Georgian Economy Grows by 5.7% in October

Issue no: 1208/209 • DECEMBER 3 - 5, 2019 • PUBLISHED TWICE WEEKLY PRICE: GEL 2.50

In this week’s issue... FOCUS ON TOTAL CHARM Bringing production back to Weekly Entrepreneurial its homeland, we meet the team behind the renowned News @entrepreneur.ge Aptos Threads PAGE 9 NEWS PAGE 2 Georgia, Azerbaijani & Turkey Inaugurate Historic TANAP Project BUSINESS PAGE 3 The Retail Trade Sector Optimistic for the Holiday Season ISET PAGE 4 The Washington Times Reports on the Vital Strategic Importance of Georgia BUSINESS PAGE 5 Konstantin Sulamanidze Entrepreneur Shop: A New Online Store of Georgian Economy Grows by 5.7% in October Georgian Production BUSINESS PAGE 8 BY TEA MARIAMIDZE ARDI Develops Partnership he Georgian economy saw a 5.7% increase in October. The information was released by the National Statistics Ofﬁ ce with Acibadem Healthcare (Geostat), which says that the real growth was registered in manufacturing, hotels and restaurants, information and com- Group, a World-Renowned munication. TGeostat’s preliminary report reads that the average estimated real GDP Hospital Network growth equaled 5.1% for the ﬁ rst ten months of 2019 year-on-year (y-o-y), BUSINESS PAGE 10 adding a decrease was registered in mining and quarrying and in arts, entertainment and recreation activities. Minister of Economy and Sustainable Development Natia Turnava says Tbilisi’s Car Problem that the government spares no effort to see the highest possible growth of the Georgian economy. SOCIETY PAGE 11

Prepared for Georgia Today Business by Markets Image source: industrywired.com Asof29ͲNovͲ2019 STOCKS Price w/w m/m BONDS Price w/w m/m “We are doing our best to achieve high economic growth in the country, BankofGeorgia(BGEOLN) GBP14.80 +5,7% +15,5% GEOROG04/21 104.34(YTM3.54%) Ͳ0,2% +0,2% GeorgiaCapital(CGEOLN) GBP9.44 Ͳ0,6% Ͳ3,8% GEORG04/21 105.64(YTM2.62%) Ͳ0,1% Ͳ0,4% but the most important thing for our people is not the growth fi gures GHG(GHGLN) GBP1.65 Ͳ0,2% Ͳ12,0% GRAIL07/22 109.90(YTM3.73%) +0,0% +0,2% themselves, but the employment and social benefi ts that lie ahead. Such TBCBankGroup(TBCGLN) GBP12.40 +3,3% Ͳ4,0% GEBGG07/23 105.54(YTM4.34%) +0,2% +1,9% economic growth can be achieved by the creation of new jobs, which COMMODITIES Price w/w m/m CURRENCIES Price w/w m/m CrudeOil,Brent(US$/bbl) 62,43 Ͳ1,5% +1,4% GEL/USD 2,9665 Ͳ0,2% +0,0% will be seen through the privatization of the objects we recently offered GoldSpot(US$/OZ) 1463,98 +0,1% Ͳ1,6% GEL/EUR 3,2698 Ͳ0,2% Ͳ0,8% to businesses,” the Minister said, while commenting on the economic GEL/GBP 3,8344 +0,5% +0,5% INDICES Price w/w m/m GEL/CHF 2,9675 Ͳ0,5% Ͳ0,5% growth and the list of 100 privatization objects published by the ministry FTSE100 7346,53 +0,3% +0,6% GEL/RUB 0,0461 Ͳ0,9% Ͳ0,6% two days ago. FTSE250 20812,60 +1,6% +3,2% GEL/TRY 0,5164 Ͳ0,8% Ͳ0,1% DAX 13236,38 +0,6% +2,3% GEL/AZN 1,7446 Ͳ0,5% +0,4% Georgian Prime Minister Giorgi Gakharia says that the number of jobs, DOWJONES 28051,41 +0,6% +3,6% GEL/AMD 0,0062 ͲͲ NASDAQ 8665,47 +1,7% +4,7% GEL/UAH 0,1239 +0,6% +5,0% education, security, and rapid economic growth are important. He fur- MSCIEMEE 181,08 Ͳ1,5% Ͳ1,5% EUR/USD 0,9076 +0,0% +0,9% ther noted the Georgian economy managed to grow by 5.1% in the last MSCIEM 1040,05 Ͳ0,8% Ͳ0,4% GBP/USD 0,7733 Ͳ0,8% Ͳ0,5% SP500 3140,98 +1,0% +3,4% CHF/USD 1,0002 +0,3% +0,6% 10 months. MSCIFM 2635,56 Ͳ0,4% Ͳ0,4% RUB/USD 64,3190 +0,7% +0,6% GTIndex(GEL) 1582,68 ͲͲTRY/USD 5,7504 +0,7% +0,2% Continued on page 7 GTIndex(USD) 1208,13 ͲͲAZN/USD 1,6997 +0,4% Ͳ0,0% GEORGIA TODAY 2 NEWS DECEMBER 3 - 5, 2019 On the Protests & 2020 Elections he leader of ‘New Georgia’ party Giorgi Vashadze announced that next week the protest rallies will con- @entrepreneur.ge tinue in regions throughout Gamarjoba! I’m the Editor-in-Chief of the Georgian edition of Tthe country. Entrepreneur magazine and I’m here to share the top weekly Vashadze added that the opposition is Entrepreneurial news with you: waiting for the OSCE`s (Organization for Security and Co operation in Europe) conclusion on the draft law created by ‘Chini’ is a new Georgian brand that has just joined the the opposition in regard to the electoral local market offering suitcase hoods that carry the system, after which the date of the most Georgian identity. Maka Gurgeniani and her daughter large-scale rally will be defi ned. Irinka Tsakadze, lovers of traveling, were inspired three "The rallies will initially be held in years ago. After fi nding the right fabrics, atelier, and Kutaisi. We are waiting for the Legal suppliers, the founders decided to put their creation into Issues Committee before we picket Par- patriotic work – making the suitcase hoods the liament. Most likely, this will happen on ‘ambassadors’ of Georgia through the Georgian alphabet, Tuesday, Wednesday, or Thursday," he Georgian fl ag, ‘borderization’, “Georgia is Occupied by Russia” and Georgian painters. said. Chini plans include the expansion of output, as well as themes. On November 30, a meeting between the ruling Georgian Dream party and system. As a result of the elections held reaffi rmed what we have repeatedly said Georgian restaurant ‘Barbarestan’ has found a new parliamentary and non-parliamentary under the proportional system, the seats about the opposition and what our inter- source of acknowledgment. The fi ne-dining place is opposition took place at the Biltmore will be distributed among the political national partners have said- that such a now among the 50 Best Discoveries, a database Hotel Tbilisi. The meeting was also parties and election blocs that receive meeting between the political parties updated every year that helps food enthusiasts fi nd attended by representatives of the dip- at least 3% of votes. The rules and terms would be a good format for exchanging the top 50 restaurants and bars to go to around the lomatic corps. for participation in elections, as well as arguments. Today, it happened. This world. “A traditional family restaurant with recipes This was the fi rst meeting between the the rules for the distribution of seats, meeting has once again shown that the based on those in legendary writer and chef Barbare two sides following Parliament’s rejec- shall be determined by the election law. so-called German model is not in com- Jorjadze’s original cookbook of 19th-century Georgian tion of an electoral bill which offered an In addition, every voter registered in pliance with the Constitution of Georgia, classics. A real chance to discover forgotten but authentic Georgian food in an early transition to a fully proportional a multi-mandate constituency shall have so it is impossible to implement it through interior matched to those times: an eclectic mix of soft lampshades, lace tablecloths, electoral system. the right to give one vote to a majoritar- the form and initiative offered by the and vintage crockery.” The author of the concept, branding, interior design and F&B The so-called German Model of elec- ian candidate and the other vote to a opposition. We do not rule out that such menu of Barbarestan is the team behind ‘Gastronaut’. tions was the main topic of discussion. party. political consultations may take place On November 29, the parliamentary However, the meeting held at the Bilt- in the future. We are ready to continue Babale won the Social Enterprise of the Year and non-parliamentary opposition offered more on November 30 ended without political consultations, both today and title at the 8th Social Enterprise Forum. the government a new model for the results and no agreement was reached in the future,” Talakvadze said. Babale is an outstanding Georgian social 2020 elections. About 30 parties authored on the so-called 'German Model' of elec- United National Movement leader enterprise creating and developing equal the initiative, including European Geor- tions. Grigol Vashadze said the meeting ended work environments for those with special gia, United National Movement, Lelo, Justice Minister Tea Tsulukiani said without results because the ruling party needs. They aim to give these people a Development Movement, Democratic after the six-hour meeting that the “Ger- refused to discuss the electoral model pleasant workplace, to provide them with Movement - United Georgia and others. man model” suggested by the parliamen- offered by the opposition. Nevertheless, professional information, to develop their The leaders of the parties signed the tary and non-parliamentary opposition he said, the opposition is ready to con- working skills, and to strengthen and support document on the same day, noting that is 'anti-constitutional'. tinue a dialogue along with protest ral- them fi nancially. The founder of Babale, Lia the draft will be sent to the OSCE, and “This meeting has once again demon- lies. Tabatadze, started with 10,000 GEL and a very small circle of parents organizing in case of positive recommendation, they strated that the German model is not in "If the government does not intend to small-scale social activities to raise awareness of Down’s Syndrome in Georgian will submit the document as a legislative line with the Georgian Constitution,” agree and discuss any proposal, it means society. They soon began creating high-quality products. initiative to Parliament. Parliament Speaker Archil Talakvadze that the meeting aims just to score points The document reads that the Parlia- said after the meeting. with the diplomats," claimed Nino Bur- Follow the Entrepreneur Georgia Instagram page to get the latest updates from ment shall consist of 77 members elected He said it is possible that political con- janadze, leader of the 'Democratic Move- Georgian Entrepreneurs. For doing business with Georgian Entrepreneurs, write us on under the proportional system and 73 sultations could be held in the future. ment.' [email protected] members elected under the majoritarian "The fi rst meeting took place, which Continued on page 10 GEORGIA TODAY DECEMBER 3 - 5, 2019 BUSINESS 3 Georgia, Azerbaijani & Turkey Inaugurate Historic TANAP Project

