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ISET Economist Blog

A blog about economics in the South Caucasus.
May
27

Short-Term Swings of the Georgian Lari: A Guessing Game with High Stakes

In the last two weeks lari depreciated, once again, against the US dollar. Georgian currency lost about eight tetri against its American counterpart, causing quite a stir in the media, among political groups and economic experts. While government authorities claimed that the recent developments are short-term fluctuations driven by negative expectations, Turkish lira depreciation, dollar’s global strengthening, and are therefore not connected to the fundamentals of the Georgian economy, the members of opposition were quick to blame incompetent fiscal and...
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Oct
15

Georgia’s New Gold Rush: Or the Economic Prospects of Export of Medical Marijuana

  This article continues the theme of ISET Economist blog “Decriminalize Marijuana?” written by my colleague Saba Devdariani in June 2015, where he described the philosophical aspects related to marijuana state regulations and medical consequences of its consumption. RECENT CHANGES IN LEGISLATION Three years after the blog was published, regulation of cannabis became the hottest topic of discussion in the social-political life of Georgia. On July 30th 2018, the Constitutional Court de jure legalized personal consumption of marijuana by declaring tha...
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Mar
12

Does Georgia Have One of the Largest Shadow Economies in the World?

In January 2018, an IMF Working Paper published new results on the shadow economy situation for 158 countries from 1991 to 2015. According to Medina and Schneider (2018), the shadow economy in Georgia during that period constituted, on average, 64.9% of GDP - the highest indicator in the world! In 2015 (the last year available), things were slightly better for Georgia, with the share of shadow economy standing at 53%. Still, our country was “outshone” only by Zimbabwe (67%) and Haiti (56%) in the world rankings. To add insult to injury, Georgia’s results...
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Dec
04

Your Guest Is My Guest, or Why Tourism Is Not a Zero-Sum Game

The South Caucasus is divided by high mountain ranges, often impassable political borders, and ethnic conflict zones. In addition to three independent states, the region also includes three unrecognized territories. Nakhichevan is separated from Azerbaijan’s mainland by Armenia’s Syunik region. Armenia’s border with Turkey and Azerbaijan, on the other hand, is sealed for political reasons. Though trampled by politics, the economic arguments for greater regional integration in the South Caucasus are truly powerful. For one thing, thanks to its strategic l...
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Recent Comments
Simon Appleby
The Vine and Wine Foundation of Armenia recently held its inaugural International Wine Conference in Yerevan, backed by GIZ. Guest... Read More
Saturday, 09 December 2017 7:07 AM
Simon Appleby
An interesting market for Georgia, oddly enough, is the Armenian Diaspora market (around 8 million people). Many diaspora Armenian... Read More
Saturday, 09 December 2017 7:07 AM
Eric Livny
Sounds really interesting, Simon! Ive recently interviewed Ia Tabagari, head of the Georgian kvevri (or natural) wine association,... Read More
Saturday, 09 December 2017 5:05 PM
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