Issue no: 1250
• JUNE 12 - 18, 2020 • PUBLISHED WEEKLY
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In this week’s issue... City Hall to Rehabilitate, Renovate Recreational Areas in Tbilisi NEWS PAGE 2
Georgia to Assist Armenia with Medical Staff NEWS PAGE 2
Italian Ambassador: Italy Has Strong Commitment to the Idea that Nobody Should Be Left Behind
FOCUS ON OPENING BORDERS & BUSINESS
In a GT Exclusive, we speak with Israeli Ambassador Ran Gidor on building our countries' connections post-COVID
Visionary Investor from Iraq Building into the Future with Batumi View Marina in Georgia BUSINESS PAGE 7
PAGE 4
Wizz Air Drops 19 Destinations from Kutaisi Base
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ungarian lowcoster WizzAir has removed 19 routes from Kutaisi, its base in Georgia, and decreased the number of based aircraft to two, down from three, Belgian aviation news platform aviation24.be reports, relying on a Twitter user @SeanM1997 as a source. "In July 2019, WizzAir announced that its base in Kutaisi was going to increase from three to five aircraft, with 12 new routes. Only the Poznan route has been kept and the other 11 routes have been dropped or canceled before starting. The carrier is revisiting bases at the moment. Due to the current coronavirus outbreak, it decided to remove one aircraft, and to fly only with two based aircraft, dropping or simply canceling 19 routes," dfwatch.net reports. The list of cancelled routes includes Nice, Stockholm Skavsta, Turku, Heraklion, Karlsruhe/ Baden-Baden, Nuremberg, Venice Treviso, Pisa, Naples, London Luton, Cologne Bonn, Copenhagen, Eindhoven, Barcelona, Bari, Paris Beauvais, Brussels Charleroi, Frankfurt Hahn, and Hamburg. The Kutaisi base is not the exception to flight
POLITICS PAGE 5
COVID-19 – Economies around the World Brace for Recession BUSINESS PAGE 8
Blog: Colored Thoughts on Georgia SOCIETY PAGE 10
About a Fascinating History of Russo-Georgian Relations CULTURE PAGE 11 Prepared for Georgia Today Business by
Markets As of 05ͲJunͲ2020
STOCKS Bank of Georgia (BGEO LN)
m/m
w/w
GEOROG 04/21
100.50 (YTM 6.14%)
+1,5%
+4,4%
GEORG 04/21
BONDS
102.79 (YTM 3.48%)
+0,0%
+1,6%
m/m
+6,9%
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101.82 (YTM 6.80%)
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+3,6%
+21,1%
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99.16 (YTM 6.30%)
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w/w
GHG (GHG LN)
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w/w
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42,30 +19,7%
+36,6%
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2,9653
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Ͳ2,6%
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GEL / EUR
3,3483
Ͳ4,6%
Ͳ3,5%
Gold Spot (US$/OZ)
to 6), Cluj Napoca (from 7 to 5), Skopje (from 5 to 4), Kyiv Zhuliany (from 4 to 3), Timisoara & Vilnius (from 3 to 2), Craiova, Debrecen, Sibiu & Wroclaw (from 2 to 1).
Price
+14,4% +20,5%
+7,4%
Crude Oil, Brent (US$/bbl)
cuts, as WizzAir is also reducing the number of aircraft in several Eastern European bases, including Budapest (from 15 to 13), Warsaw Chopin (from 8 to 7), Katowice & Gdansk (from 7
w/w
GBP 4.94
COMMODITIES
Source: dfwatch.net
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GBP 10.72 +15,9%
Georgia Capital (CGEO LN)
Price 1 685,06
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3,7564
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Ͳ5,6%
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0,4380
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9 814,08
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0,1116
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155,83
+6,7%
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EUR / USD
0,8856
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MSCI EM
1 002,65
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GBP / USD
0,7894
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SP 500
3 193,93
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0,9623
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2 201,98
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RUB / USD
68,6864
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GT Index (GEL)
1 582,68
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TRY / USD
6,7700
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GT Index (USD)
1 208,13
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AZN / USD
1,7000
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NEWS
GEORGIA TODAY
JUNE 12 - 18, 2020
City Hall to Rehabilitate, Renovate Recreational Areas in Tbilisi BY ANA DUMBADZE
T
bilisi City Hall plans to rehabilitate and renovate recreational areas in Georgia's capital, Mayor Kakha Kaladze announced
Wednesday. In particular, the complete rehabilitation of Dedaena Park and March 9 Square, both in the vicinity of Dry Bridge, is scheduled. "With the current ecological situation and its improvement in mind, we know one of the main directions for improving the current situation is the creation of new spaces and renovation-rehabilitation projects of existing squares and parks," the Mayor said.
the arrangement of trade spaces is envisaged. Paintings have been sold here for years, we will not stop these people; on the contrary, we will provide a very comfortable and exciting environment, where civilized and normal conditions will be available to both locals and tourists," Kaladze stated. He added that the existing 'skate park' located in the rehabilitation area, which is in a very bad condition, will be dismantled. "A lot of kids enjoy this park. Instead of the outdated 'skate park', a new, modern, European standard park will be arranged, trees and plants will be planted, irrigation systems and lighting will be arranged. I promise you that people of all generations will be proud of the projects we are implementing throughout the city," he noted.
"We started the rehabilitation of Saarbrücken Square and the Dry Bridge last year, which is now complete. "The second stage of works, which is also important and envisages a complete rehabilitation and renovation of Dedaena Park and March 9 Square, has already been launched. "Also, as part of this project, we connected these two gardens with a very beautiful tunnel. People will not have to cross the road above: it will be directly possible to move between these two gardens through the tunnel. "At this stage, the existing infrastructure and damaged paved surface are being dismantled in the rehabilitation area and the volume of the green cover is being increased. Our goal is to have more green space in these two gardens. "Within the framework of this project,
Georgia to Assist Armenia with Medical Staff BY ANA DUMBADZE
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eorgia will assist Armenia with medical staff, Prime Minister Giorgi Gakharia announced at Wednesday's government sitting. "This is a global crisis, a global challenge, both epidemiologically and medically. This is also an economic crisis, and no country can handle it alone. That is why we have to support each other. As you know, the situation in our neighboring countries is quite tense. I am
Image source: armenpress.am
personally in daily contact with the Prime Minister of Armenia and other colleagues, the Minister of Health, the Minister of Economy, and we have identified what kind of assistance our neighbors need. Mutual support is extremely important now. The Ministry of Health already plans to offer assistance with medical staff, as requested by our neighbors," the PM stated. Armenia has already registered more than 14,000 cases of COVID-19. Currently, 8,650 people remain infected with COVID-19 in Armenia, while 227 have died of the coronavirus in the country.
COVID-19 Regional Safety Assessment: Georgia Holds Leading Position e-government systems and defense capabilities. Georgia has gained 550 points and ranks first in the region in terms of quarantine efficiency, government’s efficiency in risk management, monitoring and detection, health system readiness, regional resilience and emergency preparedness. The organization conducted research in Eastern Europe and Central Asia, based on data from 12 countries, including Georgia, Azerbaijan, Armenia, Belarus, Ukraine, Moldova, Turkmenistan, Uzbekistan, Tajikistan, Kyrgyzstan, Kazakhstan and Russia. In total, Deep Knowledge Group (DKG) did research in 200 countries and regions, in which Georgia took 39th place.
BY ANA DUMBADZE
D
eep Knowledge Group (DKG) assessed countries based on 76 parameters to determine their health safety ratio, treatment efficiency and risk level during the COVID19 pandemic. Some of the parameters included COVID-19 cases and deaths, geographic size and demographics, hospital capacity, medical expertise, and GovTech
US Republican Study Committee's National Security Strategy Mentions Georgia BY BEKA ALEXISHVILI
T
he US Republicans Study Committee has published its National Security Strategy with the heading “Strengthening America and Countering Global Threats”. The authors of the report are Chairman of the Committee, Mike Johnson, and Chairman of Foreign Affairs and National Security Task Force, Joe Wilson. Georgia is mentioned a number of times in the document. Specifically, the report mentions Georgia in the context of the Russian propaganda dissuasion, as well as Georgia’s occupied territories by Russia. Overall, the document highlights Georgia’s Support Act, which has to be acted on and
which is already approved by the House of Representatives. “The Task Force believes that Congress should continue to work to strengthen Georgia’s readiness and defense capabilities by approving arms sales to Georgia in support of its efforts against Russian aggression, offering military assistance, and improving Georgia’s interoperability with NATO. The Georgia Support Act, which has passed the House but not the Senate, mandates a report on how the United States can work with Georgia to counter Russian disinformation and ensure Georgian security needs. It also requires the President to impose sanctions against foreign persons responsible for or complicit in serious human rights abuses in the Russian-occupied Georgian regions of Abkhazia and Tskhinvali,” reads the issued statement.
