Issue #1252

Issue no: 1252

• JUNE 26 - JULY 2, 2020 • PUBLISHED WEEKLY

FOCUS ON SWEDEN

An exclusive look into the Swedish handling of COVID-19

PRICE: GEL 2.50

In this week’s issue...

Georgia Claims 3rd place in EU Sustainable Energy Award for EaP NEWS PAGE 2

PAGE 4

Agri Review | The Agricultural Sector In 2019 ISET PAGE 6

MG Law Office: Termination of Employment during Probationary Period BUSINESS PAGE 7

PMCG: Foreign Direct Investments in Georgia

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BUSINESS PAGE 8

How to Achieve Sustainability of Creative Enterprise Education in Georgia

Keir Giles: “I’ve No Doubt President Putin Has Already Chosen a Successor, or at Least Has a Shortlist”

BY VAZHA TAVBERIDZE

R

ussia’s handling of Covid19, the upcoming referendum on constitutional changes that would see Putin remain on the throne for the foreseeable future and the everpresent confrontation between the Kremlin and the proverbial West – we discussed all this and more while chatting with Chatham House’s Keir Giles in the second interview of the new GISP series, titled “Insights on Putin’s Russia.” Giles’ latest book, “Moscow Rules” is essential reading for anyone interested in how modern Russia and the Kremlin works.

HOW IS RUSSIA HANDLING THE PANDEMIC COMPARED TO THE REST OF THE WORLD? It’s hard to make a direct comparison, because in order to know what stage of the pandemic Russia is at and how it would cope with it, you would have to have more transparency as to what is actually happening there than is cur-

rently available. As such, it is inevitable that if low fatality figures are reported, this will lead to suspicions that Russia is concealing the numbers, or is perhaps hiding them among increased figures of death from pneumonia. It is inevitable when a country like Russia habitually deceives the world and its own citizens that even if they tell the truth about successfully managing the pandemic, they would be unlikely to be believed.

BY NOT REPORTING COVID-19 CASES, NOT PROVIDING ADEQUATE STATISTICS, IS IT NOT ALSO PUTTING THE REST OF THE WORLD AT RISK? There are some parallels between the criticism pointed at Russia and those pointed at China. It will have much less impact at this stage of the pandemic, when travel restrictions are already in place and national authorities elsewhere are far more alert to dangers of international travel, to the extent that if Russia has not fully recognized or admitted the scale of the challenge, it will be primarily an internal challenge to Russia itself.

Continued on page 2

SOCIETY PAGE 9

‘Georgia Rediscovered’ Exploring Authentic Georgia through Gastronomy & Crafts CULTURE PAGE 10

“Corona Days” Artworks of Young Georgian Artists: Mariam Rukhadze CULTURE PAGE 11 Prepared for Georgia Today Business by

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2

NEWS

GEORGIA TODAY

JUNE 26 - JULY 2, 2020

Georgia Claims 3rd place in EU Sustainable Energy Award for EaP

BY ANA DUMBADZE

Image: Civil Aviation Agency

Resumption of Regular Flights Delayed until Late July

BY ANA DUMBADZE

T

he resumption of regular flights has been delayed until the end of July.

"The restriction on the implementation of international regular air traffic has been extended to July 31, 2020," the Civil Aviation Agency informed airlines carrying out regular flights to Georgia. The above does not apply to charter flights, which will still be performed on the basis of special permission.

Georgia was planning to lift the restriction on air traffic on July 1, however, the date has been postponed.

On Thursday morning, Natia Turnava, the Minister of Economy and Sustainable Development, said the resumption of regular flights was likely to be delayed until the end of July, depending on the epidemiological situation around the world.

"Most likely, we will have to postpone the resumption of regular flights until the end of July, but charter flights are being carried out even today and so will it be in July. It would not be a responsible decision to open regular flights now,” she said.

T

he winners of the second edition of the EU Sustainable Energy Award for the Eastern Partnership were announced at an award ceremony as part of the EU Sustainable Energy Week, with the Georgian project of ‘Biomass Energy and Energy Efficient Technologies as Sustainable Energy Solutions’ coming in third place.

Commissioner for Neighborhood and Enlargement Olivér Várhelyi congratulated all the award recipients, with the main prize awarded to the ‘Green Light Moldova - Modernization and Saving Energy in Street Lighting’ project.

The second place went to the ‘EU4Civil Society Energy Efficiency in Armenian Communities’ project, and the third place was awarded to the Biomass Energy and Energy Efficient Technologies as Sustainable Energy Solutions in Georgia’ project. All projects competing in the award were EU-funded initiatives.

The winners were selected by public vote from a shortlist of six finalists. The award is part of the European Union Sustainable Energy Week 2020 (EUSEW) and was extended to the Eastern Partnership (Armenia, Azerbaijan, Belarus, Georgia, the Republic of Moldova and

Source: euneighbours.eu, Image: European Union

Ukraine) for a second time this year. The competition recognizes inspiring EUsupported energy efficiency and renewable energy projects that directly help citizens and communities save energy or switch to sustainable sources.

Georgia's 'Biomass Energy and Energy Efficient Technologies as Sustainable Energy Solutions' project was funded within the European Union Covenant of Mayors Demonstration Projects and co-financed by Telavi Municipality. The project envisages full retrofitting of two municipal kindergartens with modern energy efficiency technologies using renewable energy. In addition, a pilot to establish a supply chain of locally avail-

able, environmentally-friendly agricultural waste (vine pruning) was set up to produce energy to replace imported natural gas and unsustainably harvested fuel wood to operate modern autonomous heating systems.

Energy efficiency is a key policy goal within the Eastern Partnership. Around €170 million has been invested in this field in the past ten years, with onetenth of the population in EaP countries having benefitted from more energyefficient and affordable municipal infrastructure and services. The work in this field continues and will have an increased focus on environment and climate resilience.

Keir Giles: “I’ve No Doubt President Putin Has Already Chosen a Successor, or at Least Has a Shortlist” Continued from page 1

GEORGIA AND UKRAINE HAVE A DIFFERENT DILEMMA COMPARED TO OTHERS IN THE NEIGHBORHOOD. IN GEORGIA, THERE IS ALARMING DATA ABOUT RISING CORONA CASES IN THE OCCUPIED TERRITORIES, WHICH RUSSIA SEEMS TO BE TURNING A BLIND EYE TO. If both Georgia and Ukraine wish to be seen taking responsibility for the population under occupation, they need to at least attempt to take steps to protect them during such a crisis; but the extent to which they are capable of doing so depends entirely on Russian cooperation.

WHAT COULD THE IMPLICATIONS BE OF THE PREDICTABLE OUTCOME OF THE UPCOMING CONSTITUTIONAL CHANGES REFERENDUM IN RUSSIA? I think the question is more what it would not change. We will continue to hear from opponents of Putin, both in the West and in Russia itself, that the entire Russian system of government is doomed and will collapse; every year that it doesn’t happen, we hear new justifications for why it is still there, but in fact there is no reason to suspect that there are any serious threats to the current system of government. The potential threat of disruption and instability at the time of handover from Putin to a new leader has now been averted for the foreseeable future.

WILL HE GET TO CHOOSE A SUCCESSOR? I have no doubt President Putin has already chosen a successor, or at least he has a shortlist; regardless of whom he has in mind for an eventual successor when he steps down from the leadership, he will ensure his own survival in case of a sudden event that might render him incapable of ruling. He would still wish to safeguard his health, his

family, his legacy, his money;

IN YOUR BOOK, YOU SAY “NEITHER PUTIN NOR OTHER RUSSIAN OFFICIALS UNDERSTAND THE WEST: THEY THINK IT FUNCTIONS LIKE THE RUSSIAN FEDERATION WITH JUDICIARY AND MEDIA FOLLOWING INSTRUCTIONS.” WHAT'S THE BASIS OF SUCH A STATEMENT? WOULD IT NOT BE MORE LOGICAL TO THINK THEY UNDERSTAND EXACTLY WHAT THE WEST STANDS FOR & HOW TO EXPLOIT IT? The two are not necessarily mutually exclusive; they are insights into western behavior which Russia can use to exploit western vulnerabilities at a tactical level; however, at the same time, Russian leaders have repeatedly demonstrated a failure to understand more strategic realities about the people they are treating as adversaries. One classic example is the the repeated attempts to find personal agreements between President Putin and senior Western politicians which founder on the realization that those Western politicians, because they operate in liberal democracies, cannot single-handedly implement the agreements that are reached with President Putin.

