Issue no: 1240
• APRIL 3 - 9, 2020 • PUBLISHED TWICE WEEKLY
FOCUS ON THE GOVERNMENT FIGHT
Measures become stricter as Georgia works to contain the spread of COVID-19
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In this week’s issue... Survey Shows 55% Distrust Supreme Court Appointment Process in Georgia NEWS PAGE 2
Patriarch: Spiritual Nourishment Necessary, We Will Not Close Our Churches NEWS PAGE 2
An Eastern Partnership that Delivers for All POLITICS PAGE 4
Regional Impacts of COVID-19 Shock to HoReCa Sector ISET PAGE 6
BAT Working on Potential COVID-19 Vaccine through US Bio-tech Subsidiary Doctors at the First University Clinic at midnight, after a planned examination of patients. Photo by Janny Jankhotely
Georgians in Quarantine: A Personal Story INTERVIEW BY NINI DAKHUNDARIDZE
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s of Thursday, Georgia has 130 coronavirus cases and 5550 people currently in quarantine. To explore the strange reality of quarantine, GEORGIA TODAY conducted two interviews with two quarantined Georgians. The first interviewee is Mariam Katsadze, a 21-yearold medical student who went through medical practice in Germany from February to March. She thought her one month spent in Germany would be an outstanding experience. She was right, it was, but not only for her career. Coronavirus starting changing its breakout epicenters in early March, seeing Germany quickly becoming one of the European countries with the most coronavirus infections. At the time of writing, Germany has 78,115 confirmed cases of COVID-19 and 944 fatalities. Mariam walks us through her experience with German measures to tackle the virus, coming back home and being put in quarantine.
TELL US WHERE YOU WERE WHEN CORONAVIRUS STARTED SPREADING THROUGHOUT THE WORLD. In February, when Europe was not yet the new epicenter of the coronavirus, I flew to Germany.
BUSINESS PAGE 8
Beeline to Provide Transportation of Medical Staff of Two Hospitals in Tbilisi to Combat Coronavirus SOCIETY PAGE 9
Interview with an Artistic Couple, Part 2: Lia Shvelidze CULTURE PAGE 11 Prepared for Georgia Today Business by
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I worked as a junior doctor at the Klinikum Stadt Soest in Soest, Germany. The spread phase of the virus started in Germany at the beginning of March. Speaking from the example of the clinic I worked at, from March 13, visitors were not allowed in the clinic and the employees could only get in with a special pass. From March 18, after a few cases of the COVID19 infection were confirmed inside the clinic, the reception was isolated and the clinic stopped accepting planned patients or performing oper-
ations. I worked in the neurology department and we switched to a different style of working. Our priority was to maximize the discharging of patients from the hospital, as the clinic was getting ready to take in more and more COVID-19 cases. Unfortunately, prior to March 20, no special measures taken to protect the doctors: we were not even wearing face masks or medical gloves. They only started changing the approach from March 23, the day I left Germany. Continued on page 10
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NEWS
GEORGIA TODAY
APRIL 3 - 9, 2020
Survey Shows 55% Distrust COVID-19 in Supreme Court Appointment Georgia: The Process in Georgia Gov’t Fights Back BY THE GT TEAM
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would like to thank each and every citizen, particularly the residents of Tbilisi, for the understanding with which they have approached the new curfew imposed throughout Georgia,- Georgian Prime Minister Giorgi Gakharia stated at the session of the Inter-Agency Coordination Council on the Coronavirus this week, noting that it shows how the citizens perceive a sense of shared responsibility. He was referring to the prohibition of citizen movement on streets from 9 PM to 6 AM. During the day, citizens can leave their homes to go grocery shopping, to pharmacies or banks, but should carry their IDs with them in case they are stopped and questioned by police as to the reason for their being out. The PM went on to discuss the decisions taken to support the economy, which sees the gov’t allocating 2 billion GEL for direct assistance to the economy, aimed at the retention of jobs as well as supporting companies to ensure ongoing production. "We understand that each of our citizens has suffered a direct economic impact in connection with the measures that the government is forced to implement in order to protect their health. This damage is often direct and tangible. In many cases, people have lost their income and their jobs. Precisely for this
reason, at this stage, and considering the fact that this crisis differs from all other crises because it is impossible to make accurate predictions concerning its duration, as well as in terms of correctly estimating the damage to the economy, we are forced to utilize even the modest capabilities of our economy today in a manner that is as effective and rational as possible," the PM stated. To this end, the government has decided to fully fund the utility payments of all Georgian citizens who consume less than 200 kilowatts of electricity per month and less than 200 m3 of natural gas per month for the duration of three months – March, April, and May. "Ultimately, all of us understand that our goal is to overcome the virus in such a manner that our economy can retain the potential for rapid growth, and so that job losses are minimal. It is difficult to make concrete and high-quality predictions. We must operate while facing new challenges on a daily basis, and our main goal should be to act in a rational and effective manner in terms of management and budget spending, while also acting effectively in terms of the fight against the virus," he stated. Further changes made this week, as the number of confirmed cases hits 130 and 26 recovered patients are discharged from hospital, see the full restriction of all travel by public transport countrywide and the prohibition of more than three people travelling in any one car (or taxi).
US Representative to NATO Reiterates Full Support to Georgia's NATO Integration
BY MARIAM MERABISHVILI
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e are committed to the absolute security of our NATO allies, as well as our partners, like Ukraine and Georgia, where there are encroachments by Russia of their sovereign needs, Kay Bailey Hutchison, United States Permanent Representative to NATO, said during a live conference. In response to a question about joining the Alliance, she announced their full support to all aspirant countries like Georgia, Ukraine and Bosnia-Herzegovina. The Representative said she hopes that these countries will do more and continue carrying out reforms on their democratic path to approximating the Alliance. In her statement came the news that Georgia is to receive a new package of support from NATO which will be discussed at the foreign ministerial on Thursday. “We are committed that all of those
countries will become future members of NATO. We want all of them," she said. "We have been to Georgia, we have been to Ukraine. We want their reforms to move forward. Russia must let those countries have their sovereign rule, their sovereign territory, their boundaries, and we are very intent on helping Georgia and Ukraine continue to respond to the Russian aggression that has taken over parts of their countries, and we are not going to back away from these efforts. "We have an open door. I think that’s what the accession of North Macedonia shows. And we are helping our partners, Georgia and Ukraine. We are giving them a package that will be discussed on April 2 at the foreign ministerial. I believe the foreign ministers will approve a package that continues to build on our support and help for Georgia and Ukraine, and we are working with the Government of Bosnia and Herzegovina to try to get their reforms in place and make sure that their minorities are working with their majority to have a government that can produce those reforms in that very important area as well”.
Image source: thedailybeast.com
BY TEA MARIAMIDZE
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ifty-five percent of the Georgian-speaking population, interviewed by phone, said they do not trust the process of the appointment of judges at the Supreme Court of Georgia, according to the survey conducted by Caucasus Research Resource Centers (CRRC) Georgia. The results of the survey, conducted on January 30 - February 10, 2020, were reported by the Institute for Development of Freedom of Information (IDFI) and suggest that people in Georgia are divided between trusting and distrusting judicial institutions. While more than half of the public have heard about the Supreme Court appointment process, they have little trust in it, and largely have not heard of the new judges. At the beginning of September 2019, the High Council of Justice (HCOJ) provided a list of 20 Supreme Court Justice candidates to the Parliament of Georgia for approval. In September-November 2019, parliament conducted the hearing
process for candidates, and on December 12, 2019, 14 candidates out of 20 were appointed to the Supreme Court. The judges were supported by the parliamentary Georgian Dream (GD) majority; however, the opposition parties, including the United National Movement (UNM), European Georgia and former ruling party lawmakers, refused to participate in the voting, claiming a number of judges lacked transparency and trust from civil society. Georgian Parliament’s Legal Issues Committee completed interviews with 20 candidates of the Supreme Court judges in September 2019. A lengthy process of judicial selection, which started in May 2019, aimed at increasing the number of the Supreme Court judges from eight to 28. Interviews with the candidates at the Parliament’s Legal Issues Committee were strongly criticized by the opposition, civil society organizations and non-judge members of the High Council of Justice, and were often held amid protest rallies. The survey conducted by CRRC Georgia revealed that the majority of the Georgian-speaking population (63%) reports that they have heard about the hearings in parliament for Supreme Court
candidates, and more than half of the population (54%) says that they are aware of the outcomes of the hearings. More than half (55%) of those who have heard about the appointments report that they do not trust the process. Similarly, more than half (53%) of the people who had heard of the process think that parliament carried out the appointment process unfairly. When asked whether the justice system will improve, stay the same or get worse after appointment of the candidates as Supreme Court judges, 26% of the adult Georgian population who were interviewed reported that the appointment of the 14 candidates will improve justice in the country, while 26% think that the state of justice will stay the same and 20% believe it will get worse. When asked to name their top three important events of autumn/winter 20192020, only 3% of the Georgian-speaking adult population named the appointment process of Supreme Court justices. The most commonly named events were the protests sparked by the failure to pass a fully proportional electoral system (13%), Georgian doctor Vaja Gaprindashvili’s abduction by the South Ossetia occupation forces (10%), and the mass arrests of the above-mentioned rally participants (10%). 49% of respondents could not identify a most important event during the period at all. To note, the OSCE Office for Democratic Institutions and Human Rights (ODIHR) said in its second monitoring report published in January 2020 that while legal reforms regulating the appointment of Supreme Court judges in Georgia are an important step toward improving the independence of the judiciary, they fail to ensure an impartial process based on clearly defined and objective criteria without the influence of partisan politics. The organization said that the final plenary vote on the judicial appointments took place amidst a political crisis, a boycott by the opposition, and widespread calls for an adjournment. ODIHR’s monitoring team observed the whole process of the appointment of judges, including the hearings of the 20 HCJ nominees, the committee vote, and the final plenary vote. Despite some positive aspects, their overall assessment found that neither the HCJ nor the parliament had taken sufficient measures to ensure objectivity, fairness, or consistency during the selection process.
