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Issue no: 878/44 • SEPTEMBER 13 - 15, 2016 • PUBLISHED TWICE WEEKLY PRICE: GEL 2.50

In this week’s issue...

US Wine Experts Visit PAGE 2 Do Teachers Respond to Incentives? A Philanthropic Experiment in Sachkhere Reveals All FOCUS ISET PAGE 4 Best Georgian ON BANKING Wine on Show TBC Bank becomes largest Georgian bank by Loans & Deposits PAGE 3 at Prestigious Speciality & Fine Food Fair, New University Town to Be Built in Kutaisi London PAGE 5 lion, fully fi nanced by Cartu BY NINO GUGUNISHVILI Fund. With a capacity of 60,000 Mozaika Holding: students, the university town new university in Kutaisi will have 140 hec- 8 Years in the town is planned tares of land, making it a home for Kutaisi, for future top professionals in Advertising western Geor- all fi elds, something much Business gia, set to be the needed for the fast growth of Alargest of its kind in the Cau- the country’s economy. PAGE 6 casus region. Equipped with The new university complex modern infrastructure and is expected to receive its fi rst new laboratories, it will be an students in 2019. WHERE to educational-scientifi c center Cartu Fund will fully fi nance for the western part of Geor- all works related to the con- Go, Stay, Eat, gia, as well as for the wider struction and technical equip- region. ping of the Kutaisi University Drink, Buy in The total budget for the new complex and the Tech- university town, as well as for nological Institute, and will September the Tbilisi-based Techno- hand over full ownership of logical Institute, is EUR 1 bil- both to the State. PAGE 8

Prepared for Georgia Today Business by Markets Asof09ͲSepͲ2016 STOCKS Price w/w m/m BONDS Price w/w m/m BankofGeorgia(BGEOLN) GBP30.44 +3,8% +3,6% GEOROG04/21 105.56(YTM5.37%) +0,3% +0,9% GHG(GHGLN) GBP2.92 Ͳ0,9% Ͳ3,2% GEORG04/21 112.55(YTM3.86%) +0,3% +0,7% TBCBankGroup(TBCGLN) GBP11.00 Ͳ3,3% na GRAIL07/22 113.06(YTM5.13%) +0,7% +1,1% BGEOLN07/23 103.25(YTM5.43%) +0,4% +1,9% COMMODITIES Price w/w m/m CrudeOil,Brent(US$/bbl) 48,01 +2,5% +6,7% CURRENCIES Price w/w m/m GoldSpot(US$/OZ) 1327,83 +0,2% Ͳ1,0% GEL/USD 2,3100 +1,0% Ͳ1,6% GEL/EUR 2,5964 +1,9% Ͳ0,5% INDICES Price w/w m/m GEL/GBP 3,0648 +0,5% +0,4% FTSE100 6776,95 Ͳ1,7% Ͳ1,1% GEL/CHF 2,3679 +1,4% Ͳ0,8% FTSE250 17894,19 Ͳ0,7% +1,2% GEL/RUB 0,0356 +1,7% Ͳ1,7% DAX 10573,44 Ͳ1,0% Ͳ1,1% GEL/TRY 0,7779 +0,4% Ͳ1,7% DOWJONES 18085,45 Ͳ2,2% Ͳ2,4% GEL/AZN 1,3863 +2,7% Ͳ2,0% NASDAQ 5125,91 Ͳ2,4% Ͳ1,9% GEL/AMD 0,0049 +2,1% Ͳ MSCIEMEE 129,85 +1,8% +1,0% GEL/UAH 0,0866 +0,9% Ͳ8,5% MSCIEM 909,32 +1,1% +1,1% EUR/USD 0,8903 Ͳ0,7% Ͳ1,0% SP500 2127,81 Ͳ2,4% Ͳ2,5% GBP/USD 0,7538 +0,2% Ͳ2,0% MICEX 2028,25 +1,2% +3,7% CHF/USD 0,9756 Ͳ0,5% Ͳ0,6% MSCIFM 2538,64 Ͳ1,1% Ͳ1,8% RUB/USD 64,8310 Ͳ0,5% +0,2% GTIndex(GEL) 841,46 Ͳ0,1% Ͳ0,1% TRY/USD 2,9688 +0,6% +0,0% GTIndex(USD) 720,40 Ͳ0,7% +1,4% AZN/USD 1,6675 Ͳ0,7% +2,6% GEORGIA TODAY 2 BUSINESS SEPTEMBER 13 - 15, 2016

Photo: US wine experts taste Georgian wines. Source: Georgian Wine Agency

US Wine Experts Visit Georgia

inwork, the quality of Georgian wine is wine tourism in Georgia,'' she said. elsewhere,” Samanishvili said. delegates from 42 countries and more BY THEA MORRISON increasing by the year. She also noted The Head of the National Wine Agency, He also highlighted the fi rst Interna- than 150 organizations. that the quality of many commercial and Giorgi Samanishvili, noted that the pres- tional Wine Tourism Conference organ- According to the Georgian Wine Agency, non-commercial wines has reached entation of Georgian wine to American ized by the UN World Tourism Organi- the data of the last 8 months shows that n the frames of a one-week wine international standards. wine professionals is much needed, as zation (the UNWTO) and noted that this 172 thousand bottles (0,75l) of wine have tour, a ten-member group of wine “The quality and desire to produce the US is one of the increasingly impor- event not only served to promote tourism been exported from Georgia to the USA, experts from the United States of very high quality wine at a world-stand- tant export markets for Georgian wine. and Georgian wine, but also increased a result 10 percent higher than last year. America (US) visited Georgia. ard level is on the up in Georgia,” she He went on to say that Georgian wine awareness of the country as a whole. The group was led by international said, adding that such tours as this latest is not well-known on the US market yet “It is very signifi cant that the fi rst global EDITOR'S NOTE: Within the printed ver- Iwine master Liz Granik and saw the aim to raise awareness of Georgian wine but that he hopes, as a result of such wine conference was held in Georgia sion of story "Feast in Karabakh Causes guests visiting Georgian wine companies in the US and help to introduce tradi- visits and collaboration with American because wine tourism should start in the International Scandal" on Sept. 9th and small wineries in the Kartli and tional Georgian wine-making methods experts, Georgian wine will become homeland of wine,” he said. "Nagorno-Karabakh Republic" appeared without the quotation marks. This was an Kakheti regions for wine tasting. to foreign professionals. better-known there. The fi rst International Wine Tourism editorial mistake and in no way suggests According to Granik, who is the Head “This will eventually contribute to the “Experts tasting wines on location is Conference was held in Georgia on Sep- our recognition of said location. of Georgia’s contractor company Tast- growth of export of Georgian wine, and quite different from reading about it tember 7-9 with the participation of 250 GEORGIA TODAY SEPTEMBER 13 - 15, 2016 BUSINESS 3 World Car-Free Day TBC Bank Acquires 94% in Tbilisi Announced Stake in Bank Republic, Becomes Largest Georgian Bank by Loans & Deposits

