Issue #1269

Issue no: 1269

• OCTOBER 23 - 29, 2020 • PUBLISHED WEEKLY

PRICE: GEL 2.50

In this week’s issue...

Corona Updates: Cases Still Rising as Georgia Prepares for the Elections NEWS PAGE 2

Carrefour Supports ‘We Are Here for You’ Social Campaign

FOCUS ON THE ZUGDIDI HOSTAGES

A lone terrorist makes off with $0.5 mln in surprise bank attack

PAGE 2

NEWS PAGE 3

GEORGIA: MAI Georgia Insurance Brokers 2019 Insurance Brokerage Market Leader, both in Premiums & Commissions Terms NEWS PAGE 3

Peace in Nogorno-Karabakh May Be Just a Mirage POLITICS PAGE 4 Image sources: Zurab Tsertsvadze, AP, AFP, netgzaeti

Bachi Gabunia on the Launch of the UK-Georgia Trade Hub EXCLUSIVE INTERVIEW BY NINI DAKHUNDARIDZE

I

n the global economy, the more trading partners a country has, the better for its development. Georgia, as a still-developing country, needs to not only seek new partners, but to strengthen ties with those states already in partnership. The United Kingdom, a desirable partner for most, has always been and will always be an important and desirable market and strategic partner for Georgia.

To date, the UK is the largest investor in the Georgian economy. Now, with the creation of the UK-Georgia Trade Hub (UGTH), the trade between the two countries has been further simplified. In his interview with GEORGIA TODAY, Bachi Gabunia, the Founder-Director of UGTH, digs into why the two countries make great partners, why it is now a great time to export to the UK, what kind of production should be exported, Georgia’s role as a gateway to the East, and more.

Continued on page 9

Tbilisi Hills Golf Course Director on the Development of Golf Culture in Georgia BUSINESS PAGE 5

On the Labor Code of Georgia BUSINESS PAGE 7

State Ballet Performs Don Quixote in the Opera House Courtyard CULTURE PAGE 11 Prepared for Georgia Today Business by

Markets As of 19ͲOctͲ2020

Price

w/w

m/m

Bank of Georgia (BGEO LN)

GBP 9.04

Ͳ0,8%

+2,1%

GEOROG 04/21

101.63 (YTM 3.52%)

+0,1%

+0,2%

Georgia Capital (CGEO LN)

STOCKS

GBP 3.98

Ͳ4,6%

+9,6%

GEORG 04/21

102.10 (YTM 2.40%)

Ͳ0,3%

Ͳ0,4%

TBC Bank Group (TBCG LN)

GBP 9.55

Ͳ4,3%

Ͳ5,8%

GRAIL 07/22

104.86 (YTM 4.77%)

Ͳ0,1%

Ͳ0,3%

GEBGG 07/23

104.50 (YTM 4.26%)

+0,1%

Ͳ0,0%

COMMODITIES Crude Oil, Brent (US$/bbl) Gold Spot (US$/OZ)

Price

w/w

m/m

m/m

BONDS

Price

w/w

Price

w/w

42,62

+2,2%

Ͳ1,2%

GEL / USD

3,2169

+0,1%

Ͳ0,1%

1 904,08

Ͳ1,0%

Ͳ2,4%

CURRENCIES GEL / EUR

3,7860

Ͳ0,3%

Ͳ0,7%

m/m

GEL / GBP

4,1658

Ͳ0,8%

+0,1%

INDICES

Price

w/w

m/m

GEL / CHF

3,5391

+0,1%

+0,2%

FTSE 100

5 884,65

Ͳ1,9%

Ͳ2,0%

GEL / RUB

0,0413

Ͳ1,0%

FTSE 250

17 866,08

Ͳ1,7%

+1,7%

GEL / TRY

0,4081

+0,1%

Ͳ4,2%

DAX

12 854,66

Ͳ2,2%

Ͳ2,0%

GEL / AZN

1,8923

+0,1%

Ͳ0,1%

DOW JONES

28 195,42

Ͳ2,2%

+1,9%

GEL / AMD

NASDAQ

11 478,88

Ͳ3,3%

+6,4%

GEL / UAH

0,1134

Ͳ0,2%

Ͳ1,0%

130,56

Ͳ2,9%

Ͳ8,0%

EUR / USD

0,8497

+0,4%

+0,6%

MSCI EM EE MSCI EM

1 127,28

Ͳ0,9%

+1,7%

GBP / USD

0,0065

0,7721

Ͳ1,5%

+0,9%

Ͳ3,1%

Ͳ1,5%

Ͳ0,3%

SP 500

3 426,92

Ͳ3,0%

+3,2%

CHF / USD

0,9099

+0,1%

Ͳ0,2%

MSCI FM

2 269,20

Ͳ0,7%

+1,0%

RUB / USD

77,6602

+0,7%

+2,5%

GT Index (GEL)

1 582,68

Ͳ

Ͳ

TRY / USD

7,8836

Ͳ0,2%

+4,2%

GT Index (USD)

1 208,13

Ͳ

Ͳ

AZN / USD

1,6988

Ͳ

Ͳ

2

NEWS

GEORGIA TODAY

OCTOBER 23 - 29, 2020

Corona Updates: Cases Still Rising as Georgia Prepares for Elections

BY TEAM GT

A

BoG Robbery: All Hostages Freed, Operation Underway to Arrest Attacker

BY ANA DUMBADZE

I

n a statement released on October 22, the Interior Ministry of Georgia said all hostages, including the remaining four held captive by a robber who had broken into a Zugdidi branch of the Bank of Georgia, had been released, and an operation is underway to arrest the assailant.

"Thanks to police efforts, as a result of difficult and long-lasting negotiations, most of the hostages were released during the day, replaced by Avtandil Galdava, Director of the Samegrelo-Zemo Svaneti Police Department.

"Later, Galdava, along with three other hostages, left the building with the attacker.

"All hostages were released from the assailant thanks to the efforts made by Avtandil Galdava. All are safe and well.

Law enforcers are continuing intensive operative-investigative and search activ-

ities in order to arrest the assailant," reads the statement.

The attacker released the last four hostages in the village of Kirtskhi, Chkhorotsku district, after which he fled.

The assailant of the Bank of Georgia in Zugdidi, a town in the Samegrelo region, left the building last night with hostages and a grenade in his hand, after the police satisfied his demand and brought him half a million dollars in cash. He then drove off in a police car.

Yesterday, the Zugdidi branch of Bank of Georgia was attacked by an armed person who took 19 people hostage. He demanded half a million dollars in cash, a guarantee of his safety and freedom, and a plane or a car to flee in, otherwise, he would kill the hostages.

During the day, the attacker gradually released the majority of hostages.

An investigation was launched under Articles 179, 236 and 144 of the Criminal Code of Georgia, involving the charges of burglary, illegal keeping and carrying of firearms, and of hostage-taking.

s of October 22, 1595 new cases of coronavirus had been detected in Georgia, bringing the total number of infected people to 22,803, and total active cases to 13,224. The number of recovered increased by 398 to reach 9401. The death toll to date stands at 178.

4408 citizens are in quarantine zones and 3155 are under supervision in hospitals, while 1848 patients are being treated in special “COVID Hotels.”

NO MORE QUARANTINE FOR PCR NEGATIVE GEORGIANS FLYING HOME A new set of rules came into force this week, whereby citizens of Georgia will be placed in self-isolation instead of quarantine if they present negative PCR test results at the border upon their entry to the country.

“This measure applies to citizens of Georgia arriving from any country of the world, not only those which are under the international reciprocation arrangement,” Natia Mezvrishvili, Head of the Government Administration, said.

MANAGEMENT CRITICISM Having faced criticism this week for its handling of the pandemic, and amid claims Covid patients are being denied hospital beds or care, Natia Mezvrishvili on Wednesday noted that there may be individual cases when a medical consultation was delayed by 1-2 hours, but these cases are not of a systemic nature.

“21,703 people are in self-isolation today, and family doctors are in touch with each of them. It is understandable that there may be individual cases when a medical consultation was deferred by

1-2 hours, and that people write about such cases on social media. However, these are individual cases and do not have a systemic nature. Therefore, I urge you to refrain from engaging in panic.

Doctors ARE in touch with those in selfisolation at home or in COVID Hotels.

I urge you to help prevent the spread of such false information. The Government of Georgia has been unprecedentedly transparent from day one. No matter what, we will never withhold the truth from our public, which is why I urge you to rely on what is said from this platform and on official sources of information; on what is posted on stopcov.ge; on what is said by epidemiologists; and on what is discussed by the Council Members.

This will predominantly facilitate the flow of accurate information and will thereby contribute to the joint fight against the virus,” she stated.

THE ELECTIONS The Election Administration is offering all voters stuck in medical facilities or in isolation the chance to participate in the 31 October elections. Open, individual polling stations will be placed in medical institutions and in isolation facilities, while a mobile ballot box will be employed by special groups to ensure a maximum level of health and safety.

In particular: • The Central Election Commission of Georgia (CEC) will establish at least one

polling station within the district election commissions in municipalities, and staff special groups in line with specially defined requirements; • Representatives of the special groups will deliver mobile ballot boxes to voters in medical institutions and quarantine. In addition, voters in self-isolation whose data is recorded in a database may address the EA for permission to vote via a mobile ballot box; • Each member of the special group will be equipped with disposable coats, face masks, gloves, face shields, and any other sanitary-hygienic equipment deemed necessary; • Vote counting will not be carried out in quarantine spaces or medical institutions, but separately in specially established polling stations, which will ensure the transparency of the process.

The special polling stations and their voters will not be connected to regular polling stations, and the process will be provided with a higher level of security, including the participation of independent observers.

As of 20 October, 127 polling stations have been set up for hospitalized and self-isolated voters, Ana Mikeladze, CEC spokesperson, said. “It is important for the election administration to ensure that every citizen of Georgia and all parties involved in the elections have the opportunity to exercise their constitutional right to vote.”

