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ოთხშაბათი | 14 მარტი, 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. 
21.07.2014 | ორშაბათი

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 | ორშაბათი

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 | ორშაბათი

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 | ორშაბათი

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 | ორშაბათი

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 | პარასკევი

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 | ორშაბათი

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 | ოთხშაბათი

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 | სამშაბათი

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 | ოთხშაბათი

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 | ოთხშაბათი

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 | სამშაბათი

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 | ოთხშაბათი

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 | პარასკევი

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 | ორშაბათი

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