The mountain of promises to modify Georgia’s liberal labor code has recently produced a little mouse in the shape of a statement by Deputy Prime Minister Giorgi Margvelashvili who, according to GeorgiaNews.ge, “branded the new labor code project a “dream of Rosa Luxemburg”. GeorgiaNews.ge also knows to tell that “Prime Minister Bidzina Ivanishvili supported Education Minister Giorgi Margvelashvili’s position on the matter and thought employers should be the side to enjoy the government’s support “at this stage”. The Prime Minister added employees should ...
ISET Economist Blog
A blog about economics in the South Caucasus.
May
31
May
29
Does Georgia have a well-developed financial sector? Certainly, proliferation of bank branches and automated teller machines in the capital city of Tbilisi might suggest that it does. And yet, the data indicates that for a country of its size, Georgia has a relatively small financial sector. One of the measures used to approximate financial development or financial depth of the economy is the deposits to GDP ratio. According to the IMF data, this ratio in Georgia is equal to 30,8% (in 2011)- one of the lowest indicators among the economies at simil...
May
27
It is an empirical fact that in market economies the economic activity shows cyclical patterns. The 19th century French economist Clement Juglar is generally attributed with having formulated the first coherent theory of what are known as business cycles. According to Juglar, the cyclical fluctuations are caused through lags in the adjustment of production.
In a market economy, there is no central planner with a birds-eye view on the whole economic system. Rather, what is produced in the economy is decided in an entirely decentralized manner through the ...
May
24
We are very happy to post the second part of Jacques Fleury's commentary on the Georgian Wine Industry. In the first part, Jacques reflected on the experience of surviving the Russian embargo, on the one hand, and dealing with a series of heavy-handed and incompetent government interventions, on the other. In the second part of his comment Jacques proposes a new vision for the future of the Georgian wine industry, a future in which the government and the private sector work hand-in-hand to support small vine growers and promote Georgian wines to ne...
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