Issue no: 1265
• SEPT. 25 - OCT. 1, 2020 • PUBLISHED WEEKLY
In this week’s issue...
FOCUS
Corona Updates
ON KEEPING UP COMMUNICATION
Beeline CEO on the communications sector in the Covid & post- Covid world
PRICE: GEL 2.50
NEWS PAGE 2
The Nobels in Georgia: Oil, Pipelines & Geopolitics. Part II
PAGE 9
NEWS PAGE 3
Carrefour Continues Support of Georgian Economy with Store-Openings in Gori & Tbilisi BUSINESS PAGE 6
The Banking Sector in Georgia (2017-2020) BUSINESS PAGE 7
CEO of Caucasus Online on the Infringement of Property Rights Case
Photo source: Entrepreneur Georgia
BUSINESS PAGE 8
Tourism Revived amid Pandemic With EU & ADA Support,
A
classA Travelers, a well-known Israeli extreme and luxury travel company, organized a jeep tour in Oni and Lailashi for Israelis, in accordance with all rules amid the pandemic. The tour was held within the framework of the European Routes of Jewish Heritage of the Council of Europe in Georgia, which is represented by the ‘Israeli House’. 25 Israelis took part in the tour, following the route created by Israeli House in collaboration with the Ministry of Education, Science, Culture and Sports, and the European Association for the Preservation and Promotion of Jewish Culture and Heritage (AEPJ)/Cultural Route certified by the Council of Europe, within the framework of the European Cultural Routes, which includes the municipalities of Oni and Tsageri. It combines Lailashi, the unique Synagogue of Oni, and the Jewish Quarter, a monument dedicated to the memory of the Holocaust and the “Georgian Schindler” (Righteous Among the Nations) Sergey Metreveli, recently erected in the center of the city by Israeli House and the City Hall of Oni Municipality. The participants of the jeep tour met the Jewish New Year - Rosh Hashanah (celebrated on September 18) in the yard of the Oni Synagogue, after which they were received by the Acting Mayor of Oni Municipality, Davit Chikvaidze. Itsik Moshe, Chairman of Israeli House, noted that Cultural heritage is not just the past, “it is
CENN Green Camp for Young Leaders & Innovators Hosts 120 Participants SOCIETY PAGE 10
Gepherrini: Find Your Style CULTURE PAGE 11 Prepared for Georgia Today Business by
Markets As of 21ͲSepͲ2020
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the greatest moral capital, without which it is difficult to build a future.” This is a new direction, in which the Council of Europe and the Ministry of Culture of Georgia are involved, and there is great support from Israel. The monument to the victims of the Holocaust in Oni, has already become a tourist attraction, and leading Israeli publications, including the Jerusalem Post, have responded to its opening as an important event. The opening ceremony of the monument was welcomed by one of the leaders of the ruling party, the Chairman of the Committee for Immigration,
Absorption and Diaspora Affairs, MK David Bitan. Former Vice Speaker of the Knesset and former Head of the Friendship Group with Georgia Hilik Bar visited Tbilisi these days, noting he is happy with the opening of the Holocaust monument in Oni because he believes that his work as the head of the friendship group had been fruitful. Itsik Moshe says the Jewish Cultural Heritage Route has become an integral part of public diplomacy and is a serious tool for promoting tourism. Continued on page 8
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2
NEWS
GEORGIA TODAY
SEPTEMBER 25 - OCTOBER 1, 2020
Georgia Marks Progress in Managing E-waste
E
xtended Producer Responsibility in managing electronic waste was discussed this week in an online conference convened by the United Nations Development Program (UNDP) and the Government of Sweden in cooperation with the Ministry of Environmental Protection and Agriculture of Georgia. Representatives of the government, civil society, international organizations and the private sector discussed the challenges and benefits associated with sustainable waste management, the legal framework needed to support EPR through all economic sectors and its practical implementation in the e-waste sector. Organized by the non-governmental organization “GEO – Georgia’s Environmental Outlook,” the online conference summarized a 16-month initiative implemented by UNDP and Sweden to help Georgia make its e-waste management greener and more sustainable. “The new Waste Management Code is one of the fundamental reforms initiated and implemented by the Government of Georgia in recent years,” said Deputy Minister of Environmental Protection and Agriculture Nino Tandilashvili. “Introducing the principle of Extended Producer Responsibility is a critical part of this change, needed to make our economy more sustainable, in line with Georgia’s international commitments under the EU-Georgia Association Agreement and the Deep and Comprehensive Free Trade Agreement.”
Extended Producer Responsibility (EPR) reduces the environmental impact of production by making manufacturers and importers responsible for the entire life-cycle of a product, from manufacture to recycling. The EPR concept has been incorporated into Georgia’s current Waste Management Code and entered into force in December 2019. “Making a success of these new policies will require a revolution in people’s thinking,” said UNDP Head Louisa Vinton. “They need to understand that waste doesn’t vanish when it’s thrown away, but instead becomes a blight on nature and a hazard to health. Electronic waste is particularly harmful, which is why UNDP has made this sector a priority in our efforts to support recycling, recovery, reuse and other pillars of the circular economy.” The UNDP and Sweden have been assisting Georgia for the last three years in preparing the legal framework to implement EPR and informing the business community and the public sector about its principles, focusing on the e-waste sector. As a result of this support, a by-law on waste electrical and electronic equipment (WEEE) was adopted and the ground was prepared for establishing Producer Responsibility Organizations (PROs) in the e-waste sector. Several public awareness campaigns have been conducted to inform citizens and businesses about the environmental and health hazards associated with unsustainable management of electronic waste.
Corona Updates BY TEAM GT
O
n September 23-24, 259 new cases of coronavirus were detected in Georgia and the number of infected people reached 4399. Marina Endeladze, representative of the Tbilisi Infectious Diseases Hospital, stated that of the 259 new cases, 164 were detected in the Adjara region, which remains a hotspot in terms of the virus spreading. "259 new cases of coronavirus have been confirmed in Georgia today. Based on the regions, these 259 cases are distributed as follows: Adjara 164, Tbilisi 34, Imereti 22 (Kutaisi 15, Tskaltubo 3, Terjola 1, Sachkhere 1, Baghdati 2), Samegrelo-Zemo Svaneti 15, Gori 1, Marneuli 1, Mtskheta 1. Also, 5 cases were imported from abroad," she said. Endeladze added that there are 18 critical patients in the country at the moment, and it is impossible to predict how their condition will progress. 26 patients have died in the country since February. In Adjara, restaurants are only allowed to operate during daytime hours and public transport has been suspended. The number of recoveries increased by 62 on Thursday, reaching a total since the outbreak of 1705. 5,390 people are in quarantine, 836 under medical examination in hospitals, and 640 in so-called Covid Hotels. "What is taking place today, especially in Adjara, is the result of increased mobility; however, we must all understand that this was predictable and we were preparing for it," Georgian Prime Minister Giorgi Gakharia stated at Thursday's government session. "We have always been absolutely open
Image source: EuroTimes
and sincere with our citizens, and we have always said that lifting restrictions would logically lead to an increase in the number of infections. Of course, what is taking place today, especially in Adjara, is the result of increased mobility; however, we must all understand that this was predictable and we were preparing for it. We have consistently stated from the very beginning that the fight against the virus consists of several stages. Of course, our first goal was containment, which meant containing the spread of the virus over time as much as possible. This had a logical explanation, whereby at the time knowledge about the virus in the world, let alone in Georgia, was minimal. Of course, resources were minimal as well, therefore, we needed to buy some time, which we did consistently and effectively. As a result, we saved the lives of many of our citizens. This was recognized internationally and is still recognized to this day. Even today,
Georgia remains a green country," the Prime Minister noted. On September 24, the Georgian government announced that from October 1, studies in classrooms will be resumed for I-VI-grade children in Tbilisi, Rustavi, Zugdidi and Kutaisi, while in Poti and Gori, children of all grades will be able to attend lessons. In addition, studies in universities and vocational schools in Tbilisi, Kutaisi, Zugdidi and Rustavi will continue remotely from October 1. Schooling in the cities of Tbilisi, Gori, Rustavi, Kutaisi, Zugdidi, Poti, Batumi and Kobuleti was transferred to an online regime from September 15, with actual in-school classes postponed until October 1 following a rapid increase in new coronavirus cases. It is still unknown when children in the Adjara region will be able to return to their classrooms, and the government held off from naming a specific date.
