უკან
სამშაბათი | 07 ოქტომბერი, 2008
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From: Hans Gutbrod
Hi Anna,
I really liked the honey, but I think you'd market it more effectively if you sell it in small doses. The 1.5 Litre pot that I bought last year (or even the year before?) is still sitting in my apartment, and I am still scraping it...
I think if you sell it in 250g jars, maybe with a small cute label, for 6 GEL, with 1 GEL going towards the charity your husband runs, you'd have even more uptake.
Best,
-------- Original Message --------
Hi Hans,
I've sold small jars in the past at the Christmas bazaar, but it's really not worth our time, not to mention the mess. We have 2 tons of honey this year! If you'd like 2 half-liter jars, I can do that.
Cheers,
--------------------------------------------
So effectily Anna (not her real name) is trying to solve her problem of 2 tons, rather than my problem of how
to consume that honey.
At least as important, Anna is cutting herself off from a natural extra market: honey as a nice gift in and from Georgia. A small, well-labelled glass of honey works well, it's a present that anyone would like to give and receive. Conversely, who will schlepp 1 liter pots anywhere?
These giant pots of honey to me are emblematic of why supply so often fails to meet demand. Sweetness undesired, at least in that shape and form. No wonder, then, that you still have so much foreign honey lining local super-market shelves. I sometimes even wonder whether these little stories and lessons are not at least as important in characterizing the business malaise than the larger economic explanations.
Any other instances you have come across? Any suggestions for how we could measure this phenomenon?
How Supply fails Demand | Pots of Honey
So what plagues local business? In many cases it's the same problem we have in politics as well: there simply is the wrong paradigm. It is self-centered, rather than being other-centered. Or, if that sounds too much like marriage counseling, let's put it this way: too many sellers try to solve their own problems, rather than those of other people. Nothing wrong with that, but it's not how you can succeed in a market. After all, who likes to spend their money on other people's problems? Charity is not a business model, at least not in retail.
Now in the last few days, an email exchange that perfectly illustrates this problem. (Note: I changed names, and the person is not even local. But it demonstrates the perennial problem.)
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Dear all,
Many of you have purchased honey produced by my in-laws out close to Bakuriani. This year we have a bumper harvest and I can honestly say that the honey is even more delicious than ever. Its great with tea or over hot cereal and is especially effective at warding off colds. Most of the honey sold in the bazroba is adulterated with sugar water, but the one we offer is all natural. Price is 15 GEL per liter [around 10 USD], different sizes can be arranged.
Please contact me off list or call XYZ at 877-1234567 to arrange delivery.
Cheers,
Anna
-------------------------------------
From: Hans Gutbrod
Subject: Re: honey for sale
To: Anna
Date: Saturday, October 4, 2008, 12:19 PM
Hi Anna,
I really liked the honey, but I think you'd market it more effectively if you sell it in small doses. The 1.5 Litre pot that I bought last year (or even the year before?) is still sitting in my apartment, and I am still scraping it...
I think if you sell it in 250g jars, maybe with a small cute label, for 6 GEL, with 1 GEL going towards the charity your husband runs, you'd have even more uptake.
Anyway, I'd happily take 4 jars of 250 g each, and would pay extra for the jars.
Best,
Hans
-------- Original Message --------
Subject: Re: honey for sale
Date: Sun, 5 Oct 2008 12:21:00 -0700 (PDT)
To: Hans Gutbrod
Hi Hans,
I've sold small jars in the past at the Christmas bazaar, but it's really not worth our time, not to mention the mess. We have 2 tons of honey this year! If you'd like 2 half-liter jars, I can do that.
Cheers,
Anna
--------------------------------------------
So effectily Anna (not her real name) is trying to solve her problem of 2 tons, rather than my problem of how
to consume that honey.
Pooh the Bear would be impressed.
Note the maths: 4 x 250g @ 6 GEL = 24 GEL; subtract additional cost for label and jars, and you still could make more than 20 GEL, an extra 5 GEL on the 15 GEL per liter. And that price is realistic, since the market that Anna is advertising to is NOT price sensitive, merely focusing on quality and convenience.
At least as important, Anna is cutting herself off from a natural extra market: honey as a nice gift in and from Georgia. A small, well-labelled glass of honey works well, it's a present that anyone would like to give and receive. Conversely, who will schlepp 1 liter pots anywhere?
These giant pots of honey to me are emblematic of why supply so often fails to meet demand. Sweetness undesired, at least in that shape and form. No wonder, then, that you still have so much foreign honey lining local super-market shelves. I sometimes even wonder whether these little stories and lessons are not at least as important in characterizing the business malaise than the larger economic explanations.
Any other instances you have come across? Any suggestions for how we could measure this phenomenon?