NEWS

GEORGIA TODAY OCTOBER 23 - 29, 2020

3

Carrefour Supports ‘We Are Here for You’ Social Campaign since marked a 70 per cent reduction in the use of single-use plastic bags.

UPLIFTING PEOPLE WITH DISABILITIES In April 2019, Carrefour signed a memorandum of cooperation with Tbilisi Public School No. 203, which caters to 143 children with special needs. In addition to regularly visiting the school’s students and learning about their lives, Carrefour actively supports their integration into everyday life and activities so that they can develop valuable skills and enjoy the full, independent lives they deserve.

Over the course of the COVID-19 pandemic, the brand’s partnerships with organisations, local authorities and governing bodies — such as the Red Cross, Ministry of Education, Ministry of Environment and Agriculture, Tbilisi City Hall, We help; Emmaus and the Autism Research Center - allowed for a further expansion of Carrefour’s scope of support. Through these partnerships, Carrefour has helped people with disabilities, single mothers, socially vulnerable families, orphans, war veterans, children with serious illnesses, and the elderly.

T

he Life is Beautiful Foundation, one of Georgia’s most socially active charitable organizations, has launched a new social campaign. The campaign, entitled ‘We are Here for You,’ aims to raise all-important awareness and provide crucial assistance — on a monthly basis — to socially vulnerable multiple-child families.

Carrefour, the largest hypermarket and supermarket chain operated in Georgia

by Majid Al Futtaim, was the first brand to respond to Life is Beautiful’s call-toaction and commit to supporting the ‘We Are Here for You’ campaign.

Joining forces to support disadvantaged and at-risk members of the local community, representatives from the Life is Beautiful Foundation and Carrefour recently visited five multiple-child families (a multiple-child family being a family with more than one child) and gifted them food products, hygiene items and home appliances. Each of the families visited had no less than six children each, and attest to the scale and severity of the challenges many families across Georgia face — especially in the wake of COVID-19.

The participation of goodwill ambassadors, such as Carrefour, will go a long way to helping vulnerable Georgian

families overcome the barriers they have to contend with on a daily basis.

Life is Beautiful and Carrefour have a long and demonstrable record of contributing to important local and communal causes. Life is Beautiful was established on January 19, 2014, and has grown to distinguish itself as an influential and leading voice in Georgian civil society, organising several charitable events over the years in support of timely causes. These causes have largely been focused on issues affecting vulnerable families and families beset with difficult health conditions.

Projects organised by the foundation include: #მოდითეატრში (come to the theatre), in which 10 theaters in Tbilisi were involved. As a result of the successful implementation of the project, the beneficiaries severely impacted by serious — and, at times, life-threatening — conditions received assistance.

The foundation also launched #სიცოცხლისათვის (for life), as a result of which, vital funds were raised and used to build happy homes for children suffering from cancer.

Carrefour, which was launched in Georgia in 2012 , has also demonstrated its commitment to supporting the people and communities it serves. The brand has organized over 50 corporate citizen-

ship events in the last two years alone, reiterating its dedication to local and international causes and initiatives, with food security and environmental sustainability among its main priorities.

Sustainability, a central tenet of the brand’s ethos, is practiced through a holistic approach, encompassing environmental consciousness and the uplifting of socially vulnerable people. This focus on sustainability and helping those in need has been expressed in a number of ways, through a variety of channels, over the last few years.

A CATALYST FOR COMMUNITY COLLABORATION In parallel with implementing various corporate citizenship projects, the brand also empowers its customers to make a difference themselves.

During the pandemic, Carrefour joined the Red Cross and Tbilisi City Hall campaign to support socially vulnerable elderly people. As part of the social campaign, customers were given the oppor-

tunity to play their part by buying products at Carrefour Georgia stores, to be later distributed to those in need. Moreover, through a partnership with Mastercard, customers using the credit card within any Carrefour Georgia branch enabled a donation to be made toward helping single elderly people.

Most recently, an important memorandum signed with the international charity organisation, Emmaus, helped provide unwanted clothes to socially vulnerable families.

Carrefour continues to actively implement corporate citizenship projects in various directions, underlining its commitment to the people and communities it serves. The brand also emphasises the fact that, going forward, business will without doubt play an even greater role in supporting communities and improving the lives, welfare and wellbeing of many people across the country.

It is also noteworthy that Carrefour continues to support the Georgian economy through the opening new stores. The brand has recently celebrated the opening of five brand new outlets in the country. With unemployment being one of the most serious challenges Georgian society has to face, Carrefour maintains its position as one of the largest job creators in the local market and contributes to increasing the employment rate. In doing this, as well as raising awareness and calling attention to issues people all over the world have to contend with; and supporting dedicated partners such as Life is Beautiful, Carrefour is holding true to its promise of creating great moments for everyone, every day.

A COMMITMENT TO ELIMINATING SINGLEUSE PLASTIC In April 2018, Carrefour launched its ‘Honor the Nature’ campaign to educate its customers on the environmental harm of plastic bags, and, conversely, the advantages of using reusable bags. Since the launch, sales of Carrefour’s reusable bags have increased by 120 per cent. As part of its ongoing commitment to reducing — and eliminating — plastic consumption, Carrefour was rewarding all shoppers who choose to use a reusable bag, and in 2020, more than a million and a half customers were offered rewards.

The launch of these plastic bag-free campaigns across Carrefour’s stores have

GEORGIA: MAI Georgia Insurance Brokers

Levan Jishkariani, General Director

2019 Insurance Brokerage Market Leader, both in Premiums & Commissions Terms

M

AI Georgia is the leading insurance broker on the Georgian insurance intermediation market, holding 39% of the intermediation commissions cashed at the market level, in accordance with the data published by the Insurance Supervision service. In premiums terms, MAI Georgia accounts for 32% of the direct premiums and 61% of the reinsur-

ance premiums intermediated in Georgia.

According to the data provided by the supervising authority, MAI Georgia held a similar position in the previous years with a market share of 42% in 2017 and 31% in 2018. MAI Georgia’s market share for the first half of 2020 maintained at similar levels.

The closest broker to MAI Georgia holds only 22% of the total market com-

missions. These two brokers together are controlling over 60% of the intermediation market, both in regards to the commissions.

Overall, 16 insurance brokers registered in Georgia have mediated the direct insurance premiums of GEL 35.92 million and reinsurance premiums of GEL 18.41 million. In comparison with the total Gross Written premiums in the Georgian insurance market, mediated premiums still represent a rather low amount, accounting for about 6%. However, it is worth mentioning that until a few years ago, the insurance distribution in Georgia was almost fully dominated by the insurance companies’ sales networks until the arrival of more westernstyle insurance companies made it possible for the development of the brokerage distribution model.

MAI CEE Insurance Brokers Group was established in 1991 to bring international standards and a broad range of insurances to clients in the CEE, CIS and Caucuses regions. MAI has since grown considerably, gaining a presence in 26

countries within the region. With an adept consideration for regional differences and established regional and international relationships, MAI is embarking on its next phase of development.

MAI Georgia Insurance Brokers team

MAI entered Georgia in 2007 and still enjoys a unique position, being one of only two international brokers offering both insurance and reinsurance programs.

4

POLITICS

GEORGIA TODAY

OCTOBER 23 - 29, 2020

Peace in Nogorno-Karabakh May Be Just a Mirage

BY MICHAEL GODWIN

A

t this point, the war in the historically disputed territory has been going on for almost four weeks, with civilian and military casualties surpassing any of the other combat operations in the area for the past three decades. Under OSCE Minsk Group leadership, the United States, Russia, and France have teamed up in a concerted effort to coax the two sides to the negotiating table.

On two occasions so far, the two sides have agreed to a ceasefire, although both of these were almost immediately thrown out in favor of renewed fighting. As hard as it may be to conceive, peace itself might not be so clear an option.

Our modern views on conflict, the competing of wills brought to action, is an attempt to find a common agreement and compromise where necessary. So much of our modern perspective is centered around a fervent desire for peace and stability, and that any conflict can and will be resolved around a table in short manner. However, one must ask, what if this is simply not feasible? What if this isn’t a technical, practical, and achievable reality on the ground? Many of the questions that arise are not in line with our modern set of philosophies, and the Nogorno-Karabakh conflict could be the latest proving ground.

First, a fundamental understanding is necessary. Exhaustive books, reports, and lengthy essays have delved into the historical and cultural issues that culminate in what we see today. The basics of which are long-standing (and arguably ancient)

beliefs by each party that ancestral and cultural history is on their side to claims of the region. These are augmented by more recent agreements made in the post-Soviet demarcation agreements.

Despite all this, neither side has felt that their claims were settled properly, and as a result spats of fighting and unrest have plagued the area for decades.

In the current era, a split ownership has occurred. Azerbaijan has de jure ownership of the area, while Armenia has de facto control. Armenia’s protectorate of the Republic of Artsakh has been their pet entity in control, and their claims to rightfully defend that has been a rallying cry of their armed forces. Azerbaijan has many cultural, as well as UN resolution decisions, that claim that this is a hostile occupation of their land, and an affront to their people. With this, anyone can see the tinder is laid for a deep-rooted conflict to spark.

Then there’s the conflict itself. As with many “frozen” conflicts, they only involve limited if any military operations. These range from false borderization and the construction of permanent defensive positions and bases, to a restricted use of direct and indirect fires, including sniper and artillery weaponry. This, however, is not the case. The conflict has grown to see the tactical employment of advanced weapon systems, surveillance and reconnaissance technology, and even cyberwarfare. For the first and longest time in the modern era, two technically and tactically proficient armies have clashed with little interest in stopping.

On the ground, each force has kept such momentum of operations that bringing things to a close would prove much harder than what could be outlined on paper. It’s

Tofik Babayev—Xinhua/Getty Images

natural for brigade and battalion leadership on the front line to exploit openings in an enemy line and capture the opportunity to use their tactical momentum to take the next proverbial hill. To reel these commanders in and prohibit the use of these strategic opportunities for success would go against everything a military leader has ingrained in them since the beginning of their careers. In civilian terms, this would be akin to asking a business leader to forsake profits and growth, and instead stagnate or even hemorrhage money and assets. At a deeper level, it could be said that it even goes against our instinct as humans.

