Issue #1282

Issue no: 1282

• FEBRUARY 5 - 11, 2021 • PUBLISHED WEEKLY

FOCUS ON EASING RESTRICTIONS With COVID cases down, the gov't speeds up plans to reopen the country

PAGE 2

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In this week’s issue...

"Putin the Poisoner," Navalny Jailed for 2.5 Years NEWS PAGE 2

Russian Singer Philipp Kirkorov on the Lithuanian Blacklist & Navalny Facing Prison: We Look at the Politics behind the Decisions POLITICS PAGE 3

Russia & Abkhazia. Looking Beyond the Bilateral Niceties POLITICS PAGE 4

The Post-Ivanishvili Political Landscape in Georgia POLITICS PAGE 5

Tourism & COVID-19 in 2020: An Overview BUSINESS PAGE 6

All 51 Opposition MPs Formally Remain in Parliament

BY TEAM GT

A

ll 51 opposition MPs who requested the termination of their mandates are to remain Members of Parliament, as this week none of the members of the ruling Georgian Dream (GD) party voted for termination of their mandates.

As such, the boycotting opposition formally remains in Parliament.

Irakli Kobakhidze, GD Chairman, noted that with this move, the ruling team is giving the opposition "yet another chance" to get involved in the democratic process and fulfill the requirements of their electorate.

He added that based on the information obtained by GD, up to 20 more opposition lawmakers are willing to enter Parliament; however, they refrain from doing so due to pressure from other members of the opposition.

In turn, opposition members assess the move of the parliamentary majority as "yet another attempt to continue trading with mandates and dragging people into Parliament."

Continued on page 3 Image source: parliament.ge

ISET Business Confidence Index | New Year, New Start?

ISET PAGE 9

Painting the World, Remotely, with Lika Torikashvili SOCIETY PAGE 10

Meet the Artist: Sofia Varazi CULTURE PAGE 11 CULTURE PAGE 11 Prepared for Georgia Today Business by

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NEWS

GEORGIA TODAY

FEBRUARY 5 - 11, 2021

Corona Updates: Decrease in Daily Cases Leads to Easing of Restrictions

BY ANA DUMBADZE

D Vake Park to Be Closed for Rehabilitation

BY ANA DUMBADZE

V

ake Park, a public park in the central district of Tbilisi, will be temporarily closed due to rehabilitation works, Mayor Kakha Kaladze announced at the City Hall government session today.

He noted that due to the full-scale rehabilitation works, from this week, Vake Park will be completely closed "Full-scale rehabilitation works of Vake Park have been launched. It is very important for us to renew and arrange recreational spaces. Many concrete steps have been taken in this direction and important projects have been implemented. This is a space located in the center of the city and we decided to renovate it. The important elements of

this park, due to the status of cultural heritage monument, will be preserved and maintained," said Kaladze.

He added that before planning the rehabilitation of Vake Park, Tbilisi City Hall involved the local population in the process and took into account their proposals: "At the stage of planning, we had active communication with the population, their involvement was quite high and they had a lot of interesting ideas that were considered in this project. The works should be completed by the end of the year. I am sure that after the rehabilitation, another good recreational space will appear in the city," said the Mayor.

The park was opened in 1946 and is located in the Vake district of Tbilisi at the western end of Chavchavadze Avenue.

A World War II Memorial sits at the top of the hill in the park.

Georgia Ranks 91st out of 165 Countries in EIU's Democracy Index 2020

uring the week, the epidemiological situation in Georgia has been relatively stable, with the daily number of new coronavirus cases significantly decreasing. The above improvement led to the government’s decision to ease certain restrictions earlier than planned.

From February 8, municipal transport (metro, buses and minibuses), and public markets and fairs, will open countrywide. Intercity transport, however, will remain limited to taxi and private car.

From February 15, the education process will be resumed in the classrooms in Tbilisi, Rustavi, and Kutaisi, just two weeks behind the same allowance throughout the rest of the country. The same day, outdoor catering establishments will be allowed to reopen to sit-out customers.

WEEKEND & CONTINUED CLOSURES Transport, shopping malls, shops, fairs and restaurants will be closed on weekends; Fitness clubs, swimming pools, cinemas, entertainment centers, bars, and nightclubs will remain closed; The curfew remains in force between the hours of 21:00 and 05:00; Large-scale ritual events (weddings, funerals, etc.) continue to be prohibited.

THE STATISTICS During the past week, 500-800 cases on average have been reported daily against the background of expanded testing, with Georgian capital Tbilisi recording the highest number of COVID-19 cases, followed by Imereti and the SamegreloZemo Svaneti regions.

Regarding the test-positive indicator, the daily rate as of February 3 is 3.51%, for the past 14 days - 4.41% and 7 days 3.7%.

Georgia’s total case tally now stands at 260,480 since February last year, of which 251,748 people recovered and 3240 died.

At present, active cases of COVID-19 have reached 5466. 2341 of those individuals are being treated in hospitals, of which 1109 are stationed in Tbilisi, 184 in Adjara and 463 in Imereti. 529 patients are in critical condition: 231 in Tbilisi, 45 in Adjara and 133 in Imereti. Ventilators are currently being used to keep 153 patients alive: 107 in Tbilisi, 6 in Adjara and 14 in Imereti. 277 individuals are in clinical hotels, of which 185 are based in Tbilisi, 81 in Adjara and 11 in Imereti. 2848 individuals are being treated at home.

430 individuals are in quarantine, of which 200 are located in Tbilisi and 126 in Adjara.

Image source: georgiantravelguide.com

THE VACCINE Prime Minister Giorgi Gakharia reported that the first doses of the Pfizer vaccine, which has tested over 95% effective against the coronavirus, will arrive in Georgia by late February.

He thanked the Director-General of the World Health Organization for his unprecedented support in this.

“The first doses of the Pfizer vaccine are due to arrive in Georgia by late February. Special thanks to my country's and my personal friend, Dr. Tedros Adhanom Ghebreyesus for supporting Georgia.

According to the National Plan for Vaccination, the first doses will be administered to healthcare workers,” the PM said.

TIGHTENING THE RULES Notably, in parallel with easing restrictions on the coronavirus pandemic, the government plans to tighten the rules.

As such, in case of repeated violation of the rule of wearing a face mask, the fine will be doubled. Based on the current regulations, a person is fined 20 GEL for not wearing a face mask. When doubled, the fine will amount to 40 GEL. The PM noted that tightening the rules “Should reveal the responsibility of each citizen and organization.”

THE PROTESTS Prior to Thursday’s government announcement on lifting some restrictions two or three weeks earlier than planned, the Gastronomic Association of Georgia published a public post saying that on Saturday, February 6, some 200 restaurants will resume operations despite the still-imposed COVID restrictions. Levan Qoqiashvili, the founder board director of the Association, wrote of the decision on Facebook.

“Unfortunately, the expectations of the

hospitality industry were not met; instead of finding a reasonable solution, the meeting with the government officials was postponed and then did not take place. Since we do not see any other solution, despite persistent efforts, we decided to open restaurants on February 6th. We fully understand all aspects of our determination and it is not easy for us to make such a decision,” Qoqiashvili wrote.

For two months, from November 28, restaurants across Georgia have only been able to work through "delivery service", with hosting a guest on the spot resulting in a fine of 10,000 GEL. From February 1 (except weekends) Batumi restaurants have been allowed to host guests in open spaces, but not restaurants elsewhere in the country.

On Wednesday, Georgia’s Economy Minister Natia Turnava warned restaurant owners that the illicit openings planned for February 6 will be countered with a harsh government response.

“Our Ministry has been blamed for lack of communication, which is not the case.

We communicate on an almost daily basis with representatives of the hospitality sector, including restaurant owners. Because restaurants cannot be opened in other parts of Georgia except Adjara, it is understandable that many are dissatisfied. But this is no excuse for breaching the law and disregarding the epidemiological situation in the country. If the restaurants defy the rules and reopen on February 6, the government’s response will be harsh,” she said.

Following Thursday’s announcement allowing restaurants with open-air spaces to serve sit-out customers from February 15, we await updates from the Gastronomic Association of Georgia as to whether Saturday's protest “opening” will go ahead.

"Putin the Poisoner," Navalny Jailed for 2.5 Years

BY NINI DAKHUNDARIDZE

G

eorgia has ranked 91st among 165 nations and two territories in The Economist Intelligence Unit’s (EIU) Democracy Index, improving its position by two points compared to the 2019 ranking.

