Georgia Today Newspaper

February 14 - 20, 2014

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ISSUE No.702 IN THIS WEEK’S ISSUE

When mor als morals constrict the mar kets mark

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Ilham Aliyev hosts Giorgi Margvelashvili in Baku

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The pr oba ble proba obab scenario behind Putin epl y Putin’’s rre ply

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POLITICS

FEBRUARY 14 - 20

Ilham Aliyev hosts Giorgi Margvelashvili in Baku Georgian President Giorgi Margvelashvili is in Azerbaijan’s capital Baku for talks with his counterpart President Ilham Aliyev on bilateral ties.

According to Azernews, after an official welcoming ceremony, the two presidents held a one-on-one meeting and discussed a range of issues. During the meeting, the sides also expressed confidence that Azerbaijan-Georgia relations would continue to develop.

Azernews reported that after the oneon-one meeting, the delegations of both countries sat for expansive talks which were followed by a joint press conference. During the press conference, Aliyev and Margvelashvili praised the current relations between the two countries in a variety of fields and expressed confidence that the ties would be strengthened.

In particular, President Aliyev emphasized strong political relations between the countries within international organizations adding that there is appropriate ground for expanding economic ties as well. Aliyev also referred to the history of cooperation between Azerbaijan and Georgia in the energy

field saying that the main export pipeline which transports Azerbaijan’s oil and gas through the Georgian territory is a good example of the strong relationship between the two sides. “During our meeting, we also discussed our plans for energy diversification in future,” he said.

The Azerbaijani leader also referred to the contract of the 21st century signed in Baku on December 2013 adding that the project is a major infrastructure and energy project in Europe. “Azerbaijan, Georgia, our partners and friends in the region will do our best to accomplish this historic project. The total investment will amount to $45 billion,” he said.

For his part, Margvelashvili noted that the two countries are moving in the right direction towards a peaceful solution of regional conflicts. “Joint projects give us the best opportunities not only to make a promising future for our countries but also for the region. Therefore, partnership between our countries and our commitment to jointly implemented energy and transport projects provide us with an opportunity to make a better future for millions of people in the region and the world,” Azernews quoted

Giorgi Margvelashvili and Ilham Aliyev held a one-on-one meeting and discussed a range of issues

Margvelashvili as saying.

The Georgian leader noted that Azerbaijan is extremely important for Georgia not only in terms of large-scale projects, cooperation in the field of oil and gas and transport but also in terms of cultural, scientific and human relations.He said Georgia is eager to accommodate visits of high-ranking

Azerbaijani officials in the near future.

“We sincerely wish to host President Aliyev in Georgia. We wholeheartedly wish for further improvement of lifestyle of Azerbaijanis in Georgia and Georgians in Azerbaijan,” Margvelashvili noted.

While In Baku, Margvelashvili was interviewed by Trend news agency on

February 12. Among other issues, the Georgian president touched upon the Baku-Tbilisi-Kars railway project and hailed its importance. He called it “historic”, because it changes the geopolitics of the whole region - Asia and Europe. “The project includes Georgia, Azerbaijan and Turkey, and is a bridge between the two continents - Asia and Europe,” he said.

According to Margvelashvili, the Baku-Tbilisi-Kars railway project is at an intensive development phase, and that other transport projects will be connected with this railway in the near future. “The withdrawal of the NATO ISAF mission’s troops from Afghanistan will start soon, and we provide an opportunity for them to withdraw using this transport corridor too. However, this is only the beginning,” the Georgian president said.

According to Azerbaijani media, Margvelashvili visited the Heydar Aliyev Center, the National Flag Square and Icheri Sheher in Baku on February 13. He also visited Gakh region of Azerbaijan, the city of Gabala and finally met with local Georgians.

OP-ED

The pr oba ble scenario behind Putin epl y proba obab Putin’’s rre ply Bu Zaza Jgharkava The Sochi Winter Olympics remains apolitical benefit event forPresident Putin. One of the latestpolitical developmentsinvolving the man, who appears to be the main benefactor of the

Games, is a possible meeting with his Georgian counterpart. Responding to a Georgian reporter, who asked whether he would meet with President Margvelashvili, Putin commented: “If he has a wish, then why not”.

The question of the reporter followed

a statement of President Putin’s press office chief Dmitry Peskovwhich unexpectedly said that it had not been ruled out that President Margvelashvili and President Putin could meet in Sochi.

The statement was then followed up in Moscow. Russia’s Deputy Foreign Minister GiorgiKarasin confirmed that a potential meeting of presidents had been discussed and that further preparations would be talked about at a meeting in Prague in March.

“As for the next meeting with Mr. Abashidze, it may take place in March.

The agenda is unchanged – finding practical ways of normalizing relations in the areas where it is possible,” Karasin said.

“We should come out from the reality – without loud statements and exaggerated illusions. Taking into consideration the statements of our President and Georgia’s Prime Minister, we will touch upon the important issue of the possible meeting betweenthe presidents of the two countries.”

The predictions of the Georgian political opposition have been proved right to some extent. For Georgia, the Sochi Olympics turned out to be more of a political event than a sporting occasion.

First, there was this introduction of Georgia’s Olympic team when Abkhazia was covered with clouds on the map and the Tskhinvali region was cut by the Olympic path. Simultaneously, the Russian media was reporting with admiration that leaders of the separatist regimes of the occupied Abkhazia and South Ossetia were visiting Sochi as official guests.

Another potentially provocative element was an advertisement video, which told the history of Russia. The film showed the trip of the Argonauts to antique Sochi and the tale of the Golden Fleece. The hosts of the Olympics were trying to prove to the guests that the Golden Fleece was Russian and Jason was anchored near the Sochi coastline.

Unlike the Putin version of the Argonauts’ trip, Herodotus mentions the Georgian city of Poti and not Sochi as the homeland of the Golden Fleece in his famous “Iliad” and “Odyssey”.

There was yet more controversy on the official website of the Sochi Olympics as the place of birth of a member of the Russian team MarikaPirtakhia, ethnically Georgian, was posted. Her hometown, the occupied city of Gali, was marked on the map as being the territory of Russia. This information was later removed.

Overall, there was a considerable list of contentious instances for Georgia to deal with that took place in the first days of the Olympics. However, one sentence of President Putin was enough to shift Tbilisi’s attention.

If we put it in the former Foreign Minister GrigolVashadze’s words, Putin took only two moves to have the Georgian government facing check-mate.

“My conclusion is that Russia has a very smart government and they made a check-mate to the Georgian government in two moves – Abashidze-Karasin, wine, Borjomi, air traffic and now the highest level meeting,” Vashadze said.

According to him, in Russia they

“know very well” that Margvelashvili has no political or constitutional power.

“Putin needs a figure like that. Russians want a meeting like that, as even though nothing will be formally achieved, an impression that ‘constructive’ dialogue between Georgia and Russia has moved to a completely new stage,” Vashadze explained.

Putin’s offer is strange, especially against the background of a large number of Georgian experts saying that after the Sochi Olympics, Russia will find time for Georgia. However, it transpires that following the Olympics, Putin has decided that flights will run between Sochi and Tbilisi.

What does Putin’s offer mean and is it bait for the Georgian side? Should GiorgiMargvelashvili agree to the proposal of the Northern neighbor? And who will meet the Russian President – President Margvelashvili, Prime Minister Gharibashvili or both of them?

What should Putin want at this most importantstage for Georgia when only six months are left before signing the Association Agreement with the EU? The prognosis is clear. Moscow is making steps toward repeating what they did with Ukraine.

Although the Georgian government claims that it will never turn away from the course towards Europe but President Yanukovichonce said the same. Later, it took only one meeting with President Putin for him to change his mind and reject the Association Agreement bringing about widespread civil division and discord in Ukraine.

The J amesto wn F ounda tion er ence to Jamesto amestown Founda oundation tion’’s conf confer erence fea tur e Saakashvili as a k eynote speak er eatur ture ke speaker

HA VE YOUR HAIR CUT AT OUR SAL ON HAVE SALON AND GET HAIR DIA GNOSTIC AS A GIFT! DIAGNOSTIC

On February 14, The Jamestown Foundation will hold a conference on Russia and the North Caucasus after the Sochi Olympics in the Root Room at the Carnegie Endowment for International Peace.

According to The Jamestown Foundation, the conference will feature keynote speaker Mikheil

Saakashvili, the ex-President of Georgia. “Speakers at the conference will focus their discussion on the impact of the Sochi Olympics on the future of Russia and on the North Caucasus as well as the radicalization of jihadists in the North Caucasus,” said the announcement on the foundation’s website.