GEORGIA TODAY JUNE 12 - 18, 2020
NEWS
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POLITICS
GEORGIA TODAY
JUNE 12 - 18, 2020
Israeli Ambassador: We Want Georgia to Be among First Countries with which Tourism Will Resume EXCLUSIVE INTERVIEW WITH GT LIVE
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s part of the GT LIVE INTERVIEWS – “Ambassadors Go Live” series, Katie Ruth Davies, Editor-inChief of Georgia Today, has been speaking to numerous ambassadors about the way COVID-19 has impacted their countries, how their governments are handling the fallout, and what aid they have offered to others to help in the fight. On Monday, we spoke to the Israeli Ambassador to Georgia, Ran Gidor, who has been in Georgia since January this year and has in the past held positions in Cameroon, London and Beijing. The latest COVID-19 statistics from Israel, which is 22,145 km² and has a population of 8.884 million, are as follows: Israel appears 43rd on the Worldometer coronavirus list. It has 2,801 active corona cases, of which 31 are critical. 299 Israeli citizens have died, and total cases currently stand at 18,268.
HOW HAVE YOU AND YOUR EMBASSY COPED AND ADJUSTED, AND INDEED HELPED ISRAELI CITIZENS LIVING IN GEORGIA, DURING THE PANDEMIC? We very quickly found ourselves dealing with humanitarian issues involving Georgian citizens, but primarily Israeli citizens. Georgia is considered a favorite destination for Israeli couples seeking surrogacy, every year an average of 300 couples choose to come here because in Georgia everything is above-board, perfectly regulated by the authorities, and legitimate. When the coronavirus crisis started, dozens of Israeli couples were stranded back home, having already suffered in trying and failing to conceive their own children, unable to fly to Tbilisi to meet the babies they had been waiting for. The Georgian authorities, like others, hermetically sealed the country, but in dealing discreetly and sensitively with these Israeli families, they were incredible- never would I have expected the degree of cooperation, flexibility and generosity we saw, and we are all hugely grateful.
WHAT STEPS HAVE YOUR COUNTRY’S GOVERNMENT AND HEALTHCARE SYSTEM TAKEN TO FIGHT COVID-19 AT HOME, AND HOW EFFECTIVE DO YOU THINK THAT FIGHT HAS BEEN? We worked fast: suspending all flights from China on January 31, and by midMarch stopping all in-coming flights. The shutting down of shopping malls, dining venues, schools, etc. happened as it did elsewhere. Special about Israel is the fact we were the first country to use cyber-technology, normally used to identify external threats, to identify infections. It was quite controversial, as it hadn’t been designed for civilian purposes, and there were demonstrations against it. As a democracy, we had to find the right balance, and with compromises made, now the government is busy legislating it for use should such a pandemic happen again, guaranteeing a more systemic reaction and level of preparedness. Israel is just a third of the size of Georgia, and because of our somewhat unfortunate geopolitical position in the Middle East, we don’t have land crossings with most of the countries that surround us. The only access is Tel Aviv International Airport. This made it easy to “seal” the country. Demographically, too, we
are at an advantage, as our population is quite young and so less susceptible to the coronavirus. If anything could have been done differently, I think it would be to keep more parts of the economy going- pick and choose rather than shutting down in absolute terms. Also, PCR tests should have been carried out on a wider basis right from the start. We were slow to react, as were most governments. We reached a peak of 10,000 PCR tests a day in April, and have kept it that way.
TELL US ABOUT ISRAEL'S WORK TO DEVELOP A VACCINE. The Israeli economy is based on hightech innovation and entrepreneurship. Several Israeli start-ups have developed innovative ways to prevent the spread of COVID-19. In terms of treatment, one Israeli company won a EUR 50 mln grant from the EIB to develop treatment based on placenta-cell therapy. They have already announced a major breakthrough. The Biological Research Institute, normally carrying out highly confidential work for the military, identified eight antibodies to COVID-19 in the plasma of 19 Israeli patients with severe symptoms. These antibodies have already been tested on rodents, and they are ready to move on to human trials. This is the first of its kind in the world to identify so many antibodies that can eliminate COVID-19. [For more examples, see the live interview!]
TELL US ABOUT THE AID ISRAEL HAS GIVEN OTHERS, SUCH AS THROUGH THE MASHAV PROGRAM. Mashav is the equivalent of USAID or the German GIZ: an international development corporation under the Ministry of Foreign Affairs. Created 60 years ago, it’s responsible for training hundreds of thousands of people in developing countries worldwide. Israel was the 4th country to establish an embassy in Georgia in the early 90s, and it has already trained over 1500 women and men in a huge range of disciplines, from healthcare to education and special needs education, women’s empowerment to agriculture and irrigation- you name it! During the pandemic, training has continued, but online.
ISRAEL IS THIS YEAR “72 YEARS STRONG”. WHAT IS YOUR COUNTRY DOING TO SUPPORT ITS CITIZENS, ESPECIALLY THOSE WHO LOST THEIR JOBS DUE TO THE PANDEMIC? The Israeli government announced a package of measures: about 80 billion Israeli Shekels, ($23,159,673.60) equivalent to 6% of our GDP, to assist the selfemployed, people who were unemployed even before the crisis, SMEs, the socially vulnerable, such as single parents, and to accelerate economic activity. In addition, civil measures were implemented, among them the deferral of tax returns and mortgage repayments, all designed to make it easier for ordinary people to get back on their feet and turn the wheels of the economy.
HOW DO YOU SEE YOUR COUNTRY IN 6 MONTHS’/ ONE YEAR’S TIME IN TERMS OF ECONOMIC RECOVERY? AND WHEN WILL YOU OPEN TO TOURISTS? According to major ranking agencies like Standard & Poor’s and Moody’s, Israel has an extremely resilient economy and, despite the fallout following the pandemic, Israel is expected to absorb the aftershocks. That said, the GDP is, for the first time in two decades, set to
shrink, and we can expect a full scale recession. Yet, the World Bank and IMF predict that in 2021 Israel’s economy will register a 5-6% growth, which is enormous for a developed country, way above the usual 1.5 to 2%. Until last year, our growth rate registered 3.5% on average. In terms of tourism, we were about to announce the resumption of flights by mid-June, early July. However, 10 days ago, we saw a spike in COVID-19 cases. Since 29 May, we’ve had a daily average of 100 infections. Now we know better how to control the spread, and the outbreak has been limited to identified localities, there’s no need to paralyze the economy. But reopening the borders to international touristshashadtobepushedback.Theapproach now is to select “green” countries with low infections, like Israel. Georgia is among the top four with whom we are ready to lower the bars. [EDITOR’S NOTE: On Wednesday, the Georgian government announced Israel will unlikely be one of the first countries to open a safe tourist corridor with Georgia in the post-COVID-19 period, following consultations with health experts after the sudden deterioration of the epidemiological situation there. The date for opening the border with Israel has been pushed back at least two weeks. The number of confirmed cases of new coronavirus there had grown by 148 since Monday evening].
TELL US ABOUT THE $22 BLN INVESTMENT PLEDGED FOR RENEWABLE ENERGY IN ISRAEL, AND ISRAEL’S WORK TO PROTECT ITS INCREDIBLE BIODIVERSITY. The Israel Ministry of Energy announced this ambitious plan to be implemented gradually until 2030. It will reduce air pollution by 93%, and greenhouse gases by 50% per capita. Solar installations will replace fossil fuels and supply 80% of the electricity during peak hours. 60% of the territory of Israel 72 years ago was desert, as it borders on Africa. But it is now the only country in the world in which the desert is shrinking. Until 6-7 years ago, we were in dire need of fresh drinking water, and to combat this, we developed a cutting-edge water purification system so that for the past three years, we’ve been able to export drinking and irrigation water to neighboring countries. We’re also about to launch the construction of the biggest water purification plant on the planet. All of that stems from survival, and it’s all about water management. Drip irrigation, which minimizes water wastage, and which is now used worldwide, Georgia included, was invented in Israel 50 years ago. The northern part of Israel compares to Southern France/Italy and we know we cannot afford to diminish the nature we have. The cities of Tel Aviv, Jerusalem and Haifa are among the most crowded urban environments on the planet, but beyond those, we are seeing the reemergence of species we thought had disappeared.
