Issue #1257

Issue no: 1257

• JULY 31 - AUGUST 6, 2020 • PUBLISHED WEEKLY

FOCUS ON YORK TOWERS

For the harmonious development of your family

PAGE 7

PRICE: GEL 2.50

In this week’s issue...

CENN to Support East Point’s Green Initiatives NEWS PAGE 3

The News-Fakeism in Our Life POLITICS PAGE 4

The Balance of Strength in the Black Sea Region & Georgia’s Current Challenges. Part I POLITICS PAGE 6

Construction Company Dagi – A Story that Began 20 Years Ago BUSINESS PAGE 8

Carrefour: The Crisis Management Strategy Amid a Global Pandemic

47% of Coronavirus Cases in Georgia Imported from Russia

BY NINI DAKHUNDARIDZE

Tbilisi Hills Golf & Residences Marketing Director On Bringing Golf Culture to Georgia BUSINESS PAGE 9

The Wilds of Tusheti – A Week with the Shepherds

T

he National Center for Disease Control and Public Health published a report on Tuesday according to which the largest number of COVID cases in Georgia had been imported from Russia as of July 11.

The report gives specific numbers: out of 980 coronavirus cases, 272 were imported, which makes up 27.7% of the total cases. 46.7% (127 cases) of these 272 cases came from Russia, 8.4% (23) came from Turkey, 8% (22) came from Azerbaijan and 7.7% (21) came from Armenia.

Six new cases of COVID-19 were registered in Georgia Wednesday-Thursday this week, bringing the total number of cases to 1160, the government-run website stopcov.ge reported.

A total of 937 patients have recovered from coronavirus; 17 have died. 6489 persons are under a 14-day mandatory quarantine and 337 are under observation in hospitals.

Most of the newly registered cases are con-

BUSINESS PAGE 8

SOCIETY PAGE 11 Prepared for Georgia Today Business by

Markets As of 27ͲJulͲ2020

STOCKS

BONDS

Price

w/w

m/m

Ͳ24,7%

GEOROG 04/21

101.37 (YTM 4.83%)

+0,0%

+1,6%

Ͳ6,3%

Ͳ19,6%

GEORG 04/21

102.51 (YTM 3.22%)

+0,1%

+0,2%

GHG (GHG LN)

GBP 0.69

Ͳ20,5%

Ͳ23,3%

GRAIL 07/22

103.17 (YTM 6.00%)

+0,7%

+1,2%

TBC Bank Group (TBCG LN)

GBP 7.50

Ͳ2,6%

Ͳ16,0%

GEBGG 07/23

101.15 (YTM 5.58%)

+0,5%

+1,5%

CURRENCIES

COMMODITIES

Price

w/w

m/m

Price

w/w

m/m

43,41

+0,3%

+5,8%

GEL / USD

3,0836

+0,3%

+0,9%

1 942,24

+6,8%

+9,7%

GEL / EUR

3,6239

+3,0%

+5,7%

GEL / GBP

3,9722

+2,1%

+5,4%

INDICES

Price

w/w

m/m

GEL / CHF

3,3520

+5,6%

+3,9%

FTSE 100

6 104,88

Ͳ2,5%

Ͳ0,9%

GEL / RUB

0,0431

Ͳ

Ͳ1,6%

FTSE 250

17 157,94

Ͳ1,3%

+0,3%

GEL / TRY

0,4492

+0,2%

+0,8%

DAX

12 838,66

Ͳ1,6%

+6,2%

GEL / AZN

1,8139

+0,3%

+0,9%

DOW JONES

26 584,77

Ͳ0,4%

+6,3%

0,0064

Ͳ

Ͳ

NASDAQ

10 536,27

Ͳ2,1%

+8,0%

GEL / UAH

0,1116

+0,1%

Ͳ2,5%

150,53

+2,8%

+2,1%

EUR / USD

0,8509

Ͳ2,6%

Ͳ4,5%

1 073,14

GBP / USD

MSCI EM EE

ity remains under lockdown; the government is carrying out monitoring of all open markets in Georgia to curb the spread of the virus.

m/m

Ͳ7,0%

GBP 3.70

Gold Spot (US$/OZ)

nected with the Gardabani municipality of eastern Georgia and the Lilo open market in Tbilisi.

The Karajalari village of Gardabani municipal-

w/w

GBP 8.00

Crude Oil, Brent (US$/bbl)

Elvis Barukcic/AFP via Getty Images

Price

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

MSCI EM

GEL / AMD

Ͳ1,7%

Ͳ4,2%

+0,8%

+7,4%

SP 500

3 239,41

Ͳ0,4%

+7,7%

CHF / USD

0,9199

Ͳ2,0%

Ͳ2,9%

MSCI FM

2 120,06

Ͳ1,0%

Ͳ0,6%

RUB / USD

71,6083

+0,4%

+2,6%

GT Index (GEL)

1 582,68

Ͳ

Ͳ

TRY / USD

6,8700

+0,2%

+0,1%

GT Index (USD)

1 208,13

Ͳ

Ͳ

AZN / USD

1,7000

Ͳ

Ͳ

0,7763

2

NEWS

GEORGIA TODAY

JULY 31 - AUGUST 6, 2020

Georgian PM Speaks with US Secretary of State, Mike Pompeo

BY BEKA ALEXISHVILI

Ken Walker University Clinic for Medical Rehabilitation Opens in Tbilisi

BY ANA DUMBADZE

T

he Ken Walker University Clinic for Medical Rehabilitation has been opened in Tbilisi, at Gudamakari St., 4.

The clinic has another branch in Batumi, the capital of Georgia's Adjara region, at Baku St., 8.

Prime Minister Giorgi Gakharia, Chairman of Parliament Archil Talakvadze and US Ambassador to Georgia Kelly Degnan attended the opening ceremony.

The Ken Volker University Clinic is equipped with American and European high-technology medical facilities and provides multi-discipline rehabilitation services.

The clinic will simultaneously serve up to 200 children and 250 adults.

At the same time, due to the growing interest in the Ken Walker Clinic from the neighboring countries, additional funds will flow into the Georgian econ-

omy that will contribute to the development of medical tourism in Georgia.

"The Medical Rehabilitation Center for 200 children and 250 adults in Georgia, together with the infrastructure of the University Clinic, is a joint achievement," said Giorgi Gakharia, the Prime Minister of Georgia.

"I want to thank our international partners, the US government, for their support. Of course, this would not have been possible without systematic cooperation.

Competence from the US Emory University, support from the Georgian business community, and support from the Tbilisi Medical University played a big role. All this has given us the result we have. This medical center will be fully focused on the functional independence of people with disabilities, and there is no greater goal than this to make people with disabilities worthy partners in our daily lives. This is the goal of both the state and each of our citizens. We must do everything to make this medicalrehabilitation center successful," the head of government said.

G

eorgian Prime Minister Giorgi Gakharia spoke with the US Secretary of State Mike Pompeo over the phone about the strategic partnership between the two countries.

The discussion, which was held over the phone because of the COVID-19 pandemic, was still oriented towards a face-to-face meeting which is to be held by the end of the year.

The two sides conferred on the global pandemic and the steps that can be taken to prevent the further spread of the virus, as well as to strengthen and deepen the dynamics of the strategic partnership between the two countries.

Pompeo complimented the Georgian authorities on the handling of the virus, and the effective steps taken to prevent further casualties and spread. The Georgian PM on his side thanked the United States for numerous initiatives over the years aimed at assisting Georgia, in particular underlining and thanking Pompeo for his personal support for Georgia and its democratic development, as well as for supporting its security and territorial integrity. The PM also invited the Secretary of State for an official visit to Tbilisi.

One of the main topics of discussion between the two sides was the matter of security. The talks also engaged the

most prolific problem for Georgia, which is occupation and the situation in the occupied territories. The PM gave detailed information to the Secretary regarding the harsh and aggressive tactics used by the Russians when capturing and imprisoning ethnic Georgian citizens. The two sides also discussed security in the region and examined what could be done to improve the overall situation. The US Secretary of State once again reaffirmed that Washington supports Georgia’s territorial integrity and sovereignty.

The conversation also touched on Georgia’s Euro-Atlantic aspirations. One of the main topics here was Black Sea Security, which plays a monumental role in the security of the Euro-Atlantic alliance. The PM affirmed that Georgia remains a trustworthy partner for NATO, the US, and the EU in the Black Sea region.

The dialogue between the two country representatives also comprised of deepening economic ties between the two

countries, such as by gathering American investments in Georgia and broadening the free trade agreements.

One of the most prominent topics which was debated in the conversation was the Constitutional Amendments ratified by the Georgian Parliament regarding the electoral process. The PM assured Pompeo that these changes would enhance Georgia’s democratic development and that it would bring further pluralism in the Georgian Parliament.

The Prime Minister also praised US Ambassador Kelly Degnan and her engagement in the internal processes of the country.