Russia earnestly believes that the Western talk of liberal values, democracy and ethics is in fact every bit as cynical as Russia's own attitude to guiding ideologies. Russia fails to appreciate that in some cases these are in fact deeply held beliefs which do drive western behavior.

YOU NOTE THAT CONTINUOUS CONFRONTATION WITH THE WEST IS SOMETHING INEVITABLE IN THE RUSSIAN MINDSET; THAT THE WEST SHOULD COME TO TERMS WITH IT. IS THIS CONFRONTATION INSTRUMENTAL FOR RUSSIA’S SURVIVAL? It’s a question that concerned western observers for several years when the

extent of Russian hostility was becoming clear: is it a generally held belief in Russia that the West is hostile to it and seeks to attack it, or was this simply manufactured in order to legitimize the leadership and find an extra enemy to distract the population from internal challenges? But the key point now is, whatever underlying factors, it is no longer relevant because what we see is Russia acting on these beliefs whether or not they were originally sincerely held or fabricated.

HOW MUCH OF THIS IS BROUGHT ABOUT BY PUTIN? IS HE JUST SPEARHEADING AN ALREADY EXISTING NATIONAL PHENOMENON AND MECHANISM THAT DOES NOT KNOW ANY OTHER WAY OF EXISTENCE? One of the beliefs held consistently by western liberals in the face of all evidence to the contrary is that President Putin is is an aberration in Russian history and, consequently, if he were to depart, relations with Russia would necessarily improve. This overlooks the fact that many of the things President Putin has said are not unique to him, but have been consistent throughout Russian history, which includes the 1990s when many in the West tried to convince themselves that Russia had friendly intentions and wished to join the international community. We should not expect that a transition from President Putin to another leader would necessarily bring about improvement in Russia’s attitude towards the West or to its own population; in fact, quite the reverse would be possible.

WHAT DO YOU SEE THIS CONFRONTATION EVOLVING INTO OVER THE COMING YEARS? There’s a fundamental contradiction between Russia’s and the West's view of the future of Europe which it is not going to be possible to resolve through policy changes or reset initiatives with Russia coming from the West. At some

point that contradiction has to come to a head, and the most likely facet of it to cause the next crisis is once again the different views between the two sides on the nature of sovereignty; on whether the frontline states should be entitled to determine their own foreign and security policy because they are independent and sovereign, as the West believes. This will lead to more crises within Europe unless there is a recognition at an early stage of the extent to which the two views are incompatible, and consequently a move to manage that incompatibility as opposed to attempting to resolve it.

WHAT KIND OF MANAGEMENT ARE WE TALKING ABOUT? COULD IT INCLUDE THE WEST CONSIGNING AND ACCEPTING THE RUSSIAN PERSPECTIVE? Acceptance on one level is essential; this is the acceptance that two sides cannot agree and will not agree on this subject. What it should not mean is the acceptance of Russia’s view of frontline states, because that goes to the core of western values and the notion that these are in fact independent and free countries. If we erode that fundamental principle, there’s no point in continuing to confront Russia because we have embraced the Russian view that countries should be subservient vassals to larger neighbors.

DO YOU THINK THERE’S MUCH WILLINGNESS IN THIS EUROPE TO UNITE BEHIND THE BANNER OF THAT NOTION? No, and in part this is because the nature of that challenge is so consistently misunderstood. This threat perception is shared by frontline states, but diminishes rapidly the further away from Russia; this is a fundamental challenge not just for supranational organizations like the EU and NATO, but also more broadly for the whole Euro-Atlantic community of shared values.

YOU WROTE “MOSCOW DEMANDS THE WHOLE OF

SOMEBODY ELSE'S CAKE AND THEN GRACIOUSLY SETTLES FOR ONLY HALF.” LOOKING AT GEORGIAN AND UKRAINE, IS RUSSIA RUNNING OUT OF CAKES AND COULD IT BE COMING BACK FOR THE OTHER HALF OF THE CAKE IT HAS NOT ALREADY EATEN? Let’s not forget that Russia is no longer a country which will expand its dominion by military occupation for no evident reason other than pushing threats further away from itself - unless and until those threats become something that Russia finds intolerable. What that means is the situation across Russia's western periphery is stable. There is no reason to assume that Russia would willingly destabilize it, because the previous Russian military interventions we've seen have in each case come with the intent of stopping a situation getting rapidly worse. There was no way most western politicians and decision makers were in a position to understand the Russian view of Ukraine signing a trade agreement with the EU as being equivalent to handing the Black Sea Fleet based in Sevastopol to NATO; in the Western view, there is no connection, yet according to Russia security criteria it demanded action. And let’s not forget Russia’s response to the disastrous 2008 Bucharest Summit, which included Lavrov saying “we will never allow Georgia to become a member of NATO”. We should remember that sometimes when Russia says what they are going to do, they actually do it. Any country that does in fact share a border with Russia cannot be called a winner in the lottery of geopolitics, and they have had to adjust to that geopolitical reality.

4

POLITICS

GEORGIA TODAY

JUNE 26 - JULY 2, 2020

GT LIVE Interview with the Swedish Ambassador to Georgia, Ulrik Tideström

BY TEAM GT

A

s part of GEORGIA TODAY’s ongoing ‘Ambassadors Go Live’ series, we spoke to the Swedish Ambassador to Georgia, Ulrik Tidestrom, about COVID-19 past, present and looking ahead to world recovery, and about how Sweden is helping Georgia in its reforms.

To kick off, here are the latest COVID19 statistics from Sweden, which is 450,295 km² and has a population of 10.23 million.

Sweden appears 23rd on the Worldometer coronavirus list. It has 193 critical patients at present, 5,209 Swedish citizens have died, and total cases currently stand at 62,324.

HOW HAVE YOU AND YOUR EMBASSY COPED AND ADJUSTED DURING THE PANDEMIC? We’ve been very busy, and I would highlight three directions of our work over the past three months. The first is our development cooperation: we have, together with our Georgian partners, gone through each and every program and project and made adjustments according to the situation and the needs, and we are very happy with the results of our work. Then, of course, we have tried to assist Swedish citizens in Georgia, helping the few here looking for ways to go home, and providing other conciliar assistance to our citizens. The third direction is that we have tried to stay in touch with and support Swedish companies in Georgia and facilitate their dialogue with the authorities. At every stage, we have had wonderful cooperation with our Georgian counterparts and the government, as well as civil society and the private sector.

WHAT STEPS HAVE YOUR COUNTRY’S GOVERNMENT AND HEALTHCARE SYSTEM TAKEN TO FIGHT COVID-19 AT HOME, AND ABROAD IN TERMS OF AID? There has been quite a bit of international attention on Sweden’s response to the crisis, and as part of this attention, there have been misunderstandings and quite a bit of misinformation in describing what is happening there. For instance, the narrative that the Swedish strategy in the fight against coronavirus was radically different from that of other countries is not correct. Another narrative was that we were aiming for the so-called herd immunity, and that life in Sweden was carrying on as normal: none of this is true. We have exactly the same goal as other countries: to protect lives

and public health, and as part of that we’ve worked hard to strengthen our healthcare system so that it can provide intensive care for those in need. That has worked well: intensive, advanced care has been available throughout the crisis. The measures taken in Sweden are very similar to those in other countries. We have brought down mobility within and in-and-out of the country; we’ve practiced social distancing; we’ve tried to protect more vulnerable risk groups; we’ve carried out tests. One difference in the measures taken by Sweden compared to other countries is that restrictions have not always been mandatory or legally binding; instead, they came in the form of recommendations from the government. That is something that typically works quite well in Sweden; there is a high degree of trust between the population and the government, and vice versa. Certain measures have been mandatory, like banning public gatherings. So, life has not been going on as normal in Sweden. There is no such thing as a radically different Swedish strategy.

Just like other countries, we’ve based our decisions on the advice of experts.

We’ve had many corona-related deaths in Sweden; this of course is a great tragedy. One reason for this is that the virus found its way into many care-homes for older people, so I think it would be fair to say that we’ve not fully succeeded at providing adequate protection for older people. Lessons have been learned and changes have been made, and we’re already seeing positive results from these changes.

More and more care homes are becoming COVID-free and the number of overall deaths is decreasing. But of course, the crisis is not yet over for any of us.

One of the main differences between Sweden and other countries is that we didn’t close schools for young children.

High schools were switched to a remote model, but kindergartens and younger children’s classes continued as before.