BY KATIE RUTH DAVIES

BC Bank has acquired a 93.64 percent stake in JSC of the frequent and common use of old Bank Republic for GEL 315 BY NINO GUGUNISHVILI vehicles in the city and within the million and selected assets country as a whole. and liabilities of JSC Pro- “Let’s see what our city looks like Tgress Bank, creating the largest Georgian bilisi plans to participate without air-pollution and noise! Tbilisi bank by both loans and deposits. in a World Car-Free day is not a city of cars, it’s our city,” stated TBC Bank Group PLC (TBC Bank) campaign on September the organizers of Car-Free day. today announced that, together with its 22. The Car-Free day is to be held under subsidiary, JSC TBC Bank, it has entered Georgian community the aegis of European Mobility Week, into an agreement with Societe Generale Vakhtang Butskhrikidze, Chief Executive Antoine Gabizon, Chief Executive Offi cer Tgroup ‘Guli Tbilisisatvis’ (Heart for the Europe-wide awareness-raising S.A. one of the leading universal banks Offi cer of TBC Bank of Bank Republic Tbilisi) has announced its plan to campaign on sustainable urban mobil- in Georgia. organize a Car-Free day in the capital ity, the objective of which is to achieve “We believe that the acquisition of remaining 6.36 percent, currently owned zon, Chief Executive Offi cer of Bank of Georgia, and has invited citizens to a positive behavioural change towards Bank Republic is a critical step in deliv- by the European Bank for Reconstruc- Republic. “We are very much looking join the initiative by leaving their vehi- smarter, cleaner and more intelligent ering on TBC Bank’s strategy and rep- tion and Development (EBRD). forward to welcoming Bank Republic cles at home and walking or using urban mobility. resents a major step forward in TBC The transaction is expected to be com- employees into TBC Bank and helping public transport throughout the day. Participation in citizen-led initiatives Bank’s ambition to build the leading pleted by the end of 2016. us successfully operate and serve the Heart for Tbilisi addresses the envi- at the local level during the week of banking group in Georgia and the broader J.P. Morgan is acting as exclusive fi nan- clients of the largest bank in Georgia. ronmental concerns that the city of 16-22 September represents the high- Caucasus region,” said Vakhtang But- cial adviser to TBC Bank, and Baker & We share similar ambitions and together Tbilisi is facing today, with the level light of the campaign. European Mobil- skhrikidze, Chief Executive Offi cer of McKenzie LLP as international legal adviser we are excited by the opportunity to of air pollution rate at three times ity Week is managed by the European TBC Bank. “Bank Republic is an excel- throughout the acquisition process. grow and develop the combined entity.” higher than the actual norm. Commission – Directorate-General for lent strategic fi t for TBC Bank given its “The TBC Bank management team has TBC Bank also announced that it has The community group quotes data Mobility and Transport. focus on the mortgage and consumer extensive integration experience and reached an agreement to acquire selected provided by the International Energy GEORGIA TODAY will provide more lending segments, complemented by an expertise and we will ensure the smooth assets and liabilities of JSC Progress Agency (IEA) according to which Tbi- details (comments from City Hall, attractive product offering for large mul- integration of the two businesses while Bank, a small local Georgian bank. The lisi is on the list of most polluted cities details of road closures, if any, and tim- tinationals operating in Georgia.” remaining committed to delivering the acquisition consists of GEL 108 million in the world, having the highest death ings) on this story online. www.georgi- TBC Bank has already entered into highest level of service to the customers of assets and GEL 108 million of liabili- rate caused by air pollution, a result atoday.ge preliminary negotiations to acquire the of both institutions,” said Antoine Gabi- ties. GEORGIA TODAY 4 BUSINESS SEPTEMBER 13 - 15, 2016 THE ISET ECONOMIST A BLOG ABOUT ECONOMICS AND THE SOUTH CAUCAUS www.iset-pi.ge/blog

The ISET Policy Institute (ISET-PI, www.iset-pi.ge) is an independent think-tank associated with the International School of Economics at TSU (ISET). Our blog carries economic analysis of current events and policies in Georgia and the South Caucasus region ranging from agriculture, to economic growth, energy, labor markets and the nexus of economics, culture and religion. Thought-provoking and fun to read, our blog posts are written by international faculty teaching at ISET and recent graduates representing the new generation of Georgian, Azerbaijani and Armenian economists. Do Teachers Respond to Incentives? A Philanthropic Experiment in Sachkhere Reveals All