The EIU’s report says that almost 70% of countries recorded a decline in their overall democracy score due to the hardships and controversies caused by the coronavirus pandemic.

“The withdrawal of civil liberties, attacks on freedom of expression and the failures of democratic accountability that occurred as a result of the pandemic are grave matters. This is why the scores for many questions in the civil liberties category and the functioning of government category of the Democracy Index were downgraded across multiple countries in 2020”, reads the report.

EIU rates the state of democracy based on five categories: electoral process and pluralism, the functioning of government, political participation, political culture and civil liberties.

Based on the scores on a range of indi-

cators within these five categories, each country is then classified as one of four types of regime: “full democracy”, “flawed democracy”, “hybrid regime” or “authoritarian regime”.

As regards the Eastern European countries, the report reads: “In total, the scores of ten countries rose in 2020, while 17 fell and one stagnated. This clear trend of deterioration across the region indicates the fragility of democracy in times of crisis and the willingness of governments to sacrifice civil liberties and exercise unchecked authority in an emergency situation. The pandemic also served to highlight persistent problems in the region, such as poorly functioning institutions and a weak political culture.”

With its score of 5.31, Georgia is considered a “hybrid regime”.

Only Belarus, Kazakhstan and Russia are classified as “authoritarian regimes” in the region.

The Economist Intelligence Unit’s Democracy Index provides an annual, in-depth analysis of the state of democracy worldwide in165 independent states and two territories.

R

ussian opposition leader Alexei Navalny, during his February 2 trial, again accused Russian President Vladimir Putin of attacking him with novichok poison, and unrightfully prosecuting him.

"I inflicted deadly resentment on him by surviving with the help of good people, pilots, and doctors; by not hiding behind a security guard in a bunker; and then something even more horrible happened - I took part in an investigation into my own poisoning, showed and proved that Putin carried out EFSB, 'An attack to kill me,'" Alexei Navalny told the court on Tuesday. He also denounced Putin as "Putin the Poisoner."

The court had to determine whether real custody should be replaced by probation in the old case, which is widely regarded as politically motivated.

Throughout the hearing, the Kremlin critic ridiculed the claims that he broke his parole while 5 months in recovery from being poisoned.

The world is outraged by Navalny's

arrest, which was followed by protests by tens of thousands of people across Russia on Sunday - the largest anti-government protests in a decade. Among the people detained during Sunday's protests was Navalny’s wife Yulia. Navalny joked as she waved at him in the courtroom: “I saw you on TV in my cell. They say that you are constantly violating public order.

Bad girl! But I’m proud of you.”

“I’m going to continue to fight. I’m going to continue to fight you. I’m not going to fear you,” the opposition leader

told Judge Natalia Repnikova in Moscow City Court.

“This is not a demonstration of strength.

It is a demonstration of weakness,” said Navalny, stating that Russians will not be scared off because of his trial.

The independent watchdog OVD-Info reported that more than a hundred people had been arrested near the courthouse and nearby streets.

After a few hours of consideration, the court decided to send Navalny to prison for more than two and a half years.

POLITICS

GEORGIA TODAY FEBRUARY 5 - 11, 2021

3

Russian Singer Philipp Kirkorov on the Lithuanian Blacklist & Navalny Facing Prison: We Look at the Politics behind the Decisions INTERVIEW BY VAZHA TAVBERIDZE

T

he Russian pop singer Philipp Kirkorov will not be able to perform or enter Lithuania for five years, after the country added him to its blacklist for supporting Moscow's policies in Crimea. Indeed, this interview was supposed to be dedicated to his being put on said list, but, meanwhile, bigger things have happened – namely, Alexey Navalny’s arrest, which prompted mass uproar. The EU’s High Representative of the Union for Foreign Affairs and Security Policy, Josep Borrell, is set to fly to Moscow to meet Kremlin head honchos and advocate on Navalny’s behalf. Could it be another case of too little, too late for the EU? And, on the Kirkorov case, just how well does the West get Russian soft power? We spoke to Dr. Nerijus Maliukevicius, a lecturer and researcher at the Institute of International Relations and Political Science, Vilnius University, to pick his brains on these questions and more.

“What’s become evident is that the West labored under the illusion that the court’s decision would be lenient, or even that Navalny would be released then and there,” Maliukevicius tells us.

“Which obviously proved not to be the case. And now the question of additional sanctions is back on the table again.

“While the EU is usually rather reluctant to embark on a path of sanctions and prefers to explore every other venue before resorting to them, once they are in place, they do take their toll, as we’ve seen so far in relation to Russia. How far they can go? Ideally, they could target Nord Stream II, but that would need Germany’s approval first. Alternatively, the West could consult the list that Navalny’s team had of the people involved in Navalny’s case.

“To put the icing on the cake, there are enough people in Navalny’s documentaries that have been outed as essential pillars of Putin’s support system in Russia. Targeting them would also underline the impact that Navalny’s work has.”

WHAT DO YOU THINK THE KREMLIN’S REACTION WILL BE? WILL THEY CAVE IN? I think they, or specifically Putin, made a very calculated move regarding Navalny’s arrest. He is essentially a political hostage right now, and Putin will use him as a bargaining chip to negotiate with the West, all the while creating the

impression of a reasonable man who’s willing to acquiesce to their demands.

For example, as a new page, or reset of relations with the new Biden administration. Or he’ll trade Navalny’s release as a guarantee that the Nord Stream 2 project is kept alive and well.

EVERYONE IN POST-SOVIET SPACE KNOWS WHO PHILIPP KIRKOROV IS. WHAT WAS THE PUBLIC REACTION WHEN IT CAME OUT? Quite subdued compared to what it could have been had Kirkorov been sanctioned years ago. 10 years ago, it would have created a furor, mostly amongst sympathizers of Russian music, but now, we just have a few disappointed voices amongst Kirkorov sympathizers. But it's not an issue. A real, harmful issue was his constant participation in Putin’s political agenda, and the formal issue was that he was a constant visitor to Crimea against Ukrainian law, and that is why this step was taken.

DOES SANCTIONING KIRKOROV RAISE THE PUBLIC'S AWARENESS ON WHY SANCTIONS ARE NECESSARY? ON WHY THERE'S A NEED TO DETER RUSSIA? I agree that publicity of this move is enormous, and the argument brought forward to defend Kremlin-linked cultural figures is that one should not mix politics with culture. But this mantra is very easy to counter, in truth: Kirkorov and his like are exactly the people who started mixing politics and culture, who deliberately mixed the Kremlin's politics with cultural activities. A short while ago, Kirkorov and some like-minded individuals wrote and released a supportive song for Lukashenko during the Belarusian protests. Basically, this move underlines the reality that culture and politics are not separate things in contemporary Russia, and that we must take adequate measures against such a tool of soft power: we simply cannot look the other way and ignore the activities of those who use cultural activities for the benefit of politics.

HOW POTENT AN INSTRUMENT IS THAT IN THE KREMLIN'S ARSENAL? I would say it's quite potent. It's a tool to keep this symbolic, overarching Russian, or Russian-speaking, world together, and therefore it is quite extensively financed by the Russian state, including Russian state TV, and includes cultural activities, concerts that allude to a post-

Russian singer Philipp Kirkorov. Image source: lrt.lt

Soviet togetherness, this soviet nostalgia, and so on. It is a serious tool, and it runs contrary to our national security agenda.

GEORGIA HAS HAD TO ENDURE MUCH MORE MISFORTUNE FROM THE KREMLIN THAN LITHUANIA SINCE THE 90S, YET PEOPLE LIKE KIRKOROV, LUZHKOV AND THEIR ILK CAN STILL SAFELY VISIT, PERFORM OR CONDUCT BUSINESS. WHAT WOULD BE YOUR TAKE ON IT? You should really approach the issue of the soft power of Russia as a kind of gradual induction of communities and societies into this Russian world, Russian language world, into an information bubble which is later used very aggressively against the same communities, against the same societies. If those cultural figures, Putin's cronies, are the ones that signed letters agreeing with the occupation of Crimea, agreeing with the aggression in Georgia,

they are basically putting themselves on the list of personas non-grata, and that’s the way it should be seen. Similar precautions should be taken by the West in general, because as things stand, Russia commits all these atrocities in the neighborhood and nonetheless they expect to be treated with the principle of human rights, or by western business principles in the West. You cannot have both; you cannot be authoritarian and aggressive against your neighbors and then have ludicrous business projects in the West.