Other speakers include Andrei Piontkovsky, Russian political analyst and Visiting Fellow at Hudson Institute with the topic “Do Russians Really Want the Northern Caucasus?” as well as Janusz Bugajski, US Foreign Policy Analyst, discussing “Russia’s Powder Keg: North Caucasus and West Balkans Compared”.

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ECONOMY

FEBRUARY 14 - 20

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

When morals constrict the mar kets

by Nikoloz Pkhakadze

It is well known that government intervention, be it through taxation or regulation, can obstruct the functioning of markets. Yet there is another kind of influence that may also have strong effects on the efficiency of an economy but is much less discussed, namely the set of values, traditions, and moral standards a society subscribes to. To some extent, the moral framework of a society is reflected in its legal system and in this way affects the economy, but more often an informal consensus that some things should or should not be done in certain ways may be even more incisive than official laws.

Some years ago, 2012 Nobel Prize laureate Alvin Roth published an article that discusses cases where markets and morals collide, often leading to considerable efficiency losses (“Repugnance as a constraint on markets”, Journal of Economic Perspectives 21, 2007, pp. 3758). For example, in 1998 a referendum was carried out in California, resulting in a ban to sell horse meat for human consumption. Similarly, in Israel and Muslim countries the sale of pork is either formally forbidden or de facto impossible. Even if not incorporated in formal laws, the fierce opposition of those who uphold traditional or religious dietary laws prevents selling these kinds of meat. Such restrictions have no rational justification, as in most places of the world people live very well eating pork meat, and in some places of Italy horse meat is even considered to be a delicacy.

A somewhat funny example relates to the tradition of “Dwarf Tossing”. In this traditional Western European and American sport people who suffer from the medical condition of dwarfism are thrown around in protective clothes.

This old tradition was condemned by the United Nations Human Rights committee, leading to formal bans in several countries. As a consequence, there was more than one professional dwarf who bitterly complained that he had been deprived of his income. Paradoxically, the old Finnish tradition of “Wife Carrying” can be freely practiced and is not considered an assault on human dignity.

There are also moral restrictions that have more serious consequences for eco-

`Wife carrying’ is a popular sport in Scandinavian countries. Is it against human dignity? (Source: Wikimedia Commons)

nomic life. Throughout most of their history, Christians were not allowed to charge interests, and Muslims still today abide by this rule. The role of interests for the functioning of an economy, however, can hardly be exaggerated.

Through the interest payment, the lending party is compensated both for the deferral in consumption and the risk of losing the lent money. Without this incentive, there is no reason for those who have capital to pass it on to those who need capital for productive purposes.

Capital allocation is heavily impaired in an economy without interests, and Muslim banks have to set up sophisticated payment schemes that give incentives to lenders of money without violating religious rules.

Serious impediments to the functioning of markets can also be found in kidney exchange. It is estimated that every year, just in the USA thousands of people die due to the fact that one does not allow a market for kidneys to take place. In such a market, people in need of a kidney could buy one from persons willing to sell one of their kidneys (humans have two kidneys and can give away one of them without high health risks). If one would have an ordinary market for kidneys, the same forces of supply and demand that prevent shortages in the supply of butter, cars, and household appliances would also close the gap between the number of kidneys demanded and the number

of kidneys offered. As kidney donations in exchange for money are not allowed, people who require a new kidney, often in desperate health conditions, have to find somebody who is willing to give a kidney voluntarily. But frequently even this does not suffice, because if the blood type and other medical parameters are not suitable, a kidney may not be transplantable even if there is a donor. Therefore, it happens that people wait in the lobbies of transplantation clinics and ask everybody who passes by whether he or she needs a kidney of a certain type in exchange for a kidney of another type.

Another prominent example of this kind is the ban of prostitution that is in place in many countries, among them Georgia, the USA, and Sweden.

WHY PREVENTING VOLUNTARY EXCHANGE? Even from a moral point of view, it is not clear why “morals” should generally prevail over economic concerns.

When there is somebody willing to sell something another person wants to have, and both parties engage in this interaction voluntarily and without harming anybody else, what is the moral basis for preventing this exchange?

Of course, there are some caveats.

First of all, one should emphasize the word “voluntary”. If there is a market for kidneys and high prices are paid for these organs, this may induce special

10 Galaktion Street

kinds of crime. It may be an urban legend, but in poor countries it is said to have happened that people were abducted and narcotized, and when they woke up again, they found themselves lying on a park bench with a fresh operation scar. Below the level of “kidney theft”, some people may be urged to sell their kidneys by unscrupulous relatives or anybody else who would benefit from the revenue. And arguably, a market for kidneys would get its supply mainly from poor countries, where people might consider it an attractive deal to give away one of their kidneys for a good amount of money. Yet while this may look immoral and preposterous to some people, for those who want to sell their kidneys it might be a great opportunity to better their lives.

Another important condition is that third parties are not harmed. If one would legalize drug trading, for example, there is a danger that people under the influence of drugs would be a danger for other persons. These dangers may realize, for example, if drug consumers drive cars. There may also be additional healthcare costs if drug consumption would be legalized.

On the other hand, forbidding transactions to happen legally often does not solve the problem. For example, the ban on drug trading does not lead to a world without drugs. Rather, drug trading is now taking place in an obscure black market. In a black market, it is difficult

to impose regulations and health standards, and many of the negative effects resulting from drug consumption, like people contracting HIV and hepatitis, could be alleviated if the market would be regulated and supervised by some authority.

Also the high prices for drugs are a direct consequence of their illegal status, as most of the crime related to drugs stems in one way or another from the fact that drugs are so pricy. The so called “trigger offences”, i.e. drug addicts engaging in burglary and mugging in order to finance their drug consumption, is aggravated by the fact that drugs are so expensive and difficult to obtain.

AND GEORGIA? In Georgia, many “moral” limitations originate with the influential Georgian church. For example, the Patriarch issued an epistle against surrogate motherhood and artificial insemination. Both practices are allowed in Georgia and frequently applied.

There are women who cannot conceive, sometimes causing psychological distress, relationship trouble, and domestic disturbance. And there are women for whom it would be attractive to carry out pregnancies in exchange for monetary compensation.

Would it be legitimate to prohibit this mutually beneficial interaction because it contradicts the religious teachings of the church?

Tel: (995 32) 2 45 08 08 E-mail: info@peoplescafe.ge

6

SOCIETY

FEBRUARY 14 - 20

Georgia plans to become GMO free

By Baia Dzagnidze Living genetically modified organisms will not be freely imported to Georgia and will only be permitted entry if planted in an enclosed area with an appropriate license. These changes are spelled out in the draft Law on Living Genetically Modified Organisms initi-

producing environmentally friendly agricultural products.The government, he said, investigated the issue and revealed that there are only two companies that import living GMOs or collaborates with companies that produce such products.

The draft law envisions that living GMO related activities will be subject to administrative and criminal respon-

“If the company refuses to put a special label and the product is found to have GMOs during the control procedures, it will be fined with 400 Lari for the first time and 1,200 for the second.” ated by the Ministry of Environment and Natural Resources. The draft law does not include GMOs-sale related issues in the market or regulations.

“The scientific community still argues with each other about whether the GMO products are useful or harmful to human life,” said Giorgi Tsagareishvili, Chairman of the Environmental Protection and Natural Resources Committee at the Parliament of Georgia. “We should distinguish between genetically modified seeds and products made from them which are imported in Georgia. We don’t ban the latter, but Georgia will be declared a closed zone for living GMO raw seeds,” he explained.

Tsagareishvili noted that Georgia is “the last country” in Europe in terms of

sibility as the draft law also includes changes to the Administrative Code and the Criminal Code in order to fine companies which violate the rules. Article 18 of the Law on Living Genetically Modified Organisms states that products containing GMOs should have a clear identification label and the labeling should adhere to legislation.

Kati Laperashvili, Deputy Chief of Department of Agriculture and Food at Ministry of Agriculture recalls that in 2010, the Minister of Agriculture approved additional labeling requirements for food products with Article 7 stating that any product containing more than 0.9% of GMO ingredients must be indentified on the label. “Unfortunately, no one paid any attention to it because

there were no special labs to check,” Laperashvili complained, adding that 0.9% is the EU standard.

Kakha Sokhadze, the Head of Department of Food at National Food Agency underlines the right of citizens to know what ingredients a certain product contains and adds that previously, research on genetically modified organisms was not conducted in Georgia, due to a lack of special techniques and laboratories. The toughened regulations, he stresses, will oblige business owners to provide the required information.