Patriarch: Spiritual Nourishment Necessary, We Will Not Close Our Churches BY ANA DUMBADZE
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piritual nourishment is just as important and necessary for believers as food - Catholicos-Patriarch of All Georgia, Ilia ll, said. "Therefore, it is not possible to close the doors of the Church and it will be open to those who wish to come and receive spiritual strength." The Patriarch noted that worship services are an integral part of priesthood duties and are of paramount importance to the entire nation. "Given the current situation, I would like to address you, our spiritual children, and give you the following advice: follow the appropriate instructions; observe the established distance while near to other people, including in the temple or the yard of the temple; during the divine liturgy (and other services), only clergymen should remain in the church, while
a limited number of parishioners are allowed to join them in large cathedrals, though it is generally recommended that parishioners remain in the yard of the church. Additional advice will be given to the clergy and temple servants, given
the specific circumstances," he said. "Some believers who are at risk due to age or weaknesses, as well as those who are particularly cautious about contracting the virus, should stay at home,” reads the statement of Georgian Patriarch.
NEWS
GEORGIA TODAY APRIL 3 - 9, 2020
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Nenskra HPP: Preparatory Construction Works Are Underway The works are being carried out by subcontractor Georgian Construction Consortium. According to the company, preparatory construction works of Nenskra HPP are progressing. Works are underway at several locations at the same time in Chuberi: six bridges with a capacity of 100 t; widening of the road and arrangement of rock layers; preparing the foundation for the pipe-bridge; excavation of fundamentals of the socalled Residential Buildings for Operators Village, etc. The works are carried out in accordance with the recommendations issued by the Ministry of IDPs from the Occupied Territories of Georgia, Labor, Health and Social Affairs of Georgia. Disinfection works are carried out regularly on the Nenskra HPP project
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enskra HPP is one of the major infrastructure projects that will not stop even under the general quarantine announced in the country due to the coronavirus pandemic. “Currently, preparatory works are underway in Chuberi villiage, Mestia municipality,” company representatives say. “Despite the current situation, we are actively continuing to build roads and bridges. Work is carried out in full compliance with sanitary-epidemiological norms, in accordance with WHO recommendations and regulations established by the Government of Georgia. Up to 300 people are employed at the project, 130 of whom are locals".
site, on the company-owned office and residential premises, as well as on catering and vehicles, to prevent the spread of coronavirus. JSC Nenskra Hydro is a project-based company established in 2015 as a result of cooperation between the state-owned Korea Water Resources Corporation (K-water) and JSC Partnership Fund.
The company is developing the Nenskra Hydropower Plant Project in the Nenskra and Nakra river Valleys in Mestia Municipality of Samegrelo-Zemo Svaneti region. The 280 MW Nenskra Hydropower Plant will generate approximately 1’200.00 GWh of electricity annually, which will be fully consumed by the Georgian market.
EU Report: Russia & China Spread Coronavirus Disinformation BY NINI DAKHUNDARIDZE
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he latest update from the European External Action Service's (EEAS) team dedicated to highlighting disinformation digital tactics was published on Wednesday, claiming that Russia and China are using government-backed media to spread fake news about how the EU is dealing with the coronavirus. "In the EU and elsewhere, coordinated disinformation messaging seeks to frame
Source: Politico.com. Image source: CNBC
vulnerable minorities as the cause of the pandemic and to fuel distrust in the ability of democratic institutions to deliver effective responses," reads the analysis. "Some state and state-backed actors seek to exploit the public health crisis to advance geopolitical interests, often by directly challenging the credibility of the European Union and its partners." East Stratcom group, at this time focusing on debunking fake news originating from Russia, reported 150+ cases of proKremlin disinformation related to the global health crisis since late January. The EEAS analysis reads that China and Russia in the past few weeks have
attempted to undermine Europe's response to the healthcare crisis. This effort included promoting messages internationally (within the EU and as far as North America) that the EU was failing to tackle the pandemic, and that the Union was betraying its core values in the region's response. This way the fake news established the view that Moscow and Beijing were the only ones following the right strategy to fight COVID-19. Both Russia and China stand firmly on their rejection of these accusations, claiming that they have not spread false reports and disinformation online.
Global Hackathon Targets Covid-19 Crisis BY AMY JONES
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global hackathon is uniting participants around the world to find and create solutions for the socioeconomic crisis unleashed by the coronavirus epidemic. The brainchild of Accelerate Estonia, Garage48 and Guaana, more than 40 regional hacks have already taken place across 15 time zones, generating over 30 ideas, eight of which are already in use. The first hack took place in Estonia from 13 to 15 March, attracting more than 1,300 participants. Estonia has a thriving tech scene. Despite having a population of just 1.3 million, the country has generated four Unicorns, including Skype. The Estonian government, nicknamed “e-Estonia,” is a pioneer of all things digital. Teams in Estonia found various solu-
tions to the crisis over 48 hours, for example, Zelos, a platform to connect vulnerable, at-risk people with volunteers via a call center and a dispatch app to combat isolation and loneliness. One group designed a “Coronatracker” which could offer real-time data to individuals and governments, enabling them to better monitor the situation. A project, Share Force One, was created to allow companies to exchange their workforce, to help those who need more employees and those that are struggling. Another global hackathon will take place from 9 - 12 April and is looking for participants. Teams will develop ideas for urgent solutions to the current crisis, as well as working to build resilience post-pandemic. Organizers are expecting over one million people to participate in the Global Hack. “It will be the biggest hackathon held, uniting humanity with purpose online at a time when we are
being separated physically,” noted Thomas Hendrik Ilves, former President of Estonia, adding that almost half of the world is now under lockdown. “This is a unique time when the whole world is fighting the same problem
together. If we move fast, the Global Hack can relieve a lot of immediate pain people are suffering as well as offer sustained social and economic benefits.” The hackathon has attracted global attention from the likes of Forbes,
Silicon Republic, and GovInsider, as well as support from prominent figures. Prominent Silicon Valley techie Steve Jurvetson and the Head of TED Chris Anderson will mentor participants. The hackathon encourages participants to base their ideas around the UN sustainability goals that cover future challenges. They can choose from arts and creativity, crisis response, economy, education, empowerment, environment, governance, health and wellness, media and entertainment, mental health, and work. “The entire world is looking for solutions to the same looming problems at the same time, and if we move fast enough, the global hack could have a social and economic impact beyond our imagination,” reads the event page. Teams from Georgia and around the world have already signed up to the Global Hack to put their minds towards tackling the crisis. Head to theglobalhack.com to take part yourself.
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POLITICS
GEORGIA TODAY
APRIL 3 - 9, 2020
An Eastern Partnership that Delivers for All OP-ED BY JOSEP BORRELL AND OLIVÉR VÁRHELYI*
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n this challenging time, marked by the coronavirus outbreak, we can see how important international cooperation is. Over the last decade, the Eastern Partnership has brought concrete benefits for people in Georgia and across the European Union’s eastern neighborhood. Small and medium enterprises (SMEs) are the backbone of Georgia’s economy, and since 2009, EU support has helped over 40,000 Georgian SMEs and microenterprises access loans on better terms to develop their activities, increase incomes and create jobs; Since 2013, EU assistance to link Georgia’s education programs to market needs have helped over 30,000 Georgians find employment through more relevant vocation education courses and labor market tools, such as Worknet.ge; Over 90,000 Georgians living in smaller towns and villages have easier access to 200 public and banking services as well as free internet and libraries through the EU’s support to the establishment of 76 Government Community Centers throughout the country Under Erasmus+, almost 7,500 students and academic staff exchanges have taken place between Georgia and the EU. Over 9,300 young people and youth workers from Georgia have been involved in joint exchanges, training and volunteering projects. To ensure our partnership continues to deliver in the fast changing world of today, we need to do even more, and better. To shape our priorities, we consulted last year with people, businesses, organizations and governments of 33 countries from across our shared region. While there was appreciation for the results achieved, there was also a clear expectation that we would enhance our cooperation when it comes to jobs and prosperity, investments, connectivity,
good governance and common challenges such as climate change and the digital transformation. And now we present our response to these consultations with long-term objectives for our policy beyond 2020. Our continued engagement with the Eastern Partnership countries remains a key priority for the European Union. Our proposals for the future are ambitious yet achievable. They build on existing cooperation but also identify areas where we need to go further. They are built on fundamental values as the heart of the EU project, such as the rule of law, protection of human rights and fight against corruption. Concretely, we are proposing to our partners to work together on the following objectives:
TOGETHER FOR RESILIENT, SUSTAINABLE AND INTEGRATED ECONOMIES Strengthening the economy is key to meeting citizens’ expectations and reducing inequality, and for making our partnership a success. We will focus on job creation and economic opportunities through increased trade, investments, stronger connectivity, in particular in transport and energy, and linking education, research and innovation better with private sector needs.
