Issue #1306

Issue no: 1306

• JULY 23 - 29, 2021 • PUBLISHED WEEKLY

FOCUS

ON GEORGIAN LEGENDS

The first Lithuanian-Georgian Mint collaboration sees a Georgian-designed "Medea" on an international commemorative coin

PAGE 11

PRICE: GEL 2.50

In this week’s issue...

‘Georgian Dream’ Nominates Kakha Kaladze as Tbilisi Mayoral Candidate NEWS PAGE 2

Restoration Works Reveal Wall Painting in Atoneli Street Entrance NEWS PAGE 3

Russian Disinformation Tactics, A Primer POLITICS PAGE 4

USAID and Adjara Group Launch New Partnership BUSINESS PAGE 7

Inclusive Tourism Perspectives in Georgia and International Best Practice BUSINESS PAGE 8

Corona Updates: Cases on the Up again Worldwide, NCDC Head Says Georgia is in the ‘Red Zone’

BY TEAM GT

D

uring the last week, Georgia has seen an alarming increase in newly detected coronavirus cases, which led to both health officials and politicians suggesting a re-introduction of certain restrictions.

Amiran Gamkrelidze, Head of the National Center for Disease Control and Public Health (NCDC), said on Tuesday that Georgia has now entered the ‘Red Zone,’ as the numbers of newly detected cases of coronavirus are increasing daily.

He noted that the NCDC has recommended the Interagency Coordination Council reestablish the obligation to wear a face mask in open spaces once more.

Continued on page 2

Wine Production Sector in Georgia BUSINESS PAGE 9

UNICEF, EU, Support Gov’t in Developing Action Plan to Move Children from Institutions to a Family Environment SOCIETY PAGE 10 CULTURE PAGE 11 Prepared for Georgia Today Business by

Markets As of 19ͲJulͲ2021

w/w

m/m

GRAIL 07/22

106.71 (YTM 1.16%)

Ͳ

Ͳ0,5%

Bank of Georgia (BGEO LN)

GBP 13.84

Ͳ4,8%

+5,2%

GEBGG 07/23

BONDS

106.48 (YTM 2.67%)

Price

Ͳ0,2%

w/w

+0,1%

m/m

Georgia Capital (CGEO LN)

GBP 6.18

Ͳ4,9%

Ͳ2,7%

TBC Bank Group (TBCG LN)

GBP 11.48

Ͳ1,4%

+2,7%

GEOCAP 03/24

102.02 (YTM 5.29%)

+0,1%

+0,5%

SILNET 04/24

110.21 (YTM 6.79%)

+0,0%

+0,3%

TBC 06/24

108.24 (YTM 2.78%)

+0,0%

+0,2%

GGU 07/25

106.86 (YTM 5.82%)

+0,1%

+0,2%

STOCKS

CURRENCIES

Price

Price

w/w

m/m

GEL / USD

3,1040

Ͳ1,0%

Ͳ1,9%

GEL / EUR

3,6624

Ͳ1,5%

Ͳ2,5%

COMMODITIES

Price

w/w

m/m

GEL / GBP

4,2437

Ͳ2,5%

Ͳ2,9%

Crude Oil, Brent (US$/bbl)

68,62

Ͳ8,7%

Ͳ6,7%

GEL / CHF

3,3820

Ͳ1,4%

Ͳ1,5%

1 812,64

+0,4%

+2,7%

Price

w/w

m/m

Gold Spot (US$/OZ)

INDICES

GEL / RUB

0,0416

Ͳ1,2%

Ͳ4,1%

GEL / TRY

0,3617

Ͳ0,3%

Ͳ0,1%

GEL / AZN

1,8272

Ͳ0,9%

Ͳ1,9%

FTSE 100

6 844,39

Ͳ3,9%

Ͳ2,5%

GEL / AMD

0,0063

Ͳ

+1,6%

FTSE 250

21 940,88

Ͳ4,2%

Ͳ1,7%

GEL / UAH

0,1141

Ͳ0,6%

Ͳ1,7%

DAX

15 133,20

Ͳ4,2%

Ͳ2,0%

EUR / USD

0,8475

+0,5%

+0,5%

DOW JONES

33 962,04

Ͳ3,0%

+2,0%

GBP / USD

0,7312

+1,5%

+1,0%

NASDAQ

14 274,98

Ͳ3,1%

+1,7%

CHF / USD

0,9175

+0,3%

Ͳ0,4%

179,11

Ͳ4,6%

Ͳ4,8%

RUB / USD

74,6676

+0,3%

+2,5%

1 317,22

Ͳ0,7%

Ͳ3,2%

TRY / USD

8,5885

Ͳ0,6%

1,6994

+0,0%

Ͳ

493,8400

Ͳ0,5%

Ͳ4,0%

MSCI EM EE MSCI EM SP 500

4 258,49

Ͳ2,9%

+2,2%

AZN / USD

MSCI FM

2 476,13

Ͳ2,5%

Ͳ3,1%

AMD / USD

Ͳ1,7%

2

NEWS

GEORGIA TODAY

JULY 23 - 29, 2021

Georgia Ranks High in Doing Business, despite Lack of Confidence in Judicial Sector

BY ANA DUMBADZE

G

eorgia ranks high in the region as a good place to do business, reads the 2021 Investment Climate Statements report published by the US Department of State. However, the document also notes that there’s an increasing lack of confidence in the judicial sector’s ability to adjudicate commercial cases independently or in a timely, competent manner.

“Overall, business and investment conditions are sound. However, some companies have expressed an increasing lack of confidence in the judicial sector’s ability to adjudicate commercial cases independently or in a timely, competent manner, with some business dispute cases languishing in the court system for years. Other companies complain of

inefficient decision-making processes at the municipal level, shortcomings in the enforcement of intellectual property rights, lack of effective anti-trust policies, selective enforcement of economic laws, and difficulties resolving disputes over property rights.

“The Georgian government continues to work to address these issues and, despite these remaining challenges, Georgia ranks high in the region as a good place to do business,” reads the report.

The document notes that although the constitution and law provide for an independent judiciary, there remain indications of interference in judicial independence and impartiality.

“Judges are vulnerable to political pressure from within and outside of the judiciary.

“There were reports of lack of due process and respect for rule of law in a number of property rights cases.

“Disputes over property rights at times have undermined confidence in the impartiality of the Georgian judicial system and rule of law, and by extension, Georgia’s investment climate. The government identified judicial reform as one of its top priorities, and Parliament has passed a series of reforms aimed at strengthening judicial independence.

While reforms have improved the independence of the judiciary, politically sensitive cases are still vulnerable to political pressure. The High Council of Justice is currently dominated by a group of anti-reform judges. Civil society asserts this group applies pressure on judges in politically sensitive cases. The government recently adopted additional judicial reforms focused on improving judicial discipline rules and regulating the operations of the High School of Justice and High Council of Justice,” reads the report.

The document also notes that violent street protests are uncommon, but there were significant clashes in June 2019 when protesters attempted to enter Parliament. Hundreds were injured, including some who suffered severe eye injuries due to police use of rubber bullets.

“Generally,” it notes, “police have fulfilled their duty to maintain order even in cases of unannounced protests.”

The US Department of State released the 2021 Investment Climate Statements on July 21, which analyze the investment climates of more than 170 countries and economies that are current or potential markets for American companies. The reports provide up-to-date information gathered by economic officers in embassies and consulates worldwide, helping US companies make informed business decisions.

‘Georgian Dream’ Nominates Kakha Kaladze as Tbilisi Mayoral Candidate

Corona Updates: Cases on the Up again Worldwide, NCDC Head Says Georgia is in the ‘Red Zone’

Continued from page 1 “The population should know that if the situation worsens, then we will make recommendations for stricter restrictions,” Gamkrelidze said, adding that roughly 30-40% of the current coronavirus patients in Georgia have been found to have contracted the Indian strain (Delta), and the virus is spreading rapidly.

The NCDC also recommended the Interagency Coordination Council intensify immunization, as “the country has a variety of available vaccines, all having almost equal protection.”

A government decree came into force on July 19, based on which only fully vaccinated individuals will be allowed to attend trainings, conferences and seminars, following negative pre-PCR or antigen testing.

Further, camp-type gatherings are prohibited, regardless of their organizational form and venue; and sports tournaments and training sessions for teenagers under the age of 18 are allowed only on the basis of the pre-PCR testing of all participants.

By the decision of the Interagency Coordination Council, changes will be made in the part of the mandatory testing regulation and fully vaccinated persons will no longer be subject to mandatory testing.

In addition, the government decree continues to ban social events such as weddings, funerals, anniversaries, etc., both indoors and outdoors.