“If the company refuses to put a special label and the product is found to have GMOs during the control procedures, it will be fined with 400 Lari for the first time and 1,200 for the second,”

Sokhadze clarified.

Quality Lab, a private company, was opened on February 12 and will focus on detecting and researching living GMOs and GMO foods. Irakli Chkadua, the Director of the Lab, told the media that the lab was accredited by the National Accreditation Centre with a 17.025 ISO certificate and consists of three departments – Chemical Research, Microbiology and GMOs. He said that the necessary research to determine whether the product has a GMO takes only 6 to 8 hours.

Shalva Pipia, the Minister attended the opening and stressed the importance of having such a well-equipped laboratory. “Especially now, when Georgia signed the Association Agreement with

the EU to have a free trade area between the EU and Georgia, our products need to be controlled and tested for quality for exporting to the European market. It is essential for the country to have such modern laboratories,” he added.

Nino Zambakhidze, the Chairman of Farmers Association, hailed the initiative. She noted that the new regulations might be more of a problem for the importers than for the farmers. According to her, it is now difficult for them to distinguish which seed is hybrid or a GMO, and the association supports the initiative.

Deputy Minister of Environment and Natural Resources, Shalva Amirejibi noted that the draft law will be sent to parliament next week to be heard.

BLOG

Potemkin Ol ympics or P alm Tree Ol ympics?

Olympics Palm Olympics?

Winter Olympics? Girls in Sochi practice cartwheels on grass in front of the Olympic Flame on Feb. 12. Photo: AP/Darron Cummings

By James Brooke In Sochi today, the most carefully watched page is not the Olympic medals count. It is the weather forecast.

Down here on the Black Sea coast, daytime highs are nudging 20C. People are peeling off jackets and putting on sunglasses. One can only wonder why Russia chose to host the Winter Olympics in a city with palm trees and the world’s northernmost tea plantations.

Sochi is a two-hour flight — or 1,360 kilometers — due south of the snows of Moscow. Weather history shows Sochi to be the warmest Winter Olympics host city since the games started in 1924.

But that is not the issue.

As in balmy Vancouver in 2010, all events on the seacoast are enclosed in temperature controlled covered skating rinks. The power comes from a newly gas-fired generator built by Gazprom.

Russia’s biggest company has pride of place in Sochi’s Olympic Park. At one end, are two brightly painted generator smokestacks standing like red and white

peppermint candy sticks. At the other end, is Russia’s version of the Olympic torch, a fat, yellow flame roaring through the night like a flare from a Siberian oil field.

But skating rinks only host of five of the 15 Winter Olympic sports.

The real problem is up in the mountains, where the other 10 sports take place, including downhill skiing, cross country skiing, ski jump, and biathlon.

At Krasnaya Polana, the hub for the mountain events, nighttime temperatures are not forecast to drop back below freezing until Tuesday.

On the plus side, no rain is forecast for the mountains. If humidity is low, it is possible to make snow in temperatures as high as 3C above zero. For now, experts bet that there will be enough snow pack in the mountains to get through the last mountain event, Men’s Cross Country on Sunday, Feb. 23.

Whether at the skating events and the skiing events, it is fun to play the new Sochi game: spot what’s left of the old Soviet Union!

Chances are, all but the most expert will end up with a big “nul,” or zero.

If politics are theater, President Putin has set a very large, very expensive stage to showcase The New Russia.

Eye-catching examples include: state of the art skating rinks built on an old collective farm, shiny new European gondolas strung through the Caucasus Mountains, and bridges and tunnels of the new electric train that climbs up from the seacoast.

But train your eyes on the details.

All the police officers wear uniforms that look as if they were issued last week.

There is not a dented or dirty police car in sight. Also brand new is the ‘street furniture – highway guardrails and digital traffic lights. The bristle brush truck that scours dirt of streets looks as if it rolled off a German assembly line last week. Ditto for the sleek (Italian?) ice grooming machines.

In places where Soviet Sochi could not be renovated in time, views of old building have been daintily blocked by boosterish billboards. Construction dirt

has been spray painted green.

Of course, the easy shot would be to call Putin’s Olympics the Potemkin Olympics.

The phrase started with villages that Gregory Potemkin, a military leader, allegedly built along the Dnieper River in 1787 to fool Empress Catherine II (the Great) and the ambassadors of her military allies as she floated down river to inspect “New Russia” (now Ukraine).

But in the 2014 Olympics, Putin’s strategy is more complex.

On one hand, he is showing his “New Russia” (yet again) to the world.

Who cares if an estimated 85 percent of Olympic visitors to Sochi are Russians?

The real audience is the worldwide television audience of an estimated 1 billion.

They are watching snowboarders performing acrobatic feats in Russian mountains, fireworks exploding over Russian stadiums, bobsledders rocketing down Russian ice tracks, and figure skaters performing dreamy ensembles in Russian skating rinks.

And for Russians, the president’s

goal is to inspire.

Here is the New Russia, a can do country without screw-ups. Russia’s flag waving patriotic State TV is focusing on Russian successes and heroes – not much different than the core coverage

by NBC, the American rights holder.

Will images prevail over words?

Russian respondents to a public opinion poll said they thought the chance to steal from the public was a more important motivation for officials to host the games than promoting the nation.

Indeed, some Russians are not moved. I asked my friend Ekaterina from Yekaterinaburg if she was coming to Sochi. She Facebooked back: “Well, evidently, I am not coming. The Olympics is one of the (biggest) global thefts in the history of Russia :&” Time will tell what will be the legacy of the Putin Olympics.

James Brooke is the Voice of America bureau chief for Russia and former Soviet Union countries. Reprinted with permission.

At the Olympic Park, Oxsana Kharitonova lies on the grass while posing for a photograph with friends on Wednesday, Feb. 12, 2014. Photo: AP/David J. Phillip

BUSINESS

FEBRUARY 14 - 20

7

COMPANY PROFILE

Veritas Brown | Cushman & Wakefield on its projects in Georgia Q&A with Chief Oper ating Of ve Br own Opera Offficer icer,, Ste Stev Bro Leasing – tenant and landlord representation in office, industrial and retail real estate; Capital Markets – property sales and acquisitions; Corporate Occupier & Investor Services – integrated real estate strategies for large corporations and property owners; Consulting Services – business and real estate consulting; Valuation & Advisory – appraisals, highest and best use analysis, dispute resolution along with specialized expertise in various industry sectors.

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A: Cushman & Wakefield is a globally recognized brand with an extensive client base from small businesses and multinational corporations. As partners we have access to these clients and, over the years, have gained wide-ranging experience and refined expertise to

Management at Tbilisi Mall, we are also working closely with The Bank of Georgia on their m2 project and retail asset valuations; we also collaborate with the Georgian Co-Investment Fund to support development consultancy appraisals. The Belle Vue Batumi Residence and 5 star Hilton hotel are the

provide high levels of services to this diverse customer base. We employ industry experts, qualified in their specific fields of business and members of the Royal Institute of Chartered Surveyors (RICS). Cushman & Wakefield’s vision is to be the world’s preferred real estate firm, providing the most creative and innovative services on a consistent basis and to drive meaningful value to our clients. We share this goal.

Q: How would you evaluate commercial real estate in Georgia?

A: We are very optimistic about the future of commercial real estate in Georgia; we see a lot of opportunities in various sectors such as hospitality and retail. With the Russian markets saturated in certain sectors we see more Russian development activity across Georgia but especially in Tbilisi.

Q: Which projects do you currently work on in Georgia?

A: In addition to Property & Asset

projects amongst others that we are implementing.

Q: As an international company, which projects have you carried out elsewhere?

A: We operate across the entire Central Asian and Caucasus regions and we have represented a diverse range of clients including The US Government, General Motors, Shell and EBRD in countries such as Mongolia, Tajikistan, Kazakhstan, Azerbaijan and, of course, Georgia.

Q: What are the upcoming plans/ projects of the company?

A: We are talking to a number of parties, both developers and investors, with regards to feasibility/concept analysis support, particularly in the hospitality sector. In Georgia, tourism will play a key role in maintaining economic growth and a significant growth in visitor numbers will be driven by improved infrastructure (hotels, airports etc).

Steve Brown, Chief Operating Officer

Tbilisi Mall, Tbilisi

Veritas Brown, aligned with Cushman & Wakefield, the largest private real estate services company in the world, provides an extensive range of commercial real estate services to suit its clients, including Leasing, Capital Markets, Consultancy Services, Valuation and Advisory, Research, Property Management and Serviced and Virtual Offices.

