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ISET Economist Blog

A blog about economics in the South Caucasus.
Nov
14

The Spinning of Georgia’s Political Carousel, 2004-2014

The sacking of Irakli Alasania, Georgia’s Defense Minister since October 2012, sent shock waves through the country’s political system. But it should not have. After all, Alasania is one of 9 incumbents in this key ministry since 2004. Moreover, with 2 years and one month in office he is tied for second place with David Kezerashvili as the longest serving Minister of Defense after Bacho Akhalaia (2 years and 11 months). Fourth on the list is Irakli Okruashvili (one year and 11 months). All other ministers served between 3 and 8 months. Neither should Ala...
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Nov
11

Armenia Generates Windfall Profits for Georgia

When Armenia entered the Russia-dominated customs union in 2013, fear spread among the Georgian public and policy makers. It looked as if Georgia would be economically squeezed in between Russia and Armenia, the latter being one of Russia’s staunchest allies in the region and, given its geopolitical dependency on Russia, sometimes seen as a little more than a Russian agent. Being wary about Russia’s economic influence in the region, it was straightforward for Georgia to respond to this development by upgrading economic ties with our Western allies. There...
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Nov
07

From Soviet to Post-Soviet Consumerism

In a sense, life was relatively simple back in the Soviet Union days. Consumers had few choices, and material aspirations were limited to the unholy trinity of “apartment, car and dacha”. That said, homo Sovieticus spent enormous amounts of time and energy in chasing material goods ranging from potatoes to nylon stockings and cars. A part of Soviet consumer behavior was about satisfying basic needs (as in the potatoes example above). But there was a discernible element of conspicuous consumption as well. Possession of a luxurious Pobeda car was deemed an...
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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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