17.08.2015 | ორშაბათი
An interesting implication of the 2014 census: Georgia is likely an upper middle income country
While Georgia has yet to be officially declared an upper middle income country by the World Bank, as a result of the 2014 census, it’s likely to be labeled one after the final census results are published in April of 2016. Interestingly, Georgia likely became one in 2013. Why is this the case and what are the implications?
23.03.2015 | ორშაბათი
The CRRC’s 500th post and thoughts about the future of social research
When we started this blog, quite a few years ago, we published a few posts, and didn't tell anyone about it. We weren't sure whether the venture would work – and whether it was a good fit for ourselves. Now, with this 500th post, I'm glad to see that our tentative venture took off.
11.08.2014 | ორშაბათი
In the South Caucasus, the Enemy of my Enemy is my Friend
The three countries of the South Caucasus (Armenia, Azerbaijan and Georgia) are geographically, historically and politically bound closely together. Nevertheless, these countries often find themselves in disagreement when faced with broader geopolitical questions regarding alliances, threats and visions about the future of the region.
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.
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.
06.02.2012 | ორშაბათი
The French Senate Bill and Armenian Perceptions on Turkey
As the New York Times reports, on January 23, 2012 the French Senate “approved a bill […] criminalizing the denial of officially recognized genocides, including the Armenian genocide begun in 1915.” The bill has fanned tensions between Turkey and France, emphasizing the complexities of politics and perceptions.
14.03.2012 | ოთხშაბათი
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.
06.04.2011 | ოთხშაბათი
Caucasus Barometer 2010 reveals Georgian attitudes towards Indians
A recent article in Georgia Today entitled “India through the eyes of Georgian children” described an exhibition, which was hosted by Bharatma, a Georgian-Indian cultural organization established 20 years ago, in which young Georgian public school students displayed artwork portraying their visions of Indian culture.
02.11.2011 | ოთხშაბათი
A Further Look at Material Deprivation
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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.
14.01.2010 | ხუთშაბათი
Insight to Georgian Households | CRRC Data on Economic Wellbeing in the Caucasus
How are Georgians doing financially, how much do they earn and what do they spend on? CRRC’s Data Initiative allows for an in-depth analysis of these and similar issues on the economic status of the population across the South Caucasus.
15.03.2010 | ორშაბათი
New Policy Advice on Migration and Development in Georgia
Migration is a major factor in Georgia. Many Georgians live abroad, and by some estimates the money they send back accounts for nearly 10% of Georgia’s GDP. Did you know that households in rural areas who receive such aid are less likely to be poor, but that in Tbilisi, the opposite is true?
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).
10.09.2010 | პარასკევი
Aleksey Hovakimyan on Rural & Economic Development in Armenia
While writing his PhD, Aleksey Hovakimyan was a regular user of CRRC-Armenia, often working in the computer lab or the library. We therefore were delighted to hear that his PhD thesis has now been published, and wanted to support him in spreading the word of his book's release.
11.12.2009 | პარასკევი
In terms of the business findings, CRRC's Media Survey (undertaken in September/October 2009) generated extensive data that is available to help media make good business decisions. One recent presentation, summarized here, focused on showing the diversity of data that is available.
Georgian Media as Business | Data Snapshots
In terms of the business findings, CRRC's Media Survey (undertaken in September/October 2009) generated extensive data that is available to help media make good business decisions. One recent presentation, summarized here, focused on showing the diversity of data that is available.
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.
15.04.2008 | სამშაბათი
Tourism: Structure and Cost-sharing
A slightly specialized topic: what's the cost of tourism? Often suggested as a way of developing parts of the South Caucasus, especially Georgia, quickly, it's interesting to take a quick look, since in tourism many factors interact: business, environment, architecture, urban planning, societal habits, local versus national government, local and foreign expectations, and the challenge of reconciling all of those.
06.06.2008 | პარასკევი
Study of Economic Relations Between Georgia and Armenia
At first glance it may seem that trade between the Georgian region of Samtskhe-Javakheti and the neighboring Armenian region of Shirak should provide a natural basis for development in both regions. However, the main border crossing point in Samtskhe Javakheti is under-utilized and trade is not creating stimulation for growth in either region.
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.
12.09.2008 | პარასკევი
Credit Crisis in the Caucasus?
Over the past year questionable lending practices by major banks and lack of consumer education about credit risk in the United States among “sub-prime” borrowers caused a credit crunch that in turn erupted into a major financial crisis that threatens to lead to a recession and an international economic downturn.
02.10.2008 | ხუთშაბათი
The August Conflict | Economic Impact on Georgia?
In Georgia, attention now turns towards sorting out the impact of the short August conflict. How plausible is the reporting we are seeing? Do the journalists get it right?