The company was established to meet the growing need for expert and professional advice in the Central Asia and Caucasus property markets and has gone from strength to strength throughout the region. Steve Brown, Chief Operating Officer, shared his outlook on the Georgian market and the company’s activities including its

services, projects and plans.

Being part of the Cushman & Wakefield global network enables us to access the global expertise of 16,000 professionals in 250 offices in 60 countries throughout the world.

Q: When did the company open in Georgia?

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Q: Could you elaborate more on the services you offer?

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The Belle Vue Batumi Residence and 5 star HIlton Hotel

8

SOCIETY

FEBRUARY 14 - 20

“We were alive” – Georgian cinema looks back and marches forward

By Joseph Smith The last year has been an unmitigated success for Georgian cinema, with several Georgian films captivating international festival audiences and picking up scores of prestigious awards and nominations. Perhaps more significantly, Georgian ‘art house’ films have also been filling cinemas back home.

Two of the most remarkable movies, In Bloom (2013) directed by Nana Ekvtimishvili and Brother (2014) directed by Teona Mgvdeladze-Grenade are ponderous social dramas that unfold against the backdrop of a shattered, lawless and wartorn Tbilisi. The Estonian-Georgian coproduction Tangerines (2013), deals with

the thorny topic of the Georgian-Abkhaz war. These exceptional films have broken new ground in Georgian cinema by tackling the traumas of the past head on, and cinema-goers can’t seem to get enough.

Apart from being Georgia’s official submission for the 2014 Oscar’s (in the category of best foreign language film), In Bloom has already swooped nineteen international prizes in the last year, including the CICAE award at the Berlin International Film Festival and the ‘Special Jury Award’ at the Montreal Festival of New Cinema.

A story about two teenage girls battling the social and economic hardships of post-independence Georgia, the film was sensationally successful with do-

mestic audiences. This was no doubt thanks to an advertising campaign that saw an atmospheric poster portrait of the two young protagonists plastered on walls and hoardings across Tbilisi.

The director and her husband, the producer Simon Gross, also coordinated screenings and focus groups designed to stimulate discussion about the issues portrayed in the film, including one in Rustavi prison.

Tangerines, which tells the story of an ethnic-Estonian farmer-turned-peacemaker in wartime Abkhazia, won the ‘Estonian Film Award’ at Tallinn’s Black Night’s Film Festival last year, and sold an impressive 37, 000 tickets in Georgia’s 20 or so cinemas – the highest-grossing Hollywood films typically sell up to 50, 000 tickets in Georgia.

The appeal to audiences, says Georgian National Film Center Director Nana Janelidze, is two-fold. While older viewers are attracted by the stunning and realistic 90s period-detail, younger viewers are drawn to the adolescent characters in films like In Bloom and the recently-released Brother, in which a teenager turns to crime to support his talented pianist younger brother.

According to Janelidze, “young people are also curious about a period they have little or no memory of, but which their parents recall constantly” with a mixture of pain and nostalgia. “We always felt we had to forget this difficult period”, she says “but now we feel we have to tell our children the truth of what we lived through.”

Apart from their social impact, Janelidze suggests that Georgia’s new cinematographic success stories represent the realization of a “new cinematographic language” which is radically different from the “philosophy and fables” school of Georgian film of the late Soviet era.

According to Keti Danelia, Executive Manager at Ablabuda Film, the “gloomy” but “cinematographically interesting” period of the 1990s has also provided Georgian film-makers with a vivid canvas on which to sketch dramatic yet sensitive plotlines about youth, love and personal loss. Although not strictly autobiographical, In Bloom and Brother were both made by film-makers who grew up in the nineties, and Tangerines depicts the transformation of enemies into brothers, leaving their “childish” bellicosity behind.

These films are also part of an ongoing cinematic dialogue about Georgia’sterritorial conflicts which, according to Janelidze, seeks to frame war as “national, not natural”.

Trip to Karabakh (2005) by Levan Tutberidze saw two hapless Georgian drug-traffickers pitch up on the frontline of a foreign ethnic conflict. The Other Bank (2009) by Giorgi Ovashvili shows a mute Georgian refugee child journeying back to Abkhazia in search of his father, where he is taken in by local Abkhaz unaware of his ethnic identity. The tendency to foreground shared values and neutral spaces is also present in Tangerines, in which a Chechen mercenary and a Georgian volunteer over-

come their mutual enmity under the watch of a non-partisan ethnic Estonian.

These films are all co-productions with German, French and Estonian companies, but this doesn’t make them any less ‘Georgian’, according to Janelidze.

Indeed, she believes that the film-makers themselves are keen to share Georgia’s turbulent history with curious international audiences, who know more about the early 1990s in Berlin and the Balkans than in the Caucasus.These award-winning new films have set Georgia and its recent past firmly on the international stage. Janelidze says, “we wanted to tell the world about our past – that we were alive then, raising children, getting by.”

BOOK REVIEW

Adibas by Zaza Burchuladze

By Nino Sharashidze War is raging in Georgia, Russian fighter planes are thundering overhead and yet, for some, the falling bombs cause no more impact than the slight ripple moving through the purified water of their swimming pools, or the rattling of a spoon in their cappuccino cups.

Filtered through the blearily and cynical mind of Shako – a journalist famed for his appearance in Georgian Pepsi ads – Adibas is a tragic satire describing the progressive falsification of his life, invaded by consumer goods, consumer sex, and consumer carnage. A “war novel” without a single battle scene, Zaza Burchuladze’s English-language debut anatomizes the Western world’s ongoing “feast in the time of plague”.

Burchuladze was born in Tbilisi in 1973. He is a novelist, screenwriter, actor and translator, making available many Russian authors in Georgian, including Dostoyevsky, Sorokin, and Bitov. Long ignored by critics because of his shocking

subject matter and experiments with language, Burchuladze is now considered one of the most important writers of postSoviet Georgian literature.

This novel was first published in 2010

by Bakur Sulakauri Publishing; in 2011 it was published in Polish (Publishing House “Claroscuro”) and Russian (Press “ad marginem”) languages. In 2013, Adibas was published in English by Dalkey Archive Press, a non-profit organization whose mission is the preservation of literary works of art through publication.

Adibas is a fake Adidas; or imitation in general, any fake or falsified thing, situation, or fact. Contemporary Tbilisi is also Adibas as Burchuladze calls it – fake city. In this book, the August 2008 War is nowhere but everywhere at the same time. War is in the background, in the foreground you can see the gays, the teenagers, the drug addicts, journalists, sportsmen all of whom know that they live in a time of war, but do not care about it and continue to live as they al-

ways did.

“The Vake swimming pool bustles with the silicon-breasted widows of mobsters, businessmen’s wives with cellulite-heavy waists, Barbie girls in huge sunglasses, gay ravers with pierced

navels, mama’s boys with all their dreams coming true, and dozens of young, firm bodies just ready to be sent to the Eurovision Song Contest. The smell of water, cosmetics, fresh chlorine, and disinfectant mix together. The water in the pool dazzles and blinds; Nobody is swimming though. Sapped by the heat and white as sheets, Tbilisians lounge under umbrellas, in pool chairs. All you’re supposed to do here is just bake beside the swimming pool; swimming itself is not looked upon with favor”.

The main character of this novel, Shako and his acquaintances are much like trend-setting modern consumers everywhere, and many of the modern accessories, from iPods to mojitos, feature here. The characters chat on Skype and contemporary pop culture and marketing are pervasive. But this Georgia is also a fraud; a poor imitation of the West.

Throughout the novel Burchuladze cleverly uses these alternate-fashion labels and logos - ‘Everlost’, ‘Emporio Armeni’, and even a variation on McDonald’s

Happy Meals – to hammer home both the superficialities of the brand name and the eager Georgian embrace of anything resembling it.

“At the end I had the feeling of having read a book about the dead. There is no saving the people in this book. They rehearse their hopeless sexuality against the background of war, insisting on behaving as though they were alive,” said Lasha Bughadze, a playwright and novelist.

In stylistic terms the book is diverse with Skype conversations, creative astrological prognoses and poetic blurbs.

It is all mixed with irony and self-irony.

“Burchuladze has achieved an exceptionally precise, supple, and accomplished text… It is his best novel… Burchuladze is reminiscent of Houellebecq; there is plenty of sex and pornography in Adibas, but unlike Houellebecq, Burchuladze’s sex is not accompanied by this bitter melancholy…” wrote Georgian-language Tbilisi-based journal Hot Chocolate.