TOGETHER FOR ACCOUNTABLE INSTITUTIONS, THE RULE OF LAW AND SECURITY Good governance and democratic institutions, the rule of law, successful anticorruption policies and security are essential for sustainable development and the consolidation of democracy. They are the backbone of resilient states and societies as well as strong economies.
TOGETHER FOR ENVIRONMENTAL AND CLIMATE RESILIENCE To protect our world for generations to come, we all need to take responsibility.
Josep Borrell, High Representative of the EU. Source: ecfr.eu
The EU will work with its partners to improve the resource-efficiency of economies, develop new green jobs and promote local and renewable sources of energy.
TOGETHER FOR A RESILIENT DIGITAL TRANSFORMATION The EU will further invest in the digital transformation of our partners, aiming to extend the benefits of the Digital Single Market to partner countries. Our joint work will also focus on strengthening e-Governance, scaling up digital start-ups and supporting the cyber resilience of partner countries.
TOGETHER FOR RESILIENT, FAIR AND INCLUSIVE SOCIETIES
Free and fair elections together with transparent, citizen-centered and accountable public administrations are essential for democracy. The EU will continue to focus on these key areas, engaging with civil society, which needs to be given sufficient space, and supporting free, plural and independent media and human rights, as well as ensuring mobility and people-to-people contacts, all particularly important also due to growing disinformation against EU values. Over the past decade, trade between the EU and its eastern partners has nearly doubled. Over 125,000 small and mediumsized businesses have directly benefitted from EU funding, creating or sustaining more than 250,000 jobs. We are better
connected thanks to improved transport links and easier access to high capacity broadband. And according to recent surveys, the EU is the most trusted international institution among Eastern Partnership citizens. We will keep this resultsoriented approach and look to do much more together in the face of today’s challenges, including when it comes to crises such as COVID-19 pandemic. And through this we will build an even more ambitious Eastern Partnership that delivers for all and continues to bring our shared continent closer together. *Josep Borrell is the High Representative of the EU and Olivér Várhelyi is the EU Commissioner for European Neighborhood Policy and Enlargement Negotiations.
Georgia & the Rise of Digital Geopolitics OP-ED BY EMIL AVDALIANI
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he world order is fastevolving as the competition between the US and rising China threatens the very structure the post-Cold War period was based on. There has been much discussion on how the rise of China will influence the Eurasian continent. Several scenarios for Eurasia 2050 exist nowadays. One of the thought trends argues that China will become a dominant force in Eurasia, almost entirely replacing the US power in military as well as economic spheres. Though radical, many tend to regard the scenario as a viable possibility. Some even think that there might follow dramatic steps in the decoupling of trade between the US and China. Though painful, in the end both Beijing and Washington might actually choose a certain level of decoupling as a sure way to be less dependent on, i.e. less vulnerable to, each other’s trade policies. Another scenario is less radical, seeing China by 2050 becoming powerful, but not as much as would be necessary to dominate the world economically and militarily. I would follow this line of thinking, as it is important to put aside all those extreme geopolitical scenarios about a swift change in the global bal-
Image source: ips-journal.eu
ance of power. A middle scenario is more probable, which would argue for the world balance of power being subdivided among the US, China and several other regional powers across Eurasia. These might compete but at times also cooperate with each other. Whether readers agree or disagree with the proposed scenarios, there is one sphere, the digital (technological) realm,
where both Beijing and Washington have already started pursuing different scenarios in a clear decoupling of spheres. Over the past several years, competition in the technological sphere has become an integral part of the US-China relations. The US, which through its digital companies has enjoyed a leading role in the world by the number of people and states cooperating closely with Wash-
ington, feels how similar are measures taken by China in recent times. This competition from the Chinese involves winning masses to sovereign digital platforms such as e-mail, social networking, specific encryption technologies, etc. through Huawei, WeChat and others. Certain spheres of influence are already emerging where China’s neighbors are more likely to fall in line
with Beijing’s technological standards. This also involves a purposeful policy of exporting Chinese technological novelties (5G internet) abroad. Moreover, the country made several major agreements with its neighbors in Central Asia to build systems of face recognition. As the case with Chinese company Huawei showed, when the US pressed its allies and partners to abstain from cooperating with Beijing, the 2020s and beyond will see almost every Eurasian state, including Georgia, having to choose between the opposing technological blocs. The decision to fall into either the American or Chinese bloc will in many ways influence Tbilisi’s foreign-policy. Increasingly, partnership with either of the opposing sides will mean what foreign policy a state chooses. Considering how close the cooperation is between Georgia and the EU and US, the country is more likely to choose the western digital bloc. Choosing the Chinese bloc could complicate Tbilisi’s position as it would almost certainly harm Georgia's cooperation with the European and American security or military agencies. As the case with Huawei showed, the US will be increasingly more perceptive of China’s digital growth in the coming years. Keeping its allies and partners across the globe within its technological sphere would mean choosing its foreign policy agenda. Closer to China, further from the US/EU, and vice versa.
POLITICS
GEORGIA TODAY APRIL 3 - 9, 2020
5
Covid-19 & the Russian Propaganda Pandemic OP-ED BY DAVID BRAGVADZE, GEORGIAN INSTITUTE FOR SECURITY POLICY
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ecember 31, 2019: the first confirmed case of the new, malignant thread that would be later known as Covid-19. Fast-forward to today, with the whole world embroiled in a battle against the infection that on March 11 the World Health Organization officially recognized as a pandemic disease. January 31, 2020: The Russian Federation officially confirmed the first case of coronavirus on its territory. Considering the close ties between Russia and China, there were fears that Russia might become an epicenter of the pandemic, although official statistics in Russia suggest nothing of the sort. As of March 29, Russia has only 1543 confirmed cases, which is an incredibly low number for a country of 145 million. Is the Russian data realistic? This question is being asked more and more often. There are many who suspect the Kremlin decided to conceal the real picture and in reality, the situation is far graver. Yet another theory claims that the Russian Health and Welfare system just doesn’t have the necessary resources to manage the epidemic, including the necessary testing to realistically gauge the real numbers. And while the Kremlin seemingly disregards the problem, a new type of viral video appeared on Russian social networks: in their thousands, Russian citizens are calling hospitals, clinics and the like, telling the staff they are exhibiting symptoms characteristic to coronavirus, yet are left without qualified advice, including the very basic, already folklorelevel “stay at home”. Other videos showing rows of buses with “Russian guard” insignia entering Moscow, adding to the feeling that something far more sinister
is going on than the official statistics suggest. The new virus doesn’t discriminate: it up and knocked on the Kremlin’s door too. Putin’s Press Speaker Peskov recently confirmed that a staff member of the President’s administration was diagnosed with COVID-19. He added, seemingly to comfort the millions of well-wishers worldwide, that said staff member had not had any contact with the President. Whether he himself had contact with said patient, Peskov did not specify. What we know for sure is that Russian singer Lev Leshenko was diagnosed with COVID-19, and that Peskov recently attended his birthday party. Putin seems to have lucked out again: Leshenko’s birthday was on February 1. So either the Russian President is very lucky, or he is invulnerable to earthly diseases. And yet, in the midst of such a situation, the Kremlin decided it should spare a thought for an officially confirmed epicenter of the epidemic outside of its borders. Apparently, pandemics is a great time to spread Russian propaganda, and they lost precious little time finding a suitable target for it: Italy, the country that has so far suffered the most in Europe. There was a prevalent notion on Italian social media that in these trying times, Europe and the proverbial West had forsaken them to their troubles, and that it was maybe time for Italy to follow the British example and start engineering their own exit out of the European Union. Obviously, the situation was ripe for Russian propaganda to play their tunes on Italian emotions. Like in Italy, Russian propaganda has become more active in other countries of Europe too. Similar of messages started appearing on French, Spanish and Greek social media. This is not a new approach: the same tactic was successfully employed during Brexit and the Catalan referendum, not to mention during the wide array of elections in various European countries. It is also known that due to
Russian President Vladimir Putin, center, and the hospital’s chief Denis Protsenko, right, walk in to the hospital for coronavirus patients in Kommunarka, outside Moscow, Russia. (File/AP/Kremlin Pool Photo/Alexei Druzhinin/Sputnik)
the apparent shortage of Spanish-speaking bots at its disposal, the Kremlin employed Venesuelan “resources” for its shenanigans during the Catalan referendum. It looks like there is no time like bad time for the Russian propaganda machine. One needs to stress here that the EU, albeit belatedly, still realized the need to show more solidarity during the times of pandemic and the necessary actions were carried out. The narratives of various European leaders invariably mention the need to assist each other, with French President Macron at the forefront. Talks aside, Germany has already accepted Italian patients in its clinics and sent much-needed medical equipment across the border. France followed suit, and is itself being assisted by Germany too. It
Innova Invitro
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is expected that this collaboration will grow in scale as the pandemic expands further. Russia, a country that cannot handle the virus inside its own borders, decided to play messiah outside of them. To give more emphasis to the troll and bot narrative against the united Europe in social media, Russian planes, “filled to the brim” with medical staff and equipment landed on Italian soil to help out the beleaguered country. Obviously, the Russian propaganda had a field day with it: “Mother Russia holds out a helping hand to sister Italy who was forsaken by Europe”. Propaganda articles were disseminated in various languages across Europe and beyond. Greek outlet Iskra.gr published an article claiming that the overjoyed Italians
lowered the EU flags and hoisted the two-headed Eagle of Russia instead. Obviously, this did not happen, but there was probably no shortage of people who bought the lie. However, as happens to almost every tale of Kremlin propaganda, this legend was busted quickly enough. On March 26, a popular Italian outlet La Stampa wrote that the equipment sent over by Russia was worthless and unsuited to combating the virus. As for the “medical staff”, most of those turned out to be not doctors, but high-ranking military personnel. So what does this Kremlin act of charity and its predictable outcome tell us? How was Russia to help Italy when it cannot help its own citizens in the country? Especially considering that it neglected every responsibility to help the populations of its “vassal states”, the occupied territories of Georgia, where it ultimately fell on the Georgian government to open a new hospital in Rukhi village to provide whatever help they could to those the other side of the occupation line. Despite the fact that Russia cannot and does not help its own population, it is not above creating a false illusion of assisting European countries. Unlike its population, malign propaganda is something the Kremlin can always spare time for. It was around before the pandemic, it will be around during the pandemic and without a shadow of doubt, it will stay around after the pandemic too. One could say the Kremlin itself has become a pandemic. Unfortunately, it doesn’t fall under WHO’s purview to declare it as such.