At a human level, the cultural aversion of the two is an important factor. For decades, and in some instances even centuries, the two nationalities have viewed the others as morally, intellectually, or politically inferior. While there are certainly enclaves where this is not the case, particularly in foreign and expat communities, it is more common than not, and more so in their own respective

homelands. Reports abound of Azeri men returning to their land after years of absence so as to enlist or serve in some way, and local propaganda efforts have promoted the concepts of national pride and collective defense of their ancestral territory. Armenians have likewise shown a concerted effort to drive the national message to that of defense and a protection of their kinfolk.

However, peace is not an easy thing, unlocked with the signing of a document and a shaking of hands in front of flashing cameras. Peace is not just the absence of active war. It is the absence of military aggression, combative rhetoric, and underlying hostility, and it requires a solid base consisting of a mutual desire for lasting cohabitation and a resistance to future aggressions. Many of these factors continue to plague the region, and the latter points are lacking from both side’s sociopolitical standing. Entrenched ideologies and deep-seated division on what visions on the future should include will infest any attempt to establish a true regional

peace in the current state of affairs. Eventually, something at the very core will have to change, or be destroyed entirely.

Like a rechargeable battery, public fervor and military force have their breaking points. Despite the clearly high current levels of popular enthusiasm and support for their government and military entities, this will have to run out at some point. The military is an expensive and demanding mistress, and eventually when the wallet runs dry, her services will become prohibitively unaffordable and unsustainable. Likewise, the people will tire of their unwavering support and grow exhausted of attending a new military funeral every weekend. At this point, both nations will be forced to a ceasefire and this could be the best condition for peace.

Sadly, there are times peace is only available at the current market price, and with the aforementioned conditions this could be at its highest.

While virtually every member of the international community calls for a peaceful solution, it seems more and more unlikely that this is a reality. The deeply ingrained motivations for retaining control of the region is evident by both countries, both politically and militarily. Rhetoric from both sides indicates this as well, with both staunchly declaring their commitment to the area and a resolute mission to hold or take territory. While our preternatural urges for peace are well placed, they might now be wholly attainable. At least not at the desired price. This could be the time to challenge our postmodern ideals. We may not have to embrace, but at a minimum come to terms with the icy, murky, and chilling understanding that all our problems may not be solvable by the pen.

NDI Releases Pre-election Bulletin #2

BY NINI DAKHUNDARIDZE

O

n Tuesday, the National Democratic Institute (NDI) released the institute’s second pre-election bulletin, focused on the information environment in the country and the inclusion of marginalized groups.

The data was collected between August 20 – October 20. The bulletin includes nine of the NGO’s recommendations to consider before the October 31 parliamentary elections. The institute is expected to publish the final assessment of the election process shortly after the elections.

“Social media is an increasingly important source of information in Georgia, which in turn means that exposure to online manipulation is growing,” NDI writes.

“Disinformation regarding covid-19 remains prevalent, while the recently resumed fighting in nearby NagornoKarabakh has sparked new disinformation narratives. From September 17 to October 15, two Georgia-based independent fact-checkers partnering with Facebook debunked 46 widely shared posts.

Armenian, Azerbaijani and Russian news sources have spread misleading or fake news stories about Georgia's actions and attitude toward the conflict, events in the ethnic minority areas, and the regional situation,” the institution notes.

“In a December 2019 NDI poll, 69% of respondents stated that they get the majority of their news from television, but only 32% agreed that Georgian TV presents unbiased coverage,” the NDI bulletin reads, after stating that although the country’s media environment is among the freest in the region, it is highly polarized and largely affects the citizens’ political conscience.

“Despite legal protections, women, ethnic and religious minorities, people with disabilities and LGBTI communities still struggle for political representation,” reads the document.

To improve the information environment and ensure the inclusion of the above-mentioned groups, NDI suggests nine recommendations: • The Georgian National Communications Commission, in coordination with the CEC, should take additional steps to publicize rules and proactively ensure compliance among the media and political parties.

• To safeguard voters’ access to balanced and reliable information, political parties and candidates should participate in all available debates and political programs to present their policies and plans to the public.

• Media outlets and journalists should be allowed to perform their legitimate functions and exercise their rights, in

keeping with journalistic ethics, without interference. Authorities should investigate alleged incidents in a timely manner and ensure that the perpetrators are adequately sanctioned.

• To increase transparency and avoid circumvention of the campaign finance rules, the electoral code should include provisions on the declaration of pages or social media used for campaign purposes. In order to increase their capacity to vet online advertising, state authorities should also establish communication with Facebook before elections.

• The government, political parties, civil society groups, journalists, and online platforms should continue and expand efforts to detect and mitigate disinformation in the elections and should implement long-term strategies to strengthen information integrity and community resilience.

• Political parties should put in place internal mechanisms to ensure women

Tweetolitics Image source: fivethirtyeight.com

OP-ED BY NUGZAR B. RUHADZE

T

he modern world doesn’t need any more portrayal than it already enjoys. We all know that it has become digital, which in essence means that the fulminant spread of any amount of information throughout the world has become possible. No sooner is a word uttered somewhere on the earth, it reaches our ears wherever we happen to be on the surface of the planet at the very moment of its utterance. The

time for a message to reach its target has shortened to a mindboggling extent: sending a message has become more than cheap, and the effort used on dispatching a note has turned into nothing.

So the info-boom and its light-speed distribution have changed almost every piece and facet of human life. Except politics, though!

Notwithstanding the pungent smell of drastic change in the air, politics is still done by means of using a lot of words, time, money and energy. For instance, the American presidential candidates are publicly bickering about their views and hues, this making no sense because

both have a readily accessible tool to express themselves just by tweeting. The tweet may have a higher level of distribution and influence over the listening public than any other means for telling them what a presidential candidate is promising the country. Just one little tweet can turn the world upside down, depending on the charge of the message, delivered by a quick and brief snap. So much for their Excellencies of other nations!

Let us now talk about our own political caboodle and its truculent inside-outs.

What we the people need in these preelection days is a brief piece of info on what the running animal represents as a person and a politician, plus a clear message from the challenger on what his or her plan is for bettering our lives.

That’s all we need – literally! So any wannabe can punch into his computer a couple of lines about his intentions, hit the button, and bingo – the tweet is out and we all know what we can expect

as a result. What we are getting instead is a round-the-clock earsplitting and nervous gabble and twaddle on how indispensable and irreplaceable this or that politically overexcited man or woman is, exuding the same exactly verbal content. This is so tiring! And boring! And unlikely to yield into anything very useful for us the people!

There is hardly a family in Georgia living without a computer and internet access today, and of course without a cell phone capable of any sort of a communicative magic. I wouldn’t even use a big box, called a TV set. Just tweet me and I know what you want from me.

When I say ‘tweet’ I mean any handy tool of sending out information by an electronic medium. There can’t be a better way to buy my vote if you need one.

Look at President Trump of the United States: he is doing much better with his out-of-the-blue tweets than in a direct presidential debate, which takes a lot of time, money and energy to be organized

candidates are well supported throughout the remainder of the campaign.

• In the remaining days of the campaign, parties should make a deliberate effort to provide concrete details and steps regarding how they would address issues of importance to marginalized populations.

• Political parties and candidates should avoid topics that risk increasing division or tensions, including the fighting in Nagorno-Karabakh, and instead focus campaigns on program priorities and speak more directly to the needs of minority communities in Georgia.

• Political parties should sign on to the multi-party memorandum against the use of homophobic language in elections.

NDI notes it appreciates the support of the United States Agency for International Development (USAID) and National Endowment for Democracy (NED), which make possible the Institute’s ongoing election analysis.

and broadcast.

It is high time for all of us on Earth to understand that democracy is surely staying with us, but that it has acquired certain sophisticated electronic instruments for executing its functional essence, which is totally different from what we used in the past to put our best choices in the offices that be. Imagine a picture of turning Politics into Tweetolitics in Georgia: we, the voting penguins, are sitting at home, happily ensconced on fluffy sofas and in comfy armchairs, sipping on a glass of wine and staring at the screens of our comps and cells that are tweeting away handy information for us to make the most educated electoral choice, all this happening without need to join in abominable street broils and rows, or listen to those eternally ubiquitous politicians stuffing into our poor ears the hateful propaganda of which we might soon run amuck if we don’t manage to stay away. What a piece of bliss this could be!

BUSINESS

GEORGIA TODAY OCTOBER 23 - 29, 2020

5

Tbilisi Hills Golf Course Director on the Development of Golf Culture in Georgia play in many different countries. Golf took me to the US, where I studied Golf Management. Afterwards, I went to another school in the UK. I would say golf is the best thing that happened to me, and it set me on the right track. I’m very grateful to my dad and actually, I always encourage other parents to get their children involved in golf because they’re going to meet a lot of new people, learn new skills that are necessary not just in business, but in life.

HOW DID GOLF LEAD YOU TO BECOME PART OF THE TBILISI HILLS TEAM?

T

oday, the popularity of golf worldwide is rapidly increasing, with more and more people looking for a healthy lifestyle and choosing golf as a perfect opportunity to achieve it. In Georgia, this sport has been growing only in recent years, thanks to professionals of the field entering the country and bringing golf culture with them.

One of the most distinguished facilities and biggest contributors in this direction in Georgia is Tbilisi Hills Golf course, which is already a favorite destination among golf enthusiasts. The Tbilisi Hills Golf course is ranked 34th among the 100 best golf courses in Continental Europe and offers various opportunities for both professionals and beginners.

Children are also welcome and can learn through special school programs.

As it turns out, Tbilisi Hills has a lot of novelties planned to develop golf in Georgia and motivate both adults and the younger generations to get involved.

GEORGIA TODAY spoke to Paul Pohi, Tbilisi Hills Golf Course Director and professional golf player, who elaborated on these and other interesting details about golf as a game and lifestyle, its development in Georgia, and the contribution of Tbilisi Hills Golf Course to this process.