The conversation between the two was concluded with the agreement that the election process in Georgia will be held transparently, in a free and just environment, these requirements and their fulfillments being a guarantor for the country’s approach to democratic development and Euro-Atlantic integration.

NEWS

GEORGIA TODAY JULY 31 - AUGUST 6, 2020

3

CENN to Support East Point’s Green Initiatives Important Memorandum Signed to Support Environmental Protection & Georgia’s Sustainable Development

BY KATIE RUTH DAVIES

E

nvironmental protection- the care and respect of the world and nature in which we live and on which we depend for survival; reduce, recycle, reuse- the modern buzzwords we all have in mind, many recognize the need for, but few know how to implement effectively. In Georgia, it is largely thanks to the initiatives of businesses and NGOs that we are being helped along the way, with awareness also growing higher up, in government and city halls, of the need to do more to look after our planet.

One positive move in this direction was the signing, on July 13, of a four-party memorandum to assist in the environmental protection and sustainable development of the country. The signees of the memorandum, which was initiated by the East Point Shopping & Entertainment Center, were the Ministry of Environmental Protection and Agriculture of Georgia, Tbilisi City Hall, environmental organisation CENN and the East Point Shopping & Entertainment City itself. From the minute it was signed by the parties, it became active for an indefinite period, meaning the four will be working closely together to raise the public’s awareness on the need for environmental protection, and to deepen and share knowledge and experience. The memorandum will, above all, aim to inspire the public to take greater responsibility for environmental protection.

By signing the memorandum, all of the parties agreed, depending on their competence and possibilities, to back events organized and implemented by any of the other signees related to solving environmental problems and which are in line with the principles of environment protection. In short, by working together, they will be boosting the overall impact

of each of their environmental protection goals.

East Point now offers its customers: - An electric battery collection point; - Mobile charging station for electric cars, free of charge; - recycling corners for various types of waste like plastic, aluminium and glass.

GEORGIA TODAY spoke to Teiko Lominadze, the Marketing Director of East Point Shopping and Entertainment City, and Nana Janashia, Executive Director of CENN, to find out more about the significance and need for such a memo-

randum in Georgia.

“We believe, with East Point’s initiative, a very important memorandum has been signed. We can all manage waste reasonably every day, and if we realize the importance of it, we’ll play a big role in the improvement of the world,” Teiko Lominadze says. “That is the exact goal of this memorandum: to popularize this issue.

In addition, East Point has long implemented many eco-friendly projects. For example, we established the first electric battery collection point in the country, where we collect batteries and then send

them on for safe processing; at East Point, you can also separate waste, use a mobile charging station for electric cars, free of charge; and in June, we collaborated with plasticwatcher.ge and produced ecofriendly bags made from processed collected polyethylene bags and recycled commercial banners. We believe that our eco-friendly initiatives will inspire a lot of people and push them to care more for the environment.”

‘It’s important that both the private and the public sector see environmental solutions as part of their mission and

core values. Without these initiatives and active steps forward from all sides we wouldn’t be able to achieve the necessary goals to save our planet. More importantly, consumers are becoming increasingly environmentally conscious and now they are being offered a choice that was not available to them before,’ Nana Janashia says.

GEORGIA TODAY in particular looks forward to hearing more from this fabulous four on what we, the general public and businesses, can do to better protect the beautiful Georgian nature.

EBRD to Finance Modern Municipal Infrastructure in Bakuriani

BY ELENE DZEBISASHVILI

T

he European Bank for Reconstruction and Development (EBRD) is providing a €5 million loan to improve public transport and services in Bakuriani, a winter resort in the high Caucasus.

EBRD Regional Director for the Caucasus, Catarina Bjorlin, said: “This project will help to improve the quality of municipal services and safety measures

in an important resort town. Improving Georgia’s municipal infrastructure, especially in the regions, is of paramount importance for the EBRD. The project will also help promote gender equality across the workforce.”

The financing will help to acquire special vehicles for street cleaning, snow removal and waste collection, as well as to purchase multi-purpose trucks and modern buses.

The EBRD is also providing technical cooperation funding aimed at training and promoting women for bus-driver roles.

Volker: Amendments to Law on Electronic Communications Quite Reasonable

BY NINI DAKHUNDARIDZE

K

urt Volker, a former US Ambassador to NATO, while in dialogue with ‘Interpressnews,’ discussed the new amendments to the Law of Georgia on Electronic Communications.

The American diplomat talked about the positive changes that he believes will be brought about through the amendments to the Law.

Image source: NBC News

“One of them is that when you have strategic assets that are considered to be important for the national safety of Georgia – they should not be sold to private companies without the government permission. At the same time, when a private company is an owner they should not be allowed to sell the assets without the government permission – this is how it will be possible to avoid the strategic property getting in the hands of Russia or China. Ensuring this does not happen through the law is very smart.

The second thing that I believe will be achieved with these amendments is the

strengthening of the administrative regulators so that the companies follow the government’s decisions – that is also very smart. So, I believe that the law itself is very reasonable,” the American diplomat noted.

The former US Special Representative for Ukraine Negotiations also tweeted about the matter.

"Reversing or taking over past investments can scare off future investors.

Strategic asset legislation is reasonable; implementation should be reasonable too. Negotiated solution required," reads the tweet of the American diplomat.

4

POLITICS

GEORGIA TODAY

JULY 31 - AUGUST 6, 2020

US-China Rivalry: How to Save Vulnerable States, the Case of Georgia

BY EMIL AVDALIANI, PETER M. TASE

T

he US’ tough stance on China reflects principal shifts in the US foreign policy and National Security that the White House has introduced in cyberwarfare and counterintelligence to confront Beijing’s geopolitical and commercial influence worldwide. Indeed, under Xi Jinping, China has developed a well sophisticated blue water navy and is heavily focused on improving China’s cyber capabilities worldwide. China’s increased military activities in the South China Sea and the Indian Ocean, combined with a well sophisticated military diplomacy campaign in Europe, its advent as the principal geopolitical power in the IndoPacific region and on the edges of Europe, are the contemporary result of America’s inward looking posture.

The US-China trade standoff has been transforming the global economy, and the ongoing incommensurable challenges demand a candid, shared leadership that evokes a decades-long transatlantic partnership.

Contrary to the existing approach in international trade, the Pentagon has continued to enhance its military presence and defense cooperation with a few countries that are on China’s flanks, while their maritime boundaries are pressed

by Beijing’s ever growing naval forces.

European Diplomacy has increasingly depended on the current moves of the US Department of State, and Georgia, as a country with aspirations for EU integration, has felt the heat from the ongoing abrasive transatlantic ties. The US’ interests in the South Caucasus are

as vital and long-standing as they are evident, and characterize other major powers such as Turkey, Russia and the European Union.

Despite Vice President Mike Pence’s visit to Georgia in August 2017, on the occasion of the 25th anniversary of bilateral relations, Washington has been slow in strengthening its commercial cooperation with Tbilisi. The lack of US engagement could invite China’s Belt and Road Initiative to play a bigger role in the region, leading to a weakening US influence in Europe.

Still, though there might have been vacillations in Washington’s position towards Georgia in the past years or decades, overall, the American strategic thinking and posture has remained intact.

One of the geopolitical imperatives of the US since the breakup of the Soviet Union was to enable newly independent Georgia to use its geographic position as a nodal point in the nascent South Caucasus energy and transport corridors.

Moreover, the effectiveness of the Georgian corridor would underpin a bigger project, the Trans-Caspian Corridor (which consists of a pipeline, port-toport logistical infrastructure, etc.) that is still an idea with only minor success, but which may, under altered circumstances, become a geopolitical reality.

This would inevitably increase Georgia’s independence vis-à-vis Russian transportation networks. This vision has proved to be successful and in the almost 30 years that have passed since the end of the Soviet Union, big steps have been made to limit Russia’s energy and infrastructural presence in the country.

Though, for many, a determining factor is the US military presence near Georgian borders or in the country itself, military protection is not as long-lasting

as it might always seem. Of a more tangible essence have been the USAID programs to improve Georgia’s infrastructure, which is traditionally hampered by a difficult geography (a factor which always limited Georgia’s political power and ability to control far-flung territories).

One of the important future tasks for the United States is to support the successful construction of the Anaklia Port, as the port’s location and size would increase not only Georgia’s transit capabilities but also the implementation of the US strategy in Georgia: helping Tbilisi become less dependent on alternative transit routes.

Despite Georgia being a geographically small country with limited military and economic potential, it is still important for the US to evaluate the internal political developments. As Georgia gears up for crucial parliamentary elections this October, extensive cooperation with various parties should be carried out.

From the US perspective, the most popular parties in Georgia are in fact prowestern. This serves as a good basis for the composition of a long-term strategy and hit the reset button.

An important pillar of the US policy in the South Caucasus and Georgia in particular would be Washington’s deeper cooperation with Turkey. Although the two states have experienced some troubled waters in recent years, Ankara and Washington are still strategically aligned.

