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Wednesday | 14 March, 2012

Georgia and the EU’s Economic Woes

Why hasn’t the economic crisis in Europe deterred Georgia’s desire to join the European Union? The majority of Georgians (and the Georgian government) want to join the EU despite crisis in the Eurozone. Yet, the continued crisis, including the Eurogroup’s recent (and second) rescue of Greece’s economy and Hungary’s harsh austerity measures, illustrates that the crisis is not isolated to the Eurozone. Thus, for EU-aspiring states such as Georgia--which also operates under the European Neighborhood Policy (ENP) framework--the crisis presents a growing concern over the security of the Eurozone, as well as the overall health of EU integration. Despite these economic problems, Georgians remain overwhelmingly positive about the future of EU integration. This is because not only do Georgians have high expectations that economic conditions would improve in the country, but that territorial integrity and national security would significantly increase upon joining the union.


Map courtesy of europa.edu 

A 2011 CRRC survey (and its associated report) entitled “Knowledge and Attitudes towards the EU in Georgia” show that support for EU membership has increased from 81% in 2009 to 88% in 2011. The report also presents an analysis of Georgians’ perceptions towards EU integration and shows that the desire for EU membership is partially tied to a desire for strengthened national security, territorial integrity and economic improvement. According to the survey, the top three most important issues facing Georgia are unemployment/jobs (58%), territorial integrity (42%) and poverty (31%).



Respondents were asked to indicate what they considered to be the three most important issues facing Georgia at the moment. The 2011 survey on Knowledge and Attitudes towards the EU in Georgia also had a target population of adult speakers of the Georgian language. See the report for information on the methodology used for this survey.

When asked, “How will the following issues change if Georgia becomes an EU member?” 59% of Georgians say national security would increase and 58% feel territorial integrity would improve. Just over half (56%) of Georgians anticipate that the number of available jobs would increase, and 48% of Georgians think poverty would decrease.



The data also shows that 40% of Georgians think the EU currently provides Georgia with financial support, while 15% say that the union provides solutions to social problems, and 10% believe the union helps Georgia to develop relations with Russia. 35% of Georgians think that the EU will help restore territorial integrity, thereby addressing one of the issues that many Georgians consider most important.

Many EU candidate (or potential candidate) countries see the current economic crisis as a warning of the risks associated with full European economic integration. Indeed, economic stability (e.g., jobs) is also a concern for many Georgians. However, Georgian motivations for membership are somewhat sated with the knowledge that EU membership could strengthen national security and territorial integrity even if membership may not provide a solution to the current economic woes facing the country. 
22.06.2015 | Monday

Connections or education? On the most important factors for getting a good job in Georgia

What is believed to be the most important factor for getting a good job in a country where unemployment is widely considered to be one of the biggest issues? CRRC’s 2013 Caucasus Barometer (CB) survey results show that connections (30%) and education (28%) are the most frequent answers to this question in Georgia.
21.07.2014 | Monday

Friends and Enemies in the South Caucasus

On 1 April, 2014 the International School of Economics at Tbilisi State University (ISET) published a blog which described a future Transcaucasian Confederation agreement signed by the three South Caucasian states. Despite the fact that the blog was an April Fool’s Day joke, it provoked significant interest and reader response.
18.08.2014 | Monday

One step forward, two steps back? European integration in Georgia after the Association Agreement

So far, 2014 is shaping up to be the year that Georgia might begin to reap the benefits of its pro-EU and pro-NATO foreign policy. In June, Georgia signed the EU Association Agreement despite fears over Russian agitation. NATO has indicated its readiness to discuss a “substantive package” for Georgia, if not a Membership Action Plan. However, despite these gestures towards closer cooperation, some elements of the decision to sign the Agreement have caused friction.
29.09.2014 | Monday

Georgians Have High Hopes but Little Information about the Association Agreement with the EU

Optimism abounds with regards to the recently signed Georgia-European Union Association Agreement (AA). Most Georgians, however, lack information about the EU and its relation to the country, including the details of the agreement which directly concern the future of Georgia’s economy. The AA covers many areas including national security, migration, human rights and the rule of law but is primarily a free trade agreement with potentially major implications for employment.
20.10.2014 | Monday

Do Armenians Still View Integration with the EU as Part of a Positive-Sum Game?