MANY PUBLICATIONS, BOTH IN THE US AND EUROPE, HAVE PRAISED GEORGIA’S HANDLING OF THE PANDEMIC. FROM WHAT YOU’VE READ OR HEARD, WHAT’S YOUR TAKE ON THAT? The Georgian government took very effective measures. I’m not a public health expert, but from my conversations with Georgian civil servants and public healthcare experts and other diplomats, it’s clear that Georgia did the right thing by imposing restrictions so early on. For me, the single best thing the Georgian authorities chose to do was to give center
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The only known portrait of Shota Rustaveli, Georgia's national poet, at Jerusalem's 11th century Monastery of the Cross
stage to the healthcare professionals. In many other countries, Israel included, we saw mostly politicians night after night on TV. Rightly or wrongly, politicians are not well-liked or popular, especially not in times of crisis. Regardless of political ideology, you channel all your frustration towards politicians, and, rightly or wrongly, most people do not believe politicians. But when you see professionals, like the head of the Tbilisi Infectious Diseases Hospital, which Georgia put center-stage right from the start, it inspires confidence and trust amongst the population. To say something a little undiplomatic now, Georgian people are not renowned for their adherence to regulations, being quite fiercely independent-minded. What was striking this time, was the degree to which the population adhered to the public restrictions, which could only have come from a shared sense of confidence that the authorities were doing the right thing.
HOW DO YOU SEE GEORGIA IN 6 MONTHS’/ONE YEAR’S TIME IN TERMS OF ECONOMIC RECOVERY? The Georgian economy has been on a steady course towards prosperity, to becoming a middle-income country, for over a decade, so there are no revolutionary measures that need to be adopted. It needs to steady the course and play to its strengths. Just by opening its borders, it will be flooded with tourists. Last year, there were 200,000 Israeli visitors to Georgia, representing the single biggest group in the world visiting from a country that was not part of the former Soviet Union. This year, if not for COVID19, we would have had close to 300,000 Israeli tourists. And Israelis are big spenders, so that’s very good for the Georgian economy! We have over 100,000 Georgian-Jews who have become Israeli citizens, and they like to come back to visit family, for
nostalgia, or because they have property, throughout the year, not only in summer. No government advertising campaign is needed: Israelis are lining up to come to Georgia! Something else that needs to be done: Georgia has made huge strides in diversifying its economy to a sophisticated level compared to how it was in the 90s and early 00s. That trajectory has to be nurtured. We are in the process of establishing a bilateral Georgia-Israeli Chamber of Commerce, which, for the first time since the establishment of diplomatic relations 30 years ago, will provide an indispensable tool for businesses and investors in both countries. Gone are the days when people came to Georgia for the Khachapuri and Borjomi water. Georgia rightly aspires to be a modern, sophisticated economy, and for that it needs to adopt modern, sophisticated ways of marketing itself as an attractive investment destination. Israel’s economy is based on innovation- this is something we’ve been sharing with our Georgian partners. In the past two weeks alone, we launched two online training seminars- with the Georgian Innovation & Technology Agency, and with a Georgian incubator called Touch, training young Georgian entrepreneurs, women and men in their early 20s, in something which is beautifully simple: how to take an idea and turn it into a profit-generating enterprise, from a tiny company with three employees to a larger employer. There’s an Israeli tech-hub in Tbilisi in BTU, where we offer computer skills training to students, all of whom are virtually guaranteed with jobs in Israeli start-up companies. It is part of our contribution to the renaissance of the Georgian economy. Keep an eye on the Georgia Today facebook page to see who we’ll be interviewing next for GT Live Interviews, and keep up to date with all the latest news on georgiatoday.ge.
POLITICS
GEORGIA TODAY JUNE 12 - 18, 2020
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Italian Ambassador: Italy Has Strong Commitment to the Idea that Nobody Should Be Left Behind EXCLUSIVE INTERVIEW WITH GT LIVE
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ast Friday, we spoke to the Italian Ambassador to Georgia, Enrico Valvo, as part of the GT LIVE INTERVIEWS – “AMBASSADORS GO LIVE” series. Mr Valvo has been in Georgia since December 2019, and has in the past held positions in Berlin and Moscow. We quizzed him on Italy’s handling of the coronavirus and asked him for his outlook on moving forward post-Covid. The latest COVID-19 statistics from Italy, which is 301,338 km² and has a population of 60.36 million, are as follows: Italy is 7th on the Worldometer coronavirus list, behind the USA, Brazil, Russia, the UK, Spain, and India. It has 31,710 active corona cases, of which 249 are critical. 34,114 Italian citizens have died, and total cases currently stand at 235,763.
LAST WEEK, ITALY OPENED ITSELF TO BOTH DOMESTIC AND EUROPEAN TOURISTS. TELL US ABOUT THAT. WHEN WILL THE BORDERS OPEN FOR NON-EU CITIZENS?
From May 4, we began to revitalize Italy’s social and economic activities, keeping a close eye on the numbers of new cases. For weeks now, coronavirus cases have been decreasing substantially, so that, on June 3, we were able to lift all travel curbs on domestic and interEuropean travel, a major milestone on Italy's road to recovery. There is a common agreement among the members of the Schengen space concerning opening up borders to nonEU citizens. My understanding is that the Ministers have agreed to prolong the restrictions for a couple more weeks.
TELL US WHAT STEPS YOUR COUNTRY’S GOVERNMENT AND HEALTHCARE SYSTEM HAVE BEEN TAKING TO FIGHT COVID-19. The foremost problem was that Italy was the first European country to experience a massive outbreak of the coronavirus infection; this means that we had to discover one after the other measures which were taken a couple of weeks later by most of our partners. In the first phase, we introduced an almost complete lockdown, with the exception of absolutely essential activities. There was a moment when the healthcare system was stretched to full capacity, and I believe the drastic
measures that Italy took were indispensable for avoiding the system’s total breakdown.
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TELL US ABOUT YOUR COUNTRY'S WORK TO DEVELOP A VACCINE. There is one Italian company which is working on a vaccine together with a partner British company, and they are preparing to start trials in a couple of months. The Italian government is dedicated to the idea that the vaccine, once developed, should be available to everyone in need. Nobody should be left behind. This is also one of the reasons for strong Italian commitment towards the global alliance for vaccination and immunization.
WHAT IS YOUR COUNTRY DOING TO SUPPORT ITS CITIZENS, ESPECIALLY THOSE WHO LOST THEIR JOBS DUE TO THE PANDEMIC? The economic impact caused by the pandemic has been grave for Italy, as well as the partners with whom we are interconnected in terms of the product chain. One main effort has been to avoid massive layoffs by sustaining salaries in the crisis period. The country has also been helping private companies which
are facing risks of going bankrupt; in this case, the leverages that have been used include loan and tax exemptions. Another part of the response has been the European response, which we are setting up in the framework of the European Union together with our partners. This relates to very significant steps that are in the making, including the European insurance mechanism and the recovery fund.
will depend on whether we have to tackle second or third waves of the coronavirus pandemic, and a lot will depend on the things we might be able to control better.
IF YOU COULD GO BACK IN TIME, WHAT WOULD YOU DO/RECOMMEND BE DONE DIFFERENTLY?
The simple answer is yes, it was outstanding. The measures were taken quickly and effectively, and people implemented them with a high sense of social responsibility and self-discipline. Now, Georgia is in a strong position to restart its normal economic activity. Georgia’s economy is quite open to external shocks and external factors; very much will depend on what happens in the global economy. But my outlook is optimistic.
As happens in all democratic societies, we have been thinking about what could have been done better or differently. All in all, the strategy was right and the harsh measures were necessary. It is true that these measures have caused substantial social and economic damage, which is far from over. I think it will take time to learn all the necessary lessons. One lesson we all have learned is that we should invest in preparedness in our health systems to be ready for similar pandemics.
HOW DO YOU SEE YOUR COUNTRY IN 6 MONTHS’/ ONE YEAR’S TIME? It’s very hard to make predictions. I couldn’t have imagined the current changes three months ago. Very much
MANY PUBLICATIONS, BOTH IN THE US AND EUROPE, HAVE PRAISED GEORGIA’S HANDLING OF THE PANDEMIC. WHAT’S YOUR TAKE ON THAT?
WHAT HAS YOUR BIGGEST TAKE-AWAY BEEN FROM THIS WHOLE EXPERIENCE? The biggest take-away for me was the realization that life is very unpredictable, and that we should learn to adapt quite swiftly, both individually and collectively. I think we also realized that in many spaces we had been missing the human element; I think the experience was necessary to help us stand together, stronger.
