Issue #1255

Issue no: 1255

• JULY 17 - 23, 2020 • PUBLISHED WEEKLY

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ON AMBIENCE

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In this week’s issue...

Global Food Security in the Shadow of COVID19 – Does the Solution for Local Food Production Lie with Israel?

NEWS PAGE 3

Turkey & Georgia: Resilient Partnership & Solidarity in War, Coup Attempt & Pandemic POLITICS PAGE 4

Why Is Democracy So Good?

POLITICS PAGE 4

Remote Proximity, or Beeline Internal Communication BUSINESS PAGE 7

Capacity of Domestic Tourism in Georgia BUSINESS PAGE 8

Clashes on Azerbaijan-Armenian Border Resume Following Pro-War Protests in Baku

SOCIETY PAGE 10

BY AMY JONES

Carrefour’s Summer Raffle Begins! A Surprise for 2 People in Every Branch!

F

ighting between Azerbaijan and Armenia resumed early on Thursday after a one-day pause, officials from both countries announced.

The decade-long territorial dispute between the two countries erupted into fresh violence over the weekend, with both sides accusing the other of shelling civilian areas along the border between Tavush in Armenia and Tovus in Azerbaijan.

11 Azeri soldiers, one Azeri citizen and four Armenian soldiers have reportedly died in the clashes, which are the worst since 2016. One of the Azeri casualties include Major-General Polad Gashimov, the highest ranking military official to be killed since Azerbaijan’s independence from the Soviet Union.

Armenian defense ministry spokeswoman Sushan Stepanyan claimed on Thursday that the Armenian military had defended a pre-dawn raid by Azerbaijan on one of its border posts in the Tavush region.

Continued on page 2

Women across Eurasia Report ‘Traumatic’ Childbirth Experiences during COVID-19

SOCIETY PAGE 11 Prepared for Georgia Today Business by

Markets As of 13ͲJulͲ2020

STOCKS

w/w

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BONDS

Price

w/w

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GBP 10.30

Ͳ4,6%

Ͳ1,9%

GEOROG 04/21

GBP 4.43

Ͳ5,9%

Ͳ7,8%

GEORG 04/21

GHG (GHG LN)

GBP 0.94

Ͳ6,0%

+4,0%

GRAIL 07/22

TBC Bank Group (TBCG LN)

GBP 8.79

Ͳ2,8%

Ͳ2,4%

GEBGG 07/23

Price

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CURRENCIES

Price

w/w

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42,72

Ͳ0,9%

+10,3%

GEL / USD

3,0610

+0,3%

+0,8%

1 802,76

+1,0%

+4,2%

GEL / EUR

3,4721

+0,6%

+1,5%

COMMODITIES Crude Oil, Brent (US$/bbl) Gold Spot (US$/OZ)

99.75 (YTM 7.07%)

Ͳ0,9%

Ͳ0,8%

102.35 (YTM 3.63%)

+0,1%

Ͳ0,2%

102.20 (YTM 6.55%)

+0,1%

+0,3%

100.22 (YTM 5.92%)

+0,5%

+0,8%

GEL / GBP

3,8434

+0,8%

+0,9%

INDICES

Price

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GEL / CHF

3,2521

+0,4%

+1,7%

FTSE 100

6 176,19

Ͳ1,7%

+1,2%

GEL / RUB

0,0431

+1,4%

Ͳ0,9%

FTSE 250

17 385,09

Ͳ0,9%

+1,8%

GEL / TRY

0,4462

+0,3%

+0,1%

DAX

12 799,97

+0,5%

+7,1%

GEL / AZN

1,8007

+0,3%

+0,8%

DOW JONES

26 085,80

Ͳ0,8%

+1,9%

GEL / AMD

0,0063

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NASDAQ

10 390,84

Ͳ0,4%

+8,4%

GEL / UAH

0,1129

Ͳ0,4%

Ͳ0,6%

146,15

Ͳ1,6%

Ͳ2,4%

EUR / USD

0,8816

Ͳ0,3%

Ͳ0,8%

1 071,36

MSCI EM EE MSCI EM

Image source: report.az

Price

Bank of Georgia (BGEO LN) Georgia Capital (CGEO LN)

GBP / USD

Ͳ0,5%

Ͳ0,1%

+1,0%

+8,5%

SP 500

3 155,22

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+3,7%

CHF / USD

0,9416

Ͳ0,1%

Ͳ1,1%

MSCI FM

2 157,37

Ͳ0,9%

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RUB / USD

70,9849

Ͳ1,1%

+1,1%

GT Index (GEL)

1 582,68

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TRY / USD

6,8603

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+0,7%

GT Index (USD)

1 208,13

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AZN / USD

1,7000

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0,7966

2

NEWS

GEORGIA TODAY

JULY 17 - 23, 2020

PM: City Hall, Mayor are Doing Everything to Enrich the City with More Greenery

T Borjomi Park Assigned Status of Cultural Heritage Monument

BY ANA DUMBADZE

T

he Borjomi Mineral Water Park has been assigned the status of Cultural Heritage Monument.

Nikoloz Antidze, General Director of National Agency for Cultural Heritage Preservation of Georgia, issued

the corresponding order, which has already been enforced.

The status will refer to the mineral waters, sulphur springs, bridges, the mineral water bottling factory and hydropower plants located in the Park.

The Borjomi Mineral Water Park is a very popular attraction among tourists who visit Borjomi, it being the place where the famous mineral water was first produced.

Penalties Rise for Dumping Construction, Healthcare Waste

T

bilisi Mayor Kakha Kaladze this week announced that penalties for dumping construction and healthcare waste have increased.

“In case of hazardous medical waste, a natural person will be fined GEL 5,000 instead of GEL 500, while a legal entity will be fined GEL 10,000 instead of GEL 1,000. As for construction or other inert

waste, a natural person will be fined GEL 5,000 for dumping, instead of GEL 200, while a legal entity will be fined GEL 15,000 instead of GEL 1,500. We will do our best to change the existing reality,” Kaladze said.

The Mayor further noted that the amendments to the Waste Management Code have already been supported by the Georgian Parliament.

bilisi City Hall and the capital's mayor are doing everything they can to enrich the city with more greeneriy and recreation areas for our children to enjoy, - Georgian Prime Minister Giorgi Gakharia stated in his speech at the opening ceremony of Veterans Park of Culture and Recreation in Nadzaladevi district this week.

The Head of Government thanked the Tbilisi City Hall and Mayor Kakha Kaladze, and emphasized that this process must continue.

"Indeed, what we see here today gladdens the heart. Although, over the past decades, many visually unattractive sites unsuitable for the environment have sprung up in Tbilisi, the Tbilisi City Hall and Mayor are doing everything they can to enrich the city with more greenery, with more recreation areas for our children to enjoy, and all that must continue. It cannot be an exception but one of many.

"Most importantly, we must remember that, a few weeks ago, we opened Mziuri

Park after its rehabilitation by the Ministry of Infrastructure. And I wish Tbilisi's residents more green areas like this, more garden squares full of life, to make our children's everyday lives more comfortable.

"I am thankful to Tbilisi City Hall and the Mayor. You should be proud of your

Mayor, and I wish you success and victories achieved together. We are, to some extent, in violation of our own regulations, because we are a little more than 200, but I am sure Tbilisi's residents will forgive us, because today marks the new life of this garden square," the Prime Minister emphasized.

From Golden Crops to Green Schools

G

reen urban development, environmental education and sustainable agriculture are in the focus of the local projects supported by the United Nations Development program (UNDP) and the Global Environment Facility (GEF) in different regions of Georgia. Aiming to address the critical environmental issues which have a direct impact on people’s lives, civil society and community organizations across the country are working with people directly to protect unique landscapes, promote sustainable farming, restore and preserve biodiversity and engage children in environmental education. These local projects are part of the GEF Small Grants program implemented by UNDP in cooperation with the Ministry of Environmental Protection and Agriculture of Georgia.

UNDP Head Louisa Vinton and Deputy Minister of Environmental Protection and Agriculture Nino Tandilashvili visited the village of Asureti today to take part in the harvest of Georgian endemic wheat varieties – Dika and Shavpkha – that are being preserved and cultivated by the Association of Georgian Wheat Growers.

With UNDP and GEF support, the Association regenerated endemic and landrace seeds in nursery plots to grow these unique grains on up to 50 hectares of land. In addition, training and consultation were provided to wheat growers

aiming to engage more farmers in reviving and preserving Georgia’s agricultural heritage.