Sachkhere and Georgia. Ivanishvili is Ivanishvili’s intervention increased BY ZURAB ABRAMISHVILI said to have been paying his former Sachkhere district’s schooling perfor- neighbors’ gas and electricity bills and mance by about 10%. Importantly, this ensuring that their homes have fridges result is statistically signifi cant at the hat can bring the and washing machines. More signifi cantly 95% confi dence level, suggesting that brightest among for our purposes, in 2007-2011, Ivanish- money does affect schools’ performance, Georgian university vili’s charitable foundation singled out and does so very quickly. graduates to the Sachkhere’s public schools as a subject One can, of course, question the valid- country’s public of its philanthropic intervention, topping ity of our results by claiming that other Wschools? While money alone may not do up the salaries of more than 800 school factors contributed to the relative the trick, it is diffi cult to see a solution personnel in all of Sachkhere’s 32 schools. improvement in Sachkhere’s schooling that does not represent a radical depar- Considering the dismal level of offi cial performance. For example, Sachkhere ture from the current remuneration sys- salaries, the amounts provided were not was the subject of many other interven- tem which places teachers – who hold trivial: 500 GEL/month for school prin- tions by Ivanishvili’s foundation, creating the keys to Georgia’s future as a nation cipals, 400 for vice-principals, 300 for jobs and improving people’s livelihoods. – at the very bottom of the social ladder. rank-and-fi le teachers, and 150 GEL for It is quite possible that these interven- Not only do teachers remain the lowest other (technical) staff. Using available tions triggered a process of internal paid category of Georgian workers but data on the number of school personnel migration with many motivated people Sachkhere is a tiny municipality in Northern Imereti. Sitting on the historical route the gap between the annual average wage in the municipality, we estimate that over – skilled workers and entrepreneurs – connecting Georgia’s East and West, Sachkhere has long lost it transport and transit in education and other sectors of the fi ve years Ivanishvili’s investment totaled moving or returning to Sachkhere from signifi cance. The region’s 38,000 inhabitants (based on the 2014 census) are mostly occupied in agriculture, sand-mining and various public sector jobs (including schools). economy has been widening over time about 19 million GEL. other parts of Georgia. And if a stronger One of Sachkhere’s most famous sons is Akaki Tsereteli, a revered poet and writer, and (see chart). The fact that the project targeted only population moved into Sachkhere as a a major fi gure in Georgia’s fi ght for cultural revival and self-determination in the late Of course, money matters not only for one municipality (Sachkhere) and had result of Ivanishvili’s activity in the dis- 19th and early 20th century. the career choices of young university no direct effect on any of the bordering trict, this could have positively affected graduates. It also affects the incentives districts, allows us to conduct a rigorous university enrolments and other socio- school teachers, is that money should conceived as a short-lived experiment. of those currently employed in the sys- impact assessment of Ivanishvili’s inter- economic outcomes (particularly so if be better targeted: Once adjusted, teachers’ compensation tem, bringing them to appreciate (or not) vention. We do so by comparing the such “brain gain” was happening at the • At schools that exhibit improved per- should be maintained at the newly estab- their jobs, and make greater (or lesser) educational achievements of school expense of Chiatura and other neighbor- formance (to be rigorously monitored); lished level through an appropriate effort to master new skills and prepare graduates in two very similar neighbor- ing regions). • At particular teaching professions indexation mechanism. This is the only for classes. And, if sprinkled indiscrim- ing municipalities, one of which Unfortunately, these interesting hypoth- (sciences, etc.) that may be in short sup- way for the Georgian teaching profes- inately at the system, money can also (Sachkhere) received the “money treat- eses cannot be tested given the absence ply in order to create incentives for new sion to regain (and keep) its social rec- cause the worst teachers to delay retire- ment” and the other (Chiatura) did not. of goof quality internal migration data. teachers to enter the market; ognition and status. ment and put up a political fi ght for jobs As a proxy of educational achievement In any case, given that Ivanishvili’s gen- • At the best teachers in each profes- Zurab (Zura) Abramishvili was born they might hate and for which they have we used data on university enrollment eral philanthropic activities in the region sion to make sure that performance in in Tbilisi but both his parents grew up no qualifi cations. rates – the ratio of school graduates date back to early 2000s while improve- the classroom and investment in own in Sachkhere’s Merjevi village. In addi- What we offer in this article is a glimpse enrolled in Georgian universities. ments in university enrollment did not skills is properly rewarded (and lack of tion to statistical data, the study is based into the impact of money on teachers’ kick in until 2009, it does seem plausible effort is punished!). on informal interviews with school teach- incentives and performance, which can DOES MONEY REALLY MATTER? that money spent on educators had had It goes without saying that better tar- ers conducted by Zura in Merjevi and be obtained through a careful evaluation A visual inspection of the data (see chart) a tangible impact on school performance. geting requires investment in adminis- Sairkhe villages. A senior researcher of a policy experiment conducted over suggests that, as far as university enroll- HOW WELL WAS IVANISHVILI’S trative costs (to implement a rigorous with ISET Policy Institute’s Social Policy several years in Sachkhere, a tiny munic- ment rates are concerned, Sachkhere’s MONEY SPENT? monitoring and evaluation system) Research Center, Zura graduated from ipality (38,000 people according to 2014 lagged behind Chiatura until 2007; it 19 mln GEL is not a