On September 3rd 2013 Armenian President Serzh Sargsyan surprised many observers, including some in his own government, when he announced that Armenia would sign an agreement with Russia to join the Eurasian Customs Union (ECU) and spurn a long-negotiated Association Agreement (AA) with the European Union. The move has been dubbed a “U-Turn” as well as a “sudden shift in policy,” although it was predated by landmark Armenian-Russian agreements in 1997 and 2006.
09.11.2015 | Monday

Household income and consumption patterns in Georgia

After the collapse of the Georgian economy in the 1990s, the country slowly started to recover, and between 2000 and 2014, the gross national income grew from $3.4 billion to $16.7 billion (in current USD). According to the National Statistics Office of Georgia, the official unemployment rate in Georgia was 12.4% in 2014, but according to numerous surveys the rate is much higher.
27.11.2015 | Friday

Awareness of the EU-Georgia Association Agreement in Georgia, one year on

The June 27, 2014 initialing of the EU-Georgia Association Agreement, a wide reaching, largely economic treaty, was marked with celebration in Tbilisi as the fruit of a long running diplomatic effort to tighten ties with the European Union over the course of three Georgian administrations.
30.11.2015 | Monday

Parenting, gender attitudes and women’s employment in Georgia

In Georgia, unemployment is high, and it is higher among women than men. Policy changes are definitely needed not only to increase the employment opportunities, but also to ensure more equal employment opportunities for men and women.
16.12.2015 | Wednesday

What We Know About Volunteering in Georgia

[This post originally appeared in investor.ge]

By Nino Zubashvili

Following the June 13, 2015 flood in Tbilisi, hundreds of volunteers helped to clean the disaster-affected zones of the city, which stirred the hope that volunteerism is on the rise in Georgia. In the past, studies on volunteering in Georgia conducted by non-governmental organizations (such as Helping Hand and the Civil Society Institute) claimed that volunteerism had not taken root in Georgian society, and CRRC-Georgia surveys have consistently shown a mismatch between attitudes and actions regarding volunteering in Georgia.
22.12.2015 | Tuesday

No, Putin is not winning Georgia away from Europe. Here are the facts.

[Editor's Note: This post was originally published on the Washington Post's Monkey Cage on Monday, December 21, 2015. The original post is available here. The views and opinions expressed in this article are those of the author alone and do not necessarily reflect the views of CRRC-Georgia or any of the sponsors of the survey which this article is based on. The data on which this article is based is available here.]

By Dustin Gilbreath

Last Friday, after years of diplomatic wrangling over the course of two administrations, the Republic of Georgia received a report from the EU green lighting visa free travel within the European Union in the near future. Yet, media accounts from earlier this year suggested that Georgia was undergoing a “Russian turn”.
02.11.2011 | Wednesday

A Further Look at Material Deprivation

Continuing to explore standards of living in the South Caucasus, this blog looks at the between four sources of household income and material deprivation using data from the 2010 Caucasus Barometer. Each of the four sources of income (salaries, pensions or government transfers, sales from agricultural goods, and remittances) are categorized by their importance to the household and then cross tabulated with material deprivation. The findings suggest that families reliant on salaries and remittances are better off, while families receiving pensions and government transfers, or those who sell agricultural products as their primary source of income have higher than average rates of material deprivation. 
07.12.2011 | Wednesday

Can a Cut NATO Supply Route Through Russia Benefit Georgia and Azerbaijan?

The 20th anniversary of the dissolution of the Soviet Union is upon us, and US-Russian tensions have risen as Russia contemplates terminating the NATO supply route through Russia. International news reports such as The New York Times detail the threat as a “death blow” to the U.S.-led NATO mission in Afghanistan and indicate that this could be a blessing in disguise for NATO hopeful Georgia, as well as for Azerbaijan.
30.03.2010 | Tuesday

2010 Big Mac Index | Increased differences between Baku and Tbilisi

In 2007 we wrote a blog post on the Big Mac Index, an index published by The Economist as an informal way of measuring purchasing power parity (PPP). The idea is that a dollar should buy you the same amount in all countries, and as a Big Mac is assumed to be produced in the same way everywhere it can serve as a point of comparison. You can thus determine how far off the exchange rate is between countries, in terms of citizens’ ability to buy the same “basket” of goods and services (in this case a Big Mac hamburger).
 
