POLITICS PAGE

The Great Reset – Blessed Are the Believers

OP-ED BY NUGZAR B. RUHADZE

Ifeel like a lightweight dwarfi sh nonentity when I compare myself to the big shots like the rich and famous ‘Davos Men,’ the world’s movers and shakers, as they are often alluded to by international mass media. This is an appellation once given by the well-known American political scientist Sam Huntington to the global elite of affl uent and powerful people, who view themselves as utterly globalized, because they have managed to fl y far beyond national restrictions and interests that sound archaic and immaterial in a differently operating modern world.

The next, 51st, World Economic Forum is being scheduled to take place in January 2021 at its habitual venue of Davos, Switzerland. Klaus Schwab, the WEF founder and Executive Chairman, together with his numerous and able staff, is planning to put together the internet connection of young men and women from hundreds of cities all over the world to virtually participate in the Conference for the discussion of our planet’s most challenging issues. As the forum organizers put it, following the pandemic, the old system of handling BY ANA DUMBADZE

Georgian Prime Minister Giorgi Gakharia made several statements at Thursday's cabinet meeting. In his speech, he touched upon the 2021 budget, the recent NATO Foreign Ministerial, the epidemiological situation in the country and assistance allocated for citizens amid the fi nancial diffi culties caused by the economic crisis. the world is no longer viable to guarantee survival, and we have to fi nd ways to build new structures to make human lives safer and more tolerable on earth. They call it the ‘window of opportunity’ which needs to be opened wide to give a chance for a ‘Great Reset’.

One of the foremost problems to be argued at the meeting of the worldwide decision makers is going to be climate change, which is fed to global citizenry as one of the biggest disasters of our time. It could very well be, but the conservative part of the world would not agree with the viability of this pattern of thinking. That’s why the upcoming world forum makes a lot of sense in trying to get us to a vigorous conclusion, which will hopefully be approximated to the truth as closely as possible. After all, this is going to be another international attempt to harmonize human life with the laws of our Mother Nature, although it remains somewhat vague if this is achievable when so much damage has already been done.

The question is whether decarbonizing the world economy is the best way out when this purported panacea is still questionable. Nobody argues that a better economic system is a strong prerequisite for introducing a fairer social life on Earth, but also, nobody can be certain about the most sustainable ways to "We have submitted to the Parliament the 2021 budget, a crucially important document which will guide us in 2021 and defi ne the country’s state of affairs in a year’s time," he said. "The budget is balanced, and the key goal is to fi ght the pandemic, secure targeted social assistance for the population, support businesses, and prepare the economy for post-crisis recovery. We developed this budget together with the International Monetary Fund, and this balanced budget covers all basic components necessary to fi ght against the pandemic and recession. We have

Image source: AFP via Getty Images achieve the desirable.

Will the Great Reset help? It could, but as always, there might always be a stray fl y in the ointment. No, I’m not trying to be a wet blanket: I simply have a habit of taking future doings with greater caution than others. Reinventing the world, if it must be reinvented, is not an easy thing to do, especially overnight, but blessed are the believers!

The forum planners are also talking about the new ‘Social Contract’ that will ‘honor the dignity of every human being’. Really? I would delightedly go for it, but announced a 4th wave of targeted social assistance for citizens and businesses, with a volume of 1 billion 420 mln GEL, of which 280 mln GEL is set aside for 2020 and 1 bln 140 mln for 2021. These sums will be channeled, above all else, toward healthcare, with an additional 450 mln GEL allocated under the next year’s budget and main expenses being COVID treatment, testing, preparation for, procurement of, and implementation of vaccination, and virus spread prevention. For citizen targeted assistance, next year’s budget allocates 540 mln GEL, and 430 mln GEL to support businesses," the I am from Missouri, so to speak, and I can’t help it. They also call the incipient encounter of the powers that be the ‘Twin Summit,’ because it will take place both virtually and in person, which is amazing. The world is becoming more transparent by the hour, but is the ‘more transparent world’ enough a tool to let humankind be fad and clad more effi ciently? Quote Mr. Schwab: “COVID-19 has accelerated our transition into the age of the Fourth Industrial Revolution. We have to make sure that the new technologies in the digital, biological and PM noted.