WHAT IS YOUR COUNTRY DOING TO SUPPORT ITS CITIZENS, ESPECIALLY THOSE WHO LOST THEIR JOBS DUE TO THE PANDEMIC? The Swedish economy has of course suffered due to the global recession we’re witnessing. The main priority has been to reduce the spread of the virus and to protect public health, and this has had a huge economic impact. Our country has allocated additional funds to those responsible for the healthcare system and many other critical functions. We’ve temporarily removed the standard deduction from sick pay to encourage people to stay home if they have symptoms.

We’ve also abolished the requirement to present a medical certificate. The

MANY PUBLICATIONS, BOTH IN THE US AND EUROPE, HAVE PRAISED GEORGIA’S HANDLING OF THE PANDEMIC. WHAT’S YOUR TAKE ON THAT?

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TELL US ABOUT THE GRETA PROJECT. government has tried hard to save jobs and to save businesses in Sweden, and to provide financial security and transition opportunities for those who lost their jobs. When it comes to saving businesses, jobs and livelihoods, separate packages have been introduced by our government to reduce the costs for companies and strengthen their liquidity, as well as to improve their access to finance.

We’ve been providing support for shortterm layoffs, so that companies don’t have to terminate employees, and we’re trying to make new investments to stimulate the economy: there are discounts and fixed rental costs for companies in vulnerable sectors. Just like Georgia and other countries, we’re providing a lot of extra support to small and medium-sized companies through supporting loan guarantees and finding ways to facilitate their access to finance. We’ve also introduced packages to support culture and sport.

In terms of the rising unemployment, we’ve introduced new rules that make it easier to qualify for unemployment benefits; we’ve strengthened the transition opportunities for unemployed citizens so that they can quickly find new jobs; we’ve created more places in higher education and vocational training; and we’ve also tried to create new and green jobs. These are some examples of how our government has been trying to mitigate the crisis.

TELL US ABOUT SWEDEN'S WORK TO DEVELOP A VACCINE. Many Swedish companies are actively engaged in the process of vaccine development, as are those of other countries.

The most optimistic forecasts tell us that maybe by the end of the year or at the beginning of next year there could be a functioning vaccine available, and I guess time will tell.

HOW DO YOU SEE SWEDEN IN 6 MONTHS’/ONE YEAR’S TIME IN TERMS OF RECOVERY?

Image source: teletrader.com

I fully understand and share this positive assessment. I’ve been very impressed by how Georgia has handled this crisis, how the government took active measures, how civil society has responded, how the people of Georgia came together in solidarity and have shown great discipline in following the rules and restrictions. Sweden is supporting Georgia in these efforts, in immediate crisis response, and in the economic recovery.

We have a portfolio of electoral development cooperation together with our partners in Georgia, and made a lot of adjustments to ongoing programs and projects. We have been able to provide support to the NCDC, making it possible for them to introduce online training for thousands of medical staff; with the UNDP, we helped Georgia in further reforming its healthcare sector, all building on Georgia’s positive experience to date. We’ve also added some new support; for instance, we’ve granted quite a substantial amount to the Georgian Red Cross. They, as many front-line responders, are doing a fantastic job.

Of course, we will continue our support to Georgia and its European integration.

As you know, Sweden is one of the major donors to the UN system, and we’ve added additional financing during this crisis. The UN is very active in Georgia, so we continue to support in various ways, as a devoted friend of Georgia.

Our economy is very much dependent on exports, so it is important how events develop in Europe and globally. We will keep taking measures on the national level, but we also need to keep cooperating on the international level and make joint efforts. There are discussions within the EU on an unprecedented support package for the European economy.

This summer, the focus in Sweden will be on domestic tourism. We’re still advising our citizens to refrain from unnecessary travel, and we still have an entry ban in place. It’s not a total ban, but no doubt we’ll have less international tourism this summer than usual.

As for economic recovery, globally, I think we need to build back better as we try to recover our economies, and each country should really use this opportunity to create a more sustainable economy.

As we rebuild, we need to think more about environmental sustainability, about inclusive growth, where no one is left behind: this is an opportunity to rebuild our economies together.

GRETA is about sustainable tourism and organic agriculture in the mountainous regions of Georgia. This is a relatively new project and is being implemented by experts from Austria, with co-funding from Sweden and the EU. I’m very enthusiastic about it. It should help the mountainous regions to develop tourism in a sustainable way, helping businesses there to grow, and creating new jobs and incomes, so it’s a very comprehensive project.

TELL US OF SWEDEN'S WORK TO PROMOTE THE PARTICIPATION OF WOMEN IN POLITICS. Gender equality is, of course, a top priority for Sweden. And this includes a better balance between men and women in politics. The current Georgian parliament has fewer than 15% women MPs, which is very much below European and international goals. In Georgia, the upcoming elections are a great opportunity to further strengthen democracy and gender equality in politics. When countries have a better gender balance in politics, their political culture improves.

We also know that better gender equality in politics results in even better policies in any area. So, it will also be very beneficial for continued reforms in Georgia’s European integration. I’m not just a friend of Georgia: I believe in Georgia and the potential of this remarkable country.

WHAT HAS YOUR BIGGEST TAKE-AWAY BEEN FROM THIS WHOLE PANDEMIC EXPERIENCE? Of course, it’s that we need to keep working together. This is a global pandemic; a global crisis. I don’t think any single country will be able to tackle it alone. We need to work together, to be strong together. And we need to be patient and stay disciplined and not forget the basic measures that we all had to learn when the crisis started: to keep our distance, wash our hands. It’s a joint responsibility, it’s not just about governments, and Georgia has shown this. When everybody engages, we get results, and we need to keep doing that.

6

BUSINESS

GEORGIA TODAY

JUNE 26 - JULY 2, 2020

Agri Review | The Agricultural Sector In 2019

BY SALOME GELASHVILI AND SALOME DEISADZE OF ISET POLICY INSTITUTE

O

n 15 June 2020, the National Statistics Office of Georgia published its annual publication for the agricultural sector - Agriculture of Georgia 2019. The publication shows that agriculture, forestry, and fishing comprised 7.2% of the nominal GDP in 2019, slightly lower than the 7.8% share in 2018, but in line with the general trend over the last five years (on average 7-8% of GDP). In nominal terms, the output of agriculture increased by 4% in 2019 compared to 2018. In real terms agriculture, forestry, and fishing contributed 7.4% to the GDP in 2019, lower than its contribution of 7.9% in 2018. Regarding changes in the output of the sector, the real output declined by 4% in 2019 compared to 2018. Though, the share of income from the sale of agricultural production in the total income of households did not change from 2018; which stood at 5.5% and amounted to a monthly average of 60.3 GEL. The sown areas of winter and spring crops continued to decline, dropping from 207.1 thousand ha in 2018 to 203.0 thousand ha in 2019. The production of vegetables increased by 13% overall, with the biggest changes in production observed in cabbages, tomatoes, and garlic. The production of cabbages, floral cabbages, and broccoli increased by 58%, while the production of tomatoes increased by 21%. On the other hand, garlic production declined by 58%.

Equally, fruit production (including grapes and citruses) declined by 2%.

While total fruit production decreased, that of grapes increased by 13%. There was a significant decline in the production of pome (apples, pears) and stone fruits (plums, cherries, peaches) as well as citruses. However, nuts, subtropical fruits, and berries increased. Overall, plant production in 2019 did not change significantly compared to 2018.

Regarding animal husbandry, the number of sheep and poultry increased, while the number of bovine animals, pigs, goats, and of beehives decreased. The produc-

tion of meat declined by 4%, wool decreased by 5%, while milk and egg production increased by 1% and 4%, respectively. Though, there was no change in honey production. There was, on the whole, no significant change in animal husbandry between 2018 and 2019, either in terms of the amount of livestock or in production.

In terms of self-sufficiency ratios, there was no change for wheat (15%) or milk and milk products (81%). However, selfsufficiency ratios decreased for most agricultural products in 2019 compared to 2018. The biggest reduction was observed with sheep and goat meat, where the self-sufficiency ratio declined from 294% to 158%. The only product that experienced self-sufficiency ratio growth was vegetables; increasing from 59% in 2018 to 62% in 2019 (Figure 1).

PRICE HIGHLIGHTS DOMESTIC PRICES On a monthly basis, the country’s price levels increased between March-May 2020. The Consumer Price Index (CPI) in May 2020 slightly increased, by 0.2%, compared to April 2020. In April, prices increased by 0.9% from March 2020.

While in March, the corresponding month-over-month price increase was 0.7%.

In March and April, prices for food and non-alcoholic beverages, measured by the Food Price Index (FPI), also exhibited an upward trend. In April 2020, food prices increased by 3% compared to March 2019, while the corresponding month-over-month price change in March was 2%. Whereas, in May, food prices stabilized and the monthly inflation was almost 0%.

