Foreign Direct Investment in Georgia Decreased by 35% in 2018 Continued from Page 1 Attract Investors

Issue no: 1132/171 • MARCH 12 - 14, 2019 • PUBLISHED TWICE WEEKLY PRICE: GEL 2.50

In this week’s issue...

Weekly Entrepreneurial News @entrepreneur.ge NEWS PAGE 2 Georgia and South Korea Sign Agreement on Economic Cooperation FOCUS ON WOMEN IN BUSINESS Why Georgia needs more women BUSINESS PAGE 2 and equality in business PAGE 6, 7 Will Improved CA Balance and Planned Capital Foreign Direct Investment in Georgia Investments Outweighs Pessimism and Lack of Credit? We’ll see! Decreased by 35% in 2018 ISET PAGE 4

BY AMY JONES Gov't to Tighten School Excursion Regulations reliminary data released by the National Sta- tistics Offi ce of Georgia, Geostat, on March 11 has revealed $1.2 bln of Foreign Direct Invest- ment (FDI) in Georgia in 2018. The fi gure rep- resents a 34.9% decrease compared to the same periodP in 2017. The fi nancial sector in Georgia received the highest amount of FDI totaling $277.9 mln. Transport benefi ted from the second highest FDI share with $209.9 mln, followed by the energy ($157.2 mln), manufacturing ($142.3 mln) and construction ($103.6 mln) sectors. Continued on page 5 Photo source: The Financial POLITICS PAGE 11

Prepared for Georgia Today Business by Markets Asof08ͲMarͲ2019 STOCKS Price w/w m/m BONDS Price w/w m/m BankofGeorgia(BGEOLN) GBP16.00 Ͳ5,3% +0,9% GEOROG04/21 102.53(YTM5.47%) +0,4% +0,8% GeorgiaCapital(CGEOLN) GBP11.10 Ͳ1,8% Ͳ0,4% GEORG04/21 105.61(YTM4.04%) +0,0% Ͳ0,4% GHG(GHGLN) GBP2.06 +0,5% Ͳ12,3% GRAIL07/22 106.90(YTM5.45%) +0,4% +1,3% TBCBankGroup(TBCGLN) GBP15.22 Ͳ1,0% +8,1% GEBGG07/23 99.45(YTM6.14%) +0,1% +0,5%

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@entrepreneur.ge Gamarjoba! I’m the Editor-in-Chief of the Georgian edition of Entrepreneur magazine and I’m here to share the top weekly Entrepreneurial news with you:

Tengiz Gogia is a Georgian entrepreneur based in the Netherlands who always wished to start a business in his homeland. Following a friend’s advice, Gogia launched an ice- cream café ‘Maestro Gelato’ for ice-cream and espresso lovers. The gelato and sorbet fl avors are produced using natural fruit pastes. 18 core fl avors are offered alongside seasonal fl avors such as different fruits. ‘Maestro Gelato’ plans to offer more than 200 different gelatos and sorbets, including a vegan menu. Gogia wants to open ice-cream PM Bakhtadze Comments on cafes across Tbilisi. Meet 19-year-old farmer Zuka Maisashvili who has used his knowledge, experience, Developments around TBC Bank resources and family support to start producing wine from endemic grape varieties in Racha, Georgia. His brand quite well. According to him, some pop- Bank Mamuka Khazaradze and his Dep- BY THEA MORRISON ‘Gvinuka’ began making small quantities of ulist and ungrounded information and uty Japaridze had violated the require- wine. Foreign partners have already statements have been made about the ments of legislation regulating confl ict expressed interest; however, the wine is NBG lately. of interests, therefore it suspended the currently only available on the local market. eorgian Prime Minister, “I would like to declare with a full authority of the two men. With new equipment purchased with Mamuka Bakhtadze says responsibility that the National Bank is Khazaradze fi led a lawsuit against the grants, Maisashvili will continue to expand that various political forces an independent institute and staffed with regulator, but the supervisory board decided the business to a wider audience. are trying to take the TBC high professionals, which showed that to withdraw it. It was followed by Khaz- Bank issue back to the it always works in compliance with very aradze’s resignation as the board chair. Victoria Kasyanova and Irina Ignatenko have Gpolitical information fi eld, adding it is high ethical norms. This is not my assess- He announced he was leaving TBC, launched a new startup ‘I SOAP’ producing “irresponsibility and the attempt to pro- ment, it is an assessment we hear from where he had spent 27 years. His deputy handmade and fragrant soaps and cosmetics. vide the population with distorted infor- international fi nancial institutions. This also decided to quit. However, Khaz- Utilizing natural products without artifi cial colors or mation.” is the actual circumstance, all the rest aradze and his deputy will keep positions pesticides is of paramount importance for the The PM made the comment at a press