Georgia Ranks 95th in Global Peace Index, Improves Its Position by 4 Points BY ANA DUMBADZE
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eorgia has ranked 95th in the Global Peace Index among 167 states. As a result, the country has improved its position by four points compared to the 2019 ranking. The new study shows that the level of global peacefulness deteriorated, with the average country score falling by 0.34%. This is the ninth deterioration in peacefulness in the last twelve years, with 81 countries improving, and 80 recording deteriorations over the past year. The 2020 GPI reveals a world in which the conflicts and crises that emerged in the past decade have begun to abate, only to be replaced with a new wave of tension and uncertainty as a result of the COVID-19 pandemic. Iceland remains the most peaceful country in the world, a position it has
held since 2008. It is joined at the top of the index by New Zealand, Austria, Portugal, and Denmark. Afghanistan is the least peaceful country in the world for the second year in a row, followed by Syria, Iraq, South Sudan and Yemen. All, except Yemen, have been ranked amongst the five least peaceful since at least 2015. Only two of the nine regions in the world became more peaceful over the
past year. The greatest improvement occurred in the Russia and Eurasia region, followed by North America. North America was the only region to record improvements across all three domains, while Russia and Eurasia recorded improvements in Ongoing Conflict and Safety and Security, but a deterioration on the Militarisation domain. Europe remains the most peaceful
region in the world, although it recorded a slight deterioration in peacefulness. "The world is now considerably less peaceful than it was at the inception of the index. Since 2008 the average level of country peacefulness has deteriorated 3.76%. There have been year on year deteriorations in peacefulness for nine of the last 12 years. The fall in peacefulness over the past decade was caused by a wide range of factors, including increased terrorist activity, the intensification of conflicts in the Middle East, rising regional tensions in Eastern Europe and Northeast Asia, and increasing numbers of refugees and heightened political tensions in Europe and the US," reads the study. This is the 14th edition of the Global Peace Index (GPI), which ranks 163 independent states and territories based on their level of peacefulness. Produced by the Institute for Economics and Peace (IEP), the GPI is the world’s leading measure of global peacefulness. This report presents the most comprehensive data-driven analysis to-date on trends in peace, its economic value, and how to develop peaceful societies.
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BUSINESS
GEORGIA TODAY
JUNE 12 - 18, 2020
ISET | Coronavirus Realities: Dismal Q2 and Q3 Growth Forecasts May Not Be Low Enough BY DAVIT KESHELAVA AND YASYA BABYCH
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SET-PI has updated its Georgian real GDP growth rate forecast for the second and third quarters of 2020. Here are the highlights of this month’s release:
HIGHLIGHTS • Geostat has released its rapid estimate of real GDP growth for the first quarter of 2020, which stands at 1.5%; • The estimated real GDP declined by 16.6% in April 2020 y-o-y and by 3.6 percent in the first four months of 2020. In April, the estimated real growth compared to the same period of the previous year posted negative in almost all activities, except mining and quarrying. Moreover, VAT payers’ turnover, used in rapid estimations of economic growth, dropped by 32.8% annually over the same period; • ISET-PI predicted 2.0% and 2.5% growth for the second and third quarters of 2020, respectively, based on March 2020 data. This does not yet fully account for the negative impacts of the COVID19 pandemic on the national economy; • Consequently, the annual growth in 2020, from March data, is expected to be 2.1% in the worst-case scenario, and 2.5% in the best-case or an average longterm growth scenario. Our middle-ofthe-road scenario (based on the average growth in the last four quarters) predicts a 2.3% increase in real GDP; • COVID-19 is expected to impact the Georgian economy via tourism, remittances, trade, lower domestic production and service provision due to the strict social-isolation measures. According to the National Bank of Georgia (NBG) and the International Monetary Fund (IMF), Georgia’s annual real GDP growth forecast for 2020 amounts to -4%.
NATIONAL AND FOREIGN CURRENCY DEPOSITS In March, all national currency deposits (except current accounts) experienced notable growth in annual terms. In particular, national currency total deposits increased by 10.5% y-o-y, while foreign currency total deposits increased by 32.1%, compared to the same month of the previous year. The dollarization rates of non-bank deposits initially increased to 66.7% in March and then decreased to 65.9% in April. Our model suggests
these trends in national and foreign deposits have had a significant positive contribution to real GDP growth.
DECLINE IN DOMESTIC CONSUMPTION DUE TO BEHAVIORAL AND POLICY CHANGES I.e. people staying home as a precaution or as a requirement. A significant reduction in household consumption (e.g., spending on transportation, clothing, electronics, and domestic services) will likely have resulted in an overall slowdown of GDP growth.
DECLINE IN DOMESTIC INVESTMENT Uncertainty and deteriorating business sentiments will stall commercial investment planning. Expectations of a global recession could become self-fulfilling if ‘business-as-usual’ does not resume within the next few months. If companies expect a slowdown in demand, they will also delay investment, and thus GDP will decline further.
EXTERNAL MERCHANDISE TRADE
In March, Georgia’s exports declined by 22.1% y-o-y, while imports decreased by 13.4%
In the face of the harsh measures, countries have taken to overcome the COVID19 pandemic, trade of all commodities, except food and medicine, are projected to decline; depending on the duration of the shock. In March, Georgia’s exports declined by 22.1% y-o-y, while imports decreased by 13.4%. The trade deficit, however, shrank by 6.8% y-o-y, and amounted to 403.1 million US dollars. Furthermore, deterioration of external trade was even more pronounced in April (not yet reflected in the model). Where Georgian exports declined by 27.9% compared to the same month of the previous year, driven by the reduced exports/re-exports of motor cars, cigarettes, and medicines to Azerbaijan;
alongside declining export of wine and mineral water to Russia; the export/reexport of cars, alcoholic beverages, and mineral water to Ukraine; and the reexport of cars to Armenia. There was however a slight increase in the export of ferro-alloys to the United States. During the same period, the import of goods decreased by 38.5%, driven by petroleum and related fuel products from Russia and Azerbaijan, motor cars from the United States and Germany, and reduced imports from Turkey and China. As a result, the trade deficit shrank by 46% compared to the same month in 2019 and amounted to 234.8 million US dollars.
REMITTANCE INFLOWS Since all countries will suffer economically in the aftermath of the health and oil price crises, we expect a significant slowdown in remittance inflows from the rest of the world. The remittances decline will hit Georgia particularly hard as it is among one of the top receiving countries for foreign transfers. Furthermore, in April remittances decreased by 43.3% y-o-y, reducing disposable income, consumption, and real GDP growth. The main contributors to the decline were the Russian Federation (-15.5 ppts y-o-y), Israel (-4.7 ppts y-o-y), Greece (-4.5 ppts y-o-y), Italy (-3.7 ppts y-o-y), the United States (-3.6 ppts y-oy), Turkey (-1.8 ppts y-o-y), and Spain (-1.8 ppts y-o-y). Nevertheless, the European Union and Russia remain the top originators of financial inflows, accounting for 60.4% of total remittances.
INTERNATIONAL VISITS AND TOURISM Tourism arrivals and receipts are expected to decline sharply as a result of numerous travel bans, and due to precautionary behaviors. In addition, in April, the num-
ber of international visitors decreased by 93.8% y-o-y. While the decline in tourist numbers (visitors who spent 24 hours or more in Georgia) amounted to 92.3%. Consequently, the decreased monetary inflow and the dramatically reduced number of visitors and tourists made a significant negative contribution to the growth forecast.
THE EXCHANGE RATE In March, the Georgian lari sharply depreciated in monthly terms against all main trading currencies. While in the following month, transactions in the foreign exchange market declined substantially and the Georgian lari slightly appreciated against other currencies, except the Russian ruble. The Real Effective Exchange Rate (REER) depreciated by 2.6% and 1.1% relative to the previous months in March and April, respectively (this pattern was also seen in the Nominal Effective Exchange Rate). Overall, REER-related variables had only a small negative contribution to the real GDP growth projections.