NEWS
GEORGIA TODAY
SEPTEMBER 25 - OCTOBER 1, 2020
3
The Nobels in Georgia: Oil, Pipelines & Geopolitics. Part II BY EMIL AVDALIANI
I
n the 1870s, Russian industrialists Bunge and Palashkovsky began constructing the Baku-AstrakhanVolga railway. Since the project was financially highly burdensome and the work was going quite slowly, Bunge and Palashkovsky contacted the French branch of the Rothschild family, which had been involved in the railway business for decades (the construction of the first railways in Europe were related to the Rothschild name). The family responded positively. Sensing the potential of these new sources of kerosene and oil, it was in the Rothschilds’ immediate interest to connect Baku to Batumi and use the latter as an extensive export route. The Nobels, too, agreed to the idea. Ludwig wrote from Baku to his brothers Alfred and Robert in Petersburg: “From all the routes available for oil transportation from Baku, I recommend choosing the one through Georgia because of the friendship and mutual loyalty that has existed between the Georgians and Azeris for centuries. For us, foreigners, this factor is of considerable importance. Since all other routes involve much more danger, and because there are no such favorable conditions elsewhere except for both Baku and Tbilisi, I'm sure that we should choose exactly this route.” Finally, it was agreed to export hydrocarbons to Europe according to his plan, on the Baku-TiflisBatumi railway, for the completion of which the necessary 10 million US dollars were provided by the Rothschilds, who also distributed small credits for the creation of oil refineries in Batumi. The Nobels were well aware they would not be able to cope with Europe’s biggest financial power. The Rothschilds’ interests were primarily in banking and investment, and less so in overall management. With the Nobels against such speculations, a clash in the two business
ideologies was inevitable. The situation came to a head in 1881, when, after the assassination of Russian Emperor Alexander II, an imperial decree was issued prohibiting Jews from buying or renting any land in Russia. However, the law did not hinder the Rothschilds from carrying out their plans, and in 1883, the BakuTiflis Railway was opened. The Rothschilds also established the ‘Societé Commerciale et Industrielle de Naphte Caspienne et de la Mer Noire,’ better known by its Russian abbreviation – БНИТО (BNITO) for more effective competition with the Nobels. With BNITO’s successes and its establishment as a number two on the Russian oil market, Batumi was transformed into a veritable business center. British ships converted into tankers transported kerosene and oil to Fiume and Marseille. The Rothschilds also owned the biggest factory in Batumi producing cases for oil and kerosene transportation. Their business activities were partly hindered by the imperial revocation of Batumi’s “porto franco” status in 1886. The city once again became a military port. The Nobels avoided engaging in a lifeor-death war with the Rothschilds. Alfred (living at the time in Paris) was well aware that his brothers could end up on the losing side, and on his initiative, a conference was convened in May 1884, in Paris, where the two families agreed to cooperate on vital business issues. It was in the Rothschilds’ direct interest to ship kerosene into Europe, which for decades had been a monopoly of the Rockfellers’ ‘Standard Oil’. This coincided with the Nobels’ interests too; therefore, their support for the enterprise was guaranteed. Ludwig also proposed selling part of the Branobel company shares to Rothschilds in order to buy with the received money ‘Batumi’s Oil and Trade Company’ from the Russian oil industrialists Bunge and Palashkovsky for 1.5 million Rubles. Ludwig also intended to build a new factory for the production of oil and kerosene trans-
Oil freight train in Baku. Image source: picryl.com
portation cases, and to lay a pipeline through the Surami Pass. Although the Nobels were quite confident in the success of the proposition, the Rothschilds refused. The ever ubiquitous Rockfellers, sensing disagreements between their two main rivals, entered the scene with the goal to further widen the gap existing between them by negotiating on the one hand with the Nobels, and maintaining close contacts with the Rothschilds on the other. To effectively protect his company, Ludwig signed new contracts and reinforced his positions in Black Sea trade by bringing in a 286-feet-long tanker “Свет” (The Light) meant to ship 17,000 tons of kerosene to England. It was a huge blow to the Rockfellers’ Standard Oil’s positions. The company, which controlled 90% of America’s oil and kerosene export, considered England’s market as its monopoly. The Nobels’ product eventually took on 30% of England’s oil market, progress which was
stunning considering the fact that several years before the percentage was only 4%. It was also quite apparent for the Nobels that in order to successfully compete with such giant oil companies, it was vital to increase oil production output. Initially, additional transport cars were used, and several new refineries were built in Batumi, but it still could not provide the necessary output level. That is how the idea of constructing a pipeline came to the limelight. The Surami Pass constituted the main hindrance for the pipeline. In 1883, Ludwig, during the works on the Baku-Tiflis Railway, offered to build the local authorities a pipeline. The authorities refused him the concession. The reason: the tsarist government feared the increased oil output and effective competition with the Rockfellers would make the Nobels put a higher price on still very cheap Baku oil. Ludwig founded in Baku the first syndicate and demanded to trans-
port the oil through the four-kilometerwide Surami Pass. The Russian chemist Mendeleev too was an ardent proponent of the project. Eventually, the construction began, but was only completed by 1903, constituting 835 kms of pipeline with 19 pumping stations. The construction was largely done by hand. Pipelines were connected with threaded clutches, and anticorrosive isolation was used for better protection. A telephone connection was also established long the main pipeline. Across the River Kura (Mtkvari), the pipeline was suspended on one of the railways’ bridges. Having the overall capacity of up to 900,000 tons of hydrocarbons per year, the construction of the pipeline consumed 400 tons of Alfred’s dynamite with the overall cost of the project reaching 12 million Rubles. The Nobels built a large oil terminal in Batumi. Some of the tanks created by them are still visible today after nearly 120 years. With many residential houses built by them for the managerial staff, the main building served also as a headquarters of the consulate of the United Kingdom of Sweden and Norway in the Caucasus. One document dated June 5 1897, held in the National Archives of Georgia, attests to the approval by the local authorities of Gustav August Hager’s appointment as Vice-Consul of Sweden-Norway. Located on Leselidze Street in Batumi, the consulate was transformed in 2007 into the Nobel Brothers Batumi Technological Museum. Another interesting historical document is about the resolution of the Nobel Oil Society to open a third-grade private school in the “Black Town” (Baku) in 1886, as well as about the establishment of five scholarships in the name of Ludwig Nobel at the Baku Real School from 1890 onwards. The Nobels continued their activities and were constantly on business trips to Georgia until the end of the Tsarist rule in 1917. Emil Avdaliani is a non-resident fellow at GeoCase (Twitter - @emilavdaliani)
Let Them Live Out Their Lives: Dog Shelter for Sale, for Free
BY NINI DAKHUNDARIDZE
A
s its ninth month nears the end, it can be said with full confidence that 2020 has not been the best year; with the pandemic, climate change and whatnot, it always seems to have ever worse things hidden up its sleeves. More sad news for Georgian society came on September 8, when Tamaz Elizbarashvili announced that he would be giving away the dog shelter under his ownership, which houses over 250 dogs and four brown bears. The property, covering 2,500 square meters along with the buildings on the shelter’s territory, is worth 1,350,000 GEL. The question on everyone’s mind was what would make Mr Elizbarashvili give away his beloved dog shelter? I addressed the shelter owner himself with that question, but before we move on to his reply, let’s take a look at the background. The Georgian businessman founded the dog shelter back in 2004 and has since, with no help from the state or private sector, welcomed stray, abandoned, and sick dogs into his shelter, providing them food and healthcare. So why would this man decide to give
up the shelter he has so willingly supporting for 16 years? “The coronavirus pandemic hit us all. Some of my businesses are struggling, and I’m finding it nearly impossible to support the shelter. It’s not just the dog food and medicine. We’ve got staff there, and 250 dogs. That’s not a small number. More and more dogs might need to come every day. We’ve got the veterinary clinic, too. So we have staff that cannot invest their time and energy there unless they are paid. The government and business sector are not helpful, and the reality is that I can no longer support it alone. So, I decided to give it away, as long as the interested party agrees to look after the animals,” Elizbarashvili told GEORGIA TODAY. He went on to outline his only demand on whoever is interested in taking his “give-away:” they have to sign a document that obligates them for 10 years to support the animals already living on site. He noted that the dogs currently living in the dog shelter will likely pass within the next ten years from age anyway. He further revealed to us that the cost of supporting the shelter each month can sometimes run up to 20,000 GEL, so it’s “not exactly a good deal for businessmen thinking of taking up the offer just for the sake of the property. It has
to be for sympathy for other living beings.” This demand worries the Georgian Society for the Protection and Safety of Animals (GSPSA). “How can we control this?” Teimuraz Tsikoridze of the GSPSA told us. “I mean, someone might sign and say they are going to take care of the animals for 10 years, and then the next thing we hear a dozen dogs have died at the shelter, then over the course of the next two years all of them die of some ‘disease.’ I mean, how does one control it?” As it has been a while since the Elizbarashvili Dog Shelter made the giveaway announcement, GEORGIA TODAY
asked Mr Elizbarashvili if any takers had shown up either from the state or the private sector. “There have been calls from both sectors. Some of them even went as far as to initiate negotiations: they wanted to get me to agree to them feeding the dogs for two years and then euthanizing them. The nerve!” Elizbarashvili told us. Tsikoridze sees a way of saving the shelter in foreigner donors, saying that foreign organizations and individuals would be the best fit to help out the dog shelter. “Georgian society has proven itself incapable of standing up for animals,” said the GSPSA representative. Fortunately, in this light, Mr Elizbarashvili had some good news for us. “So, no-one that you could trust with the shelter has contacted you yet?” I asked Mr Elizbarashvili over the phone. “No,” he replied. “Only those lusting after the property have reached out to me. Of course, I could not give it to them. The shelter is safe for this month, though, as thousands of Georgians have made a contribution to our bank account. Their donations did not cover the costs fully, but every Tetri is important for us, and we appreciate everyone’s generosity. We just hope that this spirit does not die out, and society continues to support us in the following months, at least until
the business sector is fully recovered,” said the shelter owner, adding, with regret in his voice, “But people’s interest fades; it’s human nature to soon forget what it was that we cared so much about.” His words hit me: the realization of what our flawed memory costs us. What will happen to the 250+ dogs, four bears and dozens of puppies if people switch their attention in October? 2020 has been a year of sad news, but it is also a year of realizations. It has been the mirror that shows us where we stand as a society. In this mercantile world, a businessman thinking about how to make a profit in situations like the one above is hailed as “realistic” and “smart”. But doesn’t it sometimes go too far? In a country where numerous people have serious problems surviving the day-to-day, the fact there are countless stray animals and no functioning law protecting them is something that, for many, is low-down on the list of priorities. But ahead of World Animal Day on October 4th, which will be respected with events in Tbilisi this year, doesn’t it just sound like an excuse? Our lack of empathy, flawed memory and shifting focus can cost these good-natured beings their home and lives. Think about it, and maybe consider donating to the Tamaz Elizbarashvili Dog Shelter.