It was announced Wednesday that an infant who was infected with the Delta variant of coronavirus had died at the Tsitsishvili Clinic in Tbilisi. The critically infected child was transferred to Tbilisi from the territory of occupied Abkhazia. This is the second case of an infant’s death from coronavirus in Georgia. The first died last week.

THE STATISTICS

Source of photo: imedinews.ge

BY KETEVAN SKHIRTLADZE

T

he Georgian Dream party has nominated Kakha Kaladze as its Tbilisi mayoral candidate, seeing him running for Mayor of Tbilisi for a second time.

The nomination ceremony for the mayor of the capital was held in Mtatsminda Park.

“Many people know about my greatest

dream, I have talked about it many times,” Kaladze said. “As I left my mark in Georgian football, I also want to contribute to Georgian politics for the benefit of the country, our children, and their children. I will not stop for a moment: I will continue to strive for this goal through hard work,” he said.

Media representatives and activists held a protest rally near Mtatsminda Park in parallel with the nomination of the mayoral candidate, demanding the punishment of those involved in the June 5 violence.

“Violence and hatred kill our country and its future, and all the people who beat and abused you [journalists] on July 5 harm the development of the country and our future. This kind of act is shameful and should be punished,” Kaladze said.

He also pointed out that psychological violence is not less violence, and that humiliation, slander, and bullying often come from various television channels due to different political or other motivations.

The daily test-positivity rate in the country now stands at 7.19 %, while it was 4.77 % in the past 14 days.

Georgia reported 848 coronavirus cases, 1231 recoveries, and 15 deaths on Monday, with 18,194 tests conducted. Georgian capital Tbilisi recorded the highest number of 487 Covid-19 cases, followed by the Adjara region with 94 cases, and the Kakheti region with 64 cases.

On Tuesday, the country recorded 2616 coronavirus cases, 880 recoveries, and 26 deaths, as a result of 36,375 tests conducted in 24 hours. Tbilisi recorded 1557 Covid-19 cases, followed by the Adjara region with 205 cases, and the Imereti region with 191.

On Wednesday, the country recorded 2415 coronavirus cases, 943 recoveries, and 26 deaths, with 37,627 tests conducted.

Capital Tbilisi recorded the highest number of 1391 Covid-19 cases, followed by the Adjara region with 202 cases and the Kvemo Kartli region with 172 cases.

On Thursday, Georgia reported 2261 coronavirus cases, 1410 recoveries, and 18 deaths.

Georgia’s total case tally since February 2020 has reached 395,621, among them, 369,483 people recovered and 5636 died.

THE SITUATION ABROAD The epidemiological situation is severe in neighboring Russia, from where many tourists are entering Georgia during the summer. The total number of people

infected with coronavirus in Russia has already exceeded 6 million. Statistics published on the platform Worldometer show that Russia ranks 4th worldwide following the United States, India and Brazil in terms of high numbers of Covidinfected patients.

The same applies to Turkey, where there are currently 96,043 infected patients, and the country counts no less than 7000 COVID cases on a daily basis.

Further afield are countries that have been living under continuous lockdowns for months, which has been noted as being both stressful and dangerous for the mental health of the local populations.

Anger is growing in Australia as 13 million people, about half the population, endure fresh lockdowns to quash Covid outbreaks, the BBC reports. Reportedly, a third state went into lockdown on Tuesday, while stay-at-home orders are now in place in South Australia, Victoria and parts of New South Wales.

“Many people have expressed frustration at being back in highly policed lockdowns 18 months into the pandemic, while re-openings in the UK and the US have put pressure on the Australian government,” reported the BBC. The US may soon abolish travel restrictions with Europe. US President Joe Biden has raised European citizens’ hopes that the ban imposed on travel from Europe will soon be lifted.

Biden’s comments came during a news conference with German Chancellor Angela Merkel at the White House, when he was asked when the US travel ban might end, SchengenVisaInfo.com reports.

“We’re in the process of (considering) how soon we can lift the ban… and I will be able to answer that question within the next few days,” Biden pointed out.

The highly transmissible Delta variant of the coronavirus now accounts for 83% of all sequenced cases in the US, a top federal health official said on Tuesday, adding that Covid fatalities had risen by nearly 48% over the past week to an average of 239 a day.

With less than half of the US population fully vaccinated, infection rates in Oklahoma, Missouri, Arkansas, Alabama, Louisiana and Mississippi are among the highest, where vaccination rates are the lowest.

In England, almost all Covid restrictions were lifted Monday. Prime Minister Boris Johnson has said he wants Britons to “judge for themselves” whether to wear a face covering, dance at a nightclub or skip a big gathering.

“The shift comes even as caseloads rise rapidly: the UK is recording close to 50,000 daily cases, more than reported in Brazil, India, Indonesia or South Africa.

The government justifies its actions by pointing to hospitalization rates and deaths which are way below what they were in earlier waves of the pandemic,” reports the Wall Street Journal.

In France, a new Covid health pass has come into effect amid a rapid increase of new infections. From Wednesday, people need proof of vaccination, a negative test, or recent recovery from Covid to enter most museums and cinemas. Later, lawmakers will debate whether to extend its use in August for entry to cafes, restaurants and shopping malls. The move comes the day after Health Minister Olivier Véran announced 18,000 new infections in just 24 hours.

NEWS

GEORGIA TODAY JULY 23 - 29, 2021

3

Restoration Works Reveal Wall Painting in Atoneli Street Entrance

BY KETEVAN SKHIRTLADZE

D

uring the restoration work of a Tbilisi entrance hall, a hitherto unknown wall painting has been discovered, reports the Tbilisi

Development Fund.

Tbilisi Development Fund, within the framework of the project “New Tbilisi,” is carrying out restoration works on historical entrances located at 23, 29, and 31 Atoneli street.

During the restoration works of the entrance at 31 Atoneli street, a wall painting was discovered, which until now was

covered with a layer of paint.

The discovered wall painting is distinguished by the fact that there are typically no paintings on Georgian themes in Tbilisi entrances.

At this stage, cleaning works are underway, after which additional information about the new discovery will be released by art critics.

Source of photo: Tsira Elisashvili facebook page

150th Anniversary of Composer Zakaria Paliashvili Paliashvili based his work on the artistic generalization of Georgian folk music culture and its synthesis with the best traditions of world classical music. Opera is of special importance in the composer’s legacy. Paliashvili created 3 different types of Georgian opera: monumental opera – tragedy “Absalom and Eteri,” lyrical-dramatic “Daisi,” heroic-patriotic – “Latavra.”

The names of the first two have long gone beyond the borders of Georgia.

“Absalom and Eteri” was staged in Kharkov (1931), the Bolshoi Theater in Moscow (1939 and 1946), Leningrad (1972), Kiev (1972), Lodz (1972) and Saarbrücken (1974). “Daisi” was staged in Moscow (1937), Kiev (1938), Almaty (1943), Baku (1956), Saratov, Odessa, Novosibirsk, Yerevan, Gorky, Saarbrücken (1974), and Plisen (1975).

Generations of Georgian singers were brought up on Paliashvili’s operas. The Tbilisi Opera and Ballet Theater is named after him (since 1937), as well as streets in Tbilisi and Kutaisi, Paliashvili HouseMuseums have been opened in Tbilisi and Kutaisi; The Paliashvili Prize has been awarded since 1971.

TRANSLATED BY ANA DUMBADZE

O

n July 23, Tbilisi Opera and Ballet Theater will close its 169th theatrical season.

The last concert of this season is dedicated to the 150th anniversary of Zakaria Paliashvili, the founder of the Georgian National Composing School, the greatest Georgian classic, conductor, teacher and public figure.

Fragments from his operas “Absalom and Eteri,” “Daisi,” “Latavra” will be performed at the concert. Soloists of the Tbilisi Opera and Ballet Theater, choir, orchestra, Georgian National Ballet “Sukhishvilebi”, conductors: Zaza Azmaiparashvili, Revaz Takidze, Davit Mukeria, and Malkhaz Kobakhidze, will take part in the anniversary evening.

Zakaria Paliashvili’s work is one of the greatest achievements of Georgian national culture. He played a founding role in establishing the National School of Composing.

POLITICS

A Republic, If You Can Keep It OP-ED BY NUGZAR B. RUHADZE

I

wonder if it has ever occurred to average Georgian mind to consider how much Georgia might be worth in dollars in today’s marketplace if somebody wanted to put an actual commercial price on it. Would it be in millions? Billions? Trillions? Many would say that no country should be evaluated monetarily, as doing so is a form of geo-

political wickedness. Perhaps. Yet I am curious how much Georgia would be worth in terms of its material wealth - nothing to do with its spiritual and cultural values, but purely about the price of the land if an overly rich dude turned up to purchase it, including all its infrastructure, real estate and natural resources. No response? OK, I can understand the silence!