small amount of beyond what was envisaged by Mr. Ivan- the prestigious Komarovi Math School census) in northern Imereti. catches up by 2009 and overtakes it in money considering the size of Sachkhere. ishvili’s experiment. The challenge, in Tbilisi. He holds an MA degree in 2010. (We ignore the 2008 data since this While effective, Ivanishvili’s interven- however, is to keep such expenses to the Economics from ISET and is about to THE EXPERIMENT DESCRIBED was an odd year in which almost all tion – a near doubling of remuneration minimum. defend his PhD dissertation at the Center Sachkhere is the birthplace of Bidzina Georgian schools shifted to a 12-year regardless of personal characteristics or Finally, to affect the career choices of for Economic Research and Graduate Ivanishvili, a well-known Georgian entre- format and most students did not sit performance – may be not the most effi - young , no reform should be Education in Prague. preneur, politician and philanthropist university entrance exams). cient way to achieve improved learning who made his native village Chorvila a A proper difference-in-differences outcomes and university enrollment. center of his charitable activities in estimation shows that, over 4 years, The question of effi ciency is particularly important if we want to go beyond pilot- ing to a full-blown national reform (according to our calculations, the cost of fully scaling up Sachkhere’s experi- ment amounts to about 370 million GEL per year, much more than the Georgian budget can carry at present). The fi rst thing to note (see table) is that Sachkhere seems to have experi- enced a disproportionate increase in the number of technical personnel. Some of this increase may refl ect opportunistic behavior and nepotism. Given the lack of monitoring and the fact that disburse- ments were not conditioned on the qual- ity of performance, Ivanishvili’s inter- Table: The number of school personnel in Sachkhere and Chiatura, average over vention may have created perverse 2007-2011 incentives for school personnel: to keep Population Schools Principals Vice-Prin- Teachers Personnel their jobs no matter what, and share the cipals benefi ts with friends and relatives. Sachkhere 38,000 32 32 81* 792 188* A straightforward conclusion from Chiatura 45,300 43 43 52* 840 112* these numbers and the informal inter- Source: Ministry of Education and Science of Georgia (* refers to approximations) Source: National Statistics Offi ce of Georgia views we conducted with Sachkhere’s GEORGIA TODAY SEPTEMBER 13 - 15, 2016 BUSINESS 5 Best Georgian Wine on Show at Prestigious Speciality & Fine Food Fair, London

BY NINO GUGUNISHVILI

or the fi rst time in its history, the UK’s leading showcase of fi ne food and drink this year featured Georgian wine brands Badagoni and Lagvinari at LondonF Olympia. With more than 850 exhibitors, London’s Speciality and Fine Food Fair is known as “the place to dis- cover what’s making the news and what’s about to. From the new producers to the more established specialty brands, you’re sure to fi nd fresh ideas and fresh new products to enhance your business offer- ing.” London based company Cenimex, founded by Berdia Qamarauli and his business partner Dennis Muriu in August 2015, is a British import-export venture, under the Georgian Wine Club brand name, specializing in Georgian wine import and promotion in the UK. With FOR SALE: BMW – 321 model a concept of selling only the highest Date of issue 1936 quality Georgian wines to the UK mar- PRICE 10.000 USD ket, the company is currently working with several Georgian wine companies and is planning to add more Georgian wine brands to their portfolio in the near future, “thus guaranteeing an exeptional wine experience to UK customers,” said Qamarauli. Currently a member of British Geor- gian Chamber of Commerce (BGCC) and of the British Wine and Spirit Trade Association (WSTA), Georgian Wine Club supplies Georgian wines made by Photo: Gela Dumbadze [left], Georgia’s State Minister for Diaspora issues Tamar CONTACT PERSON 557 12 38 90 Lagvinari to the most prestigious Lon- Beruchashvili [center], Ambassador of Georgia to the United Kingdom, and Berdia don restaurants and hotels, including Qamarauli [right], founder and owner of Georgian Wine Club at the Fair The Ritz, and famous wine shop Hedon- ism Wine in Mayfair. Badagoni and Lagvinari wines were twice served at London’s reception of fi nancial sector executives at Aston Mar- tin’s main showroom in Mayfair. This counts the fi rst time that Georgian wine has been served at such a high level event. Cenimex was the only company at the Speciality and Fine Food fair this year, featuring Georgian Wine products on a specially designed stand - Taste of Geor- gia - with the Georgian Khachapuri (cheese pie) becoming an instant hit, prepared in one of the most popular Georgian restaurants ‘Little Georgia,’ based in London. “We were pleasantly surprised to see how extremely popular Georgian food and wine was amongst the visitors to the show, 50 to 60 percent of whom were already aware that Georgia has the old- est and richest wine traditions, and that Georgia is a cradle of wine,” Qamarauli said. Qamarauli sees participation in the Speciality and Fine Food Fair, the largest tradeshow with the involvement of the top businesses in the sector, as a huge step forward in terms of fi nding new partnerships. “A number of agreements were made throughout the three day event,” he said. “It is also very important to emphasize the support we have from the Georgian Embassy in the UK and namely Tamar Beruchashvili, the Ambassador, who attended the show, together with Gela Dumbadze, Georgia’s State Minister for Diaspora Issues. Founder-Director of the BGCC, Mako Abashidze, needs a very special mention, too, as she’s our long-time partner and friend and together Georgian National Wine agency and it’s ing forward to bringing more top quality we’re planning to organize a Georgian head of marketing Irakli Cholobargia are Georgian wine brands to the UK, intro- wine evening, a black tie event, in Novem- aways very supportive too, and with their ducing the best fl avors and tastes our ber this year,” Qamarauli said. “The involvement and assistance we’re look- country has to offer.” GEORGIA TODAY 6 BUSINESS SEPTEMBER 13 - 15, 2016 Mozaika Holding: 8 Years in the Advertising Business