WORLD PRICES The final variables to have a negative contribution on the growth figure are the Metals Price Index (PMETA), the Agricultural Raw Materials Index (PRAWM), and the Europe Brent Spot Price (COP) . Metal forms a significant share of Georgia’s exports, while food and oil are one of the main import items. Therefore, a global decrease in the price of metal will likely deteriorate the Georgian economy, whereas a decrease in the price of agricultural products is more likely to be beneficial. In March and April, metal prices, in annual terms, decreased by 15.3% and 19.7%, respectively, while raw agricultural material prices declined by 6.2% and 7.8%, respectively in annual terms. The Europe Brent
Expectations of a global recession could become reality if ‘businessas-usual’ does not resume within the next few months Spot Price FOB (dollars per barrel), decreased from 55.7 in February to 18.4 in April, and then increased slightly to 29.4 in May. Adding the PMETA, PRAWM, and the COP indicators to the model decreases the growth forecast in both quarters. Our forecasting model is based on the Leading Economic Indicator (LEI) methodology developed by the New Economic School, Moscow, Russia. We have constructed a dynamic model of the Georgian economy, which assumes that all economic variables, including GDP itself, are driven by a small number of factors that can be extracted from the data well before the GDP growth estimates are published. For each quarter, ISET-PI produces five consecutive monthly forecasts (or “vintages”), which increase in precision as time goes on. Our first forecast (the 1st vintage) is available around five months before the end of the quarter in question. The last forecast (the 5th vintage) is published in the first month of the next quarter.
BUSINESS
GEORGIA TODAY JUNE 12 - 18, 2020
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Visionary Investor from Iraq Building into the Future with Batumi View Marina in Georgia
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r. Ahmed Syan, a multipotential successful businessman, is now building into the future with the Batumi View marina on the Georgian coast of the Black Sea. Batumi View is a multifunctional complex 20 meters from the Black Sea, on the New Boulevard. The complex consists of a 5-star hotel and three residential buildings, a children's playground, outdoor pool, SPA, tennis court, gym, catering facilities, convenient parking system, and a constructed beach and marina. The complex presents an eclectic mix of architecture, ranging from charming 19th century classical edifices to ultramodern skyscrapers housing hotels. Batumi View is the jewel of the Black Sea, and choosing Georgia for such big investment comes after the recent development of the country's economic and tourism sectors. The undeniable beauty and hospitality of the Georgian people are also crucial factors for investors like Mr. Ahmed to move their attention to the country. “Georgia is one of the most ancient countries of the world, with a rich history. It’s a country with unique folklore, diverse nature, and deep-rooted traditions,” says Mr. Ahmed. The project is currently in its final stages of construction, in partnership with the Rekan Group, yet the Georgian government's new policy of banning
Iraqi citizens from visiting Georgia has made it impossible for the project’s supervisors and engineers to oversee the project. Supporting and keeping the doors of the country open is key to attracting investors, and to developing the economy and outlook of the country. In addition to Batumi View, Mr. Ahmed owns several crucial projects in Iraq that have contributed effectively to the country's development in the health, landscape, and tourism and entertainment sectors. The latest project is the Mall of Kirkuk in Kirkuk City, a modern shopping center located in the heart of the city on an area of 41,500 sq m and now the biggest gathering place and luxury shopping center for 1.4 million people, with a total of 100 shops, 9000sqm green area, and three parking lots with 1700 spots. Since 2009, the company has been working in the amusement and entertainment business in Iraq. Its Smileland company has seven indoor and outdoor amusement parks and centers in Erbil, Kirkuk, and Baghdad, while a new waterpark is currently under-construction in Kirkuk on a 16,000 sq m area- set to be the largest and most modern park in the region, able host around 25,000 people at the same time. Its Starway company, based in Sweden and operating in Iraq, is recognized as the leading amusement services supplier in a wide network of industry leaders in
the global market. The company recently obtained membership of the American Association of Amusement Suppliers, IAAPA. Mr. Ahmed is currently the Vice Chair of Hawkary Inc, a group of companies that are based in the Kurdistani region of Iraq. The group has been working in Iraq since 1991, creating a new language for business and community service in the health, construction, amusement, trade, and tourism sectors. In the health sector, Hawkary Pharma represents one of the top five fastest growing pharmaceutical distribution companies, occupying a significant share in the Iraqi market with 21 high-tech warehouses operating in 18 cities. In the recent years, the Hawkary Group founded the MED and MERA company in Switzerland specialized in medicine manufacturing. Moreover, The Mihrabani Surgical Hospital is Hawkary' s new project in the health sector, currently under construction in Erbil, for which Mr. Ahmed is one of the main shareholders. Following Hawkary's motto and mission of economic development and reducing unemployment, in 2008 they launched the TEAMMART supermarkets, the first chain of markets in Iraq. To date, TEAMMART has expanded to 76 branches, providing thousands the convenience of shopping for affordable prices and healthy products. Despite the economic situation and the instability
of the country, Mr. Ahmed has been able to take these challenges as opportunities, shatter the stereotypes, and bring about a different language for business
in the country, and now he is building into the future with Batumi View's multimillion marina on the beautiful coast of Georgia.
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BUSINESS
GEORGIA TODAY
JUNE 12 - 18, 2020
COVID-19 – Economies around the World Brace for Recession BY AMY JONES
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oronavirus has had a huge impact on social and economic norms around the world. This week, OECD, a Paris-based think tank, released their biannual Economic Outlook, outlining their economic predictions. The COVID-19 pandemic is the biggest global health crisis in living memory, which has triggered the most severe economic recession since the Great Depression of the 1930s. Millions of workers have already lost their jobs, with companies bracing for further closures and job losses. OECD based their economic predictions on two possible scenarios: a single wave of infections, and a second, which could trigger a return to lockdown. In the event of one wave, OECD expects global economic activity to fall by 6%. The UK could suffer a 11.5%, followed by France, Italy, and Spain. In total, the Euro area could see a loss of 9.1% compared to the same period last year. Strong European economies will also notice the effects, with Germany and Sweden’s economies predicted to shrink by 6.6% and 6.7% respectively. If countries are hit by a second wave of infections, then the economic outlook is even more bleak. In this case, Spain’s
economy is expected to shrink by 14.4%, followed closely by France, Italy, and the UK. The Euro area’s economy could fall by 11.5%. Economies should recover from the pandemic’s impact. However, they are not expected to return to the same level as the fourth quarter of 2019 for at least two years. Income growth is predicted to be lost for the next five years. The economic impact of the pandemic is already being felt around the world. Unemployment rose sharply in the first quarter of the year, and will continue to rise, according to OECD. Unemployment in Spain and the US is expected to reach 19% and 17.5% respectively in the second quarter of 2020, in the event of one wave of infection. A second infection could drive unemployment as high as 25% in Spain. Among those industries hardest hit by the pandemic are hospitality, tourism and aviation. Retail has also suffered. This week, Inditex, the owner of the Zara clothing brand, announced that it would close up to 1,200 stores over the next two years as it shifts to an online business model. The company recorded a net loss of €409 mln in the first quarter of 2020. To ensure economic recovery, OECD recommends governments invest in their healthcare systems and build their supply of medical equipment. Testing, tracking, tracing and isolating virus outbreaks is also essential. The development of a
Image source: John Angelillo/UPI
vaccine and treatments could also soften the economic blow. In addition, governments should aid businesses to transition into new eco-
nomic activities, accelerate digitalization, and facilitate rapid form restructuring, whilst also preparing for financial turmoil by building more resilient supply
chains, keeping interest rates low, ensuring spending and taxation policies support economic activity, and investing public finances in people’s well-being.