Let’s now give the next question not as much a commercial but a political flavor, to make it easier to offer an answer: What kind of a government do we have?

Alexander Fraser Tyler. Source: statenislandpolitics

One of the American founding fathers, Benjamin Franklin, would have reacted with “A republic, if you can keep it!” Yes, this is the famous Franklinian quizzical flash of a quick and sharp mind! And the answer fits, with utmost political precision, into our social reality as it looks, feels and sounds today. And the reality in this country is based on democracy, which carries absolute compatibility with the form of an organized state, called a republic. We are a democratically arranged republic with a strong pretension towards human rights and freedom, as well as liberal interaction between various segments of society. Isn’t this exciting! Look at how much we have achieved in just 30 years of time out of a socialist quagmire!

And behold, just at this euphoric moment of refreshed thought on democracy, I stumble over the following 1787 evaluation: “A democracy is always temporary in nature. It simply cannot exist as a permanent form of government; it will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse due to a loose fiscal policy, which is always followed by a dictatorship. The average age of the world's greatest civilizations from the beginning of history, has been about 200 years. During those 200 years, those nations always progressed through the following sequence: from bondage to spiritual faith, from spiritual faith to great courage, from courage to liberty, from liberty to abundance, from abundance to complacency, from complacency to apathy, from apathy to dependence, from dependence back into bondage”.

I almost swooned reading these historical words by Alexander Tyler, a Scottish writer and historian. He was writing,

The death of democracy? Illustration by Joan Wong

of course, not about our contemporary nations, but only about the fall of the Athenian Republic some 2000 years earlier. Yet the mindboggling content of this quote still shocked me.

In case this statement has some rational truth to it, then one more question might pop up: If the countdown has already started, how long do we have left as a liberal democracy in this republic of genuinely liberated people enjoying their human rights and freedoms? Good question, isn’t it? And again, I am not in any rapturous hopes that the answer will be given birth to in my lifetime.

How long do we have? What if it is already coming? Surely not this soon, but laughing it off would not be very

wise either. Any development has a chance in this hilariously fickle world.

Symptomatically, all characteristic components are in place. Just breathe in the leftovers of the soviet air and there you go: the nostalgic brotherhood between the peoples, free apartments in ugly tenements, universal but cheap employment, cultures that are national in form and socialist in content, state-owned properties, universal proprietorship on people, nothing personal, and anything dead or alive – all under governmental control.

So, if Alexander Tyler was a visionary with a sharp and reliable sense of the future, then the presumable coming to life of his out-of-the-box vision might well be worth scratching our poor heads over.

4

POLITICS

GEORGIA TODAY

JULY 23 - 29, 2021

Russian Disinformation Tactics, A Primer

Image by Kommersant/Getty Images

ANALYSIS BY MICHAEL GODWIN

F

or those that resist the painful addiction of defense and security studies, strategic foreign information warfare tactics are generally absent from their dinner table conversation topics. However, the presence of Russian information operations in Georgia is exceptionally evident and deserves greater attention. While the vast majority of these tactics go unnoticed by the general public, upon closer observation, it is clear there are subversive connections that are shaping ideals and popular opinion.

Understanding Information Operations (IO) is no longer something in which only intelligence and special operations forces are exclusively schooled. Something lacking from much of the public education and awareness campaigns is a basic understanding of what enemies of the state are capable of when they have the resources necessary to infiltrate various media and information outlets.

Russia has grown to master this, taking lessons from their Soviet predecessors and simply modernizing them with new technology. These tactics span a spectrum of different methods to shape the socio-political environment in a given country, such as Georgia.

IO encompasses a broad selection of topics that the Kremlin uses against its enemies and occupied territories. The primary part of this action is the interruption of military decision-making funnels, and the ability to support offensive military operations with popular support propaganda. This workflow is often known as the “OODA” loop, and is the cycle of observe, orient, decide, and act series of actions taken in military planning operations. Interruption of this flow can stall, and ultimately cause a longlasting atrophy of the targeted military command and control structure.

With this stall of command ability, the influence of the general public to oppose their nation's resistance to Russian military aggression only compliments this tactic. This includes the continual normalization of Russian military occupation and incursion. It takes such forms from children's cartoons and comedy, to more overt news coverage and political interactions. While these attempts at public influence are subtle, they are vast and measured only by the Western attempts to secure Georgia in their sphere of security and stability.

Russia’s IO capabilities were visible in the August War, but were especially more so in their invasion of Ukraine. This invasion, being conducted in a far subtler way than that in Georgia after seeing their forces cut down due to ineptitude, was evident. The infamous “Little Green Men'' that were marched into the occupied portions of the nation, as well as the subsequent media campaign, made Russia out to be a non-combatant despite being clearly engaged in combat with Ukrainian forces.

Manipulation of the data that is fed to the targeted populace primes the region for military intervention. So much of this is veiled by innocent attempts at luring the populace to be comfortable with interacting with the front organizations Russian intelligence use to engage their targets. From simple Facebook posts to direct email campaigns, some of these reach people at an individual level and attempt to ensnare them in an endless loop of stimulation. With this attained, they are able to more easily slide in their propaganda. Through “news” and advertisements, the targeted people can become docile and less apprehensive to their more aggressive influence.

Religion has been an avenue of this front, as proposing an “us or them” situation against European or American Catholicism or Protestantism compared to the “only true” Russo-Georgian Orthodox allegiance. This has recently proven to be a considerable point of contention,

and also a means with which to pry nations away from Western alleged “decadence” and “perversion.” Even the recent division between pro-church organizations and Pride supporters has opened an opportunity for Kremlin operatives to exploit separations in public allegiances.

This weaponization of information is a significant portion of the Kremlin's power projection. However, since their Soviet operational environment collapsed, they have been forced to expeditiously renovate their avenues of reach to vulnerable populations that they find ripe for the culling. So many of the residents of South Ossetia and Abkhazia, now almost a generation into their occupation, have been brought up believing that Russia is their savior. Despite the destruction of their infrastructure, healthcare, and social fabric, they have been convinced that it’s better than Tbilisi and Western influence.

The perversion of trust and allegiances lies at the heart of these tactics to split nations and reclaim the former soviet territory Putin so desires. This Janus approach of both overt and covert endeavors to remove suspicion of their operations has largely been successful. Conve n i e n t d ive rs i o n t a c t i c s a n d puppeteering have allowed the Russian government to control the narrative around their shadowy and illegal operations, not just in Georgia and Ukraine, but the world over.

Additionally, the normalization of this allows the continuation of these operations to maintain control of the populace.

Even the questioning of “Russian meddling” has become parallel to the pro-

verbial child's worry of a monster under the bed- something to be dismissed and labeled absurd to its face. However, the intervention of Russian intelligence and counterintelligence elements, not only in Georgia but also in the West as a whole, is a real horror to behold, only rivaled

by China.

Like the Chinese legendary Forbidden City’s exclusion, Russia has created a bubble of control, a haven of twisted information, and crafted their own truth, even on occasion labeling the internet itself as a CIA pet project. Despite the absurdity of such a claim, the Kremlin has invested significant resources into promulgating this and other lies. Entire departments within the myriad of government organizations related to intelligence, state security, and foreign relations have been cultivated to push propaganda.

While the former might of the Russian Empire or the Soviet Socialist Republic is a far cry from what the crippled Russian Federation is now, their asymmetric IO campaign remains a continual threat.

Georgia, among other nations, remains in the crosshairs of Putin’s scope. Brushing off his advances is exactly what he and his ilk are attempting to elicit from not only local national but also foreign officials. It’s not only national defense and intelligence groups that need to be informed of this threat, but also the general public.

Georgia consists of a wide variety of social groups, as any backpacker or keeneyed tourist will attest to. However, maintaining unity through not only strength of arms but also extensive counter-IO measures are imperative. IO

By 'intelligence' we mean every sort of information about the enemy and his country - the basis, in short, of our own plans and operations. - Carl von Clausewitz, Prussian general and military theorist, 17801831 has become the preferred method of warfare, as NATO warms up to Georgia, and Russia is not about to reduce its subversive offensive. Georgia, with support from its allies, needs to ensure that they are willing to counter with able and willing elements, dedicated to the preservation and security of the nation.

From the website of the President of Russia

President Biden Announces John R. Bass Nominee for Under Secretary of State

BY KETEVAN SKHIRTLADZE

P

Source of photo: foreignpolicy.com

resident of the United States, Joe Biden, has nominated John R. Bass as a candidate for Under Secretary of State (Management), reports the White House.