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BUSINESS
GEORGIA TODAY
APRIL 3 - 9, 2020
THE ISET ECONOMIST A BLOG ABOUT ECONOMICS AND THE SOUTH CAUCAUS
www.iset-pi.ge/blog
The ISET Policy Institute (ISET-PI, www.iset-pi.ge) is an independent think-tank associated with the International School of Economics at TSU (ISET). Our blog carries economic analysis of current events and policies in Georgia and the South Caucasus region ranging from agriculture, to economic growth, energy, labor markets and the nexus of economics, culture and religion. Thought-provoking and fun to read, our blog posts are written by international faculty teaching at ISET and recent graduates representing the new generation of Georgian, Azerbaijani and Armenian economists.
Regional Impacts of COVID-19 Shock to HoReCa Sector BY ANA BURDULI, MARIAM KATSADZE, AND GIORGI PAPAVA
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he outbreak of the virus and the corresponding containment measures have started to severely affect the global economy. The Organization for Economic Co-operation and Development (OECD), in its Interim Economic Outlook Report (2020) on March 2nd downgraded 2020 real GDP growth projections for almost every country. The largest reduction in growth projections is seen for China (-0.8 percentage points) with worldwide real GDP growth expected to decline from 2.9% (November 2019 forecast) to 2.4%. In their report on March 6th, Asian Development Bank (ADB) estimated up
tions on travel, and closures of public places. Though international and local organizations are forecasting the economic outcomes of coronavirus, high uncertainty still exists surrounding this topic. In this blog, we will NOT try to estimate the extent of economic contraction in Georgia, we will rather focus on the shock that is expected to hit Georgia’s HoReCa (Hotels, Restaurants, Cafes) sector, see how its contraction will affect other industries in the short-term, and assess the distribution of the combined impact across regions of Georgia. We focused on the Accommodation and Food Services (HoReCa) industry for the following reasons: firstly, containment measures like travel bans, along with increasing fear of climbing numbers of coronavirus incidents throughout the world, have a direct effect on interna-
Illustration 1: Economic channels through which coronavirus affects the economy
Source: OECD Interim Economic Outlook 2020 press conference
to a 0.4 percent fall in world GDP due to the COVID-19 virus. Just like the OECD, the ADB also emphasizes the impact coming from China, where the virus was concentrated at that time . Meanwhile, as the situation in Europe and the United States is worsening day by day, forecasts of Global GDP are being downgraded significantly. “The outlook for global growth: for 2020 it is negative—a recession at least as bad as during the global financial crisis or worse” was noted by the International Monetary Fund Managing Director Kristalina Georgieva in her statement on March 23rd 2020 following a G20 Ministerial Call on the Coronavirus Emergency. To summarize, there seems to be a consensus today that the scale of the economic and financial impact of the coronavirus may well be unprecedented and will depend highly on the management of the virus outbreak. According to the above-mentioned OECD report, COVID-19 will impact economies via both supply and demand channels, as well as through containment measures, such as quarantines, restric-
tional tourism inflows, which immediately impact hotels, restaurants, and cafes along with tourist destinations, resorts, and various entertainment services; domestic tourism also adds to all of the above. Secondly, apart from tourism, the HoReCa sector in Georgia is being
affected by the government regulations on COVID-19 precautionary measures and subsequent declining local demand. Along with the announcement of the state of emergency on March 21, to limit the chances of exposure to the infection, the government has imposed restrictions on public gatherings and activities of restaurants, trade centers, public transport, sport and spa facilities, and cultural and sport events. Shops and trade centers are closing for an indefinite period, restaurants have recommendations to close down all operations that involve contact with people and only work through delivery services, and many hotels are choosing to close down for some period, even though they do not yet face official bans. The effects of coronavirus on the Georgian HoReCa sector are already quite visible: according to the March report by TBC Capital, payments with TBC Bank terminals in hotels have decreased by 40% compared to the previous year; moreover, payments in food service facilities by residents and non-residents have also gone down significantly . A shock to the given sector initially causes the level of output in that particular industry to change. This is just an immediate reaction to the shock by producers. A direct consequence of changes in the industry’s output is the adjustment of demand for inputs that are used in the production process of this particular industry. With these changes in intermediate input requirements, one can evaluate the impact of a shock, not only on accommodation and food service activities but on other industries in an economy as well. To observe these effects, we used Supply and Use Tables (SUTs) for 2018 provided by the
Illustration 2: Flow of analysis of economic shock
National Statistics Office of Georgia (GeoStat). This blog also analyzes how the effects of a shock will be distributed throughout the regions of Georgia and which industries will contribute to the economic reduction in each region. The illustration below summarizes this analysis. First of all, we start with a hypothetical negative shock to the HoReCa industry of 1 billion GEL, which equals to about 27% of total annual output in this sector. The accommodation and food service industry uses many different inputs in their production process, in fact, they use inputs/products from almost every other industry in the economy, including their own. Therefore, when demand decreases for services in the HoReCa industry, other sectors also decrease their production, since their product is now less needed as an intermediate good. While there will be second and subsequent rounds of production reductions related to further changes in input requirements in economic industries
Mtskheta-Mtianeti and Adjara regions, where total output is expected to decline from 2.5 to 3.5%, followed by the Guria, Tbilisi, Racha and Samtskhe-Javakheti regions with expected reduction from 1.5 to 2.5%. The relatively lower negative impact, from 0.5 to 1.5% of total output, is expected in the Kakheti, Imereti, Samegrelo, Kvemo Kartli, and Shida Kartli regions. Since the shock is directed at the HoReCa sector, in all regions, with the exception of Kvemo Kartli and Shida Kartli, a reduction in total output is driven by this industry, comprising more than 50% of total reduction in value added. Table 1 below presents sectors that are the first and the second biggest contributors to the decline in value added in each region. The table above demonstrates that the HoReCa sector plays most significant role in the reduction of value added in Adjara Region, followed by Tbilisi and Mtskheta-Mtianeti. Moreover, as we observe, the biggest contributors, besides
Table 1: Biggest contributors to the reduction in value added across regions of Georgia
linked with the HoReCa sector, it should be noted that we focus on measuring only the direct effects of the shock capturing the immediate responses in the first round of production processes. As inputs from the (1) manufacturing, (2) real estate services, (3) electricity, gas, steam and air conditioning and (4) agriculture, forestry and fishing industries are used the most in the HoReCa sector as intermediate goods (see Illustration 2), these sectors will take the biggest consequential hit. Overall, we estimate that a 1 billion GEL shock to revenues in the HoReCa sector will have an additional negative impact of 400 million GEL through the direct input use channel. Further, we looked at the impacts on the regional level. Based on the distribution of economic activity, we investigate the impact of decline in HoReCa and other sectors across different regions of Georgia (See Illustration 2). As we see, the biggest hit is to the
HoReCa are the industries which comprise the most substantial part of intermediate inputs for the HoReCa sector (see Illustration 2). To summarize, when analyzing the economic effects of coronavirus on the economy, it is important to have different channels of impact in mind. Considering the shock to the tourism industry and the containment measures implemented by the Georgian government, the accommodation and food service industry will be hit the hardest, with negative spillover effects becoming evident across most other sectors. In this blog, we tried to assess how a shock to the HoReCa sector is amplified in the short run and how the impacts are distributed regionally. We find that a hypothetical 1 billion GEL shock to the HoReCa industry in the short run will lead to an additional 400 million GEL drop in the output of the Georgian economy, with Mtskheta-Mtianeti and Adjara being affected the most.