Georgia’s landrace and endemic wheat, praised for its agricultural resilience, nutritive value and flavour profiles, is attracting growing attention from wheat producers and bread-bakers. Regeneration of these unique grains is listed as a priority in Georgia’s Biodiversity Strategy and Action Plan and Agriculture Development Strategy. Some of the endangered wheat varieties were submitted for nomination to the UNESCO Lists of Intangible Cultural Heritage.

“Georgia’s agricultural tradition goes back thousands of years,” said Deputy Minister Tandilashvili. “As we are developing 21st-century agriculture, founded on the principles of sustainable farming and modern technologies, we can breathe new life into endemic wheat varieties to benefit Georgian farmers and preserve our rich biodiversity.”

“The pandemic and the visible destruction caused by climate change offer proof that we have pushed the limits of nature too far,” said UNDP Head Louisa Vinton.

“Programs like this show us hands-on ways that we can try to restore balance, building green models of sustainability in partnership with local communities and organizations.”

Earlier in July, Vinton visited school gardens organised in three secondary schools in Tbilisi with UNDP and GEF support. Aiming to promote environmental education and increase urban green spaces, the “Child and the Environment” association teamed up with school authorities and the administration of the Saburtalo district of Tbilisi. The project provides some 150 school children – 50 of whom are children without parental care – with an opportunity to relax in a green oasis during the school day, learn how to take care of plants and grow their own fruits and vegetables.

Since its launch in Georgia in 2012, the GEF Small Grants program has funded 71 environmental initiatives with a total value exceeding USD 1.6 million. Along with the environmental benefits, these local projects contribute to the reduction of rural poverty, improvement of livelihoods, gender equality and education.

Clashes on Azerbaijan-Armenian Border Resume Following Pro-War Protests in Baku Continued from page 1 “After a fierce gunbattle, the enemy was repelled, suffering casualties,” she said, claiming Azerbajani forces then shelled two Armenian villages on the border.

She reported that no Armenian soldiers had been killed in the latest violence as of 9 am local time. “Gunfire is continuing at the moment,” she wrote on Facebook.

The Azerbaijani Ministry of Defense released a statement claiming the clashes resumed after “Armenians shelled Azerbaijani villages with large-caliber weapons”. As of Thursday afternoon, they

have released no further information.

The recent spate of violence has concerned the international community.

NATO called on the two countries to take all necessary steps to prevent further escalation, according to NATO’s special representative for the Caucasus and Central Asia, James Appathurai.

Meanwhile, President of Turkey Tayyip Edogan affirmed that Turkey would support Azerbaijan against any attack. “It is our binding duty to mobilize all our political, diplomatic, and social relations in our region and our world in this direction,” he said at a news conference.

The decade-long dispute focuses around

the contested area of Nagorno-Karabakh.

Ethnic Armenian separatists seized the area in the 1990s in a war that killed thousands. A ceasefire was reached in 1994, although violence has re-erupted numerous times since. The region is internationally recognized as part of Azerbaijan but is controlled by ethnic Armenians.

Despite multiple international diplomatic efforts, the two countries remain in the unresolved conflict.

PRO-WAR PROTESTS IN BAKU On Tuesday night, thousands of protestors rallied in the center of Baku, calling

on the government to mobilize troops and retake Nagorno-Karabakh. News outlets estimated that 30 to 50 thousand protestors gathered in front of the parliament building.

Demonstrators chanted pro-war slogans such as ‘end the quarantine, start the war,’ ‘death to the Armenians,’ and ‘order us to go to war’, reported one eye witness on twitter.

Protestors also called for the resignation of Najmaddin Sadigov, the Chief of General Staff of the Azerbaijani Armed Forces and Deputy Minister of Defence.

Government officials attempted to calm protestors before riot police arrived in the

early hours of July 15. Turan, an independent Azeri news outlet, reported that the police used tear gas and water cannons.

The Interior Ministry of Azerbaijan condemned the protests and announced that seven arrests had been made for “mass riots” and “resistance or use of force against a government official.”

Due to the coronavirus pandemic, mass gatherings are currently banned in Azerbaijan.

A small group of Azerbaijanis gathered in Tbilisi in front of the Armenian Embassy on Thursday morning wearing t-shirts with the slogans ‘stop Armenian terror’.

NEWS

GEORGIA TODAY JULY 17 - 23, 2020

3

Global Food Security in the Shadow of COVID19 – Does the Solution for Local Food Production Lie with Israel?

BY AMBASSADOR OF ISRAEL, RAN GIDOR

T

he COVID-19 pandemic and the ensuing global economic crisis revealed a very troubling fact: the world is unprepared for food security. The complex global systems that were created in the era of accelerated globalization are threatening to collapse: Leading food producers have placed limitations on the export of agricultural goods from their territory, disturbances and interruptions have been encountered along the entire global supply chains from production in the field, to the international marketing of food, the decline in demand and buying-power due to the global economic recession, shortage of farm-hands and the contraction of disease amongst workers in the food-packing factories.

But what is important to emphasize is that we still have not truly distanced ourselves from the danger of hunger and the interruption in the global food supply mechanisms. At the same time, the phenomena of rising food prices, the lack of foreign currency for purchasing food on the global market, market disturbances etc., continue vigorously. Tens of millions of people in the Middle East, Africa, Asia and other areas of the world have joined the 820 million people that, prior to the pandemic, were already defined as under-nourished and in danger of hunger or starvation. The World Bank estimates that approximately 40 million people have entered the category of “immediate risk” in western Africa alone. UN reports, and first among them, that of the International Food and Agriculture Organization (FAO), warn of a rising threat of hunger, and the UN called upon the international community to maintain open commerce and to refrain from national protectionist policies.

The situation in Georgia is also of considerable concern. According to the UNEP (United Nations Environment Program), land resources are limited in Georgia: only 15% of the country is cultivated, while 70% is forests, bush, meadows and pastures. Agricultural cultivation methods are still largely traditional or unsustainable, which, when combined with climatic and terrestrial conditions, results in the unfortunate fact that more than a third of agricultural land is affected by degradation, erosion, pollution and

Isreli water technology innovators share best practices with high-level Indian stakeholders. Source: 2030wrg.org

soil damage. Moreover, around 4% of farmland is vulnerable to desertification.

Naturally, that affects food security: Georgia is 70% self-sufficient in vegetables, but only 8% self-sufficient in wheat, according to official statistics.

Just this week, the UN published its annual report on ‘The State of Food Security and Nutrition in the World 2020.’ According to it, projections show that the world is not on track to achieve Zero Hunger by 2030 and, despite some progress, most indicators are also not on track to meet global nutrition targets.

The food security and nutritional status of the most vulnerable population groups is likely to deteriorate further due to the health and socio-economic impacts of the COVID-19 pandemic.

This situation raises the question of what we can do to prevent a global food crisis which may result in hunger, political and security instability and rampant migration. Without doubt, international trade systems for food and agricultural necessities such as fertilizers, machinery, fuel, etc. must be kept open and functioning. At the same time, states would do well if they increased their local food production capacity. This food, in addi-

tion to supplying caloric needs, must be healthy, nutritious and available to everyone and at an affordable price. For this, local farming requires significant incentives and support in order to increase its production and variety.

The State of Israel, having proved itself over a period of decades an expert in successful innovative farming in some of the most challenging desert and drought prone areas of the world, can be a supplier of quick, efficient and low-cost solutions for these needs. Drip-irrigation is one of the best examples of this. It is amazing that, to date, most of the agricultural crops the world over are still grown by “dry farming”, i.e. farming that is reliant on rain for field irrigation. Moving to irrigated farming would increase the crop yield, would save water and greenhouse gases, and would, over time, create food security.

Vegetables, for instance, could be grown a number of times during the year via drip-irrigation as opposed to only once a year when relying on natural precipitation during the rainy season.

“Precise agriculture,” which supplies all plant needs on an almost individual basis, is another example. Today, sensors are capable of informing precisely how

much water and fertilizer is required for each tree and from what diseases it is suffering, and accordingly, an individualized treatment which is often administered via drones or other methods. The use of satellites for information gathering and remote sensing, computerized greenhouses and continuous monitoring of temperature, humidity, pests/insects, etc. from afar also increase agricultural crop yields and creates more food.

