ISET

ISET Economist Blog

A blog about economics in the South Caucasus.
Nov
03

Georgia Needs Punitive Damages

A few days ago, I was walking in Kostava Street towards the Philharmony when I passed a construction site that was separated from the sidewalk by a wooden fence. Suddenly, I heard the ugly sound of fabric torn apart. Yes, it had happened! My nice winter coat was ripped up by a rusty nail that stuck out of the fence, causing a huge hole in the coat that went down to the lining. Was it my own fault? Well, it was already dark and the nail could hardly be seen, and I was speaking with somebody walking next to me. Therefore, I think I am innocent. One rather ...
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Oct
17

Handling Frozen Conflicts: the Economic Angle

It now seems more and more likely that Eastern Donbass (the area currently controlled by the self-proclaimed Donetsk and Luhansk People’s Republics) will become a frozen conflict zone, a territory in which the Ukrainian government will have little power to enforce its laws and where slowly a parallel governance system, an unrecognized ‘quasi-state’, will emerge. In the absence of a viable military alternative, one option likely to be considered by Ukraine and its Western allies is to exercise ‘strategic patience’. As discussed in a Foreign Policy article...
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Sep
30

The Ice Bucket Challenge: Does Motivation Matter?

In summer, social media were flooded with videos showing your friends (and celebrities of all levels of prominence) pouring buckets of icy water over their heads. While some people enjoyed watching this (and even participated in the Ice Bucket Challenge), many were unnerved by this charity campaign which was hardly distinguishable from an ordinary spam attack, were it not for the fact that now your friends and acquaintances were spamming you. A third group however, showed the most interesting reaction: they became moral about it. For those who do not kno...
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Sep
26

Georgia’s New Immigration Law: Many Losers and no Winners

This year, the International School of Economics at Tbilisi State University (ISET) admitted nine Armenian students and one from Azerbaijan. They came to Tbilisi for a preparation course in August and all of them applied for residency permits before the first of September. All applications were exactly identical. Out of ten students, seven got their permits, two were denied, and one is still in process. The reasons for rejection were stated in most general terms, relating to Article 18 of the new immigration law. That article reads:  “An alien may b...
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Sep
19

The Puzzle of Poverty and Wages in Georgia

POVERTY PERSISTING… Any Georgian growing up in the “dark” 1990s (a literally dark, and rather gloomy period in the recent history of our country) would remember the canned milk powder distributed, together with some other goodies, to families with children aged below 5. These black and white cans were often used as flower pots in many of these families… Being a kid from that dark age, one author of this blog was surprised to discover that, according to the World Bank’s poverty estimations, Georgia is doing worse today than it did then...
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