BUSINESS
GEORGIA TODAY APRIL 3 - 9, 2020
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UN Sec-Gen Launches Plan to Address Devastating SocioEconomic Impacts of COVID-19 shows it will be crucial to cushion the knock-on effects on people’s lives, their livelihoods and the economy. The report highlights examples of actions countries could take, such as direct provision of resources to support workers and households, provision of health and unemployment insurance, scaling-up of social protection, and support to businesses to prevent bankruptcies and job loss. The report strongly recognizes that women and girls must have a face in the response; and opportunities for young people, seriously affected, need to be preserved.
LEARNING FROM THIS HUMAN CRISIS TO BUILD BACK BETTER
UN Secretary-General, António Guterres. Source: .unmissions.org
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he new coronavirus disease (COVID19) is attacking societies at their core, claiming lives and people’s livelihoods. The potential longer-term effects on the global economy and those of individual countries are dire. In a new report, ‘Shared responsibility, global solidarity: Responding to the socio-economic impacts of COVID-19,’ the United Nations Secretary-General calls on everyone to act together to address this impact and lessen the blow to people. The report describes the speed and scale of the outbreak, the severity of cases, and the societal and economic disruption of COVID-19, which has so far claimed the lives of 33,257 people, with 697,244 confirmed cases in 204 countries, areas and territories. “COVID-19 is the greatest test that we have faced together since the formation of the United Nations,” said António Guterres, Secretary-General of the United Nations. “This human crisis demands coordinated, decisive, inclusive and innovative policy action from the world’s leading economies, and maximum financial and technical support for the poorest and most vulnerable people and countries.” The report comes after the IMF announced that the world has entered into a recession as bad or worse than that of 2009. The report calls for a largescale, coordinated and comprehensive multilateral response amounting to at least 10% of global GDP. The United Nations system, and its global network of regional, sub-regional and country offices working for peace, human rights, sustainable development and humanitarian action, will support all governments and partners through the response
and recovery. To that end, the Secretary-General has established a dedicated COVID-19 Response and Recovery Fund to support efforts in low- and middle-income countries. Its approach underpins the reformed UN with a coordinated multi-agency, multi-sectoral response for priority national and local actions to address the socioeconomic impact of the COVID19 crisis. It will count on the country leadership of Resident Coordinators and UN Country Teams in swiftly supporting and enabling governments in this crisis, and recovery. The shared responsibility and global solidarity roadmap calls for:
SUPPRESSING THE TRANSMISSION OF THE VIRUS TO CONTROL THE PANDEMIC The report warns that there is no time to lose in mounting the most robust and cooperative health response the world has ever seen. The strongest support must be provided to the multilateral effort to suppress transmission and stop the pandemic, led by the World Health Organization. At the same time there is great need for scientific collaboration in the search for a vaccine and effective therapeutics. This must be matched with assurances of universal access to vaccines and treatment. Throughout the report a people-centred approach is promoted that calls for engaging communities affected by COVID-19, respect for human rights and inclusion, gender equality and dignity for all.
SAFEGUARDING PEOPLE’S LIVES AND LIVELIHOODS Recognizing that epidemics can expose and exacerbate existing inequalities in society, the road map
TBC Commits over 5 mln GEL to Address COVID-19 Challenges in Georgia
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BC is creating a program to support the Georgian population, which will consolidate all projects initiated by TBC for COVID-19 harm reduction. The support program has two components: 2 mln GEL for social support initiatives directed towards distance learning promotion, assistance for the elderly and facilitation of access to digital technologies; and more than 3 mln GEL to ease the fee expenses for individuals as well as businesses in the
next two months. Online platform 'TBC for You' will also be available to cover all digital services of TBC and its partners by supporting customers in digitalization. Citizen and business support, distance learning, online commerce and several other services will be brought into focus, making customer life easier in the new reality. In total, TBC will donate more than 5 mln GEL to support the population in the next two months, to mitigate the fee burden for customers, and to finance social programs.
The world will be faced with a choice in its recovery. Go back to the world we knew before or deal decisively with those issues that make everyone unnecessarily vulnerable to this and future crises. From stronger health systems and fewer people living in extreme poverty to achieving gender equality and taking climate action for a healthy planet, the report gives hope that lessons from this human crisis can build more just and resilient societies and deliver on the promise of the 2030 Agenda and the 17 Sustainable Development Goals.
PARTNERSHIPS FOR PROGRESS No single country or entity will win alone against the pandemic. A successful response and recovery will require international cooperation and partnerships at every level: governments taking action in lock step with communities; private sector engagement to find pathways out of this crisis. Partnerships based on solidarity will be the cornerstone for progress. Civil Society, women and grassroots organizations, community-based organizations and faith-based organizations will play a vital role. In assisting the most vulnerable populations, these networks are active in bringing economic and livelihood opportunities and adapting responses to the community context. These organizations, in many locations in the world, are the first, or only, point of reference for individuals and families as they seek to cope with the impacts of COVID-19 and for the recovery ahead.
CALL TO ACTION The COVID-19 Pandemic is a defining moment for modern society, and history will judge the efficacy of the response not by the actions of any single set of government actors taken in isolation, but by the degree to which the response is coordinated globally across all sectors for the benefit of our human family. The United Nations and its global network of regional, sub-regional and country offices working for peace, human rights, sustainable development and humanitarian action, supported by established coordination mechanisms, will work with partners to ensure first and foremost that lives are saved, livelihoods are
restored, and that the global economy and the people we serve emerge stronger from this crisis. The 129 UN Resident Coordinators and the UN Country Teams will provide comprehensive policy and operational support at the national level in support of a whole of society approach in countries. With the right actions, the COVID-19 pandemic can mark the beginning of a new type of global and societal cooperation. Recommended measures to cope with the impacts of COVID-19:
GLOBAL MEASURES TO MATCH THE MAGNITUDE OF THE CRISIS • Advocate and support implementation of a human-centered, innovative and coordinated stimulus package reaching double-digit percentage points of the world’s gross domestic product. • Resist the temptation to resort to protectionist measures. • Take explicit measures to boost the economies of developing countries.
REGIONAL MOBILIZATION A coordinated regional approach will enable collective examination of impacts, coordination of monetary, fiscal and social measures, and sharing best practices and the lessons learned. • Adopt DO NO HARM trade policies, preserve connectivity, and ensure regional monetary-fiscal coordination. • Engage with private financial sector to support businesses. • Address structural challenges and strengthen normative frameworks to deal with transboundary risks.
NATIONAL SOLIDARITY IS CRUCIAL TO LEAVE NO ONE BEHIND The pandemic is hitting an already weak and fragile world economy. Global growth in 2019 was already the slowest since the global financial crisis of 2008/2009. According to ILO estimates, the world could lose between 5 million and 25 million jobs. • Undertake fiscal stimulus and support for the most vulnerable. • Protect Human Rights and focus on inclusion. • Support to Small and Medium sized Enterprises. • Support decent work. • Support education. • Prioritize social cohesion measures.
COVID-19 SOCIO-ECONOMIC ESTIMATES FOR 2020 AS OF MARCH 2020: 5 - 25 million jobs lost (ILO), $860 billion – $3.4 trillion losses in labor income (ILO), 30% – 40% downward pressure on global foreign direct investment flows (UNCTAD); 20% – 30% decline in international arrivals (UNWTO); 3.6 billion people offline (ITU); 1.5 billion students out of school (UNESCO)
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BUSINESS
GEORGIA TODAY
APRIL 3 - 9, 2020
BAT Working on Potential COVID-19 Vaccine through US Bio-tech Subsidiary B
AT’s US bio-tech subsidiary, Kentucky BioProcessing (KBP), is developing a potential vaccine for COVID-19 and is now in pre-clinical testing. If testing goes well, BAT is hopeful that, with the right partners and support from government agencies, between 1 and 3 million doses of the vaccine could be manufactured per week, beginning in June. While KBP remains a commercial operation, the intention is that its work around the COVID-19 vaccine project will be carried out on a not for profit basis. The vaccine in development uses BAT’s proprietary, fast-growing tobacco plant technology which has several advantages over conventional vaccine production technology: • It is potentially safer given that tobacco plants can’t host pathogens that cause human disease. • It is faster because the elements of the vaccine accumulate in tobacco plants much more quickly – 6 weeks in tobacco plants versus several months using conventional methods. • The vaccine formulation KBP is developing remains stable at room temperature, unlike conventional vaccines which often require refrigeration. • It has the potential to deliver an effective immune response in a single dose. BAT’s US subsidiary, Reynolds American Inc, acquired KBP in 2014, with the aim of using some of its unique tobacco extraction technology to aid further development of its new category noncombustible products. In 2014, KBP made headlines as one of the few companies with an effective treatment for Ebola, having manufactured ZMapp™ with California-based company Mapp BioPharmaceuticals in partnership with the U.S. Biomedical Advanced Research and Development
Authority (BARDA). KBP recently cloned a portion of COVID-19’s genetic sequence which led to the development of a potential antigen - a substance that induces an immune response in the body and in particular, the production of antibodies. This antigen was then inserted into tobacco plants for reproduction and, once the plants were harvested, the antigen was then purified, and is now undergoing preclinical testing. BAT is now exploring partnerships with government agencies to bring its vaccine to clinical studies as soon as possible. Through collaborations with government and third-party manufacturers, BAT believes that between 1 and 3 million doses per week could be manufactured. Dr David O’Reilly, Director of Scientific Research, BAT said: “We are engaged with the US Food and Drug Administration and are seeking guidance on the next steps. We have also engaged with the UK’s Department for Health and Social Care, and BARDA in the US, to offer our support and access to our research with the aim of trying to expedite the development of a vaccine for COVID-19. “Vaccine development is challenging and complex work, but we believe we have made a significant break-through with our tobacco plant technology platform and stand ready to work with Governments and all stakeholders to help win the war against COVID-19. We fully align with the United Nations plea, for a whole-of-society approach to combat global problems. “KBP has been exploring alternative uses of the tobacco plant for some time. One such alternative use is the development of plant-based vaccines. We are committed to contributing to the global effort to halt the spread of COVID-19 using this technology.”