2018 with the fl ow of commercial gas BY TEA MARIAMIDZE to Turkey from June 30, 2018. The fi nal mechanical work in the pipeline between Eskisehir and the Turkish- eorgia, Azerbaijan and Greek border was completed at the Turkey offi cially inaugu- end of 2018 with the fi rst test pumping rated the historic Trans held in April 2019. Anatolian Natural Gas The legal framework for the TANAP Pipeline (TANAP) project project was established in 2012. The Gin Ipsala, Turkey’s Edirne province, on fi nal investment decision on the pro- November 30. ject was adopted on December 17, 2013. The Prime Minister of Georgia Giorgi The construction work began in 2015 Gakharia, together with President of following the ground-breaking cere- Turkey Recep Tayyip Erdogan and mony in Kars. President of Azerbaijan Ilham Aliyev, The fi rst phase of TANAP from the participated in the offi cial event dedi- Turkish-Georgian border to Eskisehir cated to the completion of the project. was completed in June 2018. Its open- "The leaders of the countries par- ing ceremony was held on June 12, 2018 ticipating in the project jointly pressed and attended by the leaders of the two a button to launch natural gas from countries. Transportation of the fi rst Azerbaijan to Europe for the fi rst time commercial gas to Turkey began on within this project,” the Georgian PM’s June 30, 2018. The second phase of the Press Offi ce reports. project from Eskisehir to Turkish-Greek Prior to the ceremony, a video clip border was successfully completed by highlighting the implementation of the the end of June 2019. At the fi rst stage, TANAP project, which is one of the 16 billion cubic meters and later 31 bil- most important segments of the South- lion cubic meters of natural gas will ern Gas Corridor and a key factor in Image source: Georgian government be transported through the pipeline. ensuring the energy security of Europe, even more and it is very important for During the event, the Turkish Presi- countries on the Southern Gas Corri- As of today, Georgia gets 5% of the was screened. the country to fulfi ll the function and dent noted that the TANAP is the most dor. "This project brings cooperation, total gas for the transit of Azerbaijani “Honored to attend TANAP Inaugu- role of a bridge not only in terms of important part of the 3,500-kilometer stability, and long-term agreement," gas to Turkey. The transit gas fee ration Ceremony for European Con- economics, politics, society and cul- (2,174-mile) energy corridor which he added. amounts to 300 million cubic meters nection, marking a new era in European ture, but also in terms of energy too. extends from Azerbaijan to Europe. TANAP is the most important link of of natural gas per year for Georgia for energy security architecture. This “When the TANAP project has already He added that Bulgaria, Greece, North the Southern Gas Corridor, designed the transit of 6 billion cubic meters of project will bring more opportunities reached the European borders and Macedonia, Albania, Serbia and Bosnia to transport natural gas produced from gas transported from Azerbaijan to for our people & will strengthen our allows the transportation of Azerbai- Herzegovina would also benefi t from Azerbaijan’s Shah Deniz-2 fi eld initially Turkey. In future, when 23 billion cubic region's role as an East-West energy jani gas through Georgia, of course, the mega project, and that TANAP was to Turkey and onwards to Europe. The meters of natural gas will pass through corridor,” Georgian PM tweeted after Georgia's transit function gains both a project of "regional peace." section of pipeline from the Turkish the Southern Gas Corridor via Georgia, the offi cial ceremony. a political and economic dimension Azerbaijani President Aliyev said the border with Georgia until Eskisehir of the country will receive more than 1.1 Gakharia stated that this project for strengthening and developing our TANAP is an international cooperation Turkey was launched in an interna- billion cubic meters of natural gas as underlines Georgia’s transit function economy,” the PM noted. project that essentially unites seven tional opening ceremony on June 12, a transit fee annually.

AGHMASHENELI AVENUE 178; 0112 TBILISI — GEORGIA; T +995 (32) 222 10 35; F +995 (32) 222 10 73; EMAIL: [email protected] GEORGIA TODAY 4 BUSINESS DECEMBER 3 - 5, 2019

The Retail Trade Sector Optimistic for the Holiday Season

small proportion of businesses that believe their business conditions will worsen.