27.02.2008 | Wednesday

Inflation in Armenia? | Lecture by IMF Representative

Readers here may not be aware that actually our Armenian CRRC also runs its own blog, to announce and describe CRRC's events. One of the most recent events was a lecture by the IMF Resident Representative in Armenia, Dr. Nienke Oomes.
12.09.2008 | Friday

Doing business in Azerbaijan: easy in theory

Results of the World Bank’s Doing Business 2009 project, claims to present "objective measures of business regulations and their enforcement across 181 economies and selected cities at the sub-national and regional level", were made public today.
08.05.2017 | Monday

Debts and Loans in Georgia (Part 1)

In Georgia, where, according to the World Bank, a third of the population live on under USD 2.5 per day, poverty and unemployment are consistently considered the most important issues facing the country. For those who are struggling financially, borrowing is a widespread coping mechanism. While access to credit can have benefits, debt can also have psychological costs, such as increased stress and anxiety. CRRC’s 2015 Caucasus Barometer (CB) data show interesting patterns about having personal debts in Georgia. The first part of this blog post focuses on the characteristics of those who report having personal debts in Georgia, while the second part looks at the money lending patterns, as well as reported well-being of people who are owed money or who borrow it
16.10.2017 | Monday

Visa liberalization: How much do people in Georgia know about the conditions of visa-free travel to the EU?

CRRC’s previous blog posts have shown that the population of Georgia had rather moderate expectations of the recent visa liberalization with the Schengen zone countries, especially when it comes to the question of how much ordinary people will benefit from it. Europe Foundation’s latest survey on Knowledge of and Attitudes towards the European Union in Georgia, conducted in May 2017, provides a more nuanced understanding on how people in Georgia feel about this process and to what extent they are familiar with the conditions of visa liberalization.
30.10.2017 | Monday

Georgian public increasingly unaware of what the European Union Monitoring Mission does

As much as 81% of the population of Georgia doesn’t know what the European Union Monitoring Mission (EUMM) does, according to the 2017 Knowledge of and Attitudes towards the European Union in Georgia survey funded by Europe Foundation and implemented by CRRC-Georgia. This lack of knowledge has increased over time, as has the prevalence of incorrect information about the EUMM’s mission. This represents a missed opportunity for the EU’s communications in Georgia.
05.02.2018 | Monday

Who in Georgia wants to study abroad?

Studying abroad can offer students the opportunity to learn new languages, travel, experience different cultures, and form relationships in addition to studying. The Knowledge of and Attitudes towards the European Union survey (EU Survey) implemented by CRRC-Georgia for Europe Foundation provides information about what share of the population in Georgia would like to go abroad to study, and the demographic characteristics of those who would like to.
12.02.2018 | Monday

What factors help to land a good job? Views in Armenia and Georgia

What are the factors that help one get a good job? The question is important around the world, and arguably even more important in countries with high reported unemployment, like Georgia and Armenia. While it would require an in-depth study of the labor market of a given country to find out what actually helps a person get a good job, what people think about this issue is also interesting. CRRC’s 2017 Caucasus Barometer (CB) survey asked the population of Armenia and Georgia which factors where important for getting a good job in their country.
28.05.2018 | Monday

Perceptions of the problems faced by women in Georgia

People in Georgia consistently name unemployment as the main problem the country faces. Women, compared with men, report having a job less often. Based on CRRC/NDI December 2017 survey findings, this blog post presents the population’s perceptions of some of the issues that women in Georgia face that may partially explain women’s lower labor force participation rate.
18.06.2018 | Monday

The EU, USA or Russia: Who is believed to be able to support Georgia best?

In recent years, Georgia has benefited from EU and US assistance, with around €400 million indicatively allocated for the EU’s projects in Georgia in 2017-2020, and the US government increasing assistance to Georgia in the 2018 Spending Bill. In contrast, Georgia’s relationships with Russia are tense, with diplomatic relations terminated in 2008.
10.09.2018 | Monday

Pension reform is underway in Georgia, but only about half of the population is aware of it

On July 21, 2018 Georgian legislators approved an accumulative pension scheme, after years of discussion. As one of the requirements of the new law, employees with contracts who are under the age of 40 have to contribute 2% of their remuneration to the state-run pension fund, on a monthly basis. Although other employees are not legally required to do so, they may participate in the scheme voluntarily. This law is a first step in a larger reform of Georgia’s pension system. Opposition politicians have criticized the new law citing that it counters the country’s constitution as it introduces a new tax without a referendum. Several civil society groups also expressed criticism of the reform, questioning its legitimacy.
21.01.2019 | Monday