Everyone knows that without water, nothing can be grown, and in arid Israel, unlimited solutions have been found and implemented, such as the use of purified sewage water for farming, or even the use of saline water, leak prevention and/ or the identification of their source in water supply systems, and hydroponics (a form of farming that allows for growing vegetables in water). Water conservation, irrigation monitoring and many other solutions developed in Israel can be implemented relatively easily and at low cost throughout the world.

Among other things, the COVID-19 crisis has also exposed the exaggerated reliance on animal-based food. The closure of slaughter houses and meat packaging facilities, due to the contraction

of the disease by their employees, gave a very strong push to the market of plant based substitutes for protein. This industry is seeing an accelerated growth and many technologies such as cultivated meats will begin to see mass use in the coming years. This process will also be accelerated since we know that cultivation of livestock creates heavy damage to the planet and is unsustainable and must therefore be reduced. As a result, the importance of protein sources whose origin is found in plants or cultivated meats, will grow considerably. In Israel, there is extensive research in this area and Israeli startups are on the frontline of the global development of such foods.

The need to strengthen local agricultural produce grows even stronger against the backdrop of the ever-worsening phenomena of climate change, widespread global desertification and water crises, and the extinction of animal and plants species, and with it, huge damage to biodiversity. These and other issues are threatening our ability to supply food over the long term. As a result, there is great importance in preparing ourselves to be able to guarantee food security and for agricultural production by means that do not adversely affect the environment and the climate.

In conclusion, the COVID-19 crisis is still very far from being resolved and we will continue to experience its ramifications in almost every realm of our daily lives. Therefore, it is more important today than ever before to understand the fragility of the global food supply chains, the vulnerability of food security to different sources of disturbance, and to increase local food production wide-scale.

Israel would be both happy and honored to share its rich experience and knowledge in these areas with our Georgian partners. MASHAV (Israel’s International Development Cooperation Agency) has been operating in Georgia for almost 30 years and has so far trained more than 1,500 Georgian women and men in various professional spheres relating to agriculture, irrigation, entrepreneurship, women’s empowerment, public health and numerous other disciplines. The COVID-19 pandemic presents us not only with challenges, but also with fresh opportunities for increasing food security in Georgia and the entire Caucasus. Israel and MASHAV are ready to continue partnership with Georgia (both the public and private sectors) and invest in a better, healthier and safer future for all.

Shekvetili Dendrological Park Opens for Visitors

BY ANA DUMBADZE

T

he Shekvetili Dendrological Park has been opened for visitors.

Those who wish can visit the park absolutely free of

charge.

The dendrological park is completely

Photo courtesy Badri Vadachkoria

unique in the region for its scale, unique and diverse collection of plants and original design.

The 60-hectare garden combines thousands of species of local and world exotic flora. Along with a unique collection of plants, the park is home to 58 species of birds from all over the world.

The construction of the dendrological park started in 2017 on the initiative of Bidzina Ivanishvili, the leader of the rul-

ing party Georgian Dream.

The new dendrological park funded

by Ivanishvili is located on the Tsvermaghala road between Shekvetili, Ureki and Ozurgeti in Ozurgeti municipality,

Georgia's western Guria region.

"After the famous Batumi and Tbilisi Botanical Gardens, Shekvetili Dendrological Park will be another trademark of Georgia,” the Press Office of Georgian

Dream said in a statement.

The images, taken by well-known Georgian photographer Badri Vadachkoria, depict the distinguished beauty of the park and its residents.

4

POLITICS

GEORGIA TODAY

JULY 17 - 23, 2020

Turkey & Georgia: Resilient Partnership & Solidarity in War, Coup Attempt & Pandemic OP-ED BY AMBASSADOR OF THE REPUBLIC TURKEY TO GEORGIA, FATMA CEREN YAZGAN

T

he COVID-19 pandemic and extraordinary circumstances it brought about globally have been a test of resilience in many terms for governments and nations.

Solidarity, good neighborly relations and partnership have become more than just words of diplomatic speech writing.

Indeed, this pandemic and the socioeconomic consequences have also put the international and transborder cooperation to the test. Turkey and Georgia have been loyal to their mutual responsibilities not only bilaterally, but also as regional actors, as good neighbors and strategic partners.

In fact, while unprecedented, the COVID-19 pandemic is not the first time that Georgia and Turkey have been reminded of the importance of one another, for each other. Nor is it the first time that the resilience of our nations have been put to the test.

On August 14, 2008, now President then Prime Minister of Turkey, Recep Tayyip Erdogan visited Tbilisi right after the war, and in very clear terms declared in a joint press meeting the solid support of Turkey to “Georgia’s independence, sovereignty, and the protection of Georgia’s territorial integrity, which is recognized by the UN Security Council and international law.”

Seven years later, on 19 July 2016, a Georgian delegation headed by then Prime Minister Giorgi Kvirikashvili became the first high level guests to arrive in Ankara just four days after the FETÖ cult terrorized Turkish people with a coup attempt, killing 251 civilians, police and military who came out in defense of democracy.

It does not take an expert in international relations to understand that these high level visits that took place in the aftermath of the most traumatic days of our nations were beyond symbolic gestures of diplomacy: these visits were

initiated by genuine concern for the stability, security and well-being of one another. They were tangible acts of solidarity between two good neighbors.

Four years on, the government and people of Turkey still remember that emotional moment when the Georgian delegation laid flowers on the place where Turkish citizens had been murdered by helicopter fire under the command of pilots who turned out to be FETÖ militants. We remember how hard it was to tell our Georgian friends that our Parliament was bombed while in session under the instruction of FETÖ civilian cadres, who were later apprehended in the military air base, which was the headquarters of the coup plot.

When the Georgian delegation visited Ankara and Istanbul four days after the coup attempt, the bodies of 55 police officers who were bombed by FETÖ at the Police Special Operations Center, had yet to be put to rest.

The evidence which revealed the role of the FETÖ structures in this unprecedented betrayal, and the extent of their global network behind this plot, was established in the months that followed that horrible night. We now know from surveillance cameras, international cooperation, witness testimonies and confessions, that the crimes committed on July 15 were just the tip of an iceberg.

That iceberg was a network of schools, businesspersons, media power and charities which evolved from a benign education movement to a secretive operational structure aiming to transform Turkish society by taking control of the Turkish State from within. As its strength grew, the organization began to claim a global messianic mission, depicting its founder and leader Fetullah Gülen as the “Imam of the Universe”. It became a network which began meddling in business transactions; government tender processes, and mass exam

cheating to capture civil and military bureaucracy; laundering an enormous sum of money and arranging the illegal transfer of cash.

In the course of the past four years, Turkey has shared its findings about this very complex and secretive network with its allies, friends and partners, including Georgia. This was done not only because Turkey is determined to ensure that this criminal network is stripped of all capabilities to hurt Turkey again. What Turkish police, prosecutors and courts found out about this structure was shared with friendly governments also because FETÖ, where present in any form or structure, works pretty much like the COVID-19 virus, not revealing symptoms at the early stages, but becoming fatal as it attacks the immunity system by corrupting the social, economic and administrative tissues of any state and nation. In this spirit, the four political parties, including two main opposition parties represented in the Turkish Parliament, made a joint statement on August 9, 2019 to the USA, and all friends and partners, to cooperate with Turkey with a view to extraditing Fetullah Gülen and other FETÖ members.

While the painful memory of July 15 2016 still lingers, Turkey has overcome the trauma and proved its resilience as a sovereign, secular, democratic and capable state.

On August 24, 2016, Turkey launched the Operation Euphrates Shield against the DAESH and PKK/YPG terrorist organizations in Syria. On January 2018, Turkey ventured another counter-terrorism operation in Afrin against the PKK/YPG threat to its security. These operations revealed that despite the FETÖ infiltration and betrayal, the Turkish military has recovered its operation capabilities in defending the country from threats outside of its borders.

The recovery from the coup attempt and trauma was not only achieved in the military-security field. Turkey fulfilled all its commitments in strategic projects such as TANAP, the Baku-Tbilisi-Kars railway, and the Marmaray (railway under the Bosphorus). Turkish exports swelled by 10% in 2017, and in 2019 crossed the

$180 billion threshold. Major infrastructure projects, including the new Istanbul Airport, have been completed, and Turkey continues to host more than 3.5 million Syrians and Iraqi citizens who fled the civil war.