It is in Turkey’s interest to uphold Georgia’s security, as the latter provides the only land corridor for Turkey to reach Azerbaijan and the Caspian Sea. This posture also emphasizes that Ankara is opposed to Russia’s strengthening of its positions in the South Caucasus. Thus, in broader terms, Turkey’s and Azerbai-

Image source: globalvillagespace.com

jan’s strategic interests over Georgia are more aligned than they may appear in sporadic times.

Another crucial sphere of influence where the US could provide vital expertise and assistance is in the economy. No long-term stability for Georgia would be possible unless the country enjoys considerable economic growth based on industrial and manufacturing capabilities.

As Steve H. Hanke, a professor of applied economics and co-director of the Institute for Applied Economics, Global Health, and the Study of Business Enterprise (IAEGHSBE) at the Johns Hopkins University, said in a piece in 2014: “The Georgian economy tanked in the last days of the Soviet Union and the first years of independence from Russian rule: gross domestic product declined 68% and inflation hit 1.500% between 1990 and 1994. Since then, however, the republic has grown rapidly, with GDP increasing roughly fivefold in the new millennium, prices and exchange rates of the Georgian Lari remaining stable, and foreign direct investment increasing steadily. Still, Georgians’ per-capita annual income today is less than $6,000, the official poverty rate exceeds 17%, and

(like many developing nations) Georgia scores relatively poorly on measures of corruption and income inequality, ranking near countries like Nicaragua and the Ivory Coast.”

Georgia lacks the elements of a strong national economy and advanced industrial sector, making the country vulnerable to regional political and economic developments.

In retrospect, it can be argued that Washington’s policy towards Georgia has been quite consistent since the end of the Soviet Union. There were periods of low-intensity cooperation, alternated by a deepening of bilateral relations, but overall, the US strategic intent towards Georgia has remained the same: improving the infrastructure as a basis for the country’s strengthened sovereignty against external geopolitical odds.

Today, the EU considers China as a systemic rival and serious economic competitor. These matters are addressed constantly in the EU-NATO discussions; based on the current developments, Washington has the opportunity to garner a greater presence in Georgia and establish an economic foothold with geopolitical interests leading to a regional US military presence.

sumable case of fake news and shamelessly mendacious journalist who has the temerity to lie to the worst possible detriment of this nation and its due development, in collaborative company with the rest of the world.

The proposal sounds like one of my regular tongue-in-cheek suggestions, but as the saying would have it, there

is always a stray grain of truth in every deliberate joke. The new special court is not going to be a simple scarecrow, frightening away the fake-masters. If it works, it will be just another mile in the process of formation of the Republic’s genuinely independent court system, equaled to the American judicial Olympus.

The News-Fakeism in Our Life OP-ED BY NUGZAR B. RUHADZE

I

n my trove of past and current information, the stories of the now-bygone socialism and the now-burgeoning capitalism are so tightly intertwined that even I can’t make head nor tail of them. The fact that the Marxist era of our existence was an ugly bunch of lies in our communist teeth is now known to the entire world. It has also been recognized that the former soviets have duly eaten their share of humble pie as a consequence of the regime’s historic demise. At that time of rubber-stamped means of mass communication, the news in general would be faked-up.

Presently, in the epoch of universal freedom and ubiquitous democracy, the news still tends to be faked. The only difference is that back then, we all faked our belief in governmentproduced news because the punishment was otherwise imminent, hence we voluntarily succumbed to it. What is happening now is beyond regular human imagination: media continues to fake the news but with bigger literary subtlety and journalistic dexterity, and the public continues to succumb to it, only with a newly-acquired right to express its disbelief in the provided info, and object to it.

Both styles of feeding the news to people serve the same purpose: either to stay in power or to come to it. And the resultant headache hurts only the electorate and the governed.

Fake news is among the worst scourges of our time. On the other hand, it might work as a builder of life, because human-

ity has been making progress in the duration of the millennia as a consequence of its struggle between good and evil. Could fake news be one of the paradigms of that perpetual clash between darkness and light? It certainly could, but at this stage of an unbelievable human leap towards a source of improved existence, this dilemma has to be handled, and the lie, the flagrantly hurtful and destructive lie in the media, has to be stopped forever.

How? The way all the other details of our life are handled: by means of creating a pertinent law and then abiding by it. We usually suffer a cruel penchant for punishing a little child for breaking a plate and hiding it. Why, then, should a newsfaking journalist, breaking our hearts, get away with a lie which hurts society much worse than a kid with his or her minor prank and lie?

The current hearsay about the possibility of lowering the level of freedom of speech and democracy might contain a smattering of truth, but the prospect of containing the outrageously proliferating faked news is much scarier, especially if we continue encouraging the fake-mongers and rabble-rousers with our groundless tolerance.

Trying not to keep too far from the truth, I would admit that our court system, as it functions today, might not have enough nerve and capacity to hear the possible number of fake news cases, but we can always think of a ruse if we give a little strain to our brains. For instance, in America, they have a very complicated but extremely efficient law-enforcement system, including the court network,

which contains several courts that have jurisdiction over specialized subjects, such as a court of claims, court of military appeals, court of customs and patent appeals, and a tax court. We could just as well introduce into the Georgian court system a special court of fake news appeals which will be designed to handle every pre-

SPECIAL OFFER ONLY UNTIL AUGUST 15!

SELECT THE DESIRED APARTMENT, FULLY RENOVATED, WITH FURNITURE AND APPLIANCES IN THE CALLIGRAPHY TOWERS PROJECT; TAKE ADVANTAGE OF A 3-YEAR INTERNAL 0% INSTALLMENT PLAN AND RECEIVE A SMART HOME SYSTEM AS A GIFT. YOU WILL GET A SIMPLE, SMART AND IDEAL SERVICE THAT YOU CAN MANAGE FROM ANYWHERE IN THE WORLD. • BEST LOCATION • HOTEL TYPE APARTMENTS IN THE CITY CENTER • APARTMENTS WITH BEAUTIFUL SEA, MOUNTAIN AND CITY VIEWS • LARGE RECREATION AREA • PARKING

• • • • • •

SWIMMING POOLS SPA CENTER BILLIARD CENTER CALLIGRAPH CINEMA BOWLING CENTER PIANO& LOUNGE BAR WITH LIVE MUSIC

Batumi, Shartava St. 18 E-mail:grandmaison2020@gmail.com www.calligraphy-towers.com +995 571 02 55 55 Viber/WhatSapp

6

POLITICS

GEORGIA TODAY

JULY 31 - AUGUST 6, 2020

The Balance of Strength in the Black Sea Region & Georgia’s Current Challenges. Part I

BY VICTOR KIPIANI, GEOCASE CHAIR

and authoritarianism. Many current developments in the region are indeed tantamount to the erection of a New Iron Curtain that cuts right through the Black Sea.

S

REGIONAL GEOPOLITICAL CONTOURS

ecurity in the Black Sea region has become a very popular topic these days, but the often purely theoretical nature of the interests of various actors is insufficient to motivate them in practice. This question and the practical solutions it calls for are directly linked to Georgia’s security and development as well as to the stability of the region as a whole, and it is therefore vital that Tbilisi seek to forecast developments and prepare both preventative mechanisms and timely responses to the risks and challenges.

In general, the Black Sea’s importance derives not only from the countries that lie along its shores, which is only natural, but also from its history, particularly for several global actors with regional interests. The Black Sea itself and the wider region around it have throughout history been the arena for a variety of goals, the foremost and most decisive of which was trade. The shift away from purely commercial interests to a larger ‘Great Power’ confrontation truly began when Russia established herself along the Black Sea’s shores, and from 1853 onwards Russian interest in the region has been invariably high.

The Crimean War and the later replacement of European interests with those of the United States and NATO progressively increased the perceived importance of achieving and maintaining an influence over the Black Sea region.

NATO has repeatedly stated the region’s geopolitical and geo-economic significance ‘in terms of Euro-Atlantic security’, most notably at its summits in Warsaw in 2016 and in Brussels in 2018. In contrast, the London summit of 2019 can be said to have caused some dissatisfaction in this regard, although a meeting of the joint NATO-Georgia Commission subsequently held in Batumi pointed out the need to define ‘priorities for the coming period’.

The Black Sea region’s growing role is not at all surprising if we consider some of the Western or Russian doctrines and theories that describe it as a ‘rampart’ or even as a dividing line between democracy

The geopolitical contours of the Black Sea region are relatively amorphous, but this is not only the result of regional specificities: this amorphousness can be seen in almost every one of the world’s ‘centres of gravity’, and the wider region that encompasses both the Black and Caspian Seas is indeed the centre of gravity of the Eurasian continent. Instead, we should search for the reasons of this geopolitical amorphousness and uncertainty among various global processes linked to the Cold War and the 2001 attack on the World Trade Centre.