FEBRUARY 14 - 20

Electronic signature system implemented at ProCredit Bank

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Business

Study: SMEs need more guidance on state procurement

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Kazakh Investment Company may sue Georgian Government in London Court

Yerlam Inkarbekov, the General Manager of Mangistaugeologiya, David Eristavi, lawyer at Eristavi Law Group and Adil Tursunovto, Charge d’Affaires of Kazakhstan to Georgia

By Baia Dzagnidze Aksai BMC Ltd., a Kazakh company engaged in mineral oil processing and sales, filed a lawsuit against the Ministry of Energy and Oil and Gas Agency of Georgia on October 9, 2013 after a license was, they claim, “unilaterally” revoked by the state.

Eristavi Law Group reported the case on February 10, stating that the issue has been examined at Tbilisi District Court. According to the company’s representatives, the state “is not conducive” for investments in the country as exhibited by the measures taken against the company.

Aksai BMC is a subsidiary of the Kazakh JSC Mangistaugeologiya, a company with more than 50 years of successful experience in bore drilling and maintenance work on the Kazakh market. The company has invested $5 million in Georgia and employed more than 150 local workers for the first and second stages of its work program.

In 2006, the company was granted a 25-year license from the Georgian government to prospect and extract hydrocarbon, which was confiscated in September last year when conditions stipulated in the contract were apparently not fulfilled.

According to Yerlam Inkarbekov, the General Manager of Mangistaugeologiya, one of the points of the contract was to provide drilling at a depth of

2, 200 meters. “Corresponding works have been carried out in Soviet times at the same depth and nothing was found. The expertise concluded that the drilling operations should have been made at 500 and 900 meters deep,” he explained adding that the government demanded that work be completed in three months’ time, which, he claimed, was “simply unrealistic.”

As David Eristavi, lawyer at Eristavi Law Group, explained, the company is trying to settle the dispute peacefully. “However, the Ministry of Energy intends to sell the license of Aksai BMC and is already preparing new tender conditions.

Thus, we are forced to apply to the London Court of International Arbitration, which adversely affects the country’s reputation,” he stated.

Eristavi also noted that the Ministry is not “even open to talks” with the company, “which raises many questions, especially as they are having meetings with other companies.”

“We want to deliver the right message to the Ministry to prevent such mistakes. The Ambassador is also involved in the case, so it may go to the point when the country won’t advise other investors to invest in Georgia,” he said.

“We were planning to invest an additional $10 million in Georgia, but the dispute which arose last year changed our thoughts,” Inkarbekov noted on his part. “We believe that the license has been tak-

Wazzup enters Georgia’s real estate market Wazzup, a leading European real estate software company based in the Netherlands, announced their entry into the Georgian market last week, and will follow it up with a major launch event on February 20 at Tbilisi Event Hall.

Founded in the beginning of 2013, Wazzup Georgia states that their mission is to completely transform the Georgian real estate market and bring it up to speed with western standards by using stateof-the-art technology, extremely advanced software and highly qualified management. The company, having undertaken major preparation work, is now ready to launch.

At the ceremony, Guram Palavandishvili, chief broker of Erdo Group, a real estate company, which will partner Wazzup as well as Gerben Nijmeijer, CEO of Wazzup International will introduce Wazzup’s products to the public. According to the organizers, anyone interested in attending should register at www.wazzupsoftware.ge.

Wazzup International was recently named as the third most promising software company of Europe.

As well as its native Netherlands, it operates in Austria, Latvia, Estonia, and Lithuania. Several large real estate companies around Europe use Wazzup’s software solutions.

en by force from us, but we don’t say it’s a state policy; we think that it’s a mistake of individual members of the government. The new government’s attitude towards foreign investors is clearly reflected in those actions. Georgia is trying to become a member of the EU, but I don’t recall a single country of the EU where the state had a similar attitude towards foreign investors. Directly or indirectly, this will impact on relations between the two countries,” he added.

The Ministry of Energy’s Oil and Gas Agency declined to comment, with their representative saying that the agency is not willing to make any statements before the end of the trial.

Adil Tursunovto, Charge d’Affaires of Kazakhstan to Georgia, commented that the embassy wants Kazakh companies to be protected in Georgia. “We want to expand the activities of Kazakh companies in Georgia [and] because of the friendly relationship between us, and we want this problem to be solved here,” he noted.

According to Eristavi, the third trial was scheduled for February 11 and the case was transferred to Tbilisi City Court’s Civil Board. “This means that it’s a business dispute and not administrative.

We are quite happy with the decision of the court and now are preparing to send a letter to the Ministry and hold negotiations for two weeks. If there is no collaboration, we will take the case to London”, he added.

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BUSINESS

FEBRUARY 14 - 20

Electronic signature system implemented at ProCredit Bank An electronic signature service is now available in the Georgian banking system, having been initiated by the National Bank of Georgia (NBG).

ProCredit Bank joined the initiative at an early stage and has significantly contributed to its development. The Bank’s clients can now sign an electronic signature pad for certain banking transactions rather than actual paper documents.

According to the NBG, while developing this project, they were guided by “relevant decrees” of the European Parliament and European Council and recommendations of the European Electronic Signature Standardisation Initiative. NBG representatives think that the electronic signature is a significant step forward, contributing to both the shortterm and long-term development of the Georgian banking sector.

The Bank’s freshly renovated Agmashenebeli branch in Tbilisi was the first to implement the new system, first performed by the president of the National Bank, Giorgi Kadagidze.

“Banking innovations and infrastructure reforms are an irreversible and permanent process,” said Kadagidze. “We can say with certainty that today Georgian financial institutions offer customers the most advanced products and services, which is demonstrated by the electronic signature service currently offered by the bank. A similar service is available at banks in Germany, Italy, Spain and the US. This system provides a simple, fast and safe procedure,” he clarified.

This innovative service will be introduced at ProCredit Bank’s other branches step-by-step.

“We are very pleased that ProCredit Bank’s clients will be the first to use this new service,” said Sascha Ternes, General Director of ProCredit Bank. “The project is also important in terms of its environmental impact. As you know, a huge amount of paper is used every day

for signing bank documents, and that has a harmful effect on forests,” he explained, adding that signed receipts often become useless after the services have been provided.

“By introducing the electronic signature system, we will use less paper and that will help to protect the environment.

In their turn, customers will not have to keep signed receipts, because an origi-

nal electronic copy of their documents is available to them at any time,” Ternes noted.

Based on the model agreed with the National Bank, an electronic signature has the same legal effect as a signature on paper documents, conferring identical rights and obligations on the bank and its clients. ProCredit Bank’s electronic signature system is automatically

able to identify the author of a signature and thus verify its authenticity.

As with signatures on paper documents, clients have to go to the bank’s offices to sign documents electronically, using a special device called a SignPad. The advantage of this system over a normal signature on paper is that, by entering a unique code, clients can download original copies of documents free of charge through the web portal of ProCredit Bank on http:// edocs.procreditbank.ge within 30 days of electronic signature and save the electronic documents wherever they wish.

The National Bank works with LLEP (legal entity under public law) State Services Development Agency and LLEP Levan Samkharauli National Forensics Bureau to ensure a safe and secure environment. The safety of transactions is also guaranteed by verifying that documents are intact and unchanged. Any changes made to a document and/or its content after signature renders the signature invalid.

Electronic signature is used only on documents which are directly certified by the person signing them. ProCredit Bank’s electronic signature system ensures that the client’s personal signature data are safe and that they cannot be used on any other document.

Specialists note that strong protection against forgery is very important. According to international statistics, cases where a secure electronic signature has been forged are very rare. If necessary, electronic signatures can also be examined by a forensic expert.

Franck Provost’s tips for better hair

Franck Provost is a well-known stylist and founder and the president of the Provaliance Group. With 40 years of experience, Provost is Europe’s number one in the hair care industry, comprising 2,500 salons around the world and serving about 7 million customers per year.

Provost has been sharing some of his thoughts and experiences about his career and the hair industry with the public.

Q: How did you become a stylist?

A: It was by accident. At the beginning I was quite unfamiliar with the field, however at some point in my life I had to choose a profession. One day, my mother told me that a position was available at a beauty salon. That’s where everything started to happen for me.

Q: What is important in a hairdo?

A: Style, whether the hair is long or short. The hair must be healthy, with beautiful color and quality. These are the main principles of any hair-do.