I was a head professional at the Golf Academy, which was the busiest in Estonia. And we developed programs for beginners that worked really well. A friend of mine, who was a shareholder of Tbilisi Hills at that time, brought me here to start golf development. In Estonia, in the first 20 years, I would say we did not a good job getting people into golf, and we made a lot of mistakes, but in order to start well, that experience and know-how was required and that’s how I ended up here.

THE POPULARITY OF GOLF WORLDWIDE IS INCREASING. WHAT MAKES THIS SPORT SO POPULAR AND DISTINGUISHED FROM OTHERS? There are many good sides of golf. One is that you get good moderate exercise.

For example, if you play 18 holes, you will walk more than 10 kilometers. It’s played outdoors, in fresh air. This summer especially, golf has grown both in Georgia and worldwide because of COVID, as it is an ideal means to get some exercise and at the same time, keep good social distancing. In Europe, it experienced a boom. After lockdown, when golf courses opened again, and gyms and indoor tennis courts were still closed, everyone turned to golf. Why is golf so popular?

It’s ideal for networking, meeting new people, finding new friends. Also, practice shows that it opens a lot of business opportunities. Golf can be played by anyone, so advanced players and beginners can play together. If you want to play tennis and you want to have a good match, then you and your partner’s abilities must be roughly at the same level.

But here, father, son and grandson can go to the golf course, play from different starting points, and they can have a different amount of strokes, but still enjoy a good round of golf together.

HOW WELL-DEVELOPED IS GOLF IN GEORGIA? ARE THERE OTHER SUITABLE GOLF COURSES AND CONDITIONS? Looking at the big picture, golf is still starting here in Georgia, but it’s good to see that there are very good courses and the number of golfers is growing. For instance, here at Tbilisi Hills, we have a very well-structured beginners’ program which shows really good results. There are currently two golf courses, two venues where you can play golf and in one year, a third will be opened. Tbilisi Hills is the only professional full-size golf course, a lot of people have discovered it and fallen in love with golf.

YOU USED TO BE A PROFESSIONAL GOLF PLAYER. TELL ABOUT YOUR EXPERIENCE, ABOUT THE ADVANTAGES OF THE GAME, HOW YOU GOT INVOLVED IN THIS SPORT, AND WHAT HELPED YOU TO BECOME A PART OF THE GOLFING ELITE. I started to play golf when I was 12 years old when my father took me to a golf course, and I pretty quickly got hooked.

I used to play tennis and basketball, that was a good sort of base for me, and quite soon I made it to the national team, which give me a chance to travel the world,

HOW WOULD YOU EVALUATE THE GEORGIAN NATIONAL CHAMPIONSHIP OF GOLF? IS IT NOTABLE THAT THE SPORT IS GAINING POPULARITY AMONG LOCALS? WHAT IS THE CONTRIBUTION OF THE TBILISI HILLS GOLF COURSE TO THIS PROCESS? It’s good to see that the number of Georgians who take part in the tournament has grown. The level of playing has improved a lot. And why I’m especially glad is that we saw ladies participating, we saw youth taking part: it’s a mix of different people playing. Currently, Tbilisi Hills is the only golf course which actively gets new golfers involved in the game, and if we have a look at the conversion rate from beginners’ program to memberships, and those who start to play golf, we’re doing an extremely good job. Actually, this is very good number and not just for Georgia, it’s in general in Europe, and we are doing an excellent job.

TELL US MORE ABOUT THE TBILISI HILLS GOLF COURSE. WHAT ACTIVITIES DOES IT OFFER FOR ADULTS AND CHILDREN? Tbilisi Hills Golf is a part of the Euro-

pean Tour Destination network, and we are currently ranked 34th in the top 100 golf courses in Continental Europe. This shows the level of the facilities here. We have a very wide range of different activities, from complete beginners to advanced players. We have junior lessons and beginner programs, so anyone can become a golfer. We have different introduction lessons for those who just want to have a little more knowledge on what the game is about, and of course we have different types of membership for different players, so there’s something for everyone.

TELL US ABOUT THE SCHOOL PROGRAMS. Tbilisi Hills golf got support from the Ryder Cup European Development Trust, to create a program to get school kids into golf. Initially, we were planning to start that project in spring, but due to COVID-19, we had to postpone it. The plan is to get 500+ schoolchildren to the golf course. We have a program, we have a good coach, this is something I also did in Estonia, it was very successful and we’re planning to repeat it here. Initially, we will have introduction to golf, part of their physical education class, and then they can go on to learn to become golfers. I already know that there are schools that are interested in taking that to the next level.

WHAT NOVELTIES ARE PLANNED FOR THE NEXT SEASON? WHAT NOVELTIES WILL TBILISI HILLS GOLF COURSE BE PROMOTING? We’re going to start the school program this year, but we’re going to focus on it even more next year; reaching out to kids and going to schools. We’re also going to have a lot of tournaments, both local tournaments for our members and also international tournaments. Currently, we’re looking to have 40+ tournaments in 2021. We also have a lot of different activities for non-golfers who are our potential members, with offers like golf and dinner. The golf course is open for everyone: you can come here any day and rent a club, or take a lesson; we have an European cousine restaurant, and a very relaxing atmosphere here, so it doesn’t have to be an event to come here, as we’re open all year around, every day.

So see you in our events – Golf&Dinner on Wednesdays or Golf&Brunch on Sundays – more information www.tbilisihills.com/golf/

China’s Push for Improved Connectivity Augurs Badly for Russia’s Positioning in Central Asia

BY EMIL AVDALIANI*

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hanges in the balance of power (economic and military included) are often presumed to be too large and dramatic in scope for analysts to start talking about unfolding great geopolitical shifts. Nothing as seemingly large as to cause a reversal of close China-Russia relations is currently taking place between Moscow and Beijing. In fact, the bilateral ties are growing in complexity, ranging from military cooperation to general geopolitical aligning against the US-led bloc. This is what is taking place on the surface, but on the ground across the Eurasian landmass, it is increasingly difficult for China and Russia to keep quiet about their differences.

A good example of differing visions between the two is the Central Asian region. Geographically isolated, with most of its critical infrastructure directed

towards the Russian heartland, the region is a breeding ground for unfolding changes in the Eurasian balance of power. One of the misconceptions in the current studies on China-Russia relations and their potential competition is to expect something as drastic on a par with what took place in Ukraine in 2014, pitting Russia against the West. Nothing even distantly as similar is likely to happen between Beijing and Moscow. Instead, we should be looking at relatively quiet processes which range from changing infrastructure, to seemingly benign political gestures and statements that signal upcoming geopolitical shifts.

For Russia, “losing” Central Asia is not about Chinese military bases suddenly popping up in the region. It is about subtler things. Serving as the region’s exclusive interconnector with the outside world, whether in imperial or Soviet times, in many respects the dependence of Central Asia on Russia was contingent upon geographic inevitability. No alternative routes existed, while the neighboring powers were poor and weak.

Breaking this geographic prison, therefore, will be tantamount to a loosening of Russia’s economic grip and the consequential decrease of Moscow’s geopolitical influence. It is also not so much about “losing” Central Asia to China per se, but rather losing the region to the

region’s states themselves, which will be capable of diversifying their trade routes and economic contacts with the outside world.

China is nevertheless instrumental in opening up Central Asia, and trade corridors are a good indicator of the chang-

ing times. With Beijing’s active involvement, a new transportation route was unveiled in early September when a freight train from China, through Kazakhstan, reached the Turkmen city of Anev three days later, covering in total some 8780 kilometers.

In August, the Islamic Republic of Iran unveiled two corridors to the heart of Central Asia: the Kyrgyzstan-TajikistanAfghanistan-Iran (KTAI) route, and the Iran-Afghanistan-Uzbekistan route.

According to the Islamic Republic of Iran Customs Administration (IRICA), Iran sent two shipments of goods from Shahid Rajaei Port in the southern port city of Bandar Abbas to Uzbekistan via the newly established route, Iran-Afghanistan-Uzbekistan.

All these routes have problems rooted in general security and political procrastination on behalf of the governments involved, but they nevertheless indicate a growing impetus for changing centuries-old communication and trade routes.

Moreover, all these initiatives are backed

by China.

Continued on page 9

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BUSINESS

GEORGIA TODAY

OCTOBER 23 - 29, 2020

The Case for Reopening Tourism: International Comparison

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he COVID-19 pandemic has hindered tourism all over the world. Such a downturn was especially visible in April and May, since which some countries have reopened tourism fully, while others have continued to impose tight restrictions.

Georgia falls into the latter category here, but with international travel revenues contributing significantly to its GDP (18.4% in 2019), there is widespread debate about whether Georgia should loosen its restrictions and, if so, to what extent. In this issue, we will try to address this quandary by analyzing case studies of countries to have quickly reopened their tourism sector without significant restrictions and regulations.

Specifically, we have selected three Southeastern European countries for the analysis, each of which reopened without any testing and quarantine requirements: North Macedonia, Serbia, and Albania. In April and May, each of the countries had severe lockdown measures in place and subsequently registered a fall in the number of visitors close to 100%, compared to the corresponding period of 2019. In June, the first signs of recovery became visible for Serbia and Albania; however, the Serbian numbers stagnated at around

a 90% fall for the ensuing months. The number of foreign visitors to Georgia and North Macedonia decreased by more than 90% in every month after April. Albania, meanwhile, managed more of a recovery, with its number of foreign visitors at -72% for June 2020 (compared to June 2019), and then -67% for July, and -63% for August.

The case of Albania could be considered a success story, especially as the spread of the virus has remained more or less in line with the average for Eastern European and Central Asian countries in terms of the number of cases per million people. However, there are several factors to bear in mind that have made it possible for Albania to recover its tourism sector to a greater extent than its neighbors (North Macedonia and Serbia). One of the most important factors was that the epidemiological situation in its neighboring countries was relatively similar. In August, 56% of foreign visitors to Albania came from its neighboring countries.