These existing challenges have more recently been worsened by Russia’s aggressive acts in the region, particularly against Georgia and Ukraine; these have brutally ignored the established norms of behaviour between countries and have led to a many-faceted international crisis. These challenges which have been building up in the region have since been compounded by the current coronavirus pandemic, which threatens to fundamentally rearrange many things. As a result, we are now facing many critical questions whose answers are scattered around the region and indeed around the globe as a whole.

There is very often talk of a so-called ‘Grand Strategy’ whose definition has almost become an end in itself. The desirability of having such a ‘grand’ plan is of course perfectly understandable— we all want to know how to get from point A to point B, how long it will take and how much it will cost—but it is also important to remember that this journey must not involve unpredictable risks.

One of the main problems, however, is that when an attempt is made to commit such a ‘Grand Strategy’ to paper, one often loses sight of the initial goals. This loss of the fundamental issues is frequently due to the absence of a common understanding of the ‘Grand Strategy’ and to the emergence of variations upon the same theme, every one of which is based upon the divergent expectations of individual countries at different times.

The Germans, for example, believe first

BUSINESS

Natakhtari – The Official Cold Beer for Summer 2020 ADVERTORIAL

D

o you know how to find out if your beer is 100% cold? The temperature is very important to really get a good sense of a beer’s flavor, and the ideal temperature is said to be 4 – 6 oC. However, in our daily life, we cannot tell when our beer has chilled to that “just-right” level, which is why this summer you will see a thermometer icon on Natakhtari’s label, created with Thermo Ink technology.

The thermometer icon is sensitive to cold, meaning consumers will easily be able to tell when the beer has cooled to the ideal temperature: when it turns blue, it means that the beer is ideally cooled to a temperature of 4 – 6 oC. Natakhari is the first beer on the Georgian market to use a thermochromic label.

“We believe that being consumer-driven requires excellent listening skills and empathy in order to understand your consumer needs and act accordingly.

Rather than being product-oriented and doing repetitive products or activities, we choose to invest in needs,” says Ana Karchava, Marketing Manager of EFES Georgia.

“We are always thinking how we can make our consumers’ lives simpler and bring them additional benefits. In this case, we identified one of the needs, especially in summer, to drink beer at the right temperature, so that beer lovers can enjoy the full taste. This additional function will make the ritual of drinking beer more fun, too,” Karchava notes.

“This year has been hard for everyone and brands have to think more about bringing benefits to their consumers.

There is more integration of technology and innovation in our daily lives in every other sector, so that why not in beer?

This was our starting point, and with Thermo ink technology, we believe that it will make it easier for our consumers to understand the ideal temperature of their beer, and it will make the experience more fun for sure. We will keep investing in our consumers and our culture. Keep your eyes open!”

Image source: fpri.org

and foremost in ‘strategic patience’, i.e. not involving themselves in matters beyond their direct interests; the French, on the other hand, have always preferred a ‘strategic autonomy’ that aims for the establishment of a European political and military identity; and Poland (as a last example) follows a policy of ‘strategic embrace’ that involves maintaining direct contacts with the United States that bypass European structures.

This great diversity of national strategies precludes long-term planning in practice and thereby limits any ‘Grand Strategy’ to short-term goals and tasks that are more tactical in nature than strategic. I therefore believe that it would be more desirable to talk of an ‘emerging strategy’ rather than a ‘grand’ one, particularly as this concept allows for greater flexibility when seeking to overcome current risks and challenges. An ‘emerging strategy’ is also more practical as its approach is based upon ‘realistic’ and rational assessments rather than ideological considerations, enabling greater caution to be taken and increasing the chances of avoiding the occasionally catastrophic results of new confrontations.

In Georgia’s case, following strictly rational and realistic approaches gives us the ability to adapt to uncertain processes, and in the wider Black Sea region

will help us to better combine elements of competitiveness and co-operation.

HOW RELIABLE IS REGIONAL SECURITY? When considering the reliability of existing security mechanisms in the Black Sea region, it is vital to initially identify precisely ‘who is who?’ It was no accident that I mentioned Russia early on in the conversation. Russia’s influence and the West’s position in the region reflect a Kremlin doctrine that was mostly developed under Yevgeny Primakov; this, the so-called Primakov Doctrine, aims to prevent neighbouring countries from leaving Russia’s sphere of influence and establishing themselves as independent, self-sufficient countries, and indeed even to prevent any opportunity to do so from arising.

In practice, the Primakov Doctrine was used to apply different kinds of pressure on the countries Russia sees as belonging to her ‘Near Abroad’—from hybrid war to direct and open aggression. In reality, however, this Russian approach was nothing new and had already been employed immediately after the collapse of the Soviet Union, but it lacked spontaneity and theoretical ‘justification’ for quite some time. Since Russia’s 2008 war with Georgia, annexation of Crimea and recent attempts to turn the Black Sea into a Closed one, however, Moscow’s

‘Near Abroad’ policy of maintaining areas of influence has become much more systemic in nature.

When considering the Black Sea, the important point is that, besides its geopolitical significance—enabling Russian access to the Eastern Mediterranean, the Middle East and North Africa—the region also bears an internal political dimension for Moscow. By maintaining maximal strategic depth along the country’s federal borders, Russia is trying to prevent ‘harmful’ foreign influences from penetrating their inner state space.

According to their own perception, this enables Moscow to act according to the requirements of Russia’s choice of ‘sovereign democracy’.

It is clear that outside observers have no right to question the choices a country has made to ensure its national development—unless of course these choices involve a disregard for international law and order and regional security, and the occupation and annexation of neighbouring countries. Russian policy towards the Black Sea ‘aquarium’ and neighbouring countries, according to their own logic, is precisely that: Moscow openly imposes its rules of the game, and is committed to achieving maximum results for itself as a ‘regional super-state’.

And so what has the West’s collective security response been to Russia’s approach? Unfortunately, this ‘response’ could at the very least be described as irrelevant and inadequate in the face of reality, and given Russia’s blatant disregard for the integrity of Georgian and Ukrainian territory and indeed their occupation, this irrelevance becomes even more prominent.

At cause is the Alliance’s lack of focus on its eastern flank. Compared to the Baltic Sea’s intensified security system, which according to NATO terminology constitutes an ‘enhanced forward presence’, the Alliance’s security component in the Black Sea region is of a relatively lower quality, as indicated in the somewhat humbler term ‘tailored forward presence’. This asymmetry could be explained 10-12 years ago, but through the prism of recent developments, the Alliance’s security model in the Black Sea region urgently needs to be reviewed and readjusted.

To be continued in next week’s GT.

BUSINESS

GEORGIA TODAY JULY 31 - AUGUST 6, 2020

7

Georgian Economic Climate (Q2, 2020)

PREPARED BY PMC RESEARCH

G

eorgian Economic Climate is a product of PMC Research Center. In this bulletin, we discuss Georgia’s economic climate as assessed by Georgian economists. The bulletin is based on IFO Institute methodology. 50 experts are participating in this initiative from Georgia. The survey was conducted in July 2020.

In the third quarter of 2020, the Georgian economic climate has slightly improved.

In this period, Georgian economists assessed Georgia’s present economic situation negatively. Moreover, the assessment of the present economic situation in this quarter improved compared to the second quarter of 2020, but worsened compared to the third quarter of 2019.

In the third quarter of 2020, Georgia’s economic situation for the next six months was also assessed negatively by Georgian economists. While expectations for the next six months have enhanced compared with the second quarter of 2020, they have deteriorated slightly compared with the third quarter of 2019.

In addition, the experts predicted Georgia’s main economic indicators. According to the results, in the third quarter of 2020, the expected real GDP growth for 2020 is -5%. Other main economic indicators are forecasted as follows: • The inflation rate is expected to increase in the next six months, on a year-on-year basis; • The Georgian Lari is currently overvalued against the US Dollar, Euro and Turkish Lira, and undervalued against the Russian Ruble.

• The export volume is expected to increase in the coming six months;

• The import volume is expected to increase in the coming six months; • The export volume is expected to decrease less than the import volume, resulting in an improved trade balance in the next six months.

ism (both local and foreign). 47% stated that revenue will decrease by 60-80%, 27% expected a decrease by 40-60%, while a decrease by 80-100% and 20-40% was expected by 13% and 7%, respectively.

SPECIAL QUESTION

METHODOLOGY

In the third quarter of 2020, Georgian experts assessed the post-pandemic recovery phase in the Georgian economy.

The majority of experts (60%) implied that the economy will need 12-18 months to reach its pre-pandemic state. They were asked to identify the sectors of economy that are most vulnerable to the spread of the virus. Accommodation and Food Service Activities were emphasized by 93% of experts, and Retail by 67%.