Q: If the hair is coarse and dry, what are your tips for women to return a natural glow and softness?

A: They should avoid aggressive

and strong shampoos. One should use hair smoothing creams and masks.

Q: Is it true that you should not wash your hair with very hot water?

A: Yes. In order to maintain the quality and shine of the hair, after washing the head one should rinse it with cold water. However, this process is not so pleasant.

Q: What should women do at home to take care of their hair on a daily basis?

A: One of the best techniques to maintain hair quality is frequent brushing. Try to brush your hair twice a day for a long time, it improves blood flow to the skin and is useful for keeping healthy hair.

Q: It is known that you often work with the celebrities. For whom have you crafted a hairstyle?

A: My team and I have been closely working with Television. We also collaborate with different film festivals such as Cannes Film Festival. I had an opportunity to work with Tina Turner, Romy Schneider and Sharon Stone.

I’ve done a wedding hairstyle of Adriana Karembeu and for many years the well-known and beloved TV anchor Jean-Pierre Foucault was my client.

Later they became my friends. I think

being a stylist is a very interesting profession as you may meet with special personas.

Q: Have you ever tried to die your grey hair?

A: Yes, I tried the brown highlights, but doing it regularly is very time consuming, so I gave up.

Q: Who cuts your hair?

A: My son.

Q: You work with your son Fabian, who is also a stylist by profession.

What are the advantages and disadvantages of working with a family member?

A: For me this is an advantage. We

have distributed the roles in this business and are dealing with them pretty well. Fabian’s style is more artistic.

Q: What was your childhood dream?

A: I cannot remember any specific dream, but if I imagined my life in my dream, it would have been the same as it is in reality.

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BUSINESS

Stud y: SMEs need mor e Study: more guidance on sta te pr ocur ement state procur ocurement

By Baia Dzagnidze With the goal of involving small and medium-sized enterprises in state procurement and the creation of a sustainable procurement system, Georgian Small and Medium Enterprises Association with the support of Open Society Georgia Foundation, have implemented a project Small Business and Sustainable State Procurement: Advocacy for transparency and more involvement. The project has revealed several problems including shortterm contracts, tight deadlines and lack of advisory assistance.

According to Kakha Kokhreidze, the GSMEA President CEO, decision was taken to carry out research to show the challenges characterized by SME involvement and develop recommendations that will be presented to the government in order to perform appropriate reforms. The meetings provided the information about the access of SMEs to state procurement markets, barriers, tender applications and problems of complex procurement.

“The provision applies to SMEs who can provide services to the state institutions, such as various services or infrastructural works,” said Ketevan

Jakeli, the project’s researcher at the presentation held last week.

“Because the state budget is the major source of income for many SMEs, it was significant to understand how effective the collaboration is between state insti-

cleaning and waste management and construction of bridges.

Jakeli noted that it was important to cover municipalities due to the fact that businesses operating in Tbilisi and the regions are at varying stages of development.

“The provision applies to SMEs who can provide services to the state institutions, such as various services or infrastructural works,” said Ketevan Jakeli, the project’s researcher tutions and those businesses participating in state procurement.

We covered activities of 2012 and of 2013 until August,” she explained.

Within the framework of the project, interviews with nine focus groups where held in Tbilisi, self-governing cities of Mtskheta and Rustavi and two municipalities – Kutaisi and Telavi. The groups included both representatives of state institutions and entrepreneurs, with a total of 91 participants. The study covered entrepreneurs who provide services such as shoes and uniforms, food companies, organizations implementing infrastructure projects creating stadiums,

“Both sides recognized that electronic purchase was a step forward, which made the whole process so easy,” she said, adding that after any reform, certain loopholes may appear and must be appropriately addressed.

The representatives of state institutions commented that unfortunately many SMEs do not have enough resources to handle medium-sized contracts. “Consequently, instead of dividing into lots and reduce contracts, state-funded organizations prefer to give the opportunities to companies with more experienced and better material and technical base,” stated Jakeli.

On the other hand, entrepre-

neurs raised their concerns about timing and tight deadlines when the institutions want services to be delivered quickly after the tender announcement.

To improve the state procurement system, the experts recommend that there be collaboration between private companies, government agencies and business associations to promote business ethics through educational trainings and by raising awareness to develop local competition.

Jakeli also noted that advisory mechanisms needs to be created to assist entrepreneurs on topics like business planning, service cost calculation and marketing.

In addition, the study suggests that state contracts should be issued not simply to the lowest bidder, but purchasers should also consider the quality. “It is desired that the purchasers consider innovative offers, which will enable the provider to upgrade technology due to the growing challenges of innovations,” reads the report.

Kokhreidze clarified that the next step for the association is to have dialogue with state agencies, the business sector and SMEs, adding that the recommendations will be sent to the Prime Minister ’s Economic Council and the Parliament.

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Locke with his band and singer Kenny Washington will open the Tbilisi Jazz Series. The musicians are visiting Tbilisi as part of their European Tour. Joe Locke is a leading modern vibraphonist and is among the 10 best vibraphonists of the world.

Locke is visiting Georgia with his new quartet that he gathered especially for this tour. Hence, jazz fans will have an opportunity to attend their premiere outing as well a performance of his new album.

On March 13, Panamanian virtuoso pianist Danilo Perez will continue the Tbilisi Jazz

Series. Besides being very famous and one of the most innovative musicians of the world, Perez is UNESCO’s goodwill ambassador and promotes jazz and democracy worldwide. He is also deputy rector at Berklee Global Jazz.

On April 27, famous bass guitarist Victor Wooten will visit Tbilisi as part of the Tbilisi Jazz Series program. He has received a Grammy award five times and has been playing music since the age of 5. He is acknowledged as the most innovative bass guitarist after Jaco Pastorius. Last year, Wooten participated in the

Batumi Jazz Festival with Mike Stern but on this occasion he performs in Tbilisi with his own band.

On May 17, the Terence Blanchard band will close the Tbilisi Jazz Series. Blanchard is a very prominent acoustic jazz performer. He writes music for very famous directors and has received several musical awards, including the Grammy and Emmy.

Jazz fans are therefore advised to act fast to secure tickets for the these shows, all of which start at 20:00 at the Tbilisi Events Hall on the dates stated above and on the TBC website.

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Customers of TBC Status have an exclusive chance to purchase tickets for each of the four concerts at a discounted rate.

Tickets purchased using TBC Status Card, PrimeCard or TBC Platinum Card, will be subject to a 15 or 20% discount rate. More detailed information on the discounts can be found on TBC Bank’s website.

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SOCIETY

FEBRUARY 14 - 20

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Business rre epr esenta ti ves discuss impor tance of presenta esentati tiv importance social rresponsibility esponsibility ffor or c hild car e de velopment child care dev

By Eka Karsaulidze Children are not always ready for independent life, in particular those who have been deprived of parental care and other amenities. What should be done to support them? This question was at the forefront of a conference entitled Social Responsibility for Child Care System Development held on February 7 in Tbilisi.

The focus of the conference was on children from orphanages and familytype homes. The speakers noted that adolescents who have grown up in these facilities are not capable of rational control over their lives and that they had difficulty adapting to the society and becoming successful citizens.

The Natakhtari Fund together with Association Our Home Georgia, launched Take Care of Future, a project aimed at fighting against this challenge in 2011. The Natakhtari Company designed a special new initiative, donating 1, 3 or 5 Tetri to the Fund with every bottle sold according to its volume.

In the first two years they collected more than 240,000 Lari, which has been mainly allocated for children and their needs including psychological service, vocational education, transport coast, acquisition of tools required for trainings in various subjects. Some of the money, meanwhile, was spent on internships and scholarships.

The main criterion for children being able to partake in the project is their desire. In particular, the program focuses on children aged from 15 to 18 and addresses their needs individually. With a vision that every child is unique, qualified psychologists study participating adolescents’ personalities and mental qualities and develop a plan to work with him/her.

“If a participant goes to university and gets a profession, it does not mean that our mission finishes. We continue to try to help him/her find a job, supervise them for a while to make sure they have stable income, and after that they cease to be our beneficiaries,” explained Lela Merabishvili, director of Association Our Home Georgia.

According to Merabishvili, this program has been “an impressive success”.

During 2012-2013, services were provided to 162 adolescents and as a result, they have already recorded 16 employed adolescents, 14 beneficiaries acquiring various professions, 3 students and 26 closed cases.

“We never thought that so many teen-

agers would get a job. Yes, it is just 16 from 162, but when we opened this project, our hope was to succeed with at least one child’s future success. So we have definitely achieved more than that,” Merabishvili added.