From an annual perspective, the CPI continued to increase from March-May 2020. In May 2020, the CPI rose by 6.5% compared to May 2019. Within the period, both the CPI and FPI marked their highest level in April, at 6.9% and 16.1%, respectively.

In May 2020, the year-on-year food and non-alcoholic beverage prices increased dramatically, by 14.7%; contributing 4.58 percentage points to the change in the total CPI. The main drivers were price fluctuations in the following sub-groups: fruit and grapes (+47.1%), milk, cheese, and eggs (+24.6%) and fish (+17.1%).

Figure 1. Self-sufficiency ratios for agricultural products in 2018 and 2019

POLICY WATCH

INTERNATIONAL PRICES In March 2020, international prices increased on an annual basis by 2.1%.

However, from April 2020, international prices were lower than last year. In May 2020, the Food Price Index, measured by the Food and Agriculture Organization (FAO), decreased by 6.5%, compared to the corresponding month of the previous year. The main drivers were the decreasing prices of dairy (-19.6%), sugar (-11.6%), and meat (-3.6%). It is also noteworthy that the month-over-month international prices decreased. The downward trend in international prices is associated with the negative economic effects of COVID-19: due to economic hardships, most countries have diminished import demands.

Unlike international prices, the cost of food in Georgia shows an upward trend both month-over-month and annually.

This is largely related to depreciation of the Georgian lari against the US dollar: during March-May 2020, the lari depreciated against the dollar by 15.8% compared to the March-May 2019. As Georgia is a net importer of food commodities, depreciation of the lari has placed upward pressure on food prices. In addition, disruptions in the supply chains, due to the pandemic, led to food shortages that have further increased Georgian food prices. Considering the recent relaxation of the COVID-19 restrictions and the resumption of farming activities, Georgian consumers might expect a decrease

Re|Bank Offers Customers a Renewed Top|Card

L

ast year, Re|Bank offered customers a completely innovative banking product, an installment shopping card called Top|Card. Top|Card is an interest-free installment card, meaning that if a card-holder follows the terms and conditions set by Re|Bank’s partners, the cost of their purchases will be spread equally, interest-free, over a period of months determined by the partner store.

The installment limit of the card is anywhere between 250 and 5,000 GEL. The pre-approved limit can be used indefinitely; a cardholder does not need to have a new installment approved for each new purchase.

Until now, it was possible to use a Top|Card only at Re|Bank’s partner stores. However, Re|Bank customers can now use their cards to shop anywhere, including at local and international online retailers, with up to 45 days of interest-free installments. In addition, customers now have the opportunity to max out their

Although most top product imports increased, cigarettes declined by 34%.

The import of sugar grew dramatically, by 152%, while wheat and poultry meat imports maintained relatively small increases, of 1% and 8%, respectively.

Top|Card limit up to 45-day interest-free period.

“Top|Card is the only free instalment card in Georgia that can be used as a credit card at the same time. In addition to this, current and new cardholders are welcome to enjoy various Re|Bank offers,” said Anano Korkia, Head of Public Relations and Marketing at Re|Bank.

The rebank grace period extends until July 1 2020, at which time cardholders will be obliged to start commission-free repayments on their Top|Card purchases over a 6-month period.

Top|Card comes without issuing and service fees; it was created for those who love to shop.

With a Top|Card, customers can space out their payments, leaving them more money each month for other purposes.

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in prices; fresh, seasonal agricultural products are about to appear on the market, reflecting the increased supply.

TRADE HIGHLIGHTS Year-on-year, from January-May 2020, total Georgian exports decreased by 16% compared to the equivalent period of 2019. The same trend is observable with agricultural exports, which dropped by 4%. As to imports, the total in JanuaryMay 2020 declined by 17%, from 3,580 mln. USD in 2019 to 2,970 mln. USD in 2020. In spite of local currency depreciation, agricultural imports in this period increased by 3%. These further agricultural imports may be a consequence of the COVID-19 pandemic, causing stockpiling of agricultural and food products; in March 2020 the Georgian government announced an additional 16 mln. GEL would be spent on stocks of sugar (5,000 tons), vegetable oil (1,500 thousand liters), and pasta (500 tons) due to the coronavirus outbreak. Moreover, food importers gained import subsidies from the state and such interventions contributed to the increase in agricultural imports.

The top import agricultural products (by value) in January-May 2020 were: • wheat and meslin; • fresh, chilled, or frozen meat and edible poultry offal; • cigars, cheroots, cigarillos, and cigarettes; • sugar and chemically pure sucrose.

The Georgian government attempted to stabilize food prices during the COVID19 outbreak On 28 January, the Inter-Agency Coordination Council was established to take preventive measures against COVID-19.

In the framework of the council, the Ministry of Environmental Protection and Agriculture (MEPA) became responsible for managing food stocks and supervising food logistics and transportation (MEPA, 2020). In March, the government announced that the state would allocate 10 mln. Georgian lari (GEL) from the MEPA budget to subsidize businesses and insure the prices of nine food products: rice, pasta, buckwheat, vegetable oil, sugar, wheat, wheat flour, milk powder, and beans (Legislative Herald of Georgia, 2020). The program implementation dates were: March 15-May 15 and the state subsidized importers’ additional costs due to fluctuations in the exchange rate.

For more information see the following link: https://mepa.gov.ge/Ge/News/ Details/17895 The government presents the Caring for Farmers and Agriculture anti-crisis plan On 12 March 2020 the Georgian government presented an anti-crisis plan, Caring for Farmers and Agriculture. The proposal entails two forms of aid for agricultural producers: direct assistance and sectorial support. The direct assistance includes supporting smallholders with agricultural cards and cheap diesel fuel, nullifying the cost of land reclamation services, and providing agri credit for working capital. The sectorial support includes grants for greenhouses and cooperatives, new bank concessions for agricultural production, changes in the terms of agri-insurance, support to the dairy sector, and producers’ support in adopting international food safety regulations and standards.

For more information see the following link: https://mepa.gov.ge/Ge/Page/ AntiCrisisPlan/

BUSINESS

GEORGIA TODAY JUNE 26 - JULY 2, 2020

7

Termination of Employment during Probationary Period

M

G Law Office, through the contribution of partners Archil Giorgadze and Nicola Mariani, joined by senior associates Ana Kochiashvili, Tamar Jikia, associate Mariam Kalandadze, junior associate Ana Jikia and paralegal Lasha Machavariani is partnering with Georgia Today on a regular section of the paper which will provide updated information regarding significant legal changes and developments in Georgia. In particular, we will highlight significant issues which may impact businesses operating in Georgia.

employer is entitled to terminate the employment at any time and the rules and consequences set out in Article 38 (setting out timing of termination, obligation of the employee to explain the reasons, termination compensations, etc.) are not applicable during the probation unless otherwise agreed by the parties. As mentioned, the above language has been initially interpreted as allowing the employers to terminate employment during probation without any cause at any time. However, the latest case law suggest that the courts of Georgia have taken stricter approach towards employers in this respect.

*** The Labor Code of Georgia (the “Labor Code”) determines that termination of the employment during probationary period is not subjected to the standard termination grounds and consequences applicable to the dismissal of an employee. Above regulation substantially reduces the burden of proof for the employer who, according to the wording of the law, seems at liberty to exercise the power to terminate an employment at any time and without cause during the probation. However, the latest case law of the Georgian courts suggests that the above reading of the law may not be entirely correct and the employers should take into consideration the court developed practice in relation to the termination of employment during probationary period.

STANDARDS UNDER GEORGIAN CASE LAW

LEGAL FRAMEWORK OF PROBATION The Labor Code allows parties to agree on a probation for the maximum period of 6 months. Such agreement shall be in the form of a written contract and represents a limited one-time option, depriving an employer the right to either prolong probation or re-hire an employee on the same position for an additional probationary period. The Labor Code further establishes that the sole purpose of the probation is to enable parties to determine fitness of a person for the work to be performed. Upon expiration of the probation, the employer is entitled to either continue the employment relations with an employee or to terminate them.

During the probation period, the

The case law of the Georgian courts has recently clarified its approach to the cases of termination of employment agreements with employees on probation. As the new case law suggests, the employer’s discretion is not absolute and there is a certain standard to be met, as will be discussed in further details below.

The Supreme Court of Georgia ruled that general grounds for termination of employment does not apply to the cases of probationary period, as the above represents a part of overall protection guarantees provided by the Labor Code only to the employees who have successfully completed their probation or do not have probation period at all. The court noted that placing such a heavy burden of proof would undermine the idea of probation period, which envisages considerable autonomy for the employers.