Budget priorities are similar to people's spending priorities

Georgia’s state budget amounted to GEL 12.5 billion in 2018.  The Ministry of Labor, Health and Social Affairs; Ministry of Regional Development and Infrastructure; and Ministry of Education and Science had the largest appropriations at 28.2% (GEL 3.528 billion), 14.5% (GEL 1.815 billion), and 9.5% (GEL 1.186 billion) of the budget, respectively. In the 2018 June CRRC/NDI survey, respondents were asked, “What are your top three priorities for spending, understanding it means cutting elsewhere?” Respondents were provided with a show card and allowed to name up to three answers. This blog post looks at whether responses match up with actual spending, and how priorities vary among different demographic groups.
20.05.2019 | Monday

Grit among young people in Georgia

Angela Duckworth’s concept grit has gained a great deal of attention in recent years. Grit, described as some combination of perseverance and passion, has gained this attention, because the data suggest it is associated with a number of positive outcomes like employment and completion of education. In 2018, CRRC-Georgia measured the grit of over 2500 young people (15-35) within a baseline evaluation for World Vision’s SAY YES Skills for Jobs project (funded by the European Union within EU4YOUTH program) which is taking place in Mtskheta, Akhaltsikhe, Adigeni, Kutaisi, Zestaponi, Bagdati, Senaki, and Zugdidi. The data suggest that grit is good predictor of positive outcomes in Georgia as is it is in other contexts.
18.11.2019 | Monday

Knowledge of visa-free requirements falls since launch of scheme

Georgian citizens have been able to travel visa free within the Schengen zone for approaching three years, the result of several years of complex dialogue and policy reform. Despite the elapsed time, and a major EU-funded public information campaign, the results of the 2019 Survey on Knowledge of and Attitudes towards the European Union in Georgia (EU Survey) suggest that public knowledge of requirements for visa free travel have fallen since the scheme launched. Similarly, the same period has seen a large rise in the number of Georgian citizens being denied entry to EU countries, with Eurostat reporting over four thousand such cases in 2018 alone, up over a third since 2017.
25.11.2019 | Monday

Attitudes towards the new banking regulations

The share of the public with loans from formal financial institutions doubled from 2011 to 2016 according to World Bank Group’s analysis based on Integrated Household Survey in Georgia. The July 2019 CRRC/NDI survey data suggests that about half of the population has a loan. To address perceived over-indebtedness, on 1 January, 2019 the National Bank of Georgia introduced new regulations, restricting lending without more extensive analysis of a consumer’s solvency. The analysis includes looking at an individual’s income, expenses and total obligations, and determination of debtors’ capacity to service their loans without significant financial difficulties.
09.12.2019 | Monday

Optimism Regarding EU membership is decreasing

Georgia is not a candidate for membership in the European Union (EU), but the government has the stated goal of joining the EU when the country is ready for it. According to the Knowledge of and Attitudes towards the EU in Georgia survey (EU Survey) CRRC-Georgia conducted in spring 2019 for Europe Foundation, 71% of the population of Georgia would vote for EU membership if a referendum were held tomorrow. Only 10% would vote against it and 7% would not vote at all. While support for joining the EU is clearly high, people are increasingly pessimistic about how long it will take Georgia to join.
06.01.2020 | Monday

Georgia’s Foreign Policy Trilemma: Balance, Bandwagon, or Hedge? Part 1

Georgia is a small, partly free democracy in a tough neighbourhood, and NATO membership remains an unfulfilled promise. While Russia is widely perceived as the main threat to Georgia’s security, the appropriate strategic or political response to the threat is not obvious. What options does Georgia have when faced with a powerful rival on its border, and what public support is there for these options?
29.06.2020 | Monday

The most important issues facing Georgia, prior to the COVID-19 outbreak

What did Georgians think was the most important issue facing the country prior to the COVID-19 outbreak? The economy. The current COVID-19 outbreak will shift perceptions surely. Yet, the measures to fight the virus have slowed down the economy, exacerbating the previously existing economic issues. While the economy has consistently been the most important issue for most Georgians in recent years, this headline figure hides some nuance. This blog explores this nuance, looking at who names a mixture of economic and non-economic issues as the most important ones facing the country.
 
08.09.2020 | Tuesday

Lockdown vs re-opening the economy in Georgia

As the number of new daily confirmed cases is again on the rise, we look at how people felt about the anti-coronavirus restrictions in May.

Aside from the public health situation, COVID-19 has led to rising unemploymentreduced incomes, and food insecurity in Georgia. As the number of new daily confirmed cases is again on the rise, the Caucasus Datablog takes a look at how people felt about the anti-coronavirus restrictions when they were at their height.