John R. Bass was Ambassador to Georgia in 2009-2012 and currently holds the post of Senior Advisor at the Department of State’s Foreign Service Institute. Bass has also served as Ambassador to the Islamic Republic of Afghanistan, and

Ambassador to the Republic of Turkey.

“Previously, Bass focused, among other things, on supporting US government efforts to mobilize allies and marshal resources to combat terrorism and instability in Iraq, Syria, and Southwest Asia,” reports the White House. “He served at seven US Missions overseas, including as Team Leader of the Provincial Reconstruction Team – Baghdad at the American Embassy in Baghdad, Iraq. In addition, he was the Executive Secretary of the State Department and held other senior leadership positions at the Department of State. Bass earned an A.B. Cum Laude from Syracuse University.”

IWG plc, Level 4, 2 Leonidze str. Tbilisi, Georgia | +995 32 290 039

6

POLITICS

GEORGIA TODAY

JULY 23 - 29, 2021

"Timing is Everything" - Teona Lavrelashvili on Georgia's EU Bid, the TRIO Format and the Importance of Strategic Thinking initiative and invention, and we need more strategic and innovative thinking in that respect.

Another problem, I believe very much rooted in the political discourse, is that we always seem to be laboring under the unshakable impression that EU membership is a rasion d´etre for our nation, something that will cure us of all our ills. We shouldn’t forget that while EU integration is a means to support a welfare state with human rights, rule of law, and democracy, these are not exclusively European values: they are universal values. At the end of the day, we shouldn’t be making reforms for the EU, we don't want to advance our economy to please the EU; we are doing it for ourselves, for our nation. Unless this is communicated clearly to society, all this is bound to end in more disappointment. We need to tell to our citizens the truth, and the truth is that by becoming a member of the EU, let's say by 2030, it doesn't automatically mean that we will be living with the same standards as EU member states are living. The EU is becoming more diverse in many aspects, and prospects of differentiated levels of integration within the EU are becoming more realistic.

Thus, Georgia should be prepared for multiple scenarios, and should show its creative approach on its EU integration path by using the possibility of enhanced cooperation together with its TRIO partners.

INTERVIEW BY VAZHA TAVBERIDZE

W

ith Belarus seemingly out of the equation until a change of power in Minsk, and Georgia’s two South Caucasus neighbors preferring a less hands-on integration and cooperation process with Brussels, it was perhaps a little surprising that Georgia, Moldova and Ukraine ended up forming a trilateral alliance, aptly dubbed the “Association Trio”. Their main objective is joint action and cooperation in all matters of European integration, an issue of strategic, and of perhaps almost existential, importance for all three nations, especially with Georgia preparing its bid for full EU membership in 2024.

Following their respective ministers signing a memorandum last month in Kyiv, this week saw the presidents of the three countries holding the inaugural trilateral meeting in Batumi. But whether the format ends up a potent tool in Georgia’s arsenal remains to be seen, says Teona Lavrelashvili, Project Manager of the European Party Monitor, KU Leuven, and a former policy officer at the European Commission, DG NEAR, with whom GISP discussed both Georgia’s EU membership bid and the prospects of the new TRIO format.

We began our interview by asking her for her take on Georgia’s announced 2024 bid for EU membership, noting that many Western commentators, including members of the European Parliament, had expressed skepticism about the potential success of such a bid.

“I think that this EU membership application has both pros and cons. Let’s start with the advantages, which are few and far between, sadly,” she tells us. “Applying for membership puts Georgia on the EU agenda, and revives interest in the issue of the country’s European perspective. The EU decision-makers will have to discuss it, and, actually, nobody can deny that Georgia has European perspective, because it is within the European continent, and it is eligible to apply for EU membership.

“However, timing is everything in politics, and I think the timing [of this

We shouldn’t be making reforms for the EU, we don't want to advance our economy to please the EU; we are doing it for ourselves, for our nation. Unless this is communicated clearly to society, this is bound to end in more disappointment

ON TO THE TRIO FORMAT. WHAT ARE THE PROS AND CONS OF THIS NEW PLATFORM? WHAT DO WE GET TO DO TOGETHER?

announcement] wasn’t good. First of all, nobody's naive enough not to realize that this decision doesn’t come without an internal politics layer attached to it, aiming to score points ahead of the elections. Secondly, to my knowledge, there was precious little consultation held on this matter between the Georgian side and its European partners: it basically came out of blue and caught Brussels unaware. The MEPs, as well as other stakeholders, did not really seem thrilled about the idea; they did not show their immediate support; they were even a bit confused. This could and should have been better prepared. The problem is not that we are overly ambitious – its fully within our rights to apply for membership; the problem is that we gauged neither the opinion of the member states nor the decision makers in Brussels, and there was no strategic approach to convince our partners to follow up on our requests.

“This is definitely a milestone moment for Georgia, and I think we could have been more strategic. If you look at the process of granting countries candidate or potential candidate status, first you realize it’s quite a bureaucratic processyou won’t get the desired status unless you have consensus in the European Council. And Georgians know full well that at this moment it’s almost impossible to get this consensus because of a number of factors, among them enlargement fatigue, apparent now in the prolonged EU integration of the Balkans, being one of the most prominent.

“There’s a new methodology for assessing potential candidates, and this new methodology focuses on the rule of law, on the increasing power of the member states to veto everything concerning the enlargement, and, knowing all this, Georgia applying for full membership and being granted its request in 3 years’ time is simply not realistic. We need to lower our expectations a notch. Sure, we all want Georgia to be a member of the EU, but we have to be clever and find ways to get closer, i.e. with enhanced coopera-

tion as well as institutional integration.

WOULD IT BE FAIR TO ARGUE THAT IT'S QUITE A RISKY MOVE? CAN IT BRING MORE HARM THAN GOOD? IT CAN GIVE THE SKEPTICS BOTH AT HOME AND ABROAD AN OPPORTUNITY TO POINT THE FINGER AND SAY – SEE, YOU’RE NOT WANTED. Well, although it contains some risks, I hope that further events will unfold in a way that Georgia could benefit more.

Our membership application now may put the EU in an uncomfortable situation to say yes or no on Georgia’s candidate or potential candidate status.

Instead, we could have used, hopefully we still can use, this TRIO format to come up with a joint request for membership or other institutional status.

Georgia could have said, “Listen, guys, now we have this TRIO format. We’re ambitious, but we are also realistic. We know that getting this candidate status is unrealistic, so what can we do? Can we actually ask for something different, like special status?” Something like that would actually give Georgia more room to maneuver. Looking at the history of EU-Georgia relations, it's always a topdown approach; it's always the EU who has to come and give us a nudge or some new ideas. We’re showing precious little

I overwhelmingly welcome this initiative, after all, I have personally advocated for this idea since 2018 from the thinktank platform. Yet, before the Batumi Conference, little was known about the concept behind it, a fact which also made some EU institutions and particularly the European External Action Service quite skeptical. But Despite the EU’s fears of differentiation, it is becoming natural that TRIO emerges as more homogenous states with common strategic foreign interests.

Furthermore, with Michel’s green light, it’s clear that the TRIO initiative has overcome the skepticism and laid a foundation for a more legitimate platform.

In the TRIO declaration, we now see (at least) part of the concept behind TRIO initiative. Yet, the “how” question is not clear, particularly the mechanism of its implementation and institutionalization.

Perhaps the key is having sustained efforts and creativity from all sides involved, and, of course, strategical communication with not only Brussels but also the EU member states.

It is obvious that we need to increase our strategic communication efforts with Brussels and with the EU member states.

One of the idea could be creating a TRIO policy advisory group. The countries of the Western Balkans also use this type of advisory policy group between themselves to coordinate their efforts on an opinionmaking basis. I think that something could be also done in the case of Georgia,

In the history of EU-Georgia relations, it's always the EU who has to come give us new ideas. We’re showing precious little initiative and invention: we need more strategic and innovative thinking Ukraine, and Moldova, seeing policy experts and academia unifying their efforts in terms of giving conceptual analysis and providing strategic depth.

The undisputed advantage of the TRIO format is that, without excluding bilateral cooperation with the EU, the success of each separate country out of the three will have a positive impact on the remaining two. So, if out of the three students, one is exceptionally good and the other two are not performing well, we, as a team, will still win.

In international politics, numbers do matter, though. You might be the success story, but you are still one country. But then, if you are forming a block like Georgia, Moldova and Ukraine, and you are asking the EU for something, you will have more leverage and more negotiating power.

