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ISET Economist Blog

A blog about economics in the South Caucasus.
May
25

The Proposed Examination Reform: Don’t Change a Winning Concept!

Studying at Georgian universities in the 1990’s was ludicrous. The students or their parents negotiated with the heads of the exam committees and/or the deans of the faculties about the “terms and conditions”, i.e. the bribes that would have to be paid and the “services” that would be delivered in exchange. One could choose from a broad menu of different corruptive services, covering admissions, grades, and scholarships, and the price one had to pay varied according to what one had chosen. The law of supply and demand caused highly demanded professions l...
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May
22

Europe Wants Georgia. But Not Georgians

In March 2015, 31-year-old Tamar Trapaidze died of severe toxicity in Italy. Like many Georgian women of her generation, Tamar was an illegal immigrant employed as an in-home care worker by an Italian family. Being “illegal”, she must have feared deportation, which is probably why she was unable to receive adequate medical treatment. Despite all the risks it entails, illegal immigration is a key survival strategy for many Georgian families. Since 2002, presumably the best period in Georgia’s recent history, the country has lost 14.7% of its population, m...
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May
15

The Paradox of Soviet Excellence

Here is a question that has bothered me for a while and I am surprised that nobody else seems to have asked it before: How comes Western countries had the better orchestras (collectives) and Soviet Union the better classical music soloists during the Cold War? Would one not expect the contrary? And, perhaps more importantly: can economists learn something relevant from this observation? MUSIC AND SPORTS There were great orchestras both in the East and in the West and one could argue endlessly who were the greatest soloists. However, Van Cliburn is still ...
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May
11

Georgia in the Cycle of History

The second of May, 2015, may well go unnoticed by historians of the future; but I am convinced that it marks a watershed not only in Georgia’s recent evolution – but also, maybe, in the history of our times... On the surface of life, this Saturday marked maybe the Saturday when tourists finally returned to Tbilisi. At about 2 p.m. spotted a group of about thirty Dutch tourists assembling near the Marriot Courtyard hotel; and there were two further groups moving slowly down the sidewalks of Leselidze Street. Maintaining the festive note, the converted Lon...
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