SALES PRICE EXPECTATIONS The sales price expectations index decreased from 12.9 points (Q3 2019) to 11.3 points (Q4 2019). The descent is mostly driven by a decline in the agri- cultural and service sectors. While, the overall sales price expectations index has decreased moderately for both SMEs and large companies. Around 65% of all ﬁ rms surveyed are not intending to change their prices over

USINESS CONFIDENCE an increase in their INDEX Q4 2019 sales prices remains A signifi cant upsurge in performance After registering a record low high. was observed in retail trade (85.7), ser- business sectors; the one exception being the next three months. Only 6% of fi rms value in the previous quarter, The BCI increased in most economic vice (36.1), construction (31.7), and fi nance agriculture (-38.7). The greatest increase expect to decrease their prices, and the the BCI has recovered by 10.2 sectors, namely in the retail trade (33.2), (13.5). The substantial increase in these was reported in retail trade (40.3). Busi- remaining 29% will consider increasing Bpoints compared to Q3 2019. Expecta- construction (28.1), service (8.5), fi nan- sectors highlights that the weighted bal- ness expectations have, on the whole, their prices in the future. tions in the Georgian private sector cial (4.6), and manufacturing (3.8) sec- ance between positive and negative improved for large fi rms but worsened A lack of demand and limited access increased by 9.5 index points, rising to tors. One exception was agriculture, in responses increased compared to the for SMEs. to fi nancing continue to be the most 31.3. Moreover, business performance which the BCI declined by 33.4 index previous quarter. In the remaining sec- The majority (72%) of the surveyed signifi cant obstacles, particularly for over the past three months has increased points. Business confi dence in the fourth tors, production, turnover, and sales for businesses do not expect any changes SMEs. Large companies also mention a signifi cantly, reaching 26.9 points (up quarter of 2019 has dropped for SMEs the past three months have decreased: in employment over the next three shortage in the labor force as a further from -0.5), indicating an upturn in pro- (-1.5), though it has increased for large in agriculture (-46.2) and manufacturing months. Furthermore, only 15% of fi rms hindrance. duction, turnover, and sales. Thus, the fi rms (12.6). (-46.0). Business activities have improved stated that they would hire more employ- It should be noted that the present BCI rise in both business expectations and Past performance: Businesses’ actual for both SMEs and large businesses. ees in the future. results may be overestimated, as the past performance has led to an increase performance increased by 27.4 points Around 37% of the fi rms surveyed survey only covers businesses currently in the overall BCI. Compared to the pre- compared to Q3 of 2019. In Q4, of the 123 EXPECTATIONS expect the economic condition of their operating and not those that have already vious quarter, the sales price expectation fi rms surveyed, sales (production or The expectations index increased by 9.5 businesses to improve over the next exited the market. Accordingly, fi rms index has decreased slightly; however, turnover) increased from -0.5 (Q3 2019) index points in Q4 2019. Prospects about three months. While, 42% do not imag- still in operation are, to some extent, the share of business owners who expect to 26.9 (Q4 2019). the next three months improved for most ine any changes in the future, leaving a more likely to have a negative outlook. GEORGIA TODAY DECEMBER 3 - 5, 2019 BUSINESS 5 The Washington Times Reports on the Vital Strategic Importance of Georgia

the hegemon of the post-Soviet space”, The Wash- BY BEKA ALEXISHVILI ington Times accurately analyzes the detrimental Russian presence throughout the region. On the other hand, it says, Central Asia shows its economic cross Europe and Asia, geopolitical potential through important policy reforms, while strategies and approaches are read- Erdogan’s Turkey “fl irts with new visions of its justing and, as The Washington Times strategic importance in a non-European future.” reports, they are puzzle pieces which “Georgia has a stable and democratic government “converge in the Caucasus region." that has been working hard to forge closer ties with AThe Caucasus includes three post-soviet nations, Western Europe and the United States, especially which are Georgia, Armenia and Azerbaijan. in recent years. However, this is a route that must Georgia is positioned on the Caucasus land-bridge be navigated with skill and precision,” Wes Martin, between Europe and Asia, between the Black and an analyst for the Washington Times, states Caspian Seas. Over the millenniums, it has been China, Russia, the United States and Europe all attacked by the Persians, the Ottomans, the Rus- pursue opportunities to gain strategic advantage, sians and the Mongolians. Every time, Georgians enhance stability and promote economic develop- have pushed back their invaders, and in harsh fought ment. These strategic routes intersect in the Cau- battles they have liberated their country. After the casus, where all of the key players seek to “develop collapse of the Soviet Union, Georgia surfaced once positions of political infl uence where the North- again an independent, sovereign nation in the midst South and East-West axes overlap,” The Washing- of this unstable crossroads. ton Times writes. “Georgia is the key” of the Caucasus. It is at the As Washington’s relations with Armenia and center of the action and the incentives for the Azerbaijan remain problematic due to the Nagorno- United States could not be higher. China is astride Karabakh confl ict, ongoing since 1988 a “pro-West- Eurasia with its impressive Belt and Road Initia- ern Georgia alongside Israel is America’s most tive. “Russia, in decline, seeks to attach itself to committed, reliable friend and ally in the wider China’s dynamism while preserving a footprint as region.” US Spending Cuts to NATO Will be Used on Georgia and Ukraine

increase, while the US share will decrease. This is BY BEKA ALEXISHVILI an important demonstration of the Allies' commit- ment to the Alliance and to fairer burden-sharing," a NATO ofﬁ cial remarked to the American media. head of NATO’s 70th-anniversary One US defense ofﬁ cial said that the money saved summit, which will take place in Lon- by the US will help fund other US military and don, Trump announced that he will security efforts in Europe, including programs in be decreasing the US’s contribution countries such as non-NATO members Ukraine to the North-Atlantic Alliance. and Georgia, which are seen as being on the front- AUS has maintained and provided 22% of NATO’s line with Russia. direct funding. Now, according to the new formula Trump has long criticized NATO members, par- of separating costs, the US contribution is to fall ticularly Germany for not meeting the 2% (of GDP) to 16%, while Germany provides 14.8%. NATO defense spending target, which only 8 of the "All Allies have agreed on a new cost-sharing 29 members currently meet. All members pledged formula. Within the new formula, cost shares attrib- to reach the 2% level by 2024 but not all of them uted to most European Allies and Canada will currently have plans or the affordability to do so. GEORGIA TODAY 6 BUSINESS DECEMBER 3 - 5, 2019 Finland’s General-Major Harri Ohra- Aho on Hybrid Threats & Russia