WOULD IT BE WISHFUL THINKING TO HOPE THAT THE TRIO, IF IT PROVES EFFICIENT, COULD ENHANCE GEORGIA’S RESILIENCE AGAINST MOSCOW AND ITS CONSTANT STREAM OF MALIGN INFLUENCE? We should have both feet firmly on the ground, so to speak - the Russian factor is there, and unpleasant and destructive as it is, unfortunately it’s there to stay, and we should expect that Russia will continue to use all leverage at its disposal, including, of course, its soft power to distort our EU path. We all remember how hostile Russia was towards the Eastern Partnership, and this TRIO format will be seen by Russia as another attempt to undermine the Russian influence on Georgia, Ukraine and Moldova. I believe and I hope that our resilience towards Russian malign influence will strengthen by strategically using the TRIO format, and that we will be able to design some joint actions and approaches to restrict Russia’s interference in our domestic politics. Yet, in order to strengthen our resilience, it is essential that the three countries embark on continuous a reform agenda on the one hand, and that the political actors from government and opposition increase political responsibility and constructive behavior on the other. There is no time to be lost in superficial political struggles: instead, narrow party interest should be put aside in order to focus on a real goal – that is building a successful nation state.

BUSINESS

GEORGIA TODAY JULY 23 - 29, 2021

7

Georgia Now Has Fully Equipped Chemical Risk-Factor Research Lab to Study Exposure Sources of Toxic Metals

BY TEAM GT

U

NICEF, with the support of the Clarios Foundation, has provided the National Center of Disease Control and Public Health (NCDC) of Georgia with advanced laboratory equipment to detect sources of toxic metals, and has completed the building of lab capacity in the country for the precise analysis of lead and other elements in various specimens (e.g. blood, biological fluids, paint, etc.). Georgia will now have a cutting-edge laboratory that will also allow for advanced research related to environmental health issues.

The building of laboratory capacity is part of the Georgian government’s response plan to prevent lead exposure and to protect children from the related toxic effects. UNICEF supports the government in addressing elevated lead levels in children through diagnosing the problem by measuring lead levels, investigating the sources and pathways of lead contamination, and designing a national response plan to reduce or eliminate lead exposure. This final step included building laboratory capacity for Georgia.

The partnership between UNICEF and the Clarios Foundation, which also involves Pure Earth, is part of the publicprivate global initiative Protecting Every Child’s Potential, which aims to prevent

children’s exposure to lead with proven solutions.

“Toxic metals can cause irreparable harm to the brain. It is particularly dangerous for young children, leading to lifelong neurological, cognitive, and physical impairment,” said Dr. Ghassan Khalil, UNICEF Representative in Georgia. “UNICEF has been closely working with the government to address elevated lead levels in children’s blood by building laboratory capacity and making it possible to test toxic metals in blood, and other specimens, locally. With support from the Clarios Foundation, the laboratory capacity has been increased to its maximum.”

The equipment delivered throughout the last year includes a Triple Quadrupole Inductively Coupled Plasma Mass Spectrometer (ICP MS), a Gas Chromatograph (GC), and a Liquid Chromatograph (LC). Also, with the support of different donors including USAID and the Estonian Government, UNICEF delivered to the NCDC an Atomic Absorption Spectrometer, used for determining concentrations of different chemical elements in various specimens, as well as four XRF analyzers, which are special portable handheld devices that can test for toxic metal content in different types of specimens. The equipment is unique to the entire region and will significantly improve the environmental health laboratory capacities in the country.

Presently, intensive re-training of employees, development and implemen-

tation of laboratory research methods and standards is in progress in the chemical risk factors research laboratory. The next stage envisions identification of heavy methods including lead in human blood specimens using the Inductively Coupled Plasma Mass Spectrometer (ICP MS), which is the “golden standard”

recognized by WHO, while work with XRF analyzers is already in progress.

Lab personnel have been recruited, and they will be trained in the operation and maintenance of the procured lab equipment before the end of 2021. Trainings will be conducted by internationally recognized experts and instructors in

the field. The trainings will be followed by the inclusion of the environmental health laboratory of the NCDC into the United States Centers for Disease Control Lead and Multi-Element Proficiency (LAMP) program, providing continuous quality assurance of NCDC lab performance free of charge.

USAID and Adjara Group Launch New Partnership

USAID/Georgia Mission Director Peter Wiebler and the directors of Adjara Group signed an MoU affirming their commitment to jointly advancing sustainable and inclusive economic development

BY TEAM GT

U

SAID/Georgia Mission Director Peter Wiebler and the directors of Adjara Group signed a Memorandum of Understanding (MOU) affirming their commitment to jointly advancing sustainable and inclusive economic development. Under the

MOU, USAID will partner with Adjara Group to strengthen the competitiveness of key sectors in Georgia’s economy, including hospitality, creative industries, and agriculture.

The MOU reflects USAID’s strategy to expand and deepen engagement with the private sector to advance sustainable development in Georgia. Namely, this includes supporting Georgia to strengthen its resilience against malign influence, build citizen-responsive institutions, and

achieve inclusive economic growth.

USAID looks forward to partnering with Adjara Group to develop workforce skills in key sectors, generate inclusive employment, support local business development, source local produce, and co-invest in sustainable tourism in Abastumani and the wider Samtskhe-Javakheti region.

“This initiative with Adjara Group will help USAID strengthen our ability to support inclusive economic growth in Georgia’s communities,” said Wiebler.

“The company has proven its commitment to investing in its employees and in the communities where it operates.

Together, we will create and co-finance initiatives that create high-value jobs and strengthen resilience in Georgia’s regions. This is a core priority for USAID as we support broad-based, inclusive economic growth that benefits people all across the country.”

“Creating an enabling environment for Georgia’s increased employability and

economic growth has always been one of our ultimate priorities,” the Board of Directors of Adjara Group announced.

“Inclusivity, a shared value approach, regional development, and empowerment of local communities are fundamental to all of our main directions.

Today, we are glad to deepen our strategic partnership with USAID and advance the Holding’s capacity for further contributing to the development of Georgia’s tourism, agricultural and creative industries.”

About USAID in Georgia: As the leading development agency of the U.S. Government, USAID supports Georgia to build the capacity to plan, finance, and implement its own solutions to development challenges. USAID has worked in Georgia since 1992, supporting the country’s transformation into a democracy that is increasingly integrated into Western political, security, and economic institutions. More than 35 USAID programs strengthen Georgia's resilience to malign influence, consolidatedemocraticgainsthroughenhanced citizen responsive governance, and enable high-value employment through increased economic growth.

About Adjara Group: Adjara Group is a leading Georgian holding, which operates as a decentralized corporate structure uniting three directions – hospitality, development, and agriculture. It has gained worldwide recognition for creating and managing award winning hotels, multifunctional spaces, and restaurants and bars. Moreover, one of the biggest agricultural and farming companies in Kakheti, Georgia, is also being operated as part of the holding and plays a key role in developing the industry. With an aim of contributing to the development of Georgian economy and setting new standards in hospitality, agriculture, and context-driven development, the holding creates innovative, inclusive, and environmentally sustainable projects for locals, as well as international travelers.

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BUSINESS

GEORGIA TODAY

JULY 23 - 29, 2021

Inclusive Tourism Perspectives in Georgia and International Best Practice

BY ANA DUMBADZE

I

nclusive Tourism, universal design, access to physical environment and tourism services are one of the most important factors contributing to the socio-economic development and sustainability of the country. Inclusive Tourism provides equal opportunities for people with disabilities, including the elderly (including large families) and tourists traveling with young children, to travel freely and safely and to enjoy tourism services. Accessible Tourism Center Parsa - ATCP’s mission is to promote, advocate, introduce and develop Inclusive Tourism in Georgia.

ATCP is a member of the European Network for Accessible Tourism -ENAT and a contact organization in Georgia - says Tamar Makharashvili, Accessible Tourism Center Parsa - ATCP Founder, Director.

Inclusive Tourism is one of the steadily growing segments of the world tourism industry and based on international experience by introducing universal design, accessible infrastructure and relevant services, the tourism potential of the country increases approximately by 15-17%.

According to the report of the European Commission "Economic Impact And Travel Patterns Of Accessible Tourism In Europe" the number of domestic transfers within the EU due to disability or age in need of universal design and accessibility reached 783 million. The contribution of Inclusive Tourism users to the European economy is equivalent to 394 billion Euros and 8.7 million jobs France, Germany, Italy and the United Kingdom are the main European sources of the EU inclusive tourism market.

The World Tourism Organization (UNWTO), together with the European Network for Accessible Tourism (ENAT) and international organizations, devel-

oped important resources in the field of inclusive tourism, as well as extensive recommendations on the safety and services of persons with disabilities during the COVID-19 pandemic. Recommendations include information provision, accommodation, tourist destinations, services, and transportation.