Georgia’s Possible Positioning in a New Global Production & Trade System, Part 2 OP-ED BY VICTOR KIPIANI, GEOCASE CHAIR
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ur country naturally enjoys numerous advantages when it comes to positioning itself in our newly rearranging world. Besides the technical aspects of doing business, it is essential to name a number of geopolitical, geographic and institutional factors. Geopolitically speaking, a prominent factor is Georgia’s foreign policy and its growing integration into European and Euro-Atlantic structures—an integration which, in addition to its economic significance, contributes to the stability and security of our state. Georgia has come a long and difficult way along this path, a clear result of which is the country’s firm contribution to the stability and security of the Black Sea region for the North Atlantic Alliance. Georgia’s waves of political, economic and social reforms, although they have obviously not yet realized their full potential, make our country stand out quite favorably against the background of our immediate and regional neighbors. In this respect, many of our competitors still need to embark upon this path if they are to become part of global economic value chains. And yet, at the same time, what I have just said does not mean that, in order to position ourselves successfully, we must always act unilaterally; this would be both unrealistic and not serious. Considering Georgia’s small scale in terms of consumers and resources, as well as the possibility of establishing a “Mini China” regional hub, it is vital to coordinate our efforts with other countries that are politically and economically comparable to us and whose understanding of the overall picture is similar. It
Hualing FIZ. Image source: bm.ge
would be ideal to draw up a set of transregional rules with regionally important economic actors or to harmonize national legislations in order to present a united economic front against competitor hubs (in Asia or Latin America, for example). We needn’t look too far for additional comparisons: even such projects as BakuTbilisi-Ceyhan and Baku-Tbilisi-Erzurum are clear proof of the potential benefits of coordination and understanding between different countries. It should be specifically mentioned here that, when discussing the universal rules of trade and the wide area of their usage, Georgia figures rather naturally under the roof of world trade. We are practically the only country in the region to have free trade agreements with China, Hong Kong, the European Union, the European Free Trade Association (EFTA), Turkey and the CIS countries, and we may expect
to sign more such preferential trade agreements in the nearest future. Also, regarding Asian hubs, a further advantage that Georgia derives from her immediate and regional geographical position is a proximity to the American and European “end users” of the production and recycling centers of this new architecture of global supply. Along with other factors, this geographic advantage further increases demand for the development of infrastructure, including ports—infrastructure which, alongside the growing human and productive potential of the Black Sea region, will also increase the significance of Georgia’s role. Obviously, the format of this article makes it difficult to cover every aspect of this question, but I will pick out one or two of them. When discussing the possibility of establishing a regional “Mini-China”, one of the obsta-
cles we face is our relative lack of a sufficiently numerous and qualified workforce; this must be compensated for if we aim to attract even a dozen mediumsized enterprises to Georgia. In this regard, I believe that one (admittedly arguable) possibility would be to modify Georgia’s immigration legislation in such a way as to enable us to employ additional workers under specific fixed-term conditions. Other countries successfully do precisely that, and I think that this option deserves at least proper consideration and discussion. I mentioned the possibility of welcoming a fixed-term workforce, and I would like to underline the fact that the local workforce’s lack of necessary qualifications and skills could and must be rapidly solved in a different manner. It is vitally necessary that the government set up targeted programs to train and prepare the local workforce, for without this it would be difficult to ensure Georgia’s competitiveness with other “Mini-Chinese” hubs. The question of precisely what kinds of businesses or companies need to be attracted in order to ensure Georgia’s economic development must also be considered. Given the rearrangements caused by the recent “perfect economic storm”, however, we will not have the luxury of being able to calmly make our choice, and in this regard attracting any “prey” would be a lucky catch. Proper planning will also be tactically vital if Georgia’s strategic development is to be systemic and not follow a zig-zag path. We therefore need to draw up a list of “essential” business activities that could be easily integrated with our current national structure and could also further the country’s strategic development. And speaking of tactics, one method would be to issue a so-called “investment passport” to every “essential” business activity or company. Such a “passport” or bespoken equivalent would set out
rules for the relationship between the government and essential businesses, key investors or companies wishing to establish themselves in Georgia, including potential tax exemptions and legal guarantees, etc. Individually documenting and itemizing every single meaningful investment or business would also communicate a useful political message abroad and increase Georgia’s attractiveness to investment. I also wish to remind readers that Georgian legislation already provides for an instrument similar to the above-mentioned approach: these are the commercial-legislative platforms known as “special economic zones”. Refining and improving the concept of these special economic zones might indeed serve as more flexible alternative to improve Georgia’s suitability to the modern demands of global supply chains, but this discussion would of course be beyond the scope of this article. In a word, current realities essentially open up new perspectives for us. Making good use of these will require proper planning and consequent execution. Along with all the thoughts I have shared through this peice of article, I believe Georgia would benefit greatly if the government would soon define a series of guidelines for such a plan. Most importantly, these guidelines should incorporate all the messages for the business sector concerning specific results and processes in a clear, business-like language. These guidelines should also make clear Georgia’s ambition to join various global or regional initiatives, and should set out potential fiscal measures and suggestions for supporting the “onshorization” of foreign businesses in Georgia. Also, foreign official and media communications should be activated, including consultations with business actors of interest to us. Our current times will only reward the intelligent and the daring.
SOCIETY
GEORGIA TODAY JUNE 12 - 18, 2020
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UNDP, UK to Provide Home Care Services to Elderly & Other High-risk Persons
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US Ambassador Kelly Degnan Visits Gori Branch of the Georgian Red Cross Society
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n June 11, Natia Loladze, the President of the Georgian Red Cross Society; Kelly Deganan, Ambassador of the United States to Georgia; and Olga Dzhumaeva, Head of the International Federation of Red Cross and Red Crescent Societies in the South Caucasus, visited the Gori Red Cross branch, met the volunteers of the Georgian Red Cross, and discussed the
activities of Gori branch in response to COVID-19. The Georgian Red Cross Society, with the financial support of USAID, has been able to help people in the high risk group during the COVID-19 pandemic. Natia Loladze, together with the Ambassador of the United States, and Olga Dzhumaeva, personally handed over food and hygiene parcels to beneficiaries living in Gori.
s Georgia relaxes its COVID19 lockdown, sustaining assistance to vulnerable persons is key to preventing any renewed outbreak of the virus. As part of the wider COVID-19 response, the United Nations Development Programme (UNDP) and the UK Government are launching a new initiative to provide home care support and other services to 4,000 vulnerable people at high risk of contracting COVID-19 in Tbilisi and the regions – older people living on their own, persons with chronic diseases and special needs, and people who need some additional support in self-isolation. With over USD 60,000 in the UK funding, the initiative will be implemented by the Georgia Red Cross Society (GRCS) in close partnership with the Tbilisi City Hall and 29 municipalities across Georgia. “I have been deeply impressed by Georgia’s response to the COVID-19 pandemic,” said British Ambassador to Georgia Justin McKenzie Smith. “One thing we have learned is that the virus is indiscriminate in who it affects. However, some are particularly vulnerable. The UK is proud to help Georgia’s municipal authorities and the Georgia Red Cross Society to provide professional home care services to those most in need. These services can make a huge difference to people’s lives.” “Georgia stands out in having protected its elderly and frail population from the ravages of the pandemic,“ said UNDP Head Louisa Vinton. “But particular vigilance is needed now as the economy reopens and social life resumes. With this
new initiative, we are assisting those who are most at risk and, at the same time, promoting the idea that care services should be provided to all in need even after the pandemic passes.” Georgia introduced the Universal Healthcare Programme in 2013, aiming to provide accessible healthcare services to all citizens. However, the programme leaves long-term home care services for older people and persons with special needs mostly to non-governmental organizations (NGOs). According to the data of the Social Service Agency, currently up to 772,300 pensioners are registered in the country, based on the information from the NGOs most of them need professional home care; however, NGOs can only cover about 15 percent of this demand. Tbilisi is the only city in Georgia where home care is partly covered by municipal service providers, but even there, only 1,200 out of 20,000 people in need of professional home care are eligible to receive this service from the municipality. The UNDP and UK initiative will provide professional and community-based home care services to 4,000 beneficiaries in Tbilisi and 29 municipalities across the country. In addition, GRCS will launch an online learning platform for home care staff, volunteers and informal caregivers, to equip them with the knowledge and skills needed to deliver professional and community-based home care. The assistance to home care services is part of a wider programme to support the ongoing Public Administration Reform in Georgia that is implemented by UNDP with funds from the UK Government.
"Today, we are visiting the Gori branch of the Georgian Red Cross Society, where we got acquainted with the work and activities of the branch. The Red Cross Society has already distributed more than 70,000 parcels throughout Georgia. In response to COVID-19, USAID's support is very important, through which we have been able to distribute food and hygiene parcels in the country,” Loladze said.
Georgian Gov't, UNFPA, The Body Shop to Work to Prevent Early/Child Marriage
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ithin the framework of an agreement reached between the United Nations Population Fund, Georgia Country Office and the Company Body Shop, in cooperation with the Administration of the Government of Georgia, The Body Shop will engage in efforts to end early/child marriage. The Company will allocate special scholarships for adolescent girls who were or are facing the risk of early marriage. A meeting was held among the stakeholders on June 8 with the participation of Lela Akiashvili – The Prime Minister's Advisor on Human Rights and Gender Equality, Lela Bakradze – Head of the UNFPA Georgia Country Office, Irina Adeishvili – Head of Marketing at The Body Shop Georgia and Keti Kozmanashvili – General Manager of The Body Shop Georgia. “We are glad that the organization The Body Shop is joining the initiative to protect the women’s rights in Georgia within the frameworks of responsible business and corporate social responsibility,” said Lela Akiashvili. "In cooperation with UNFPA and The Body Shop, we have joined our efforts to combat domestic violence amid the COVID-19 crisis. But now we are launching a new initiative aimed at preventing child marriage through women’s economic empowerment. For years, together with legislative amendments, the state has been
carrying out regular activities for the prevention of early/child marriage and strengthened the mechanisms to respond to it. However, until there is even one child facing the risk of child marriage, we should continue our work. I hope we will implement many other important initiatives in cooperation with UNFPA and The Body Shop.”