From Thursday, the Revenue Service is accepting applications, PM Gakharia added, and citizens and companies (unregistered, self-employed) who have temporarily lost sources of income should fi ll in an application in a timely manner in order to enjoy assistance before the New Year. "Today, we start accepting applications for targeted social assistance to citizens who, as a result of the last two months of restrictions, have temporarily lost their jobs. We must help, and the Finance Ministry has been instructed to issue this assistance before New Year. Citizens must apply to the relevant agencies in a timely manner to receive assistance. "Next year’s budget also increases pensions, an annual raise enshrined in legislation, so our pensioners will not have to wait from election to election to receive increased pensions. Signifi cant amounts are also allocated for constructing residences for refugees, 103 million GEL. I emphasize that, despite the crisis, fi nancing for infrastructural projects is increasing, and so is the budget of the Ministry of Regional Development and Infrastructure, in excess of 4 billion GEL. Financing is also increasing for the Ministry of Education, Ministry of Agriculture, Ministry of Economy, and every other Ministry relevant to the country’s rapid post-crisis economic recovery. The budget is the country’s main fi nancial document, which will be reviewed by Parliament, and it is of vital importance for this review to engage every political force that has received trust from Georgian citizens, and is therefore mandated to take part in debates on a document of systemic importance to the country. We hope that it will happen in the near future, before New Year, so that we can have interesting, albeit heated, discussions on this budget," he said. physical world remain human-centered and serve society as a whole, providing everyone with fair access.”

The Great Reset was universally supported by the corporate world and most of the nations of our planet, including our little Georgia with umpteen problems of its own, and by those whose fi nancial shoulder is critically indispensable for the forum to carry on with its international agendum, to introduce all those cherished alterations, to re-tailor life on planet Earth, and . . . I wish them

PM: Two-Month Restrictions Aim to Allow Us to Continue Normal Life from February

well!

Gakharia pointed out that everyone must comply with the law and imposed restrictions to ensure the fast curbing of community transfer. "Along with everything else, we should take into account that this two-month plan of restrictions, intensifi ed testing, etc., is aimed at curbing the community transfer rate most effi ciently within two months. Of course, we should understand that it is impossible to have a critical reduction in the viral spread within two months, though quick curbing of the community transfer rate was and remains important for us. That is why we should all comply with the law and imposed restrictions to safeguard each other and our elderly. Of course, freedom of expression will not be restricted by anyone, ever. Nevertheless, the requirements set nowadays by the law, epidemiologists and medical doctors are not that diffi cult to comply with. We may keep our freedom of expression and also comply with the basic rules."

He also commented on the recent NATO Foreign Ministerial and thanked and congratulated Georgia’s Foreign Minister for his successful participation. The Ministerial voiced messages of paramount importance to Georgia, Gakharia added. "Most importantly, NATO remains committed to continuing its open-door policy, a matter of principal importance to our country. I would like to thank the Foreign Ministers of our friend countries for supporting Georgia’s territorial integrity, further enhancing the country’s integration into the North-Atlantic Alliance, and stepping up Georgia’s defense capabilities through practical steps and plans. This is very important to us, because it reaffi rms that our partner and friend countries have a correct understanding of Georgia’s Euro-Atlantic integration, and we enjoy their full support," the PM said.

Quarantine or Commerce? The Economic Consequences of Counter-Pandemic Tunnel Vision

OP-ED BY MICHAEL GODWIN

As the nation moves into the grey chill of December, the redeeming joys of gathering with friends and family in a warm restaurant or bar are all but a faded memory. Heavy-handed mandates by the government have closed retail outlets, gathering places, and any respite from the doldrums of winter have been ripped from the people’s hands. While this is an immense hit on the social life of many, the true casualties are the small businesses that are forced to go to ground. Especially since these restrictions are set to be in force through the holiday season, one of the more economically robust periods of the year.

Where normally tourists and local residents alike are out dining, shopping, and generally driving the consumer end of the economy, this fi scal year, it will be frozen. While the government refuses to label it a “lockdown”, there are few other words to describe the draconian measures being taken against a virus with an extremely low kill ratio. A virus with a 99.1% survival rate among those who contract it, and a statistically 3.84% chance of even being contracted, should not have the control over the country that it does.

The government action is claimed to be backed by science and medical perspectives. However, this is a monochromatic way of looking at things. The economic, social, and security voices have largely been left unheard.

Economically, Georgia is already bleeding from the fi rst battle with restrictions. With a new round of restrictions comes

Image source: Shutterstock.com a new round of victims. In the fi rst 10 months of 2020, the Georgian economy has shrunk 5.1%. While a small number on the surface, this is massive for an economy already fi ghting for every fraction of growth percentage. With the announcement of more restrictions in November, experts are painting a worrisome picture for the future.

This impending collapse of the small business machine that underpins much of the local microeconomics in the large cities is like a rot in the walls. While it may not be seen so clearly now, it will slowly eat away at the structure of the nation. In addition, the loss of livelihoods for the people that own and work in these business will be the catalyst for a social shift.