account manager who is fully in charge BY NINO GUGUNISHVILI of it from start to fi nish. Although our prices are not at all low, our clients do know that at Mozaika they are guaran- ounded in 2008 by two child- teed to receive the best service and hood friends and classmates, product available. Salome Kobaladze and Anna Chodrishvili, Mozaika is one YOUR COMPANY HAS AN of the leading companies in IMPRESSIVE PORTFOLIO Ftoday’s advertisement sector. OF ADVERTISING SERVICES Mozaika Holding is celebrating its (BRANDING, DESIGN, eight-year anniversary this September. PUBLISHING AND EVENTS) GEORGIA TODAY spoke with the WHICH NATURALLY MEANS founders, Anna and Salome, to discover A DYNAMIC, SOMEWHAT more about their experience of working STRESSFUL WORKDAY. in the sphere, and the story of their suc- HOW DO YOU DEAL cess. WITH THAT STRESS? Anna: At fi rst there were only four of HOW DID YOU START OUT ON us and now we have almost 30 people THIS SUCCESSFUL VENTURE? working for the company. We were Salome: As childhood friends, our deci- dealing with problems more emotion- sion to enter the advertising business ally when we started, and there is still with a new venture was built on a mutual a certain amount of stress involved. But trust. We share the same values, and we delegate more, which doesn’t mean see things from the same perspective. we’re not aware of every step of the Although we may seem very different, work done. If there’s a major decision our attitude towards work and our sense to be made, we’re there. of responsibility is something we have in common. HOW WOULD YOU Ana: Alongside trust, professionally, DESCRIBE YOUR we had both worked in advertising. I MANAGEMENT STYLE? had extensive experience in sales, and Salome: I don’t think we’re tough in working with clients, which I believe bosses: our company is very friendly, is essential for this industry, while all of us are friends, but on the other Salome was skilled in management mat- hand, when it concerns work, friend- ters. ship is put aside. Salome: Starting your own business Anna: We’re often told that it feels ultimately means you have to be respon- very comfortable to work in Mozaika. sible. You have to realize that it’s not a We aim to be loyal and less bureau- hobby, as it’s often seen. Being in charge cratic, which is perhaps made easier by of your own company is tremendously the fact that it’s still not a very big demanding, needing your 24/7 full company in terms of staff. But we’re involvement and attention. We started planning to expand our business with one credit card and a 1000 GEL in the near future and add more loan, with which we paid our fi rst offi ce people to it accordingly. rent. In reality, we started our business from almost zero. We took a risk, which WHAT IS IT THAT I think is something crucial when doing DISTINGUISHES business. Of course, you have to analyze MOZAIKA FROM and try to foresee, but at the same time, OTHERS IN THE SECTOR? it’s essential to take a risk. Salome: Every year we add something new, we try to introduce new services TELL US ABOUT THE PROJECTS to our clients. By the end of the year YOU’VE WORKED ON AND we’ll have more services to offer. We’re ANY CHANGES YOU WOULD working on it now. MAKE HAD YOU THE CHANCE Anna: Last year we started event TO DO IT OVER AGAIN management, which turned out to be Anna: When we started out there were an extremely successful addition to our typical instances of incorrect time man- company’s portfolio. agement and work overload, especially during the New Year period, which WHAT IS YOUR ADVICE generally is very intense for advertis- TO SOMEONE PLANNING ing. Often we worked 24 hours a day A STARTUP? without even leaving the offi ce in order Salome: If you want your business to to meet our clients’ deadlines. But by be successful, you should be totally the second year we were better pre- engaged in it, no one is going to do any- pared, we knew what to expect, and thing for you. Running your business used additional human resources more and doing something simultaneously wisely. Of our most successful projects, in between is unrealistic and you should I’d highlight our recent four day team- be responsible for each and every step building event that for the fi rst time in you take. Risk is a must, and even if you our company’s history was held outside fail at fi rst, you should try nevertheless. Georgia, in Greece. The experience of Anna: Plus, having at least some knowl- managing an event outside our country edge if not comprehensive one of the was quite new for us. fi eld you wish to start your business in, is, I think, imperative. You should also WHAT DO YOU THINK THE choose your business partner wisely, GEORGIAN ADVERTISING to avoid possible confl icts and compli- INDUSTRY NEEDS FOR cations. ITS BETTERMENT? Salome: You and your partner should Salome: First and foremost is the qual- have the same vision of things, the same ity of product and service. There are attitude towards the business you plan many advertising companies in Tbilisi to do together. and almost all of them have similar ser- vices to offer, but the most important HOW DO YOU SEE YOURSELF factor here is quality. IN 10-20 YEARS? Anna: What we often see is a lack of Salome: I see myself as an owner of a quality, dictated by low prices from big, successful company, with more certain companies. This usually results services and directions added. in a low quality fi nal product. For us, Anna: It may be a slightly different fi eld, quality is vital. Each project we handle too. I would say we can see ourselves in and execute is supervised by an assigned Salome Kobaladze and Anna Chodrishvili, founders and owners of Mozaika Holding every sphere that has service in it! GEORGIA TODAY SEPTEMBER 13 - 15, 2016 BUSINESS 7 Turning an 8000 Year Georgia’s Black Sea Wine Tradition into Success in Georgia Port Batumi among Top 10 Autumn Holiday Destinations