Among the speakers were representatives from various sectors, including the Ministry of Sport and Youth Affairs, the Ministry of Education and Sports as well as UNICEF and private companies.

In their speeches they underlined the importance of social responsibility in business.

“The Wissol Company has a program for students, which allows them to get an internship in the company. And we will be happy to work with the Natakhtari Company and give this opportunity to the project’s beneficiaries” said Rusudan Kbilashvili, CSR Manager at Wissol.

Other participants also expressed hope that a productive cooperation will be established in the future in terms of social programs. “We are grateful to the Natakhtari Fund for its initiative and support. But today it turns out, that a lot of companies are interested in our project’s development. And that’s pleasing because we are open and ready to receive any help from them, not just financial assistance,” Merabishvili concluded.

Tornike Nikolaishvili, Natakhtari’s Marketing Director

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CULTURE

FEBRUARY 14 - 20

15

Festivity in Yerevan and Tbilisi

By Robert Linkous In bitter January I was told by locals in Yerevan that Georgians seldom visit there, even in balmier days. Why? They weren’t quite sure, so in Tbilisi I asked a Georgian, Emzar Jgerenaia, Director of the Department for Science, Culture and Civic Education at the National Parliamentary Library, and professor of sociology at Ilia State University.

It seems there is rivalry between his country and Armenia over “who are the oldest people in the world.” Some vague consciousness may still linger, too, of 19th century Tbilisi when “people who were selling were Armenians,” and looked

erty in her city, where “people love each other” and “we are very open … we are very free.” She found that to be true even during the Soviet era, though since then it has been “very hard to live here” considering the economic challenges her country faces.

But in recent years “our government has paid serious attention to our culture,” Danielyan was glad to say, though it has not piqued as much interest in theatre as she would like, since too many “people prefer to sit home.”

According to Danielyan, however, Yerevan is a great town for classical music, liked not only by Armenians but also their government. There are “two great

“If we are not aware of European music of the 20th century, along with achievements in the United States in the first half of that century, then classical music in Tbilisi will be in danger of becoming part of a museum culture.” down upon by Georgians who “hated to trade” and considered themselves “aristocratic.” Meanwhile, these days, Armenians may consider Georgians to be people who “cannot work well,” are not “rational,” and maybe are even “crazy people.”

Georgia has a “culture of festivity,” Jgerenaia added – yet here Armenians might not want to be left out. Yerevan has “a soul,” I heard from Gayane Danielyan, who for almost two decades has reported on the arts for Radio Lib-

concert halls,” Danielyan enthused, and in January the city proudly played host to the Polish composer and conductor Krzysztof Penderecki, devoted a festival to his works, and made sure he dared not leave town until a gold medal had been bestowed upon him by the mayor.

Around town in Tbilisi, on the other hand, the theatre ticket may be hotter on any given night, but classical music has had and will have its devotees. Indeed, in the 1990s, “even when there was no electricity or heating, and danger

in the streets,” concerts were avidly supported when scheduled for five or six PM, rather than eight, I learned from Reso Kiknadze, Rector of the Tbilisi State Conservatoire, who also emphasized that autumn’s Telavi International Music Festival is always sold out.

The musical interests and expertise of Kiknadze, who spent two decades in Germany, are eclectic, including traditional Georgian music, Persian music, electronic music, and jazz, and he is determined to broaden the musical horizon in Tbilisi, believing that “if we are not aware of European music of the 20th century,” along with achievements in the United States in the first half of that century, then classical music in Tbilisi will be in danger of becoming part of a “museum culture.” Tchaikovsky and Rachmaninoff have their place, but not as a steady diet.

Moreover, at the Conservatoire

courses in journalism, management and technology have recently been added to the curriculum, though when it comes to publicity and getting the word out, classical music in Georgia may be running behind, say, the jazz festivals in Tbilisi and Batumi, which, said Kiknadze, are “working better commercially.” Indeed, there have been instances of classical concerts that one might “hear about the same day.”

“Georgians are masters in bad management,” Kiknadze wryly allowed, though “improvising, doing things on the fly” may have become “part of culture” due to a history in which “anything could happen, even “a war with Russia,” leaving “social life turned upside down.”

Besides, Georgian tax dollars nowadays may not be working as hard for the arts as they were during the previous administration, and Kiknadze is particu-

larly distressed that a generation of music professors who have given students their very best for decades may now find, as they reach retirement age, that they are neither adequately appreciated nor provided for.

But Kiknadze is confident that “Georgians are very interested in art and culture;” they “just need to get more open to things they have not experienced before.” Members of an older generation, exposed to the work of an avantgarde artist, may ask themselves, “Is he kidding, or mocking me?” But the key is, “You have to educate people,” and already a series of free concerts for young people is planned for the spring.

Danielyan too is looking toward the future in Armenia, though at present “our nation is a poor country … but we are good people, intellectual people … we will help ourselves …” The day of our conversation was an emotional one for her, as it followed the very recent death, at a young age, of Levon Kechoyan, an author whom she reveres.

What Armenia most needs, she went on with fervor, along with “more work, more jobs for people” are “free borders” and a “better relationship with our neighbors,” referring of course to Turkey and Azerbaijan, with which Armenia’s borders are closed.

“On earth we must be very kind to each other,” Danielyan believes, since “we are living a very small life” and our time on earth is so short. That might well be taken as something of a call for a “culture of festivity” to be celebrated on both sides of the Georgian-Armenian border.

Georgian filmmaker in the Arab wor ld

By Alexander Miminoshvili

A student’s short film by the young, talented filmmaker Beso Turazashvili titled “Janna” was selected among the films of seventy universities at the Zayed University Middle East Film Festival in 2011 in Abu Dhabi. Only a few films were selected for general release and one of these works belongs to Beso. To find out more about this new promising Georgian film director, Georgia Today interviewed him via Skype.

Q: Beso, before telling us about your studies at New York University Abu Dhabi (NYUAD), could you tell our readers something about yourself? Where are you from and when was your interest in filmmaking first aroused?

A: Originally, I am from Georgia but I was born in Kirov region in Russia because my parents moved there in the early 90s. My parents always wanted to go back and our family even returned to Georgia, where I studied for around a year, but because of the desire of my parents to give me and my brother bigger opportunities for development, we returned again to Russia. I studied in one of the top Russian schools where I learnt several foreign languages and acquired a very good knowledge in science and participated in several national competitions in Biology and Astrophysics. I was also very involved in extracurricular activities – I was a TV presenter on a national TV channel Vyatka. What is more, I was also writing for several magazines and newspapers editorials. When I was 15, I won a full scholarship to study in Italy and represent Russia over there. It

uneasy situation of an Iranian woman who lives in New York. She is facing several social problems and tries to figure them out… I just found out a few days ago that this film was accepted to several film festivals around the world – so, it’s traveling time again! What is more, I just finished shooting my first Georgian film Lost in Escapade.

Q: This sounds very interesting.

What will this film be about?

A: This film is about two people who used to be in love but something has happened to them. It’s a simple

Alexander Lortkipanidze. The film will be ready for viewers soon and I hope that not only international audiences but also Georgians will be able to see it in the near future.

Q: Beso, when I was becoming acquainted with your biography, I was trying to imagine how a 22-year old man managed to study at a prestigious university, and at the same time become a polyglot and work in so many places. How do you manage to combine all this?

A: I love keeping myself busy. I like

“Lost in Escapade is a simple story about how a person misses the right moment to respond with the same strong love to another. And when she realizes what her feelings are, it’s already too late.”

was just an amazing experience.

Q: Where did you study after returning to Russia?

A: Back in Russia, I started getting ready to apply to Moscow State University of Foreign Affairs to study Global Economics but I soon learnt that I had been nominated to apply to New York University Abu Dhabi by my school. After a few rounds of hard exams and interviews in Abu Dhabi, I was accepted to NYUAD. New York University, apart from being one of the top

universities in the world, is a great place with extremely intellectual people who I learn something from every day. I am double majoring in Film & New Media and Economics. I had a great chance to study abroad in Buenos Aires, New York and Sydney, which also helped me develop my vision of the modern world and taste different cultures. I used these locations and cultures as inspirations for my films. For example, I shot a short called “The Guilt of Somayyeh” while in New York. The film itself is about an

story about how a person misses the right moment to respond with the same strong love to another. And when she realizes what her feelings are, it’s already too late. Basically, we’ll see a touching (hopefully) story about a Georgian couple who are trying to solve their problems in an allegorical desert in the middle of the Arabian Peninsula. It’s a visual and psychological trip through a past with a small amount of magical realism and severe fantasies. The leading cast were Tinatin Dalakishvili and Paata Inauri with the sets and stages from Georgia and Russia. The crew was from US, Canada, Georgia, Netherlands, Columbia, Chile, Korea, Russia and South Africa. The script was written by my friend and an amazing dramatist

studying languages. Besides Georgian and Russian I speak English, French, Spanish, and Italian. Right now I am working as a strategist at Wolff Olins, an international branding consultancy based in London, New York, San Francisco and Dubai.