Turkey remembers the solidarity of her good neighbor Georgia during and after the July 15 coup attempt. As such, in the past four years, for Turkish governments, bilateral cooperation with Georgia has remained as a priority item on the agenda, despite many challenges to national security and regional peace and stability, Turkey has remained a staunch supporter of Georgia’s membership to NATO and continues to support projects and investments that enhance Georgia’s resilience. Turkey also continues to support the territorial integrity and sovereignty of Georgia, as well as the security and stability of the Black Sea region. The Military Financial Cooperation Agreement signed in December 2019, with which Turkey committed to grant $15 million for the capacity building of the Ministry of Defense of Georgia, has been the most recent result of that support.

In economy and trade relations, Turkey was Georgia’s first trade partner in 2007 and remains one of the leading foreign investors. The $1.6 million worth of renovation and rehabilitation works of the Batumi Infectious Diseases Hospital which was completed in 2019 by TIKA (Turkish Cooperation and Coordination Agency) is a concrete example of that development cooperation.

The COVID-19 pandemic, with its global socio-economic consequences, surely requires that the cooperation between Turkey and Georgia be further enhanced and for us to remember that as we have stood together in solidarity through wars, attacks on our democracies and national security, we shall stand together resilient.

Thus, the words of great Georgian Statesman Ilia Chavchavadze will continue to guide us: “When a nation remembers this liturgy of its common soul, those great natured men and stories of great deeds, it is revamped, encouraged and inspired, and is self-assured every way in joy and in sorrow.”

Why Is Democracy So Good?

OP-ED BY NUGZAR B. RUHADZE

N

o, it’s not that good, but there’s nothing better out there. Nothing more rational and humane has been invented so far in terms of the socio-political arrangement of our life. Who would’ve thought in even the wildest imagination that America, a genuine embodiment of governance ‘of the People, by the People, for the People,’ might succumb to something flagrantly antidemocratic, obliterating the notion that democracy means construction based on people’s will and not destruction by the crowd’s violent dictate!

As Winston Churchill famously remarked, ‘no one pretends that democracy is perfect’, and America has proven to the world that the great Englishman was right, especially when he publicly agreed that democracy is the worst form of government. In any case, today’s America is a live corroboration of the fact that democracy, as a rule of the people, is full of contradictions and irregularities, to say nothing of the accompanying ironies and absurdities that we see in the behavior of both the American governed and the government. And not only the American!

Unfortunately, there is no way to prove that other forms of government are more

acceptable because the five-millennium history of Mankind has used many ways of ruling and containing people but has never been successful in making their lives visibly better. As a consequence of thousands of years of peoples’ fight for a better life and national freedom, democracy has come into our lives as a panacea from all historical troubles and strife, but it has not cured all those human pains and healed all our wounds.

The critics of democracy have even recognized certain basics of totalitarianism in this long-cherished and still highly respected instrument of ruling the public, although this kind of evaluation might be a definite exaggeration. Plato himself, the shrewdest Greek among the wisest men of all time and nations, is universally known for his negative attitude towards what we the modern-day people have embraced as the most elevated way to govern people with the hands of the people to the benefit of the people. The giants like Aristotle, Rousseau and Nietzsche are next to him in this prolonged political controversy.

There are considerable misgivings on the level of modern sophistication too.

I have myself been in doubt for quite a while on the issue, but my knowledge and experience have never been sufficient and deep enough to analytically weigh up all merits and flaws of democracy so that I could make myself conspicuous with some valuable recommendations. What I know for sure is that

Image source: blogs.iadb.org

in this tiny country, which is hardly noticeable on the world map, democracy is working as well as it does anywhere else in the world, even if our public looks and sounds less than adequately informed about it.

We all know very well that even the most democratically minded government of any nation is not capable of providing the best for the majority of its citizens.

Moreover, among political philosophers, there are doubts that this is not even the main target of the governments who have acquired and enjoyed the image of a democracy. This thought probably has

deeper philosophical roots which might need more profound deliberation, although it is viable enough to be kept in mind. The critics of democracy have tried hard to denounce it, but history has proved to be tolerant enough to it to keep it up as the dominant banner in the process of electing governments.

The same has happened in Georgia in the last thirty years, and this will continue into eternity, as it seems. So, if we are compelled to clad this nation in democratic attire, let us at least look good in this still-improving apparel.

What I mean is, to be as fair and edu-

cated as we possibly can when faced with the ballot box, and to cast our vote with a wise deliberation on the nation’s fate, notwithstanding the doubts that democracy triggers in our hearts and minds. Perhaps our frustration of democracy is based not on the character of this type of government but the way some elected individuals of our choice want to establish the kind of a rule which kills the reputation of democracy. The interrelation of an individual ruler and our right to choose a leader is a very curious ramification of our contemplation about democracy.

BUSINESS

GEORGIA TODAY JULY 17 - 23, 2020

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THE ISET ECONOMIST A BLOG ABOUT ECONOMICS AND THE SOUTH CAUCAUS

www.iset-pi.ge/blog

The ISET Policy Institute (ISET-PI, www.iset-pi.ge) is an independent think-tank associated with the International School of Economics at TSU (ISET). Our blog carries economic analysis of current events and policies in Georgia and the South Caucasus region ranging from agriculture, to economic growth, energy, labor markets and the nexus of economics, culture and religion. Thought-provoking and fun to read, our blog posts are written by international faculty teaching at ISET and recent graduates representing the new generation of Georgian, Azerbaijani and Armenian economists.

Could the Government Act as Coordinator?

BY TAMTA MARIDASHVILI OF ISET-PI

I

n Avchala, in the middle of nowhere, you might be surprised to find the busy “Craftsmen’s City” or “Khelosnebis Kalaki” as it is called in Georgian. It is built on a 4-ha plot where there used to be a large carpet manufacturing plant in Soviet times, which vanished with the Soviet Union and turned into a concrete carcass surrounded by a swamp.

Luckily, ten years ago, a man called Irakli bought this territory with the intention of renting it out1 — though it was not an easy task! At a minimum, Irakli had to provide basic conditions for people to move in: improve the access road, bring electricity and gas into the building, fix the roof, etc. After this basic investment, Irakli could attract some clients to his space; however, the rental price was still very low because of the location.

Irakli had to think of something else to increase the value of his space. One option was to somehow increase his future clients’ profitability, which in turn would make them willing to pay a higher price.

Inspired by Michael E. Porter’s seminal work, Irakli came up with a brilliant idea.

Businesses can benefit from being located close to other businesses working in the same or related industries and form a “cluster”. And because they benefit, they will be willing to pay a higher price for space if there is “synergy” between their business and those of their neighbors: similar manufacturers, providers of inputs, and services.

Now it was time to choose which industry. Irakli understood that his space: far from the city center and not properly renovated, was not a good fit for retail or IT. Based on what he could offer, furniture seemed like a better option. Also, the prospect of local demand for furniture was bright, due to increasing levels of urbanization, the rise of nuclear families and the influx of tourists. Moreover, furniture is imperfectly tradable good2 as its transportation costs relative to its value are high, implying that producing and selling locally would be cost-competitive.

It was decided. Irakli would build a furniture cluster! But then came the key question: how to start from zero? Production and investment decisions in the upstream and downstream parts of an industry are often interdependent. When these decisions are made in a decentralized fashion, a new industry may fail to

Source: City of Crafters

take hold. Furniture producers would not come if there were no input suppliers and service providers, and vice versa, suppliers and service providers would not come if there was no one (or not a sufficient number of manufacturers) to buy their product/service. Irakli had to attract one trailblazer by offering favorable conditions, and guaranteeing that others would follow. In general, there are multiple furniture producers for each supplier in the chain. Thus, attracting suppliers and service providers in the first place by offering them a discount would save Irakli money. So, he let major input suppliers and service providers not just rent but buy space for a very low price and guaranteed he would bring in furniture manufacturers.

Irakli’s strategy worked very well. Due to increasing demand, rental prices started to rise. The cluster started to function without the need for further intervention on Irakli’s part.

Currently, there are more than 180 companies located in Irakli’s “Khelosnebis Kalaki”, spanning the entire furniture value chain: from suppliers of inputs to providers of services (e.g. design or equipment rental), to furniture manufacturers.

Employing a total of close to 2,000 people, these companies differ in size and specialty. It is easy to find almost any necessary expertise within the cluster: wood and steel bending, wood carving, lamination, precision cutting of all relevant

materials – natural wood, laminated MDF or plywood panels, glass, marble, and stone.