INTERVIEW BY VAZHA TAVBERIDZE WHAT’S THE SECRET OF THE FINNISH RESILIENCE? We have to remember that we have had our own liberation war, civil war, in 1918, ovember 30 marked the there were brothers against brothers in 80th anniversary of the Finland and after 20 years we stood Winter War, a David and together to repel an attacker in what we Goliath struggle between call the “Wonder of the Winter War.” That Finland and the Soviet will to defend our country is the main NUnion. Offi cially, Finland lost, and the reason for that resilience and actually USSR seized the Karelian Isthmus, but some way or another both sides, which why is it that the whole world considers had been fi ghting against each other, stood Finland victorious? General-Major Harri together. We understood the behavior of Ohra-Aho shared some of the much- the Soviet Union, the Molotov-Ribbentrop needed Finnish know-how on dealing Pact of 1939 which was signed just before with the big neighbor with the Georgian Germany invaded Poland, and on the 17th Institute for Security. of September the Soviet Union started their invasion and we were part of that WHEN TALKING ABOUT pact so we mobilized all the troops that GEORGIA IN TERMS OF HYBRID we had and joined. I'm very appreciative THREATS, WE BASICALLY of not only the men but also the women MEAN RUSSIA, WHICH IS who participated. THE NUMBER ONE SUPPLIER WHEN IT COMES TO HYBRID YOU MENTIONED THE WILL THREATS TO GEORGIA. IS THE TO DEFEND ONE’S COUNTRY. SAME THE CASE IN FINLAND? HOW MUCH DOES THIS We don't point at any country: we are WILL PERSIST IN MODERN defending our country as a militarily DAY FINNISH SOCIETY? non-aligned country wherever neces- It persists very much because we have Image source: svenska.yle.fi sary, but of course we are following a universal military conscription for look at the Russian leadership now, it’s in the Second World War. We’re talking planes in Finland in January-February events closely. Sweden and Estonia belong males and also on a voluntary basis for no longer a tendency to talk about get- about the will to defend your own coun- in very harsh conditions in Lapland. to the same union, the European Union, females, and when we ask the conscripts ting back Karelian Isthmus; it's not an try: that is the key thing we are trying From the naval side, we have just decided and Norway is one of our best neighbors, “how willing are you to defend your issue anymore. to keep, especially with the younger to purchase Corvettes for the Baltic Sea. which is part of NATO, and of course country from fi ve to one?” it has been generation. We have to keep our con- we are following very carefully what is 4.5 for every contingency. We also ques- BUT LEADERSHIPS CHANGE… scription. Almost 80% of the male pop- DOES ECONOMIC SECURITY happening in Russia, we don't see that tion all citizens in Finland “are you will- Sure, of course, but we really are rather ulation of Finland goes for military train- AND STABILITY PLAY ANY Russia is a “military threat” as such, but ing to defend your country with a weapon realistic, especially in this situation, so ing, and there is family behind those ROLE IN HOW NON- then again we see the situation between in your hand if the outcome is not sure?” sorry to say this, but it's different country. youngsters- everybody is involved some ALIGNED YOU CAN BE? Russia and the West with all the sanc- and it's almost 80% who are willing to way or other to defend the country. We Of course, because the will of the coun- tions, what Russia has done in illegally do so. If you compare that to the whole LOTS OF GEORGIANS MIGHT are only 5.5 million people, so we have try is based on you being willing to annexing Crimea, the ongoing war in of Europe, it is the highest number. LABEL THAT A PESSIMISTIC rather large reserve, it's more than Ger- defend the country you are living in, the eastern Ukraine, and before that what APPROACH WHEN WE many has soldiers. Two hundred eighty social structures, everything. In our happened in Georgia in 2008 and the DID THE FINNISH CONSIDER OUR OWN thousand troops and those with military country, we have rather high taxes but two occupied areas of Abkhazia and POPULATION RECONCILE OCCUPIED TERRITORIES. WHAT training makes 900 thousand; they do we are willing to pay them and that's South Ossetia. THEMSELVES WITH THAT? IS YOUR ADVICE ON THIS? not belong to our defense forces or why we have a free healthcare system, Just after the war, when four hundred I don't want to give advice to other coun- “mobilization” forces but they have train- free education, university education and IN THE PAST, FINLAND ALSO thousand Finnish people were relocated tries. You have a really diffi cult situation ing and, importantly, capabilities in so on. The willingness creates stability. LOST LAND TO RUSSIA. DOES throughout Finnish territory from Kare- that's for sure, and the good thing is that modern military operations. At the same time, the education level is THAT PLAY ANY ROLE IN lian Isthmus, of course they wanted to the countries that have recognized the rather high so we understand the prob- THE PERCEPTION OF RUSSIA move back to their own farms, but the breakaway regions as independent are WHAT ABOUT THE TECHNICAL lems when it comes to hybrid threats. IN FINNISH SOCIETY? time was really diffi cult and dangerous few. International society is with Georgia CAPACITY, MILITARY In fact, Finland has the highest media What our grandfathers and grandmoth- in the last years of the 1940s, after which in that sense. As to what to do to get them EQUIPMENT AND SO ON? literacy in the EU. ers did during the Winter War and Sec- it was really diffi cult for Finland to be a back, I’m not in a position to recommend We are in the middle of replacing our ond World War was very bravely done. neutral country between the rising Soviet your national leadership what to do. hornet fl eet, F-18s, and we now have SO FINLAND IS EVER We were totally alone during the Winter Union and the rest of Europe. We tried more than 60 planes, and long-range READY, EVER VIGILANT. War and then after the war we lost 10% to be realistic and pragmatic, there was FINLAND IS NOT PART OF capability, and the same goes for the Sure. We are ready and we are part of of our land and had to relocate all the a society called the Karelian Society who NATO AND IS A MILITARILY army and navy and we are not yet decided the EU. What the EU has done, the sanc- Finnish people who lived in the area, really promoted the idea that one day NON-ALIGNED COUNTRY. what we are replacing our hornet fl eets tions towards Russia; we are part of it. 400,000 people, all over Finland and of we would go back, but though it hap- WHAT DOES IT TAKE TO with, this decision is going to be made course that was a very sad thing. But pened decades ago, it's ongoing for the BE NON-ALIGNED IN THE in 2021 and we have a few candidates: what was even more important is that second or third generation now and that's MODERN WORLD? the F-35, F-18, Rafale, Eurofi ghter and Jas our independence prevailed. why we try to be pragmatic. When we It has a long history and legacy, starting Gripen. 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carries environmental, protectoral and BY NINI DAKHUNDARIDZE social signifi cance. The investment will improve the reliability, safety and effi - ciency of public transport, and the mod- n November 29, Georgian ern CNG technology will reduce green- Finance Minister Ivane house gas emissions. The project will Matchavariani, Tbilisi City introduce low-floor buses, bringing Mayor Kakha Kaladze and signifi cant social benefi ts by facilitating EBRD (European Bank for easy access for passengers with prams ReconstructionO and Development) and shopping bags, especially women, Regional Director in the Caucasus Cata- and those with limited movement, includ- rina Bjorlin Hansen signed a contract to ing the elderly and the disabled. Moreo- ensure that Tbilisi will get approximately ver, the new buses will improve the safety 200 new ecologically clean CNG (Com- of bus operations. pressed Natural Gas) buses. “The project will fi nance a new bus The abovementioned project is a confl eet of modern 12-meter low-fl oor CNG tinuation of the 2016 contract signed buses and the rehabilitation/moderniza- with the EBRD, which is to provide a tion of bus depots for the city,” reports sovereign loan of 80 million Euros, 65 the EBRD. of which will be used to purchase buses It is noteworthy to say that in 2016, and the remaining 15 million to fund the within the frames of the EBRD project, construction of a bus depot. The project Tbilisi was supplied with 143 ecologically more sustainable buses that run on gas. Matchavariani and Hansen further signed the ‘Urban Transport Develop- ment Program for Georgia’ agreement. Within the frames of this project, the EBRD will provide 17 million Euros of The project will sovereign loans to Georgian state that will be on-lent to the Municipal Devel- Image source: The Ministry of Foreign Affairs of Georgia fi nance a new opment Fund of Georgia. The program is aiming for the development of public Replacing the outdated bus fl eet with The ‘Urban Transport Development €3,466 million in Georgia’s projects, bus fl eet of transportation in 6 big cities of Georgia. modern low-fl oor, low-entry buses is Program for Georgia’ will stimulate the making it the leading institutional ‘Urban Transport Development Pro- expected to have a considerable envi- development of the region, the quality investor in the country. The EBRD has modern 12-meter gramme for Georgia’ will supply Kutaisi, ronmental and social impact. With the of serving the population, and the level a clear direction of focus in Georgia, Rustavi, Zugdidi, Telavi, Gori, and Poti new Euro 5 diesel buses, emissions should of safety when using the public trans- to wit: “In Georgia we focus on sup- low-fl oor CNG with 175 new buses. be reduced by 34%,” reports the EBRD. portation. porting private sector competitiveness “The project is part of the Bank’s broader Simultaneously, the Ministry of Finance Georgia has been a member of the through innovation, developing local buses and the engagement in Georgia’s public transport of Georgia reports that the EBRD is ready EBRD since 1992. Since then, the Euro- currency and capital markets, expand- sector, with investments tailored to the to start looking for funds to do related pean Bank has launched 198 projects ing markets through inter-regional modernization of needs of cities to support reforms and research on current necessities (bus in Georgia, all of them successfully connectivity, and renewable energy, achieve sustainable operations with low- routes, paying systems, etc.) in these contributing to the country’s develop- resource effi ciency and climate change bus depots emission technology. municipalities. ing process. The Bank has invested adaptation.” TBC Capital Presents FMCG Sector Investment Analysis works, will occupy 28% of the market, stores. Where growth was mostly com- BY MARIAM MERABISHVILI which is 10% more than in 2016. ing from capital in previous years, we Expenditure on food and fast-food predict that at this stage the organized products in the local population is pro- market will become more active in the BC Capital presents a sec- jected to rise to GEL 8.1 billion by 2019, regions, driven by increased tourism and ond investment analysis while direct spending on tourism and high activity during the summer.” about the FMCG sector for restaurants will reach GEL 1.3 billion TBC Capital is a TBC Bank affi liate food and fast food products over the same period. and licensed company providing invest- with the aim of discussing “Our research provides a good basis ment banking services to its customers. Tthe current market situation and devel- for identifying the sector's growth poten- In 2017, TBC Capital became a part of oping the potential of the sector together tial,” said Tornike Kordzaia, Head of TBC TBC Bank's corporate and investment with companies and potential investors. Capital Studies. “We predict that sales banking business. The main business According to the survey, by the end of of organized players will increase to GEL areas of the company are: fi nancial con- 2019, the volume of the FMCG sector 5.5 billion over the next fi ve years, that sulting and credit, rating services, bond will exceed GEL 9.4 billion, of which means a 13% increase of organized mar- and stock issuance, investment research organized players - branded trading net- ket share and more than 600 new online and brokerage activities. Georgian Economy Grows by 5.7% in October