DOES THE SAME LOGIC APPLY WHEN PERFORMERS OR SPORTSPEOPLE FROM GEORGIA GO TO RUSSIA? SHOULD THIS BE SEEN IN A SIMILAR PRISM? I would say what should be voiced quite publicly: consider the simple personal security risks for such actions, what could happen to the Georgian or Lithuanian artists who decide to go to Putin's

Russia. It’s also about ideological issues, how it will be perceived back home. In Putin's Russia, everything is politics, and if you want to be on Russian state TV for the New Year's Eve carnival, you simply have to be pro-Putin and proCrimea occupation, and so on.

AND IF YOU WANT TO PLAY IN ARMY-FUNDED SPORTS CLUB CSKA, THE SMALLEST PRICE YOU'LL HAVE TO PAY IS THAT YOU WON'T BE ALLOWED TO OPENLY CRITICIZE THE ANNEXATION OF CRIMEA. We no longer have clubs such as CSKA in Lithuania; we don't have soviet-type sports clubs. But in Russia, nothing has changed since soviet times. It directly linked sports to army units, and then institutions. You have to realize it, and then see that this argument of not mixing politics with sports or music becomes absurd, because you are simply ignoring the Russian reality.

All 51 Opposition MPs Formally Remain in Parliament Continued from page 1 51 out of 60 opposition MPs filed applications for the termination of their parliamentary mandates. They are demanding the termination of their mandates obtained as a result of the October 31 parliamentary elections, as they believe the results were rigged by the incumbent government.

At Tuesday’s session of Parliament, Avtandil Enukidze was elected as ViceSpeaker from the opposition quota. He was supported by 82 votes for the post.

His candidacy was presented to Parliament by the deputies from the 'Patriots Alliance' electoral list. Despite the party's boycotting of Parliament, in January, Enukidze entered Parliament together with deputies Fridon Injia, Davit Zilfimiani and Gela Mikadze, replacing the first three numbers of the party's list Irma Inashvili, Giorgi Lomia and Gocha Tevdoradze, thus separating himself from the Patriots' Alliance and creating a new party, the 'European Socialists.'

Two members of the opposition, Aleko Elisashvili and Levan Ioseliani, representatives of the Citizens Party, started performing duties as MPs on Tuesday.

They made the decision to enter Parlia-

ment on January 29 after reaching a final agreement with the ruling party Georgian Dream. A memorandum was signed between the Georgian Dream and the Citizens Party, based on which the signatory parties agreed to the implementation of a fundamental electoral reform.

Elisashvili advised the boycotting opposition "not to be the hostage of their words, and to start working in Parliament," adding that the country does not need a revolution.

He noted that the issues agreed with the ruling party should be initiated at the legislative level before March 1, otherwise he and Levan Ioseliani will leave Parliament again.

PRESIDENT CALLS ON THE OPPOSITION TO “THINK CAREFULLY” The President of Georgia Salome Zurabishvili addressed the opposition and majority Tuesday morning, before the vote for the termination of the mandates of the opposition lawmakers in Parliament.

Zurabishvili called on the opposition to think carefully, and the Georgian Dream to refrain from making a hasty decision.

"Recently, Georgia has moved to a full

parliamentary system, and with the recent elections, people elected a multi-party parliament, which is a new level of democracy.

"Today, the country needs to fully implement this system! Time is running out! The crisis caused by the pandemic requires an efficient, fast-acting parliament and a reasonable approach from everyone! Political controversy cannot meet these difficult challenges! It is time for unity and solidarity inside the country, as well as at the international level!

"At this important stage, the opposition has a big role to play: first, because it has never been so strong in parliament - 60 seats out of 150, eight opposition parties,” said the President.

She noted that the opposition has a great responsibility to the electorate, as they promised victory and not to stand in the streets.

“I call on both sides to make sensible decisions, which will be a step in the best interest of the country and not aimed at narrow interests. I urge the opposition to think, respect their voters and fulfill the obtained mandates. I call on the majority not to give in to the temptation of a single-party rule, refrain from a premature decision on opposition mandate termina-

tion, and give the opposition more time to make the right decision. It is the demand and expectation of our society. We should all respect and take care of it,” the Georgian President said.

US AMBASSADOR: I HOPE POLITICAL PARTIES WILL WORK TOGETHER IN PARLIAMENT On Wednesday, US Ambassador to Georgia Kelly Degnan said she believes that the leaders of political parties, in order to achieve a compromise on the differences between them, should give priority to the interests of the country and take into account the opinions of the voters.

“Georgian people say in various polls that the main problems for them are unemployment, high prices, and poverty. They also say they want MPs to work together on these issues in Parliament. I hope the parties will take this into account when discussing the various options for overcoming the differences between them,” the Ambassador said.

She expressed hope that the urgency of the issues that concern Georgian society will push the political parties to work together in Parliament.

“I hope the party leaders will put the interests of the country first, listen to what is important for the voters, and that is jobs, high prices, poverty, and the economic consequences of COVID-19. I believe the urgency of resolving these issues will push the parties to reach a compromise, find solutions to the problems, and come to Parliament to work on these issues,” she concluded.

EU AMB: MAINTAINING MANDATES FOR OPPOSITION MPS WAS THE RIGHT MOVE “Yesterday, Parliament decided not to terminate the mandates of opposition MPs, which, I think, was the right move.

This is a precondition for maintaining the dynamics of continued negotiations,” EU Ambassador to Georgia Carl Hartzell told reporters on Wednesday.

“I believe that all the opportunities that will allow participation in the work of the parliament based on their role will be the only good result. The rest, in my opinion, will be an unfavorable situation for everyone, because it will be the failure of the ruling party, the failure of the opposition and, most importantly, the failure of Georgian society,” said the Ambassador.

4

POLITICS

GEORGIA TODAY

FEBRUARY 5 - 11, 2021

Russia & Abkhazia. Looking Beyond the Bilateral Niceties

BY EMIL AVDALIANI

W

hile the international community was busy covering the results of the Second Karabakh War, in November 2020, Georgia’s Russia-occupied region of Abkhazia signed a 46-point program to strengthen the framework for a unified socio-economic space with Russia. What could have otherwise been seen as a step towards alleviating the territory’s economic troubles, the program effectively means a de facto annexation of Georgia’s region by Russia.

The latest agreement favors Moscow.

Multiple provisions appeared which were absent in the 2014 treaty. For instance, the latest agreement aims at creating various provisions for the sale of local real estate, among them a stipulation on dual citizenship, allowing Russians to get Abkhaz passports. A whole range of laws will be introduced whereby Russian investors will be able to invest money in and buy majority shares in what still remains valuable in Abkhazia.

The latest agreement also proposes allowing the Russians to buy into Abkhazia’s energy sector. Additionally, the Abkhaz will make legislative and administrative amendments according to the Russian law in the social, economic, health and political spheres. There is also a stipulation on simplification of the legal procedures for Russian investors.

This could help a decrepit Abkhazian economy, but growing harmonization with Russian laws also increases chances for a de-facto merger with Russia. This dilemma between closer cooperation with Russia and deep fear of Russian

Image source: kremlin.ru

intentions has always haunted the Abkhazian political class, but now it will be even more pronounced. Though officially the new “socio-economic” program does not involve a change in Abkhazia’s political status, the Abkhazian elites fear they are heading down the path to incorporation into Russia.

Criticism prompted de facto president of Abkhazia Aslan Bzhania to deny insinuations about Abkhazia’s loss of “sovereignty” by emphasizing positive elements of the document, namely the re-opening of the Sukhumi airport. Bzhania also cited Abkhazia’s chronic energy shortages and the acute need for Russian assistance. Still, fears persist. After all,

Abkhazia has never entertained the idea of merging with Russia, as is the case with another region of Georgia – South Ossetia, likewise controlled by Russian forces.

Russia has been playing a long game, with pressure on Abkhazia mounting over the course of 2020. With the forceful resignation of Moscow-chosen candidate, Raul Khajimba, Bzhania’s candidacy was not viewed with much excitement by the Kremlin officials. As a result, Bzhania had to make multiple visits to secure what increasingly turns out to be a shrinking Russian funding.

