Speaking at the opening of the Tbilisi Silk Road Forum, Georgia’s new Minister of Foreign Affairs Giorgi Kvirikashvili evoked electric circuitry as a metaphor to describe the future of rail and road connections between Europe and Asia. A graduate of the prestigious math and physics Komarov School, Kvirikashvili explained that a sequential circuit – a simple chain – crucially depends on each and every one of its links. A parallel circuit, on the other hand, allows to redirect electricity flows (or cargo and passengers) through alternative routes.
Th...
ISET Economist Blog
A blog about economics in the South Caucasus.
Oct
15
Sep
14
It is easy to understand what it means for an economy to be weak or strong. We know that a strong economy is characterized by low unemployment and high growth rates. Other desirable traits are, for example, low levels of poverty and income inequality, when all citizens enjoy reasonable standards of living.
Things are less clear when we think about our national currencies.
When designating currencies as “weak” or “strong”, we usually think of the exchange rate against the dollar or the euro. Having a “weak” currency sounds like a bad thing, wh...
Sep
07
There is a distant rumble in the regional economy – one with a particularly Persian flair. Iranian commerce and exports are about to enter an unrestricted world market as part of the deal negotiated between Western partners and Iranian leadership over its nuclear enrichment program. If Iran can meet the terms of the agreement, sanctions on its exports and imports will be lifted within the next year. When such a large energy-producing economy goes from near autarky to free trade, this is bound to send ripples through the world economy. Georgia and the Sou...
Jul
24
Today I’m sitting down for a conversation across a continent and an ocean. Our guest is Professor Matthias Matthijs of the Johns Hopkins School of Advanced International Studies (SAIS). He is the editor of the renowned and timely book “The Future of the Euro,” and two-time recipient of the Max M. Fisher award for excellence in teaching at SAIS. We will be talking about the Eurozone crisis and the lessons other small-state economies and their policymakers can learn from Greece’s unfortunate situation.
Q. Professor Matthijs, thank you for sitting down...
Jul
06
Since the Rose Revolution, pro-Western Georgian politicians strive to lead their country into the apparent safe haven of the NATO defense collective. So far membership seems far off, causing disappointment among many Georgians and affirming those who preferred less integration in the Western geopolitical bloc. The continuing debate as to whether or not Georgia should assume full membership in the alliance may be obfuscating the reality that the present relationship with the alliance is the most ideal for Georgia. It allows for a nearly unrestricted...
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