47% of Georgian economists assessed the government’s support to businesses as “partially sufficient”, while 20% assessed the support positively and 33% negatively. Furthermore, the government’s support to the population (both hired and self-employed individuals) was assessed as “partially sufficient” by 40% of experts. 33% viewed the support positively, and 27% negatively.

Based on the fact that government debt is growing significantly, the economists were also asked to specify tools to lower said debt. All indicated the need to cut a number of public servants, 47% emphasized better debt management, while cutting investment projects and reducing public wages were chosen by 20% and 33%, respectively.

60% of the economists stated that the average unemployment rate in 2020 would increase to 15-20% (the average unemployment rate in 2019 was 11.6%).

In addition, experts were asked to assess the change in total revenue from tour-

The ECI is based on quarterly expert

assessments of the present economic situation, as well as expectations for the next six months. The scale ranges from –100 points to +100 points. An index of –100 means that all experts assess the economic situation as deteriorating (negative), while an index of +100 indicates improvement (positive), and 0 means neutral/no change.

gian people and country from foreign tourists.

In 2020, during the coronavirus pandemic, we completely avoided closure; our crisis management team was working very hard to follow all health and safety instructions given by the Georgian government and the WHO. We have achieved remarkable results in the first and second quarters by sales volume and by delivering a message to the whole world that Georgia is a safe and green zone. Our existing and new customers alike, felt comfortable and safe investing in Georgia. After the coronavirus effect, we began to promote Georgia as a tourism country and we spread information about the Georgian investment environment.

Our company often creates promotional videos depicting the unforgettable beauty and hospitality of Georgia, to attract even more visitors to the country. We

have foreign non-profit websites, where we publish positive and pleasant news about the country, to let more people know about the good developments in Georgia and get inspired to start making investments, or just to visit and enjoy it.

We have yet another eco-friendly activity planned for the future: our team intends to plant trees in Tbilisi, which is like any city that lacks fresh air nowadays. As for the location, let it be a pleasant surprise.

In every activity, on every platform around the world, in every branch we are operating, all of our team members are ambassadors of Georgia, showing the best Georgia has to offer.

Georgia has great laws and regulations, which is what attracted us as investors, and we look forward to them being implemented faster. I recommend Georgia to all investors, wherever they may be in the world.

York Towers - Everything to Preserve & Maintain the Environment & the Harmonious Development of Your Family

BY AMR ALABWAZ, GENERAL DIRECTOR OF YORK TOWERS

E

nvironmental pollution is one of the biggest problems in the world, and in Georgia, it is sadly no different. As such, it is extremely important to use the services of companies which spare no effort in caring about ecology while simultaneously providing maximum comfort for their customers.

These days, few construction companies care to maintain the natural conditions while also offering an international experience, as York Towers does.

One of the main priorities of the York Towers company is to conserve a clean environment and fresh air while providing an excellent opportunity to build your family's healthy future today.

York Towers is a leading international real estate developer with multiple investments in Europe and the Middle East, and it continues to expand its projects to cover all real estate activities worldwide.

The company has successfully finished many projects in Europe and the Middle East and has been operating in the Georgian market since 2017 too.

In Georgia, York Towers has success-

fully finished and delivered many projects, such as Dighomi Mall, multifunctional innovative space Diplomatic Dighomi, and the Caucasus Tower in Temka district.

One of its ongoing projects is Lisi View, which is a new opportunity for those looking for a home with all the facilities in a clean environment and in a great location with amazing views.

Lisi View is located in the most elite and prestigious neighborhood in Tbilisi, just a few minutes from the center. Lisi View offers a distinctive lifestyle that can't be found anywhere else in the city, where you will find an amazing natural environment, giving the impression that every part of the complex is an organic product of the surrounding nature.

In the Lisi View project, we have implemented the concept of a wide open space, which creates conditions for good communication between the residents of the complex- there, you will find pure air and charming panoramas: a special gift from nature!

All villas in the Lisi View complex are built following a single architectural concept with spectacular views of the rich green landscape. All housing units are designed with the highest international standards: everything from the choice of building materials and construction technology to the state of the

soil, water, and air- everything is aimed at preserving and maintaining the environment and harmonious development of your family.

The project will be delivered in three phases. The first phase will be delivered by the end of 2020, as we have already started the major construction work.

The 2nd phase will be delivered mid2021, and the full project will be delivered by the beginning of 2022.

Customer demand is high. We are trying to target the middle class and provide them with affordable prices. Our plan implements the idea that everyone who can afford to purchase apartments on the outskirts of Tbilisi will also be able to purchase them in our complex and benefit from all the facilities which I have already mentioned.

We offer our customers villas, flats, private houses, and commercial spaces.

We operate in the market, which means that we have high-quality products and services.

Most importantly, we offer new locations full of facilities and service areas, people will live there in maximum comfort and will have everything they need.

Involvement in CSR projects is yet another priority for our company. We support economic and touristic development in Georgia and are ready to use our resources to bring love to the Geor-

8

BUSINESS

GEORGIA TODAY

JULY 31 - AUGUST 6, 2020

Carrefour: The Crisis Management Strategy Amid a Global Pandemic

C

OVID-19 has significantly impacted economies and businesses across the world.

While having serious implications on public health and safety, the pandemic has also forced businesses to navigate operational challenges while quickly having to address the needs of their employees, customers, and suppliers. Georgia is no exception.

Over the course of the last few months, the country’s economy has experienced a sharp decline, with its Gross Domestic Product (GDP) falling by 16.6 per cent in April 2020. In spite of this unpredictable and unexpected environment, organisations — led by people with robust crisis management skills and prior experience — were able to maintain a degree of stability.

Globally, it is agreed that no one could have predicted the scale and scope of the coronavirus’ impact. And yet, even amid the chaos, there are companies that lead us toward green shoots of recovery.

Watching organisations respond and adapt impressively to operate their businesses sustainably — and in such exacting conditions — underscores the importance of crisis management skills; especially in turbulent times.

Carrefour is one of a handful of prominent brands that has successfully managed to contend with the challenges posed by COVID-19. One of the world’s largest hypermarket and supermarket brands, Carrefour — operated in Georgia by Majid Al Futtaim since 2012 — has been a player in the Georgian market since 2018. Since the company’s establishment in the country, Carrefour has provided Georgians with quality, variety, and value; introducing a completely new and unrivalled shopping experience to the region. Carrefour has brought to Georgia an extensive choice of more than 40,000 food and non-food products characterised by low pricing and highquality.

With 22 local stores to supply to, and acting as a catalyst for change within the community, Carrefour has proven itself a resilient retail leader amid a global crisis. In a recent sit-down, Christophe Orcet — the Country Manager of Car-

refour Georgia — revealed the three central tenets that have helped Carrefour to navigate the ups and downs of the global pandemic; offering some valuable guidance for businesses contending with crises.

PRIOR PLANNING AND PREPARATION “While this is an unprecedented situation, the world is no stranger to global crises,” Orcet reminds us. Having worked in retail over the last 27 years, he has helped steer the business through the spread of the H1N1 virus in 2010, as well as the MERS outbreak in 2012.

Accordingly, Carrefour has had in place a longstanding crisis management toolbox which comprises a supply chain, customer relations, and hygiene plan in the case of a global health concern. Orcet explains, being in a retail business that is primarily concerned with supplying fresh food items, it is important to learn from the past and double down on crisis management efforts.

“In essence, plan for more than you would expect, because as a business your greatest responsibility is to your customer and there is no room for risking safety,” he says.

The first coronavirus case appeared in Georgia on 26 February, but Carrefour had already been taking steps to implement elements of their epidemic toolbox, created from the learnings of past experiences.

Acting quickly and adapting, together The wellbeing and safety of employees and customers is the number one priority for the company. As such, Carrefour Georgia had taken proactive steps toward improving public health as well as implementing technological solutions to minimise the spread of the virus.

When it comes to safety, Orcet repeats again and again, there is no time to compromise and action must be taken immediately.

Accordingly, Carrefour increased the frequency of cleaning and sanitation with maximum concentration permitted for washing and disinfection detergents.

The company systematically began disinfecting its trolleys, baskets, and all

other surfaces. Moreover, before admitting personnel to the stores or the Head Office, Carrefour imposed mandatory health condition controls to check for coughing, breathing difficulties, and temperature — these preventive measures put in place to stymie the spread of the virus.

All Carrefour employees are equipped with masks and gloves. For additional safety of employees, special protective barriers were also installed at cash counters. Today, all customers are encouraged to wear gloves and keep a distance of two meters.

In addition to the swift and stringent hygiene standards put in place, Carrefour has also worked hard to enhance its eCommerce offering during the pandemic to ensure customers maintain access to essential items.

A previous partnership with the delivery company, Glovo, helped to increase the number of customers during this difficult time and enabled Carrefour to add value to the shopping experience while investing the customers’ experience. As it seeks to switch to contactless solutions, Carrefour continues to expand its partnership network by collaborating with Mastercard.