Felicio Ferraz, General Manager, British American Tobacco Caucasus
Currently, this is a potential vaccine candidate, not a vaccine or a cure, given this is the early stages of the development process. BAT has unrivaled knowledge and expertise of tobacco and hopes its subsidiary KBP can contribute to the cause. BAT is a leading, multi-category consumer goods business, established in 1902. Our purpose is to build A Better Tomorrow by reducing the health impact of our business through offering a greater choice of enjoyable and less risky products for our consumers. Our ambition is to increasingly transition our revenues from cigarettes to non-combustible products over time. BAT owned KBP is located in Owensboro, Ky., where it began operations in 2006. In January 2014, KBP was acquired by and became an independently operated, wholly-owned subsidiary of Reynolds American Inc. (RAI), owned by BAT. KBP continues to house its large, multilevel indoor plant-growth space, as well as its research and production laboratories, clean rooms and manufacturing operations in Owensboro. KBP develops and executes processes to transform tobacco plants into “biomanufacturing factories” that efficiently produce complex proteins they would not otherwise produce. The company can grow, harvest and process as many as 3 million protein-producing tobacco plants in a production cycle that typically takes about six weeks – compared with many months using traditional biomanufacturing methods. The company uses licensed and proprietary technologies to temporarily encode tobacco plants with genetic instructions to produce specific target proteins. The plants are grown in an automated, climate-controlled environment that can be adjusted to optimize their production of a protein of interest.
What Does the Future Have in Store for Us? OP-ED BY NUGZAR B. RUHADZE
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his might be the nastiest of questions one could have come up with at this time of our shattered existence. For me personally, the physical virus is not that big a problem. What bothers me most is the unpredictability of future developments. I have not lived without a planned morrow since my first day in kindergarten, and now, nearing eighty, I am without any chart of forthcoming moves. The tiny invisible pest has turned out so nimble and noxious that its threat has already made this the worst experience we have ever had to go through, at least in the most recent past. In the beginning, it was a mere minor test of our health, but it fast turned into a major fitness trial, dragging us through a medicinal ordeal. Will we endure this and keep our heads above the surface of the earth? I don’t know, and the dilemma is that nobody, not even the strongest medical scholars of the world, can provide us with a confident scientific answer to the question.
Image source: romania-insider.com
The world is open to an extensive, fierce and expensive fight against the overwhelming viral disaster, but we are not prepared enough to make even a prediction to help us plan for the future as wisely as possible. In my case, I don’t
know if I will have to relocate to the countryside anytime soon to start tilling land so as to have my own fruits and veg, and thus prevent my hunger-induced demise; I have no idea if my overall qualifications will continue translating
into my wellbeing; I don’t have the faintest clue if in the near future I will be allowed to shop when my current stock of medication starts running out; I can’t make even the flimsiest guess if I will ever need the books of my beloved library, sitting calm and inert on my old-fashioned shelves in expectation of my feisty shuffling through them in consideration of ceding them to the country’s public reading facilities while there is time to do so; it is not known to me either how functional my current shelter will be for me to be able to continue life in there doing some good to Mankind. But this is not the only rhetorical curiosity that currently burdens the mind! How about my bank savings? Would they keep their regular purchasing power, remaining as intact as they are right now? They might or they might not: a wellversed economist would say cautiously. Again, the deadly uncertainty of guesswork! But I have my own helpful inferences: in the short run, a shortage of production as well as productivity may cripple the economic process; oil prices fluctuating against any educated logic and fearful expectations driving the unwelcome level of inflation. But I am not very
nervous about the short-run predictions. What bothers me is the long-run prognosis, which is politically-based because it is politics that defines the principal configurations of our thinking and carves the moods of the electorate, along with the market ups and downs. And if it is in our hands, we have to keep the inflation from running away. Currently, the likelihood of higher inflation is luring us into the belief that the monetary tissue of our economy might waste away. The creators of such moods should bridle their belligerent attitude towards the current rulers of the country, thus reinforcing the National Bank’s fiscal skills and responsibilities. The remaining questions are just as sharp and scary, the mildest of which would be this: How long are we going to be locked up in the privacy of our family abodes, where the compulsory confinement wrecks our nerves and deprives us of a chance to strengthen the national GDP? No, I am not panicking. I am just joining the interrogative torrent in the country. Panic makes no sense, because the cruel bug is utterly nonchalant to human dread. Moreover, it is desperately looking for cowards and scaremongers to hit their immune system.
SOCIETY
GEORGIA TODAY APRIL 3 - 9, 2020
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Beeline to Provide Transportation of Medical Staff of Two Hospitals in Tbilisi to Combat Coronavirus
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his week, Beeline, a member of the international group Veon, began to offer transportation of medical personnel of the National Center for Tuberculosis and Lung Diseases and Vakhtang Bochorishvili Clinic to and from their workplaces to contribute to fighting the new coronavirus. The clinics, where patients infected with COVID-19 are being treated, mostly employ staff from regions of Georgia. As part of the State of Emergency imposed in the country, public transport service has been halted. Accordingly, Beeline is now providing transportation for the medical personnel of those clinics through a hired transportation company. After the end of each journey, the vehicles are disinfected, while the transportation of passengers is carried out in accordance with the safety rules established by the state. “Since the appearance of the new coronavirus, Beeline has been actively taking preventive measures,” said Andrzej Malinowski, Beeline CEO. “We were one of the first companies in Georgia to switch the whole office to working from home, including our call center. We closed all 28 stores across the country, though our clients can still receive all our services online just as conveniently using digital channels, such as the app, website and online chat, as well as the call center. We also took care of up to 2,500 of our customers who were not able to get home in time due to closed borders, and awarded them free GBs in roaming. These are just a few of Beeline’s initiatives carried out in response to the virus outbreak.”
“We believe that apart from taking care of our customers and our employees, it is important to contribute the countrywide effort of fighting COVID-19,” he
added. “We inquired into the necessities of the hospitals that are on the frontline of the fight and it turned out the transportation of the medical staff is a burn-
ing issue. We hope our decision to provide the medical staff with transportation will leave them with one less thing to worry about and will further support
their incredible task of caring for COVID19 patients. I would like to wish all of our fellow citizens good health and to defeat the virus soon”.
Evolution Gaming Georgia to Fire 1300 after Suspending Contracts of 3000 BY TEA MARIAMIDZE
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nline casino company Evolution Gaming, operating in several countries, including Georgia, announced they will terminate contracts with 1300 of their Georgian employees after already suspending the contracts of 3000. All 1300 workers were undergoing a 6-month probationary period. Evolution Gaming explains that the decision was made after the announcement of a quarantine in the country, aimed at reducing the spread of COVID19. They added that the fired employees will still keep their health insurance for a further two months. Evolution Gaming stopped working on March 23 due to the coronavirus outbreak in the country, and on the same day, the employers suspended the contracts of their game presenters and card shufflers. Some employees told media they repeatedly appealed to the administration to tighten sanitary norms. They say tens of hundreds of people working in one space were at risk of getting coronavirus. According to them, the company said it was following all the recommendations of the World Health Organization. In a previous statement released by the company, Evolution Gaming says the reason they decided to close down is that one of their employees fell sick during work. “She was immediately taken to a special room. According to the plan, we contacted the medical service, which did not consider this person as having symptoms of the virus, and therefore
she was not tested for COVID-19. However, she was told to go home and selfisolate,” the statement reads. The company noted that this person felt better afterwards, but for safety reasons all people who were in contact with her were sent home to self-quarantine. "Every employee who worked in our studios is at home, and we had to stop operations,” the company said. NGO Human Rights Education and Monitoring Center (EMC), which is protecting the rights of Evolution Gaming employees, says the decision to terminate the contracts of 1300 people is a violation of human rights. EMC believes that by terminating an employment contract with employees during the probationary period, the company grossly violates the rights of employees, abuses the dominant position of the employer and neglects the legal standards in force in the country. “The company terminated the contracts of only those employees who were on a probationary period and not those of other employees to whom they would have to pay compensation after the termination of the employment contract. Clearly, Evolution Gaming has reduced its workforce not by distinguishing and allocating the necessary staff for its operation, but to have the minimum financial costs. Clearly, this selection was made in order to avoid the obligation to pay compensation and was not motivated by the study of needs,” the NGO stressed. EMC explains that when an employer terminates the employment contract with at least 100 employees within 15 calendar days due to economic circumstances, technological or organizational changes, it is considered a mass dismissal
Image source: Netgazeti
and obliges the employer to send a written notice 45 days prior to the Ministry of Labor, Health and Social Affairs and the employees whose employment contracts are terminated. The organization says the employees did not receive any prior notice about the termination of their contracts. Evolution Gaming released the following statement: “On March 23, the floor operations within Evolution Georgia were shut down by the Georgian authorities. As the broadcasting studio was not allowed to operate, Evolution could not offer any shifts to about 3000 Game Presenters (who lead the games) and Shufflers (who prepare the cards). Since the shut down, Evolution has completed all measures required by the local authori-
ties for a reopening. “On March 30, the Georgian Government announced a countrywide quarantine. The news meant that even if the company was allowed to reopen, it would not be able to operate at its full capacity for several months and meaning Evolution’s planned expansion in Georgia for 2020 would not be as planned and the number of the personnel of the company would need to be adjusted according to the current restrictions introduced by the Government. “As a consequence of the quarantine, Evolution made an early termination of about 1300 people on probation on March 31. In line with the Georgian labor law, termination of probation does not require any notice to any public authority or any
termination compensation, except the compensation for the hours worked prior to the termination. “Evolution wishes to express that the decision to terminate probation for these individuals was not easy and not at all what the company had hoped for. But under the current circumstances in Georgia, there was no other option. “Evolution Georgia will continue to keep up dialogue with the local government with the hopes of reopening its broadcast studio in Tbilisi soon to be able to offer as many as possible of the permanent workforce the opportunity to earn an income. The company has completed all measures required by the local authorities so far and stands ready to do more if necessary.”