Continued from page 1 to create a comfortable environment for it is suffering from inertia,” he said. “It should also be taken into account degree of sustainability of our country's Georgian businesses to be stronger, cre- Tsomaia stressed that such economic that the infl ation rate will be adjusted in economy to negative factors, challenges “Of course it is not enough and we need ate more jobs, generate more profi t and growth is maintained at the expense of the last two months of this year. I do not and circumstances,” the expert said. more growth...We need to help businesses be more widely represented in interna- the state's infrastructure projects, and rule out the need to tighten the monetary To note, the Government of Georgia to operate better, and of course our most tional markets,” he noted. if not for this factor, the economic growth policy too,” Tsomaia said. forecasted a 4.5% growth in the economy important goal is to create strong busi- Economic expert Akaki Tsomaia believes rate would have been much lower. Another economic expert, Soso Arch- in 2019, while the European Bank for nesses that create jobs,” he said. that a 5.7% growth in the economy is “It seems that the number of infrastruc- vadze has a totally different assessment Reconstruction and Development Gakharia added that the government “nothing special or promising.” Accord- ture projects has increased, but it should of the economic growth. According to (EBRD) left the forecast of Georgia’s has fully realized its function to create a ing to him, the average economic growth be noted that borrowed funds are invested him, in October 2019, the country's eco- economic growth for 2019 and 2020 comfortable environment for businesses has been 5% in recent years, and there is in these projects,” Tsomaia added. nomic growth rate remained quite prom- unchanged at 4.5%. to be stronger and to create more jobs. nothing unexpected in the latest fi gure. The future forecast sees the expert ising- a 5.7% pace, exceeding the 0.6 point In addition to this, the World Bank “The economic growth of our country “5% is the rate of economic growth that expecting economic growth to continue average of 5.1 points in the fi rst ten months forecasts 4.6% economic growth in Geor- depends on the private sector. A key a developing country like us would have with inertia in 2020, however, given the of the year. gia in 2019 while the International Mon- component of our country's economic if there are no novelties and innovations tightened monetary policy, he says that “Taking into account the external chal- etary Fund (IMF) lowered the forecasts growth is private business, and the gov- in the economy. It means that nothing Georgia's economic growth rate will be lenges and internal political situation, for Georgia’s economic growth from ernment has fully realized its function new is happening in the economy and below 5% next year. this indicator reaffi rms the very high 4.8% to 4.3%. GEORGIA TODAY 8 BUSINESS DECEMBER 3 - 5, 2019 Georgia to Be Nominated as Candidate for ICC Judge in 2020

Entrepreneur Shop: A New Online Store of Georgian Production ntrepreneur Shop is a new platform of thing that is Georgian, has the best quality and was Entrepreneur, which shares the strategic made with Georgian entrepreneurial spirit. mission of the magazine by continuing The online shop already offers around 200 prod- ferent regions. Among them, one judge will be BY BEKA ALEXISHVILI to support Georgian entrepreneurs ucts of up to 25 Georgian brands, a number that is elected from Eastern Europe, as the term of the through an additional channel – an online ever-increasing. Czech judge is soon set to expire. Georgia will Eshop. Entrepreneur encourages every Georgian brand nominate a candidate for this position, whose Unlike the functioning analogies, the Entrepre- that creates interesting and outstanding produc- eputy Prime Minister, Minister of national competition will be held in full compli- neur Shop will only offer production made by tion to join the Entrepreneur Shop community. The Justice, Tea Tsulukiani, and the del- ance with the Rome Statute and the Assembly Georgian entrepreneurs. online shop will open new doors to member entre- egation of the Justice Ministry left Resolution requirements. In addition to Georgia, “By launching a new online shop we will further preneurs: raising their brands to fame and increas- for The Hague to participate in the the following countries can be nominated from strengthen the entrepreneurial spirit in Georgia, ing their income. 18th Assembly of States Parties of the Eastern Europe: Albania, Bosnia, Bulgaria, Croatia, giving more people an incentive to establish and DInternational Criminal Court (ICC). Czech Republic, Estonia, Latvia, Lithuania, Mon- develop a business of their own,” said George Shar- As the Ministry of Justice states, the main pur- tenegro, Northern Macedonia, Moldova, Romania, ashidze, the Editor-in-chief of the Entrepreneur. pose of the visit is to make a statement on behalf Serbia, Slovakia, Slovenia” writes the Ministry. “Entrepreneur Shop will support Georgian entre- of Georgia to the ICC member states that Georgia During the visit, the Vice Premier of Georgia will preneurs not merely by expanding their sales but will be nominated as a candidate for the ICC judge also meet with ofﬁ cials of the International Crim- also by popularizing their business and raising their position in 2020. inal Court. The lobby of the Ministry of Justice brands to fame. To accomplish that goal, we will “Speciﬁ cally, in December 2020, within the frame- also includes Deputy Minister of Justice, Gocha use every possible platform.” work of the 19th ICC Assembly of States Parties, Lortkipanidze and Head of the Department of State Entrepreneur Shop will unite different services which includes 123 States, 6 vacancies will be Representation in International Courts of the Min- and products in one space. It will include every- selected for the appointment of judges from dif- istry of Justice, Beka Dzamashvili. GEORGIA TODAY DECEMBER 3 - 5, 2019 BUSINESS 9 The Charm of Total Charm When You Want Your Looks Just So