The pandemic worsened the economy in the region, and Russia was largely

unwilling to help financially, but when it did, it came with the price of deepening integration plans.

Of all the separatist regions Russia controls, Abkhazia is arguably the most strategically located. A passage from the North to the South Caucasus, the region is also famous for its harbors and military infrastructure. But it also allows Russia to forestall NATO/EU expansion into the region. Even on an economic level, Abkhazia is far richer than South Ossetia. This factors into Russia’s drive to maximize the benefits from Abkhazia, but it also exemplifies Moscow’s changing narrative on separatist regions, its dilemmas, and a number of long-term

objectives.

Abkhazia is slowly losing its last vestiges of de-facto independence. With Russian investments into the energy sector, and land purchases, the region will effectively turn into a de-facto Russian region.

Furthermore, Russian plans in Abkhazia could be seen within the context of Russia’s push to solidify its presence in the South Caucasus, especially along with the events in Karabakh and Russia’s peacekeeping mission there. Economic inroads into Abkhazia also mean a further distancing of other potential players, such as Tbilisi and the collective West.

Soviet-American Analogues OP-ED BY NUGZAR B. RUHADZE

N

obody could have envisaged in the wildest of human imaginations that the stronghold of socialism and the citadel of communism, the USSR, would so quickly and easily collapse and be wiped off the surface of the earth, but it happened indeed. And it happened so unexpectedly that the world could not even realize how the forcefully created geopolitical giant disappeared in just two shakes of a lamb’s tail. Meanwhile, the United States of America, the Soviet Union’s sworn enemy, reached unbelievable heights of bliss and prosperity, certainly having had a considerable say in the destruction of the evil Bolshevik empire.

Whatever took place in reality, I refuse to believe that the Americans gloated over the misfortunes of the soviet people. I now wonder if the former soviets, especially the Russians, are having a ball watching the way the US is so recklessly burring its famous democracy, the subject of their pride in the last quarter millennium. Amazingly, I am now hearing the occasional but persistent talk that the stronghold of unity and the citadel of democracy, the USA, might disintegrate into a number of new independent states, as has recently happened in the country of soviets.

Analogically, I will never believe that the former soviet people want to celebrate the

current socio-political strife of the great American nation. The soviets gagged their citizenry the entire period of their existence, but looking at today’s America, where the media multibillion monsters are stifling free speech, one might forfeit the sense of distinction between Soviet and American technicalities to keep their subjects mum.

The famous quote ‘freedom of the press is guaranteed only to those who own it’ was true in its whole capacity in the land of soviets because the government owned everything, including all existing means of mass communication and us the humans into the bargain. Unbelievably, the same is true in today’s America, because they are bizarrely emulating the soviet style of perpetuating the freedom of speech as a dissent from a democratic way of life and spontaneously open communication. We, the soviets, have always been terribly envious of Americans for almost everything that made up human life, be it the standard of living, freedom of speech, freedom to carry arms, cars, bars, movies, music, clothing, food and what not. Right now, the former soviets, and currently liberated citizens of their respective newly-created countries, have stopped envying Americans, thinking that the difference between the two nations is no longer that noticeable.

It is interesting that most journalists, on both sides, characterize Soviets and Americans as ‘arch rivals, fierce adversaries, worst antipodes, diametrically opposed political cultures, feuding economic powers, irreconcilable antagonists, dramatically clashing powers’ and so on

Image source: internationalaffairs.org.au

and so forth. They might be, but they are also similar in many different aspects.

To continue the list, I would throw in their attitude to the main law of the land.

The soviet people have never taken their constitution seriously. It was just a rubber-stamped piece of paper. We didn’t even know that there was such a written document. Conversely, the Americans treat their constitution with biblical honor and veneration, although when it came to a crucial instance like the impeachment of the POTUS, the strength

and the durability of one of the greatest documents in history faltered.

And finally, the means of mass communication! The entire soviet media, without any exclusion whatsoever, would adamantly mainstream dancing only to the tune of the communist party directives. Most of the American media has not gone far beyond this type of dedication to a partisan line. Both nations had a nasty habit of invading other lands, one desiring to export communism and the other to impose their style of democ-

racy on other peoples. Afghanistan alone would suffice as an example.

The analogues and coincidences are absolutely amazing, but with God’s grace, some differences between these two decision makers of the global level are still in place, like the fact that the Soviet Union surrendered to America in that notorious Cold War whereas the United States achieved everlasting victory. Now the dilemma is if those Soviet-American analogous features will end up as something good or bad for the watchful world.

POLITICS

GEORGIA TODAY FEBRUARY 5 - 11, 2021

5

The Post-Ivanishvili Political Landscape in Georgia ANALYSIS BY SOLOMON ALVARES

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believe that my mission is accomplished, so I’ve decided to step out of politics for good and fully give up the reins of power, - said Georgian billionaire, Bidzina Ivanishvili, in a letter that was released on January 11. Irakli Kobakhidze, who served as Executive Secretary of Georgian Dream, has since replaced Ivanishvili as Party Chairman.

It is not Ivanishvili’s first time quitting politics. Several years back, he did the same, only to return to play an active part in the country’s chaotic political landscape. No wonder that there are many sceptics who question the seriousness of his decision. Critics accuse Ivanishvili of a ploy to continue governing the country from behind the scenes, as was the case following his first departure.

Ivanishvili created the Georgian Dream party prior to the 2012 parliamentary elections in which Mikheil Saakashvili’s United National Movement (UNM) was defeated. Having presided over the party, Ivanishvili has dominated Georgia’s political landscape ever since. In 2014, he founded the public movement "2030", then the non-governmental organization "Citizen", however, in 2018, he formally returned to politics to become the chairman of the Georgian Dream party. Ivanishvili’s resignation could trigger some critical changes within the ruling party, but most of all, it could alter the balance of power between the political parties.

THE IMPACT OF HIS RESIGNATION First of all, infighting among party leaders is expected. The struggle will not be open and acrimonious, but each grouping will try to have its associates be appointed to crucial government positions, win tenders for the biggest projects, etc. Eventually, the weakening of its vertical in the Georgian Dream (GD)

will lead to internal crises and conflicts, which will be manifested first latently, and then openly. Among them, there will be tendencies to rearrange interests and powers according to corruption / personal interests, which can manifest itself even at the institutional level in the form of conflicts between different agencies/ ministries, etc.

Another factor leading to the weakening of the GD party is the lack of ideological ties, no consolidated political interests, and no real, living practice of political unity. Moreover, no long-term development of the country’s economy and political system is being proposed.

The emphasis is still being made on portraying the UNM as a destructive political force, and not on actual reforms, for instance, in the judiciary, education or economic spheres.

One of the theories behind Kobakhidze’s appointment was Ivanishvili’s idea of having as many poles of political power as possible, so that no person could garner enough momentum to challenge his legacy and the working of the party.

GD party leaders are often personally associated with Ivanishvili. His influence on them is lasting, which means that technically he would be able to influence overall developments within the party.

It is exactly because if this vertical of power that various sources familiar with the internal operation of the party claim that it is almost impossible to consider the party without Ivanishvili, whether he is in charge or has relinquished dejure political power.

Moreover, many analysts also claim that his resignation letter was similar to the one announcing his previous resignation. Therefore, reading much into the text would not make any sense.

Considering his political passivity in the last years and the difficult pre-election period, certain political fatigue and even frustration with the overall process of keeping the opposition at bay, fighting off Western criticism, and keeping the economy afloat could be behind his move.

Image source: dailysabah.com/AP Photo

There is also a question of Western political pressure. Constant criticism of Georgia being run by a shadow figure often undermined expectations among Georgia’s foreign partners of the country’s democratic future. Rumors still swirl around Tbilisi that Ivanishvili was likely to be targeted by US sanctions that would seriously constrain his actions and have a bearing on internal Georgia.

His decision to quit for good could therefore be a permanent decision.

The timing of his resignation is also indicative of foreign involvement in this process. The elections held in October 2020 and won by the GD are contested by the opposition spectrum. What is crucial in the negotiations held between the ruling party and opposition forces,

and moderated by ambassadors in Georgia, is the West’s tacit support for the GD. Many in Georgia believe this could have been an informal arrangement whereby the West approves of the GD’s victory, but in exchange Ivanishvili should leave, removing an important obstacle for Georgia-West relations.