4
POLITICS
GEORGIA TODAY
SEPTEMBER 25 - OCTOBER 1, 2020
Regional Interconnections: More Opportunities for Georgia’s Security & Prosperity. Part I BY VICTOR KIPIANI, GEOCASE CHAIR
W
hen discussing modern international relations, we must be moderate in our conclusions, since the processes that create systems are still developing. Taking this outlook into consideration, we believe that several new aspects of a rearrangement of the balance of power are already visible on the international stage, and that enough practical material can be gathered for forecast and evaluation. I think there can no longer be any doubt that the attempts to re-define the global order that began shortly after the end of the Cold War, which were based on several commonly held principles and standards, are nowadays practically complete. However, it is important to note that this process has proven to be quite productive, as it has significantly strengthened the positive results of the collapse of Communism and has offered the world a new wave of development. At the same time, in both old and new democracies, the trajectory of post-Cold War development has proven to be insufficient for the completion of civil or social models, and has not been able to ensure the sustainable long-term development that would have helped to avoid or effectively respond to various crises.
CURRENT TRENDS IN INTERNATIONAL RELATIONS Both leftist and rightist radicals, as well as populists, have skilfully taken advantage of the said difficulties. By brandishing slogans which appeal to the masses, they methodologically began to shake the very foundations of statehood and civil origins, and preferred to discuss
issues of ‘no rules’ on the international stage. As a result, we have ended up with a reality in which the old norms and standards of international relations are quite useless, whereas a healthy alternative has not yet emerged. In addition to intensifying various processes, the coronavirus pandemic has increased the urgency of the need to search for solutions. It has become vital, in every country, to quickly take various political, economic and social steps that can simplify acute domestic confrontations and ensure sufficient peace and breathing space in the medium term to allow national and global processes to be moved to the long-term development stage. In general, seen through the prism of the balance of power, the global system only acknowledges a few basic models. At various stages of history, the balance that has emerged has sometimes been multipolar, sometimes bipolar, very seldom ‘2+’, and even more seldom unipolar or hegemonic. Where, in previous centuries, global hegemony was still possible, it has nowadays become impossible in practice for several reasons, the main one being the high degree of interdependence and interconnection between states. But the question of a balance of power is not only theoretical: it is also very practical, since it defines this or the other rules of behaviour in foreign relations, especially for a country like ours in such a complex neighborhood. The complexity of the formation of our new world also differs according to the pandemic and post-pandemic factors, which encourage the transformation of old ‘centres of power’ and the emergence of new ones. Another unavoidable result of this process is the multiplication of multifaceted and multilateral formats of interest in international relations, especially due to their regionalization. Accordingly, we
Image source: transnational.live
end up with overlapping or conflicting interests in a concrete region which is defined by its specific characteristics, the national and international peculiarities of various states, and the influence of the balance of power on the ‘big picture’. Aside from several basic features, the existing differences between regions are very prominent. For example, the Middle East has its own specificities, and the power play in the South China Sea different ones. Equally different are the attitudes of the world’s main actors towards NATO’s expansion into the Black
Sea region; and the nature of interests in the Mediterranean area. At the same time, every single regional ‘center of power’, when considered separately, logically has an impact on the formation of the global balance of power. Essentially, the system of international relations is being criss-crossed in a new way by regional interests whose unity is not stable or systemic everywhere, and is in some cases only based on temporary or situational partnerships. Equally noteworthy is the fact that the solidity or suitability of such regional unity mostly depends on the quality of the
interest of key participants such as global or regional powers in the unity itself. We must also consider the degree to which different countries are able (politically, militarily or economically) to project their interests across their region. The prospect of increased Western activity in the Black Sea region is also linked to the coincidence between interests and capabilities, as well as to Turkey’s growing Mediterranean ambitions or, if you like, the materialization of Russian and American influences over Syria. To be continued in next week’s GT.
Parliament 101: An Outsiders Guide to the Coming Elections BY MICHAEL GODWIN
E
ven the most aloof visitor to Georgia can’t escape the mass of posters and billboards emblazoned with political candidates and party slogans. The politicking season is in full swing, and campaigning buzzwords are in the air. But for many observers, from the casual foreign backpacker intending on a long stay, to the young Georgian delving into the political world, the elections are far from a simple science. This is a look at the situation as it is, what stands to happen, and the implication on a broader scale. As a unicameral parliamentary republic, Georgia will be conducting its tenth election cycle on the last day of October. Georgian Dream, the party with the majority of seats in the 150-seat parliament, stands to maintain its hold for a third term. This is something that hasn’t been done before in modern Georgian history. In response, many of the opposition parties have formed an alliance; yet another first, as generally parties stick to their own. In light of the overwhelming domination Georgian Dream has, some have banded together to try to take them on. However, this election is unique for more than just the simple politics. It also comes with some new rules. Require-
Image source: vestnikkavkaza.net
ments for who can and cannot run for office have changed. Now, if a party vying for dominance can’t muster a minimum of 40% of the vote, it can’t form the necessary government body required. With this, it adds another layer of complexity to an already intricate system. Another layer is the recent demonstrations and unsettlement with the standing government. 2019 saw widespread unrest that shifted a portion of the people’s outlook. This outlook is a serious con-
cern for the ruling party as it has not put them in the best light. Despite this, the government and its handling of the coronavirus pandemic has left the people more satisfied. The response and containment of the pandemic and those affected has even drawn the praise of several western European leaders. Then there’s the Saakashvili factor. The opposing coalition of parties have pushed the former president into their pick for prime minister. Since he’s been in exile
in Ukraine, holding various offices there, he’s repeatedly vowed to return to Georgia. However, this comes with its own price. He’s been placed on a blacklist and faces arrest if he returns. Despite this, his promised homecoming is steeped in controversy and stirs a mix of emotions among the populace. The ruling party has used this as ammunition against the opposition, as the former president no longer holds Georgian citizenship. As a result, he’s not legally allowed to run for or hold elected office, or even a government job. In light of all this it may seem like a concentrated effort by the opposition to be united against the ruling party. However, the opposition coalition could be less allied than it seems. Aside from the varied emotions regarding the prime minister’s post, many simply won’t accept the Saakashvili idea. Plans for the reformation of the economic, judicial, and foreign policy strategies also split the opposition parties. It’s one thing to win an election, but another to actually begin implementing the plans you ran on. This is amplified in such a varied parliamentary community such as Georgia’s. The government has promised that the pandemic won’t affect the elections, but it’s difficult to see this being the case. Since multiple facets of daily life have already changed due to the virus, the idea of a large crowd gathering at polling places could act as a deterrent to the people. On the other hand, the govern-
ment, as well as foreign officials, have made it abundantly clear that safety be an important component of the elections. To support this, special police units have been organized. Once the ballots are counted, the next piece of the puzzle is the popular response. The visibility from the EU will give the people a large stage to act on should there be disagreement with the fairness of the results. Even US Ambassador to Georgia, Kelly Degnan, has spoken up regarding the election and the procedures surrounding it, demanding that it be carried out fairly and in a free environment. As Georgia continues its transfer to a fully proportional electoral system in 2024 for its parliament, eyes will be on the major players of Georgian Dream, as well as the opposition parties. Additionally, it will become increasingly interesting with regards to the EU and Russian relations. As with almost all modern elections, there are already whispers going round about the potential for unlawful foreign influence and backroom deals between the parties and their constituencies. Undoubtably, the aftermath of the elections will be an eventful time, but as it should be with any democratic nation, the people have the final say. As for an outsider’s perspective, regardless of which way the election goes, it will surely make Georgia even more of an interesting place to be.