In the case of Georgia, it would be impossible to significantly recover the number of visitors from its neighboring countries without risking the uncontrolled spread of the virus, as each of Georgia's neighbors has experienced a relatively high infection rate. In 2019, visitors from its four neighboring countries accounted for 71% of total visitors.

This means that while reopening flights with safer countries would compensate for some of the decline in tourism, it would not have a sizable impact on the number of total visitors and would thus draw limited revenues as well.

To conclude, it is not probable that making flights available without restrictions in place would lead to a significant increase in the number of foreign visitors to Georgia. Moreover, if the epidemiological situation in the country worsens, domestic tourism would also suffer. With this in mind, it is crucial to support businesses and households engaged in, and dependent on, tourism. They are being stripped of their main source of income and will need help to ready themselves for the post-pandemic recovery, whenever that may begin.

BUSINESS

GEORGIA TODAY OCTOBER 23 - 29, 2020

7

On the Labor Code of Georgia

ANALYSIS BY THE MKD LAW TEAM

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he 9th Parliament of Georgia adopted an extensive package of changes to the Labor Code of Georgia (“LC”) before expiration of its term of authority. Economic development of the country generated the need for modifications. In the mid-2000s, when the government policy was aimed to make the Georgian legal framework sharply liberal and investor-friendly, a wave of deregulation had a serious impact over the then version of the LC, leaving employees without sufficient protection. In 2013, when the policy changed, Georgia partially reformed the LC, providing a better balance between the interests of the parties.

Despite that, throughout the 7 years of operation, the judicial system detected a number of shortcomings which needed to be addressed by the legislators. Furthermore, adoption of the new amendments was accelerated by the need to fulfill obligations undertaken in accordance with the Association Agreement between the EU and Georgia.

The new amendments can be considered as yet another (and rather successful) attempt to bring Georgia’s Labor legislation in line with international standards. The amended version of LC bans discrimination in the workplace, defines the terms of employment contracts, fixes working hours, determines conditions for internship and part-time work, strengthens the Labor Inspectorate, provides more social guarantees, and creates a much more favorable working environment for the most vulnerable groups of employees, such as the pregnant and disabled. Below, we will provide an overview of the major changes to the LC.

COMMENCEMENT OF LABOR RELATIONSHIPS Newly enacted amendments provide that there are no alternative documents to the employment contract. Previously, the application of a person and the employment record on hiring an applicant to a respective position were deemed equivalent to an employment contract; nevertheless, the new regulations carve this provision out and require execution of an employment contract.

The term within which the execution of the written employment contract was required has been shortened from three to one month. Moreover, if a fixed-term employment contract is concluded without the relevant grounds specified in the LC, it will be considered as a permanent employment contract.

The employer is now obliged to notify a fixed-term employee of vacant positions so that they, like any other employee, has an equal opportunity to hold a position under a permanent employment contract;

WORK PERFORMANCE Prohibition of Labor Discrimination the notion and regulation of discrimination has been expanded, considering that a whole chapter has been added to the LC, while until now this issue had been regulated by one article only. The strength of the current version of the discrimination definition is its nonexhaustive wording, which enables any victim of discrimination to bring their case to court. The updated LC obliges employers to ensure equal pay for a woman and a man conducting the same work. The issues concerning the burden of proof in discrimination-related disputes are also regulated: the burden lies on the employer in case the applicant or employee points out facts and/or circumstances which raise reasonable doubt that the employer has violated

Sandro Samadbegishvili Partner the rules for prohibition of discrimination.

Working hours and Overtime Work - the amendments contain new provisions concerning limits on work hours, mandatory weekly rest time, breaks between shifts, and better protection for night-shift workers.

Previously, a 40-hour weekly cap on working hours existed only on paper, the loophole allowing many employers to stretch weekly working hours from 40 to 48 hours without reimbursing additional work as overtime. Now, the Code introduces the definition of Normalized Working Time, which shall not exceed the 40 hours per week.

The new document also regulates break times, stating that if the working hours in a day are no less than 6 hours, the employee has the right to a minimum 60 minutes of break and at least one 24-hour rest period a week, or a 48 hour rest period in every two weeks. A new obligation has been imposed on employers, as they have to record the working time on a daily basis and keep the data; The changes affected overtime work.

For overtime work, employee’s consent is required and, where possible, the employer is obliged to notify the employee in writing about overtime work 1 week in advance. The overtime remuneration should be paid together with monthly remuneration, after the overtime work is performed. The employee should be given additional rest time no later than 4 weeks after performing overtime work, unless otherwise agreed by the parties.

Remuneration - the concept of remuneration has changed and it now includes not only the usual basic or minimum wage or salary, as well as any other remuneration paid in cash or in kind.

cedures in employment disputes. In particular, it specifies time limits for appealing the decision of the employer on termination of the employment contract and the claims that an employee can have in case of termination. The limitation period for lodging any claim under the LC to court constitutes one year after an employee has learned or should have learned of the violation of the right.

EXISTING CHALLENGES The draft law was influenced by the discussions held with the participation of representatives of the business sector, so the final version is rather different from the one that was initiated by the parliament. There were two most controversial issues that caused debates with

TERMINATION OF LABOR RELATIONSHIPS

Mariam Karseladze Junior Associate

In case of termination of the contract on the basis of "other objective circumstances", the employer is obliged to substantiate in the notice of termination, the objective circumstance which justifies the termination of the employment contract.

The amended LC also defines the regulations related to the transfer of the enterprise and prohibits termination of employment on this basis.

Changes also concern civil-law pro-

Ani Nanobashvili Junior Associate

business groups: The amount of overtime pay - the initial version of the draft law suggested that an employee should have been paid at least 125 percent of the normal hourly rate for overtime work. However, this provision is not included in the final version and the fair amount of overtime payment is still left to the judicial practice to decide.

The amount of Labor remuneration - according to the initial version of the draft law, an employee should have been paid no less than the minimum salary.

The mechanism for indicating the minimum salary and related regulations should have been stipulated by the law on minimum remuneration. This provision has not survived three readings in parliament either.

Moreover, considering the reality we live in and the problems society faces today, it would have been preferable to regulate the employment relations in cases such as the Covid-19 pandemic.

The adoption of the changes to the LC, which we briefly reviewed, is a somewhat successful step towards improvement of Georgian Labor legislation and ensuring compliance of labor regulations with EU standards, which could have been made considering the economic environment of the country.

It became clear from the discussions held and decisions made during the process of adoption of the amendments that the business sector in Georgia is not ready for relatively strict regulations yet. Thus, despite the fact that the amended LC is more employee-oriented and its provisions give employees labor/social guarantees, they do not put too much pressure on the business sector. However, it introduces some additional procedural burdens for employers and imposes new obligations, which require more time, paperwork and expenses. Overall, the amended LC provides a substantially improved balance between the interests of employers and employees in comparison with the previous version.

It is evident that, along with all the pros listed above, the current version of the LC leaves some important issues open to interpretation. Until the loopholes in the law are corrected, the court is responsible for interpreting the vague provisions and regulating issues regarding which law is silent.

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BUSINESS

GEORGIA TODAY

OCTOBER 23 - 29, 2020

ISET GDP Forecast | Georgia’s Growth Rate Remains Negative, but a Swift Recovery is Expected Next Year from Japan, Romania, Germany, and Iran.

Consequently, the trade deficit shrank dramatically by 27.1% yearly, and amounted to 350.8 million USD.

MONEY INFLOW, INTERNATIONAL VISITS, AND TOURISM

BY DAVIT KESHELAVA AND YASYA BABYCH

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SET-PI has updated its real GDP growth forecast for the third and fourth quarters of 2020. Here are the highlights of this month’s release:

HIGHLIGHTS • ISET-PI’s forecast of real GDP growth for the third quarter (July-September) of 2020 remains at -11.6%, unchanged from last month’s prediction. The third estimate for the fourth quarter (OctoberDecember) growth forecast stands at -11.8%. Notably, our econometric model depends only on retrospective information (past observations), thus, the abnormally large negative growth of real GDP during the state of emergency period causes an overestimation of the contraction in the following quarters.

• Geostat recently published its preliminary estimate of real GDP growth for August, which currently stands at -5.3%. As a result, the real GDP growth estimate for the first eight months of 2020 is -5.6%.

• Based on August’s data, we expect annual growth in 2020 to be -8.6%. Once again, this is most likely an overestimation of the severity, since the nature of the shock (a transitory lockdown event) in the second quarter of 2020 does not have relevant analogues in the Georgian data.

GEORGIA’S GDP GROWTH – WHAT DO THE FORECASTS SAY? Most international organizations lowered their forecasts of Georgia’s real GDP growth for 2020, while expecting a quick recovery in 2021. According to the Asian Development Bank’s (ADB) recent Economic Outlook, Georgia’s economy is expected to decline by 5% this year (mostly due to COVID-19), picking up to 4.5% in 2021. Notably, Georgia’s real GDP growth forecast is one of the lowest among ADB countries (for detailed information see Figure 2). Both the International Monetary Fund (IMF) and the National Bank of Georgia (NBG) have similar real GDP predictions as ADB. The World Bank (WB) has the most conservative prediction among international (and even national) organizations.

According to the WB, the economy is projected to contract by 6% in 2020, with

severe welfare consequences and predicted poverty increases of up to 2.8 percentage points . This translates into 160,000 Georgians becoming impoverished and 400,000 suffering downward mobility. The most optimistic predictions so far have been provided by the Ministry of Finance of Georgia (MoF)– Georgia’s economy is predicted to decline by 4.9% in 2020, picking up to 5% growth in 2021.