Others offer a different explanation for his stepping down. Amid a dire COVID-19 situation and a struggling economy, Ivanishvili’s decision was, they say, probably motivated by saving himself to avoid public outcry for the upcoming troubles.

Non-political reasons too could be at play. After all, Ivanishvili has not always been a politician. A billionaire who according to the Bloomberg Billionaires

Index, is the richest man in Georgia, with an estimated wealth of about $5.7 billion, always claimed to be in politics only temporarily. A lover of animals and owner of a collection of rare paintings, Ivanishvili has always been famous for his distaste for public life, which he had to have once he came to power in 2012. The 65-year-old could then indeed be planning a permanent break.

Ivanishvili’s quitting, if serious, could create a certain power vacuum in Georgian politics that no leaders can fill. The decision could put various groupings within the party against each other, which would complicate the inner workings of the party. Overall, though, there are indications of his resignation from political activity being indefinite.

When It Rains, It Storms: The Dramatic Changes Being Made in the South Caucasus ANALYSIS BY MICHAEL GODWIN

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ovid-19, The 2020 Karabakh War, and ongoing political unrest have become the unofficial hallmarks of 2020 in the South Caucasus. Historically, the region is no stranger to being at the intersection of politics and conflict. However, over the past few years, these factors have accelerated to speeds that make a collision at those crossroads more likely. 2021, and the near future on a larger scale, will become either a slippery slope or a time for the people to shine.

Much of the news cycle in the waning months of 2020 focused on the renewed war in the embattled Nagorno-Karabakh region. What first seemed to be a lukewarm border skirmish, common to the area, quickly snowballed into open warfare on the ground and in the air. With its closing, something still questioned as border security elements still find themselves in occasional firefights, the socio-political fallout took over. Streets and squares in Yerevan erupted into protests, often turning to riots and resulting in multiple injuries and mass arrests.

Image source: squarespace-cdn.com

As a result, the already questionable democratic framework of the Armenian government is now buckling under the weight of popular discontent. Further, Russian involvement only stands to slowly pull the democratic rug out from underneath the population. What makes it more striking is the juxtaposition of putting a shattered democratic state under the unofficial control of a massive anti-democratic behemoth. Russia is well known for classic hits, such as jailing those who don't toe the Putin-party line

and the subsequent trials seem like a bad episode of Judge Judy.

Azerbaijan, on the other hand, has been basking in the light of its victory and so-called repatriation of its lands. Turkey has been patting their back the whole time. With an increase in military and economic cooperation between the two, the gas has been turned up in the region.

The Turkish-Russian economic involvement has pledged stabilization, however, placing more tactical importance on the zone will only force the major players

and their de facto protectorates to dig in deeper. New and reopened trade routes will help localities, but also push those local players to their larger regional masters.

Armenia, backed into a corner and experiencing an almost complete withdrawal of western influences, has hid behind the Russian skirt. As an addition to its expansion into the Middle Eastern and, to a more subtle extent, Greek arenas, Turkey will see this as another opportunity to make itself a larger player overall and potentially establish more influence with its European/NATO neighbors.

Georgia, largely wise to stay at home during the fray, has had its own domestic problems. Ongoing parliamentary issues and a rising civil disobedience movement against counter-COVID measures stands to destabilize itself from within. While still maintaining a healthy foreign policy cocktail of the United States, European Union, and NATO, with an emphasis on Turkey, Georgia needs to turn inward to maintain any semblance of normality. Additionally, the issue of Russian occupation and illegal borderization is creeping its way to center stage yet again.

This trifecta of Western-backed Geor-

gia, Russian-backed Armenia, and Turkish-backed Azerbaijan has made the South Caucasus potentially one of the more volatile regions outside of the usual suspect, the Middle East. However, due to the similarity in involved players and geography, the two of these will most likely be linked even more so than ever in modern history. China, focused on its Taiwanese, US, and domestic interests, has largely not played its hand for fear of further complicating its love/hate affair with Russia.

With each one of the three South Caucasus states becoming more monochromatic in their foreign policy relations, the distinct political polarity of the region rises. As this rises, the stakes do too, and the likelihood of a catalytic event setting the entire tinder box alight becomes a clearer and more terrifying reality. With Russia and Turkey likely remaining unmotivated in effective tension reduction measures, the US and EU will be left to mediate. However, as US domestic strife continues and EU politicking prevents any outside focus, it’s unlikely measurable progress can be made without a serious paradigm shift. This shift, and any plan to establish calm regionally, will most probably have to start in Tbilisi.

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BUSINESS

GEORGIA TODAY

FEBRUARY 5 - 11, 2021

Tourism & COVID-19 in 2020: An Overview

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he COVID-19 pandemic has disrupted tourism all over the world, with Georgia no exception in this regard.

With travel between countries massively restricted, the country received a paltry number of international visitors in 2020. In our May update, we provided an overview of the first lockdown (March-May 2020) and the corresponding first wave of support measures afforded to the tourism sector. In this update, we provide an overview of how the tourism sector in Georgia fared for the remainder of 2020.

After the first lockdown ended on May 22, businesses in the tourism industry in Georgia started to prepare for the summer season. On June 15, domestic tourism reopened, albeit with mandatory COVID-related safety requirements in place. Meanwhile, regular international flights were initially supposed to resume from July 1. However, this resumption was subsequently postponed several times, and such flights did not return on the intended scale for the rest of the year.

According to the latest announcement, regular international flights are now to resume from February 2021. These frequent changes in plans have added even more uncertainty to the troubled tour-

ism sector.

Thus, the summer tourist season comprised exclusively domestic tourists, which inevitably failed to compensate for the loss of international visitors.

From September, the epidemiological situation in the country began to worsen alarmingly. In order to keep the number of COVID-19 cases down, the GoG announced a second two-month-long lockdown on November 28, with slightly less stringent measures than were applied in the first lockdown. During this period, hotels in winter resorts were only allowed to function as COVID-19 quarantine centers, and the operation of ski lifts was suspended, resulting in a completely lost winter season for Georgian tourism.

On November 26, the GoG extended some of the support measures for the tourism industry into 2021 and modified some of the measures for the rest of 2020. Specifically, a concession of the originally deferred property tax was made for firms in tourism-related industries (GEL 45 mln), as well as a tax writeoff of the previously deferred four-month income tax payments from 2020 (GEL 20 mln). Moreover, interest subsidies for bank loans of hotels were extended for a further six months.

Graph 2: In the graph, average prices for standard double rooms in 3 and 4-star hotels and guesthouses are given by region. 5-star hotel prices are provided above.

HOTEL PRICE INDEX In December 2020, in Georgia, the hotel price index1 increased by 4.9% compared to November 2020. The 3-star, 4-star and 5-star hotel price index increased by 4.2%, while for guesthouses, the price index increased by 7.4%.

In December 2020, compared to December 2019, hotel prices in Georgia decreased by 12%. The prices of 3*, 4*, 5* hotels decreased by 13.6%, while the prices of guesthouses decreased by 15.9%.

Table 1: Percentage change of prices in November 2020 over October 2020 and over November 2019

AVERAGE HOTEL PRICES In Georgia, the average cost of a room2 in a 3-star hotel was 123 GEL per night in December 2020, while the average cost of a room in a 4-star hotel in Georgia was 197 GEL per night and the average cost of a room in a guesthouse3 was 70 GEL per night.

Table 2: Basic economic indicators

The average cost of a room in a 5-star hotel in Georgia in December 2020 was 352 GEL per night. In Guria, the average

price was 440 GEL, followed by Tbilisi - 410 GEL, Kakheti - 397 GEL and Samtskhe-Javakheti – 377 GEL.

IWG plc, Level 4, 2 Leonidze str. Tbilisi, Georgia | +995 32 290 039

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BUSINESS

GEORGIA TODAY

FEBRUARY 5 - 11, 2021

Tbilisi City Hall to Finance Tuition Fees for 1000 More Students

BY ANA DUMBADZE

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Embassy of India to Be Opened in Georgia

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t a meeting held yesterday, Prime Minister Giorgi Gakharia and the Ambassador of India to Georgia, Kashan Dan Dual, discussed the opening of the Indian Embassy in Georgia and the intensification of negotiations on a free trade agreement between the two countries.

It was noted that the decision of the Republic of India to open an embassy in Georgia is highly anticipated, as the relations between the two countries are flourishing.