as soon as they see the change in their in motion in 2020, and it will not only looks (no matter if the nose or breasts), meet demand on the local market but the change they have been longing for, will allow products to be exported as an they realize that it was worth the effort. important Georgian brand to foreign The new look gives everyone the kind markets. We have hired German engi- of self-confi dence and a renewed sense neers to help us ensure that the factory of self-worth that every member of our complies with extremely tight and high company so strives to see. technological and quality standards required for the production of the Aptos ARE THERE ANY OTHER TYPES threads. OF ACTIVITIES THAT THE COMPANY IS INVOLVED IN? ANY LAST-MINUTE Total Charm also runs a big learning THOUGHTS OR ADVICE center called Aptos Shop with a large FOR PATIENTS THINKING conference hall. It attracts medical pro- ABOUT PLASTIC SURGERY? fessionals from all over the world. Aptos Well, I would conclude by saying that Shop hosts over 100 doctors every month. before you make up your mind to under- Last week, we had 18 plastic surgeons take plastic surgery, make sure you are and dermato-cosmetologists from Aus- well-motivated and well-consulted. Make tralia learning the Aptos methodology. sure you consult a plastic surgeon before This is the only place where one can making a decision. And once you pick learn this methodology because we, as your doctor, trust your doctor to the very the inventors, own the patent rights to end! Make sure you retain a positive Aptos. Another advantage is that they attitude because it will help you with a can observe the actual application of the speedy recovery. Anyone can look awe- methodology in the operating theater as some, anyone regardless of age, because surgeries are being carried out. age doesn’t matter. What matters is that We also organize Georgia’s largest we never stop believing in ourselves and international conference on plastic sur- never stop loving ourselves and our loved otal Charm is a leading WHAT KINDS OF SERVICE several procedures at a time. For gery—Kolkhida. This year we held our ones. Georgian company known DOES TOTAL CHARM OFFER? instance, we have had cases when I’d 14th event with 650 participants from all for its innovations and Total Charm provides a range of services, be working on breast glands while my over the world. This was a three-day customer-oriented ser- including surgeries (among them vas- father was carrying out abdominoplas- event packed with multiple presenta- vices. Since its establish- cular surgery), dermato-cosmetological tic surgery and my brother on facial tions and live broadcasts of surgical Tment in 1996, the company has been services (the clinic employs 7 derma- lifting – all going on as our gynecolo- operations. growing fast, constantly improving and tologists), and aesthetic gynecological gist was busy working with the same diversifying its products to meet market services that are becoming increasingly patient at the same time! Such a com- DO YOU PRODUCE THE APTOS demand in Georgia and abroad. The popular. In short, we are a large group bination of concurrent services is very THREADS IN GEORGIA? Aptos threads, a trademark product of of professionals who love their work and effi cient and time-saving as it takes Since 1996, we have been using the ser- Total Charm, has already gained unri- who enjoy helping patients with their about 1.5 hours to complete all these vices of a German producer in Berlin, valed popularity. The brand has become rejuvenation efforts. We have lots of procedures. but we are now building a factory in the hallmark of a successful business patients and they are never disappointed. Post-op rehabilitation and recovery Georgia to produce the Aptos threads model, as the company plans to shift the We are also capable of conducting times vary from patient to patient, but locally. We plan to set the new enterprise production of the Aptos threads from Germany to Georgia. Total Charm is also known for its annual international conference that has been drawing hundreds of plastic surgeons from all over the world for learning, research, and development purposes. If you are serious about undertaking plastic surgery or non-invasive procedures to change your looks, Total Charm is a perfect fi t for you to stop the clock! GEORGIA TODAY spoke with Kon- stantin Sulamanidze, the plastic and aesthetic surgeon at Total Charm along with his father and brother, doctors Mar- len and Giorgi Sulmanidze. Konstantin was recognized as the best specialist in the nomination “Best treatment” 2015- 2016, at the International Congress of Aesthetic Direction in Paris- AMEC 2015.

HOW AND WHEN DID YOU START YOUR BUSINESS? The history of this company is also the history of my family. The roots go back to 1996 when my father, Marlen Sula- manidze, a plastic surgeon, invented the Aptos threads, better and more commonly known as the Golden threads. What is Aptos? Aptos is a non-invasive thread and method of face and body lifting, contouring and rejuvenation. The invention served as a great inspira- tion to my family, giving rise to our medical careers. Having spent a number of years in Moscow, where I graduated from a local university to become a plastic surgeon, my family returned to Georgia in 2008. Here, we established a large clinic – Total Charm, which has been growing and expanding its services ever since. GEORGIA TODAY 10 BUSINESS DECEMBER 3 - 5, 2019 ARDI Develops Partnership with Acibadem Healthcare Group, a World-Renowned Hospital Network