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BUSINESS
GEORGIA TODAY
SEPTEMBER 25 - OCTOBER 1, 2020
Carrefour Continues Support of Georgian Economy with Store-Openings in Gori & Tbilisi
C
arrefour, operated by Majid Al Futtaim in Georgia, is celebrating the opening of two new stores in the country. The new outlets are located in the Shida Kartli region of the historical city of Gori and in the capital,
Tbilisi. The outlets officially welcomed customers with opening ceremonies, attended by a number of local government representatives, to commemorate the additional shopping experiences and employment opportunities now available to Gori and Tbilisi residents. Coinciding
with the brand’s eighth anniversary in Georgia, the new outlets will also join Carrefour stores across the country in offering customers countless awards, gifts, and surprises, as inspired by the number eight’s resemblance to the infinity symbol. Customers across Georgia are invited to join the anniversary celebrations by using “MyCLUB,” Carrefour’s loyalty program, to be in the running to win a variety of exclusive prizes. They are also encouraged to keep a close eye on their receipts, which they can later use to win a slew of prizes. Additionally, a trial of luck at the Wheel of Fortune will allow lucky customers, throughout the celebration period, to win back 80% of their purchased products through MyCLUB points. As the Gori and Tbilisi stores join Georgia’s extensive network of Carrefour stores, the brand’s expansion underscores its commitment to increasing Georgians’ accessibility to quality products at the best prices. Most importantly, the opening of the new stores will see Carrefour maintain its position as one of the largest job creators in the local market, with the brand’s many outlets generating employment for over 2,000 locals. Christophe Orcet, Country Manager of Carrefour Georgia at Majid Al Futtaim Retail, noted: “I am proud of what we have achieved over the last eight years. In addition to creating unique shopping experiences for our customers, we are especially pleased with our valuable partnerships with local manufacturers and suppliers. We are delighted with the initial results and customer engagement figures. We wish to be as close as possible to our customers, to satisfy their needs, offer the best value and continue to create great moments for everyone, every day.” Providing its customers with more access to fresh and healthy products at affordable prices has been and remains
one of the main priorities of Carrefour. The Tbilisi store is located at Didi Dighomi, Pharnavaz Mephe Str. 12, and offers customers a quick and convenient store option. Meanwhile, the Gori store, located at Amilakhvari Street N30, will offer a wide variety of high-quality food prod-
ucts and household goods, including exclusive French products made by Carrefour. The latest openings raise the total number of the brand’s outlets in Georgia to 26, and will serve customers every day from 9:00 AM to 10:00 PM.
Address: 24 Zandukeli T: 595 50 39 30 facebook.com/thaiboxtbilisi
THE NEW CRAFT OF TASTE
BUSINESS
GEORGIA TODAY
SEPTEMBER 25 - OCTOBER 1, 2020
7
The Banking Sector in Georgia (2017-2020)
B
y the end of the second quarter of 2020, loans and deposits, expressed as a percentage of GDP, increased by 3.6 and 4.9 percentage points, respectively, compared to the beginning of the year. By the end of the second quarter of 2020, bank assets, expressed as a percentage of GDP, increased to 98.4%. By the end of July of 2020, the volume of loans was increased by 19%, compared to July of 2019. The average interest rates on loans in January-July of 2020 denominated in national currencies were 0.9 percentage points higher than in January-July of 2019, while the average interest rates on loans denominated in foreign currencies were 0.8 percentage points less. By the end of July of 2020, the volume of deposits in Georgia was increased by 21%, compared to July of 2019. The average interest rates on deposits in January-July of 2020 denominated in national currencies were 1.2 percentage points higher than in January-July of 2019, while the average interest rates on deposits denominated in foreign currencies were 0.4 percentage points less. In January-July of 2020 trade had the highest share of total loans with 29.5%. In January-July of 2020, share of construction in total loans increased by 3.6 percentage points, while share of financial intermediation decreased by 8.2 percentage points, compared to the corresponding period of 2019. According to the World Bank, Georgia’s ratio of non-performing loans to total loans decreased in 2019, compared to 2018, by 0.8 percentage points and dropped to 1.9%.
By the end of July of 2020 the rates of dollarization on loans and deposits were increased by 0.3 and 8 percentage points, compared to the corresponding period of 2019. The rates rose to 56.9% and 61.3%, respectively. Bank assets, loans and deposits, expressed as a percentage of GDP, had an overall upward trend since the first quarter of 2017. Bank assets, expressed as a percentage of GDP, experienced a rise by 3.9 percentage points by the end of the second quarter of 2020, compared to the beginning of the year. As a result, at the end of the second quarter of 2020 it reached 98.4%. Loans, expressed as a percentage of GDP, increased by 3.6 percentage points by the end of the second quarter of 2020, compared to the beginning of the year, reaching 67.4%. Deposits, expressed as a percentage of GDP, increased by 5 percentage points by the end of the second quarter of 2020, compared to the beginning of the year, reaching 57.4%. By the end of July of 2020, the volume of loans (excluding interbank loans) in
Georgia was increased by 19%, compared to July of 2019 and amounted to 35.2 bln GEL. Loans denominated in foreign currency were increased by 20%, while loans denominated in local currency were increased by 18%. During January-July of 2020, the significant increase was recorded by the end of March of 2020, when the volume of loans was 31% higher compared to the end of March of 2019. In this period loans denominated in foreign currency were increased by 36%, while loans denominated in national currency were increased by 25%. In the period from January of 2017 to July of 2020 interest rates on loans denominated in national currency were characterized with more volatility than loans denominated in foreign currency. In July of 2020 interest rates on loans denominated in national currency were increased by 1.5 percentage points, compared to the corresponding period of 2019, and reached 15.7%, while interest rates on loans denominated in foreign currency were decreased by 0.5 percentage point and dropped to 6.6%. According to the data for July of 2020, the difference between interest rates on loans denominated in national and foreign currencies amounted to 9.1 percentage points, which is 2 percentage points higher than in the corresponding period of 2019. Moreover, the average interest rate on loans denominated in national currency from January of 2020 to July of 2020 was 16.2%, while the average interest rate on loans denominated in foreign currency was equal to 6.5%. In contrast, the average interest rates for the corresponding period in 2019 were 15.3% and 7.3%, respectively.