is, unfortunately, political speculation,” at TBC Bank Group PLC, registered in founders of ‘I SOAP’. Kasyanova’s spouse, a sailor conference held at the Government’s he stated. London, UK, which keeps 100% shares who travels a lot, collects a wide range of new and Administration on Friday. Bakhtadze added that TBC is the coun- of TBC Bank. rare products which enriches the brand’s ingredients. Bakhtadze noted that the wrong empha- try’s leading fi nancial institution which Khazaradze arrived in Parliament on The designers of ‘I SOAP’ are inexperienced sis is made and that these forces are try- is of great importance. Monday and raised the issue of respon- marketeers. However, with high quality products and ing to link the TBC issue with the Anak- On February 14, the National Bank of sibility of the National Bank President original packaging, they attract customers easily. lia Port. Georgia stated that after examining Koba Gvenetadze and his deputy. In Follow the Entrepreneur Georgia Instagram page to get the latest updates from The PM talked about the role of the transactions conducted by TBC Bank addition, Khazaradze stated that he had Georgian Entrepreneurs. For doing business with Georgian Entrepreneurs, write us on National Bank of Georgia (NBG) and 2007-2008, it was revealed that the Chair- received a threatening letter from Min- [email protected] said that it fulfi lls its role of regulator man of the Supervisory Board of TBC ister Gakharia. GEORGIA TODAY MARCH 12 - 14, 2019 BUSINESS 3 Georgia and South Korea Sign Agreement on Economic Cooperation sectors. The agreement with Georgia is aimed at expanding economic cooperation between the two countries, including improving the presence of Korean companies on the Georgian market. “The agreement is another contribut- ing factor to the growth of foreign trade turnover and the development of trade- economic cooperation. Its enabling will encourage entrepreneurs in terms of penetration of the market and encourage new investment projects” noted the Minister of Economy and Sustainable Development George Kobulia after signing the agreement. The sides also agreed to start nego- tiations on the agreement regarding the promotion and protection of investment between both countries at a mutually convenient time. In addition, speaking at the Korean Foreign Ministry, Kobulia underlined the fact that Korea is interested in Geor- gia as a new tourist destination. For this purpose, there will be 7 direct charter fl ights between Tbilisi and Seoul in 2019. At the initiative of the Minister of Economy and Sustainable Develop- ment of Georgia, offi cials discussed issues surrounding the fulfi llment of direct regular fl ights between Georgia and Korea were discussed at the meet- Image source: Ministry of Economy and Sustainable Development of Georgia ing. “Korea is one of the most important George Kobulia to South Korea, the March 11. The agreement will enter into relations between countries. tourist destinations for Georgia. We BY MARIAM MERABISHVILI Government of Georgia and the Gov- force in 30 days’ time. South Korea and Georgia will establish plan to encourage tourists to come into ernment of South Korea have signed an The agreement should encourage more a joint commission to effectively imple- this country as much as possible and agreement on economic cooperation. joint projects between South Korea and ment the treaty and to explore the direc- offer them new tourist products. More ithin the framework The agreement was signed by Deputy Georgia in benefi cial fi elds for both tions of economic cooperation between than 13,000 Korean tourists arrived in of the visit of the Minister of Economy and Sustainable parties, including investment, trade, the two countries. The Commission will Georgia in 2018, which is 112 percent Minister of Economy Development of Georgia Genadi Arve- tourism and industry sectors. It should discuss existing bilateral trade-economic higher than the previous year, while in and Sustainable ladze and Deputy Minister of Foreign also continue to strengthen economic relations and possibilities and oppor- January 2019 the growth became already WDevelopment Affairs of Korea Lee Tae-oh in Seoul on cooperation, including socio-cultural tunities for cooperation in different 27 percent,” said George Kobulia. Ministry of Finance Responds to Fresco Founder’s Accusations Photo source: Sputnik Georgia “I have been hung in the air by the ogy on part of Sopromadze for damaging tlement council, which is represented