eorgia’s leading insurance the world's leading, top-quality medical insurance companies provide coverage company ARDI and the services and cutting-edge approaches. only within Georgia and we want to world-famous hospital “We believe in Georgian doctors and change this practice by giving our cus- network Acibadem Health- we believe in the Georgian health sys- tomers greater choice should they decide care Group signed a mem- tem. We have very good Georgian doc- to seek treatment abroad. And if they do Gorandum affi rming that the latter has tors at Acibadem. Acibadem is still look- so, they will be able to obtain world-class become the network provider for ARDI, ing for more opportunities to collaborate services in Turkey’s leading clinics. allowing Insureds at ARDI to receive with Georgia. This agreement between treatment in Turkish clinics chain. ARDI and Acibadem is very important DOES IT MEAN THAT THE This collaboration is an unprecedented for us and for all ARDI insureds, to have COST OF YOUR CUSTOMERS’ event in the Georgian insurance market, an easy access of highest quality health- PREMIUM WILL INCREASE? giving all those insured by ARDI a unique care services promptly and with support The service will be automatically added opportunity to, by using insurance cards by their INSURER” - said Murat Pekm- to the package for those already insured purchased in Georgia, take advantage of ezoglu, MD, CIS Region Investments by us and included in the package (at no the services offered by the leading health- and Business Development Director of additional cost) for those who will become care center. Acibadem Healthcare Group. our customers in the future. For ARDI’s Acibadem Healthcare Group, which Following the ceremony affi rming the customers, the difference usually lies in has developed rapidly since 1991 to new partnership, GEORGIA TODAY the levels of limits assigned to different become one of the leading institutions spoke with Japaridze Mikheil, Executive insurance policies. Legally, there is very in Turkey within the fi eld of private Director of ARDI. little difference, if at all, between the healthcare services, operates in four fi nally, co-funding in accordance with weight correction and bariatric surgery, various types of policy. ARDI has been countries with 21 multipurpose hospitals the terms of their individual insurance transplantations of organs and tissues. HOW LONG HAVE active on the Georgian market for almost and 16 outpatient clinics. plans and based on prices of leading As part of this collaboration, ARDI's THE NEGOTIATIONS ten years, and we have remained true to ARDI Global, an international service medical clinics/hospitals in Georgia for clients will benefi t from a full package BEEN GOING ON? this principle throughout this time. Our center specifi cally designed for this pur- the same services. of additional services: second medical The negotiations have been going on for customers are free to choose where they pose, is designed to provide ARDI cus- ARDI’s customers will now have full opinion (SMO) completely free of charge; months. We’ve had to discuss a range of would like to get the needed service. tomers all the services they need to be access to ARDI's co-sponsored medical meeting at the airport; free transfer from issues and details to ensure that our ser- Also, all the preceding, preparatory pro- treated in Acibadem clinics. It is enough services as well as a privileged 15% dis- airport / hotel to clinic and vice versa; vices and products are customized to cedures (for which customers usually for the insured to contact the interna- count on Acibadem's services, such as personal Georgian-language manager the needs of the local market and clients, need to incur additional expenses) to tional service center [email protected] and surgical treatment, hospital therapy, services at the clinic; 30% discount on taking into account the specifi cities of organize and agree the details of medi- they will receive: complete management oncology, neurosurgery, cardiology, travel insurance policy of any term. Georgia’s health system and insurance cal services out of country are free for of medical services; remote review of gynecology, urology, orthopedics, disease This initiative, using a Georgian insur- sector. One important decision made our customers. By sending one simple individual patient cases online; prepara- prophylaxis, and robotic operations ance card in international medical pro- was that all our clients, current and initial request at following email address, tion of all the necessary documents from (cyber knife, Da Vinci). The 15% discount viders, launched by ARDI in 2015, con- future, will receive an additional service, [email protected] organization of full ser- various medical clinics and laboratories will likewise apply to services that are tinues to develop and envisages offering i.e. coverage of medical services received vice pack would be started by our highly in Georgia; full planning of services to not commonly covered by a standard many exclusive innovations to its clients in Turkey’s renowned and advanced qualifi ed international medical service be received in Turkey, if necessary; and insurance card, such as plastic surgery, in future, including constant access to medical facilities. As a rule, Georgian team. On the Protests & 2020 Elections Hollywood Studios Threaten Georgia with Continued from page 2 As noted before the meeting, protests Sanctions for Internet Piracy will continue countrywide. In addition, they do not exclude a second round of negotiations with the authorities. Euronews issued an article on the endur- ing protests in Tbilisi, relating to the demand for electoral reform. The title of the article is: “Tbilisi protests: Why do tens of thousands of Georgians want early elections?”, and it provides an overview of the demonstrations and what they entail. “For two weeks, protesters in Georgia have blockaded the country’s parliament building in demonstrations over electoral reform that have brought tens of thousands to the streets. Activists want to see a reform of the election system scheduled to come into force in 2024 brought forward by four years, allowing the country to shift from a so-called single-mandate constituency to one based on proportional representation. They say that the current system favors the ruling Georgian Dream party, which is headed by a former prime minister and Georgia’s richest man, Bidzina Ivan- ishvili.” states the article. Currently, Georgia uses a mixed electoral system, in which politicians are elected through proportional representation but not enough constituency seats, and in the end, it automatically favors the ruling party. To successfully imple- not used to be very strict, laying ground Corporation: Sony Pictures Entertain- “The MPA salutes the progression that BY NINI DAKHUNDARIDZE ment the proportional representation for movie piracy online platforms to ment Inc; Universal City Studios LLC; has been made regarding the reduce of system, the entire country must be treated become very popular. Now, although the and Warner Bros. Entertainment. The movie piracy and looks forward to legal as a single constituency and the voters law is getting stricter against online letter addressed to NIPCG Chairman establishments that will make high qual- must vote nationally on party lists. nline copyright piracy is piracy, thanks to the work done by Lobjanidze claims that movie piracy ity content available for Georgian view- “The protests have spread to other cit- the practice of illegally National Intellectual Property Center of remains a signifi cant problem for the ers,” he goes on. ies, including Mtskheta, Zugdidi, Poti, reproducing and sharing Georgia (NIPCG), movie piracy sites are members of the association and some “The MPA also looks forward to seeing Telavi, and Ozurgeti, where protesters information on the inter- so normalized in the Georgian concep- Georgian platforms are contributing to how local rights-holders and interna- have locked the gates of municipalities net, such as movies or tion that the majority of people genuinely the expansion of the problem. tional partners can work together to and government buildings. The actions Osoftware. Internet Piracy is one of the don’t see why people would pay for Net- “As the industry grows and expands promote the availability of legal, high have been condemned by the country’s most alarming growing problems in the fl ix and similar platforms to watch mov- across multiple markets and mediums, quality content for Georgian viewers. prime minister. Since then, dozens have modern technological world. Worldwide, ies when they can do it for free on Geor- the MPA's global mission to support the We recognize the work done by the been arrested and police have used water users made a total of 300 billion visits gian websites like Adjaranet and business of storytelling and protect those National Intellectual Property Center of cannon to disperse protesters outside the to internet piracy sites in 2017, and the iMovies. That might change now that who work in the industry is becoming Georgla as an important driver to achieve parliament building in Tbilisi. On Tues- number doesn’t seem to be dramatically the President and Managing Director of ever more crucial. Reducing piracy con- that objective,” his letter concludes. day, huge steel gates were erected around dropping anytime soon. While the eco- the Motion Picture Association in the tinues to be a key priority for us and The letter is merely a warning. How- the parliament building to keep demon- nomic losses because of online piracy EMEA region (MPA EMEA) Stan McCoy enforcement is a necessary and impor- ever, if the State fails to address the strators away. It isn’t the fi rst time in 2019 speak billions in numbers, its no less has written to the Chairman of NIPCG tant step to achieve this priority. In problem correspondingly, the Associa- that Georgia has been rocked by street concerning that 70% of online users Genadi Lobjanidze. Georgia, services such as adjaranet.com tion will put sanctions on Georgia in the protests. Back in June, thousands took to report they fi nd nothing wrong with it. The MPA represents global creators and imovies.ge, which make available form of delays or cancellation of movie the streets after a lawmaker in the coun- How does Georgia fi t into all this? and distributors of audio-visual enter- movies from MPA member companies and TV premieres. This, of course, will try addressed the parliament in Russian, For most of Georgians movie piracy is tainment, the members of which are: without their consent, present a signifi - not affect Georgia’s economy positively, provoking anger in a country with tense a part of their every-day routine. First, Walt Disney Studios Motion Pictures; cant problem,” reads the letter of Mr. not to say anything about the country’s relations with Moscow,” reads the article. the laws protecting copyright rights did Netfl ix Studios, LLC: Paramount Pictures McCoy. image. GEORGIA TODAY DECEMBER 3 - 5, 2019 SOCIETY 11 Tbilisi’s Car Problem

