ISET

ISET Economist Blog

A blog about economics in the South Caucasus.
Apr
08

Can Quotas Do It?!

Despite substantial improvements in education, professional development and political participation, women remain underrepresented in leadership positions in politics, and Georgia is no exception. In 2017, the country ranked in 94th place (out of 144), according to the Global Gender Gap index (GGI),1 which indicates that Georgia is not performing well in closing the gender gap. The GGI serves as a comprehensive and consistent measure for gender equality, which can track a country’s progress over time. Economic participation and opportunity, educational a...
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Feb
12

“Just a Bit High”?

Interest in bank profitability is increasing every year. Google search data for Georgia shows that in 2017, there were 4,700 pieces (articles, blogs, comments and other documents) found for “Banks’ Profit” (ბანკების მოგება) while the same indicator in 2016 amounted to merely 2,990 pieces. In 2015, it was even smaller – 2,160 pieces. This growing interest has its own objective reason, which is simple:  In 2017, compared to the previous year, profits for commercial banks increased dramatically by 190 mln. GEL (if you like percentages, it is 28%), and ...
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Dec
18

Behavioral Economics of New Year’s Resolutions

“January is always a good month for behavioral economics: Few things illustrate self-control as vividly as New Year's resolutions. February is even better, though, because it lets us study why so many of those resolutions are broken.” Sendhil Mullainathan, Harvard University. It is that time of a year when we take time to reflect upon our flaws and weaknesses to find areas where we can make positive changes for the New Year. In our imagination, there is an old self who we will leave behind on the New Year’s Eve, and we will welcome our new 2018 self, hea...
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Oct
09

One Notch More Attractive to Investors with Deep Pockets

Just recently, a rare occurrence made the headlines in Georgia: Moody’s Investors Service upgraded the government of Georgia’s local and foreign currency issuer ratings first time in seven years, to Ba2 from Ba3, with commentary that the outlook remains stable. This news was met with great excitement, but was soon overshadowed by the unfortunate news of Georgia’s downgrade on the Global Competitiveness Indicators, without fully appreciating or understanding the significance of the Moody's upgrade. SO WHAT IS IT ALL ABOUT? Moody's Investors Service provid...
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Jul
01

How Can Georgian Economy Benefit from Bitcoin?

RECENT DEVELOPMENTS For the first time in history, the price of Bitcoin broke its highest record (Figure 1) rising above 2,900 USD during the last week of June, 2017. One of the reasons why the market unexpectedly became optimistic about Bitcoin could be the fact that in April, the Japanese government formally accepted1 the cryptocurrency as a mean of exchange, which gave it more validity in Asia’s richest economy. Moreover, there has been significant growth of international money transfer services that use Bitcoin in order to move currency from one coun...
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