Particular attention was paid to the further deepening of trade and economic relations between India and Georgia, which will significantly contribute to the completion of a free trade agreement.

The Ambassador of India reaffirmed the readiness of the Republic of India to intensify negotiations on a free trade agreement.

A relevant feasibility study has already been conducted. The first round of talks between the two countries, which were hampered by the pandemic, will take place in the near future.

Pegasus Airlines to Renew Regular Flights to Georgia

onsidering the current economic crisis and financial difficulties aggravated by the global pandemic, Tbilisi City Hall has decided to finance tuition fees for 1000 more socially vulnerable students in the scope of a support program for socially vulnerable and successful students, Mayor Kakha Kaladze announced at today's sitting of the municipality.

"We won't leave anyone struggling.

Educating the young generations is a priority for us. Since 2015, City Hall has been financing the tuition fees of socially vulnerable students whose rating score is 70,000 or less, and who study in authorized private or state universities. Now we decided to increase the number of beneficiaries: socially vulnerable students who are members of registered vulnerable families in Tbilisi and whose rating score is 150,000 or less will receive funding. As a result of this initiative, tuition fees of up to 1000 more students will be financed by City Hall," he said.

Further, City Hall plans to double the number of students studying for a Master's who receive semestral financial incentives.

As a result, 600 students will receive such financial incentives annually.

"Currently, 300 Master's students are being funded. After the change, more than 600 students will be funded. Students who receive 100% funding will receive financial incentives on their personal accounts. Also, another higher education institution will be added to the list of universities included in the program - the State Teaching University of Physical Education and Sports and its master's degree,” Kaladze noted.

The students of the Doctor’s Program academic degree registered in Tbilisi whose social points number 70,000 or

less will be financed within the framework of the sub-program of Tbilisi Municipality City Hall of supporting socially unprotected and successful students.

The maximum amount of funding is 2,250 GEL, 1125 GEL per semester. Funding for socially vulnerable students is issued twice per year, taking into consideration the academic performance of each student and their rating score in the database of socially vulnerable people.

Detailed information regarding the funding is available at Tbilisi.gov.ge

Confronting the Regulations: How COVID-19 Changed the Georgian Restaurant Industry

BY TIKO ZURABISHVILI

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BY TIKO ZURABISHVILI

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egasus Airlines will renew regular flights to Georgia from February 11, United Airports of Georgia reports. According to the organization, Istanbul

– Tbilisi – Istanbul flights will be carried out daily.

Pegasus Airlines is a Turkish budget air service company which used to perform regular flights to and from Georgia before COVID-19 restrictions came into force.

For the record, regular flights to and from Georgia resumed on February 1.

PM Meets with EIB Official, Discusses Importance of Support from Int'l Partners

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n February 2, Georgian Prime Minister Giorgi Gakharia held a meeting with Maciej Czura, the European Investment Bank's (EIB) Regional Representative for the South Caucasus.

During the meeting at the Administration of the Government, the PM emphasized the importance of international financial assistance in effectively handling the COVID-19-related economic crisis, and thanked the EIB for actively cooperating with Georgia's public and private sectors alike.

The Head of Government singled out the fact of Georgia's ambitious preparation for officially applying for full EU membership in 2024, with support from international development partners being key in this process.

The parties noted that the EIB is one of Georgia's largest partners and sponsors per capita. Since entering the coun-

try, the bank has invested 1.48 billion Euro in the governmental sector, and a total of 2 billion Euro in both state and private sectors, including in far-reaching road, energy, water, and other projects.

The conversation revolved around the revamping of Georgia's road infrastructure and network with EIB support, encompassing the construction of the new 14.1-kilometer highway connecting Zemo Osiauri and Chumateleti and its connectors.

The meeting also highlighted the EIB's cooperation with local banks to support innovative businesses through the InnovFin agreement and the EU4Business initiative. The parties commended the EIB's program seeking to secure access to financing for micro-entrepreneurs, women, youth, and rural residents, in order to promote the development of their financial engagement and long-term economic growth.

eorgia has long been known for its hospitality. Thanks to a pleasant combination of cordial atmospheres and the much-praised national cuisine, the restaurant industry in Georgia did bloom.

It was all before 2020, however. From personal to economic levels, COVID-19 changed almost every aspect of our lives, and it comes as no surprise that the pandemic took a toll on restaurant businesses.

A few could imagine the duration of the crisis. After the first lockdown in Spring 2020, the government of Georgia announced the second wave of regulations from November 28. All restaurants had to be closed for guests, only offering delivery and takeaway services. After over two months of mandatory closure, numerous restaurants announced a strike.

Later it was revealed that some restaurants were planning to open by February 6, despite governmental regulations.

THE OFFICIAL DATA: BEFORE & AFTER According to the National Statistics Office of Georgia, hotels and restaurants in the country reached their highest turnover rate in 2019, amounting to approximately 2.0891 billion GEL. In addition, they boasted with about 48.6 thousand employees. The number of employees started to drop from the first quarter of 2020 to 38.7 thousand people, reducing to 31 thousand by the third quarter. Furthermore, the combined turnover of 3 quarters in 2020 amounts to merely 994.1 million GEL.

PROTEST AND NEGOTIATION In April 2020, government of Georgia presented the anti-crisis economic plan, which covered measures to aid Georgian businesses. Apparently, those measures

proved insufficient as most businesses continued to suffer, many of them eventually closing down.

On December 23, the Chairman of Georgian Restaurateurs Association Shota Burjanadze declared that opening restaurants was an urgent matter, as 300 000 employees were under the risk of losing their jobs.

In response to restaurateurs’ concerns, on January 29, the Minister of Economy and Sustainable Development in Georgia, Natia Turnava acknowledged the hardships of the restaurant industries, but maintained that opening of the venues depended on the epidemic situation in the country.

Later, Burjanadze announced a 24-hour strike, asking for government’s permission to open the restaurants, or else rejecting to provide delivery and takeaway services. Up to 200 restaurants joined the strike, while the Minister once again recognized their problems, but asked for patience.

“We need a little more patience. I understand their problems; I do know that their protest is not a politicized act, but a result of internal problems… We will do our best to open the outdoor restaurant spaces, when the epidemic situation allows us to do so,” – said Turnava.

On February 2, the Board Director of the Gastronomic Association of Georgia,

Levan Qoqiashvili announced that restaurant owners would no longer follow government restrictions and would open restaurants by February 6.

“Unfortunately, the expectations of the hospitality industry didn’t come true.

Instead of finding a rational solution, even the meeting with government representatives has been postponed. As we don’t foresee another solution despite our insistent efforts, we decided to open restaurants on Saturday, February 6,” – asserted Qoqiashvili.

BREAKING THE ICE On February 4, Prime Minister Giorgi Gakharia declared that restaurants would be able to operate in open spaces from February 15. However, restrictions would be maintained on weekends.

In response to PM’s announcement, Shota Burjanadze assessed the government’s decision as acceptable, but not what they hoped for.

“Today’s decision is acceptable, and the ice is breaking. Considering the critical condition of the business today, it is partially relieving. In terms of the hospitality industry, it is not the solution we asked for, but for some providers, it is a step forward,” – explained Burjanadze.

Representatives of the hospitality industry met government members on the day this paper went to print. For the latest updates, go to georgiatoday.ge.

BUSINESS

GEORGIA TODAY FEBRUARY 5 - 11, 2021

9

ISET Business Confidence Index | New Year, New Start?

A

fter a significant deterioration in the previous quarter, BCI has increased by 32.1 points for Q1 2021 compared to Q4 2020 and reached 3.4.

Expectation in the Georgian private sector has improved by 64.1 index points, reaching 22.5. As for business performance over the past three months, it has increased, reaching -29.2 points, indicating an upturn in production, turnover, and sales. Compared to the previous quarter, the Sales Price Expectation Index has increased significantly, showing growth in the market share of business owners who expect higher sales prices.

The BCI increased in most economic sectors, with the highest increase in construction (70.6), followed by service (55.3), financial (23.0), agriculture (11.6), and manufacturing (1.6) sectors. Compared to Q4 2020, BCI decreased in retail trade (-14.3).

Business confidence for the first quarter of 2021 has increased both for SMEs (6.1), and large firms (35.0).

