Agricultural and rural development play an important role in the country’s socio-economic development. The restrictions imposed during the pandemic have hindered spring agricultural works which has significantly worsened conditions for farmers and stalled their future potential. Consequently, the Georgian government developed an anti-crisis plan, “Caring for Farmers and Agriculture”, that was presented on 12 March. The proposal entails two forms of aid: direct assistance and sectorial support. Table 1 summarizes each component of the plan:
Table 1. Suppo...
ISET Economist Blog
A blog about economics in the South Caucasus.
May
18
Jun
24
BACKGROUND
Agricultural production is associated with a variety of risks, including market, institutional, and production risks. An important production factor in agriculture is the weather. Its uncontrollable nature makes weather risk the prevailing risk to agricultural production. Farmers have various informal and formal means of transferring and mitigating these risks. Informal means include savings, diversification, off-farm activities, etc. The most common formal means of risk mitigation is insurance. Insurance is a contract that transfers th...
May
07
Since 2012, when the political party Georgian Dream took leadership of the country’s governance, economic [real] growth reached its highest rate in 2017 (5.0%). The drivers of this growth were construction (11.2%), hotels and restaurants (11.2%) and the financial sector (9.2%). However, a few sectors of the economy declined in 2017, and one was agriculture (-2.7%).
Experts on this sector agree that 2017 was a “bad year” for Georgia’s agriculture. Winter lasted longer and spring frost damaged fruit plantations. This was followed by some periods of drought...
Recent Comments
The growth in the construction industry is largely driven by foreign investment, both equity and debt, and supplemented by locally... Read More
Monday, 07 May 2018 10:10 AM
Thanks, Simon!Nobody should question the importance of FDI for Georgian agriculture. What we should question, however, is the tran... Read More
Tuesday, 22 May 2018 3:03 PM
Mar
18
According to the ILO’s Global Employment Trends Report, agriculture accounts for 32% of total employment globally, and 39% in Asia and the Pacific. In spite of this, it seldom tops young people’s “most wanted” wish list of careers.
In developed countries like Korea and Australia, employment in the agricultural sector is gaining more and more popularity, however, moving back to the countryside in developing nations remains associated with poverty, inefficiency and lack of progress.
In Georgia, the majority of the population is employed in agriculture, but...
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