To sum up, the success was a result of Irakli’s purposeful actions based on two principles: first, there are synergistic benefits of co-location for companies operating in the same industry; second, to start a thing from zero, there is a need for coordination.3 In other words, geographic concentration offers the possibility of higher productivity, a possibility that can be realized through some kind of coordination. In the case of “Khelosnebis Kalaki”, that coordination was conducted in a centralized manner by Irakli himself.

THE GOVERNMENT ACTING LIKE IRAKLI? Now imagine that the 4-ha plot in Avchala is Georgia, a country that has not been very attractive to invest in so far. Just as furniture producers would not have been brought to Avchala by an “invisible hand”, it is also doubtful that one day, by some mysterious means, a large number of investors will come to Georgia at once and set up a new industry that creates higher value than the present activities in the country and is exportable, thus promising that the country will grow faster.

One might say that it is macroeconomic instability (e.g. exchange rate fluctuations) and weak institutions (in the case of Georgia, geopolitical risks also add up)

that hinder poor countries from moving to skill-intensive, high-tech goods. However, as in the case of “Khelosnebis Kalaki”, if the benefits of clustering outweighed the poor location, it may well also help countries such as Georgia to offset those political/economic disadvantages.

Though, for clustering to happen, there is a need for coordination and this is especially true when it comes to hightech production for the following factors:4 (1) high-tech production requires a wide range of differentiated intermediate inputs (goods, services, or technologies); more inputs=more players; (2) some of the intermediate inputs associated with high-tech production are imperfectly tradable; thus, importing is associated with high costs; (3) these inputs are produced under increasing returns of scale/decreasing marginal costs; thus, to be competitive, there is a need to scale the business.

To be able to produce imperfectly tradable inputs locally, there should be enough

demand on the local market to reach economies of scale (in other words, to utilize increasing returns of scale). Alternatively, for the high-tech final-goods sector to become viable, a sufficiently large number of intermediates have to be produced domestically. But if none of these intermediates are currently in production, there may be little incentive for any final-goods firm to enter production on its own. Then, the economy may get stuck in a low-income, low-tech equilibrium.

For example, one imperfectly tradable input is specialized skilled labor, implying that importing it is associated with high costs. To attract investors in electrical equipment manufacturing, for example, there should be electrical engineers on the local market. However, an individual’s decision to specialize in electrical engineering requires that manufacturers already be present and demanding the skill. Likewise, schools will not invest in training electrical engineers if there are not sufficient students willing to enter this profession since the investment will not pay off. It is obvious that there is a need for some kind of coordination for a new high-tech industry to take hold.

Another way to think of imperfect tradability of inputs is to consider transport costs and the tacit nature of knowledge.5 These two make the cost of importing inputs high. Thus, countries where hightech production is geographically concentrated gain a competitive advantage.

To make co-location happen, there might be a need for coordination in a centralized manner.

What if the Georgian Government were to act like Irakli and serve as a coordinator? Such a strategy is relatively costefficient, is faster (than, for example, institution building) and is self-enforcing, as once all the imperfectly tradable input suppliers are present, further intervention from the government is unnecessary.

Thus, this is the kind of a role for the government that does not risk it overly interfering in business and further consolidating power.

This story is based on an interview with Irakli, the founder of “Khelosnebis Kalaki”. For extended version please see the publication.

2 Good is considered as imperfectly tradable if the costs of trading it with the rest of the world are of importance.

3 See Rodriguez-Clare, A., Rodríguez, F. and Fischer, R., 2005. Coordination failures, clusters, and microeconomic interventions [with Comments]. Economía, 6(1), pp.1-42.

4 See Rodrik, D., 1996. Coordination failures and government policy: A model with applications to East Asia and Eastern Europe. Journal of international economics, 40(1-2), pp.122.

5 Ibid.

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Gov't to Allow Foreign Citizens to Work Remotely from Georgia

BY ANA DUMBADZE

A

s part of the strategy of the gradual opening up of the country, the Coordination Council of the Government has taken a decision to set up a special entry regime for foreign citizens.

As reported by the Ministry of Economy and Sustainable Development, the project was initiated by the Prime Minister and drafted by the Ministry of Economy and National Tourism Administration.

The project is intended for foreigners who are freelancers; who work remotely or can manage their businesses from

every part of the world.

Based on the draft project, the Georgian government will exceptionally allow citizens of all countries to cross the border who will have the right to live in Georgia for at least 6 months.

"We invite this target audience to Georgia and offer them to live in our country under special conditions," said Natia Turnava, the Minister of Economy.

"We're talking about opening the border in a manner which will let us protect the health of our citizens and on the other hand, let every foreign citizen who falls into this category to enter Georgia," she added.

The Minister also noted that a special platform for applications has been set up for those who want to stay in Georgia for a long time.

Based on the initiative, a citizen of a foreign country who seeks to enter Georgia for the long-term should fill in a mandatory application form and obtain the preliminary confirmation required for border crossing.

While filling in the form, the applicant should provide personal data, information about their employer, preliminary agreement on 14-day quarantine, etc.

Long-term visitors will go through the 14-day quarantine at their own expense at the commercial rate. The need for a 6-month travel insurance is also being considered.

The Ministry of Economy and Sustainable Development of Georgia will make the project public any day now, so that the target groups can start filling out applications.

"We'll present our project for public discussion soon in order for the targeted groups to have information and start

filling the application in order to travel and manage their businesses from Georgia," Turnava said.

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BUSINESS

GEORGIA TODAY

JULY 17 - 23, 2020

Ambience: the Interior Accessories Store for Your Perfect Home and different collection. In the store, we have beautiful items from different European countries, among them Italy, France, Spain, Germany, Holland, and Belgium.

That’s why the collections presented at our store are so sophisticated and diverse.

A few months ago, considering the increasing customer demand, we opened a new, larger store at 2 Abashidze Street, in the central Vake district of Tbilisi.

Our staff is looking forward to meeting the customers and offering them the best accessories to decorate their dream homes.

ADVERTORIAL

G

iven the fast pace of modern life, it is extremely important to find a place where one can access all the necessary items for their home in one space.

Interior accessories store ‘Ambience,’ located in the central part of Tbilisi, is the perfect place for those who seek for high quality, elegant home and kitchen accessories, lighting, furniture and souvenirs produced by leading foreign brands.

Visiting ‘Ambience’ is the easiest way to renew your home.

The store presents an elegant combination of everything you could possibly need to fill your home, from furniture to tableware.

Moreover, ‘Ambience’ offers the most beautiful Christmas trees and ornaments in the city for the New Year’s holiday.

It’s also the perfect place to find luxury products chosen for their sustainability, character, and functionality, at affordable prices.

In January 2020, a fire broke out in the store, causing great damage to it; however, the team of ‘Ambience’ managed to overcome all the difficulties and come back with even more diverse products and pleasant surprises for its loyal customers.

GEORGIA TODAY spoke to Maya Jimsheleishvili, the Founder of Ambience, who elaborated on its history, activities, distinguished features and future plans. “‘Ambience’ has a history of 13 years.

It was founded completely spontaneously,” she tells us. “I’m very fond of traveling, and always come back full of emotions and impressions. New ideas always come to me when traveling, and one of those ideas was to create an interior accessories store. As an artist and interior designer, I’ve always been very passionate about collecting original items and bringing things home from different countries.

“However, this process was also accompanied by some difficulties. 13 years ago, there was not a large selection of beautiful and different items in Tbilisi, accordingly, one of the ideas was to create an interior accessories store. I thought this idea would have a good future and today I would boldly say that this initiative was successfully implemented as today ‘Ambience’ is a very popular store. The whole team is constantly thinking about development, and we always try to make our customers happy with exciting novelties.”

WHICH PRODUCTS DOES ‘AMBIENCE’ OFFER ITS CUSTOMERS, AND WHAT MAKES IT DISTINGUISHED FROM OTHER SIMILAR PROFILE STORES? We always offer our customers an exciting

THE LAST FEW MONTHS HAVE BEEN DIFFICULT FOR THE BUSINESS SECTOR DUE TO THE CORONAVIRUS PANDEMIC. HOW DID YOUR BRAND COPE WITH THESE CHALLENGES?

ties, but fortunately, thanks to the optimism and tireless work of our team, we fully restored ‘Ambience.’ Today, it is even more beautiful and colorful than before.

The beginning of 2020 was quite difficult for the world. ‘Ambience’ also faced very big challenges.

On January 1, 2020, a fire broke out in our store, causing a lot of damage.