By the end of July of 2020, the volume of deposits in Georgia was increased by 21%, compared to the corresponding period of 2019 and amounted to 31.4 bln. GEL. By this period deposits denominated in foreign currency were increased by 16%, while deposits denominated in local currency were increased by 29%. The significant increase was recorded by the end of March of 2020, when the volume of deposits was 24% higher than in March of 2019. By this period deposits denominated in foreign currency were increased by 32%, while deposits denominated in national currency were increased by 10%. In the period from January of 2017 to July of 2020 interest rates on deposits denominated in national currency were characterized with more volatility than deposits denominated in foreign currency. In July of 2020 interest rates on deposits denominated in national currency were 1.2 percentage points higher, compared to the corresponding period of 2019, and reached 8.7%, while interest rates on loans denominated in foreign currency were 0.4 percentage point lower and dropped to 2.5%. According to data for July of 2020, the difference between interest rates on deposits denominated in foreign and national currencies amounted to 6.2 percentage points, which is 1.7 percentage points higher than in the corresponding period of 2019. Moreover, the average interest rate on deposits denominated in national currency in January-July of 2020 was 9.8%, while the average interest rate on deposits denominated in foreign currency was equal to 2.6%. In comparison, in January-July of 2019 the figures were 7.4% and 2.9%,
respectively. In the period of January-July of 2020 the structure of loans by economic activity changed moderately compared to January-July of 2019. Trade had the highest share of loans in January-July of 2020 of 29.5%, which is 4.2 percentage points higher than in the corresponding period of 2019. Industry had the second highest share of loans in January-July of 2020 of 25.9%, and it is worth noting that its share decreased by 0.4 percentage points compared to the corresponding period of 2019. Construction in January-July of 2020 increased by 3.6 percentage points, compared to the corresponding period of 2019 and reached 14.2%. Financial Intermediation loans, on the other hand, decreased by 8.2 percentage points, reaching 7.5%. It is important to analyze the ratio of non-performing loans to total gross loans in Georgia and compare the figures to other states, especially post-Soviet. According to World Bank Open Data, Georgia’s ratio of non-performing loans to total gross loans decreased by 2019 by 0.8 percentage points compared to 2018 and dropped to 1.9%. To compare, another Eastern Partnership country, Belarus’s ratio dropped by 2019 by 0.4 percentage points, compared to 2018. As a result, in 2019 Belarus recorded the ratio of 4.6%. Moreover, other post-Soviet states like Uzbekistan, Kyrgyz Republic and Latvia were not characterized with significant fluctiations in the period of 2018-2019. Their correspong ratios in 2019 were 1.5%, 7.7% and 5%. Basic Economic Indicators
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BUSINESS
GEORGIA TODAY
SEPTEMBER 25 - OCTOBER 1, 2020
CEO of Caucasus Online on the Infringement of Property Rights Case
O
ur business partners are concerned when the state exerts pressure in this manner – Revaz Kopaladze “I am confident the Constitutional Court will decide in favor of Caucasus Online” – Revaz Kopaladze In 2019, the company NEQSOL Holding purchased a 49% stake in the telecommunication firm Caucasus Online for $61 million. There followed a sharp reaction from the Georgian National Communications Commission (GNCC) and the Georgian government. The GNCC stated that the deal was not agreed with the commission in advance, therefore requiring punitive actions against Caucasus Online. It demanded that the company reverse the transaction and restore the pre-sale status quo. GNCC and the Georgian government decided to resolve the issue through legislation changes, bringing up the package of changes to the Parliament. Many experts, politicians and foreign diplomats identified the dispute between GNCC and Caucasus Online as the real reason behind the proposed changes. According to the experts, the law was exclusively changed for one company, despite opposition from all local and foreign businesspeople operating in the field of communications. The government forced the changes through and got the Parliament to adopt the bill despite strong arguments and hard discussions. The new law is viewed by constitutionalists as unconstitutional and deeply damaging for the business environment. It has caused outrage at the international level. As for Caucasus Online, the company plans to submit its case to the Constitutional Court within the next few days. Ipress spoke to the CEO of Caucasus Online, Revaz Kopaladze, about the events surrounding the company.
THE CASE OF CAUCASUS ONLINE AND THE AMENDMENTS TO THE LAW ON ELECTRONIC COMMUNICATIONS HAVE ATTRACTED THE ATTENTION OF INTERNATIONAL EXPERTS. INFLUENTIAL DIPLOMATS SUCH AS MATTHEW BRYZA AND KURT WALKER HAVE PUBLICLY STATED THAT THE GOVERNMENT IS EXERTING PRESSURE ON BUSINESS. HAS BUSINESS BEEN VISIBLY AFFECTED BY THE STATE ACTIONS IN THE SHAPE OF FINANCIAL PENALTIES AND THE SUBSEQUENT LEGISLATIVE CHANGES?
relating to any consultations performed during the process of preparing the law simply do not exist, as no such consultations ever took place. Most importantly, this inadequate piece of legislation is incompatible with the Georgian Constitution and international legal standards. The law affords unlimited powers to the GNCC with regards to intervening in the business activities of private entities and limiting their entrepreneurial freedoms. The law blatantly states that the special manager who may be appointed by the GNCC will be granted the combined powers of virtually everyone, from directors to the board of directors. It is particularly important to note that the courts will have no advance control over this process. For that reason, I find it difficult to believe that the Constitutional Court will not rule in our favor and confirm that this piece of legislation, which was ‘discussed’ late during the night and rushed through, is unconstitutional.
The main enemy of business is a lack of clarity – not knowing what will happen tomorrow. As you know, GNCC has been planning to revoke our authorization for almost a year now and has been threatening to appoint a special manager for the past few months. Although neither one of these actions has been implemented at this stage, the company’s reputation and financial sustainability have been severely damaged. Caucasus Online is the largest wholesale internet provider in Georgia and the wider region. Our clients are delivering services to tens of millions of customers on the retail market. Naturally, our business partners are scared when the state exerts pressure in this manner. They start looking for alternative service providers to feel more secure, thereby reducing our company’s revenues and weakening our entrepreneurial activities. Moreover, it is impossible to enter into long-term agreements in the current climate, at a time when our business model is built precisely on such long-term relationships. The company should currently be thinking about its future development plans, such as becoming Georgia’s digital hub and expanding its geographic presence. Instead, we must fight for survival, which damages not only us, but the country’s competitiveness. I must also address the main problem
facing the company. I can confidently say that Caucasus Online employs the best professionals in this field not only in Georgia, but the whole region. They practically shaped this company from day one and are proud of the service they provide the population with. These people have been hearing for more than a year that the company may cease to exist. It is not difficult to imagine the stress and uncertainty that they feel.
A FEW DAYS AGO, BRITISH MINISTER WENDY MORTON STATED THAT SHE IS FAMILIAR WITH THE CAUCASUS ONLINE CASE AND WILL CONTINUE OBSERVING THE DEVELOPMENTS WITH INTEREST. WHY DO YOU THINK THIS ISSUE HAS BECOME SO IMPORTANT FOR SUCH HIGH-LEVEL OFFICIALS? The right to property and freedom of entrepreneurship are organically interconnected core values that apply to developed countries and are the only way for Georgia to achieve success. Countries and people who support Georgia are therefore reacting sharply to the campaign that is being conducted against Caucasus Online. British organizations are implementing grant programs in Georgia that aim to
improve the investment environment in the country. To quote a government minister, “the UK-based fund GGF is oriented towards reforming the public management systems in Georgia and improving the quality of work performed by the Parliament. Our goal is to rectify institutional faults and fight corruption. GGF supports the dialogue between the government and investors for the purpose of improving the business environment.” It was inevitable that diplomats would take note of the Caucasus Online case.
THROUGH THESE LEGISLATIVE CHANGES, THE GOVERNMENT HAS LEGALIZED THE INSTITUTION OF A SPECIAL MANAGER. ARE YOU NOW EXPECTING SUCH A FIGURE TO BE APPOINTED IN YOUR COMPANY, AND WHAT WOULD IT MEAN FOR YOU? ARE THERE ANY SIMILAR CONTROL MECHANISMS IN OTHER COUNTRIES?
We are in the process of preparing the claim and will be lodging it within the next few days. Regarding our chances, I am confident that the Constitutional Court will decide in our favor. What may be immediately evident is the fact that the way in which this new law amendment was rushed through undoubtedly affected its quality. The law has no substance and lacks numerous important documents - studies, and assessments. You can see for yourself that documents
The GNCC demanded that Caucasus Online reverse the sale of shares by one of its beneficiary owners. However, it is impossible for the company to reverse the purchase of third-party shares. It is also clear that a special manager would not be able to do so either. Therefore, if such a figure is indeed appointed, it would mean that the Communications Commission is unlawfully appropriating the ownership rights to the company. Such a move would increase pressure from the international community and significantly damage the investment environment. I therefore hope that such an appointment does not actually come to pass. With regards to international examples, you probably know that a well-known consulting firm is currently implementing a study for us, aiming to establish any precedents for the existence of the institution of a special manager in the European Union. The findings of this research are due in a few days, so let us not get ahead of the events.
pany head Asaf Artsi became interested in Georgia at the Israel-Business Forum held in Tbilisi by the Israel-Georgia Chamber of Business. The company owns extreme jeeps, rally cars, helicopters and other special equipment. It has already invested more than
$1 million and can serve several dozen tourists at once. The Israeli company develops several leading types of extreme tourism in Georgia, including jeep tours, mountaineering, diving, parachuting, paragliding, mountain biking, and hunting.
YOUR COMPANY HAS ALREADY ANNOUNCED THAT IT INTENDS TO LODGE AN APPEAL IN THE CONSTITUTIONAL COURT. WHEN WILL THIS HAPPEN, AND HOW WOULD YOU ASSESS YOUR CHANCES OF SUCCESS?
