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Tbilisi, Traffic and Urban Design THE FUTURE TBILISI’S TRAFFIC BRAIN DRAIN? OF OLD TBILISI NIGHTMARE NOT IN GEORGIA Investor.geA MAGAZINE OF THE AMERICAN CHAMBER OF COMMERCE IN GEORGIA ISSUE 42 DEC.-JAN. 2014/15 Tbilisi, Traffic and Urban Design DECEMBER-JANUARY/2014-15 • Investor.ge | 3 Investor.ge CONTENT 6 Investment News A short summary of major investment news as published in the media and on official websites. 9 Kakha Bendukidze: Building a legacy for the next generation An interview with Vato Lejava, the chancellor of the Free University of Tbilisi and one of Kakha Bendukidze’s close associates. 11 The Next Frontier- Developing the Georgian Work Force 20 Brain drain is not a major issue in Georgia, thanks to the efforts of the public sector and private businesses to train and attract the country’s best. 15 High Education in Georgia: Room for Growth An analysis of the current situation in Georgia’s universities by Grant Thornton’s Nikoloz Akhalaia 20 Tbilisi, Traffic and Urban Design Investor.ge looks at how Tbilisi’s current city hall envisions the city’s future – as well as how specialists believe it 26 should be developed and what is actually happening on the ground – in this series of articles. 22 Tbilisi Mayor Davit Narmania: The capital is open for business 24 Tbilisi’s Traffic Nightmare: A perfect storm of planning, pollution and popular culture 26 The Future of Old Tbilisi The capital’s historic district is facing a myriad of 43 problems, not the least of which is the lack of a clear strategy for its future – or the legal basis for residents to advocate for its preservation. 30 The Economics of Preservation 31 Developing Tbilisi’s Suburbs 36 A Better Tbilisi Investor.ge spoke with four Tbilisians who have been vocal advocates for action to help our city be its best. 38 If You Build it, They Will Come New road projects are key to investment outside of the 46 capital. 40 Georgian Designer George Shaghashvili: A color-rich love affair 54 NEWS ...... 42 4 | Investor.ge • JUNE-JULY/2014 DECEMBER-JANUARY/2014-15 • Investor.ge | 5 BOSCH TO OPEN NEW grow as much as fi ve percent next year, Investment WAREHOUSE IN TBILISI the government-run agenda.ge website German manufacturer Bosch is reported on November 27. scheduled to open a new warehouse in “The economic impact of geopoliti- Tbilisi in December, the Georgian gov- cal tensions has been contained so far, ernment-run agenda.ge website reported. given Georgia’s growing (but still lim- NEWS The 1,600 square meter warehouse ited) trade links with Russia and increas- will start working on December 16 ing remittances from Southern Europe. and will be operated by Austrian-based All of the program’s quantitative targets transportation and logistics company Ge- for end-September were met,” IMF said. A SHORT SUMMARY bruder Weiss. Up until now, clients had “Overall spending has been broadly OF MAJOR to wait “two or three weeks” for products in line with expectations but its compo- INVESTMENT NEWS to arrive from a warehouse in Germany, sition has shifted from capital to current AS PUBLISHED IN according to a quote on Bosch’s website expenditure, pointing to the need to from David Oker, Bosch commercial strengthen project appraisal and pro- THE MEDIA AND ON director in Georgia. curement.” OFFICIAL WEBSITES. He added that Tbilisi would become The international fi nancial body also a regional logistical hub. noted that the budget defi cit would be “Tbilisi’s warehouses will ensure a slightly below 3.7 percent of GDP. good delivery performance as well as fast and cost-effective handling of Bosch GEOSTAT: GEORGIAN FOREIGN products in the region,” he said. TRADE UP TEN PERCENT “Bosch believes that Georgia’s Georgia’s foreign trade was $9.4 construction sector is developing very billion in the fi rst ten months of 2014, fast; thus, establishing a warehouse in ten percent higher than the same period Tbilisi will further support the sector’s last year, website DF Watch reported in development.” November, quoting statistics published by the offi cial statistics body, Geostat. EU ALLOCATES THE GRANT OF 30 Exports were up fi ve percent, the MILLION EUROS FOR GEORGIA website noted, to $2.4 billion. Brussels has earmarked 30 million Trade turnover with Europe was $2.5 euros for regional development in Geor- billion, up seven percent from last year. gia, Prime Minister Irakli Gharibashvili’s Top trading countries for the fi rst ten offi cial website reported on November months of 2014 were: Turkey – USD 1.6 18. billion (20 percent of turnover), Azer- The funds will be used “support baijan USD 983 million (10 percent) Georgian regional development strategy and China USD 682 million (7 percent). and implementation of economic and Russia, Ukraine, Germany, Armenia, US, social support programs in the regions.” Bulgaria and Japan also top of the list of The deal was announced during trade partner countries, Democracy and Gharibashvili’s offi cial trip to Brussels. Freedom Watch said. “The most exported type of product is IMF: ECONOMIC GROWTH IN used cars, which accounts for 19 percent GEORGIA COULD REACH 5 of all exports. PERCENT IN 2015 Next on the list is ferroalloys with The International Monetary Fund 10 percent, and copper ores and concen- announced the Georgian economy could trates 9 percent,” the website reported. 