Shortly afterwards, the challenge of the COVID-19 pandemic was added to this. We went through a lot of difficul-

WHAT ARE YOUR FUTURE PLANS? ARE YOU PLANNING TO EXPAND YOUR NETWORK OR LAUNCH A NEW BRAND? We have some quite exciting future plans.

Hopefully, we will overcome all the difficulties and will implement them successfully in the near future.

BUSINESS

GEORGIA TODAY JULY 17 - 23, 2020

7

Remote Proximity, or Beeline Internal Communication

I

n today’s world, the practice of remote work has been widely established, even in the largest corporations. Beeline is one of those companies that decided to keep remote work as a new practice and introduced a "work from anywhere" policy. In order to preserve the corporate culture at such times, modern corporations use a number of practices.

Khatia Giorgobiani, an organizational development specialist, tells us about Beeline's experience and the additional importance internal communication has gained in the company.

“Internal communication is not just about news and informing employees.

Internal communication is one of the most powerful tools for supporting corporate culture and ensuring employee engagement, always, be it in a period of crisis or a stable daily routine.”

WHAT COMMUNICATION CHANNELS DO YOU USE AND HOW WERE THE EMPLOYEES ARE INVOLVED? Our main internal communication channel is Workplace by Facebook. We have been using this platform very actively since 2018. Employee engagement has always been high, and the topics, of course, have always been “alive,” relevant to a particular moment, time and situation... The difference in today's situation is that during this period, a new feature has been added to the platform, making it a kind of "gathering place" necessary for corporate life and becoming a space for teamwork, spending time together, sharing news, and supporting each other.

WHAT WAS THE CONTENT FOR INTERNAL COMMUNICATION IN PARALLEL WITH THE CURRENT EVENTS IN THE COUNTRY FROM

MARCH TO THE PRESENT?

An unusually extraordinary situation has arisen - physical distancing and "distance proximity" have become vital. We had to care to strengthen the corporate spirit so that employees did not lose a “sense of belonging.” On the contrary, this sense should become even stronger.

We had to show the main thing - the most important issue for the company is the physical and mental health and safety of people. Since February 2020, a crisis-related internal communication plan, just like other action plans, has been built on this one and main principle.

It all started in late February. As soon as the first cases of coronavirus were identified in Georgia, we made the first information brochure - how and how not to act, how to stay calm and where to get the most reliable information.

From that day on, internal communication became strictly consistent and regular, as the very first communication feedback showed us that we are very important to the people on whom the corporation stands.

The language of communication has become even softer and more informal.

In the very first days, we called our new corporate reality "Shinshroma" (“work at home”) and even created a relevant guidebook about the daily routine, workspace and work process.

We held a photo-video contest on the topic "Shinshroma", chose winners, and delivered symbolic gifts at home along with personal letters.

We have dedicated our platform to “Mindfulness” training and activated an online training communication campaign.

We’ve organized the “lives” of top managers on completely free topics - presenting what, in their opinion, would make it easier for employees to deal with

stress, cheer them up, or motivate them.

We conducted weekly fun and, at the same time, business surveys. It was a kind of “checking the pulse” to analyze which issues were the most challenging for us, what was easy to deal with, whether we liked it or not, and we already knew how we were going to manage things the following week.

During the quarantine, we launched a weekly live show "Coffee Break", which became a kind of “domestic show,” it still continues successfully and we will probably keep it for a long time. This show is dedicated to various current or just exciting topics, and we invite employees to talk. The main purpose of the program is to get to know the employees better or from a different angle.

In addition, we created a list of entertaining activities to do at home on Friday

evenings and weekends. We created groups of movies, TV series and book lovers and also a group for parents.

We start every Monday with a refreshing “good morning” and new plans, and end every Friday with a summary of the week and a thousand thanks to our employees.

And all this, of course, happening in parallel with the publication of business news, new products, services, and reports of various functions.

IN TERMS OF THE "WORK FROM ANYWHERE" POLICY, WHAT TOOLS DO YOU USE TO MAINTAIN A CORPORATE CULTURE AND OVERALL WORK MOTIVATION? The newly introduced “Shinshroma” (“work at home”) has turned into "work

from anywhere", however, this does not change anything significantly.

The main principle of our work, obviously, has not changed, because the basis of corporate culture – our values - has not changed. People and their health and safety, remain our main value.

We believe that free and happy employees who feel and see that they are trusted, appreciated and supported are the most productive. This will be a course of future development of "work from anywhere" and also the way to maintain corporate spirit - we will continue to care for people and this time, we will give them what they need most - the possibility to “live” the relationship. We still remain active in the online space and at the same, planning offline formal or non-formal gatherings of different formats and a thousand other interesting activities.

Study Examines Awareness of COVID-19 & Actions Taken to Combat Pandemic in Georgia

BY NINI DAKHUNDARIDZE

O

ver 90% of Georgians are aware of COVID-19 transmission and follow selfprotection measures, a new study says.

A web-briefing was held on Wednesday to present the results of a recent Behaviour Insights Study, done to find out public attitudes in Georgia during the COVID-19 pandemic.

The study was conducted by the World Health Organization (WHO) Regional Office for Europe and UNICEF, in agreement with the Ministry of Internally Displaced Persons from the Occupied Territories, Labor, Health and Social Affairs of Georgia, with support from the European Union.

The study showed rather positive and promising results.

It was conducted in three waves, with one-week intervals, during the period 21 April - 15 May and covered all regions of Georgia except Abkhazia and South Ossetia.

The majority of respondents (76-84%) believe that the Government of Georgia has taken adequate measures to prevent the spread of COVID-19, ensuring a timely response. Additionally, the trust towards responsible state agencies also proved high.

Over 90% said they are well-aware of COVID-19 symptoms and its transmission. Awareness of self-protection measures was also above 90%, according to

the study. And there is something to that – wherever you go in Georgia, in most public places, you’ll see people following the safety measures, wearing masks, and hand-sanitizing. However, many might be doing it just to follow orders, not fully realizing why these steps are necessary. The study also showed this result.

“There are certain gaps in awareness of less common symptoms related to COVID-19: respondents are therefore eager to receive additional information,” reads the study.

Moderate optimism was seen through this study on the population’s view of

how they are handling the pandemic: 55% assessed that the probability of being infected by COVID-19 is low.

The representatives of the EU, the WHO, and UNICEF have commented on these results and the importance of the studies like this recent Behaviour Insights Study.

“The study is important not only to understand where the population stands in relation to the crisis, but also to guide us all in our future interventions responding to COVID-19. Such a reality check connecting us with the expectations and perceptions of the population allows the design of the most spot-on responses.

With this in mind, the EU will continue to stand by Georgia in fighting the pandemic in the best way possible,” said Catalin Gherman, Deputy Head of Cooperation at the EU Delegation to Georgia.

“WHO has been collaborating with Georgia for many years, and our collaboration intensified during this pandemic,” said Silviu Domente, WHO Representative in Georgia. “This study gives us the most valuable information, which is already being used to shape up on-going and future interventions in response to the COVID-19 crisis. Results are already reflected in the Risk Communication and Community Engagement

Strategy, which the Government of Georgia is developing in partnership with WHO and UNICEF to strengthen the country’s preparedness and response capacities for the possible second wave, and the communication materials under production are being adapted, so that they better respond to the population’s needs and expectations.”

“Since the outbreak of the pandemic, UNICEF has provided significant support to Georgia to meet immediate emergency needs and strengthen the country’s capacity to respond to this public health emergency,” Dr. Ghassan Khalil, UNICEF Representative in Georgia, noted.

“In partnership with WHO and our donors, UNICEF has supported the NCDC and the Ministry of Health in developing the Risk Communication and Community Engagement Strategy, which will soon be approved by the Ministry of Health. The results of the Behaviour Insights Study have been crucial in this process, and will further be used to shape further assistance and interventions.”

In addition to the above three countrywide rounds, the study focused on the Kvemo Kartli and Samtskhe Javakheti regions (due to their ethnic minorities).

The results of the regional study will be available for the public soon.

Georgia has so far confirmed 1006 coronavirus cases. Of these, 883 have recovered and 15 have lost their lives.

5640 remain in quarantine and 244 are at different hospitals under medical supervision, according to the government-run webpage stopcov.ge.