tries. One of the biggest challenges is a BY MAIA CHITAIA lack of up-to-date information about innovation in agriculture, standards and marketing.” ew opportunities are open- With the signing of the Association ing up for Georgian win- Agreement with the European Union in BY TAMAR SVANIDZE emakers and wine lovers June 2014, new opportunities for Geor- through the EU funded gian SMEs opened as the DCFTA (Deep program ‘East Invest 2.’ and Comprehensive Free Trade Agree- NThe regional investment and trade ment) brought benefi ts and duty-free eorgia’s Black Sea region facilitation program, East Invest 2, is trade with the EU. Adjara continues to gain working to improve the SME sector In light of these new prospects, the popularity amongst foreign across the countries of the Eastern Part- Georgian Wine Association conducted visitors for its sea and nership. East Invest 2, through one of its an assessment of the wine and grape mountainous holiday des- actions, has set out to revitalize the sector and found that Georgian wine Gtinations. Georgian wine industry by transferring producers, like Baia, and people involved Forbes Russia named the region’s cap- knowledge from Bulgaria in the areas of in the wine tourism sector lack the ital Batumi among the 10 most popular wine marketing and standardization. knowledge and support for innovative autumn holiday destinations alongside The project is twinning the Georgian product development and access to other cities in Italy, Greece and Spain. Wine Association (GWA), an independ- fi nance, and have few opportunities to Forbes names the city’s beaches, his- ent non-governmental organization, with exchange practices with their European torical core and traditional local cuisine the Bulgarian Chamber of Commerce counterparts. There is also no profes- as highlights of any visit. and Industry (BCCI). Through the pro- sional, business and information platform The article also noted that Batumi has ject, an online platform is being devel- about wine and grape products. a wide variety of festivals and music oped that will promote Georgian wine This is why East Invest 2 is ‘Twinning’ events planned for autumn. producers and act as a one-stop-shop the Bulgarian Chamber of Commerce The latest statistics published by the for key information and guidance to the and Industry and the Georgian Wine Tourism and Resorts Department of wine industry, helping to spur growth Association to implement: ‘The Compe- Adjara said the number of tourists visit- and exports to the EU market. The BCCI tence Center for Wine, Wine Marketing ing the region from January-July had a will be bringing its experience in sup- and Grape Products.’ year-on-year increase of 73.35 percent, porting the Bulgarian wine industry. This The new online platform being devel- or 21,500 people. story shines light on one woman entre- oped, and, in addition to providing key The majority of visitors are from Rus- preneur who is benefi tting from the information and guidance on wine pro- sia, Poland, Ukraine and Israel according project. ducers, it will also promote local vine- to information provided by the region’s Baia Abuladze (22) is a young Georgian yards. 100 companies from the Kakheti tourist information centers. woman from the region of Imereti, west- and Kartli regions have been selected According the Adjara Tour- ern Georgia, who produces wine under and interviewed and will be featured on ism Department, most visitors the brand name ‘Baias Wine’. Tradition- the site with information on their pro- are interested in the moun- ally, wine-making is a male dominated duction, pricing and availability for tainous area and ecotourism. business and Baia is one of only a few export. women winemakers in Georgia. In order to make the platform more “Georgia has 8,000 years of history in sustainable, the Georgian Wine Asso- wine making. With more than 500 grape- ciation plans to link the site with the vine varieties, Georgia was always known popular tourism portal http://georgian- for its unique tradition in wine-making,” wine.travel/. This will generate more Baia explained. “My family also has a traffi c and offer new cooperation and long tradition in vinery and my passion partnership opportunities between the towards wine-making takes its roots from wine, grape and wine tourism fi elds. my childhood, when my grandfather told “Small and medium entrepreneurs in me a story of how, centuries ago, Geor- Georgia are facing serious challenges in gian crusaders carried grapes in their understanding the DCFTA requirements,” armor, so if they fell in battle, a grapevine said Baia. “We expect that once the plat- would grow. I decided to contribute to form is launched, which is expected in this rich Georgian wine-making tradi- December, all producers will be able to tion.” access the information packages and, Baia is currently producing 5,000 bot- through better knowledge of safe and tles of wine per year under her own quality wine production, more produc- name. “Gender barriers are no longer a ers will export their products to Europe. problem for me,” says Baia smiling. “Now I hope that Baia’s wine will be brought I face another obstacle – the lack of to a wider international consumer net- knowledge of how to acquire quality work thanks to the project and that standards and market my wine not only Georgia can turn its 800 year wine tra- in Georgia but also to European coun- dition into a success.” GEORGIA TODAY 8 BUSINESS SEPTEMBER 13 - 15, 2016 WHERE to Go, Stay, Eat, Drink, Buy in September ancy a trip with our feature on guest up to the houses to be found in moun- Svaneti tainous Tusheti. And check Towers but out the best camping spots Photo: Prime Minister , Dimitry Kumsishvili, Minister of Economy and want to on page 44. Sustainable Development, and Archil Bukia, Business House Project Manager knowF more? Tempted On to the Where to EAT to try some extreme section, and General Man- sports but don’t have ager Of Crowne Plaza Bor- Business House: A the contacts? Hungry jomi, Vanja Desmonde, for Asian food but not shares with us where she’d sure where to go? Inter- take guests with an appetite Ground-breaking Model of ested to learn how for something French, Asian ChaCha is made and or Italian, which we then just what a Qvevri is? complement with a full list- Public-Private Partnership WHERE.ge has it all. ing of Asian restaurants. WHERE is the latest Find out the Top 5 Georgian ject that will signifi cantly change the and best tourist guide dishes Your Mother Wouldn’t BY NINO GUGUNISHVILI landscape of state-private partnership, to Georgia, brought to Make on page 66, then head bringing it to another level,” Giorgi Kviri- you by the Georgia over to the Where to DRINK s part of a four-stage planned kashvili, Prime Minsiter of Georgia, said Today Group in part- section, introduced by reform, the Georgian Gov- while introducing the project. nership with the Geor- Tamuna Ghvaberidze, Co- ernment announced the Business House will offer a better qual- gian National Tourism Founder of the Popiashvili New Business House Pro- ity service faster, thus also limiting the Administration, now Gvaberidze Window Project, ject, introducing a ground- costs of the service itself. in its 3rd edition. where Tim Ogden takes you Abreaking model of public-private part- Introducing a customer friendly con- Divided into five on a tour of the best Beer nership. cept of “everything is available every- packed sections intro- Bars in Tbilisi. Business House will be a space where where,” Business House will provide duced by our special Tako Johnson, Executive individuals and private entities will have every service that may be needed by a guests with their own Director of Prospero’s Books, a chance to receive all services, previ- company, with a possibility to book personal recommenda- introduces Where to BUY, ously spread throughout various minis- requested services in advance and receive tions, Where.ge is a after which you can fi nd out tries and state organizations, in one place them later on the spot. “A company sub- must for any discerning more about Georgia’s beloved and on one electronic platform. These mitting information to Business House tourist visiting Georgia. Blue Tablecloth- a must-buy services will include management of will no longer be required to resubmit Introducing Where souvenir for every visitor. state property and privatization, issu- it for any other services that might be to GO this month is ance of natural resource licenses and needed in the future, thus bringing max- Dato Turashvili, renowned Georgian has to offer. Interested? Head on down to the sou- state programs aimed at fostering the imum transparency to the process and writer, taking you from the heights of Autumn is the wine harvest season, venir shops in the Old Town- on Lesel- agriculture sector, services provided by limiting corruption,” the PM said. Tusheti to the caves of Vardzia. and what better way to celebrate than a idze Street and in the Abanotubani and the Entrepreneurship Development In a long-term perspective the new Our Svaneti correspondent and guest luxurious Wine Spa treatment? Find out Sharden areas for your copy of WHERE. Agency within the frames of program Business House project is clearly seen house owner, Tony Hanmer then reveals more on page 28. Otherwise, grab your free copy of ‘Produce in Georgia,’ as well as services as giant step towards stimulating the the magical history of the region’s famed In the Where to STAY section, Teona WHERE at one of the hotels or café-bars provided by the Partnership Fund. business climate in the country with a Towers, while our Editor, Katie Davies, Baghdavadze, Founder at Key Commu- in central Tbilisi. Feel free to call WHERE “Providing 600 services offered by the space that will bring new interaction takes you underground to explore the nications, shares her choice of hotels HQ anytime to order your copy of state overall, this is a revolutionary pro- between the state and private sectors. many caves and cave cities the country around the country and we extend that WHERE. TEL +995 032 2295919. GEORGIA TODAY SEPTEMBER 13 - 15, 2016 BUSINESS 9 Impresico: Challenging the Way We Do Job Interviews