03.10.2008 | პარასკევი
Polling Data on Turkish-Armenian Bilateral Relations
Recently, as a result of the football diplomacy between Armenia and Turkey, an opinion poll was conducted in both Turkey and Armenia to gauge the reaction to new gestures in the Turko-Armenian relationship. The poll was carried out by MetroPoll in Ankara (Turkish only website) and by the Armenian Center for National and International Studies -- run by Rafik Hovannisian an American Diaspora Armenian now resident in Yerevan and involved in Armenian politics.
03.10.2008 | პარასკევი
Focus on non-oil tax policy as oil revenues predicted to decline
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11.12.2007 | სამშაბათი
Mapping Development | WRI's "Funnel the Money"
The World Resources Institute, a global environmental think tank based in Washington DC, is providing maps that allow a visual comparison of data for the countries in the South Caucasus. Called "Funnel the Money", it seeks to chart development within countries, and also track allocation of resources from the central government by providing regional comparisons.
22.11.2008 | შაბათი
EBRD Life in Transition Survey | worth analyzing!
One of the most impressive recent survey efforts, measuring attitudes about different countries in transition, has been undertaken by EBRD. Called Life in Transition Survey (LiTS), this is an attempt to look at how 29 'transitioning' countries have developed following 1989. The survey tracks "public attitudes, well-being, and the impact of economic and political change".
05.12.2006 | სამშაბათი
Financial Sector Snapshot - Armenia
A special issue of the Armenian Journal of Public Policy (published by AIPRG, with CRRC's Heghine Manasyan as one of the Editors) is devoted to Financial Sector Development. All the papers are engaging for non-specialists.
27.08.2007 | ორშაბათი
"The Economic Dynamics of the Countries of the South Caucasus"
Two years ago, Tigran Sargsyan, the Chairman of the Central Bank of Armenia, wrote a brief paper looking at various facets of the economies of the countries of the South Caucasus from four different vantage points including an evaluation of compliance with the Maastricht Treaty, the relationship between each country’s economic processes and the creation of human capital, macroeconomic effectiveness, and the actual sustainability of development.
20.08.2007 | ორშაბათი
Free Economic Zones in Georgia
Economic free zones in Georgia are no longer a necessary, helpful, or even relevant option for Georgia’s economic development according to a GFSIS article written by Vladimer Papava. A free economic zone is a discreet area of a country’s economy designated by the government and bestowed with certain benefits and privileges.
07.08.2007 | სამშაბათი
The Open Budget Index | Georgia, Azerbaijan and the World
The Open Budget Index, a project of the Center on Budget and Policy Priorities, released the first-ever independent and non-governmental Budget Transparency Ratings in October 2006. The index endeavors to provide the practical information needed to analyze the transparency and accessibility of a government’s budgetary processes—and thus better equip citizens and legislators in lobbying for governmental accountability and targeted, effective policymaking.
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
15.05.2017 | ორშაბათი
Debts and Loans in Georgia (Part 2)
The first part of this blog post showed that people who report being in a worse economic situation are more likely to have debts in Georgia. In the second part of this blog post, a new variable is added to the analysis, “Does anyone owe you any money?”
12.02.2018 | ორშაბათი
რა ფაქტორები უწყობს ხელს კარგი სამსახურის შოვნას? მოსაზრებები სომხეთსა და საქართველოში
რა ფაქტორები უწყობს ხელს კარგი სამსხურის შოვნას? ეს კითხვა მთელ მსოფლიოშია მნიშვნელოვანი, განსაკუთრებით კი ქვეყნებში, სადაც მაღალი გაცხადებული უმუშევრობაა. სომხეთი და საქართველო ასეთი ქვეყნების რიცხვს მიეკუთვნება. იმის გასაგებად, თუ სინამდვილეში რა ეხმარება ადამიანებს კარგი სამსახურის პოვნაში, საჭიროა კონკრეტულ ქვეყნებში შრომითი ბაზრის სიღრმისეული კვლევა. თუმცა, აგრეთვე საინტერესოა ხალხის მოსაზრებები ამ საკითხთან დაკავშირებით. CRRC-ის 2017 წლის კავკასიის ბარომეტრის კვლევის ფარგლებში მოსახლეობას სომხეთსა და საქართველოში ჰკითხეს, თუ რა ფაქტორებია მნიშვნელოვანი კარგი სამსახურის საშოვნელად მათ ქვეყნებში.
28.05.2018 | ორშაბათი
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.
10.09.2018 | ორშაბათი
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 | ორშაბათი
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.
25.11.2019 | ორშაბათი
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.
29.06.2020 | ორშაბათი
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 | სამშაბათი
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 unemployment, reduced 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.