“We’ve implemented a joint campaign together regarding a contactless payment method, which is in force until July,” Orcet added.

SUPPORTING THE COMMUNITY Carrefour proactively supports the communities it serves. Recognising early on that the pandemic was a community concern, Carrefour sought to contribute beyond its own business operations in order to reduce the spread of the virus while safeguarding the health and safety of employees and customers. This speaks to the belief that a business can only thrive if the people in its surrounding communities work together, Orcet emphasised.

A name with great sense of social responsibility, Carrefour joined the Red Cross and Tbilisi City Hall campaign to support Georgia’s elderly and socially vulnerable members of the community.

The campaign also allows customers to contribute to helping 10, 000 elderly

Christophe Orcet, Country Manager of Carrefour Georgia

people in need.

In addition to this campaign, Carrefour is cooperating with the Rehabilitation Center for disabled elderly people and is systematically providing the center with food. Most recently, an important memorandum signed with the international charity organisation, Emmaus, helped provide clothes that are no longer in use to socially vulnerable families.

Carrefour continues to implement its corporate social responsibility initiatives in order to help ease the pandemic’s burdens on citizens.

In doing so, Carrefour aims to underline its commitment to the people and communities it serves; emphasising that businesses will play an even greater role in supporting communities going forward, post-COVID.

Construction Company Dagi – A Story that Began 20 Years Ago

G

ogi Gulordava, the founder of Dagi, talks to us about the history of the company, its successes, and the great importance of the construc-

tion sector: 20 years ago, in post-soviet Georgia, likely no-one would have thought it would take just two decades for the construction business to become the main direction of the country’s economy.

However, it was the early 2000s and two people with minimum technology with a small group of co-workers started the constructing company Dagi.

“We founded the company because starting a business in the construction field meant more for us than simply becoming businessmen – to us, this was a way to play a role in the development of the country,” Gulordava tells us.

Today, Dagi, a Limited liability company, has a development strategy that entails construction work that has to do with office spaces, living buildings, community parks, automobile infrastructure, irrigation engineering and drinking water infrastructure. However, Dagi also works on restoration projects. In 2012, the Company was assigned the ISO 9001:2008 certificate; in October 2015, the OHSAS 18001:2007 Certificate; and in March 2016 the ISO 14001:2004 certificate. Also, since June 18, 2012, it has been registered in the State Procurement Agency’s White List.

The first project of the construction

company was Mama Daviti. Since then, Dagi has successfully finished over 300 projects, among them some of the country’s most successful projects: Mestia rehabilitation, Sataplia Cave and Nature Reserve, Hotel Anaklia, The Opera Theater of Kutaisi, and the Vani Museum.

“We see the individual charm and beauty of each and every project and we approach them differently. However, we consider projects associated with education the most important,” Gulordava says. “They are not just buildings, they are the places where kids are meant to grow up, study, develop and start building a better Georgia. At this stage, Dagi is building the V. Komarovi PhysicsMathematics School in Batumi, schools in Upper Machkhaani and Upper Sakara, in Martvili, as well as professional colleges in Marneuli, Borjomi, and Khashuri.

These are the projects that are most important [to us] because in the buildings constructed by us, a new generation will be building a new Georgia.

“Another emotional project for us is a Trading Center in Rukhi, which is very close to occupied territories of the country. 300 meters from the construction works, the territory is still Georgian, but it is impossible for us to get there. Realizing this brings a lot of emotions. Villagers from villages past Enguri were employed in this project, which makes us particularly proud.

“For us, Dagi is more than just construction business,” Gulordava confesses.

“This is a step forward, taken for a better Georgia; an idea directed towards the development of the country. Dagi has been on the market for 20 years now, yet it is still growing, because what motivates it is the desire to have a common bright future for all. Not only a brighter future for the country, but a brighter future for all the employees of the company. Today, around 2000 people are working in Dagi. Our greatest focus is to take care after their children and to strive for them to live in a better Georgia.”

Of course, technological development

and innovations are integral parts of the construction process. Dagi has a big leverage there: using modern technologies and materials enables Dagi to offer its customers the best technical decisions.

“It is impossible to create modern, particular projects without new technologies. Especially in our country, where the market is, fortunately, competitive and is developing every day,” Gulordava says. “So we do not have the right to relax and lose grip. We believe that it is crucial to adapt to international standards; it is crucial to share and follow the experiences of other countries and their

technological developments. That is why Dagi is continuously retraining its employees.

“For example, before the pandemic, we were planning an important project, the retraining of employees abroad, and starting the production of AAC energy efficient aerated concrete blocks. Unfortunately, due to the pandemic, we had to take a rain check with this project.

This new technology will see the light in Georgia as soon as the pandemic ends, and Dagi’s employees will improve their qualifications in Germany and Turkey.”

The main approach taken by Dagi is that the construction is not a mere business, but the country’s future. Consequently, the company cares for the futures of each employee and their family members. In Dagi’s case, the key to success is caring and taking every step to show this care, be it the retraining of employees, the establishment of innovations in construction, or the start of projects of importance for the country.

“In Dagi we believe that the development of infrastructure is the biggest indicator of the country’s development,” Gulordava notes. “The more employees we have, and the more projects we carry out, the more we realize how far Georgia has come. The choice is easy: you either do not act, you stop and get used to the reality, or you build the future every day, even if it’s like putting down a single brick a day. Dagi made that choice 20 years ago.”

BUSINESS

GEORGIA TODAY JULY 31 - AUGUST 6, 2020

9

Tbilisi Hills Golf & Residences Marketing Director On Bringing Golf Culture to Georgia INTERVIEW. TRANSLATED BY ELENE DZEBISASHVILI

in improving personal records, as well as with those around them. Ultimately, the most important thing is to best yourself.

I

DOES THIS MEAN THAT GOLF IS A KEY ELEMENT OF TBILISI HILLS'S MARKETING STRATEGY? ARE THERE ANY OTHER AREAS IN TERMS OF MARKETING STRATEGY?

consider it an honor to be a member of Tbilisi Hill’s team,” says Raimonds Elbakjans, Marketing Director of Tbilisi Hills Golf & Residences. “When I arrived in Georgia two years ago, I had no plans to work here, but when I saw this unique project, I could not hide my admiration.

I immediately fell in love with the project. I have been leading Ghetto Games, the largest street sports movement in Europe, for last 12 years, but now golf and real estate is something new - an interesting challenge for me.”

BUILDING PRATICAL GOLF FACILITIES IN GEORGIA IS NO EASY TASK. WE ASKED HIM ABOUT THE CHALLENGES THE COMPANY FACES AND WHAT PLANS THEY HAVE TO OVERCOME THEM. On one hand there are various sports federations; but on the other hand I believe that the work starts with the coaches as well as the parents who decide to teach their children this sport. We need to break the stereotype that golf is just a game for older people. Golf is not the case. Many of the expats who come to live in Georgia own the art of golf.

They want to accustom Georgians to the culture of golf.

My 3-year plan is to attract 1000 Georgians to this sport. We have achieved great success in street sports in my country. We worked a lot with young people, which made it easier for us to figure out how to bring this culture to the younger generation. The values that golf experience entails are exactly the message we want to convey to Georgian society. It represents yet another elite language through which communication is possible worldwide. I’m a former professional basketball player, and therefore, I also use this language to communicate with people. I have a lot to do with Georgian basketball. Sanikidze and Markoshvili are my friends. We used to play against each other. However, from now on, we will play golf and become very active followers of this sport.

AN ACTIVE LEADER IN THE STREET SPORTS MOVEMENT IN LATVIA AND EUROPE, ELBAKJANS RECEIVED AN AWARD FROM THE EUROPEAN COMMISSION FOR PROMOTING STREET SPORTS ACTIVITIES AMONG YOUNG PEOPLE.

TELL US MORE ABOUT IT.

For me, this award was a big surprise.

My colleagues submitted an application for me in secret. When I flew to Brussels for the awards ceremony, I came across people I’d never met before: officials, let us say snobs. Then I realized that we succeeded at delivering our voice to them from the street. It is said that youth is our future, but I have always believed that it is our present; and such was my attitude towards them. Being a leader of the largest youth movement in Europe has been a great honor. I was a very hyperactive and restless young man, I was often not understood at school or home, so I did my best to make this experience a useful project for youth. I have high hopes that we will be able to do the same in Georgia. In partnership with the local government, we envisage developing an interesting concept so that the youth of Georgia can share this happiness.

WHAT ARE MODERN SPORTS MARKETING TRENDS? WHAT IS NEEDED TO DEVELOP A SUCCESSFUL MARKETING STRATEGY AND HOW WILL TBILISI HILLS IMPLEMENT IT? Nowadays, everything, including sports, fashion and music, are considered in a

single context. We cannot talk about sports as "sports", more like business: we should look at it that way. Amateur sports are now very trendy. People no longer want to sit on the podiums with beer and hot dogs in their hands. They have a need to become action heroes themselves. They realize that this is possible. You don’t have to break records to get into the pages of a newspaper to be recognized: you can simply open a Facebook page and share your personal achievements with the public there. It is important that each person can be a champion today and share their personal records with the world.