It took me a while to find what I really like. I tried accounting, finance, marketing, PR and fashion in the past. My experience at Stella McCartney gave me a tremendous interest in fashion and after that I started working on my personal collection, which is planned to be launched in a few months. The brand will be named after my mother Eteri and the types of clothing range from casual to evening dresses. I put all my inspirations from all over the world and my memories into my designs.

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FEBRUARY 14 - 20

17

SPORTS

FEBRUARY 14 - 20

19

Ever ything but the Bonus for Georgia in Por tugal Pummeling Onl y thr ee tries ffor or Lelos in Lisbon opens Na tions Cup door ffor or R omania Only three Nations Romania

By Alastair Watt They say time waits for no man, and in Lisbon on February 8 its impatience was also on show as the French referee called full-time on Georgia’s 34-9 victory over Portugal with three minutes still on the clock.

The home side weren’t too perturbed by the premature whistle, as it brought an end to a one-sided contest. But Milton Haig’s men were left aggrieved as it denied them the possibility of scoring a fourth try and securing a precious bonus point in their bid for both the European Nations Cup 2014 and their place at the Rugby World Cup in 2015.

Georgia’s participation in the latter is now all but confirmed as Romania defeated Russia 34-3 to leave both the Romanians and Georgians sitting comfortably in the top two automatic qualifying berths, ten points ahead of the well-beaten Russians.

A fourth successive appearance at rugby’s premier international competition will be officially confirmed if Georgia win against arch-rivals Russia at the Dinamo Arena in Tbilisi on February 22.

Given the Lelos’ recent dominance over their northern neighbors combined with the vociferous full house which is expected at the Dinamo, we can pretty much start ordering the pie and mash.

England is calling for Georgia.

However, qualifying alone would be a modest achievement. Finishing above Romania, with whom Georgia have what looks more and more like a title decider in Tbilisi on March 15, carries with it two additional benefits.

Winning the Nations Cup this year grants the victors an autumn test match against Ireland next November at the

Aviva Stadium in Dublin. This would be a rare opportunity for Georgia to get some experience of playing one of the world’s top ten in their own back yard, and perfect preparation for the challenges which await at the World Cup. The second perk of topping the Nations Cup is the World Cup group to which Georgia would be assigned. First place means a group of New Zealand, Argentina, Tonga and an African qualifier while second place would put the Lelos in with Ireland, France, Italy and Canada.

The former section is preferred, as it gives Georgia the best chance of winning two matches at a World Cup, something they have never done.

In Lisbon, Georgia eventually strolled to a 25-point victory but had to come from behind to do so after Portugal center Pedro Avila kicked a 2nd minute penalty from 30 meters.

Georgian full-back Merab Kvirikashvili soon put the visitors back on track, kicking four penalties to take a ninepoint lead before the Lelos scored their first try of the afternoon.

With a minute to play before half-time, a quick set-piece allowed Tedo Zibzibadze to batter his way through the Portuguese backline and touch down within a few meters of the Portuguese posts.

Inexplicably, Kvirikashvili then missed the simplest of conversions but nevertheless Georgia went in at halftime 17-3 in front.

The second half started much like the first, with Portugal’s Avila again scoring a long-range penalty only for Kvirikashvili to reply with one of his own minutes later.

Avila then dispatched another crisp penalty as Portugal came within 11

points of their visitors, but the horizon would only get further away for the inferior home side.

In the 60th minute, a fortunate break of the ball allowed Kvirikashvili to race over the home line for an opportunist’s score and when he struck the resulting conversion, the Georgians’ healthy lead was extended to 27-9.

The result was now not in doubt, but time was running out for Georgia to seal the bonus point that two further tries would bring.

That task was half-completed in the 72nd minute when a sweeping passing

move saw Tamaz Mchedlidze and Lasha Malaguradze set up Davit Kacharava for the visitors’ third try of the afternoon.

Kvirikashvili, looking far more dependable than he had the previous week against Belgium, then kicked the conversion to give Haig’s side an emphatic 34-9 advantage.

Georgia then pressed for that coveted fourth score and were mounting some encouraging pressure on the Portuguese when suddenly, and without explanation, referee Marchat blew for full-time with 77 minutes, and not the regulation 80, on the clock.

There was confusion but, typical of the sport, no dissent as Georgia emerged with an impressive, yet somehow irksome win.

Georgia now sit atop the Nations Cup table and the combined World Cup qualification table, but only points difference keeps them above Romania.

With Belgium and Portugal swept aside with the minimum of fuss, Georgia now look forward to clinching World Cup qualification against Russia for whom anything but a drubbing, would be a bonus.

SOCIETY / BLOG

Waiting...: Svaneti

By Tony Hanmer The struggle with our freezing house water pipes seems to be over for the moment. I’ve isolated the worst trouble point — ironically, “The call is coming from inside the house!”— as the pipe to which I attach the end of all that 150 m or so of outside hose, under the bathroom; this seems to be the most prone to night freezing, causing the whole set of pipe attached to it to follow suit, even when water is running through it and out into the bathroom. Funny.

Solution: simply disconnect the outer pipe from the house intake at night, and let the water continue to run all night outside, in the yard, which has proven itself successful. We don’t need water at night anyway. It works. Soon we’ll lose the below freezing night temperatures anyway, so this risk will vanish; and then, slowly but surely, the underground “permanent” water pipe which we usually use will thaw out, when the ground it’s in does so, and we will have our regular water supply back. Until next December, by which we must have

a better answer to winter water woes.

Never again, please God! I might install an electric heater under the floor in the bathroom, near where the water pipe comes into the house. I can do this via the crawl space under the house, not needing to dig up any of the precious new floor which we’ve just had tiled. It could be enough to warm the space away from freezing in the minus 10-12 C or so lows we get here in December or January. Must get some advice on this.

In my yard are quite a few hundred

metres of thicker plastic pipe, deposited there by the village mayor until this spring. Apparently they’ll then be revamping our local water system to some great degree.

I’m not alone in looking forward to this with mixed feelings, including a bit of dread, having spoken to people in Mestia who have also had new water done outside their control. Result: they’re now on scheduled water, which is sometimes on, sometimes off. In other words, quite a bit worse than before the “improvements”.

What we need somehow to do, as a village, is tell the water people when they come: You can do this... but only if you guarantee that you’ll see it through to a successful conclusion, whatever that takes. Reasonable? Unreasonable would be to take the “risk” (which it shouldn’t be: it should be calculated and planned as much as possible!) and then end off worse. Water is crucial, and it must work properly, or we’ll all be miserable for a long time, embittered by poor excuses.

If the water workers, and their bosses, aren’t from here, they have less personal investment in the project, which for them is running in a community perhaps far from their homes. I wonder, can we individually opt out as

households, or is it all or nothing?

To be honest, I look rather sceptically on the current infrastructure and business environment in Svaneti. Although the road up from Zugdidi, and Mestia town, have undergone massive, genuine improvements in recent years, the centre of Mestia is languishing, empty, its vast amount of square metres of glass shop windows gradually getting broken by accident or malice. Talk about dashed hopes!

There are so many new businesses which could have been set up there to take their chances, but the thing’s been abandoned in mid-swing. Is the current government punishing Svaneti for its voting caprices?

Or have the investors been scared away? Mestia should be flourishing in all seasons now, its ski infrastructure again at an international level and class, and the town map bursting at the seams with guest houses and hotels. Spring through fall have never been a problem tourist wise; there were even stragglers cautiously coming in—I was one of them—in the bad old bandit days of the late 1990s and pre-Misha. How can things be allowed to go backwards now?

Now, of all times, when so many promises were made to us and things begun in our midst?

Tony Hanmer runs the “Svaneti Renaissance” Facebook group, now with over 700 members, at www.facebook.com/groups/SvanetiRenaissance/

GENERAL MANAGER - George Sharashidze BUSINESS MANAGER - Iva Merabishvili

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