“UNFPA Georgia Country Office is actively cooperating with The Body Shop, a company that openly supports the gender equality and the empowerment of girls and women,” said Lela Bakradze. "For many years, it has been our priority to advocate for the prevention and elimination of child/early and forced marriage; we think it is important
to unite our partners and mobilize our resources as much as possible to address this issue, so that every adolescent girl has an opportunity to realize her potential, and the society does not lose them as valuable human resources.” “For us, as a brand that has always been advocating for women’s rights, this is a very important initiative and we are
happy to take specific steps for the prevention of early marriage together with our partners,” said Irina Adeishvili, Head of Marketing at The Body Shop Georgia. The harmful practice of early/child marriage remains a significant challenge in Georgia, which is a gendered phenomenon: 13.9% of women aged 20-24 got married before the age of 18, whereas this rate is 0.5 among men. Early/child marriage heavily affects the lives of both girls and boys, but it has an especially harmful impact on girls, who happen to have limited opportunities to enjoy their rights and fully develop their potential. The fight against this complex problem can bring about results only if a multisectoral approach is employed, through changing social norms, and developing and empowering adolescents. The initiative to be implemented within the framework of the partnership between UNFPA Georgia Country Office and The Body Shop, in cooperation with the Government of Georgia, aims at promoting the economic empowerment of adolescent girls and making it clear to the public that the full realization of girls’ potential, creation of equal conditions and an equitable environment for them, access to education and healthcare, are crucial for the prosperity and development of every country; that every girl should be given an opportunity to complete her education and to make informed decisions about her own life and health.
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SOCIETY
GEORGIA TODAY
JUNE 12 - 18, 2020
Blog: Colored Thoughts on Georgia BLOG BY M ZHOU*
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e had only been in Tbilisi for an hour, but the neighbors had already called the police. We are an interracial couple: me, Asian; him, African. We had flown into Georgia in early March, the State of Emergency yet to be declared. But as we checked into the Airbnb apartment not far from the Rooms Hotel, we discovered the downside of living in an Italian yard. As soon as we entered, a boisterous discussion started from window to window. Then the police turned up. We were not welcome, it seemed. We were dangerous. Diseased. How they arrived at this conclusion, I can only guess. No-one spoke with us. We were rejected on sight. We left that apartment without unpacking. A few days after the State of Emergency ended, five police surrounded us sitting on a park bench, demanding our passports. No one else in the park was stopped. Not 50 meters from where we were confronted, the N-word (albeit misspelt) was spray painted onto the side of a building in bright red. During a brief flirtation with real estate investment, we discovered an advert to sell an apartment, but not to Arabs, Iranians, Asians and “Zangi’’. Ironically, the apartment is on Tolstoy Street, a writer who was both profoundly influenced by China, and who supported anti-imperial movements in Asia. Migrants and locals alike in Tbilisi have counselled me that all this is ignorance and not conscious racism. So, indulge me this teachable moment.
First, if you are not black, it is not ok to use the N-word. You cannot use it to refer to a black person. Best not to sing it either. It has been described as the ‘most offensive word in the English language’. It carries with it a history of oppression and the dehumanization of black women and men. Even if Georgia does not share the same brutal racial history of the US, UK, or Europe, the word still carries with it the violence of colonization and slavery. Second, the Law on the Elimination of All Forms of Discrimination protects
equality of rights based on a long list of characteristics, including race, skin color, language, sex, citizenship, origin, place of birth or residence. Complaints can be brought to the Anti-Discrimination Mechanism. Violations of human equality and racial discrimination are both criminal offences under the Criminal Code of Georgia, even if they are currently rarely prosecuted. Of course, these glimpses of Georgia are not the whole story. A few days after the murder of George Floyd by police in the USA, a glorious portrait appeared
not far from Rustaveli Metro. Around the same time, someone tried to turn the Nazi swastikas painted on the walkway to Mtatsminda Park into something cuter. Racism is not just an issue of the hurt feelings of a few tourists. The Tolerance and Diversity Institute reported a drastic increase in violence, aggression, and xenophobia against migrants, “especially those from Asian and African countries” between 2015 and 2018. The report details a series of attacks on foreign nationals, almost always directed at people of color. It also documented instances of dis-
Aftermath: Kakheti
BLOG BY TONY HANMER
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ime seems to have flown by as we return to my inlaws’ base for my wife’s father’s ormotsi (40 days after death memorial feast). There have been some noticeable changes in the national situation vis-à-vis the Virus, and these stand out.
Our curfew is lifted, so we can leave as early as we like for the 600 km trek, which really helps. We also find ourselves unable to bypass Kutaisi this time, due to work on the trans-national highway: just as well, as this city and the other three formerly closed are now reopened. We crawl through with the rest of the frustrated traffic, given a mere 16 km of 110 km/h highway from Kutaisi to Zestaponi, the westerly start of the winding 60 km bottleneck pass between the
two halves of Georgia. Here, the highway expansion program is even more hugely in view than the last time some weeks ago that I reported on it, seemingly Georgia’s engineering project of the century. At least on the other side of this pass, the highway on to Tbilisi is open all the way, speeding us along as before. We do also have to divert into Tbilisi to pick up my father in law’s headstone, nicely computer-engraved with his image. I expect this to slow us down hugely, as
it’s nearing rush hour in the capital, but to my pleased surprise there’s not nearly as much traffic about as I feared. We cruise from Saburtalo into Vake, perform our errand and are comfortable enough not to need the fast river roads, following Chavchavadze (with some diversions) to Rustaveli and finally up onto the airport highway, then further east towards Kakheti. Time to see what’s new, what’s different since the last visit many months ago. There has been some heated phone discussion about how and where to hold the feast in the days before our departure. We wanted a restaurant, willing to pay for the freedom not to slave away in the whole neighborhood to make all the necessary dishes and assemble the seating, cutlery and crockery, then store the inevitable leftovers and wash up afterwards. No go: restaurants are limited now to 50 customers, spaced seating, and only outdoor dining. And those near our village aren’t yet able to provide these conditions yet. So we’re forced into the self-service option. My wife, no surprise, springs into action, because hardly anyone else could, organizing most of the event. Lists of invitees and dishes must be written up, then phone calls and ingredient lists. Shopping follows, and here at least I can be of some voluntary use, driving here and there. Neighbors are pressed into promises of various parts, and it begins to come together. Lots of sweat, though, and plenty of exhaustion in the growing 30-plus heat. We weren’t even sure if we could do it in one sitting, or if two would be needed; in the end, thankfully, one was enough. The food came, was dished up, tables assembled and set, wine and water poured, a toastmaster chosen, and the ritual began. All the dead, fanning out from the man himself to an ever larger group of his relatives, friends, the neigh-
crimination by commercial banks, and the high rates of rejection of residency permit applications from citizens of African and Asian countries. Georgia’s future, particularly during this vulnerable time of post-pandemic economic recovery, will depend, in part, on its ability to attract migrants who will invest not just their dollars, but their energy, ideas, passions, in this country. In terms of the ease of doing business, Georgia currently ranks the 7th in the world according to the World Bank. But its demographics remain a structural bottleneck to development. The population has been on the decline, and the trend is expected to continue. Outbound emigration has outstripped immigration every year since 1994. In 2019, more than 81,000 Georgians left and 54,000 returned. To keep the working age population of Georgia from declining further, Brookings Institute estimates that some 40,000 additional workers every year are needed. As we await the reopening of international borders in July, it is timely to reflect on the broader cultural context of ‘doing business’ here. But more than an economic argument, diversity has always been a part of Georgia. One of Tbilisi’s most striking features is its architecture, which exhibits the influences unique to the Silk Road. Shota Rustaveli’s The Knight in the Panther’s Skin (Vepkhistqaosani) is set in fictionalized Arabia, Persia, and India. Equality, fundamental human rights and freedoms are intrinsically Georgian, and contained in the Act of Restoration of State Independence of Georgia in 1991. The right to equality based on race and color is enshrined in the Constitution, and must be upheld. * M Zhou is an ethnic Chinese human rights lawyer currently in Tbilisi.