Tourism Revived amid Pandemic
Despite the delays caused by the coronavirus, Grigol Mikeladze, a member of the Georgian Parliament's Friendship Group with the Knesset of Israel, also welcomed the arrival of the first tourist stream from Israel and the tour of the Jewish cultural heritage. He highlighted that this is a serious incentive for the Georgian tourism sector.
ABOUT ACLASSA TRAVELERS Continued from page 1 It should be noted that the flow of tourists from Israel to Georgia has been growing for years. In 2019, the number of Israeli tourists exceeded 200 thousand. The Israel-Georgia Chamber of Business is actively working to promote Georgia's tourism potential in Israel. At the initiative of the organization, a number of programs about Georgia have been prepared for Israeli television in recent years. Levan Kharatishvili, the Deputy Minister of Education, Science, Culture and Sports of Georgia, also responded to the
Israeli Jeep tour. "It is welcome that during the pandemic, with the support of the Ministry, Israeli House, as the official representative of the European Route of Jewish Heritage in Georgia, continues to work actively to develop the cultural route and promote local tourism,” Kharatishvili said. “As part of the European Route of Jewish Heritage, a jeep tour was organized in the direction of Oni-Lailashi by Israeli House. Guests from Israel took part in the tour, visiting the Jewish heritage sites in compliance with all established regulations.”
The Israeli company AclassA Travelers has been working on the development of extreme tourism in Georgia for two years. This type of tourism is focused on the category of tourists looking for new adventure destinations (mountains, lakes, canyons) and fun in different parts of the world. For them, Georgia, with its unique nature and mountains, is a novelty on the map of world extreme tourism. Traditionally, the main users of extreme tours are financially wealthy people. The company imported special vehicles for extreme tours from Israel. Com-
BUSINESS
GEORGIA TODAY
SEPTEMBER 25 - OCTOBER 1, 2020
9
Andrzej Malinowski, CEO of Veon Georgia (Beeline) on the Communications Sector in the Covid & Post-Covid World
B
eeline is well-known for its exemplary corporate culture. It cares about its employees a lot, so they can focus on serving customers. We asked Andrzej Malinowski, CEO of Veon Georgia (Beeline), to tell us more. “Our employees, or, as I prefer to call them, teammates, are our key asset. No business, no matter how technologically advanced, can grow without skillful, motivated people keen to deliver the best possible performance, based on care, respect and trust: those three components play a key role in shaping the way we work,” Malinowski tells us. “This includes quite a few important elements: our offices, the way they’re equipped and the interior design; the bonus package we offer, which includes advanced tools for self-development, flexible working hours, etc.” “Equally important is the way we treat each other: showing integrity and support, putting the person and not the job title first. It serves a purpose: we are happy to have a motivated, loyal, developing team of professionals trying their absolute best every day. Moreover, and this personally for me is a key value of fostering culture based on true care, there are no communication barriers in any respect: people communicate openly and honestly, knowing honest views are welcome.”
BEELINE IS ONE OF THOSE COMPANIES THAT DECIDED TO KEEP REMOTE WORK AS A NEW PRACTICE, INTRODUCING A "WORK FROM ANYWHERE" POLICY. HOW DOES IT WORK IN PRACTICE? It’s quite simple: we trust our people, no matter where they are. When working from the office, we don’t need to check the progress of our teammates every hour or every day: the end result speaks for itself, and that’s what matters, not the time spent in the office. This trustbased mindset was a foundation of our decision to extend our program of flexible working, established years ago, to the full scale “work from anywhere” scheme we introduced during pandemic to protect our people. The principle is
ones back home. Lastly, but not even a bit least importantly: give back to the community.
the same: what matters is the result of a respective project delivered in a timely and quality manner. Teams and individual contributors are free to choose whether they work from home, from the beach or from the office, which is equipped to ensure safety and meet all applicable requirements. All the means of communication are available: video conferencing is nothing new, and as management of the company we do not see any particular reasons why working from anywhere might be an issue. On the contrary, this way was easily adopted and we see the system working really well. Personally, I’m really happy to see my teammates enjoying a proper work-life balance, managing their time effectively and working in a very effective manner.
HOW DO YOU SEE THE POSTCOVID WORLD? DO YOU SEE COMPANIES TURNING EVEN MORE TO DIGITAL, AND WHERE DOES BEELINE FIND ITSELF IN RELATION TO THIS?
BUSINESSES WORLDWIDE ARE EXPERIENCING AN UNPRECEDENTED CRISIS. WHAT ARE BEELINE’S ANTI-CRISIS PLANS AND ACTIVITIES? Connectivity is a business relatively unharmed by the novel coronavirus, as people need to stay connected even more during turbulent times. We are here to ensure all the systems work their best. The very nature of our business assumes permanent readiness to deal with various kinds of crisis, so in our case it was more of an adjustment of the existing policies and procedures to the crisis triggered by the virus.
TO PRESERVE THE CORPORATE CULTURE AT SUCH TIMES, INTERNAL COMMUNICATION IS ESPECIALLY IMPORTANT. WHAT COMMUNICATION CHANNELS DOES BEELINE USE TO KEEP EMPLOYEES INVOLVED AND MOTIVATED? Thankfully, internal communication is our strength, and my esteemed colleague Khatia Giorgobiani, Head of Internal Communications, is a true wizard. She managed to transfer the offline experiences we had while working from the office, seeing each other every day, to the online world! We use an internal platform, Workplace by Facebook, heavily to bring people together, so they can chat, interact, have the sense of belong-
Photo source: Entrepreneur Georgia
ing to the group. It was a great challenge, but I’m extremely pleased to see how our management team succeeded in overcoming it. It goes without saying, we do think about bringing as many of our people together, so we can see each other in person, because we really miss actual interaction, conversation, laughter, normal things the pandemic partly took away from us. Once it is safe, we will definitely make it happen. If a culture of respect, trust and openness is fostered in a business, there is no need to implement any special measures: people find ways to stay in touch and support each other during this uneasy time.
The role of the leaders is always the same, pandemic or not. We are expected
to take care of our business. To do that in the best way possible, the priorities are simple: ensure our people are safe, so they don’t have to worry about anything else but how to provide the best possible service to our customers. In our case, it was equally important to make sure our teammates from closed retail outlets were taken care of: they knew from day one that their employment would continue, how their bonus system would be adjusted to the situation of closed stores. Everything was clarified from the very beginning. I personally addressed our retail colleagues in an online Town Hall to encourage them to utilize time at home to improve their skills using our learning platform. The next area of focus is to adjust our products to the most immediate needs of our customers or, as we did at the early stage of coronavirus spread with our customers stuck abroad, to offer free services, so they can contact their loved
to return to for the night. This kind of completely movable holiday turned out very much to our taste: cheap, flexible and with plenty of options. We were comfortable enough in sleeping bags on air mattresses, with a gas bottle for cooking on, and a folding table and chairs, all of which fitted quickly back into the car for the next drive. The occasional restaurant meal also gave variety and meant that we were not tied to buying only fresh food to cook, not having refrigeration. Note to self: think about a portable shower unit to make, with a water container on the car’s roof, a tarpaulin and poles, so it’s not just salt
water the whole time… This was also, as our first such jaunt, very much a time of noting what to improve or change. We were patient enough to do this without frustration, knowing that future trips would benefit greatly from this experiment. That night above Gonio, I heard jackals howling to each other for the first time in Georgia, an eerily wonderful sound which I even managed to record on my cell phone. It brought back memories of coyotes in Canada, and further back, of lions roaring in the night on camps in Rhodesia… tying these experiences all together for me.
HOW DO YOU SEE THE ROLE OF A LEADER IN THE TIMES OF THE PANDEMIC? WHAT SHOULD A COMPANY CEO’S MAIN TASK BE IN THESE CHALLENGING TIMES?
From our business perspective, COVID19 further facilitated the adoption of our mobile application. This is in fact our store at our subscribers’ fingertips, the number one application in Georgia in terms of the number of downloads on Android smartphones. Our customers started to use it much more frequently for top-ups and activation of products and this is definitely something we are proud of. Our Digital and Innovations team did a tremendous job improving the application, making it more user friendly, more intuitive. In what some people call the “postCOVID” world, the role of these kinds of service will be boosted: there is no need to leave home, or interact with anyone, to solve any problem, but interact with business via an application. Our ambition is to spearhead the shift to digital products; quite soon, we will launch some of our new partnerships, which we hope will engage our customers even more. The post-COVID world will not be based on a total redefinition of humanto-human interaction, and replacing it with digital functionalities: it’s just not possible, and it would be really bad. I very much hope the pandemic will be overcome and that many of the key social aspects of our lives will come back to pre-COVID normal, though many changes forced by the pandemic will stay. I wouldn’t be surprised if office work, the way we know it from the past, never comes back. This is probably the most visible change I’m expecting. What is most important though, is to see this actual “post-COVID” world happening, with the current threat completely gone, with Old Tbilisi full of tourists, reopened borders, a booming hospitality industry, and businesses regaining their respective markets.