Earlier, the state determined which sports to develop in the country: sport was part of a unified policy. Now, there is complete freedom of choice. No frames.

Sport has become very democratic. The type that delivers the best product, style and value system is most popular, and will always have a sponsor. The legal side is very strong today, too. Companies are privately owned and are united in holdings, so it is very important to create a healthy platform for their products.

People who come to Tbilisi Hills are attracted to a healthy lifestyle. They want to be united around golf and to share their lifestyle with others. Age doesn’t matter. People compete with themselves,

ADB to Invest $40 mln to Improve Water Supply, Sanitation in Georgia

T

he Asian Development Bank (ADB) is contributing around $20 million in furtherance of the water supply system and sanitation in Tbilisi and nearby municipalities; also to refinance the debt of renewable energy and water operations.

ADB will also administer a further investment of up to $20 million in green bonds by Leading Asia's Private Infrastructure Fund (LEAP).

Director of Infrastructure Finance at ADB’s Private Sector Operations Department, Shantanu Chakraborty, said: “ADB’s assistance will help ensure that communities in and around Tbilisi are supplied with water 24 hours per day, and that water supply and sanitation systems in those urban centers function properly.

ADB’s anchor investment will demonstrate to potential investors the compelling investment opportunities in financing water and clean energy initiatives in

Georgia’s private sector.”

Established in 1966, ADB is committed to achieving a prosperous, inclusive,

resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.

Any marketing strategy should be based on a good quality product only. In the case of Tbilisi Hills, all products, from construction to golf, have a quality mark.

That's why it is so easy to work with this company, otherwise I wouldn’t be doing this.

None of the strategies make sense if the product quality is low. Therefore, as an agency, we always closely monitor the technical side of the project so that the company does not make the mistakes that many of its predecessors did. It is vital not to miss the value system that we so actively position ourselves in. As for golf, it's more a matter of our social responsibility.

Golf is the language through which people are able to communicate with interesting, elite, well-mannered people around the world. It is true that even golf becomes quite democratic. We are also planning an activity in the city center where anyone can touch this game in person, and realize that it is not something inaccessible. Ultimately, though, for us, golf is a tool to help us create the community group we want to be in. It can be said that we are building a new city in the city of Tbilisi.

WHAT IS NEEDED TO ATTRACT SPONSORS IN SPORTS? It is our values that determine the relationship with a future sponsor. If we have a good idea of what the project is based on and what we can offer to customers, it will not be difficult to attract a sponsor.

I don’t see any point in standard advertising today. People want to see open relationships between partners; share the ideology that the company and its partners offer. The relationship with our sponsors is largely based on the social aspect. We need to address people’s social issues and improve their quality of life.

MARKETING WELCOMES INNOVATIONS. DO YOU HAVE ANY INNOVATIVE STRATEGIES IN STORE THAT YOU WILL USE IN RELATION TO TBILISI HILLS IN THE FUTURE? The most innovative marketing strategy in Georgia will be "We do not lie". We are sincere with our customers, and our relationship with any visitor to Tbilisi Hills is based solely on mutual trust. We want to create a public space where there is no lying and we consider sports, art and the necessary conditions for rest and relaxation as the basis of that public space. Our slogan is: SWING INTO YOUR DREAMS, so we believe that where art and sport meet, and where the environment in which people are present has a quality mark, space is born for new dreams and lofty goals. Our strategy and goal is to build healthy community in Georgia.

JICA Georgia office is pleased to announce an opening for the position of National Staff Job description: ** Analyze and Survey of the Country’s current Economy and Politic; ** To collect information on the development as well as policies and projects of other donors and analyze the issues with regard to assigned programs; ** To coordinate submission of requests from the counterpart Government; ** To supervise the implementation process of assigned programs; to prepare implementation and budget plan, make logistic arrangement and make necessary coordination and negotiation with related organizations in Caucasus countries and Japan, to make necessary translation and interpretation when communicating with counterparts, and to monitor the progress of assigned programs; ** To coordinate Japanese Overseas Cooperation Volunteer’s (JOCV) activity in Georgia; ** Other tasks given by Resident Representative; Skills and requirements: ** University degree; ** Highly proficient in spoken and written in English, Japanese and Russian languages. (Regarding English and Japanese proficiency, certificates are necessary); ** Computer literacy (word, excel, power point etc); ** At least five years of work experience in the similar field; ** Analytical, open-minded, honest character; ** Excellent communication and interpersonal skills; ** Well-organized; strong sense of responsibility; hard working; ** Willingness to go to the field trips; Preferable but not mandatory skills: ** Familiarity with terms related to finance is preferred; Term: From October, 2020 till October, 2021 with possible extension (Probation period is 3 months. The employer will be able to terminate the contract depending on the performance during the probation period).

Salary: US$1300~1500/month (actual amount will be adjusted based on the past work experience and will be paid in GEL) Working hours: Monday – Friday, 9:30 – 18:00 (with lunch break from 13:00 – 14:00) Next step: Only shortlisted persons will be notified by email and invited to the interview.

Interested candidates are required to send the CV (only in English) with two contact information from previous workplaces/schools and copies of certificates to: gg_oso_rep@jica.go.jp and jicageorgia@gmail.com; no later than 14 August, 2020.

10

BUSINESS

GEORGIA TODAY

JULY 31 - AUGUST 6, 2020

The Role of Service Design in Tourism

BY NATIA GOGOTIDZE

D

ue to COVID-19, our travel bucket lists have been temporarily put on hold, as we are no longer able to travel around the world so easily and enjoy all those amazing cultural experiences. This situation has of course been reflected in many economies, especially Georgia’s, where tourism was before this a rapidly expanding industry with a wide range of economic benefits.

If we take a look at the statistics, tourism revenues to GDP were 19.9% in 2018, and 4.4% in 2009.

Tourism is actively supported by the Georgian government, which is in the midst of a 10-year development plan (until 2025) with the goals of raising awareness about Georgia on the international market and supporting sustainable tourism development. The number of international non-resident visitors was 7.8% higher in 2019 compared to 2018. However, the visitor dynamics are not evenly distributed throughout the year, with the summer season still the peak and other seasons tending to lack the needed tourist numbers. For instance, in August, Georgia usually sees more than double the number of tourists as compared to January. As such, we need a new approach to develop Georgia into a new, cultural tourism destination: using Service Design.

There is no single interpretation of Service Design. It is a human centered, creative problem-solving methodology. Service Design is all about understanding the user and coming up with various, creative alternatives to solve their problems.

HOW CAN WE UTILIZE SERVICE DESIGN IN THE TOURISM INDUSTRY? Customers change over time, seeking out meaningful experiences beyond the

regular service provision. Due to digitalization, customers now have choices from all over the world, so the standard offerings are no longer enough.

Tourism is a human-centered activity which should be built around empathy, response to customer expectations, professionalism, creativity and trust. These days, consumers undoubtedly desire experiences, and more and more businesses are responding by explicitly designing and promoting them. Because of that, the people involved in the tourism industry should think about creating memorable experiences that last a lifetime.

In order to understand more about Service Design and connecting it with the tourism industry, let’s take a look at the main philosophy on which Service Design stands.

5 CORE PRINCIPLES OF SERVICE DESIGN Service Design is user-centered: Services are created for customers; therefore, service providers should keep customers at the heart of the process. They should gather not only simple statistical data (gender, ethnicity, age, etc.), but also insights about wants and needs (what they dream of, where they work, what their friends say and do, how they spend their time, which social media they use, how they communicate, etc.).

We should take to heart all such details so as to be able to learn and design tourism services for them.

Service Design is co-creative, which means that besides users and customers, other stakeholders should also be involved in the design process, including back office employees, managers and nonhuman interfaces. Often, there are a lot of people involved in providing a service, thus we should listen to everyone, from the chef at the restaurant and the security guards at the hotel to the neighbor that lives next to the guest house you own.

It is important to remember that ser-

Image source: medium.com

vices are not static: they are sequential.

With the help of Service Design, we can create a Customer Journey Map and plan "before the trip experience", “during the trip experience” and "after the trip experience." With this in mind, we can make sure that our customer has full satisfaction in their every interaction with our service, for example, that our company is easily searchable, the booking process is flawless, offerings are described in detail, pictures are relevant and trustworthy, and the whole stay is kept in mind.

It is crucial to make services tangible and memorable for customers. Physical evidence enhances customer experience, triggers positive emotions, and extends the post-service experience. In this case, we can make special souvenirs, send a thank you note, suggest special offers, and so on. These kinds of activities increase customer loyalty and make them more likely and eager to recommend it to others.

