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ISET Economist Blog

A blog about economics in the South Caucasus.
Luc Leruth has not set their biography yet
Mar
22

COVID and the City – A Spatial Fracture in Georgia?

THE CONTEXT The COVID pandemic raises a vast number of questions for economists, though researchers have mostly focused on advanced economies and on the economic ‘scarring’ that the virus has inflicted. Not all, however, as a few economists have been interested in the likely evolution of cities after the pandemic. They observe that some cities, in particular travel hubs, have been epidemic hotspots, while many others, usually smaller, have been reasonably spared. More rural areas have also been less affected, although with strong variation across regions...
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Feb
08

To Prevent, to Repair, or to Start Over: Should Georgia Put ‘Maintenance’ Ahead of ‘Investment’ in Its Development Dictionary?

In a recent blog post, Y. Babych and L. Leruth raised several issues related to public infrastructure management in the city of Tbilisi. They observed that the consequences of poor past management practices were highly visible. But some of these consequences are also less visible or less immediate. Take schooling, for example. If the authorities fail to plan for the expected increase in the city’s population over the next few years and neglect to build an adequate number of kindergartens/pre-schools, the results will be overcrowded, fast decaying pre-sch...
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Dec
21

Improving the Mix and Match in the Labor Market: Can Education Management Information Systems help?

Education in Georgia is essentially the responsibility of the public sector (the vast majority of total enrolment in the case of General education) and has received a lot of attention in recent years with public outlays to the sector tripling between 2010 and 2019 to reach 3.6 percent of GDP. This remains low by OECD standards, however: OECD countries spend on average a little under 5% of their GDP on education.1 This may partly explain why PISA scores have remained low in Georgia. Out of 78 countries, Georgia ranks 67th, 71st and 74th in the three PISA ...
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Nov
16

Tbilisi: a Growing City with Growing Needs

  Until 2014, the population of Tbilisi remained more or less constant, even slightly decreasing at the same rate as the population of the country as a whole. Since 2014, though, there has been a marked migration to the capital as seen in the graph below. A similar trend is observed all over the world.  On average, a little over half of the global population currently lives in cities and, according to a recent report by the UN, that figure is expected to increase to 66 percent by 2050.1 Georgia is almost there: taken together, the country’s 7 l...
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