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BUSINESS

GEORGIA TODAY

JULY 17 - 23, 2020

Capacity of Domestic Tourism in Georgia spend the same amount of money here as they spent abroad. The second part of the assumption is quite optimistic, however, in combination with a more pessimistic assumption of no foreign visitors for the rest of 2020, it is still useful for the analysis.

A closer look at the indicator of maximum capacity in Q3 of 2020, which is of interest at the moment, reveals that if Georgian visitors (both, domestic and those who traveled abroad) replicate the pattern of 2019, just 33% of revenues from total tourism will be generated from domestic tourism, while in the case where they replicate the average pattern of past 5 years, the figure will again amount to 33%. A significant seasonal pattern of the indicator is also worth noting, as it has the lowest values in Q3, the season with the most international visitors, and the lowest in Q1.

Using three assumptions3, given that domestic tourism is fully utilized, anticipated revenues from tourism in 2020 is $1 730 mln, which is just 44.1% of total revenues from travel in 2019 ($3 922 mln). This figure further emphasizes the extent of Georgia's dependence on international tourism.

T

he COVID-19 pandemic induced massive lockdowns all over the world, including in Georgia. According to the anti-crisis plan of GoG, which is discussed in details in our May update, until 15th of June, accommodation facilities could not operate due to the strict lockdown rules, and while the initial plan was to open up the borders for foreign visitors on July the 1st, due to the epidemiologic situation in potential partner countries (e.g. Israel), it was postponed to the nearest future, reportedly, to August the 1st.

This makes domestic tourism a major, if not the only source of revenues in tourism sector in 2020. The government has already started campaigns1 to promote domestic tourism. More importantly, according to the survey conducted by PMCG in June 20202, 63% of surveyed accommodation facilities and 50% of surveyed food facilities state that stimulating domestic tourism will have a either positive or partially positive impact on their busi-

ness. However, the dependence of Georgian tourism sector on international visitors is very high: 45% of accommodation facilities report that the share of foreign visitors in their total visitors is in the range of 81-100%.

While the dependence is not so pronounced in food sector, 51% of them state that the share of foreign visitors is more than 41%.

With the substantial share of international visitors in Georgian tourism sector, it is highly unlikely that domestic tourism will compensate for total revenues generated from tourism (both, domestic and international) completely. By looking at the dynamics of Georgian domestic tourism in the past, and by combining the analysis of the expenditures of Georgian visitors abroad, it is possible to estimate maximum capacity of domestic tourism to compensate for total revenues from tourism, with the assumption that every Georgian who spent their vacations abroad would opt for Georgia in 2020 and that they would

BUSINESS

GEORGIA TODAY JULY 17 - 23, 2020

9

History of Georgia’s Economy. Part III

BY APOLON TABUASHVILI, EMIL AVDALIANI

I

n the first two parts of this series on the history of medieval Georgia’s economy, agriculture and the role of cities and villages were discussed at length. Today, we’ll touch upon the crucial 18th century: the period when Europe took its first steps toward industrialization.

After the decline of the previous centuries, a favorable situation for economic development in eastern Georgia was created in the late 18th century, in most part conditioned by the liberation of Kartli-Kakheti from Iran and the reforms implemented by Erekle II. Erekle II introduced progressive laws for the development of trade relations, and established a firm customs tariff.

At the same time, he invited Armenian merchants and those living in various provinces of Iran to his kingdom, promising them protection and security. To stimulate trade, the King broke with feudal conservatism, took an unprecedented step, and advanced traders as princes and nobles. As a result, a large part of the South Caucasian merchants came under the protection of Erekle II. As the restoration of the road connecting Europe and Asia through Georgia exceeded the capabilities of the Kingdom of Kartli-Kakheti, the King shifted his attention in another direction. In 1750, the Dariali or the "Ossetian Road" was opened, and Erekle II set a preferential customs tariff on imported or exported goods in order to popularize this road. In addition to the named highway, an important trading artery was the old traditional caravan route through which Tbilisi connected the cities of the eastern part of the South Caucasus and northern Iran

Four silver abazis of Erekle II struck at the Tiflis mint in the 1790s. Source: Wikimedia commons

with Istanbul. Care was also taken to improve the caravan routes, and, soon, Erekle's subordinate merchants were among the main actors in the Iran-

Russia trade turnover. As a result, the role of Tbilisi grew.

The monetary reform also had a positive effect on deepening trade rela-

tions and strengthening independent economic policies. In the 1760s, the Tbilisi Mint became independent from the Iranian vassalage, and Erekle II

started to issue large quantities of his own coins.

As a result of the implemented measures, the economy of eastern Georgia developed, contributing to the improvement of urban life. The opening of the road connecting to Russia led to the establishment and development of Dusheti, Ananuri and Akhalgori. As a result of the strengthening of economic ties between western and eastern Georgia, the cities on the roads connecting Imereti and Racha, namely Tskhinvali and Surami, developed significantly.

The city of Sighnaghi developed in Kakheti, which, on the order of the king, was surrounded by a defensive wall.

The revival of urban life in the late 18th century, and the development of monetary and commodity relations, led to the strengthening of the domestic market. We see in the historical documents that in the discussed era, all the products or items that were consumed by the people were traded in the cities of eastern Georgia. Different corners of the country were connected to each other.

In the late 18th century, trade and economic ties between eastern and western parts of Georgia were restored.

In addition to the loss of the Ottoman state’s power over time, which weakened economic ties, the traditional divide of western and eastern Georgia between Iranian and the Ottoman ceased to exist with the liberation of Kartli-Kakheti from Iranian domination. Kartli-Kakheti, independent of Iran, helped the country to escape economic isolation. In order to stimulate intensive economic relations between the two sides of the country, Erekle II set a preferential customs tariff for trade with western Georgia.

As a result, according to sources, trade caravans between Kartli and Imereti were moving almost every day.

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SOCIETY

GEORGIA TODAY

JULY 17 - 23, 2020

Walking in Circles: Days 3-4 BLOG BY TONY HANMER

A

s we tried to get used to our new daily life of walking through unfamiliar terrain in Svaneti with extra weight on our backs and camping every night, a few things became clear. For example, every little niggling irritation from a strap or shoe could develop into a blister over time, and one of these in the wrong place could halt a person altogether. Or, just a little too much weight would be too hard to get used to instead of building up the necessary muscular resistance to it.

This, while ascending from 2000 to 3000 m on the Guli Pass, then going down to about 1600 m at its end! The paths are well marked for walkers, as this is a very popular route. But due to the Virus, instead of it being crawling with other foreigners walking in both directions, we had the whole thing to ourselves. Nice for us, sorry for the local tourism industry relying on all that regular income.

So this was our entire walk’s single biggest day of altitude change, along with about 24 km of trekking under backpacks which were still too heavy despite lightening them somewhat the day before. Gnats had attacked our legs, and the itching which persists into Day 12 as I write this was taking hold. We took many short rest stops as our way climbed towards its summit, and the altitude affected our muscles more. But

we were making progress. It also became clear that Josh prefers descents, while I find ascents easier. All the while, Ushba was dazzling us with ¾ views of its twin peaks, providing plenty of reasons to stop for photos.

A brief drizzle near the 3000 m pass made us gear up for more rain: a poncho for me, jacket and backpack cover for Josh. But it only lasted for a light 15 minutes or so, and soon we reversed the cover, having seen that it was easily in reach and adequate for our needs. Down we went, seeing the immense new landscape before us which would lead step by step towards Lenjeri, the last village before Mestia and our goal for that evening.

I was also realizing that one’s simple mental attitude makes a huge difference in long-term endurance tests. If you can cope with irritations and minor pains for some hours at a time, knowing they won’t last forever, you’ll probably be okay. If you start hating the action of hoisting that backpack onto your shoulders, though, instead of getting used to it, it might finish your desire to continue altogether. We’re GOING to do this: the main question is, how?

We also both saw that a full day’s rest stop in Mestia, where I have many friends to put us up for the night, would be necessary, as we were rather shattered after Guli. I was even contemplating the drastic measure of leaving my tent behind altogether to cut down on weight to the maximum; sleeping in the open in fine weather, under shelter otherwise. Fortunately, Josh talked me out of this unnec-

town, sadly bereft of its usual crowds of tourists given the season; eat “proper” food and sleep on normal beds; wash ourselves and our few clothes; and even cut down further on unnecessary things which added weight to our backs. (The backpack’s weight should be all on your hips, but it’s all on your body somewhere…)

Then, much refreshed, it was time to head towards Ushguli. From now on we would stick to the roads, except where we could scramble across the many switchbacks and save quite some distance in the process. Our pace began to pick up, and we were into 20+ km days as a rule rather than an exception. I was noticing my backpack less, making further small adjustments with big consequences in comfort. We got past long Mulakhi, up the pass and down the other side, through Ipari, and stopped for the night at the lone Tower of Love, right on the river. Ushguli was less than 20 km away. Georgians, if there’s ever been a time to discover your own country’s many unique corners instead of pining for the international travel which is denied you for a while, that time is now!

essary step.