“It is important to note the progress that has been initiated in recent years: Georgian national accessibility standards and regulations, the Georgian Law on the Rights of Persons with Disabilities, and the new Tourism Law, which covers inclusive tourism and is currently being reviewed/approved by the Government”says George Gabidauri, International Institute of Universal Design Research and Education-IIUDRE Expert Architect.

In the UK, the government has actively supported inclusive tourism for several decades. The national tourist boards of England Scotland and Wales each recognize the social and economic values of tourism being inclusive, which makes sense for the opportunities it offers. In the UK, firms are said to lose about £2 billion a month by ignoring the needs of disabled people, according to disability specialist organization ‘Purple.’ There are estimated to be about 13.3 million disabled people in the UK and the ‘purple pound’ – the amount of money spent by disabled people – is estimated to be £249 billion a year.

“I have been involved in inclusive tourism for almost 25 years,” says Chris Veitch, a British Inclusive Tourism Expert and Founder-Director of 'Access New Business’. “As a member of the European Network for Accessible Tourism (ENAT), I have been lucky to work in many different countries, including Georgia. During this time, I have seen numerous examples of the benefits of inclusive tourism, of which there are many. Like anything else, the work is never really finished: there is always something new to consider, especially with the opportunities that new technology can offer to help

improve accessibility and the quality of the visitor experience.

“In 2017, I had the privilege of being appointed by the Minister for Disabled people to be the Disability Champion for the Tourism Sector, a role I undertook for three years,” Chris tell us. “I was one of a number of Champions across a range of business sectors selected to help promote the benefits of being inclusive to disabled people.”

It is reported that some (14%) of hotel operators notice an increase in turnover after improving their accessibility provision. Sometimes this is repeat business, and sometimes word-of-mouth or online reviews encourage others with accessibility needs to stay.

“A case study of the White Horse Hotel in Dorking (UK) highlights how accessible rooms really pay off,” Veitch notes.

“When renovating this historic coaching inn, attention was paid to the design of the accessible bedrooms to ensure they would appeal to all. Subsequent room bookings have shown this investment to be very worthwhile: over a 12-month period, the accessible rooms had an occupancy of 74%, with an APR of £94 ($128).

This contrasted with the standard rooms of 42.5 % occupancy and £84 ($114) APR. The result is that accessible rooms were delivering an additional £6,900 ($9404) additional revenue per room, against the standard rooms.

“What we also learn from this is that accessible rooms do not have to look or feel as though the guest is staying in a clinic or hospital,” Veitch says.

Motionspot, an award-winning business involved in designing the rooms at the White Horse Hotel, create enabling environments that work for all, without compromising on building design. They combine style with functionality to create beautiful accessible spaces that are easy to navigate, with products and designs that are intuitive to use.

Hotel Brooklyn, which opened in Manchester, had been open for only 10 weeks when it was named one of the ‘hottest’ in the world. Bespoke Hotels, the parent company of this and the White Horse Hotel, aims to set the gold standard for accessibility. Eighteen of the bedrooms are fully adapted for guests with disabilities, with stylish, spacious layouts and bathrooms overseen again by Motionspot.

“The reality is however, that whilst these benefits are significant, in terms of the potential profitability of responding to an underserved market (we need to recognise major market failure here), there are many other benefits to be gained, as Inclusive Tourism offers destinations and businesses new opportunities. Among other things, it can contribute to business growth, an improved quality of experience for all visitors and increasing competitiveness,” Veitch notes.

“Thinking more about inclusion/accessibility, and not just about compliance and legal obligations placed on businesses not to discriminate, can really help place the customer at the heart of a business.

Many businesses will feel they do this already, but if access requirements are not taken into consideration, it is likely that many customers are not receiving the amazing customer experiences we want them to enjoy. Tourism is all about emotions: offering and delivering those amazing ‘wow’ experiences and moments for visitors, which become treasured memories. This makes it more likely that they will become repeat customers and recommend you to others, which is, as they say, probably your best form of marketing.”

The key for success in this large and growing market, and to being competitive, is to see the customer, not the disability. A warm welcome, backed up by improved accessibility and relevant information, can help businesses, and the destination as a whole, to deliver amazing customer service to everybody and to demonstrate how much you value

your customers and clearly understand their needs.

“Inclusive Tourism is relevant for us all, and we should not ignore this fact,” Bennett notes. “It is not just the obvious groups of disabled and older people, a significant market globally with the growing ageing population, who have access requirements; we also need to remember that not all disabilities are visible – some are hidden and not immediately obvious, such as learning difficulties, mental health, as well as mobility, speech, visual or hearing impairments. Those with hidden requirements are in fact in a majority.

For them, living with a hidden disability can make daily life more demanding, but it can be difficult for others to identify, acknowledge or understand the challenges they face.”

One solution to this in the UK is the Hidden Disabilities Sunflower which was designed and launched when London Gatwick Airport asked "How can we identify that one of our passengers may have a non-obvious disability?". A simple sunflower design on a green background for a lanyard was created - a subtle but visible sign to enable airport staff to identify that the wearer (or someone with them) may require some extra help, time, or assistance when moving through the airport.

“We also need to acknowledge that many people with access requirements may travel independently, many will travel in groups, with family and friends, for leisure or as part of their business, attending meetings and conferences,” Bennett says.

“Understanding and responding to their access requirements, which can range from hearing, visual or cognitive, to dietary, means business can be won, while ignoring them means business can be lost to the competition.”

The COVID-19 pandemic has had a massive impact on the tourism sector globally.

In June this year, the UK’s Department for Digital Culture Media and Sport published ‘The Tourism Recovery Plan’. This sets

out the role that the UK government will play in assisting and accelerating the tourism sector’s recovery from COVID-19. It also sets out a framework for how the government will work with the sector to build back better. It recognizes that tourism has a significant role to play in delivering the government’s economic growth agenda and other goals. It acknowledges the help that is needed to support the sector to recover swiftly from COVID-19, and to build back better from the pandemic with a greener, more accessible, more resilient, more productive and more innovative tourism industry.

“Prior to the pandemic, the Tourism Sector Deal, agreed by the UK Government, set out an ambition for the UK to become the most accessible tourism destination in Europe by 2025. They remain committed to this target, recognizing that an inclusive and accessible tourism offer that meets customer needs is good for both businesses and consumers,” Bennett notes.

“We should not lose sight of another important aspect of inclusive tourism: how it can contribute to the sustainable growth of the sector by benefitting local communities. The more inclusive we make the value chain of transport, attractions, cafes, bars, restaurants, the more local people with access requirements can enjoy them as well.

“As age brings with it limitations, this agenda is beginning to become even more personal, and I am starting to rely on tourism being more inclusive (the reality is that I always have relied on this), so that I can continue to travel,” Bennett tells us. “I have been extremely fortunate to be able to visit Georgia. I have been struck by the warmth of the welcome I have always received, the richness of the culture, the buzz of the cities and the beauty of the natural assets. With inclusive tourism development, I can be assured of enjoying more visits in the future, to once again meet with good friends and enjoy Georgian hospitality at its best.”

BUSINESS

GEORGIA TODAY JULY 23 - 29, 2021

9

Wine Production Sector in Georgia

T

he wine industry in Georgia has experienced strong growth over the past decade in all key indicators such as exports, turnover, and employment and salaries (measured both in GEL and in USD). The financials of the sector have also looked impressive during this time.

MACROECONOMIC INDICATORS Georgian wine exports have been somewhat resilient to the COVID-19 pandemic, as in 2020 Georgia exported 91.7 mln bottles of wine, which is 98.1% of the

exports in 2016-2020. This makes the sector susceptible to shocks from related to political factors/changes, such as the embargo imposed by Russia on Georgian wine during 2006-2013.

Other key markets for Georgian wine include Ukraine (average share over 2016-2020 - 12%), the European Union (9.2%), China (7.7%), Kazakhstan (4.3%), and Belarus (2.9%). 48.1% of exports to the European Union over the covered period were attributed to Poland, followed by the three Baltic states (37.2%).

Total turnover1 of the wine production sector measured in GEL has seen treGeorgia in 2011-20192. For number of employees in the sector, a CAGR of 12.1% was reported. In 2019, the average monthly remuneration of workers in the wine production sector amounted to GEL 1 046, and this figure had been increasing by 11.5% annually on average over the

amount exported in 2019. In 6M2021, exports of wine increased by 14.6% compared to 6M2019 (46.4 mln bottles in 2021, compared to 40.5 mln bottles in 2019).