6 | Investor.ge • DECEMBER-JANUARY/2014-15 KAKHA BENDUKIDZE: Building a legacy for the next generation INVESTOR.GE SPOKE WITH VATO LEJAVA, THE CHANCELLOR OF THE FREE UNIVERSITY OF TBILISI AND ONE OF KAKHA BENDUKIDZE’S CLOSE ASSOCIATES, ABOUT THE IMPACT BENDUKIDZE HAD ON GEORGIA AND THE FUTURE OF HIS LEGACY PROJECTS, THE FREE UNIVERSITY AND THE AGRICULTURAL UNIVERSITY. uch has been written about and second I think he has infl uenced how university was such a place that could the late reformer Kakha we think about economy and the state in combine these three and also give the MBendukidze since his death general. He broke many taboos.” students the possibility to get knowledge, was announced on November 13. But Bendukidze’s most lasting legacy to learn how to work or to labor, and to He has been credited with bringing could be the two universities he created understand what freedom means,” he libertarianism to Georgia and spearhead- after leaving public service, Lejava said. said. ing the reforms that helped catapult the Bendukidze, he said, first started country’s economy growth during the speaking about creating a university PASSING THE TORCH Saakashvili administration. in 2006 – at the height of his tenure in Even though Bendukidze passed public service.“We have an expression in away much earlier than anticipated, A LEGACY FOR GEORGIA’S Georgian – sashvilshvilo – so something Lejava said he laid the foundation for “GRANDCHILDREN” you do for your grandchildren, not for his work at the universities to continue. Bendukidze made a lasting impact your children, but for your grandchil- “Of course I cannot say it will be on Georgia in the last decade of his life, dren,” he said. “He was referring to this business as usual. It is not business as Vato Lejava said. project always like that. He was sure it usual. But on the other hand, when he Lejava - the chancellor of the Free was something that should last far be- was talking about it – discussing the uni- University of Tbilisi - said: “Imagine if yond his life time.” versity and discussing his ideas about the in 2004 Bedukidze would not have come The Free University and the Agri- university – this was always something to Georgia, would Georgia be a different cultural University were a place for him which had the horizon longer than one country today? I think it would have been to put his motto – knowledge, labor and man’s lifetime,” he said.“It was not made a different country for two reasons. First, liberty – into practice, Lejava said. for the short period or medium term.” for the reforms that have contributed to “His famous saying was knowledge, Lejava added: “Of course, no one the economic performance and growth labor - toil - and freedom. I think the can replace Kakha and we will miss– 8 | Investor.ge • DECEMBER-JANUARY/2014-15 CAPITAL DECEMBER-JANUARY/2014-15 • Investor.ge | 9 not only the university but society as well will miss – his ideas which could Kakha Bendukidze, Reformer have born in the years to come, but this is already, unfortunately, sadly, is just Kakha Bendukidze was a large man who fi t easily speculation now.” into superlatives. But he said the university and the He was the visionary who came home; the voice administration are committed to con- of Georgian libertarianism; the biologist who could tinuing and trying to uphold the mission see the potential in ruined things, whether they be the crumbling carcasses of an old university or the failing Bendukidze started: providing a quality economy of his homeland. education to create Georgia’s future. He was also famous for his footwear, for always fi nd- “I am explaining this in this way: ing time for journalists, for saving the political cartoons maybe the genius thing is to invent an en- that lampooned him, for appreciating a good joke – gine. But to run the car with that engine, even if he was the subject. you need a good driver, or good engineer He pushed Georgia out of its post-Soviet lassitude and was seemingly unscathed by the controversy and or a good manager. This is how things criticism his reforms generated. happen in the world,” he said. Born in 1956, Bendukidze moved to Moscow for “There are innovators and geniuses post-graduate studies in biology after he received his who really do something but if these are degree from Tbilisi State University in 1977.
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