the reputation and professional activi- BY THEA MORRISON agencies of the Finance Ministry which the reputation of the system and mis- by the representatives of various agen- ties of the system and thousands of peo- have failed to make a tax conclusion, leading the public,” the statement reads. cies and business sectors,” the ministry ple working there,” the Ministry of even based on violation of all regula- The revenue service of the Ministry of stated. Finance said. eorgia’s Ministry of Finance tions, because they know that they are Finance began checking the tax activi- The statement reads that before mak- In response to the video address released (MOF) has released a totally wrong,” he said. ties of Fresco on February 20, 2018. ing the fi nal decision about the dispute, by the Fresco founder, Tbilisi Mayor statement in response to “Do not treat business like a hooker. The MOF explains that as a result of the allegations made by the founder in Kakha Kaladze told journalists that since the founder of the chain Believe me, business will give you a the inspection, a draft of the relevant tax connection with pressure put on the 2012, when the ruling party Georgian of supermarkets Fresco proper answer,” Sopromadze added. inspection act has been developed, how- business by the state, are “groundless Dream (GD) came to power, there are VasilG Sopromadze, who accused Min- MOF’s response to Fresco founder ever, the payer does not agree with it. and unsubstantiated.” not any facts of terrorizing or putting istry of Finance employees of commit- reads that his [Sopromadze’s] accusa- “At this stage, the dispute is being dis- “As for Vasil Sopromadze's allegations pressure on businesses. ting crimes. tions towards the ministry employees cussed by the dispute settlement coun- about alleged crimes committed by Min- “If any person does anything illegal Sopromadze released a video address have not been confi rmed by an internal cil of the revenue service under the istry of Finance employees, fi rst of all, and incorrect, relevant agencies will be on March 9, slamming the government audit. Ministry of Finance and tax payer is we would like to state that for the Min- interested and everybody will be held for their attitude to business and urging “The ministry will apply to legal meas- authorized to fi le an appeal against the istry of Finance, as a responsible public accountable. Of course, the investigation politicians to use common sense. ures and will also demand a public apol- decision to the fort of the dispute set- agency, condemns any act that harms will be unbiased,” the Mayor said. GEORGIA TODAY 4 BUSINESS MARCH 12 - 14, 2019

Will Improved CA Balance and Planned Capital Investments Outweighs Pessimism and Lack of Credit? We’ll see! from tourism form an important part of Consumer Confidence Index (CCI) BY DAVIT KESHELAVA households’ income, their growth had a dropped insignifi cantly, by 1.1 index AND YASYA BABYCH positive impact on the projected real points monthly (but increased slightly GDP. yearly). While the reduction in the expectations index (by 5.3 points) – measuring SET-PI has updated its forecast INTERNAL FACTORS – THREATS expectations for the coming 12 months of Georgia’s real GDP growth rate AND OPPORTUNITIES – outweighed the growth of the present for the fi rst and second quarters Annual infl ation in January 2018 consti- situation index (by 3.1 points). People’s of 2019. These are the main fea- tuted 2.2%, which was in line with the pessimism can be explained by January’s tures of this month’s release: 3% NBG target. In addition, annual infl a- overconsumption and negative expecta- I tion on imported goods came down to tions related to unemployment, infl ation, HIGHLIGHTS 2%, while the core infl ation rate stood and the general economy (see: http:// • ISET-PI’s forecast of real GDP growth at a low 0.6%. Low and stable infl ation iset-pi.ge/index.php/en/consumer-con- for the fi rst quarter of 2019 stands at usually gives policymakers the oppor- fi dence-index/2344-january-2019-post- 4.3%. The second estimate of second- tunity to actively use monetary policy christmas-hangover). quarter growth forecast now stands at instruments to boost growth fi gures. Lastly, new lending regulations could 4.6%. Thus, the Monetary Policy Committee potentially have a negative impact on • Based on January’s data, we expect of the NBG met on January 30, 2019, and growth predictions. The fi rst wave of annual growth in 2019 to be 4.4% in the due to the reduced