After a significant slowdown in remittance inflows due to the ongoing health and oil price crises, money inflows recovered in June, July, and August. In August, remittances increased by 25.8% annually and reached 184.2 million USD. The main contributors to this increase were Azerbaijan (by 269.6% YoY, contributing 3.5 ppts), EU countries (by 33.3% YoY) including Italy (by 35.9% YoY, contributing 5 ppts), Greece (by 40.1% YoY, 4 ppts) and Germany (by 62.4% YoY, 1.8 ppts), along with Turkey (by 21.7% YoY, 1.2 ppts), Ukraine (by 187.1% YoY, 4.9 ppts), and the USA (by 45.8%, 4.7 ppts). Whereas money inflows decreased from Russia (by 1.5% YoY, -0.4 ppts) and the Kyrgyz Republic (by 68.3% YoY, -1.1 ppts). Remittances have made a significant positive contribution to the growth forecast.

Tourism arrivals and receipts declined sharply as a result of numerous travel bans, as well as due to precautionary behaviors on the part of potential tourists. In August, the number of international visitors decreased by 96% yearly (driven by Armenia [-16.9 ppts], Azerbaijan [-20.5 ppts], Russia [-18.7 ppts] and Turkey [-12.7 ppts]), while the decline in tourist numbers (visitors who spent 24 hours or more in Georgia) amounted to 79.2%. In summary, decreased tour-

(Europe Brent Spot Price (COP) decreased by 24.2% yearly). It is worth noting that the annual inflation trend is now reverting and approaching the inflation target from above (see Figure 3).

In addition, the National Bank of Georgia has reduced the Monetary Policy Rate (MPR) three times over the past several months: in April by 0.5 ppt and in June and August by 0.25 ppt each, decreasing the MPR to 8%. This move has been calculated as a monetary policy measure to stimulate economic recovery. In September, however, the monetary policy committee of NBG decided to keep MPR unchanged due to significant depreciation of the national currency and risks of emerging inflationary expectations.

NATIONAL AND FOREIGN CURRENCY DEPOSITS The other group of variables that experienced notable monthly and yearly changes in August and made a small positive contribution to the Q3 and Q4 forecasts, was the volume of National Currency Deposits in commercial banks.

The largest yearly increase was observed in National Currency Time Deposits with Maturity Less than 3 Months–a 142.6% increase relative to the same month of the previous year. The second largest yearly increase was experienced within National Currency Time Deposits with Maturity More than 12 Months– a 110.6% increase year-over-year. Indeed, we can see from the forecast that an increase in National Currency Depositsrelated variables had a positive contribution to the GDP growth projection.

EXTERNAL TRADE Weak external demand, continued social distancing (together with the introduction of certain government restrictions) and weak consumer sentiment in partner countries had a notable negative impact on trade statistics. In August, Georgia’s exports experienced a 7.5% annual decline.

This drop was driven by reduced reexport of motor cars and trucks to Armenia, export/re-export of motor cars, cigarettes, and tobacco products to Azerbaijan, alongside the declining export of chemical and mineral fertilizers and mechanical equipment to Turkmenistan; export/re-export of motor cars and medicines to the Kyrgyz Republic; and export of ferroalloys and sheep/goats to Iran. There was, moreover, a significant decline in the export of goods to the European Union motivated by a drop in the export of copper ores and concentrates to Romania. At the same time, Georgian exports to Bulgaria and China (due to improved re-export of “copper ores and concentrates” and “precious metals”), and Turkey (due to increased export of ferroalloys and textiles) experienced notable growth.

During this period, the import of goods decreased by 19.3%, driven by a reduction in petroleum and fuel product imports from Turkmenistan (mostly due to reduced crude oil prices on the international market), packaged medicines, and non-ferrous metal structures from Turkey, packaged medicines and tobacco products from Ukraine, and fewer imports

ism spending along with dramatically declining numbers of visitors and tourists over the corresponding months have made a significant negative contribution to the growth forecast.

INFLATION AND MONETARY POLICY According to our model, another negative contributor to growth was the increased consumer price index, compared to the same month of the previous year. In August, the annual inflation of consumer prices amounted to 4.8%, which is notably higher than the targeted 3%. Approximately 2.4 percentage points of CPI inflation were related to higher food prices (9.1% annual increase), while tobacco prices contributed 0.4 percentage points (13.4% annual growth). However, decreased oil prices (22.5% annually) made a notable negative contribution (0.8 ppts) to the annual inflation measure. The latter trend is mostly a reflection of significantly weakened oil prices on the global market

The growth was relatively moderate in the case of Foreign Currency Deposits in commercial banks. As a result, deposit dollarization reduced by 1.3 ppts to 60.7%. (In the meantime, the Dollarization Ratio of the total credit portfolio amounted to 56.2%).

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 passes. 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 OCTOBER 23 - 29, 2020

9

Bachi Gabunia on the Launch of the UK-Georgia Trade Hub Continued from page 1 “Historically, it has always been in the interests of Georgians to enter the British market,” Gabunia tells us. “This was due to the fact that the exchange rate of the British pound, which is currently 4.16 to 1 GEL, has always been higher and more stable than other currencies.

However, traditionally, it [entering the British market] was associated with a number of issues, among them the costs of transportation, customs clearance, warehousing, and ultimately selling the products.

“The process of entering the British market once needed the involvement of several profit-making ‘negotiator’ companies. One business needed about 4-5 such companies. It was also hard to export production in small amounts: companies had to send a whole container. Yet another problem would arise with storing and distribution. So, really, only the ‘brave’ were willing to take the risk.”

Having studied the contemporary demands and tendencies, Bachi Gabunia, a London-based Georgian businessman, got the idea to found the UK-Georgia Trade Hub to simplify trade between the two countries. Designed to unite small and medium-sized businesses interested in entering the British market, simplify logistical-administrative services for them, helping them overcome difficulties, and cutting the costs of warehousing goods, the trade hub actually consists of two hubs: one in Tbilisi and one in London. There, British and Georgian entrepreneurs and businesspersons will be able to warehouse their production meant for export. The common warehouse, and the fact that the production will be grouped for transportation, minimizes costs, which means a small business owner can start shipping their production via UGTH with as little as one pallet of product.

“It would have been less realistic for us to have been able to implement this project, at least, implement it so soon, had there been no help from certain organizations,” Gabunia notes.

“The Georgian-British Chamber of Commerce, under the leadership of Mako Abashidze, is a very sophisticated aid for any business to open any door. Without their involvement, it would probably have taken me months or years to put this project to work.

“This engagement was very professional, and the information and help I received was exactly what my business needed. It should be emphasized that the Ambassador of Georgia to the United

Kingdom, Sophio Katsarava, whom I contacted through the Chamber, showed great support for this project. Subsequently, there also came interest from the British Council,” Gabunia says.

Moving on to talk about the uniqueness of the project, the Founder Director says: “First of all, this project is focused on several factors that are vital nowadays.

The first to note is that the UK imports about 70% of the goods sold on its local market. Traditionally, these goods are imported from neighboring European countries, as well as from further abroad.

But today, with Britain’s decision to leave the European Union, separating itself from its European counterparts, the UK aims to establish an independent relationship with everyone, and these negotiations somewhat stalled when Europe and Britain could not agree on a trade agreement. What form European cargo should take in the British state, and what codes and tariffs this cargo should pass through have not yet been established, and as we can see from the dynamics, the countries have yet to reach any particular agreement.

“This in itself will cause hundreds of trailers to stop at the border, and they may not be able to cross it for quite a while. Britain, for its part, has already begun concluding agreements with various countries; moreover, with secondtier European countries: the one with Georgia was signed back in the October 2019, and it recently signed another with Ukraine. The Ukrainian agreement is simply the first stage, as it must be ratified by both the Ukrainian state and the British Parliament. This is related to certain procedures and may take some time. Georgia has been through all this and can now export to the UK without any obstacles or delays.

“Another thing is, because of the coronavirus pandemic, e-commerce has been highly developed, which makes it possible for almost 80% of people to switch to ordering products online. This allows Georgian goods to be sold more easily.

Georgian products can be placed on high-demand online sites and through them it is possible to distribute these goods.

“Georgian businesspersons can sell their goods from Tbilisi through online sales, while we work to deliver goods to customers within two hours of purchase in London. The hub will provide full service in organizing this. What’s more, the hub does not interfere in the production price: we do not ask for percentages of their profit; we are just a service that helps them export the goods and deliver

them to the customer,” Gabunia tells us.

As mentioned above, entrepreneurs can ship as little as one pallet of their production to the UK, thanks to the Hub’s packaging-when-transferring service.

There is another advantage to start exporting right now, according to the UK-Georgia Trade Hub’s founding director, and that is timing.

“We’re trying to start shipping at the beginning of November to get the preNew Year and Christmas sales, and as you know, this is the period when the maximum expenditure of funds is made and Georgian products can be well included in this process on the British market.”

“Since the announcement of the project back in September, interest has turned out to be quite high. We’re already negotiating with 7-8 Georgian companies.”

FROM THE GEORGIAN SIDE, THE INTEREST IN THE BRITISH MARKET IS OBVIOUS. SO, WHY SHOULD THE BRITISH SIDE BE INTERESTED IN ENTERING THE GEORGIAN MARKET? From the British side, the Ministry of Foreign Trade reached out to us and inquired about the goods it could export to Georgia, looking to find out which goods are more marketable. The Georgian market is, of course, specific, but what we explained to the British side is that the Georgian market is not just Georgian: it is the Caucasus market, because once the production enters Georgia, it can enter Azerbaijan, Armenia, Turkey, and even Russia.

Today, it has become quite relevant that many British products are packaged or produced in European countries of the Second Belt. Georgia is also being considered as a contractor for British products. Under this agreement, Georgia will replace countries such as Bulgaria and Latvia on the British market.

Georgian products produced somewhere else, in these networks of grocery stores, with real Georgian products. These networks already exist, and are quite large in the range of what we can get, from water to wine.

However, Georgia is not only interesting for its famous food and drinks: Georgian designers are sparking quite some interest. There are several medium-sized shoe companies in Georgia, as well as clothing manufacturers, who want to present their products on the British market. They are likely to gain popularity in the UK because their prices are usually lower than the British ones. The quality and taste, however, are very sophisticated.

WHAT KIND OF PRODUCTION COULD BE EXPORTED TO BRITAIN FROM GEORGIA?