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SOCIETY
GEORGIA TODAY
APRIL 3 - 9, 2020
SurViral: Etseri, Svaneti
BLOG BY TONY HANMER
S
ome questions may arise about how we people in the far-flung provinces are coping with The Virus as it unfurls its deadly flag wider and wider day by day across the world. Here is my perspective from distant Svaneti: typical for here in some respects, unique in others. We try to maintain a mood of thankfulness for everything we have: water runs, electricity is mostly on, the house (which contains the village shop) is full of food and other necessities, and is being stocked up by still-running distribution minivans; we are healthy. Not a single person we know personally in the world has the virus. Yet. But there are losses too. The guest house season for 2020 is likely to be a total miss. Relatives from Canada who planned to visit us and go travelling abroad together in April are staying home
now. Ditto for friends from there in May. My current digital camera, having needed my brother in law to take a look at it in Tbilisi, is repaired but stuck in our apartment there. The new one which I bought to supplement it there is waiting for me in Canada, victim of the aforesaid failed visits. For someone who has been a serious photographer since age 11 (42 years), not having a good camera is HARD. School is out and online Facebook group video chats with 1-8 pupils are a challenge for my wife. These are real hurdles, but compared to those of other people, pretty minor. I make lists of things to do around the house and yard. A big ongoing one is tackling the huge scrap woodpile which is an eyesore out the south-facing windows. It’s been there for years, slowly rotting, most of its content useful only as firewood. So I’ve been tuning up and using the electric circular saw (earplugs in, of course!) to deal with the thinner stuff, the axe to split what is still too wide for the stove, and will use the electric chainsaw on the thicker bits. New
categories arise, needing sorting: bags of small scraps to start the fire with; pieces joined with nails needing a crowbar to separate them before cutting; plastic and other garbage mixed in; pieces needing only sawing (by either circular or chainsaw), or only splitting, or both. The wonderful crawlspace we made a trapdoor into so as to store wood under part of the floor is now completely full, likely two years’ worth of wood there nice and dry and close at hand. So I’m bagging up the rest of the wood as I cut it, and putting it on the barn’s 2nd story. We have SO much firewood. NONE of it will be left outside for the coming winter, needing digging down to through feet of snow under a tarpaulin to reach! Other smaller odd jobs, as well as a list of important supplies on which to stock up for household maintenance for… how far into the future? I’m trying to include the coming winter as well as the seasons leading up to it, especially water connection bits and pieces, as that’s always a weak point in the freezing months. Electrical parts too: fuses, wire, sockets,
switches. Aside from what’s in the shop, we can’t just run out for what we lack: Mestia is 28 km away and expensive, Zugdidi is cheaper but 110 km away! Calling, by phone or video chat, people I haven’t spoken to for some time, if ever, by these means, going back to school friends as well as distant relatives. Who knows when the last opportunity for this will come? I don’t like talking by phone at the best of times, even in English let alone Russian or Georgian, but this is important. Trying to restrict our news intake, either by TV or by internet. The stress is just too overwhelming, not to mention the need for “antennae of skepticism” to be active for fake news. Avoiding local funerals, more important events than any other reason for a Georgian feast. There’s been one in our village recently, not related to the virus, but I’m aware as a non-citizen of Georgia that punishment measures for one such as me breaking the new laws could conceivably lead to other things than a fine, like deportation. Unlikely but not
impossible. Besides, the law banning gatherings simply makes sense, regardless how the neighbors whose relative I “failed to honor” feel. I think that overall I’m glad we’re not in Tbilisi for this crisis, because life here during it feels less abnormal than it would there. We can even start to grow almost all our own food here if we have to! So life goes on for us; we hope it does for you as well, dear reader, wherever you are. The last thing I’ll add is that, as a believer in the afterlife, a Christian, I expect that death is only a door to something eternal, the glory of which will put ANY earthly suffering to shame. This is my final hope. 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
Georgians in Quarantine: A Personal Story Continued from page 1 In the town I lived in, they prohibited the movement of more than two people in one space and also closed different public spaces from March 20. Before then, no measures were taken whatsoever: the streets were filled with people, and unfortunately no one feared being outside.
WHY DID YOU DECIDE TO COME BACK TO GEORGIA? I live and study in Georgia. I’m a student of Tbilisi State Medical University. Plus, my contract at the clinic was only until the end of March, so I had to come back.
WHAT DID YOU HAVE TO GO THROUGH TO COME BACK TO GEORGIA? WAS IT EASY TO FLY BACK HOME? Coming back here was certainly not easy. My two flights were cancelled. Buying a ticket out of Berlin, destination Tbilisi, was a complicated process, and very expensive, at that. This was not a special flight planned by the government to bring back citizens; this was a regular flight. Getting to Berlin was actually harder, as it took me 7 hours as opposed to the normal 4. Every second train was canceled and I caught the last train of that day. It is very difficult to cope in these situations.
WALK US THROUGH YOUR JOURNEY FROM BERLIN AIRPORT TO QUARANTINE. HOW ORGANIZED WAS THE PROCESS OF BRINGING YOU HOME? There were no measures taken in Berlin airport and that is all on Germany: they were the ones who should have taken care of that. Even the airport employees
were not wearing face masks because you just can’t get them there. We didn’t go through any checks in Berlin and the chess-principle of sitting in the plane couldn’t be applied. When we landed in Georgia, they broke us up into 10-man groups and that’s how we left the plane. Those waiting for us outside handed us face masks, disinfected our hands, then took away our passports. They quickly divided us up on different buses and took us to the quarantine zone.
HOW IS QUARANTINE AND HOW ARE YOU FEELING? HAVE THERE BEEN ANY CASES CONFIRMED IN YOUR QUARANTINE ZONE? I’m quarantined in the Welmond Hotel in Batumi. The conditions here are very good. As you know, our healthcare workers do not disclose personal information about the infected, so I don’t have any information on whether or not some have shown symptoms in this hotel. I’m feeling well and healthy, and I’ll leave quarantine on April 7.
FOR THE FINAL CONTRAST, HOW WOULD YOU COMPARE THE APPROACHES TO COPING WITH THE CORONAVIRUS ON THE GERMAN AND GEORGIAN SIDES? “Georgia took the appropriate measures earlier than Germany. The German government had other priorities and that is why they have such big numbers today. On the other hand, there is a part of society in Germany, just like in Georgia, who do not obey the new rules of the pandemic, even when they can get fined for it in both countries. There were a lot of cases of isolation violation in Germany, too. The tactics for treat-
ment are different in the two countries: more people have this virus in Germany than the confirmed reports tell us, and they do not run tests for every patient with symptoms. Many go through the treatment at home, which in most cases only involves good nourishment and drinking lots of water. I can be confident when I say that Georgian doctors are putting their best into their jobs, approaching the minor and serious cases with individual planning. Of course, one of the things which makes that possible is that we don’t have too many infected cases yet. However, still our doctors are doing their best to combat this virus. I hope this is a fight with positive outcomes. I believe that the science and medicine of the 21st century can defeat COVID-19”. Our second interviewee is Tekla Dakhundaridze, a 25-year-old student of Erasmus University Rotterdam, doing her masters in Health Economics, Policy and Law. She just got back to her native Georgia a few days ago, on March 31. For GEORGIA TODAY she tells the story of her way back home, and contrasts the measures of The Netherlands and Georgia, the two states that got their first confirmed case of COVID-19 on the same day, February 26. Now The Netherlands has 13,614 infected and 1,173 dead from the virus. “When coronavirus started spreading, I was in The Netherlands,” Tekla tells us. “The first recommendation was not to travel to Italy. Later, events of 100 or more persons were banned, and people were encouraged to work from home. From March 13, the education process went online in all universities and flights from a number of countries e.g. China and Italy, were cancelled. Continued on page 11
SOCIETY
GEORGIA TODAY APRIL 3 - 9, 2020
11
Georgians in Quarantine: A Personal Story Continued from page 10 Soon public spaces were closed, including cafes and restaurants, and the government encouraged people to stay at home and avoid social contact. People with mild cold symptoms were asked to self-isolate and those with severe symptoms had to contact their GPs. Further steps of treatment were to be decided by the GP, among them hospitalization and corona testing”.