macroeconomic risk regulations entered into force in May worst-case or “no growth” scenario, and coming from the external sector and 2018. This regulation has introduced a 5.5% in the best-case or “average long- weak infl ationary pressure from the ceiling of 25% of a commercial bank’s term growth” scenario. Our “middle-of- aggregate demand, they decided to reduce supervisory capital for loans issued the-road” scenario (based on average the Monetary Policy Rate (MPR) by 0.25 without a prior comprehensive analysis growth over the last four quarters) pre- percentage points to 6.75. This was the of a consumer’s solvency. The second dicts 4.7% real GDP growth. fi rst time since July 2018 that the National wave of more restrictive regulations has • ISET’s annual forecast is consistent Bank of Georgia conducted an expan- been in force since January 2019 (decree with evidence coming from the National sionary monetary policy by reducing was mandatory for institutions which Bank of Georgia (NBG) and international the policy rate. In addition, NBG has issue loans to individuals). The new development institutions. For example, purchased foreign exchange in the amount regulation introduced principles of the National Bank of Georgia’s expecta- of $85 million to improve its ratio of responsible lending, made solvency tion for real GDP growth remained reserves/ARA metric . analysis necessary, and defi ned required unchanged at 5% in 2019. According to In addition, nearly all of the monetary payment-to-income (PTI) and loan-to- the recent monetary policy report, aggregates have experienced double- value (LTV) ratios such that the differ- improved net export, enhanced con- digit growth relative to the same month ence between the debtor’s net income sumption, and investment supported by of the previous year. In particular, the and the loan is not less than the subsist- government capital spending and mod- largest M3 and M2 aggregates increased ence minimum . These regulations nota- erate credit activity growth will positively by 15.3% and 16.0% respectively in yearly bly restricted credit expansion and have contribute to real GDP growth . Moreo- terms, while the most liquid Currency had negative implications on the growth ver, the International Monetary Fund in Circulation (CCIR) went up by 8.4% fi gure. However, it is hard to capture the (IMF) has also decreased its growth year on year (it is notable that monetary negative impact of the credit restrictions forecast from 4.78% (estimated in Octo- aggregates experienced a monthly reduc- to GDP growth, as only one month has ber) to 4.6% in 2019. The IMF provided tion in January, as usual). According to passed since the government introduced similar fi ndings to the National Bank of economic theory, increased money sup- these more restrictive measures. There- Georgia, identifying some contributors ply encourages business expansion and fore, credit restrictions might be con- to the real GDP growth: improved cur- consumer spending, which leads to a sidered potential internal threats to the rent account balance and the govern- rise in aggregate demand. real GDP growth fi gure that might not ment’s high infrastructural spending. Worsened business and consumer con- be fully taken into consideration in our However, this authoritative institution fi dence were among the negative con- model yet. identified threats coming from the nian economy reached 5.8% annual Turkey, China (caused by reduced re- tributors (threats) to the real GDP growth In January 2017, Total Volume of Com- recently introduced credit regulations growth, down from an impressive 7.5% export of copper ores and concentrates) forecast. According to ISET-PI’s latest mercial Bank’s Consumer Credit and unstable economic conditions in the in 2017. Russia advanced by 2.3%, which and the EU (due to decreased export/ publication of the quarterly Business decreased by 2.4% compared to the pre- region. further stimulated the Georgian and re-export of mineral or chemical ferti- Confidence Index (BCI), the index vious month and increased by only 4.2% Recently, Geostat published its rapid Armenian economies through the trade, lizers to Lithuania and decreased re- dropped by 7.4 percentage points in the relative to the same month of the previ- estimate of real GDP growth for January remittances, and tourism channels. export of petroleum oils to France) fi rst quarter of 2019 relative to the previous year. The Credit Volume of Com- of 2019 and the estimated growth fi