WHO WILL PROFIT BEST FROM PARTNERSHIP WITH THE TRADE HUB?

We have taken the existing model at work in different countries. Tracks are set up based on countries like Latvia, which has its own warehouses and a chain of shops in which goods move, and the list of these goods includes some well-known Georgian products produced in Germany, Ukraine and other countries, like tkemali sauce, tarragon lemonade, sulguni cheese and so on.

With the above-mentioned new regulations and problems related to Brexit, Georgia will be able to replace original

Mid-sized businesses that already have products that could be exported outside Georgia and just haven’t been financially strong enough to take that risk, will benefit greatly from this project. At a later stage, the state may also provide certain grants to such companies to make the first export. There is a great interest in Barambo chocolate, for example, because the product is close to European quality.

Much like Georgian-produced juices, spices, churchkhela, handmade jewelry, and many other products.

WHAT ARE YOU WORKING ON NOW? We are currently looking for partner organizations that will distribute products in the UK or promote sales, and we have a contract with one organization.

We are also making a list of products that can enter the Georgian market from the UK, and in time we will start negotiating with Georgian distribution companies for possible sales of these products. Once this happens, the business itself will agree on the prices.

Britain has obligations under agreements with other countries already in progress. Having an agreement with the United States, for example, keeps Britain from direct trade with certain countries, like Iran, but products imported into Georgia can be freely traded in that market. In other words, Georgia is considered as a gateway through which you can enter the Caucasus and other countries.

On Thursday, October 22, the UKGeorgian Trade Hub (UGTH) held a presentation of the project at the Georgia’s Innovation and Technology Agency in Tbilisi. As more small, medium and large sized businesses find out about the hub and the benefits that come with their partnership, more products are to be exported and imported, now that the trade between Georgia and Great Britain is easier than ever before.

China’s Push for Improved Connectivity Augurs Badly for Russia’s Positioning in Central Asia Continued from page 5 Specifically, Beijing is reportedly about to sign a whopping $400-billion agreement with the Iranian government, which will involveIran’s deeper integration within Beijing’s Belt and Road Initiative (BRI), with a likely emphasis on opening new trade and energy routes to/from Iran to/from China. Sea routes would matter, but more so will the corridors to China via Central Asia.

To China also goes the initiative to open this June a new multimodal transportation route from its western border to the heart of Central Asia – Uzbekistan. The corridor starts from the Chinese city of Lanzhou and runs through Kyrgyzstan towards Uzbekistan’s capital Tashkent. Construction of the China-Kyrgyzstan-Uzbekistan corridor has been postponed for decades. Kyr-

gyzstan was a major obstacle because of its financial troubles (government debt, which currently amounts to $4.7 billion, of which $1.8 billion is controlled by China), anti-Chinese sentiment, and internal political disturbances. Therefore, Beijing and Tashkent came up with an idea of a combined road-rail corridor: freight from China will be unloaded in Kyrgyzstan to be driven across the country by road to reach the Uzbek section of the railway.

The route is intended to become only the initial section of a larger new international corridor running from China to Europe without transiting Kazakhstan and Russia.

More importantly, the corridor will allow Uzbekistan to reach out to Iran, China, or to use the westward route across the Caspian Sea to link to the European market. The latter possibility is especially appealing geopoliti-

cally, making the route the fastest trail to the European mainland by using significantly improved port infrastructure in the Caspian and Black seas such as Azerbaijan’s Ailat and Baku ports, and Georgia’s Batumi and Poti terminals.

This not to say that Russia has not been paying attention. Along with, or rather behind Bishkek’s procrastination was a Russia opposing the project all along. A change in the direction of the railways and roads would be damaging for Moscow. The China-Kyrgyzstan-Uzbekistan corridor would attract up to 10-15% of the freight from the Kazakh-Russian route, hurting Russia’s transit capabilities. Furthermore, an overtly invisible but deeply ingrained fear of the expanding BRI could also motivate Russia’s calculus of purposeful torpedoing.

Along with the new trade corridors

comes China’s expansion of political contacts with Central Asia. On July 16, a “5+1” format video conference of the foreign ministers of China and the five Central Asia states was held. What might otherwise seem an inconspicuous event, the discussion surprisingly touched upon political processes: a notable shift from China’s traditional emphasis on economic matters. Other Chinese initiatives, such as lending Uzbekistan $100 million via the Beijingbacked Asian Infrastructure Investment Bank (AIIB) to support the battle with pandemic, are also notable.

These developments indicate how fluid the geopolitical order in Central Asia is, and how vulnerable Russia’s positions are there. Apart from cultural affinity (spread of the Russian language, etc.), Moscow’s grip on Central Asia is not as certain as it might seem. Alternative roads, railways and other infra-

structure could do as much harm geopolitically as a Ukraine-style crisis.

Moreover, one of the fallacies about China’s Central Asia policy analysis by outside watchers is that China is often portrayed as aiming to take over the region from the Russian orbit, which will inevitably create troubles in bilateral ties with Moscow. In fact, what the Chinese have been doing so far is to empower Central Asian states by multiplying their export/import opportunities, i.e. indirectly diminishing Russian influence and minimizing pretexts for Moscow to accuse Beijing of anything resembling undermining Russian interests in the region. *Emil Avdaliani is a non-resident fellow at the Georgian think tank, Geocase, and teaches history and international relations at Tbilisi State University and European University.

10

SOCIETY

GEORGIA TODAY

OCTOBER 23 - 29, 2020

The Tourist Treasures of the Tsalka & Ninotsminda Municipalities to date to the Bronze Age. The Poka (also pronounced Foka) St Nino Church, in the village of the same name, is home to a group of renowned productive nuns who create the best cheese you’re likely to taste in Georgia.

And their craft doesn’t stop there, with a variety of bio sweets, skin creams, and handmade souvenirs, among them cloisonné enamel and decorative candles, available in their shop: guaranteed to inspire you to dig deep and empty your pockets!

The lakes of Madatapa and Bughdasheni, at 2,100 meters above sea level, offer incredible opportunities for photographers and bird-watchers alike, with a vast year-round offering of migratory birds stopping off for a rest on their long journey.

There are birdwatching stations available, and you can contact the Javakheti Protected Areas rangers for help and advice.

Be sure to stop at the village of Gorelovka on the way (or way back) and pop

ARTICLE AND PHOTOS BY KATIE RUTH DAVIES

D

ress up warm (for even in summer, the wind in this region can be biting), bring your best camera, and prepare for some little-known and too-little explored natural and manmade wonders.

TSALKA MUNICIPALITY Tsalka (the town of), at the center of a volcanic basin and poised on the edge of the Tsalka Reservoir, which was created in the mid-20th century for energy generation, is a quiet settlement with a lot of prospects for development, under two-hours’ drive from Tbilisi. It has a multicolored history, with Germans, Greeks, Armenians, Azerbaijanis and Georgians (mostly from Adjara and Svaneti) choosing to come here to farm the fertile volcanic earth (the biggest crop being potatoes), or to herd sheep or cattle. This makes for a mixed community of Orthodox Christians and Muslims. A trip to the Tsalka Mosque (which services up to 2000 followers every Friday) is an eye-opener, having been built by Adjarans to look from the outside like a regular house, while inside it blooms with all the bright, positive colors of the religion. Traces of German heritage are best seen in Trialeti village (also sign-posted as the former Alexandershilf), where you’ll find a Lutheran church and high-garetted houses built from the early 19th to the mid-20th century, whose German style clearly merges with elements of local design.

Just outside the Tsalka town is Dashbashi Canyon: in autumn a deep multicolored splendor whose river can be reached via a steep, zig-zagging pathway in good weather, while a glass footbridge is in the making for future visits.

Don’t miss the small church perched high above the gorge, and be sure to explore the gravestones with their carved personalities (see if you can spot the seamstress and the standing horse!). The vantage point also makes for some fabulous photos of the canyon and nearby Dashbashi village.

Also worth seeing is the Beshtasheni Waterfall to the north of the Tsalka Reservoir: a far smaller canyon than Dashbashi, but just as beautiful in its own way.

Not far away is an old Greek village, though the Greeks are long gone and many houses left to ruin, and one of many pine-wooded areas you’ll see on the edges of the basin, planted by the Soviets in an attempt to balance the harsh, barren landscape.

The Tsalka Reservoir, at 1506 m above sea level, is 33.7 km², and at its deepest around 25 meters. It is said that two villages were flooded when the Soviets decided to create the reservoir, and that when the water is low, you can see the steeple of the flooded church, along with the roofs of numerous houses. Georgia’s answer to Atlantis for divers willing to brave the cold, perhaps? It’s also a great place for sports fishing and other waterbased recreational sports, though this is a project in the making, and for now the river-fed reservoir is nothing more than a beautiful landmark which from every angle is sure to make a great landscape photo.

Head south to the village of Gantiadi, take a left just before the bridge, and follow the rocky left embankment high above the river. When you get to the giant white waterpipe (impossible to miss), climb down around four meters and turn right. Stick close to the rockface and about 20 meters in you’ll see your first exposed petroglyphs, with a second set a little further along. Why the complicated directions? Because there are no signposts and no descriptions!

The petroglyphs, which were age-tested in Soviet times, are said to be around 7,000 years old. They feature deer (including a deer calf feeding from its mother), hunters with bows-and-arrows, and, strangely, camels! We can only presume that if the dating is correct, this ancient artist was inspired by the sights of traders traveling by camel on the Old Silk Road.

Alongside the sad fact of its lack of protection and sign-posting is the reality that people have more recently come and scratched their own tags and pictures into the rock: it is for you to decide what is genuine petroglyph and what is an example of modern graffiti.

The Oliangi Vauclusian Spring (also known simply as “Berta”) is a pilgrimage spot in the village of Oliangi. A small monastery sits beside the road in a walled courtyard, but that’s not what the people come to see: they want the stone pool, which is inhabited by a family of “sacred” trout which lives and breeds there, never leaving, though they have free access to the stream below. The water is also said to be curative to believers.