PAST PERFORMANCE The Businesses’ Past Performance Index, which shows the development of businesses' production, turnover, and sales in the past three months, increased compared to Q4 of 2020 and reached -29.2 for Q1 2021.

Significant improvement in performance was observed in the construction sector (88.4), followed by the service (32.5) and agriculture (16.4) sectors. A decrease in past performance was observed in retail trade (-51.6), manufacturing (-8.4) and financial (-7.0) sectors.

EXPECTATIONS The Expectations Index increased significantly by 64.1 index points for Q1 2021 and reached 22.5.

Prospects for the next three months have improved for every sector, except retail trade (19.5-point decrease).

The most significant increase is observed in the construction (111.5), followed by service (110.0), financial (47.6), manufacturing (39.9), and agriculture (5.5) sectors.

Business expectations have increased for both

large firms (70.3) and SMEs (18.7).

29% of the surveyed businesses do not expect any changes in employment over the next three months. 26% of firms stated that they would hire fewer employees in the future, however, 45% think that they would hire more.

37% of the firms surveyed expect the economic condition of their businesses to improve over the next three months.

31% do not predict any changes, leaving 32% of businesses that believe their business conditions will worsen.

SALES PRICE EXPECTATIONS The Sales Price Expectations Index increased significantly from 2.7 points (Q4 2020) to 29.7 points for Q1 2021. The index increased in every sector, except construction (47.7 points decrease). The overall Sales Price Expectations Index has increased for both SMEs and large companies.

Around 42% of all firms surveyed do

not intend to change their prices over the next three months. 38% of firms expect to increase their prices, and the remaining 21% will consider decreasing their prices in the future.

A lack of demand and limited access to financing continues to be one of the most significant obstacles for both large companies and SMEs. For Q1 2021, "other" factors became more important for both large companies and SMEs (the last fourquarter average was 27% and 25%, respectively) which, could reflect the Covid-19 second-wave restrictions that business sector is currently facing.

It should be noted that the present BCI results may be overestimated, as the survey only covers businesses currently operating and not those that have already exited the market. Firms, which exited the market are, to some extent, more likely to demonstrate a negative outlook.

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SOCIETY

GEORGIA TODAY

FEBRUARY 5 - 11, 2021

Watching Snow Melt: Etseri, Svaneti larger and increase in number too, and the end of is process is a field devoid of snow altogether. The transformation is complete.

It might take days, and suffer reverses as more snow falls, but its fate is certain (unless a new Ice Age arrives unannounced). Winter will surrender to spring, and all this snow, not so much of it so far this mild season, will either evaporate or melt and replenish the catastrophically low (in my 21 years’ experience) Enguri hydroelectric dam to which all local rivers tiny and great flow. This lake does go greatly down in level every winter, as electrical load to our thousands of heaters rises and the inflow is minimal. Then, from late summer through fall, this is all, or most, replaced with the smaller load and greater inflow from all that snow melting and rushing in.

But it starts here, at my featureless few meters of curving white wall, being built up by numerous snowfalls, then melting and slowly collapsing into a marvelously complicated surface before disappearing. This is what I have seen, as I look out the window these days.

BLOG BY TONY HANMER

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hat could be more entertaining? Watching paint dry, perhaps.

But there is more to this than the few seconds of attention span would suggest.

Especially when it is happening in January instead of in March.

I suppose that several of my attributes lead to being able to observe snow as it melts. These might include patience, introversion, a preoccupation with mathematically defined chaos as a force of nature, and some artistic bent. Extra time at home due to The Virus doesn’t hurt either, leading to a keener focus on what is happening through my house’s many windows on all four sides, or in the yard and immediate neighborhood.

Case in point, the scene in this photo.

The foreground is what interests me most, currently. That expanse of snow actually curves downwards towards the bottom of the frame, which is possibly not so obvious from this angle of view.

It ends up being nearly vertical on the far side of the fence, having started from an angle only a few degrees off horizontal, a gentle slope.

Nights are still a few degrees below freezing here at the moment; but this is a far cry from the -15 or -20 degrees we normally expect for at least part of winter’s coldest period in Etseri. Days, especially when sunny, take us quite far above freezing, leading to a softening of the

snow and ice which had re-frozen quite hard the night before. The road turns to rivulets of melt, which I do my best to divert to the nearby small river with pickaxe and shovel so that they don’t erode the driving surface into actual gullies half a meter deep.

This curving wall of snow, as it softens in the sun, can only slump as gravity calls out to it. The perfectly smooth

surface of it (at least on human eye scales) gives way to something altogether more complexly textured. The irregularities it can only possess are magnified as myriad tiny, slightly thinner parts sublimate straight from frozen to gaseous, disappearing into the air. The support they added to the whole vanishes, and all it can do in response is fall, also in uncountably

many pieces. Wrinkles grow.

Eventually the thinnest part is gone, and the dark grassed ground underneath it is exposed in bigger pieces. These soaks up much more sunlight than they reflect, getting considerably warmer than the much more reflective snow around them, accelerating the process. Holes appear, not to be replaced by the frost of the night. The next day they grow

Tony Hanmer has lived in Georgia since 1999, in Svaneti since 2007, and been a weekly writer and photographer for GT since early 2011. He runs the “Svaneti Renaissance” Facebook group, now with nearly 2000 members, at www.facebook.com/ groups/SvanetiRenaissance/ He and his wife also run their own guest house in Etseri: www.facebook.com/hanmer.house.svaneti

Painting the World, Remotely, with Lika Torikashvili the new normal. As a research project for my field work team at Bennington College, I decided to try and adjust our Paint the World events to the "new normal" and shift them online. I wanted to try to find a new, innovative way do art therapy with children battling life threatening diseases, but remotely, through video calls. My hope was to show the world that anything can be done remotely, even Paint the World. I reached out to our members from Paint the World Georgia and set to work. We decided to have calls with the beneficiaries of a center for people with disabilities and children from Firefly World Hospice.

INTERVIEW BY NINI DAKHUNDARIDZE

W

hile the global pandemic has been hard on all of us, there are some groups who h ave e s p e c i a l ly lacked “color” in their lives. Lika Torikashvili, 23, and her group of friends, who together founded Paint the World, an international NGO, are bringing exactly these “colors.” In an interview with GEORGIA TODAY, Lika tells us more about the organization and how it started, their new project enforced through Zoom video calls, and what she thinks we can all do to “Paint the World”.

“Paint the World is an international youth movement, which started in Tbilisi, Georgia, in 2012,” Lika says. “Together with a group of friends, we wanted to do something for children having cancer treatment in Iashvili Hospital. I remember we watched the Patch Adams movie, and it really motivated us to also make children smile and brighten their day.

The idea was born that maybe we don’t need billions of dollars to "paint someone’s life"- we wanted to try and make children smile and support them with what we had, our youth and our creative energy. The idea was simple- we would cheer up children in public hospitals by doing art with them, like organizing performances, bringing musical instruments to their wards and singing their favorite songs together, doing short plays, organ-

izing carnivals and showing up at the hospitals dressed as Disney characters, doing magic shows, dancing... All this was the emotional support that children undergoing various treatments really needed, especially in developing Georgia. What also made this movement unique was the fact that the whole organization was set up and run by teenagers.

“Paint the World did not stay in Georgia for long, soon finding its way into a whole new dimension. When I left Georgia to continue my studies at UWC Atlantic College, I met Aziza Aznizan, my now best friend and companion, and we decided to take the Paint the World idea to Malaysia. Soon after, we were organizing international projects all over the world, adjusting our programs to the culture and needs of the countries that we visited. Throughout 2017-2019, we organized projects in Georgia, the UK, France, The Netherlands, Belgium, Serbia, Hong Kong, Malaysia, Timor Leste, Oman, Qatar, Lebanon, Syria, Eswatini, Namibia, Kenya, Tanzania, Panama, Jamaica, and Bangladesh.

“Our goal is to have ongoing projects with and for youth all over the world!”