SOCIETY
Gonio Memories BLOG BY TONY HANMER
N
ow, where were we before writing about school interrupted? Oh yes, still on the Black Sea coast in August. My wife and I continued from our favorite camping spot south once our friends left us for Tbilisi, and ended up going all the way to the Turkish border looking for a place as good. Nothing seemed to be evident right on or near the beach, combining close sea access with trees for shade from the then still considerable heat. We ended up at Gonio as evening approached, setting up the tent (which needs no pegs to anchor it, although you can use them if able) right on the cement of the local boulevard. My wife had wanted this, but I told her it would likely have soaked up the whole day’s worth of sun and remain hot most of the night. We tried it anyway, without the tent’s flysheet, and indeed it was too hot. So we moved the tent onto the local small smooth rocks, and there were more
comfortable. This location, however, seemed to be much more popular, and populated, than where we had come from. Late into the night, joggers and walkers traversed the boulevard, and kept us awake. Then it started again early next morning. The water here was nice and clear, though the beach angle in the sea was considerably steeper than at Ureki, which is both murkier and much shallower. Give and take. But the heat and noise of where we were persuaded us to look further, even if it meant abandoning easy beach access. We were entirely mobile, after all, and could pack everything up in less than half an hour! Some locals suggested the road going up directly behind the huge Gonio Fortress. What’s a 4x4 for?! The road presented no problems to ascend, and we found a few likely spots for the night, although everywhere around were summer homes and farm spots. Here, they grow grapes, cucumbers, pecans, figs, and many other subtropical or semitemperate crops, right up into the surrounding mountains. Descending again for our day at the beach, we knew where
Our next leg would be into upper Adjara, towards Khulo, so after some research into what to see en route, off we went again. That I will cover in another article soon. Tony Hanmer has lived in Georgia since 1999, in Svaneti since 2007, and been a weekly writer and photographer for GT since early 2011. He runs the “Svaneti Renaissance” Facebook group, now with nearly 2000 members, at www.facebook.com/ groups/SvanetiRenaissance/ He and his wife also run their own guest house in Etseri: www.facebook.com/hanmer.house.svaneti
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SOCIETY
GEORGIA TODAY
SEPTEMBER 25 - OCTOBER 1, 2020
With EU & ADA Support, CENN Green Camp for Young Leaders & Innovators Hosts 120 Participants
I
t is always up to youth to bring about the changes necessary for the improvement of society, climate change being among the priorities facing us today. CENN, the Caucasus Environmental NGO Network, is one of the few organizations dedicated to building a better, greener environment in the South Caucasus. It is clear for CENN that to shape a better future, we need educated and trained young leaders. That is why, for over ten years now, CENN has organized the Green Camp for Young Leaders and Innovators. The camp this year hosted over a hundred participants across Georgia. From July 25 through September 16, with the support of the EU ENPARD program and Austrian Development Cooperation, the CENN Green Camp hosted the 9th round of Green Camps at the Bulachauri Green Center. Within
this period, CENN Green Camps hosted a total of 120 participants, of which 60 were from Tsalka municipality, 20 from Keda municipality, and 30 from different regions of Georgia. GEORGIA TODAY asked CENN’s Executive Director Nana Janashia how the CENN Green Camps contribute to the idea of “shaping the future by changing today.” “At CENN, we especially value the support from the young generation: the ones who believe in the cause the most. By strengthening youth and providing a new, wide range of opportunities for them, we believe that small actions taken today by CENN’s environmental ambassadors in their communities can make a huge impact globally in the future,” Janashia told us. The 2020 CENN Green Camp envisioned an intensive educational module,
within which young people were offered an interesting, fun, and educational program concerning environmental topics. Experts from different fields conducted classes on Sustainable Development Goals, green innovation, climate change, the sustainable management of forest resources, sustainable waste management, the circular economy, and water, sanitation, and hygiene (WaSH) issues. Besides environmental modules, the participants were able to learn about democracy, citizenship, advocacy, digital communication, and informational technologies. Plus, the camp participants became acquainted with the European LEADER approach to rural development and the work conducted by Local Action Groups in Georgia. What’s more, to put their newly gained environmental knowledge into practice, camp participants hiked around Truso Gorge and Juta and observed natural resources in the valley. Nana Janashia summed up the history and idea of the Green Camp for us. “CENN has always been on the frontier of youth engagement in environmental activism. For over ten years, we have been running the Green Camp program for nationwide environmental education, and conducting the Niko Ketskhoveli Youth Environmental Award for young people from all over Georgia. From the remote Mulakhi community in Mestia to urban Tbilisi, young people have been shaping the conversation about our environmentally sustainable and green future. Empowering the young generation by creating new opportunities and providing a platform for them to voice their vision of our shared future were reasons why the CENN Camps came to fruition with the support of our generous donors.” The intensive educational program of the CENN Green Camp aims at raising youth awareness of various topics, and at creating new possibilities for future leaders from around Georgia. Being a Green Camp alumni has many benefits, and according to CENN’s executive
director, “Having completed the camp, alumni go on to join the Green Camp Alumni Network, enabling them to participate in future opportunities within CENN’s environmental youth initiatives. In addition, we support our active alumni’s career development and we even have a few former Green Camp alumni currently employed at CENN.” The CENN Green Camps were made possible with the support of the Austrian Development Cooperation project ‘Sustainable Forest Management for Rural Development’ and the EU ENPARDsupported Keda LEADER and EMBRACE Tsalka projects. As long as CENN’s donors, the EU, ADA, USAID, and others, continue their support, the Green Camps will be taking place in future. Every year, CENN makes a call for participants on their communication platforms, and interested young
leaders are always welcome to apply. Although the selection process is quite competitive, with the number of received applications varying from 1000 to 1300, the acceptance rate is high!
Euronews & Its New Georgian Branded Affiliate simultaneously with branded affiliates in other countries; today, Euronews Georgia’s operations are fully running, while the process has understandably been halted in other countries due to the pandemic. Georgia has proven to be an easy country for us to invest in, because of the culture here that we find so close to ours, and due to the hardworking and honest endeavor on the part of our partners.
TELL US ABOUT THE RECRUITING PROCESS. WHAT ARE THE CORE VALUES THAT EURONEWS SOUGHT TO DETECT OR NURTURE IN GEORGIAN EMPLOYEES?
INTERVIEW BY ELENE DZEBISASHVILI
A
s of August 31, Euronews Georgia started broadcasting in Georgian, featuring morning, afternoon and evening news, 24 hours a
day. Euronews is a leading international news channel and one of the best known and most trusted news brands operating across Europe. Worldwide, Euronews is broadcast in 160 countries and distributed in almost 400 million homes. Every month, Euronews reaches almost 150 million people, both on TV and digital platforms, according to the Global Web Index (Q1, 2020). To learn how Euronews Georgia was established and the values that the channel upholds, GEORGIA TODAY sat down with Michael Peters, Euronews’ CEO.
Last year, he and Giorgi Ramishvili, the Chairman of Silknet’s Supervisory Board, signed a partnership agreement between Euronews and Silknet to officially launch a branded affiliate of the European mammoth organization here in Tbilisi as Euronews Georgia.
TELL US HOW THE LAUNCH WENT IN GEORGIA, ESPECIALLY AS IT HAPPENED SIMULTANEOUSLY WITH THE PANDEMIC. Everything has been going well: our partner Silknet took all the necessary measures to provide for the smooth running of the Euronews Georgia team’s work. As a result, all stages were successfully managed. It has been a crazy time, and I think Euronews Georgia achieved a near-miracle by successfully and timely launching a full channel during the pandemic. Euronews Georgia was launched almost
Overall, the recruitment process went quite smoothly. The main challenge was that a lot of potential recruits had previously worked for more-or-less polarized media channels, so we decided to focus on young people with little experience who would better merge with the core values that Euronews upholds. It was the main and a somehow risky challenge. But the time and effort was worth it, as journalism is all about journalists and the values they uphold and share. The good thing is that we found many people that share our values. Euronews’ mission is to empower people to form their own opinion through providing the greatest diversity of viewpoints. Euronews Georgia stands for the same values: editorial independence and impartiality. “All Views”, is the main message of Euronews, as well as Euronews Georgia’s.