borhood, the dead from various wars and so on were toasted to. As usual, I bowed out after a suitably polite time, but was asked back to “do that thing with your Svan hat”, where I tip a glass of white wine into my inverted pressed wool cap and toast from it, in the style of my adopted home province. They loved me. Call my agent, I’m available for engagements large or small. Well taught, is all I can say. Next morning, I catch a shot of the disarray which follows a village feast. The vast remains have been gathered up and farmed back out to neighbors’ fridges for the night. Most of the benches and tables have lost their temporary rolls of paper coverings; one is lying forlornly on its side. Cigarette butts, food and non-food garbage litter the ground. Plastic bottles and empty wine jugs add to the “after” of the math. My niece surveys the carnage in silence. Time to clean up, and re-set some of the tables for today’s rounds, women first, then men. There’s plenty of yummy food to finish, and not enough space to store it all anyway, so we might as well! Gift packages are sent out along the street as well, especially to those who helped. It’s over, and we depart to see more friends in the province, before our return to Tbilisi where we’ll have a break and then… back up to Svaneti for that still-brewing 400 km ring walk. This looms ever larger in my mind now, but a diversion to Kakheti was inevitable. Back on track soon. 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
CULTURE
GEORGIA TODAY JUNE 12 - 18, 2020
11
About a Fascinating History of Russo-Georgian Relations REVIEW BY DIETER BODEN
T
he book “Georgia between Sovereignty and Russian Occupation. The Roots of the Russo-Georgian Conflict” by Philipp Ammon is a fascinating history of Russo-Georgian relations between 1801, the year of the annexation of Georgia by Tsarist Russia, until after the First World War. It is a subject that may have been of interest to historical scholars until the collapse of the Soviet Union. In the meantime, the Caucasus, as a regional source of tension in our immediate neighborhood, has received new topicality. In this respect, this book by Philipp Ammon is also a contribution to contemporary political history. Ammon deals with a crucial section in the relationships between the two peoples and neighbors, which differ fundamentally in their culture, their mentality, and their lifestyle. It is a story that is shaped by violence, betrayal and deception, but also by peaceful, often even harmonious coexistence: a prime example from the field of political relations between states, which can still teach us a lot today. This certainly applies in particular to our current relationship with Russia. Ammon describes the period of bilateral relations with a great deal of expertise in the 115-year period in which Georgia was part of the Russian Empire. The volume contains a wealth of notes, as well as detailed information on fur-
ther literature on the subject; the cumbersome transcription of the personal names into German is a little disruptive, which often affects reading. Ammon also briefly deals with the period from 1918 to 1921, in which Georgia first gained its independence, before it was annihilated by the invasion of the Red Army in February 1921, an event that went largely unnoticed by the rest of Europe, which was dealing with the consequences of the previous world war. The following period, in which Georgia was part of the Soviet Union as a federal state for over 70 years, is only touched upon by Ammon. He pays a lot of attention to the relationship between the two Orthodox Churches. The annexation by Russia in 1801 initially brought the usual fate of a conquered country to Georgia: plundering, forced assimilation, and suppression of revolts that flared up again and again. Ammon correctly notes that the Georgians considered the subordination of their Orthodox Church to that of the Moscow Patriarchate in 1811 as the worst humiliation. However, Ammon opposes those who want to see Russian rule solely as a history of suffering and ongoing oppression; taking a differentiated view. The balance is ambivalent: in the period up to 1914, Georgia experienced a period of peace without the devastation that it had suffered in the centuries before from an endless succession of invasions by foreign conquerors. The country gradually recovered under "friendly bayonets", as the poet Lermontov called it. It found a connection to the modern age through the construction of infrastructure;
through the beginning conversion of an archaic agricultural economy to an industrial exploitation of its resources; through the development of telecommunications, in which the German company Siemens played a decisive role. The connections to Europe, which had been interrupted for centuries, were now revived, and Russia played a decisive role in the mediation. It was Russian universities that trained the new Georgian elites. The Georgian students came back from there as "Westerners," having read Kant and Hegel, and soon also advocated national self-determination for their country. Even after 115 years of common statehood, the differences in culture, attitude towards life and mentality between the two countries remained. The fact that the Russian epoch is predominantly perceived today as a traumatic experience is a consequence of the subsequent 70 years under Soviet communist rule, which ended on April 9, 1989 with a particularly brutal act: the massacre by Soviet troops of Georgian civilians. It would be desirable to have this past history of Russian-Georgian relations supplemented by a chapter on the Soviet era and the present, since the new Georgian independence in 1991. In any case, Ammon’s book is a worthwhile impetus. Today, Russian-Georgian relations are determined by the conflict over the regions- self-named states -of Abkhazia and South Ossetia, which have fallen away from Georgia and have been supported by Russia. An amicable settlement of this conflict is not in sight. Bilateral relations between the two countries have
broken down since 2008. The effects of this conflict radiate to us in various ways in Western Europe. This also makes Ammon's book clear: without a normalization of Georgian-Russian relations, the region of the South Caucasus will not find stability. “Georgia between Sovereignty and Russian Occupation. The Roots of the Russo-Georgian Conflict” by Philipp Ammon, was published by Verlag Vittorio Klostermann.
https://www.klostermann.de/Philipp-AmmonGeorgien-zwischen-Eigenstaatlichkeit-undrussischer-Okkupation Dr. Dieter Boden, retired ambassador; studied Slavic studies and political sciences in Münster and Hamburg; joined the Federal Foreign Office in 1968. He held various posts, including the German Embassies in Moscow and Rome. He was appointed ambassador to the OSCE in Vienna, Special Envoy to the UN Secretary General in Georgia, Head of the OSCE Mission to Tbilisi.
“Corona Days” Artworks of Young Georgian Artists: Mariam Shakarashvili & Beka Sakvarelidze
BY NINI DAKHUNDARIDZE
C
ontinuing its collaboration with BI Auction, GEORGIA TODAY presents artists taking part in the online exhibition ‘Artworks @ Corona Days.’ This week, we spoke to artistic couple Mariam Shakarashvili and Beka Sakvarelidze. The young artists, through their works and words, share with us their different conception of the current and post-pandemic world.
Beka started out on his artistic path at the Tbilisi State Academy of art in 2010. There, he was given the opportunity to grow: to start experimenting rather than painting something just beautiful to look at; to explore and find himself in his works. “Since then, there have been a lot of interesting projects in and out of Georgia. I was blessed with the opportunity to see the art of international artists who have made a breakthrough in the conception of the art world,” Beka tells us. Mariam, in turn, tells us that painting
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has been her way of interacting with the world since she was a little girl. She started her professional art education at the Gori Ana Peradze School of Painting, continuing at the Tbilisi State Academy of Art. Much like her spouse, Mariam used her time at the Academy for self-exploration and development, meeting fellow artists and collaborating on interesting projects. The global pandemic has not really affected Beka’s creative work, though he feels that in general artists reflect on “the pulse of their society.” Rather, he says, it was the self-isolation that he started reflecting in his artworks. “Quiet and empty night streets, calmness, the person I love by my side, with whom I spent this isolated time,” Beka explains. He does believe though that the pandemic will leave a great mark on society even after it’s long gone. “I think the post-pandemic world won’t be as carefree and open as before. The determinant of this is partly the psychological stress of the world population. But it won’t all be negative: the global pandemic has had a positive impact on the human-nature relationship, and we’ve learned to not take things for granted.” Mariam found herself in an existential crisis during the pandemic. “I started to re-evaluate my priorities, the importance of people in my life that I love, and the
Journalists: Ana Dumbadze, Vazha Tavberidze, Nini Dakhundaridze, Tony Hanmer, Emil Avdaliani, Nugzar B. Ruhadze, Beka Alexishvili, Elene Dzebizashvili, Photographer: Aleksei Serov
able!” Mariam exclaims. In her works, the nostalgia for something real is evident. Mariam tells us that during the pandemic, she created a series of works: one very pessimistic at first, then one both sad and hopeful. It explains her journey into her inner self during the pandemic. Reflecting on the nature of art to show something not only the author but everyone else has gone through, I think it’s safe to say this has been our journey too.
importance of my own space. Despite having spent most of my time in the village in the presence of people I’m close to, it was a pretty stressful experience, especially when I was left alone to face myself.” In her efforts to approach the global pandemic positively, Mariam tried to engage in virtual socializing, but even that got her to thinking about the effects of the pandemic on the world. She tells us the vision of the post-corona virus world, for her, is very blurry. “We moved to remote social interaction to escape the depressing loneliness during self-isolation. Now, it occurs to me that involving oneself in the virtual world this much damages mental and general health, the mood of the person. I love everything real, everything touch-
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About BI Auction ‘for ART’: BI Auction is the first Art Auction Company of Georgia, established in 2016. The company’s aim is to promote Georgian art and artists and enlarge the market. In four years, BI Auction ‘for ART’ has organized seven auctions and presented more than 400 paintings from 120 Georgian painters. In every auction, the collection is selected from among a thousand paintings from the well-known legendary artists of Georgia and also from promising young artists. For more information, please contact biauction1@gmail.com
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