BY NINO GUGUNISHVILI Candidates interviewed through the Impresico platform are given questions to be answered in a specifi c time frame. When a candidate has fi nished the interview, the interviewers access the nterviewing, and being interviewed, can be answers and give them scores a time-consuming process. Impresico, an online interviewing platform by Omicron- soft, aims to facilitate the process of candi- date selection and candidate short listing by Ioffering a mechanism that saves companies time and allows them to work more effi ciently in the process of recruitment. GEORGIA TODAY met Irakli Svanidze, Head of Omicronsoft, Former Graduate of ESM Georgia, to fi nd out more.

TELL US A LITTLE ABOUT THE COMPANY BEGINNINGS Omicronsoft was founded in 2009 on a home com- puter as a web development service that slowly gained more and more clients and saw us hiring more web developers and expanding our offi ce. 2012 was our breakthrough year when we managed to reach out to the international market, with the help of our British partners. We realized several high profi le projects that gave us a possibility to export all of our resources outside Georgia. As the company started to grow, it became clear we needed further investment to help us offer a top quality product that fully answered the needs and require- ments of a hugely competitive international market. With the investment of one of the leading Georgian ically calculates the cumulative score for each is a top professional one. who worked on the Impresico project. Their companies, CBG (Caucasus Business Group), we candidate. Our decision to participate came spontaneously dedication, passion and enthusiasm made it all got additional funds. Today, CBG is our full partner. and we were pleasantly surprised with the expo- possible. Their work fosters financial invest- This gave us a chance to develop our company WHY DO YOU THINK IT IS NEEDED sure it gave our company. We’re now in the process ments to our country, since Impresico is a further, and realize projects in the US and Europe. AND WHY IS IT INNOVATIVE? WHAT of signing a deal with one of the biggest companies totally exportable service. Impresico is gaining At the same time, we decided to make our own UNIQUE FEATURES DOES IT HAVE? in Georgia and all of it happened because Impresico popularity fast, and we’re planning to expand product- an online auction web portal named ‘Cen- Impresico is interesting for companies which have is taking part in the Awards. it by creating a larger HR platform for the torio’ and in January 2016 we introduced online regional offi ces. For example, one of our top clients future. I hope that with the same team we’ll interviewing platform ‘Impresico.’ in Great Britain is an old auction house, Spink and ANY LAST COMMENTS? develop our products, services and company Sons, founded in the 17th century, with offi ces in I’d like to say a special thanks to all the people further. HOW DID THE IDEA FOR Europe, Singapore and the US, and a centralized IMPRESICO COME ABOUT? HR department in their head offi ce. With Impresico The idea of its creation was rather spontaneous, they now have the possibility to considerably save based on our own experience, coming from the their time during the recruitment process since problems we encountered while recruiting staff the platform makes it possible to interview poten- for our own company. The uniqueness of this plat- tial candidates online and only conduct a further form primarily lies in the fact that it’s not a face- face-to-face interview with the successful appli- to-face type of interviewing experience. There is cants afterwards. no need for an interviewer and applicant to be in the same room simultaneously: it’s enough for an YOUR SLOGAN FOR IMPRESICO IS A interviewer to create and upload an interview on “BETTER WAY TO HIRE.” TELL US MORE a cloud platform, giving a certain deadline to a We recently updated our product with a keyword potential candidate, so that the applicant can be matching system. When a vacancy is created it also interviewed online (with a webcam or smartphone), has special keywords, more frequently used for in any location in the world. The process then goes technical vacancies such as IT Manager’s Assistant, to an assessment stage by the company that posted fi rst line, or second line technical assistant etc. the actual vacancy. When an applicant’s CV is uploaded, it’s scanned Impresico facilitated the process of candidate for the keyword match. selection and candidate short-listing for us. With Technically, a company registers on our platform, this online interviewing platform, we’ve created a acquiring one of the packages we offer, and can mechanism that enabled us to save time and work design the platform’s control panel according to more effi ciently in the process of recruitment. We their brand. The platform has its own dashboard tested the product within our own company fi rst where you can see a snapshot of the ongoing recruit- and were stunned with the results. ing process. Every vacancy has a public URL or an With Impresico it became much easier to recruit embedded code that is incorporated both on social people, and the process of selection also became media and on job-listing sites. less time-consuming. YOU’VE BEEN REGISTERED AS A HOW DOES IT WORK? CONTESTANT FOR THE TBC BUSINESS Candidates interviewed through our platform are AWARDS. WHAT DO YOU THINK given a certain number of questions to be answered ARE THE BENEFITS OF PARTICIPATING in a specifi c given time frame, after which, when IN SUCH PROJECTS AND WHAT DO a candidate has fi nished the interview, the inter- YOU PLAN TO DO IF YOU WIN? viewers (either one or several) access the answers I think this is a very important initiative and the and give them scores. The system then automat- team that’s organizing the TBC Business Awards GEORGIA TODAY 10 BUSINESS SEPTEMBER 13 - 15, 2016 Powering Afghanistan: the Controversial TUTAP pretext to setting old tensions. BY DIMITRI DOLABERIDZE Currently, the parties are more or less Setting up a major transmission agreed. The leaders of the Hazara have line through Bamiyan province substantially alleviated their rhetoric. would give a powerful boost to fghanistan has been rocked The threat of large-scale riots has appar- the local economy and signifi cantly raise the well- by disputes over power ently passed. Ashraf Ghani promised being of residents project TUTAP- electricity Hazara that they would get spin-off power power cables planned to lines to give the province of Bamiyan be laid from Turkmenistan 300 MW instead of 30 MW as per the Athrough , Tajikistan and initial draft. This is a very serious con- Afghanistan to Pakistan. cession. This capacity allows, for exam- In terms of power energy and interna- ple, development in the province of a tional business, this project is another mining industry. complement of CASA-1000, as only Nevertheless, the question remains as through it does a source of energy come to whether further such confl icts may from Turkmenistan, with a number of break out, for example, over the distri- large gas turbine power plants under bution of gas, which is to arrive in construction there. By 2020, 14 such Afghanistan through the TAPI gas pipe- power plants are expected to be in oper- line. In economic terms, many provinces ation, some of which are to meet domes- of Afghanistan have the urgent need for tic demands, and some, such as the power economic development and, as a result, station ‘Watan,’ in Lebap province, with strengthening of the economy basis - an electricity capacity of 254 MW, to energy. In the political aspect of the transmit electricity to Afghanistan. The dispute over TUTAP, it showed how Afghan LEP area will pass approximately fragile Afghan national unity is, and how the same route as the CASA-1000 power easy it is to ignite inter-ethnic tensions transmission line. and confl icts. In Afghanistan, this issue took ethnic What could be done in this situation? overtones when the idea to change the From my point of view, the main means planned TUTAP route was raised by a for preventing acute international con- group of MPs of the lower house repre- fl icts on an economic basis is a long-term senting Hazara. The Hazaras are a Per- plan for economic development in struction of power plants and power in each locality. Electricity in the early trical equipment or building materials sian-speaking people who mainly live in Afghanistan. For the purpose of economic lines. In Afghanistan, it is also necessary stages can be imported, but then it is supplier and as a possible investor in the central Afghanistan, Hazara Town, in development of the country, electricity to highlight the fact that the country necessary to strengthen and build the construction of large power plants in Balochistan. At their request, power lines should run through all provinces of the does not have enough of its own energy country’s own sources, particularly Afghanistan. would pass not through the Salang Pass, country, in all districts, in every village. sources, and that network construction hydroelectric power stations. In my opinion, it would be better to but through the province of Bamiyan, In other countries, such as Russia, the is diffi cult due to mountainous terrain. If such a plan was drawn up, in this develop a future Afghanistan Electrifi ca- which meant a deviation to the west of development of the electric power indus- Developers must fi rst plan the most case the chance of confl ict would be tion Plan in the framework of the SCO. the route proposed by the government. try has developed and continues to rational routes for the main transmission much lower, as the representatives of The Shanghai Cooperation Organization When this proposal was not supported develop on the basis of long-term plans lines, taking into account all the diffi cul- each province would know how much (SCO), or Shanghai Pact is a Eurasian by the President of Afghanistan, confl ict or strategies, set out 20-30 years ahead, ties of the terrain, from which point it power they are entitled to and when the political, economic, and military organ- broke out. which take into account future needs for is rational to place the substation and power line is to be installed in a particu- ization which was founded in 2001 in From a purely technical point of view, sources of energy and plan for the con- dilute to the local distribution network lar area. Also, the welfare of each indi- Shanghai by the leaders of the People's the President of Afghanistan, Ashraf vidual province depends on the imple- Republic of China, Kazakhstan, Kyrgyz Ghani, is right. Changing the route of mentation of the entire plan as a whole. Republic, Russian Federation, Tajikistan, power transmission line would require The plan of the electrification of Uzbekistan, India and Pakistan. Its aim additional costs for research and con- Afghanistan requires, at this stage, coor- is to conduct scientifi c and research struction for the high-altitude conditions. dination with neighboring countries, at works, prepare investment plans, and This would entail an overall increase in the very least with Turkmenistan, Uzbek- establish coordination on security mat- cost of the project and the term of its istan and Tajikistan. There are other ters, since power lines must be protected implementation. Building power lines countries interested, such as China, but from possible attacks by militants. Such in mountainous areas is diffi cult and Chinese companies in Afghanistan state inclusion would better enable Afghani- takes time- in some cases, electric poles that there is clearly not enough power stan, with international cooperation, to are set into place by helicopter. for large mining projects. At the same deal with arising issues much faster and However, it is possible to understand time, Russia has an interest as an elec- more easily. the position of the Hazara MPs, as set- ting up a major transmission line through Station Town Capacity (MW) Commissioned Bamiyan province would give a power- Asadabad Kunar 0.7 1983 ful boost to the local economy and sig- Gerishk Helmand 2.4 1945 nifi cantly raise the well-being of resi- Istalif Kabul 0.2 2006 dents. Failure to take up this suggestion Kajaki Helmand 33 1975 was quickly lauded as an expression of Mahipar Kabul 66 1967 a policy of suppression of Afghan Naghlu Kabul 100 1967 national minorities: what was a purely Pol-e Khomri-1 Baghlan 4.8 1960 technical and economic issue went far Sarobi Kabul 22 1957 beyond the theme of Afghanistan's Statistics: "Hydroelectric Power Plants in Afghanistan." Source: Power Plants around energy sector and quickly became a The World, 12 April 2014

