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ISET Economist Blog

A blog about economics in the South Caucasus.
Apr
06

Georgian Tangerines

The Estonian-Georgian film, Tangerines, was nominated for the Academy Award for Best Foreign Language Film in 2014. While the film was shot in Guria, the story takes place in Georgia’s breakaway region of Abkhazia during the war in the early 1990s. In the film, two of the main characters are peasants from Estonia who are living and working in Abkhazia, one as a tangerine grower and the other as a manufacturer of wooden crates for transporting tangerines to markets (much like the one in the photo above). Unlike their families and neighbors, these two men ...
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Mar
30

Does it Make Sense to Subsidize Smallholder Georgian Agriculture, and if so How?

While Georgia never faced anything like a wartime food crisis, the agricultural policies implemented by the Georgian Dream coalition government in 2013-2015 did not lack in ambition, seeking to make up for more than a decade of “active neglect” of Georgia’s smallholder agriculture by the Saakashvili administration. In this piece, we take a critical look at one of the first government initiatives, the Agricultural Card Program, introduced in February 2013.  According to the then Minister of Agriculture David Kirvalidze, the program aimed to “revive G...
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Mar
26

What Happens When Institutions are Designed to Provide Bullet-proof Protection against Fraud?

DESIGNING LIBRARIES  “Shock and awe” is a US military term describing the use of overwhelming power to demoralize the enemy, as applied by the American military in Iraq. “Shock and awe” would also aptly describe my emotional state when I entered, at the age of 23, the magnificent reading room at the Bodleian Library in Oxford. This was the moment when I – a former paratrooper and an officer with one of Israel’s security services – understood how badly I want to acquire an education. Not technical knowledge or skills, but an education.    ...
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Mar
13

Save the Georgian Bazaar!

Open-air markets, so called bazaars, are considered by many Georgians to be relics of the past. Progressive people buy in supermarkets with all its amenities: clean areas, shiny floors, the temperature regulated at a convenient level, the products placed in order and often arranged tastefully. Only backward people buy in a bazaar if there is a supermarket available. This shift in shoppers’ preferences is illustrated by changes in the market structure. Five years ago the only big supermarket in Tbilisi was Goodwill, but the presence of supermarkets increa...
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Feb
23

Should Georgia Sell its Agricultural Lands to Foreigners?

A BIT OF HISTORY: THE GOOD… Until 2012, Georgia has been encouraging foreigners to purchase land, bring modern technology and management to the country’s ailing agricultural sector. On the one hand, Georgia’s extremely liberal approach was a boon for investment by global food industry giants such as Ferrero (4,000ha hazelnut plantation in Samegrelo) and Hipps (growing of organic apple and production of aroma and apple concentrate in Shida Kartli). On the other, it catalyzed the creation of joint ventures in agricultural production and food processing wh...
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