As reported in our Khachapuri Index Column, the prices of key khachapuri ingredients have started rising in July, given their strong correlation with the annual cycle of agricultural production in Georgia. A standard portion of Imeretian khachapuri can now be cooked at slightly more than 3GEL, on average. Now, while 3GEL does not sound like a lot for the expats and the better off Georgians, it may be beyond reach for many of the less fortunate Georgian households. To remind ourselves: about 9.2% of Georgia’s population (close to 400,000 people) are ...
ISET Economist Blog
A blog about economics in the South Caucasus.
Sep
05
Aug
30
The scars of the 2008 global financial crisis, and the festering wounds of the ongoing European debt crisis seem to have obscured one simple textbook truth: long-term economic development largely depends on the growth of the total factor productivity (TFP), sometimes referred to simply as the technological progress.
TFP, however, is an elusive phenomenon. This is usually the unexplained part of the output growth, the “residual” left over after we have accounted for all other known contributing factors. Another uncomfortable truth is that technologi...
Aug
28
With the recent changes in the Georgian government the Partnership Fund has received renewed attention. The fund is now head by two political heavy weights, the former Prime Minister, Nika Gilauri, and the former Minister of Finance, Dima Gvindadze. As the Messenger reports:
The foundation aims to facilitate cooperation between the public and private sector, creating investment projects, jobs, attract foreign investment and generally contribute to the development of the country’s economy. The four priority sectors include energy, agriculture, industry an...
Aug
22
We economists tend to search for economics behind everything. It's as if it is some kind of disease, for which there is no cure. I admit, I myself suffer from it.
Last weekend I visited Shatili, a historic highland village in Georgia located near the border with Chechnya. This unique fortress built with stone and mortar, isolated from the rest of the world makes you think about your ancestors. Our guide told us many interesting facts about people from the highlands, and one of them attracted my attention very much. Particularity the existence of “Urvadi”...
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