That being said, the respective case law (especially at the level of the Supreme Court of Georgia) suggests that the sole ground for the termination of an employment on probation is an employee’s unsatisfactory performance and incompatibility. Accordingly, unsubstantiated dismissal of an employee contradicts with the recent case-law and the employers are generally required to prove the above ground of termination. Notably, there is no universal definition of unsatisfactory performance as it is a heavily facts-based issue.

The case law of the Georgian courts varies on the level of scrutiny applicable to the decision to terminate an employee

based on a mistake of fact or of law, or (iii) it overlooked some essential facts, or (iv) it amounted to an abuse of authority, or (v) if mistaken conclusions were drawn from the facts.

SUMMARY AND RECOMMENDATIONS

Image source: indiafilings.com

on probation. Judgment of the Supreme Court of Georgia rendered in 2017 envisaged employer’s obligation to furnish an employee with a detailed reasoning for the termination of employment when the dismissal occurred before the exhaustion of the full probationary period. The court deemed such cases to be exceptional as an employee was not granted adequate time and possibility to present her skills and capacity. However, the recent case law of the Georgian courts has evolved and today it is generally established that only a limited scope of judicial review is available. In that sense, courts will not replace employer’s assessment with its own, as long as the latter is able to present a set of evidence attesting unsatisfactory performance of an employee. Understandably, such evidence varies for each individual case.

Moreover, the Supreme Court of Georgia has determined two exceptions, which entitles the court to broaden its powers of judicial review and to engage proactively, if the claimant alleges that (i) dismissal was based on discriminatory grounds; or (ii) an employee was deliberately deprived of the possibility to demonstrate own skills and performance.

STANDARDS OF INTERNATIONAL LABOR ORGANIZATION Under the standards of the International Labor Organization (ILO) termination of the employment contract during pro-

bation period by either party requires no justification and gives no entitlement to compensation. Therefore, ILO allows member states to exclude probation employees from the following guarantees: (1) protection against unfair dismissal; (2) different valid grounds for dismissal, as compared to the general regime; (3) different notification or severance pay rules; or (4) various combinations of these cases.

However, ILO Tribunal implements more complex approach and obliges an organization which requires a staff member to undergo a probation period to set objectives for such employee so that he is aware of the criteria that will be used to assess his performance. Furthermore, if an employer finds employee’s performance unsatisfactory, it shall inform employee timely and attempt to remedy the situation by warning employee of the risks related to termination.

In accordance with this, the Administrative Tribunal of ILO (dispute resolution body) has set firm line of precedents stating that there is no general principle of law that requires an organization to retain employee if the employer concludes that such employee is unsuitable for the position assigned. Moreover, decision not to continue employment relations falls within discretion of the employer. Therefore, the ILO Tribunal will not interfere with that decision unless (i) it was made without authority, or in breach of procedure, or (ii) it was

The case law of the Georgian courts develops alongside the ILO standards.

The recent practice has given the court an ample opportunity to make important interpretations and set guidelines for the employers. In this sense, the respective employment mechanisms discussed above shall be implemented with great diligence, in light of the object and purpose of the probation, as set out in the Labor Code and employee shall be consulted at all times. Additionally, an employer shall aim to meet the burden of proof to demonstrate lack of qualifications and/or compatibility of the dismissed probationer. It is recommended that the employee is given periodic feedback on her performance during the probation period and the employer duly documents the relevant details. Please note, the termination of employment should be the last resort to be exercised if the parties fail to reach an amicable solution. *** Note: this article does not constitute legal advice. You are responsible for consulting with your own professional legal advisors concerning specific circumstances for your business.

MG Law is the first full-service law firm in Georgia to be founded by international partners. The firm advises a diverse group of Georgian and foreign companies, financial institutions, investment funds, governments and public enterprises.

Among many other areas, the firm primarily focus on the following sectors: Banking & Finance, Capital Markets, Arbitration & Litigation, Labor & Employment, Infrastructure and Project Finance, Energy Law, Real Estate, Tax and Customs, Investment Law, Corporate Law, and Cryptocurrency & Blockchain.

For more information, please visit www.mglaw. ge or contact Archil Giorgadze at archil. giorgadze@mglaw.ge and Nicola Mariani at Nicola.mariani@mglaw.ge

The Age of Decoupling & Smaller States

BY EMIL AVDALIANI

A

nalyses abound claiming that the coronavirus pandemic will benefit China more than the rest of the world, the US in particular.

America is the worst-hit country in terms of human casualties. But the crisis could in fact help the US reorganize its geopolitical thinking toward Beijing, resulting in a radical break in which Washington’s political and economic elites are newly unified against a rising Beijing.

One of the results of America’s “reorganization” of thinking might be an economic decoupling. This would involve cutting off deep economic relations with China. Considering the level of engagement, global ramifications would be massive.

Cutting off the Chinese would be a massive enterprise. Some might even think that a more efficient policy would be to give Beijing some economic elbowroom. Otherwise the country will be forced to create its own economic empire through its massive Belt and Road Ini-

Image source: treasurytoday.com

tiative (BRI), its close partnership with many Eurasian states and through its numerous (future) ports in the IndoPacific region. This would mean a more unstable situation in the world. In fact,

similar was the case before WWII when the US increased economic pressure on Japan and the latter had to break out of the oncoming economic disaster. The result was an increase in Japan’s deci-

siveness to enter into conflict with America over the Pacific.

For the moment, the real question is how far the decoupling could go. For instance, President Donald Trump once threatened that America “…could cut off the whole relationship”. Several days ago, Reuters reported US Treasury Secretary Steven Mnuchin saying that a decoupling of the US and Chinese economies will take place if American companies are not allowed to compete fairly in China’s economy.

That could spell the reemergence of competing blocs. This will unlikely be exactly as during the Cold War, but certain economic spheres might emerge where China and the US would not be able to intrude into each other’s respective zones. This is already evident in the case of the aforementioned BRI. Added to this should be the pursuit of developing competing technologies which will set off future economic transformations.

This has fit neatly into overall geopolitical developments since the 1990s that indicate how most crucial states in Eurasia have been working breakneck to create their spheres of influence. It has been undermining the US, the US-led

bloc, and therefore the entire post-Cold War world order. However, Washington could still rein in Russia’s and Iran’s ambitions, at least partially. But with China’s rise, the level of competition for the US reaches new heights. Now, Washington has fewer tools with which to hamper simultaneously ambitious Russia, China, and Iran, especially when the three are increasingly working in concert by cooperating through the United Nations platforms, militarily and economically.

Small nations are most vulnerable if even a partial decoupling takes place.

They are likely be forced to choose. In the Cold War, some states could resist the appeal of the US and Soviet Union by staying relatively neutral. Nowadays, it will be extremely difficult, as both China and the US pursue economic expansion, and few if any states would be able to resist being pulled into one or another economic bloc. This should remind Georgia of its vulnerabilities and the need to increase maneuverability in an increasingly subdivided Eurasia. All will depend on how far the US is able to pursue its interests in the Black Sea region and the South Caucasus.

8

BUSINESS

GEORGIA TODAY

JUNE 26 - JULY 2, 2020

Foreign Direct Investments in Georgia

D

ue to the COVID-19 pandemic, global FDI is expected to fall by 30-40% in 2020 (UNCTAD), while the decrease in Georgia is forecast at 19% (IMF) • Net FDI inflows have been decreasing in Georgia since 2017, based on both, yearly and Q1 data.

• Net FDI inflows in Georgia experience volatility over time, due to large one-off investment projects.

• Georgia has been leading among EaP countries in terms of the share of FDI in GDP in 2017 and 2018.

• Net FDI inflows decreased by 41.7% in Q1 of 2020, compared to Q1 in 2019, mainly due to COVID-19 pandemic The COVID-19 pandemic and the subsequent Great Lockdown has affected investment flows all over the globe, especially in emerging markets. As of April 9, portfolio outflows from developing countries amounted $100 billion, which is 3 times higher than the corresponding figure during the Great Recession in 20081. Deteriorating investor confidence will alter the global Foreign Direct Investment (FDI) flows as well.

United Nations Conference on Trade and Development (UNCTAD) estimates global FDI flows to shrink by 30-40%% in 20202, reaching the lowest level of the past two decades. As for Georgia, International Monetary Fund (IMF) forecasts a 19% decrease in FDI flows in Georgia3. In order to assess the impact of the crisis on the FDI flows in Georgia in the future, it is crucial to have a snapshot of pre-crisis situation.

