes, and a tolerable administration of justice, all the rest being brought about by the natural course of things.” Yet, still today, many societies around the world are characterized not by peace, easy taxes, and a tolerable administration of justice, but by c...
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Guest — Vusal Mammadrzayev
Adam, you mentioned that the weak institutions, less transparency and political instability is the main constraint in the economic... Read More
Tuesday, 15 January 2013 9:09 PM
Guest — NP
I like a lot this piece. Actually, I believe Georgia went through a very active process of modernization in many areas under the p... Read More
Thursday, 17 January 2013 11:11 AM
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Nov
16

A New Competition Policy for Georgia

In recent weeks there has been a lot of talk about alleged monopolies and cartels in Georgia, and Georgia’s future competition policy. With few exceptions this debate has been pathetic. The debate has been dominated by politicians or businesses with a vested interest in the outcome. Even worse the framework of the debate is often provided by self-proclaimed experts with no actual expertise. According to the debate monopolies and cartels are pervasive in Georgia. Seemingly almost every sector of the Georgian economy is not competitive, either because firm...
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Guest — Lintu
Georgia is a small country and here everyone knows everything and no one needs a proof for the fact that we have monopolies And ga... Read More
Saturday, 17 November 2012 9:09 PM
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Oct
18

Political Instability in Fragile Democracies

Free Policy Briefs has an insightful post on political instability in Kyrgyzstan. The literature, typically using panel data covering many countries, shows that higher government turnover rates reduces growth significantly in both economic and statistical terms, even for established democracies. Looking at government turnover in more polarized societies and unconstitutional change in power (revolutions and coups), the effect is estimated to be even larger. Is this relevant for Georgia? Only the future will show.
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Guest — Eric
This reference to the "literature" (Tolstoy?) does not make any sense. The link cannot be linear. Too little government turnover c... Read More
Friday, 19 October 2012 12:12 AM
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Aug
14

Georgia – Potential Regional Hub for Automobile Trade

Car export was 20.5% of the total exports in 2011 and it had the highest share in total exports, among all export goods. What a striking fact! So, what does this mean for Georgia and how can we become regionally more competitive in car-trade? How can we meet the demand on European, Japanese and US cars in Caucasian and Central Asian markets by becoming a regional trade and transit center for those cars? Since 2005, car exports have been steadily increasing, in value and as a share of total exports. The correlation between car exports and imports is 0,67...
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Recent Comments
Guest — Salome
* founders OF a re-exporter firm
Wednesday, 15 August 2012 12:12 PM
Guest — Salome
Let's become founders a re-exporter firm together with other ISETers, we'll have enough information, coordination and I'll repair... Read More
Wednesday, 15 August 2012 12:12 PM
Guest — Nodari
I have a lot of remarks regarding your post and I will structure them properly and come back with a comment.
Wednesday, 15 August 2012 10:10 PM
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Jun
21

Growth and Even More Growth

A new study by the ISET Policy Institute has interesting insights into Georgia’s growth performance:   This study applies the Growth Diagnostics framework and attempts to identify the binding constraints to economic growth in Georgia. While many policies potentially promote economic growth in practice only policies that relax the binding constraint do so. In contrast, policies that relax non-binding constraints will by definition do little or nothing to promote economic growth. This study builds on an existing growth diagnostics exercise b...
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Guest — Eric
To bring income per capita to acceptable levels, Georgia needs high productivity jobs. Such jobs can only come from investment in ... Read More
Friday, 22 June 2012 6:06 PM
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May
17

What Georgia Can Teach the World

A new discussion paper by Jeffrey Frankel,  via Economic Logic:  The large economies have each, in sequence, offered "models" that once seemed attractive to others but that eventually gave way to disillusionment. Small countries may have some answers. They are often better able to experiment with innovative policies and institutions and some of the results are worthy of emulation. This article gives an array of examples. Some of them come from small advanced countries: New Zealand's Inflation Targeting, Estonia's flat tax, Switze...
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Guest — Eric
In my view, Georgia is one large experiment in development reforms. What is a amazing about Georgia is that the government was abl... Read More
Saturday, 19 May 2012 10:10 AM
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