Last but not least, all of these processes are holistic and interconnected: They all thrive for one goal. Service designers should look at the bigger picture, keeping in mind the whole environment a service takes place in; consider every single aspect of a service and the alter-

native sequences that may happen.

EXAMPLES OF SERVICE DESIGN IN THE TOURISM INDUSTRY Airports and Airlines: Many international organizations have transformed their services through Service Design. For example, Heathrow Airport used it to provide information in a more efficient and pleasant way; Virgin Atlantic Airlines redesigned the whole customer process in order to match pre-, post- flight and in-flight experience via customer journey maps and other tools. According to Virgin, the new design resulted in a 75% decrease in check-in times and a 30% increase in the Customer Service Index.

Visitors Centers and Direct Marketing Organizations: In Saint Paul, Minnesota, the Visitor Center was losing relevance because of the internet evolution. Through the Service Design process, they revamped the ‘Visitor Center Experience’. Based on customer needs, they discovered that mobile visitor centers would be more effective, and they say it has been a huge success and people are actively using it.

Hotels: Using this approach, hotels around the world have designed new experiences. For instance, in one hotel, after observing customers’ behavior, they

changed the lobby experience and created a more immersive and personal check in, where both parties could see the check-in screen and verify the information easily and transparently. Moreover, Hyatt now has nine prototype hotels globally with the sole purpose of trying out new ideas with customers, getting feedback, and improving on ideas until they are good enough to become a standard for their all their hotels.

Online marketplace: Airbnb is another good example. In 2009, Airbnb almost crashed, and was on the verge of bankruptcy. Then the founders of the company found out that the problem was the low-quality pictures that were being posted by the hosts. They rented a camera, visited hosts and enhanced the quality of the pictures (putting themselves in the shoes of the customer) and within a week, Airbnb’s revenue started to increase and today it is one of the most successful and innovative companies.

To sum up, Service Design is an interdisciplinary approach for improving and innovating customer services specifically.

Considering that tourism is a service, we can connect these two disciplines and constantly create behind-the-rope experiences.

SOCIETY

GEORGIA TODAY JULY 31 - AUGUST 6, 2020

11

The Wilds of Tusheti – A Week with the Shepherds

BY AMY JONES

I

n Europe, there is nowhere wilder or more remote than Tusheti.

Mountain pastures are carpeted with the fierce colors of rare flowers, bears and mountain goats roam the forested slopes, and eagles circle above the peaks. Occasionally, you come across an ancient village built from gray stone and slate. Medieval watchtowers rise from the hillsides, as they have done for many centuries, protecting the locals from invasion.

This mystical land in the north-east of Georgia, just across the mountains from Dagestan and Chechnya, is still alive with tradition today. The Tush locals return to their villages in early summer, when the harsh winter conditions subside. Many make the difficult journey from Alvani in Kakheti to Tusheti on foot, driving their sheep and livestock up the Albano Pass.

These are the shepherds.

Shepherds huts are perched on hillsides

and mountain tops throughout Tusheti.

From June until October, they host the shepherds and their flocks. I was lucky to spend a few days with three of them.

“To sinful wanderers: those who die with no one to remember them by,” Elizbar, one of the shepherds, raises his glass of chacha in his leathered hand.

“Gaumarjos,” we reply, clinking glasses.

This is the seventh toast already, each drunk with a full glass.

On the table in front of us, there’s a bowl of pale yellow bread, flour and water kneaded into a donut-shaped dough and boiled in a large black pot above the fire. Soso offers me the plates of hard, salty sheep’s cheese and fresh cottage cheese. Refusal is not an option.

Elizbar and Oto, two brothers, and Soso have been shepherds for almost thirty years. Each year, they bring their flock of 1,300 sheep to this place on the green valley slopes. The hut is beautiful, built from blackened stone. Inside, huge sacks of cheese are stored ready to be sold once back in the lowlands, and a fire roars in the corner.

Just up the path, past the menacing growls from Jaba and Marin, the huge shepherd dogs, there is a shelter made from wood and tarpaulin where we sleep in heavy sacks made from wool and heavy-duty canvas.

Each morning, as the sun paints the mountains golden, Oto, Elizbar, and Soso milk their sheep: all 1,300 of them. Milking is done twice per day, every day. Once in the morning and once in the afternoon.

Then, there is the cheese to make. All three men have a youthful air despite their weathered skin, aged from a life spent outdoors and hard work. A smile and a joke is never far away.

Time slows away from internet connection and clocks. Two phones hang from string from the hut – the shepherd’s only connection with the outside world for five months. As we say our goodbyes, Oto writes down his phone number and name on Facebook.

“I will accept in October,” he says with a grin. He guides us along a sheep’s trail which drops into the valley as we bid the three men goodbye.

Walking in Circles: Days 9-11

BLOG BY TONY HANMER

A

s Josh and I continued our trek south and down through Lower Svaneti, new landscapes opened up before us, ones much less seen by tourists, myself included. This road has been open only from May

through October, roughly, for some decades now, otherwise closed by snow.

This might change once it is paved, but we’ll have to wait and see whether it is doable or not. I had only been on it a few times in my two decades in Georgia, and never on foot until now.

The weather was much cloudier, though, obscuring the views of Shkhara, Georgia’s highest mountain, and others which should be dazzling us, offering only

PUBLISHER & GM

George Sharashidze COMMERCIAL DEPARTMENT

Commercial Director: Iva Merabishvili Marketing Manager: Natalia Chikvaidze

GEORGIA TODAY

EDITORIAL DEPARTMENT:

Editor-In-Chief: Katie Ruth Davies

glimpses and threatening more rain. We were as ready as we could be for this, but a real downpour would certainly make things much harder.

The ongoing road work was very gratifying to see; it has been a very long time coming. In the end, I found myself overnighting in an empty shipping containersize box belonging to Award Construction, while Josh hammocked outside it.

We did manage to get a fire going that evening to cook on, and I put a few bits of wood inside to keep dry for the morning, but we decided just to press on instead. Lentekhi was still a couple of days’ walk away.

My backpack was now at about an optimum weight for me, and I remember this time as a day or two of the easiest walking so far on the trip. I was finding new strength instead of getting broken down by all the extra exercise, hardly noticing the weight on my back because my hips were carrying almost all of it. I felt like I could continue all day, and indeed one of these days was our longest recorded walk, about 31 km or nearly 20 miles.

In the end, though, we decided to accept the offer of a dump-truck to get us farther along, to Lentekhi itself, looking at worsening expected weather. Josh rode in the back, crossing another form of transport off his list, while I joined the driver in the cab and chatted. Our walk was certainly turning into a bit of a compromise, but each non-foot part had its reasons, and we had nothing to prove to ourselves or anyone else about getting thoroughly soaked just for the sake of “being authentic”. We got off in Lentekhi, capital town of Lower Svaneti, found a campsite for the night, indulged in some k’ubdari (Svan meat pie), and turned in.

The next morning, I phoned an old acquaintance whom I’d last seen here about 15 years ago, on my first trip though this province towards Ushguli. He most gladly came and took us home for a cou-

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

ple of days’ stay with his wife, son, daughter-in-law and two grandchildren, with all of whom we hit it off splendidly.

The museum was opened early for us to peruse. Here are stored a great number of local treasures from up to millennia back in time, along with details of local heroes from more modern times and paintings of important events in Svan history, such as the visit of Queen Tamar in the Middle Ages. What the museum lacks greatly, though, is proper conditions for all these things: sealed cabinets, controlled temperatures and humidity, labels and explanations in English as well as the current Georgian.

I think of how Mestia’s museum has been brought up to world standards, and hope much the same for this place, with its hundreds of unique, important items. Of course, it’s all down to money and how loudly the wheel is squeaking: enough to get the needed attention and funding for changes? Soon, I hope.

We said our final goodbyes to Nugzar

Website Manager/Editor: Katie Ruth Davies Layout: Misha Mchedlishvili Webmaster: Sergey Gevenov Circulation Managers: David Kerdikashvili, David Djandjgava

Liparteliani and his family and continued on one more changed route. Instead of walking down to Tsana and then northwest through Samegrelo’s villages to Jvari, we would avoid the coming twoday downpour by taking three minivanbuses to Tsqaltubo, Kutaisi and then Zugdidi, where we would stay with more friends for two more days, before heading up to Jvari and, in several more days, home. This cut about 100 km off the walk, and a few days, but again made much more sense after looking at forecasts, which turned out to be spot-on.

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

ADDRESS

1 Melikishvili Str. Tbilisi, 0179, Georgia Tel.: +995 32 229 59 19 E: info@georgiatoday.ge F: GeorgiaToday ADVERTISING & SUBSCRIPTION

+995 555 00 14 46 E-mail: marketing@georgiatoday.ge

Reproducing material, photos and advertisements without prior editorial permission is strictly forbidden.

The author is responsible for all material. Rights of authors are preserved. The newspaper is registered in Mtatsminda district court.

Reg. # 06/4-309