Over the past decade, Net FDI inflows4 in Georgia experienced growth compared to the previous year in only 4 years out of 10. These years were 2010 (30% growth), 2011 (31% growth), 2014 (77% growth) and 2017 (19% growth)5.

The relatively higher figures between 2014 and 2017 can be explained by large investments in Tbilisi-Supsa pipeline (by BP) and in Baku-Tbilisi-Kars railway project. Thus, Georgian Net FDI inflows remain relatively sensitive to large individual projects.

The above-mentioned volatility of FDI is even more evident when it is decomposed in terms of partner countries. The period of 2016-2019 saw significant tendencies in Net FDI Inflows from biggest partners of Georgia during these years.

Azerbaijan was the biggest partner in 2016 out of 5 countries, but the amount of FDI inflows to Georgia decreased drastically (-93%) in 2019 compared to 2016. It was mainly due to the completion of Baku-Tbilisi-Kars railway project in 2017.

Net FDI inflows from Turkey have experienced a fall by 81% in 2018, which was mainly due to acquisition of Geocell

by Silknet. Compared to 2017, however, it recorded a massive growth by 377% in 2019.

Net FDI inflows from Netherlands recorded the highest growth of 358% in 2017. Moreover, in 2017 Net FDI Inflow from the United Kingdom increased by 190% compared to 2016, while FDI Inflows from the United States recorded a growth by 34%.

The decomposition of Net FDI inflows by sectors revealed that the ranking and composition of the sectors in terms of largest Net FDI Inflows is slightly different when aggregate numbers of the period 2016-2019 are compared to the figures of 2019.

The analysis of Net FDI inflows by sectors over the period of 2016-2019 shows that the most FDI over this period was directed to the transports (21.6%), followed by financial sector (15.7%) and energy sector (12%).

In 2019, the financial sector was leading in terms of share in Net FDI inflows (20.6%), followed by energy sector (15.3%) and hotel and restaurants sector (12.4%).

The comparison of Net FDI inflows in 2019 to the average Net FDI inflows of the three year period of 2016-2018 reveals that the highest growing major sector in 2019 was hotels and restaurants (55% growth), followed by communications (42% growth) and mining (26% growth).

The sector which declined the most in 2019, compared to the average of 2016-

2018, was real estate (124% decline), followed by transports (83% decline) and construction (32% decline).

The analysis of top three sectors of Net FDI inflows during the period of 20162019 again underlines the volatility of FDI flows in Georgia.

The analysis reveals a strong downward sloping trend for transports sector, with its share in total Net FDI inflows decreasing from 34.9% in 2016 to 5.6% in 2019.

Conversely, there has been a strong upward sloping trend for financial sector over the period, as its share in total Net FDI inflows nearly tripled from 7.5% in 2016 to 20.6% in 2019.

As for the energy sector, it has also shown an upward-sloping trend over the period, however, it was less pronounced than that of financial sector. Its share in total Net FDI inflows nearly doubled from 8.8% in 2016 to 15.3% in 2019.

It is worth noting that, based on World Bank database, Georgia is characterized with the highest figures of Net FDI inflows as a percentage of GDP amongst EaP countries since 2016. Georgia reached its peak of 11.7% in 2017, but decreased to 6.9% in 2018.

Azerbaijan had the highest share of Net FDI inflows in GDP of 11.9% in 2016, but it decreased significantly to 3% in 2018.

Moldova experienced an increase of share of Net FDI inflows in GDP from 1% in 2016 to 2.7% in 2018.

Armenia’s share gradually decreased from 3.2% in 2016 to 2% in 2018, while Ukraine followed the similar pattern and its share decreased from 3.7% to 1.9%.

Net FDI inflows in Belarus were not characterised with significant fluctuations and its share in GDP slightly decreased from 2.6% in 2016 to 2.4% in 2018.

Net FDI Inflows in Georgia decreased by 41.7% in Q1 of 2020, compared to Q1 in 2019, while compared to its peak in Q1 of 2017, Net FDI inflows decreased by 59.8% in Q1 of 2020.

The average growth rate of Net FDI inflows in Q1 over past decade amounted 2.1%. The growth rate has been negative and expressed in double figures since 2018.

A vast majority (81.6%) of Net FDI inflows in Q1 were reinvestments of earnings, while only 13.7% were equity investments.

As the main consequences of the crisis will be realised in Q2, even gloomier figures of Net FDI inflows are expected.

Thus, a strong rebound is needed in Q3, a quarter which on average accounts for the most Net FDI inflows (31%), in order to end the year with the estimates of IMF (-19%).

The significance of FDI flows for the

development of the country is indisputable. When the crisis ends, investors will be looking to direct their funds to lucrative investment options, thus, it is of paramount importance that Georgia positions itself as an attractive market.

https://www.imf.org/en/News/Articles/2020/04/07/sp040920-SMs2020Curtain-Raiser 2 https://unctad.org/en/PublicationsLibrary/wir2020_en.pdf 3 https://static1.squarespace.com/ static/5548d1b5e4b0680763eeeb53/t/5ecc04bd29db2e1e76 cf1635/1590428863594/GEO__AGBC+Annual+Conference_May+2020.pdf 4 Net FDI inflows are the value of inward direct investment made by non-resident investors in the reporting economy, including reinvested earnings and intra-company loans, net of repatriation of capital and repayment of loans (UN definition).

5 The source of data on which the subsequent analysis and graphs are based on is National Statistics Office of Georgia, unless stated otherwise.

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SOCIETY

GEORGIA TODAY JUNE 26 - JULY 2, 2020

9

Omalohhhhh – Tusheti, Part 1 BLOG BY TONY HANMER

W

hat?! You’ve never been to Tusheti in all your two Georgian decades?! Unforgivable, Tony, simply unforgivable! We must correct this error immediately! - said my wife’s and my friend of many years. She then began organizing our trip. The two ladies came up with a list of invitees; one possible driver and guide was called and rejected.

The second one proved to be exactly whom we needed.

Dato Urushadze (contact details below) drives tours all over Georgia, but concentrates on Tusheti, Khevsureti, Svaneti (including winter) and Racha. He has a Delica van which can take 6 or 7 passengers, and can summon more such and their drivers for larger groups. His mother tongue is Georgian, but he can also manage groups who converse in English or Russian. His tours can be personalized. Ours came with tents, sleeping bags, mattresses, a gas stove, and all his calm expertise on some pretty “exciting” roads. We paid 120 GEL each for the 3 days and 2 nights, and fed ourselves and him too. By the end of it, we were firm friends.

Dato met us at 4 am at the huge bicycle sculpture near Rustaveli Metro station.

We would need about 8 hours to reach our first stop, which was the village of Omalo in Tusheti.

Now, Tusheti did prompt some feelings that I had “done this before,” comparisons with certain parts of the Svaneti I know so well, like sections of the MestiaUshguli road (before any of it was

cemented). But there was much more that was unique than what was similar.

The sheer hugeness of the landscapes we drove through, stopping literally wherever I needed another photo, is not something you find so easily on Svan roads; although I have less experience off-road than I would like in Svaneti, I must admit. Tusheti’s 72 km to reach Omalo is, more than anything else, magnificently and gorgeously VAST. The province is also only open about half the year, like its neighbor to the east, Khevsureti. Snow closes it from October to May sometimes, and both regions are almost completely empty then, their citizens living double lives. Tusheti also has virtually no electricity; what it does get comes from small roof-mounted solar panels, plus a bit from generators (which need fuel, though) and some small hydroelectric projects. Cell phone coverage is also sparse, so, best to take charging stations with you, or if, like me, you also have a fold-out solar charger, that will be most useful.

Snow was still melting from the hundreds of avalanche points along our journey. Roadside markers showed who had died on the road, unfortunately a too frequent occurrence. But Dato has been doing this for eight years, and we really were in good hands.

Omalo, like most of Tusheti, has great wide-open spaces around it, and a new as well as an ancient hilltop part. The latter has a number of watchtowers in the unique local style, of dark brown slate in many layers an inch or three thick, often beautifully colored bright orange by the thin lichen which loves them. The new village is well populated with guest houses and hotels: all running without power except what their rooftop panels can provide! Keep your requests

for volts to a minimum; better, to zero.

