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ISET Economist Blog

A blog about economics in the South Caucasus.
Nov
30

Innovation Starts Here and Now … In Lisi Lake Greenhouses

The difficulty lies not so much in developing new ideas as in escaping from old ones.  -John Maynard Keynes- Innovation is not necessarily about Silicon Valley Hi-Tech startups. It can happen here and now. In particular, contrary to what we have been hearing from our liberal politicians, there is plenty of scope for innovation in Georgia’s agriculture! Owned and managed by Nina Petrova-Dzneladze, Lisi Lake Greenhouses is a family farm located on 0.6ha of land in Tbilisi. The complex consists of three medium size greenhouses producing fruit and ...
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Nov
07

Georgian Tea: Finding New Strength in Unity?

After many years of chaos and utter collapse, Georgia’s once glorious tea industry is again showing signs of life. More and more individual farmers and businesses – mostly very small, but some quite ambitious, such as Geoplant (known for its “Gurieli” brand) – grow, process and pack tea. Despite competition from major producing countries and international brands, Georgian tea has great export potential because of the value attached to it all over the former Soviet Union.  While the potential is clearly there, it is not at all clear what strategy sho...
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Oct
17

Thin but Strong: Georgian Silk

DEEP ROOTS Silk production, or sericulture, has deep Georgian roots, going all the way back to King Vakhtang Gorgasali, who not only founded Tbilisi in the 5th century A.D. but also introduced Georgia to silk (and silkworms), which he brought from India.  Silk production is as rooted in Georgia as are wine and honey. According to a survey conducted in 1848, some 210,000 Georgian families were involved in silk production. The industry went into a deep crisis in 1860s, when the ancient Caucasian species of silkworm was practically wiped out by a disea...
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Oct
03

Georgian Wine: Plan for the Worst, Hope for the Best

"You mean there's a catch?""Sure there's a catch", Doc Daneeka replied. "Catch-22. Anyone who [claims he is crazy because he] wants to get out of combat duty isn't really crazy."Joseph Heller, Catch 22 Пока гром не грянет, мужик не перекрестится.Русская народная пословица   The Georgian wine industry had a couple of very good years in 2013 and 2014, following the opening of the Russian market. Exports skyrocketed, prices of grapes followed suit. For all the talk about diversification, within just two years, Russia’s share in the total exports o...
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Sep
26

Georgian Farmers Playing Russian Roulette

On August 20, 2015 a strong hailstorm hit Georgia, devastating crops and infrastructure in eastern Kakheti. In Kvareli alone, the hailstorm destroyed about 1,300ha of Saperavi and 1,000ha of Rkatsiteli grapes, affecting more than 500 families. This was only one in a string of natural disasters striking Georgian farmers in recent years. One of the worst calamities occurred in July 2012, when heavy rain, strong winds, hail and floods damaged thousands of hectares of arable land in Kakheti, ripping roofs and destroying vital infrastructure.   Whil...
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