We stayed at Roza Shukvani and Vitia Chartolani’s new hotel for two nights,

and caught up with our former hosts from 10 years ago and great friends.

There was also time to look around the

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

Women across Eurasia Report ‘Traumatic’ Childbirth Experiences during COVID-19

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ew investigation reveals ‘alarming’ evidence of childbirth experiences that breach national policies and WHO guidelines, including bans on birth companions that are still in place after lockdowns have eased.

Women across Eurasia have reported disrespectful treatment, bans on birth companions and other “traumatic” childbirth experiences during COVID-19 that breach World Health Organization guidelines, a special OpenDemocracy investigation revealed this week.

Bans on birth companions are still in effect in some hospitals in Armenia and Ukraine, despite the easing of lockdowns and the reopening of ‘non-essential’ shops and restaurants. Some hospitals in Georgia, Kazakhstan, Moldova and Russia also banned partners at different points during the pandemic, against national regulations in all these countries.

According to the WHO, all pregnant women “have the right to high quality care before, during and after childbirth”.

It says women giving birth should have companions of their choice and receive respectful treatment and clear communication from maternity staff, appropriate pain relief, and support to hold their baby skin-to-skin and to breastfeed, even if they are COVID-19 positive. They should not have C-sections or other procedures without medical justification.

Since the pandemic was declared in March, OpenDemocracy has spoken to dozens of women around the world and identified cases in at least 45 countries of experiences during childbirth that appear to breach these guidelines, as well as national policies. In Eurasia, these cases include:

BEING TREATED “LIKE A MACHINE” “You are not perceived as a woman. They

Photo by Tom Adriaenssen

treat you like a machine,” one woman in Armenia told OpenDemocracy, describing how she felt pressured by hospital staff into having a C-section, which she thought was not medically necessary and was performed to get her out of the delivery room faster.

FORCED TO GIVE BIRTH “ALONE” Partners were banned from maternity wards across the region. One woman in Ukraine told OpenDemocracy. “My husband and I are ready to handcuff ourselves together if doctors won’t allow

him in,” she said.

NO PROTECTION Another woman in Ukraine described being attended to by medical staff without personal protective equipment (PPE).

She was also asked by staff to bring her own cotton wool and antiseptic, as well as gloves for them.

In response to OpenDemocracy’s findings Petra Bayr, Chair of the Council of Europe Parliamentary Assembly’s Equality Committee, said: “We expect more from our governments in times of crisis.

They must be held accountable for the

mistreatment documented by OpenDemocracy.”

Olga Gorbenko, co-founder of the NGO Natural Rights Ukraine, said restrictions on birth companions have roots in the USSR, which did not allow visitors into maternity wards, even though “it is actually dangerous for a woman who gives birth to be alone.”

Ian Askew, WHO Director of Sexual and Reproductive Health, said the WHO’s childbirth guidelines should be followed at all times and everywhere. He added that: “Many of us are receiving anecdotal reports of women not receiving

respectful, dignified or high-quality care before, during and following childbirth.

This is alarming.”

Melissa Upretti, a human rights lawyer and member of a UN Working Group on Discrimination against Women, called OpenDemocracy’s findings “shocking and disturbing”. She added that the denial of services that women need is “discrimination from a legal standpoint. We do have a very strong case to make… that governments are violating their own laws and policies.”

Petra De Sutter, a Belgian MEP, gynaecologist and President of the European Parliamentary Forum for Sexual and Reproductive Rights (EPF), said: “OpenDemocracy’s research clearly reveals how unnecessary restrictions constitute an alarming pattern of women’s health and rights being deprioritized during the crisis.”

A spokesperson for the UN High Commissioner of Human Rights, Michelle Bachelet, said “states need to bring their practices in line with the WHO guidance in this area without delay,” and “welcoming a child into the world should be a time of joy, rather than stress, trauma, and potential human rights violations.”

In Armenia, seven of the nine maternity hospitals in the capital Yerevan confirmed to OpenDemocracy in midJuly (weeks after the lifting of other COVID-19 restrictions) that birth companions were still not allowed. The other two hospitals did not respond. The Armenian health ministry said it had offered health institutions the option to “temporarily suspend visits”, but that companions can be allowed if precautions are taken. In June, three hospitals specified that women who pay for a private room can have postnatal visits from other women, but men are still banned.

In Ukraine, several women told OpenDemocracy they still faced bans on birth companions after lockdown began to ease in May.

SOCIETY

GEORGIA TODAY JULY 17 - 23, 2020

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Carrefour’s Summer Raffle Begins! A Surprise for 2 People in Every Branch!

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rom Wednesday on, a big surprise is awaiting every loyal customer of Carrefour. Everyone who owns a MyClub card or phone application, or those who become a member of MyClub, have a chance to spend two amazing nights in the hotels of Sheraton Batumi or Radisson Collection Tsinandali – and the travel voucher is for two people!

While the raffle is ongoing from July 15 till August 15, the travel voucher will not expire until the end of the year, and the lucky Carrefour customer will be able to use it whenever suits them!

There is one interesting premise to these travel vouchers: those who win them in Tbilisi or Rustavi will get to go to Batumi’s Sheraton, while lucky winners from Batumi will visit the Radisson located in Kakheti.

The Carrefour officials warn that it is extremely important to pay attention to the check, as the surprise will be written there.

From July 15 to August 15, swipe your MyClub cards in any Carrefour store and be awarded a chance to win two-day travel vouchers for two people in Sheraton Batumi or Radisson Collection Tsinandali.

Two travel vouchers will be raffled every day – try your luck and participate!

One of the world’s biggest network of hypermarkets and Supermarkets, Carrefour, operated in Georgia by Majid Al Futtaim, has been a player in the Georgian market since 2012.

The brand aims to offer a large variety of high quality products at the most affordable prices, and to create great moments for every one, every day.

Entering the Georgian market in 2012 was a strategic step for Carrefour. The company saw the pos sibility and potential of development in Georgia, and today, Carrefour has 21 stores and over 2000 employees in the country.

Carrefour has not finished its road to expanding and it is continuing its search for ways to offer a unique shopping experience to even more customers. New Carrefour stores are opening in Gori and Zugdidi soon.

On its 7th birthday in the country, proving its love of its customers, Carrefour offered its regulars a store loyalty program: 1. To become a member of MyClub, you need to register via the Carrefour Georgia application available in Play Store and App Store.

2. Register and begin using the MyClub barcode at the cash register, showing it on every visit to any Carrefour store, or get a MyClub card in Carrefour branches.

3. MyClub will transform your spent money at the Carrefour store to points on your card: every 1 GEL spent equals 1 point, on chosen MyClub categories.

4. 100 points = 10 GEL 5. To spend the points on the card, you will need to have at least 100 points on your account.

6. Collect more, save more!

Newly Renovated & Fully Equipped Boutique Hotel for Sale or Rent in the Heart of Tbilisi

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ocated in the most authentic district of Tbilisi, in a safe neighborhood, this newly reconstructed hotel has been renovated to high

standards.

• Exclusive design of both interior and exterior • 26 rooms, fully equipped with high standard furniture and equipment • Common spaces (two terraces, one large area for lunches, one conference room) • Fully equipped restaurant with EU standard equipment • EU quality ventilation and air conditioning (each room has a source of fresh air) • High standard electricity and fire

safety in all rooms • Autonomous supply of water (tank) and electricity (generator) The building is fully functional for a boutique hotel; however, it can be easily transformed into: - A representative office - A representative office plus hotel rooms (for short term consultants) - Any other use (such as a co-living and co-working space for expats) Total area: 1500 m2 Suggested rent: 9000 USD (excl VAT) - Substantially lower than market price Suggested sales price: USD 2.5 million (plus VAT), including all equipment and furniture Please contact: E-mail: info@georgiatodaygroup.ge

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George Sharashidze COMMERCIAL DEPARTMENT

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GEORGIA TODAY

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

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