In the year of elections any piece of economic analysis is usually seasoned with a hefty dose of caution. Every analyst is aware of the fact that the incumbents will be too eager to oversell the ‘good’, while the opposition will pound on the ‘bad’. Weary of taking sides in political battles, economists usually switch on their primary defense mechanism: they start relying (heavily) on the annoying “on the one hand”, “on the other hand” kinds of phrases. I am of course referring to Georgia in the year of 2016.
What people should keep in mind, however, is t...
ISET Economist Blog
A blog about economics in the South Caucasus.
Jun
19
May
29
Early next month, the eyes of the world will briefly turn to Switzerland. On June 5th, the citizens of this prosperous country will vote in an unprecedented referendum on the idea of guaranteeing each citizen a basic income equivalent to roughly 30,000 USD per year.
At first, the idea may sound completely crazy – after all, if a basic level of income is guaranteed for everyone, why would people want to work or study to acquire a profession? Wouldn’t the entire system collapse when economic activity stops and sources of income dry up? The opinion pol...
May
15
More than three years ago the ISET Economist blog discussed the idea of deposit insurance and how this idea may apply to Georgia. Today, the deposit insurance scheme is not merely an abstract idea, but a fast approaching reality. Recently, the Ministry of Finance of Georgia discussed a draft law on implementing the deposit insurance system in the country.
According to the draft, all bank deposits in Georgia will be insured for up 5,000 GEL.
The deposit insurance program comes at a cost for banks. Each commercial bank will be obliged to pa...
Apr
30
It is a well known fact that nearly a half of Georgian population is involved in agriculture, while Georgia imports around 60% of all the food it consumes. High food import share and food security are important issues for Georgia, widely discussed among the policy makers and in the media. One issue that remains largely in the shadows of public attention is Georgia’s struggle with nutritional deficiencies and unhealthy, undiversified diets.
Surveys show that bread is one of the main sources of calories in Georgian diets, accounting for as much...
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