NINOTSMINDA MUNICIPALITY Paravani Lake is located 2,073 m above sea level and has a surface area of 37.5 km2, fed by rivers and underground springs. It is much shallower than the Tsalka Reservoir, at a maximum of 3.3 m, and in winter freezes to a depth of around half-a-meter. Like the reservoir, Paravani is also said to have a mystery structure in its depths, this one thought

into the house-museum of the Dukhobors, a Russian emigrant community of strict sectarian, pacifist Christians, of whom there are just 100 remaining in Georgia. It’s easy to spot with its blue painted wooden details and grass roof, though there are others of this style dotted throughout the village.

Inside the main building you can see the meeting hall (with two separate entrances, one for men on the left, and one for women on the right), with benches running all around and examples of the

sewing the young girls do: scarves, cushion covers and the like.

The community funds its own maintenance, so do head to the door of the central two-floor tower house and pop two Laris in the hole to help them!

WHAT ELSE TO SEE AND WHERE TO STAY? The above merely scratches the surface of the treasures this as-yet poorly developed region boasts. There are numerous ruined fortresses, lakes, mud-track villages, churches and Natural Park areas to explore, either on foot, by bike (as the landscape for the most part in both municipalities is flat), or for further reach, by 4x4. Head to the Javakheti Protected Area Visitor Center in Martuni, near the large town of Akhalkalaki for more information, or ask around in Tsalka. Be aware that due to the mixed heritage, there are many residents (particularly in Ninotsminda) who don’t speak (or even understand) Georgian.

Russian is the main go-to language here, though the government constantly strives to better integrate the settlers into Georgian culture.

If you’re looking for accommodation, word-of-mouth guest houses are available in the larger towns, and you may be able to find a local willing to put you up in a village (though be aware that neither the guest houses or homes will have heating in the bedrooms!). In Tsalka, there are a few simple hotels, signposted, which offer en-suite rooms with heating.

This is something of an unforgiving region in terms of its cold climate, chilly even in the height of summer when the wind blows, but it is among the top of Georgia’s long list of municipalities with incredible landscapes, historical monuments and the chance to really become one with nature.

ACKNOWLEDGEMENT Many thanks to CENN and the European Union’s ENPARD program for not only offering me the chance to explore this interesting area of beautiful Georgia, but also for the great work they are doing training, supporting and funding essential development projects and Local Action Groups for the betterment of local communities, by uniting local minds and hands.

SOCIETY

GEORGIA TODAY OCTOBER 23 - 29, 2020

11

Rachaaaah: 1 BLOG BY TONY HANMER

A

fter 11 years, it was time to return to my wife’s father’s homeland for a visit. We had last been to Racha as part of our honeymoon.

Then, we had no vehicle and the roads in the province were in a far worse state than their current, renovated condition.

We took public transport, taxis, or our own two sets of feet. Now, we hired the same driver who had taken us last summer to Tusheti, and with whom we had become good friends. Again, we were a party of 6 passengers in his Delica 4x4.

My wife and I met the rest of the party at the Terjola turnoff of the main Georgia highway, having traveled there in our own 4x4, and we set of together. Our first stop was to be one of Georgia’s most

beautifully decorated old churches, Nikortsminda, in the village of the same name.

Nikortsminda was built from 1010 to 1014, when Bagrat III was King of Georgia. It was then repaired in 1534, and its magnificent frescoed interior completed in the 17th century. As a result, it displays several different styles, but in great harmony. It had been on my “bucket list” of things to see in Georgia for many years, and I could finally strike it off.

The exterior of the church features many richly carved stone panels, depicting a variety of figures and scenes, again in diverse styles. I took close-ups of as many of these as I could with my long lens, then moved inside. Here, I had to switch to two wide angle lenses, but I was still free to shoot as much as I wanted, undeterred by crowds or the lady selling candles.

The paintings cover almost the entire

interior of the church, and the colors are still rich. Stories from Bible accounts and Georgian history are mingled, as they have been anyway in the centuries since the country became Orthodox in the early 300s.

One theme which caught my eye was something I have not seen often in such a setting. In a corner low down on the left-hand side after you enter the main interior, three naked women are entwined with snakes, looking most sorry for themselves. Next to them, what seems to be happening is a man being forcefully penetrated from behind by something spearlike by a devil, or the Devil himself. Opposite this nighmarish scene, on the right, are the haloes of a large group of saints. Hell and heaven… left and right. Damned, and saved.

We did not stay long as more roads and destinations awaited us, but I photographed all I could of this fascinating edifice. I was glad that it has survived the centuries of often turbulent and Muslimforced iconoclasm of Georgia’s sad history, perhaps by being less accessible than other parts of the country, like Kakheti to the east or the rest of the lowlands.

Even the country’s brother Orthodox “protector”, Russia, from the early 19th century was complicit in the whitewashing of many gloriously painted church interiors. Thankfully, some survive, like this one. Nikortsminda is well worth a visit, regardless of one’s faith, simply to see it.

This year’s greatly truncated tourism season has meant much more travel opportunities for my wife and me inside Georgia, and on this trip we also saw the diplomatic plates of a number of cars from various embassies. So, other foreigners here are also taking the opportunity to acquaint themselves better with what they cannot escape anyway. We have explored more of Kakheti, Tusheti, Khevsureti, Adjara, Guria, Svaneti and Racha so far, less encumbered by our

own guests at home. While we all bemoan the losses to Georgian tourism, our own travels can make up for some of these, enriching us as guests and our hosts at the same time.

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

State Ballet Performs Don Quixote in the Opera House Courtyard REVIEW BY KATIE RUTH DAVIES

Image by Khatia Jijeishvili

L

ast Thursday, Friday, Saturday and Sunday, the State Ballet of Georgia brought ballet back to its eager Georgian and ex-pat fans in an exciting new open-air style that it is hoped will be revived again in future, weather permitting.

The clever folks at the company, which is directed by Prima Ballerina Nina Ananiashvili, sought to overcome the financial anddemoralizingrestrictionsoftheCOVID19 era by offering an abridged version of Don Quixote in the rear courtyard of the Tbilisi Opera and Ballet State Theater.

Under a star-lit sky, green fences blocked the view of passersby to the stage, which was wonderfully illuminated and colorfully decorated with flowers, amphora and the giant windmill that has come to symbolize the story of Don Quixote: this and the subsequent dancing bringing the warmth of Spain flowing out off the stage to embrace the carefully distanced audience. Indeed, all safety measures were adhered to, following official recommendations: two-meters distance between seats, masks to be warn correctly, temperatures checked and hands disinfected

on entrance.

The plot of Don Quixote revolves around the adventures of a noble from La Mancha named Alonso Quixano, who reads so many chivalric romances that he loses his mind and decides to become a knighterrant to revive chivalry and serve his nation, under the name Don Quixote de la Mancha. He recruits a simple farmer, Sancho Panza, as his squire on his real and imaginary knightly quests. During their travels, the protagonists meet innkeepers, goat-herders, soldiers, priests, escaped convicts and scorned lovers.

Of course, following the regulations of the new coronavirus reality, a full perfor-

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mance with interval was not allowed; instead the essence of Don Quixote was crammed into an enchanting 45 minutes of swirling passion, jealousy, celebration and newly formed friendships. In fact, Don Quixote and his companion Sancho (played

by Kakha Andriadze and Irakli Jeladze, respectively) featured only briefly in the performance, which instead focused on the wandering eyes of Basilio (Philip Fedulov) and the playful Chelita/Kitri (Nutsa Chekurashvili), accompanied by the fleeting entrances of Lucia (Tata Jashi), Espada (Andrii Havryliuk), Mercedes (Vika Kikabidze) and Cupid (Ana Ksovreli), with Nino Samadashvili and Papuna Kapanadze

Journalists: Ana Dumbadze, Vazha Tavberidze, Nini Dakhundaridze, Tony Hanmer, Emil Avdaliani, Nugzar B. Ruhadze, Beka Alexishvili, Elene Dzebizashvili Photographer: Aleksei Serov

(Papuna's debut) in Kitri’s and Basilio’s roles on alternative performance nights.

A delight to be a part of and hopefully something of a new tradition, the open-air performance of Don Quixote was a joy to all seated around me; a break from the stress of the everyday and a reminder that Georgian ballet is still going strong!

“We’d like to express our gratitude to the Ambassador of Japan to Georgia H.E. Tadaharu Uehara,” Friends of the Georgian Ballet representatives said. “Also to Lexus for supporting this event. Actually Lexus’ official dealership, Lexus Tbilisi, was opened in Georgia just a couple of years ago and we are really happy to have this famous brand as a partner for such an outstanding initiative. In fact, it can be said that the Lexus brand reflects kind of similarity with Georgian ballet company’s philosophy: attention to detail for a perfect performance and seeking utmost quality in each and every aspect.”

If you are a fan of ballet, you may be interested in joining the ‘Friends of the Georgian Ballet,’ a non-profit organization founded in 2006. It aims to support the initiatives of the State Ballet of Georgia under the artistic directorship of Nina Ananiashvili, and so facilitate the process of development of ballet in Georgia.

The membership fee of FGB serves to

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provide funding for scholarships for promising young ballet students at the V. Chabukiani Choreographic School, and the participation of specially selected members of the Ballet Company in prestigious ballet competitions and masterclasses held around the world.

Since 2007, the FGB and Nina have awarded annual scholarships to selected students of the Ballet School based on talent and/or social need, while also supporting the participation of students and company dancers in international competitions and masterclasses.

1,200 GEL covers a full school year’s tuition for one student (600 GEL per semester), which is the only institution in Georgia that raises professional ballet artists.

The curriculum includes all academic subjects, as well as classical dance, Georgian dance, historical, modern and character dances, and special courses in rhythmics, acting, and stretching techniques.

Members of the FGB get invitations to special events, performances and rehearsals- an exciting behind-the-scenes look at the world of the State Ballet Company and its multi-national dancers. They also have reserved seats at each performance to guarantee they don’t miss a second of the magic.

Find out more here: friends.georgianballet@ gmail.com

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