Wine comprised 8.2% of the country’s total exports and was the 3rd most exported commodity (after copper ores and ferro-alloys) in 2019. Wine exports grew by an impressive 19.5% Compound Annual Growth Rate (CAGR) over the

mendous growth over the past decade, and by 2019 it had doubled since 2016 and quadrupled since 2011. The annual average growth of turnover in the sector stood at a massive 27.9% over the period of 2011-2019 in GEL, and 20.0% in USD. The role of the sector in the whole economy, as measured by the share of its turnover to total turnover, amounted to 0.8% in each year between 2017 and 2019.

The output of the wine production

2019, which is considered adequate.

However, the quick ratio in 2019 amounted to 0.51. The stark difference between these two ratios highlights the importance of inventories for the sector. Indeed, the inventories accounted for 31% of total assets of the analyzed companies in 2019.

figure for United States wineries3 was 2.69. Moreover, the inventory turnover in days was equal to 386 days, pushing the cash conversion cycle to 390 days, meaning that it takes more than one year for firms to convert their expenditure into cash.

In terms of asset management, the industry has some issues regarding excess inventories, as its inventory turnover ratio amounted to 0.9 in 2019. For the sake of comparison, the corresponding

Vertical analysis of the industry’s income statement reveals that its cost of goods sold (COGS) as a share of its revenues increased over the 2017-2019 period, from 59% in 2017, to 62% in 2019. In addition to this increase in COGS, interest expenses as a share of revenues also rose over the analyzed period (from 3.3% in 2017, to 2.9% in 2018, and then 3.8% in 2019).

period of 2011-2019. The average salary in the wine production sector compared to the average salary in Georgia has been increasing significantly - from 79% in 2014 to 93% in 2019. The productivity of the sector (i.e. output per employee) increasing at a CAGR of 14.9% in 20112019 (7.7% when output is measured in USD).

FINANCIAL INDICATORS

period of 2011-2019. The most significant year-on-year increase was recorded in 2017, when exports grew by 54.4% compared to 2016.

The average price of exported wine over the period of 2011-2020 was US$2.46 per bottle. From 2012 to 2014, the price increased significantly from $2.41 to $2.95, however it sharply fell to $2.26 in 2016.

Over the period of 2016-2020, the price stabilized between $2.2 and $2.4. For a global comparison, the world average export price for wine in 2019 was $2.59 per bottle, slightly higher than the $2.38 in Georgia in that year. During 2011-2016, Georgian wine was more expensive than world average, while since 2016, the opposite is true.

Georgian wine industry is highly dependent on exports to Russia, which took in an average of 57.5% of the total

sector, as well as its value-added, share similar dynamics to its turnover. The CAGR of output over 2011-2019 amounted to 28.8% (20.8% in USD), while the valueadded increased by 24.7% annually on average (17.0% in USD) over the same period. In 2019, the wine sector’s output was 2% of the output of the total economy. Investments in fixed assets by the wine sector also reflect similar dynamics to the abovementioned indicators, albeit with a notable distinction - in 2018 and 2019, investments increased by 65% and 62%, respectively, amounting to 1.9% of Georgia’s investment in fixed capital in 2019. Overall, the investments in this sector recorded an average annual growth rate of 32.4% in 2011-2019 (24.2% in USD).

The wine production sector in Georgia employed on average 0.8% of employed people (approximately 5 000 people) in

In addition to analyzing the sector’s key indicators, it is interesting to observe the financial performance of the sector.

The data necessary for the conducting of financial analysis have been provided

by EBIT Group, a financial consulting company. EBIT Group processed the financial statements of Georgian companies and conducted an analysis which is available on the investment-analytical platform ebita.ge. By aggregating financial statements of 50 companies, we can draw insights on the sector’s profitability, liquidity, leverage, and asset management.

Looking at five different profitability ratios, it seems that the wine production sector in Georgia is relatively profitable, however, over the course of 2017-2019 some of its profitability ratios were characterized by a slightly downward trend.

Nevertheless, if we benchmark Georgia’s wine industry’s ratios against winemakers in the United States3, both net profit margin and return on equity are significantly higher for Georgian companies.

The industry has a sound leverage ratio, with the debt-to-equity ratio amounting to 0.81 in 2019. However, this represented a 20-percentage point increase compared to 2017 and a 4-percentage point increase compared to 2018.

The liquidity of the sector, as measured by the current ratio, was equal to 1.72 in

In this section we analyze key indicators of the wine production sector, based on the data gleaned from the Statistical Survey of Enterprises by the National Statistics Office of Georgia. It should be mentioned here that as of June 2021, there were 693 companies registered as wine producers in Georgia. Presented data is based on NACE rev 2 classification. The analyzed code is 11.02.

2 This number includes only employees of wine producer firms. It does not involve people employed in wineyards or farmers who grow their own wineyards.

3 http://www.bizstats.com/corporation-industry-financials/manufacturing-31/ wineries-312135/show * In 2017, the sample of companies included in the analysis is significantly lower than in 2018 and 2019. ** In 2017, Adjusted EBITDA margin is higher than Net Profit Margin, which is mainly attributed to high non-operating income of some companies in the sample.

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10

SOCIETY

GEORGIA TODAY

JULY 23 - 29, 2021

Pareidolia: Everywhere the opposing parts, speeding up their disappearance in order to bolster our good fortune. That says a lot about how the worldview here works! Hearing it for the first time has also greatly enriched my understanding of local lore, and set me to wondering what other beliefs and ideas are wrapped up in the creatures which look across at or down on us from on high at certain parts of the year. A single orbit of our sun has many observances, rituals and annual events, especially in places still closely tied to the land and weather, and the ones which belong to Svaneti have a particular fascination to this late dweller.

From July 6 to 15 this year, I took a series of zoomed-in photos of this figure as it shrinks from its main form to nearly gone in the growing summer warmth, and then superimposed and lined up some of these to show the disappearance of the snow delineating in different shades. I still prefer my view of it as a dancing banner-bearer than the harbinger of good or bad fortune, but these are old legends and beliefs, even if not much practiced nowadays. I am glad to know more of them, which help me grow in my knowledge of Svan history, anthropology and culture.

BLOG BY TONY HANMER

B

ut especially here, or so a potter friend told me on her first visit with her husband, ascending to us in Svaneti from near Tbilisi to teach clay and the wheel to local children some years ago. “Tony, there were faces peering out at me from everywhere in these mountains as we drove up!” she said.

“The patterns of snow on the mountains,” (they usually came in winter), “the rock formations, the shadows as the sunlight changes… It’s no wonder these people have animism as part of their religious outlook!” I could hardly agree more.

The word for seeing faces and other familiar things in unexpected places in nature is pareidolia, from the Greek para (beside or beyond) and eidolia (form or image, with the word “idol” found nicely inside this word too). I am quite susceptible to it, and have noticed several prominent seasonally recurring figures guarding or watching over us as we have spent most of the last eight years in the village of Etseri. It in turn is a subset of the word apophenia, also of Greek roots, meaning the tendency of people to see patterns in random structures. Another foible of mine, which I count as a strength and source of endless amusement.

To the north of us are two huge mountainside faces, one of an old man, below that another of a mandrill or baboon.

This pair are prominent in late winter and early spring, being made of snow.

Opposite them, on another nearly verti-

cal mountain face to the south, is a whole gigantic human figure, appearing much later, July, with the last of the melting snow on that less-sunstruck slope. He appears to be dancing, with one leg up and arms outstretched, and also holding a banner or flag, which is blowing back in the wind and partly covering his torso.

This figure has the most amazing story

connected with it, which my close friend in the village recounted for me as soon as I showed him my photo of it.

Local people see a cross shape in the figure’s limbs and head of snow, and believed that whichever part of this cross stayed unmelted the longest, the place it was pointing to would have the best fortune in the coming year. The locations

represented were the villages above and below Etseri (left and right arms), those in faraway Lentekhi (the head) and us, the downward-pointing leg.

Apparently, though, people here were not content to leave things to the gods or forces of nature, even though “our” part is usually the latest to melt. Oh, no! They would climb up there and hack away at

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

UNICEF, EU, Support Gov’t in Developing Action Plan to Move Children from Institutions to a Family Environment

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NICEF, in partnership with the Government of Georgia and with the support of the European Union, this week convened all partners at a two-day working meeting to discuss the next steps for how to ensure a family environment for every child still residing in large-scale institutions. The meeting was organized as part of the UNICEF and EU joint project “Strengthening Systems and Services for Child Protection in Georgia”.

The objective of the technical workshop was to discuss the situation, to support the government in developing a joint strategy and action plan to accelerate the deinstitutionalization reform, and to define the next steps. Participants in the meeting included government agencies, civil society organizations, the Public Defender’s Office, independent experts, religious leaders, and international organizations.