WHY DID YOU DECIDE TO COME BACK TO GEORGIA? As confirmed cases of corona were increasing, more and more students were leaving campus going back to their families. I was one of them. I wanted to be with my loved ones during these uneasy times. Besides, education is online until June 1, so my physical location was no barrier to continuing my studies at the Erasmus University Rotterdam.
WHAT DID YOU HAVE TO GO THROUGH TO COME BACK TO GEORGIA? The date of my original flight from Amsterdam to Tbilisi was March 23 but the day
prior, it was canceled and the Government of Georgia made the announcment that only a special flight would take place. Georgian Airways changed my ticket and finally I got back to Georgia on March 31 on that special flight.
WALK US THROUGH YOUR JOURNEY FROM AIRPORT TO QUARANTINE. My flight was full, no seat was free, so the recomendation to keep 1.5 meter distance was not taken into consideration. No facemasks were distributed between the passangers, so some people were wearing them and some not. As soon as I arrived at the border control, medical staff measured my temperature and later I was transferred to the Sheraton Grand Tbilisi Metekhi Palace Hotel. Medical and administrative staff are trying to assure my maximum safety and comfort in quarantine; they ask how I’m feeling and what my feedback is about the food and general conditions here. I have to measure my temperature three times in a day, and if any symtoms of the virus appear, I’m to call to the doctor who is also staying in this hotel.
HOW WOULD YOU COMPARE THE APPROACHES TO COPING WITH THE CORONAVIRUS ON THE DUTCH AND GEORGIAN SIDES? The measures taken by The Netherlands have been criticized, as they were not taken in time. There, flights from China, Iran, Italy, and South Korea were cancelled on March 13, when in Georgia the same thing happened on March 4. But people there are more law abiding: they always try to keep 1.5m distance no matter if they are in a supermarket or just having a walk; people really stay at home and the streets and buses are almost empty. Where, before corona, numerous people were cycling, now only a few can be seen. In Georgia, people still struggle to keep 1.5 m distance, at least that was my experience during the journey from Amsterdam Airport to Sheraton Grand Tbilisi. Protocols to treat patients infected by corona are also different in The Netherlands: only people who have severe symptoms (temperature above 38 C and difficulty breathing) are tested on a GP’s decision.
CULTURE
Interview with an Artistic Couple, Part 2: Lia Shvelidze AND NOW, WHEN YOU PAINT ARE YOU INFLUENCED BY SOMEONE?
INTERVIEW BY NINI DAKHUNDARIDZE
G
EORGIA TODAY, at the invitation of BI Auction, sat down for an interview with a couple of artists who are very important for the Georgian contemporary art scene: Mamuka Tsetskhladze and Lia Shvelidze. The painter husband-and-wife discussed with us their growing up in the Soviet Union, their art influences, the story of how they met, and walk us through the process of the creative work. This week, we hear from Lia. “I was born in a family of artists. My father is a painter, so I watched him paint and give lessons to his students as I was growing up. The moment of deciding it was what I wanted to do for the rest of my life was a very interesting moment. At the age 16, I was graduating from school. I was good at French so they thought I would go into the Foreign Language Institute, but I started crying and announced that I wanted to be an artist. My father warned me it would be a very difficult choice. From today’s perspective, I realize that people choose professions that are good for their health and psyche, and if the choice is not right it can become a problem. It was the right choice for me.”
WHO HAD THE BIGGEST IMPACT ON YOUR WORK EARLY IN YOUR CAREER? Again, it came from myself and the environment I lived in. Mamuka’s case was different: he was not born into a family of artists but they did everything they could to support his passion and desire to create. I think that’s pretty big. When you are born into an artist's family there is no conflict and it just comes naturally.
An artist always feels influence. We are an extension of this huge cultural heritage and it’s a good thing, because it makes you a part of the great culture that Mankind has created. A lot of things are dictated by mood: you might be thinking about Basquiat and discover Leonardo's line in your work.
HOW IMPORTANT IS PROFESSIONAL EDUCATION IN THE DEVELOPMENT OF AN ARTIST‘S CREATIVITY AND BECOMING A GREAT PAINTER? The word creativity is very much associated with painting and I think it’s wrong. One can creatively decorate a table or design a dress, but painting needs to be taken more seriously. Associating painting with mere creativity belittles the art of painting a little bit. Of course, professional education is important, but artistic intelligence is more so. The era you were born in is also significant. Painters create an era, fashion, style. Every era has positive sides and gives its specific immunity to people surviving that era. Some develop this immunity and create high quality art, some fail.
DID YOU ENCOUNTER ANY OPPOSITION UNDER THE SOVIET SYSTEM THAT LIMITED YOUR CREATIVITY IN PAINTING? On the contrary, it strengthened me. During my student years, when I took up painting, it had its own rules and these rules were framed as Soviet Art. Because of the restrictions and limits set by the soviet government, I decided to move to the Faculty of Theater. It gave me freedom in art in general, because there I didn’t have to paint compositions of limited themes. It was the time of the Iron
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Curtain and you could only see some art pieces in black and white reproduction. Impressionism was not forbidden in the Soviet Union, Picasso was already a Communist artist and was widely propagated by the Soviet state. The most interesting thing was when I graduated and I thought with a diploma in my hand, they would exhibit my pieces in galleries without any problem. Yet even though I was a daughter of a painter, and had a diploma in my hand, they didn’t accept my work. When I asked why, I was told my painting was too small in size. Since then, I’ve been painting my works on large canvas: they made me insecure in that way, I guess! Like I said, this resistance makes some stronger, some weaker.
DID YOU EVER EXPERIENCE COUNTER-CULTURE DURING THE SOVIET REGIME? DID YOU EXPERIMENT WITH ‘SOTS-ART’? I have no boundaries. Painting is good because you are free to do whatever you want to do. You can see that this is my approach when you take a look at my work. We were very lucky to have started working in the studio which was located in the building of the Kote Marjanishvili State Academic Drama Theater, we had big canvases and we were making the pigments by ourselves. The scenography and costume painting was a great experience for me. There are a lot of painters that after having finished the academy, just continue to develop what they learned in there. I was lucky that way, too: it was like I completed one stage at the Academy, and then I became an artist.
MOVING ON TO CONTEMPORARY ART, WHAT IS YOUR VIEW OF THE MODERN GEORGIAN ART SCENE? Contemporary painting is very generous in its forms, and interesting, but from my
Journalists: Ana Dumbadze, Vazha Tavberidze, Nini Dakhundaridze, Tea Mariamidze, Tony Hanmer, Emil Avdaliani, Zaza Jgarkava, Nugzar B. Ruhadze, Beka Alexishvili, Elene Dzebizashvili, Maka Bibilashvili
experience it is a little boring. I can’t blame Georgian artists or their education; it’s more the fault of social division, and many other reasons. We had a much more exciting time back then when I was young: we were fighting for something. Now it seems we have nothing to fight for. That is why I see many modern art pieces as “second-hand”. For example, what was made during conceptualism abroad is now made in Georgia and somehow they think that it was Georgia that came up with it, and now this video art has emerged. It is secondary too.
YOU SAY YOU NEED SOMETHING TO FIGHT AGAINST TO BE INSPIRED. WHAT IS THE GREATEST INSPIRATION FOR YOU NOW? The paintings that were created before me. This is a great source of inspiration, but you might see a bird flying by and it can give birth to a lot of new ideas within you.
HOW DO YOU FEEL ABOUT THE ROLE OF BI AUCTION IN CONNECTING ART AND THE PEOPLE?
the depths of art. You can develop this by going to museums, auctions, etc. But above all, education is the most important, I think.
WHAT ARE YOUR FUTURE PLANS? I have bought some big canvases and I want to paint very beautiful paintings. That is my main goal – to paint something wonderful, and beautiful.
DO YOU HAVE ANY ADVICE FOR YOUNG STRIVING ARTISTS? I’ve had a studio for 5 years, and I teach those interested in art there. My main goal is to have those who already have that spark of art in them fall in love with it even more. Painting is time consuming: it takes a lot of energy from you, since you need to be really involved in the art scene. They need to see every exhibition, the good ones and the bad. We all went to many exhibitions, and the key to understanding the exhibition process is that if you don’t love a piece, you should be able to explain why. The ability to analyze is crucial for a painter. So I want to wish them a lot of success – it is a great profession. It can really bring a lot of joy.
Auctions are very important in keeping art alive, but the people who go to the auction are already supposed to have some background education in the arts. School education is important, the education from family is important, and selfeducation is important to really get into
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