city, and the bad air quality prevents tributor to the increase in global carbon OP-ED BY ESPEN GAMLUND many people from going outside, espe- emissions from 2010 to 2018. The shift PROFESSOR OF PHILOSOPHY cially people with asthma. towards SUVs, which is also seen in UNIVERSITY OF BERGEN, NORWAY This brings me to the second problem Georgia, has outweighed both effi ciency of cars – they pollute the air. With eco- improvements in smaller cars and car- nomic development comes both benefi ts bon savings from electric cars. Car am a visitor to your country. I and burdens. Among the burdens is air manufacturers plan several electric mod- come from Bergen, Norway, but pollution. Studies show that the air in els in the coming years, but this will not this year I’m living in Tbilisi with Tbilisi is becoming more and more pol- have its intended benefi ts unless there my family. Georgia is interestingly luted. In fact, Tbilisi is on the list of cit- is a decrease in fossil fuel vehicles, espe- different from Norway, and I very ies in the world where air pollution is a cially SUVs. Imuch appreciate living here. Among critical problem. The health effects of These three problems contribute to a other things, your hospitality, culture, air pollution are undisputed and serious. fourth. Georgia has seen a rise in tour- food and wine are amazing. But Georgia One third of all deaths from lung cancer, ism over the past years, and people from has one big problem. The cars. I have stroke and heart disease are caused by all around the world now come to appre- observed this problem in several parts air pollution. If you add to that the effects ciate everything your country has to of the country, for example in Batumi of smoking tobacco – which is also a offer. However, there is reason to worry and Kashuri, where I have stayed for serious health issue in Georgia – the that cars and car traffi c will have a neg- shorter periods of time. But I think the picture looks bleak. The percentage of ative effect on tourism. With cars parked problem is particularly acute for Tbilisi. deaths attributed to air pollution is very everywhere, increasing traffi c jams, and The cars occupy the city. Since I visited high in Georgia compared to other coun- polluted air, people may not want to visit Tbilisi for the fi rst time in 2015, the situ- tries. Georgia. This is bad news indeed. ation has worsened. Third, car traffi c not only pollutes the air locally, but also contributes to the WHAT SHOULD BE DONE? FOUR PROBLEMS global problem of climate change. We I realize that I may come across as some- As I see it, the cars of Tbilisi represent know that the main trigger of climate one who is coming to your country only four interrelated problems. First, they change is the burning of fossil fuel. Since to complain about the sad state of affairs take up a lot of space in the city. The this is a global problem, solving it will for cars here. Perhaps some even think cars are parked everywhere, not only on require the joint efforts of countries that I am moralizing about how you have the streets but also on the sidewalks worldwide. Unfortunately, time is run- handled this problem. But I am writing where people walk, outside of shops, on ning out, and unless we act fast, there is this because I care about Georgia, and play areas, etc. The boundary between a danger that we will not be able to pre- in particular about Tbilisi. My wife is street and sidewalk is almost non-existant vent catastrophic climate change. This Georgian, and we have family here. in many places. This is striking to some- raises a question about what role Geor- Moreover, I don’t think I’m only speak- one who is used to car parking in desig- gia will play in the fi ght against global ing for myself. I see the daily disadvan- nated parking areas. In Norway, you warming. tages of car traffi c for Georgians. Many cars is not unique to Tbilisi. It is a prob- so that cars don’t occupy pedestrian would get fi ned for parking on the side- There are some signs that Georgia is of them fi nd it very hard to move in the lem we fi nd in many cities around the zones. This will require considerable walk. taking steps to reduce air pollution and city because of the traffi c. The increas- world, and one which is caused by mod- infrastructure improvements. Also, such We live in the Didube district where to mitigate climate change. As in many ing number of traffi c jams also means ern urbanization. It is a challenge to a car parking system will need to be there is a lot of car traffi c. I dare say that other cities around the world, Tbilisi has that it takes time to travel around in urban planners and others trying to fi nd regulated, where people who fail to com- in terms of getting around the city, there seen a greening of cars. The recent taxi Tbilisi. The opportunity costs of people modes of living where cars and people ply are fi ned. is one Tbilisi for people without chil- reform is an example of a step in the not being able to move around in the can co-exist. In order to combat traffi c jams, it’s dren, and one for people with children right direction. There are now many city are probably considerable. I think we need to imagine a new Tbi- necessary to improve public transport. (or for handicapped people). We have hybrid cars in Tbilisi, and environmen- I am not judging you for failing to tackle lisi where the cars are not dominating The introduction of new buses is a step two small children, so we often use a tally friendly buses are replacing the old this problem adequately. In my home- the city. What concretely can be done? in the right direction, but more needs to stroller. This is a living nightmare. Because yellow buses. These are all positive town, Bergen, cars also cause many Some cities have tried to introduce a be done. Moreover, Tbilisi desperately many cars are parked on the sidewalks, developments. However, they are over- problems, among them air pollution. Our ban on cars with odd or even numbers needs pedestrian zones, green zones, it is sometimes very diffi cult to move shadowed by the fact that a large per- politicians are, in my opinion, not doing at the end of their registration on days and ideally also bike lanes. There are around in the city. We are often forced centage of Tbilisi’s citizens use private enough to combat the situation. As citi- with poor air quality. In my hometown understandably very few bikers in Tbi- onto the streets with our children because cars as their preferred means of trans- zens we can try to infl uence politics by Bergen, this had some effect, but only lisi, but bicycles are an environmentally the cars are parked in our way. This is port. The number of private cars has voicing our opinion. Here, I am trying temporarily. I’m not sure this would work friendly mode of transport. Norway leads very uncomfortable and also dangerous. increased considerably over the past to bring attention to what I see as a major in Tbilisi. Given that there is a need to the way when it comes to electric vehi- I am aware that cars are valuable to decade. In fact, it is reported to have problem for Tbilisi. The city desperately reduce the number of cars here, one cles, but many Norwegians also use many citizens of Tbilisi. They are an almost doubled in the last fi ve-year needs a new car policy. should consider various incentives that electric bicycles. This generates both important means of transport, and indis- period. Tbilisi is of course not the only city would make it more diffi cult for people environmental and health benefi ts. pensable to many in their businesses. Even though many countries in recent in the world with a car problem. Pri- to buy and own a car. As a matter of fact, The future modernization of Georgia But these benefi ts need to be weighed years have replaced fossil fuel cars with vatization of cars has taken place in too many cars are imported to Georgia and Tbilisi requires a serious effort to against the costs. Despite its benefi ts, hybrid and electric vehicles, the effects many parts of the world in the past each year. Higher taxes would presum- deal with the car problem. Imagine peo- car traffi c contributes to reduced life have been miniscule. According to a decades, and many countries face the ably have some effect on the number of ple driving electric cars and bicycles in quality for many citizens of Tbilisi. It recent report from World Energy Out- same challenges as Georgia. Moreover, imported cars. Furthermore, a new sys- Tbilisi? It could happen. Let’s hope it makes it diffi cult to move around in the look, SUVs were the second largest con- the confl ict between pedestrians and tem of car parking must be put in place does! The Cartu Bank Case deprived of the right to hold a public BY ANA DUMBADZE offi ce for 2 years and 3 months. Nika Melia said that the case is politi- cally motivated and serves only one goal, he Tbilisi City Court on to get him out of Parliament. Thursday sentenced former Speaking to reporters, he described the Justice Minister Zurab Ade- case as 'absurd,' noting that 25 people ishvili to 5 years and 3 had been charged in the case of Cartu months of imprisonment so far, however, after seven years, "the Tin Cartu Bank's bankruptcy case. legal proceedings against them were Zurab Adeishvili and Nika Melia, a stopped and only he was prosecuted." member of the United National Move- He also added that Bidzina Ivanishvili ment (UNM), were charged in the men- sees that the vertical of his power has tioned case in 2013. collapsed, and the cases against him The two are accused of abuse of power [Melia] are only aimed at getting him and hiding property through fraudulent out of Parliament. transactions in the case of Cartu Bank. As for the second case in which the The opposition leader Nika Melia was opposition MP is accused of leading and acquitted in one episode of Cartu Bank's engaging in group violence during the bankruptcy case, while he was found June 20 rally, he says, "Ivanishvili must guilty in another episode: abuse of power. realize that no criminal case can stop Nika Melia. Source: OC Media He was fi ned GEL 25,000 and was also any opponent and activist."

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