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TIFLIS 7.5x6cm ING.indd 1 13/06/16 15:16 GEORGIA TODAY SEPTEMBER 13 - 15, 2016 POLITICS 11 Georgia & Its Importance for the US what Turkey wants. So Georgia, histor- BY MAIA KAY KVARTSKHAVA, VOICE ically and geopolitically is the most OF AMERICA GEORGIAN SERVICE important piece. is rich in hydrocarbons, Armenia is Armenia, but Georgia is very e spoke with Dr. Ariel important and my concern after being Cohen, non-resident in Washington for almost 25 years, is Senior Fellow, Atlan- that the new generation of politicians, tic Council, on cur- of congressional staff, of young diplo- rent US- Georgia- mats, also one of the presidential can- WRussia relations and his prediction for didates, may not fully understand what the up-coming parliamentary elections. Georgia is and how important it is.

IN A HUFFINGTON POST YOU ALSO SAID THAT THE ARTICLE YOU NAMED GEORGIA US SHOULD EXPAND ITS A “KEY ALLY” FOR THE US. SUPPORT TO GEORGIA. WHY DO YOU THINK GEORGIA HOW CAN WASHINGTON IS SO IMPORTANT TO THE US? INFLUENCE GEORGIA’S EURO- Look, what’s going on: we just had a ATLANTIC INTEGRATION? summit between President Putin, the First of all, the US is still, despite all the presidents of Azerbaijan and Iran, Aliyev problems and stumbling blocks of the and Rouhani. Clearly, Russia is trying to last 8 years, the most important country put its stamp once again on the South in the NATO alliance, it is the most Caucasus and on the Caspian area. important country in the Euro-Atlantic Dr. Ariel Cohen, non-resident Georgia occupies a strategic position sphere; I would say the most important Senior Fellow, Atlantic Council East to West but also North to South. country in the world. And what the US Without Georgian cooperation, Russia thinks or does goes a long way. Europeans are looking for ways to signal WITH EVEN MORE FOREIGN government is committed, despite Rus- cannot resupply its main satellite and Therefore, the US, in my opinion, has to Russia their displeasure about its INFLUENCE AND EXPANSION. sian pressure, to Euro-Atlantic integra- its main agent in the South Caucasus – to work with our European allies- it can- behavior, about Russian foreign and HOW SERIOUS MIGHT THIS tion, to work with the EU, to work with Armenia. not run the alliance singlehandedly. For domestic policies, including Ukraine. THREAT BE TO GEORGIA? NATO, to work with the United States. At the same time, we have Iran break- example, Mr. Trump talks about the One way to signal this displeasure is to For now I do not see immediate signs ing out of sanctions which President importance of burden sharing. That’s a work more closely with Georgia, but also that Russia is about to invade. What is SPEAKING OF THE UPCOMING Obama lifted. And you have vast insta- legitimate concern. My question is how with other countries: Ukraine, Kazakh- happening is more integration of Abk- ELECTIONS, HOW WOULD YOU bility in Turkey. he articulates it and what is happening stan, Uzbekistan, especially after the hazia and South Ossetia into the Russian ACCESS THE PRE-ELECTION So all that makes the countries of the when he articulates it. But that aside, the transition there, to remain involved in space. I think it is very diffi cult to start SITUATION IN GEORGIA? South Caucasus, especially Georgia, very US should put its foot down, so to speak, the former Soviet space – a very impor- rolling it back right now, but I do not It’s a big challenge. Georgia, despite a important; as the most pro-western, most and maintain a clear idea of how Geor- tant strategic priority in my view. lose hope. short period of democracy in 1920s and democratic, and most reformed country gia is integrated in NATO and the EU. I hope one day the Abkhaz, and pos- since independence, is still a young in comparison to its neighbors. It’s also We have a major step now with the visa WHAT ABOUT RUSSIA? A sibly the Ossetians, will understand that democracy. It’s an old country, but it’s a a country with a clear agenda to becom- free travel, so with the US committed, BROKEN ECONOMY AND Russia is not a good partner for them. young democracy. I think Georgia is ing a part of the Euro-Atlantic space, the Europeans will most probably get INTERNAL PROBLEMS HAVE But it also takes Georgian good will, doing a pretty good job and the main despite what Russia wants, despite what on board. LITTLE EFFECT AND PRESIDENT Georgian commitment to have good thing in my view is to have what we call Iran wants and some may say, despite And I would add another thing: the PUTIN COMPENSATES THEM relations, not to blame, not to punish, in America an “even playing fi eld:” eve- but to keep the door open for Abkhazia rybody gets a chance; everybody gets to come back to Georgia. access to the media and that the budgets are reasonably transparent. WHAT ABOUT USING The the more transparent and more SOFT POWER? controlled by public institutions the cash Georgia is not a rich country. Soft power is, the better off everybody is. Also as costs money, though military power, hard few dirty tricks as possible, and no vio- power costs even more money. This is lence. Violence is one thing that turns where a soft power may be a good solu- off Western support, American and tion. But I am not of the school that European. As long as Georgia walks in existed in Washington in the last 8 years, that corridor, it gets good grades. It got including Secretary Clinton, which says good grades in 2012 and it will get them that the solution to Georgian security now, too. problems is more democracy. I think it’s an election with a very high Democracy is very important and I level of uncertainty. I also follow politics think Georgia should be proud that both in Israel. Israel has also many parties, it elections of 2012 and the elections now is easy to get into politics and set up a seem to show that Georgia has made new party. Therefore, it’s very diffi cult great achievements. Outside the Baltic to predict what the outcome is going to States, Georgia has the strongest democ- be. I don’t know what the outcome will racy. Maybe Ukraine is in the same ball- be in Georgia. And also, in every elec- park, but Ukraine had Maidan, Ukraine tion campaigns there are always surprises: had the rapacious, very greedy presidency the surprises that people plan and there of Yanukovych and his family. Georgia are surprises that people don’t. And these doesn’t have that. surprises always shift the outcomes. So Georgia has a lot to be proud of in Looking at Georgia, I think it will come terms of democracy. But both military down to a very serious horse-trading in power and soft power are indispensible the coalition in the parliament: who will elements of independence for Georgia. get the majority if the two main parties And I think this government is doing a do not get the absolute majority. Again: pretty good job. In my view, the previous it has to be open, clean and transparent government did a descent job with the for the next government to have legiti- exception of the catastrophe of 2008. This macy.

PUBLISHER & GM Journalists: Photographer: ADDRESS Reproducing material, photos George Sharashidze Tony Hanmer, Tamar Svanidze, Giorgi Pridonishvili 1 Melikishvili Str. and advertisements without Zviad Adzinbaia, Beqa Tbilisi, 0179, Georgia prior editorial permission is COMMERCIAL Kirtava, Meri Taliashvili, Eka Layout: strictly forbidden. DEPARTMENT Karsaulidze, Zaza Jgarkava, Misha Mchedlishvili Tel.: +995 32 229 59 19 The author is responsible for Commercial Director: Maka Bibilashvili, Karen E: [email protected] all material. Rights of authors Iva Merabishvili Tovmasyan, Dimitri Webmaster: F: GeorgiaToday are preserved. The newspaper Marketing Manager: Dolaberidze, Maka Sergey Gevenov is registered in Mtatsminda Mako Burduli Lomadze, Tim Ogden, ADVERTISING & district court. Ana Akhalaia, Robert Isaf, Circulation Managers: SUBSCRIPTION EDITORIAL DEPARTMENT: Joseph Larsen, Will Cathcart, David Kerdikashvili, +995 595 279997 GEORGIA TODAY Editor-In-Chief: Vazha Tavberidze, Nugzar B. David Djandjgava E-mail: marketing@ Reg. # 06/4-309 Katie Ruth Davies Ruhadze georgiatoday.ge GEORGIA TODAY 12 SOCIETY SEPTEMBER 13 - 15, 2016 TV Show Exposes Dead Fish at “Patriarchy” Lakes, Government responds

lation is taking some of those contaminated fi sh BY VAZHA TAVBERIDZE home as a means to a free meal. Yet another prob- lem is the lush grassland that is steadily turning some of the lake water into swamp. Water pollu- f online presence is anything to go by while tion, on the other hand, is “complimented” by a judging a TV program’s popularity and large amount of trash strewn across the area, a gift quality, last week’s episode of the environ- from previous campers fortunate enough to fi nd a ment-themed outdoor ‘Rati’s Blog’ program reasonably clean spot. Despite what the name sug- of the Iberia TV channel was a resounding gests, however, the lakes are the property of the successI – the horror-inducing footage of massive government, specifi cally, Tbilisi City hall. amounts of dead fi sh fl oating in the so-called “We implore the government, the sanitation “Patriarchy Lakes” (allegedly owned by Georgian services, the city hall – whoever is responsible – Orthodox Church) was viewed by more than to address this issue, as this might turn into an 200,000 people online. The three lakes and the even bigger problem if not solved soon enough park surrounding them have been known as a – the risks of epidemic outbursts are here for all popular fi shing / camping spot for Tbilisi and to see,” said Tengo Beniashvili, President of Geor- Rustavi dwellers alike. gia’s Sport and Fishing Federation and one of the As if the fact that around a million fi sh had per- fi rst to sound alarm bells when he witnessed what "When we arrived to ished because of rampant pollution in the lakes was taking place at the lakes. shoot the program, the pungent stench of rotting (sewage is actually poured into two out of the three “When we arrived to shoot the program, the fi sh was unbearable," lakes) was not disastrous enough, the situation is pungent stench of rotting fi sh was unbearable,” says Rati Dolidze, the further aggravated by the fact that the local popu- says Rati Dolidze, the host of Rati’s Blog. “I used host of Rati’s Blog to visit these lakes in my early childhood and I remember how rich it was, with all kinds of fi sh. The territory was very clean and it was a pure joy being here. But what we’ve got now is this cata- strophic picture. I was really emotional, it was a gruesome sight for me, but I think things like this need to be shown to people.” And the decision proved right as, in what was nothing less of a commendable display of respon- siveness, the government deployed task units to clean out the dead fi sh and the surrounding waste just two days after the show was aired. Though the “Patriarchy” lakes still need much improve- ment before reaching a semblance of what they used to be, this is a positive development and we can only hope to see it built on further.