The new issue of Investor.GE is out, this time focusing on Georgia as the hub for the South Caucasus and Central Asia. This quote from the lead article caught my attention:
I am amazed at how many requests I am getting from major multinationals from all industry sectors to speak with them about doing business in Georgia. I am also increasingly seeing multinational companies who are already in the region, looking to change their business model to move many of their activities through Georgia," he said, noting that so far most interest comes fro...
ISET Economist Blog
A blog about economics in the South Caucasus.
Oct
24
Oct
22
Starting from October 15, Georgian consumers have to pay about 5-10 tetri more for one loaf of bread. Many large producers increased their prices; smaller bakeries (“tone”) followed suit by either raising the price or reducing the weight of the traditional Georgian bread. While unpleasant, this change in the price of bread is nothing but a forced reaction to a sharp increase (25%) in the price of wheat in the global commodity markets dating back to July 2012. The question, therefore, is not why bread and flour prices increased. Rather, it is why these po...
Oct
19
Economics suggests that competition in a market brings more welfare to a country. Anti-monopoly agencies exist to create policies that limit market dominance and achieve competition. There are, of course, cases when natural monopolies emerge (for example, railways – where no one would build a parallel line to an existing one) and the solution to prevent monopolies in such instances is to regulate the businesses or take them into state ownership. It is, however, difficult, but not impossible, to find an instance when a market is competitive, but where no ...
Oct
18
Free Policy Briefs has an insightful post on political instability in Kyrgyzstan.
The literature, typically using panel data covering many countries, shows that higher government turnover rates reduces growth significantly in both economic and statistical terms, even for established democracies. Looking at government turnover in more polarized societies and unconstitutional change in power (revolutions and coups), the effect is estimated to be even larger.
Is this relevant for Georgia? Only the future will show.
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