This social shift, some of which is already being seen, has the potential to be a slippery slope backwards for the country. Many Georgians still remember the socio-economic strife of the 1990s, and with due fear would never wish its return. While this is still a fair way off in the future, it is shifts like we are seeing now that are the fi rst rumblings of its return. The recent string of highprofi le robberies is a stark contrast to the calm of the past years. In the fi rst day of December, a hospital meant for the treatment of COVID patients was robbed at gunpoint.

This uptick in crime is only the tip of the incoming iceberg that further restrictions and their harsh enforcement will bring. As people are left with few other options, many will return to the ways that they know will bring them income. In addition, violent crime, drug use and alcoholism will begin to set in. People stuck at home, with little motivation and no work, are more likely to resort to alternative means of respite. While there has been a small drug-fueled underworld in Tbilisi for some time, this has largely been kept in strict check by local law enforcement. Now, this will start to grow its infl uence, with more users turning to its euphoric allure.

This expansion of the criminal world stands to make life increasing harder for local authorities to provide the quality of life and stability to which many have become accustomed. The increased efforts to curb this expansion by the tion to serve the development of the Georgian economy. We have been fulfi lling this obligation in good faith for years, but this time we need support from the state us to be able to contribute to the state budget again. Given the extremely diffi cult economic situation, we ask you to consider the issue of easing the tax burden for one year, in particular, the reduction of the VAT rate for the hospitality industry. We also express our readiness to present our visions on this issue.

Given the dire employment situation in the country and in order to maximize the retention of employees, we appeal to you again to make us eligible to use the Income Tax Subsidy Program for at least one year.

In the conditions of limited activity, we are not able to conduct full economic activity, the existing costs in the fi eld and the consumers do not correspond to each other, and accordingly, we appeal to impose a grace period for legal entities on all types of utility bills.

We believe that with the strategy we have initiated, and in case of establishing the above-suggested preferential measures, the hospitality industry will be able to save its own economic activities under strict regulations and beyond, and retain employees with families to support. Please take into account the current extremely diffi cult situation and have the state support the private sector so that the outcome does not turn out to be even worse for the country and its population. We would like to positively assess the work process started by the state regarding the subsidy of income tax and the negotiation of giving lowinterest loans with the fi nancial sector. We request that this to be done in limited time so that the private sector can benWe welcome the appointment of coordination meetings and the joint discusgovernment will mean more restrictions and more heavy-handed efforts against the people. In return, the people will defy orders and respond with more violent crime, eventually turning on their local law enforcement and government representatives. The future snowball effect of this exchange is bleak.

While the intentions of the government restrictions may be well placed, they are off center when it comes to their effectiveness. Curfews are widely viewed as an unnecessary and misguided attempt to stop movement, as if a virus is set to a timer and only works a graveyard shift. Mandatory mask-wearing in open public spaces where the effectiveness is virtually nil, and forcing people to wear something that is largely a cosmetic representation of your adherence to regulations is something many would have thought to be something out of a dystopian novel.

The government’s willingness to turn their back on the economic lifelines that fuel the very country they say they are sworn to protect is disheartening. While they attempt to look through the eyes of the medical professional, they ignore the economist, the shopkeeper, the worker, and even the local policeman just trying to keep his childhood district safe from crime. The restrictions and their furtherance are an advancement of a line of rhetoric that only the fi scally illiterate and socio-economically inept would pursue. The best case scenario is to embrace smart and safe practices, and continue to let the economy, the free market, and the strength of the Georgian people, overcome this “pandemic.” The Kartli people of the mountains have weathered far worse, and this foreign

Hospitality Industry Demands Gov't Support to Survive the Pandemic Continued from page 1 on the operation of restaurants and cafes nies are no longer able to borrow and to be unjustifi ed in the light of the fact turn over their capital as needed, further

Most of the hospitality industry is that there are no statistics on what extent hampering their economic activities. related to domestic and foreign tourism. the visit of consumers to such establish- The attitude of the sector is the same It has been almost a year since the bor- ments carries a risk. towards individuals, the majority of the ders of Georgia were closed, and domes- Given the current epidemiological population has lost their jobs, and many tic tourism has, in fact, ceased to func- situation, we are trying to understand are facing this danger. Based on the above, tion, conditioned by the fear of infecting the government's decision to close food we ask you to take into account the curthe population with the virus. Although establishments, to show civil liability rent diffi cult situation and the state to industry members fully comply with the and to prevent the spread of the virus, become a fi nancial guarantor of the reprecommendations made by the Govern- but the current situation is catastrophic resentatives of the hospitality industry, ment of Georgia to prevent the spread for the industry. Once the restrictions both legal entities and individuals, with of the virus, the activities of individuals are lifted, 80% of food establishments the banking sector. working in restaurants, cafe-bars and will go bankrupt and most will no longer Since hospitality revenues are reduced other hospitality sectors, whose income be able to resume operations. to zero, it is necessary to take loans to is fully related to tourism, have now been Based on the above, we appeal to you continue post-deregulation activities, suspended or ceased. in order to save the hospitality industry which include purchasing highly expen-