gure Moreover, Azerbaijan is still far behind experienced a notable decline. During ous quarter (it is notable that the index mercial Banks' Short Term Consumer stands at 3.5%. The trade (mainly due to its peer countries, with an average annual the same period, imports decreased deteriorated in yearly terms as well). Credits reduced by 50.7% and 57.7% in increased re-export of motor cars), hotel growth rate of 1.4% in 2018. Kazakhstan, moderately by 1.1%. The trade defi cit The BCI drop was driven by a worsen- monthly and yearly terms respectively. and restaurant, fi nancial (mainly due to Belarus, and Ukraine advanced on aver- thus shrank by 6.1% compared to the ing in past performance and expectations Moreover, the main driver of this nega- interest income obtained by commercial age by 4.1%, 3.0% and 3.3%, respectively. same month in 2018 and reached 349.2 in a number of business sectors. Inter- tive trend is Consumer Loans in National banks) and real estate sectors were the There is still no data available on annual million USD. Overall, the reduction in estingly, companies in the construction Currency, which decreased by 56.4% and most important contributors to the real GDP growth for Turkey. However, Tur- the trade defi cit made a signifi cant pos- industry assessed their past performance 64.4% in monthly and yearly terms cor- GDP growth in January, while the man- key’s economy shrunk notably in the itive contribution to the real GDP growth most pessimistically, however, they dis- respondingly . In contrast, the Credit ufacturing and construction (mainly due third quarter of 2018 followed by a dete- forecast. play the most optimistic expectations. Volume of Commercial Banks' Long to the notably reduced number of resi- rioration of consumption and business Remittances and tourism, together with While private sector expectations tend Term Consumer Credits increased by dential and commercial buildings built confi dence that has already had negative foreign direct investment (FDI), are to worsen, they continue to remain 5.1% and 16.7% in monthly and yearly by construction companies ) sectors had consequences on Georgia’s economy among the main sources of foreign funds positive (see: http://iset-pi.ge/index. terms respectively. Overall, the consumer a negative impact on the growth fi gure. (see Figure 2). Thus, economic and coming into Georgia. In January, remit- php/en/business-confi dence). credit related variables had a slight neg- Based on the available data, one can political instabilities of the countries tances increased by 5.5% relative to the In addition, in January 2019 ISET-PI’s ative impact on the growth forecast. conclude that the main (negative and situated in the wider region are potential same month of the previous year. Once positive) drivers of the real GDP growth external threats to the Georgian economy again, the main contributors to this for 2019 were improved external statis- that might not be taken into considera- growth were the USA, EU, Azerbaijan Our forecasting model is based on the Leading Economic Indicator (LEI) tics, expansionary monetary policy and tion in our model yet. and Israel, while the reduction of money methodology developed by the New Economic School, Moscow, Russia. We increased monetary aggregates, deterio- In January 2019, exports grew by 7.2% infl ow from Turkey (-1.8 pp.) and Russia constructed a dynamic model of the Georgian economy, which assumes that all rated consumer and business confi dence year on year and this growth fi gure was (-3.0 pp.) had a negative impact on the economic variables, including GDP itself, are driven by a small number of fac- and restricted credit expansion. mainly driven by signifi cantly increased growth estimation. Regarding the num- tors that can be extracted from the data well before the GDP growth estimates exports/re-exports of motor cars, ciga- ber of visitors, Georgia experienced a are published. For each quarter, ISET-PI produces fi ve consecutive monthly EXTERNAL FACTORS – THREATS rettes, and cigars to Azerbaijan recovered 0.6% reduction in yearly terms. However, forecasts (or “vintages”), which increase in precision as time goes on. Our fi rst AND OPPORTUNITIES exports of wine and mineral waters to inbound tourism increased by 5.9% year forecast (the 1st vintage) is available about fi ve months before the end of the In 2018, economies throughout the region Russia and re-export of motor cars to on year. As Georgia is among those coun- quarter in question. The last forecast (the 5th vintage) is published in the fi rst enjoyed moderate growth – the Arme- Armenia. However, Georgian exports to tries in which remittances and income month of the next quarter. GEORGIA TODAY MARCH 12 - 14, 2019 BUSINESS 5 $32 Mln Project to Prevent Climate Disasters in Georgia