From Omalo, we drove on to our camping spot, Dato’s favorite place, at Mirgvela, not far away. Some of us helped him set up the tents on grass near some evergreens; others worked on supper and a fire, which is a must when camping, regardless of the weather. (It had tried to rain off and on a bit, more than forecasts suggested, but not enough to dampen even our spirits.) There was a plastic tap nearby for water, and several large bins for rubbish too, as we were in

a Protected Area of Georgia. The sky darkened towards 9 pm; mosquitos were very rare; even the frogs were singing much more than croaking, and at a low enough volume not to disturb anyone’s sleep. No dogs, no roosters, just blessed peace and quiet for our three tents and Dato in the van. Good night. Tomorrow, a 6 am start for a full day! More to come. https://www.facebook.com/dato.urushadze1 Tel. +995 555 360750 (if you’re not speaking Georgian, best to message him in English or Russian; you can also

find him on Viber or WhatsApp at the same number) 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

Georgia Praised at the 43rd session of Human Rights Council

How to Achieve Sustainability of Creative Enterprise Education in Georgia

T

he Online Roadmap Meetings held as part of the British Council's ‘Creative Spark: Higher Education Enterprise Program’ on 16,17 and 18 June were important because we, the British Council, and members of the Georgia-UK partnerships, wanted to once again demonstrate our support for the development of enterprise education ecosystem in Georgia, - says Maya Darchia, Arts Manager at British Council, Georgia.

Key outcomes of last week’s meeting were the identification of needs, challenges and recommendations for institutional/country level change to support enterprise education and entrepreneurship development, and the building of a country community/network with all partners, key stakeholders and project champions.

A presentation of the Georgia Entrepreneurial Education Alliance (GEEA) Declaration was made during the meeting, with the participation of Levan Kharatishvili, Deputy Minister of Education Science, Culture and Sport of Georgia; Irma Ratiani, Director Creative Georgia; organizations involved in education reform, economic development and

capacity building; Creative Spark UK and Georgia partnerships representatives; enterprise representatives; leading opinion makers in the area; and Creative Spark Y1 and Y2 applicants

CREATIVE SPARK: HIGHER EDUCATION ENTERPRISE PROGRAMME Creative Spark is a five-year initiative to support international university and institutional partnerships to develop enterprise skills and creative economy across seven countries in Central Asia (Kazakhstan, Uzbekistan, Kyrgyzstan), South Caucasus (Azerbaijan, Armenia, Georgia) and Ukraine through UK support.

In order to support higher education reform and respond to unemployment rates in these seven countries, Georgia is to use the UK’s experience to help develop enterprise education, supporting over 10,000 students and young entrepreneurs in the first year of the program.

The program has three key elements: 1. Development of partnerships between universities and creative institutions in the UK and those in program countries

in order to support enterprise education and establish enterprise centers; 2. Delivering enterprise skills training packages to students and creative entrepreneurs, ranging from pitching ideas and starting a business, to protecting intellectual property and securing credit lines.

3. Delivering an English learning program with a range of digital learning content including learning platforms, online courses and Massive Open Online Courses (MOOCs) focused on English for entrepreneurship.

“At the meeting, the partnership members officially announced the establishment of the Georgia Enterprise Education Alliance (GEEA), whose mission it is to create an entrepreneurial ecosystem across the whole of Georgia that is recognized internationally as best practice, and supports young people, students and citizens to develop entrepreneurial skills to enhance their careers in employment and/or as entrepreneurs,” Darchia notes. “The GEEA will bring together public and private sectors, education, industry, policymakers and Government to share best practice, inspire and encourage collaborative working and influence and shape policy.”

S

ympathetic testimonials were made towards Georgia by the country’s friends and allies, including the European Union, Bulgaria, Ukraine, Finland, Estonia, Lithuania, Latvia, France, Great Britain and Greece at the 43rd Session of Human Rights Council in Geneva.

The Georgian Foreign Ministry (MFA) stated the delegations acknowledged Georgia’s close collaboration with the Office of the United Nations High Commissioner for Human Rights as well as the improvements made in the country in the diplomatic area.

The MFA stated that the aforementioned nations conveyed serious concerns over the ‘dreadful humanitarian and human rights situation in Abkhazia and

the Tskhinvali regions of Georgia’ in the midst of the coronavirus pandemic. To be precise, the deputations denounced the continuation of the ‘borderization’ process, which entails the erection of wire and artificial barricades along the occupation line.

Attention was also brought to the constraints enforced on ‘freedom of movement amid the pandemic’ including some grim instances where the occupational regime rejected an emergency medical evacuation of citizens.

As the MFA’s issued statement reads, the spokesmen called on the Russian Federation to abide by the international law and to further provide unconditional access to the human rights bodies in occupied regions of Georgia.

10

CULTURE

GEORGIA TODAY

JUNE 26 - JULY 2, 2020

‘Georgia Rediscovered’ - Exploring Authentic Georgia through Gastronomy & Crafts

The Tsnuli Weavers. Photo by Kakha Gogichashvili

BY KATIE RUTH DAVIES

A

s a response to the COVID19 impact on the tourism sector, the Georgian Tourism Industry Alliance has launched the campaign ‘Georgia Rediscovered,’ which aims to support domestic tourism by encouraging local visitors to rediscover the marvels of their own country. The initiative is an awareness-raising campaign which highlights the authentic and lesser-known aspects of Georgian culture, gastronomy and crafts.

As a starting point of the campaign, a tour to Shida Kartli, the historical heartland of Georgia, was held on June 15.

GEORGIA TODAY went along to see a snippet of what this beautiful region has to offer.

ART VILLA GARIKULA (OTAR VEPKHVADZE CERAMIC WORKSHOP) The drive past Mtskheta and into the valley in which Kaspi lies is awash with flowers and the varied colors of the earth.

It is a true breath of fresh air after the weeks of lock-down, and a perfectly inspiring escape from city life.

Our first stop is the village of Garikula, which houses the up-and-coming Art Villa Garikula, run by graphic designer Ia Gigoshvili, and her ceramicist-designer husband Otar Vepkhvadze.

Garikula village is home to some 4000 people. In Ia’s childhood, it was known as an artists’ settlement, particularly for ceramicists, and there were no less than five functioning kilns. Today, only Art Villa Garikula’s wood-fire kiln remains.

The happy, friendly and multi-lingual couple started building the house 11 years ago, and while it is still a work in progress, it has everything, comfort and aestheticswise, to accommodate visitors, offering a modern-rustic and light style that instantly wipes away the stresses and strains of daily life. Indeed, it has already hosted two symposiums from Holland and Russia, and once served as an archi-

tects’ residence which challenged the professionals to create works in a new medium: ceramics.

Ia and Otar live there in spring and summer, taking up residence in their small house and studio 500 m further up the hill on the grounds of a stark white modern home designed for guests with a large open living-room ideal for exhibitions, such as the one that was there when we arrived.

Future plans include offering camping, training for youth- particularly those with disabilities, such as autism, and continuing to provide an inspiring and relaxing place to escape and create.

THE TSNULI WEAVERS On the edge of Kaspi town, tucked behind a rough-edged block of flats, is a haven of creation: the Tsnuli weaving workshop.

Having started out as a son and wheelchair-bound father making baskets in their living-room, it now boasts five permanent and 20 part-time weavers who create up to 40 different products- everything from flax plates and flower pots, to elaborate furniture and ornaments.

Their latest innovation is an exquisite and surprisingly light-weight flax and leather ladies’ shoulder bag, which they plan to export to Europe and sell at around EUR 700, foreseeing high demand particularly from the US and Scandinavia.

Last year, owner Dato and his father opened a large workshop with machines that sped up the weaving process from days to hours.

What makes this whole enterprise so special is that it employs firstly other wheelchair-bound gentlemen, and also disadvantaged men and those who have fallen on the wrong side of the law. It gives them hope, a purpose, and a way of escaping the limits of social benefits.

Future plans include teaming up with the new Kaspi Vocational College to share the age-old knowledge of weaving with future generations, and thereafter perhaps countrywide.

NIKA VACHEISHVILI'S MARANI & WINE GUEST HOUSE Heading away from the valley and into

Art Villa Garikula - Ia Gigoshvili/GT

the winding mountain roads of Ateni, with a dip of the road and into the river (4x4s only, otherwise park-up and cross on foot), we were introduced to the paradise of Nika’s two guesthouses of over 19 rooms, set in a mountain gorge of slate and vineyards. The slate is key to the taste of the nine wine varieties, both red and white, that the family makes. Fermented in plastic barrels, and replete with iron and minerals, wine here fills 5000 bottles per year. Atenuri wine is well-known and highly recommended, and even has its own polyphonic song. Nika and his family also make their own cows and goats’ cheese, honey and dried fruits.

The guesthouse offers dining and winetasting, and has plenty of play-space and play equipment for younger guests to join in with the family’s children. In the vicinity are a number of easy and moderate marked trails into the mountains. Some 40km further along the track is the Borjomi-Karagauli national forest park. The small escape-from-civilization is already popular with visitors from the US, Australia and Germany.