The current situation is further aggra- during the pandemic, and to promote sive products, paying salaries, paying utilvated by the regulations of the Govern- economic activity and offer a unifi ed ity bills or losses, debts and other expenses. ment of Georgia “On the Approval of vision for problem-solving, where the Additionally, in conditions where banks the Rules of Isolation and Quarantine” balance between private and public do not immediately consider the applicaN322 of the decision on Traffi c and interests is maximized. In particular: tions of the representatives of the hospiRestrictions on Economic Activities, and During the two-month limitation period tality sector, we appeal to you to take these on November 26, 2020, the amendments from November 2020, the state provide into consideration and to support us in made by Government Resolution N699, compensation of 50% of the declared negotiating with private fi nancial instituwhich imply a virtually complete restric- salary of people employed in the hospi- tions to develop a project for low-interest tion of economic activity for restaurants tality sector (numbering up to 300,000). loans. Also, in case of reviewing/subsidizand cafes, and a transition to delivery We also offer the example of other coun- ing the loan obligations of the representaservice only. This puts the hospitality tries and provide the hospitality indus- tives of the hospitality sector, the personal industry in a diffi cult position, as, for try with zero percent long-term loans loan obligations of the founders of restauour industry, delivery service is actually so that industry representatives can pay rants or cafes / bars should be considered ineffective and unprofi table. salaries at least to employees. individually, so that, if the purpose of these

In addition, we would like to draw atten- We are ready, in the shortest possible loans goes to the money spent on restaution to the fact that the hospitality indus- time (maximum 5 days), together with rants/cafes / bars, these liabilities to be try employs thousands of people who the state, to develop additional regula- included in the loan package to cover busithey generate a livelihood for themselves, tions to renew the work process in the ness liabilities. which was already minimized during the fi eld of hospitality, and the responsibil- Most of the development of the Georpandemic. It is now forbidden to move, ity for the protection and control of the gian economy is related to tourism. As and the costs of moving employees, for developed regulations will be borne a result of our selfl ess work, the hospithe employees themselves and the com- entirely by the private sector. tality industry in the country is at the panies which have no income at all, can- Given the situation in the country and highest level. The existence of the hosnot be provided. Industry members try the regulations, the hospitality industry pitality component is one of the most their best to keep employees and not put is in an extremely diffi cult situation. important factors for the development them in an extremely diffi cult situation, Financial institutions refuse to lend to of the country's economy, culture, agrialthough the resources that provide restaurants and cafes, as well as to those culture and tourism. Each person workemployee retention in the case of restau- who work there. This action of the banks ing in the hospitality industry contributes rants and cafes no longer exist. We con- further worsens the situation of persons millions of GEL to the state budget every sider such an extremely strict restriction working in the fi eld. As a result, compa- year, which we consider as our obligaefi t from this relief as soon as possible. invader will not be any exception. sion of these issues, which will facilitate communication between private and public structures.

The signatory organizations fully share the content of this announcement and express their readiness to conduct the joint work process.

Sincerely,

Members of the Hospitality Industry Initiative: 1. Restaurant "Black Lion" 2. Cafe "Leila" 3. Cafe "Litera" 4. Restaurant "Culinarium Khasheria" 5. Taqueria “Tacos” 6. Restaurant "Lisi Lake" 7. Food Facility Agency “Gastronaut” 8. Restaurant "Keto and Kote" 9. Restaurant "Chveni" 10. Restaurant "Keti's Bistro" 11. Restaurant "Veris Duqani" 12. Restaurant "Dining Room" 13. Restaurant "Z10" 14. Pizzeria "Pazza" 15. Restaurant "Suliko" 16. Restaurant "l'Eclair de Génie” 17. Restaurant "Veriko" 18. Restaurant "Onore" 19. Cafe "Mziuri" 20. Georgian Culinary Federation 21. Restaurant "Barbarestan" 22. Restaurant "Zala" 23. Restaurant "Tamtaki" 24. Cafe "Coffee Lab" 25. Wine bar "G Vino" 26. Restaurant "Kakheli" 27. Restaurant "Tsiskvili Group" 28. Cafe "Kala" 29. Restaurant "HB" 30. Bar "Acid Bar" 31. Restaurant "Sofi a Melnikova's Fantastic Douqan" 32. Restaurant "Pastorali" 33. Restaurant "Shushabandi" 34. Restaurant "Suzy Wong" 35. Restaurant "Tabla"