Underlining the importance of the project, Nino BY KETEVAN KVARATSKHELIYA Tandilashvili, the Deputy Minister of Environment Protection and Agriculture of Georgia, stated that this is the fi rst project of such an impressive scale new project with $32 million funding ever carried out in Georgia regarding the mitiga- has been launched to prevent the tion of climate threats. destructive consequences of natural “This is a 7-year project. In case of its successful disasters in Georgia. implementation, nearly 1.4 million residents in the The new initiative will fi rst be imple- country will be better protected from natural dis- mentedA in the region of Ajara, the zone with the asters and their negative consequences,” said Tandi- highest risk of natural disasters. Highly-precise lasvhili. geological and hydrological maps will be produced. The Deputy Minister also noted plans to col- The program will also expand to the rest of the laborate with higher education institutions during country and include the instalment of early warn- the project in order to train a new generation of ing systems in different regions. The instalment geologists, hydrologists, and meteorologists. process of the given systems has already com- The Swiss government has contributed $5 million menced in the basin of the River Vere in Tbilisi towards the project, whilst the Green Climate Fund, and in the Devdoraki Gorge in the north of the a fi nancial mechanism under the UNFCCC, allo- country. cated $27 million. Foreign Direct Investment in Georgia Decreased by 35% in 2018 Continued from page 1 attract investors. Considering the World Bank ranked Georgia on Other industries to receive substantial FDI were 6th place among the 190 economies where it is the real estate ($90 mln), hotels and restaurants easiest to do business in the world, it is perhaps ($72.3 mln), mining ($66.7 mln), agriculture and surprising that the percentage of FDI in Georgia fi shing ($15.9 mln) and health and social work dropped in 2018. ($13.2 mln). Various factors may have impacted the 2018 pre- FDI came from various countries around the liminary fi gures. For example, Georgia has a low world. Azerbaijan remained the highest investor level of education which, in turn, leads to a lack of with $240 mln, followed by the UK ($203.7 mln), qualifi ed workers. In addition, there is a shortage the Netherlands ($167.9 mln) and the United States of English language skills among the Georgian ($103.7 mln). Substantial amounts of FDI also came workforce. from Panama ($74.7 mln), the Czech Republic ($72.3 Moreover, Georgia’s lack of infrastructure, insuf- mln), China ($65.4 mln), South Korea ($63.2 mln), fi cient natural resources, low level of democracy, and Russia ($60.1 mln). and illegally-occupied zones make it less attractive FDI is an investment made by a company or indi- to investors. vidual in one country into a business located in Nonetheless, current projects are underway that another country. The National Statistics Offi ce of should help Georgia to increase its FDI. For exam- Georgia considers investments to be direct if the ple, the EU recently pledged €233 mln to the con- share of the investment exceeds 10 percent of the struction of the Anaklia Deep Sea Port which will company’s stock capital. enable goods to move more freely between Europe Due to the vital role FDI plays in the economic and Georgia, improving transport links for future growth of a country, FDI is important to Georgia investors. and the economy. Offering ease of doing business In order to achieve double-digit economic growth, to foreign companies helps to attract FDI. Addi- FDI in Georgia must reach at least $3 bln annually, tionally, political stability, low taxes, few regula- reported Forbes magazine. Politicians must ensure tions, a cheap or highly-qualifi ed workforce, stra- that they continue to improve the ease of doing tegic location, free trade, low levels of corruption, business in Georgia, whilst ensuring predictability economic openness, and good infrastructure can and stability for potential investors. GEORGIA TODAY 6 BUSINESS MARCH 12 - 14, 2019 The Glass Ceiling in Georgia