Future plans include offering horseriding and making their own ice-cream.

CHÂTEAU ATENI Close to Kaspi town, this family home offers a wine cellar and store where you can taste wines of the Chinuri, Goruli Mtsvane and Takveri grape variety, grown on a one-hectare vineyard just 400m from the house; producing enough wine for 5000 bottles a year. Half of this serves the local market, while the other half is sent to the US. On our visit, Château Ateni owners Soso Vanishvili and his wife presented their sparkling ‘Atenuri Tshriala Elizabeti’, which had been fermented first in a tank, then for a second time in the bottle. It was served with syrup made from their garden roses- a fragrant juice that set off the sparkling wine in a way that even strawberries would pale in comparison to. We also enjoyed cherries from their trees and were given a masterclass in simple local hot dishes, which we then got to enjoy while seated in their large outdoor covered area, the blooming garden around us.

‘WINE ARTISANS’ ANDRO BARNOVI Out into the wilds again, into a valley with ruins of ancient fortresses on the hills above, and we came to Wine Artisans. The gate spoke volumes of the friendly and laid-back reception we could expect: with a sign reading “Caution!

Drunk People!”

The traditional house hides a treasure in the back garden- a shallow wine cellar cut out of the basement, with tradition clay Qvevri in the ground, where Andro’s 8-9 varieties of wine (red, whites, and roses) are kept for nine months, and then, at 6 meters’ depth, the much cooler storage area for keeping the wine another year before bottling.

The landscaped garden and stone path

Giorgi Tatulashvili. Photo

by Kakha Gogichashvili

Nika Vacheishvili's Marani & Wine Guest House. Photo by Kakha Gogichashvili

led us to a beautiful, rustic, wooden outdoor dining area, where we were offered fruit, nuts and local bread to soak up the three wines were got to try, as the owner jovially regaled us with the stories of their creation. Inspired by his family tradition of winemaking, Andro set up this business just four years ago, and regularly entertains local and foreign guests, as well as selling his bottles at an ambitious price to those who value the taste of his labors. A standard wine tasting will set you back a mere 30 GEL (10 EURO), making the drive well-worth it on a weekend escape or regional exploration!

THE GIORGI TATULASHVILI MUSEUM-WORKSHOP Back to civilization, we head to Gori next, to the Giorgi Tatulashvili MuseumWorkshop, entered through a small courtyard and rose garden, with a feast of ceramics art for the eyes. In the cellar beneath the family home is the yellow brick kiln the original ceramicist built in the 19th century- now only used for display and nostalgia. That ceramicist was Nestor Tatulashvili, grandfather of the current owner, Givi, and a Master Craftsman and Member of the Guild of Ceramics Makers. Gori, like Garikula, was also once a center of clay-works, but this too faded, and now Gori has just this one studio, which Givi keeps running with his young apprentices and income from the sales of all their products. They also see some income from visitors to their small museum, which describes the 100+ year history of the studio and puts on display photographs and objects pertaining to local history and the progress of ceramics there.

Givi learned the craft from his father and brother Omar, who took on the business after graduating secondary school.

Givi is happy to share his skills, giving

visitors a go at the wheel, with soft brown Gori or Metekhi clay, for a small fee of 20 GEL. He also works with local children.

The studio focuses on extraordinary wine-serving/drinking vessels, as well as more traditional tableware- something for everyone in search of a unique Georgian souvenir.

SHIN DA GORI Our tour was brought to a close by a delicious dinner at Shin da Gori, a restaurant tucked into a Gori courtyard, which offers a delightful smooth-voiced soloist singer accompanied by a very talented pianist.

There, we saw the makings of the local sweet eye-shaped nazuki bread, and the cheese and beetroot-leaf khachapuri.

Professional staff, an open kitchen and optional in or outdoor dining put this restaurant high on our list of recommendations.

During the tour, we were introduced to the Shida Kartli Crafts Workshop Guidebook, offering a focus on the arts and crafts employing those in the region, and those artists who welcome visitors and buyers to their workshops. Also available is the same guidebook to Samegrelo, Samtskhe-Javakheti and Akhmeta.

As you can see from the short list touching on the Shida Kartli region, many treasures await just an hour or so outside of Tbilisi: weekend stays, winetastings and gift-buying, all of which go towards supporting the local community and keeping alive some of the most beautiful crafts Georgia has to offer. Go explore!

The tour was partially funded by the US Embassy in Georgia and the USAID Zrda project, in the framework of the Georgian heritage Crafts Association’s project ‘Enhance Artisans/Crafts-makers’ Business Skills in the Shida Kartli Region.’

‘Wine Artisans’ - Andro Barnovi/GT

Château Ateni - Soso Vanishvili. Photo by Kakha Gogichashvili

CULTURE

GEORGIA TODAY JUNE 26 - JULY 2, 2020

11

“Corona Days” Artworks of Young Georgian Artists: Mariam Rukhadze ing about this gives me a weird feeling.

How can we be so far apart and yet so united against one thing?” Mariam wonders, echoing the wonder of many of us. “It’s as if we were standing in complete darkness with tiny lights in hand, and what makes us feel that we are not completely alone is seeing those lights.

I believe this is the start of new inspirations, the start of understanding the word ‘human’ correctly, and the chance to get closer to ourselves,” Mariam tells us.

“No matter how hard you try to isolate yourself from people, and everyday life, ultimately, our thoughts, emotions, even pains are caused by the epoch in which we live. I believe that honesty is the most important thing in painting: it is the premise of an artist to deliver what they have to say to the public,” explains the young artist.

These last words of Mariam’s reminded me of the last words of Fitzgerald’s in The Great Gatsby: “so we beat on, boats against the current, borne back ceaselessly into the past.” I think what Mariam said could contribute to its reformation of the art world.

BY NINI DAKHUNDARIDZE

I

n collaboration with BI Auction, for the past 10 weeks, GEORGIA TODAY has presented young artists taking part in the online exhibition ‘Artworks @Corona Days.’ This week, in our final interview of the project, we spoke to Mariam Rukhadze, a devoted artist who, as she says, can’t remember the world in which she did not paint.

“Mariam Rukhadze was my inspiration for organizing the ‘Young Artists Competition,’ which also resulted in that 10-week project ‘Artworks@Corona Days’ in collaboration with GEORGIA TODAY,” says Bengü Akcardak, BI Auction co-founder and the organizer of this project.

“She created these artworks a long time ago, but her works always represent her sensitivity towards the problems that humanity faces. She is now at another stage of ‘creativity,’ which means ‘life and hope’ for the future, so we will wrap up this outstanding project with her works. With this project, I hope GEORGIA TODAY’s readers also enjoyed discovering the 12 young artists, their feelings and artworks, and I hope they have also ‘Healed with Art’ as we did! Now it is time to end ‘Corona days’ and restart other projects in upcoming sunny and healthy days,” Bengü tells us.

Deeply connected to her creative side since early childhood, Mariam did not have to think twice about her future profession. What started out as childdoodling with colored pencils turned into Mariam’s way of exploring and expressing the world and herself. She got both her BA and MA from Tbilisi State Academy of Arts, in the direction of Fine Arts, and even got to be an assistant to her professor and teach freshmen in the same school, an experience she deems one of the most important

in her life.

“It is a great feeling to feel ready to teach others and learn from them, sharing knowledge,” she says.

Mariam feels the coronavirus pandemic “brought the list of human demands to a minimum.” At first, she found it hard to work, but then her creative nature helped her reflect on the new realities of An Isolated New World, not as utopiadystopian as A Brave New World, but just as terrorizing to experience.

Mariam’s views on the future of the New Art World seem realistic. She notes that it is exactly the online exhibitions

during these unprecedented times that may possess the ability to save an artist’s name from the doom of being forgotten.

“Without ongoing contact and activity, an artist can get forgotten over time.

Three dimensional projects and exhibitions have been cancelled due to the pandemic, and so it has become very important for artists to stay active though distant from the public, online,” Mariam explains, going on to note it will take a lot of materialistic and time resources to get the art space working again and have the demand for art rise.

Mariam’s artworks presented in the Art@Corona Days online exhibition have proven to be somewhat prophetic: they were done before any pandemic threatened the world and it’s a little bit uncanny how the paintings represent the present day.

“Back when I was creating these pieces, I didn’t know what the world was getting ready for us; I didn’t know that the future held physical distances and shared fear. These are not the feelings of one person, nor the worry and concern of one country: it is a problem and misfortune for every person globally. Think-

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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