ISET

ISET Economist Blog

A blog about economics in the South Caucasus.
Oct
28

Crime and Punishment in Georgia

According to CRRC Barometer surveys and other opinion polls, police has been until quite recently one the most respected institutions in the Georgian society. With 88% of the population holding a favorable view of its performance, police came second after church (93%) in the 2011 survey conducted by the International Republican Institute. In 2013, as little as 9% of Georgian citizens said they do not trust the police (an improvement of 2 percentage points over 2012). There are, indeed, good reasons for Georgian citizens to be happy with the quality of la...
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Oct
24

Tourism and Rural Development: The Case of Tusheti

In Georgia, it’s often said that tavisupleba mxolod mtebshia – freedom is only in the mountains. Indeed, the mountains have long shielded the small Georgian nation from much larger invaders, helping it maintain its freedom, as well as its unique culture, language and faith. Even today, getting into Georgia’s mountains is no easy task. Separated from the ‘mainland’ by the 3,000m high Abano pass, Tusheti, is an excellent case in point. The sheer ‘outworldliness’ of Tusheti, as well as its well-preserved indigenous traditions and architecture, are a powerfu...
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Oct
21

Market Twilight

Last week, I began to discuss the question whether Francis Fukuyama’s hypothesis about convergence to liberal democracy and capitalism is at least partially right. While the countries of the world have not been moving towards democracy in the last 25 years, he could still be right that the future belongs to the markets. This week, however, I will argue that this is not the case. CAPITALISM OF THE PAST: WARM AND COZY In the works of libertarians like Ayn Rand and David Friedman, one can find a deep-rooted conviction that the outcomes of markets are not on...
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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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