Louisa Vinton said that she was glad BY GABRIELLE COLCHEN that parity was respected among the UNDP. She then explained that women tend to wait for recognition when they he International Women's actually need to demand it. She also Association organized a emphasized the importance of solidarity panel discussion on Glass among women. She explained that, Ceiling for women in Geor- throughout her career, being pushed by gia and around the world. other older women helped her gaining TPetra Benkö, president of the association confi dence and achieving what she did. and wife of the Austrian Ambassador, Nino Ivanishvili was very inspiring and led the discussion during which women explained that she eventually became a from different backgrounds talked about journalist because she was determined their business experiences as women. to fi ght for democracy and for voices The panellists were Louise Vinton that could not be heard. She affi rmed (Head of UNDP in Europe and Central that “there is no ceiling or barrier that Asia), Ceren Yazgan (Turkish Ambas- cannot be broken” and that being strongly sador), Nino Ivanishvili (Dean of GIPA resolute in achieving our own goals is (Peruvian anti-corruption group), Magda the only possible way. Magradze (director Millennium Chal- Magda Magradze focused on the gap lenge Georgia) and Professor Ekatarine that exists between women and men in Sania. the STEM fi elds. She explained that A glass ceiling is the unreachable bar- women usually do not pursue carriers rier women face in their career when in these fi elds even though they have they want to rise to the top level. Indeed, studied a STEM subject. This is due to women still occupy a very small percent- stereotypes that tend to exclude women age of manager positions, even though from the engineering world for example. more women have graduated from uni- She believes that families should be bet- versity then men. ter educated since parents often have a Mrs. Yazgan explained that the glass large impact on the choice of their chil- ceiling begins with stereotypes. She said dren’s fi eld of education. Girls should that we need to stop assuming that we be made aware of all career possibilities Photo by Gabrielle Colchen know how other people live and who when they are at school. They need to they are before actually knowing them. understand that they can become human- Finally, the scientifi c professor Eka- she was studying at university. However, and more women enrolling in scientifi c She also stressed the importance of equal ity professionals just like civil engineers tarine Sania talked about her experience she also had a positive discourse argu- fi elds and she thinks that Georgia is going opportunities for men and women. if they wish to. being the only women in her class when ing that as a professor, she sees more in the right direction. The Case for Women in Boardrooms: Going Beyond Quotas mercial banks. Which leads us to the big quotas can help eradicate some inequal- out to focus on family. BY WIEBKE SCHLOEMER, IFC question: Are quotas enough? ities in the short term, deeper change Implementing women- and family- REGIONAL DIRECTOR, EUROPE Back in 2007, Norway became the in the gender landscape is only friendly workplace policies such as fl ex- AND CENTRAL ASIA fi rst state to implement a quota for possible through a comprehen- time arrangements and child-care ben- gender diversity on boards, requir- sive program of support. efi ts, and encouraging women to return ing that at least 40 percent of First, it’s crucial to ensure to work, can help prevent that loss. IFC’s alala Yousafzai once board members of listed com- that women actually stay in 2017 report, Tackling Childcare: The said: “We can’t all suc- panies were women. Other the work force. While Business Case for Employer-Supported ceed, when half of us European countries quickly there’s a near equal divide Childcare, demonstrated the rising rec- are held back.” Speak- followed suit. Despite skep- between the numbers of ognition among policymakers and busi- ing at her fi rst historic tics who argue that quotas male and female entry- nesses of the benefi ts to addressing these speechM at the United Nations in 2013, are mere window-dress- level workers in many issues. the then 16-year-old women’s and chil- ing and don’t actually countries, as work- The second challenge is to cultivate tal- dren’s right activist made a simple equa- help create more women ers move into mid- ent by investing in women’s professional tion. executives, the result career managerial development. Exposing