THE ARRIVAL OF EURONEWS IN GEORGIA IS EXPECTED TO HAVE A VERY POSITIVE EFFECT ON THE MEDIA SYSTEM
HERE. EURONEWS WILL OFFER AN OBJECTIVE OVERVIEW OF INTERNAL POLITICS AND WILL OBJECTIVELY COVER INTERPARTY RELATIONS. It’s good that you say this endeavor will be positive. But you’ll see it’s much more challenging than you think. It’s more of an intellectual approach, we don’t want to be ‘show off’. As humans we like ‘spicy’ things, but our main mission is to help viewers keep an open-mind and to try to always give both sides of the story. Many people are stuck in a bubble of opinion, and to get them out of this biased living is no easy task.
WHAT HAS THE FEEDBACK FROM THE GEORGIAN PUBLIC BEEN SO FAR? Some people in Georgia are accustomed
to receiving biased perspectives from a lot of media outlets, so the feedback so far has been multi-faceted; many say in their feedback on social media that what they see is “different.” But we’re not here to be loved; we’re here to be different and to offer a different perspective. Our message right now is that Euronews Georgia is a complementary channel for people, together with the type of news they normally follow, as it is so hard to change deeply ingrained habits in a short period of time. When people have been watching their own news in their own way for years, how can you change this in a week? It’s impossible. So I think it best to allow the process to be honest and gradual. We will wait and let the Georgian public judge whether they like Euronews Georgia and the values it upholds.
CULTURE
GEORGIA TODAY
SEPTEMBER 25 - OCTOBER 1, 2020
11
Gepherrini: Find Your Style
BY NINI DAKHUNDARIDZE
F
ashion has become a way to express yourself, and by translating your personality into your clothing style, you can now become an artist. We need outstanding accessories to compliment the visual we choose to show the outside world, and in Gepherrini’s designs, you are sure to find a piece of your character. Gepherrini was established in 2014 and was the first brand to start producing bags in Georgia. “My wife Sophio Khositashvili and I got this idea to start a label that would
be suitable for both local and international markets. Over time, we added shoes, wallets, leather, and silver accessories to our collection,” Ilia Gepheridze, the company co-founder, tells GEORGIA TODAY. What started small, with great ambition and determination, has now become international: Gepherrini is exported to 11 countries, including the US, Hong Kong, China, Singapore, Kuwait, France, Switzerland, and Sweden, and runs 42 sales points. “So far, we have taken part in five international exhibitions, and everywhere we’ve gone, we’ve gotten great feedback on our products. In 2018, Gepherrini was named Georgian Brand of the Year. In
2019, the label received the Brand of the Year award in Kazakhstan. In the same year, we got named among the top 10 “brands with outstanding style” in Hong Kong,” Ilia tells us. In different shapes and colors, made for fashion-lovers of different styles and tastes, Gepherrini’s production stands out and speaks of its owner. You can shop for women’s, men’s, and children’s bags, shoes, jewelry, and other accessories at Gepherrini. Every product is hand-made by Georgian designers in one space, personally for you. The label’s co-founder shared his insight into the reasons why customers choose Gepherrini. “Our brand has this conception that unites high-quality production with affordable prices, outstanding designs, and limited models. Not a single one of our products is like any of the other brands: all the models are created by Georgian designers. What’s more, Gepherrini is the first brand in Georgia that comes with warranties. We offer a 6-month warranty for the leather alternative and a one-year warranty for leather products. Our design is not only inspired by Georgian themes, we always keep in mind the international fashion tendencies when we work on new collections,” he says. Another reason to choose Gepherrini is its sustainability: they offer eco-leather products to vegans, vegetarians, and to all who would like to make fashion cruelty-free. The coronavirus pandemic has hit Gepherrini, much like it has all the busi-
nesses of various directions. However, unlike many other businesses, it took just a few months for Gepherrini to stabilize its sales, and now the company founder tells us that he believes that it won’t be long until the brand goes back to its usual stand in sales. The right mind-set, direction, and pricing policy have been named as the reason for the company’s international success. “Gepherrini always listens to its customers and works hard every day to make the products even better, and more likable. Our warranty service has been a great help for us: the minute the buyer returns a product, we start working on improving it. During the first year, we had 7% of sold production returned to us, but today that percentage stands at 0.2%.”
The company’s biggest upcoming challenge is entering the Chinese market and establishing itself there. As Ilia tells us, that won’t be easy. “In October, we have an active campaign planned in China. In the beginning, we would like to establish the brand on online platforms. The next step would be opening up actual stores over there. We’ve seen how much positive feedback our designs get during exhibitions in China. We have a few potential buyers, and before the end of this year, we’ll decide who to partner up with,” he says. Over six years, Gepherrini has become one of the fastest-growing brands in Eastern Europe thanks to its vision of fashion as a genre of art. Have a look at Gepherrini’s collection, pick, and make it your inspiration too.
facebook.com/gepherrini
Once Again on Galaktion & Innes OP-ED BY NUGZAR B. RUHADZE
M
artina Nicolls, who was working in Georgia in 2010 for an American humanitarian company, wrote on 17 September: “My Dear Georgia, where everyone is a poet, a lover, or a lover of poetry. I knew I was in love with Galaktion Tabidze when, on a gusty escarpment at the National Botanical Garden of Georgia, I said aloud to no-one there: ‘whirls the wind, whirls the wind, whirls the wind, and the leaves whirl…’ On my tongue were not the words of Whitman, not Wordsworth, and not even Keats, but an unknown poet to a British girl raised in Australia. I found an English version of Galaktioni’s ‘Whirls the Wind,’ and it reminded me of James Joyce. But it was not until I discovered Innes Merabishvili’s beautiful translations of Galaktioni’s poems that I felt I could truly understand this kindred spirit, and more importantly, that he understood me. I am an author; I’m a lover of words, and Galaktioni, to me, is the most profound of all Georgian poets. In a way, it is not surprising that I turned to Galaktioni at a time of global darkness and uncertainty in March 2020: the coronavirus pandemic. His prophetic words were also words of comfort and hope, and the most precise expression of my own feelings, alone, in lockdown: The world is worn out like a coin, Now life is empty and quite dark,
Don’t be surprised if at this point, I’m grateful for a little luck. I thank Georgia for Galaktioni and Innes Merabishvili for bringing him, so eloquently, to me.” Quotes like this are not very commonplace in our media, and if they ever materialize, they need to be carefully preserved in our literary annals. There is one regrettable thing that we Georgians have to recognize and swallow
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with dignified patience: the outstanding Georgian poetic philosophy and the unique power of Georgian verse remain unknown to the world. The Georgian poetic elevation is probably impossible to compare with the lyrical muscle of any other nation. I have the privilege to be an educated enough arbiter of literature in general, because I happen to be naturally trilingual, and so I can make a fair comparative judgement of a trans-
Journalists: Ana Dumbadze, Vazha Tavberidze, Nini Dakhundaridze, Tony Hanmer, Emil Avdaliani, Nugzar B. Ruhadze, Beka Alexishvili, Elene Dzebizashvili Photographer: Aleksei Serov
lated written word. This said, the name of the genius, the poet Galaktion Tabidze, would spring forth to any Georgian mind whose unfathomable poetic talent is shining from above over Humankind. Galaktion, the pride and conscience of this nation, would have remained isolated from the rest of the world if Academician Innes Merabishvili had not successfully ventured to use her dazzling talent of poet and ttranslator to make
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this brilliant Georgian known to civilization. Innes Merabishvili, by nature, hates excessive kudos from anybody, but hopefully she can take easy the abundance of truth about her relationship with Galaktion’s poesy, made publicly known. One cannot do anything more valuable to the Georgian people than putting the Georgian national talent into the ears and before the eyes of the world. This is exactly what she did with her translation of Galaktion’s poetry into English and having given it to her grateful readers in several wonderful editions. Martina Nicolls is one of those appreciative readers whose sharp mind and keen eye have allowed her to not only notice a great piece of poetic translation from one language into another, but to feel it with all her responsive essence and fall in love with Galaktion. And this could have happened only thanks to Innes Merabishvili and her dedicated readiness to serve her native culture as well as world society, truly having rendered unto Caesar the things that are Caesar's, and to God the things that are God's. As a matter of fact, it is not only Galaktion Tabidze who needs to be noticed and approved of, but all Georgia; to reinforce its deserved niche in the family of nations. The creative activity of Innes Merabishvili absolutely matches this demand of time; her amazing talent and knowledge of English and Georgian languages being definitely commensurate with what Galaktion wanted to say in verse.
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