TELL US ABOUT THE CHANGED FORMAT OF PAINT THE WORLD'S WORK DURING THE 'REMOTE TIMES' OF THE PANDEMIC. COVID-19 affected everyone’s lives. Most of us learned to live in this new world, but the most vulnerable members of our society are still struggling to get used to

HOW HAS THE PROJECT PANNED OUT? HAVE YOU RECEIVED SUPPORT FROM THE "CELEBRITY" SIDE, AND WHAT HAS BEEN THE FEEDBACK ON THE RECEIVING END? The first couple of "trial calls" were a bit difficult because of a weak internet connection, but we managed to fix the issues and it turned out that Zoom calls are just as entertaining and fun as inperson events! We started off with calls with magicians: Sasha Crespi called from Italy, Georgian magicians Avto Tsitskishvili, Lasha Gelashvili, Giorgi Chiqobava also joined it. It is amazing to watch some magic tricks over a video call, not just for the children that we call, but also for me. I remember how Lasha made US dollars appear out of the ashes of fire during one call!! Then musicians joined our calls. Nini Gogichaishvili was on fire- with a leg injury, she still managed to dance for the kids and sing for them and with them. We all learned some cool dance moves over that video call. Famous young singer Sopo Batilashvili also participated in our calls, children enjoyed singing "Iagundi" along with her. We even tried to do handcraft over video call with Mika Kipiani and his "Black Boxes" gift boxes filled with interesting quests and games.

WHAT ARE YOUR FUTURE PLANS - ARE YOU PLANNING TO KEEP GOING WITH THE ONLINE CALLS? We definitely plan to continue our calls, and hopefully reach out to more artists and celebrities to participate in them.

Children are asking if actors from Comedy Show could call them, I am working hard to make that happen! I also realised that these Paint the World calls have the power to connect not only young Georgians during this pandemic, but also youth from around the world. I invited my international artist friends to call Georgian children: famous Malaysian singers Ahmad Ammar and Aziza Aznizan joined from Malaysia, Chase joined from Oman, magicians Sasha Crespi and Thomas Finegar joined from Italy and the USA. I think that the fact that we are all stuck in our homes makes us all the more eager to support each other and do good for others. It is so easy to make someone's day, even without leaving your house. This pandemic did not kill kindness and humanity. We all need to support each other, and it makes us feel good too.

As a Fellow of the World Jewish Congress, I am also working a lot on interfaith dialogue amongst young people.

Previously, together with founder of Paint the World Malaysia Aziza Aznizan, we would make sure that our projects are diverse and tried to bring young people from different cultural and religious backgrounds together to "paint the world." This year, the goal is to bring Jewish, Muslim and Christian young people from all over the world to participate in Paint the World Zoom calls.

I think this will demonstrate once more that we, the youth of the world, want peace, and are ready to fight for it.

Aziza and I are currently leading Paint the World projects internationally. Aziza is a Muslim and I am a Jew. When we

call the children for our online events, they don’t see us a "A Jew" or "A Muslim," they see us as humans who call them to have a good time. We all need to learn from those kids and be able to see friends in each other, humans in each other, and not view our differences as a reason for conflicts. We are all humans and we are all united in a special way. I think this is another important message that we are trying to send with our projects.

WHAT DO YOU THINK OTHERS CAN DO DURING THESE TOUGH TIMES TO PAINT THE WORLD, ESPECIALLY FOR THOSE WHO ARE EXPERIENCING IT IN DARKER COLORS? For me, Paint the World is more than a project. It’s a philosophy of life. I believe that we have the unique ability to paint our worlds, and other people's worlds.

It’s all about the positive energy that we generate, human connection and love.

All these are so easy to share, we just need to find the power within us to understand how to do it.

I’m glad that our Paint the World team managed to adjust our projects and ideas to the COVID era. I hope that this example will show young people all around the world that we should not sit at home waiting for this pandemic to end, but we should act now and do what we can with what we have.

Huge thanks to Bennington College for all its support! And huge thanks to Nini, Sopo, Mika, Avto, Lasha, Giorgi, Aziza, Chase, Ahmad, Thomas and Sasha for participating in our events!

CULTURE

GEORGIA TODAY FEBRUARY 5 - 11, 2021

11

Meet the Artist: Sofia Varazi a style that makes me feel comfortable, and now, I know exactly what I do.

That is, the search phase is probably over. I have always liked the artists of the Art Nouveau period and, in general, the aesthetics of the time, and I can say for sure that it influences me continuously. I adore the great artists of the Renaissance era, and I believe that this is true art, imbued with spirituality. Some directions and movements and manifestations of contemporary art even cause skepticism and are unacceptable to me, but this is my subjective opinion. I generally believe that if a person has the desire to create something, it should only be welcomed as it will help them in further development and self-growth.

HOW HAS THE CORONAVIRUS CHANGED YOUR CREATIVE VISION, THE ART MARKET IN GENERAL, AND YOUR SPECIFIC SALES?

BY NINI DAKHUNDARIDZE

F

or some time now, GEORGIA TODAY has collaborated with BI Auction to present to our readers original Georgian artists. Bengü Akçardak Küçük, the co-founder of the organization, sums up the partnership for us in her own words: “It’s a great pleasure to introduce more and more artists of Georgia through GEORGIA TODAY. Eight years ago, it was my dream to initiate the first Art Auction Company in Georgia to add value to the art scene with transparency.

Five years ago, with GEORGIA TODAY, we began to spotlight some of Georgia’s talent and to tell the wider public about

them. The dream came true with the great effort, dedication and support of some really good people. We started our series of interviews with legendary elderly artist Levan Tsutskiridze (95), and expanded the means with a special project for young artists, with ‘Corona Days’ interviews introducing very talented young artists. Now it is again time to learn more about the artists of Georgia,” says Bengü.

This month we meet painter Sofia Varazi. Having perfectly blended the influences of East and West in her works, Sofia has a unique art philosophy. She talks to us about how “the search phase is probably over,” her influences, her dislike of utopia-turned-dystopia digitalism, and more.

“I was born in 1969 and graduated from the I. Nikoladze Art School and Art

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Academy in Costume Painting. I’ve had six personal exhibitions in Tbilisi and have also worked as a film painter-artist.

I’ve also done book illustrations. Many of my works are kept in private collections worldwide.

HOW WOULD YOU DESCRIBE YOUR WORK? WHICH COMMON MOVEMENTS IN ART OR IMPORTANT ARTISTS THEMSELVES HAVE HAD AN IMPACT ON YOUR WORK? It is very difficult for me to describe my own works, and I believe that it is the prerogative of the viewer and art critics. All I can say is that I have no claim to seriousness, I lean more towards aesthetics and decorativism. I would add that over the years I have gone through this technique and developed

Journalists: Ana Dumbadze, Vazha Tavberidze, Nini Dakhundaridze, Tony Hanmer, Emil Avdaliani, Nugzar B. Ruhadze, Michael Godwin, Elene Dzebizashvili Photographer: Aleksei Serov

The coronavirus had absolutely no effect on me and my vision, and sales have only improved. I attribute this to the fact that people had more time to look for, perceive and enjoy art, and many had a desire to purchase a work of art that they had not had time for before. In addition, a new purchase in the form of a picture lightens the general heavy reality and has a good effect on the person’s mood – I have heard this many times from my buyers.

IN LIGHT OF THE GLOBAL PANDEMIC AND THE SHIFT OF THE WORLD FROM REALLIFE TO DIGITAL, WHAT IS THE FUTURE OF ART? If the world becomes completely digital, art as we know it will no longer exist. It will be buried. Since the digital world has no spirituality, and art is unimagi-

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nable without spirituality.

WHAT IS YOUR RELATIONSHIP WITH THE VIRTUAL ART SPACE, EXHIBITIONS AND SALES? I have a negative attitude towards exhibitions and other activities in the virtual space, because art should be perceived directly, and not from a monitor screen.

In general, the "online" lifestyle is unacceptable to me.

WHAT DO YOU THINK ABOUT BI AUCTION AND ITS ROLE IN ARTISTS’ CAREERS, BASED ON YOUR EXPERIENCE? I am grateful to BI Auction because we’ve had a very fruitful collaboration.

It is a very good initiative and I wish there were more such initiatives, because, in general, artists find it difficult to present themselves, and there is nothing new in this. Specialists have to deal with this and the BI auctioneers are trying to help.

About BI Auction ‘for ART’: BI Auction is the first Art Auction Company of Georgia, established in 2016. The company’s aim is to promote Georgian art and artists and enlarge the market. In four years, BI Auction ‘for ART’ has organized eight auctions and presented more than 450 paintings from 125 Georgian painters. In every auction, the collection is selected from among a thousand paintings from the well-known legendary artists of Georgia and also from promising young artists.

For more information, please contact biauction1@gmail.com

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