The topics discussed at the meeting included: an overview of the deinstitutionalization reform and the situation in existing institutions (managed by the State, non-governmental organizations, local governments, as well as faith-based groups, including the ones under the Patriarchate of Georgia and those managed by the Muslim community); the situation in boarding schools under the Ministry of Education and Science; an overview of alternative care (e.g. foster care and small group homes) and family support services; the monitoring of children in institutions and in alternative care; and the main directions of the deinstitutionalization reform and next steps.

“In partnership with the European Union, we stand ready to facilitate a

constructive dialogue and to support the government in developing specific plans on how can we provide every child in an institution with a family environment,” says Ghassan Khalil, UNICEF Representative in Georgia. “We need to consider the children’s best interests in this process and understand what is the best solution for a particular child. We are ready to support in the assessment of children in institutions and to support the transition to family-based care. It is essential that as large institutions close down, community-based and family support services are introduced to guarantee further support for children leaving institutional care, [and that] their families and professionals are working with them,” Khalil added.

The Code on the Rights of the Child mandates the State to carry out all necessary legislative and administrative measures which involve the gradual substitution of the residential care of children, including children with disabilities, by foster care and other family and community-based services. For the purpose of deinstitutionalization, the Government of Georgia will develop and implement a single national strategy and an action plan to ensure that large residential care facilities are gradually closed.

It is essential that the safety, well-being, and development of any child placed in institutions be thoroughly supervised by specialists, and that regular review of the appropriateness of the care arrangement is provided. The Code on the Rights of the Child puts an emphasis on the importance of family support services at the central as well as municipal levels.

Strong family support services are required to ensure a family environment for every child, and to avoid the separa-

tion of a child from a family. Social welfare staff at central and municipal levels are key to providing quality social services.

Where preventive and family support services do not prevail, the quality of the alternative care for children should adhere to international and local stand-

Image source: osgf.ge

ards of childcare. The State’s monitoring and support capacity for alternative care services should be strengthened in line with the CRC, the Code on the Rights of the Child, Guidelines for Alternative Care of Children, and other international and local childcare standards.

UNICEF, in partnership with the EU

and USAID, has been supporting the deinstitutionalization process and child welfare reform in Georgia since 2005.

Even though the reforms undertaken have had significant impacts on the lives of many children and their families, there are still challenges remaining in the process of deinstitutionalization.

CULTURE

GEORGIA TODAY JULY 23 - 29, 2021

11

The Unprecedented Success of Georgian Numismatics: Coin Designer Kakhaber Topchishvili on His ‘Medea and the Golden Fleece’

EXCLUSIVE INTERVIEW

BY ANA DUMBADZE

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eorgian numismatics this month marked an unprecedented success: for the first time, a foreign coin with the Georgian-Greek theme ‘Medea and the Golden Fleece’ was minted by the Lithuanian Mint.

The inspiration for the design comes from the legend of the Argonauts, the 50 Greek warriors who, legend says, went to Colchis (an exonym for the Georgian polity of Egrisi located on the coast of the Black Sea, in present-day western Georgia) along with their leader Jason to fetch the Golden Fleece, and Medea, the daughter of King Aeëtes of Colchis. The beautiful sorceress Medea aids Jason in his search for the Golden Fleece out of love, assisting him with her magic and saving his life in several quests, before abandoning her home and fleeing with him to Corinth, where the two marry.

This is the first project of this scale to be implemented in the history of Georgian numismatics, seeing a Georgian-themed coin minted in a foreign country and a Georgian designer creating such a project implemented abroad.

The author of this work is renowned Georgian contemporary illustrator, painter and graphic artist Kakhaber Topchishvili, whose works decorate the exhibition spaces of the Zimmerli and Harvard museums, as well as the Moscow Museum of Modern Art. His works also adorn numerous private collections.

Today, Kakhaber heads the Ana Peradze Art School in Gori, raising future generations of talented Georgian artists and contributing to the development

of modern Georgian painting.

This week, graphic designer Iva Janezashvili announced the new coin in a post on Facebook and claimed authorship, mentioning Topchishvili as a “contributor to the project”. In reality, Topchishvili came up with both the concept and the design, while Janezashvili finalized it for minting and communicated with the Lithuanian side.

The coin, distinguished by its sophisticated design and magical colors, reflects the beautiful face of Colchis Medea. It is made in an antique style, with deep relief; the colored parts are gilded, and the back of the coin is decorated with five green Swarovski crystals of different sizes.

500 coins with the theme ‘Medea and the Golden Fleece’ have been minted so far as part of the new series 'Myths of Love' by Lithuanian Mint. The first (pictured) coin will go on sale in August and can be bought on the official website of Lithuanian Mint.

GEORGIA TODAY went to meet artist Kakhaber Topchishvili to find out more. He told us the exciting news that he is in negotiation with the Lithuanian side to have this coin followed by two further coins to complete the Medea collection, also created by him, but with different illustrations: one reflecting the Argonauts’ leader Jason fighting a mythical dragon, and another reflecting the love between Medea and Jason.

In his exclusive interview with GEORGIA TODAY, Kakhaber elaborated on the great success of his work, the inspiration which allowed him to create this masterpiece, and future collaboration plans with Lithuanian Mint.

As it turns out, Kakhaber is a big enthusiast of Mythology and Orientalism, a fact which inspired him to create this coin in an antique style.

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“I love the directions of the ancient period in painting, as well as orientalism, its mysticism, and impressionism.

Even in childhood, I enjoyed painting the characters and events of the ancient period,” he tells us. “I love the mythology of all countries that have it, especially, of course, Georgian mythology and the myth about the Argonauts and Colchis Medea.”

That’s how he chose the theme for his work when collaborating with Lithuanian Mint, a choice which was much appreciated and admired by the Lithuanian side, and, upon seeing even his draft sketches for the coin, they immediately accepted his idea.

Kakhaber’s Medea, like his other works, is distinguished, boasting an individual style and standing out from existing stereotypes. The author tells us he always avoids working in accordance with clichés; that, as a real artist, he works with his own individual view, inspired by fragments from the history of Georgia, Old Tbilisi, its lifestyle and architecture, traditions of Georgian people, and mythical characters.

“When the Lithuanian Mint suggested various themes to work with, such as the zodiac signs, I immediately fixed on mythology, first because it’s a topic that almost everyone is interested in, and second, because I wanted foreigners to be reminded of the synthesis of Georgian-Greek mythology, history and culture. With my work, I wanted to once again tell the story of beautiful Medea from Colchis,” the author notes.

Kakhaber’s Medea can be said to symbolize not only a mythical character,

Journalists: Ana Dumbadze, Vazha Tavberidze, Tony Hanmer, Emil Avdaliani, Nugzar B. Ruhadze, Michael Godwin, Ketevan Skhirtladze Photographer: Aleksei Serov

but women in general, in a design which brings together beauty, tenderness and strength.

Interestingly, there’s also a romantic story behind the creation of the coin when looking for inspiration for the face of Medea, Kakha was inspired by his wife.

“If you look at my wife, you’ll find similarities with the face of Medea drawn on the coin. She has a profile and appearance typical of the ancient period, which also worked as a source of inspiration for me,” he says.

We asked him what had lead him on this path of success, and what other works adorn his portfolio.

“After graduating the Tuganov Arts School, I continued my studies at the Faculty of Painting of the Apollon Kutateladze Academy of Arts in Tbilisi,” he tells us. “In 1998, I completed my postgraduate studies with the scientific work ‘Peculiarities of Georgian Painting’. But even before that, in 1993, I was invited to teach painting at the Academy of Fine Arts in Rome, and then in 2003, my works were exhibited in permanent expositions in the galleries of the Zimmerli and Harvard museums.”

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That same year, the artist had a personal exhibition at the Zurab Tsereteli Modern Art Gallery, followed in 2018 by a personal exhibition at the Art Palace of Georgia. The exposition was created using national motifs and combined more than 70 works. Eight of those works are now housed in the Art Palace Fund.

“Kakhaber Topchishvili is the most talented representative of modern Georgian painting, whose works are distinguished by a completely different style and manner. Unlike other contemporary artists, he is the only one who paints in the classic illustrative style established in the 19th century,” the Art Palace commission members noted of his works.

Looking ahead, Kakhaber plans to continue his successful career and express his love for his homeland, its history, mythology and characteristic mysticism, through his artworks.

Kakhaber’s collaboration with the Lithuanian side is also expected to continue in the future, with more and more exciting works from the author set to bring Georgian numismatics, and the local history and culture as a whole, even greater international recognition.

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