more women In the 21st century, it seems incredible in Norway has been posts, gender managers to key operational responsi- that we are still discussing the case for positive. More than imbalances bilities and preparing them for the board- gender diversity and working to convince 40 percent of Nor- become more room is key. Women in Eastern Europe, businesses and governments of its impor- way’s corporate boards apparent, for example, represent 25–40 percent of tance. The case for more women in included women last mainly mid- to senior-level management. But a leadership roles is clear, but progress is year, up sharply from 6 because of look beneath this statistic reveals clear achingly slow. percent in. the number stratifi cation by gender and job function. This is despite ample evidence that While the Norwegian of women Female managers typically supervise companies perform better when they experience shows that who drop departments supporting core business have women on their boards. A 2016 functions, while male managers oversee OECD report, for example, showed that key operational and fi nancial units. companies with gender-diverse execu- There are also other gender differ- tive committees achieved 47 percent ences—most likely accumulated from higher return on equity and 55 percent years of conditioning—that should be higher gross income than companies addressed. Even the most accomplished with less diverse boards. A 2018 Harvard and experienced women often benefi t Business Review survey of 1,700 com- from training and coaching on how to panies found a “statistically signifi cant” assert themselves, how to tap into their relationship between diversity in lead- strengths to build their personal leader- ership and increased innovation. ship style, and how to communicate in Our work with the private sector to high-powered, male-dominated settings. promote gender diversity globally has Corporations can help by modifying shown that having more women on their training programs to account for boards has a strong impact on corporate these differences. governance, decision-making, and busi- While quotas raise awareness and help ness results. A recent IFC study in Egypt prioritize gender diversity and eventu- also showed that companies with women ally push the numbers up, they can only on their boards reported a higher return be qualitatively effective if they are on equity and investment. implemented alongside other more Despite the increased awareness, how- widespread measures. Focus on fi xing ever, much work remains. In Eastern the leaking pipeline of female talent, Europe, women held only 8.5 percent of promote more women into front-line board positions as of 2016, according to roles, and invest in women’s professional the International Labour Organization. development and we could fi nally see a In 2018, Georgia introduced legisla- more equitable corporate landscape in tion mandating a 20 percent gender the years to come. That would be good quota in supervisory boards for com- news for everyone. GEORGIA TODAY MARCH 12 - 14, 2019 BUSINESS 7 Female Georgian Winemakers to Hold Tastings Across US This Week

Wine founded by Tamuna Bidinashvili, BY SAMANTHA GUTHRIE Mavino founded by Marina Kurtanidze, and Freya’s Wine Cellar created by American transplant to Georgia Enek ive successful female Geor- Paterson. gian winemakers will be Gogowine’s Beriashvili (gogo means exhibiting their wines at tast- “girl” in Georgian) is just 30 years old. ing events across the United Trained as a PR specialist, she decided States this week. to join her family’s winemaking busi- FTastings will be held at bars and res- ness, starting with a small vineyard of taurants that feature Georgian wines in her own. Her wines are sold at organic New York, Los Angeles, and San Fran- wine shops in Georgia. “I have just real- cisco. The tastings will run from Satur- ized I found something I am really day, March 9 to Friday, March 15 and interested in. It gives me great pleasure feature wines from fi ve of Georgia’s to be here. Only a year ago, I knew very most prolifi c winemaking women. few things about this business and now One of the participants, Keto Ninidze, I am much more experienced. Last year’s founder and lead farmer of ODA Wines, harvest taught me a lot,” Beriashvili said told BM.ge that “wine tasting will be in a 2016 interview with Georgian Jour- held in those wine bars, restaurants and nal. wine stores, which were the fi rst ones Tamuna Bidinashvili makes her wine to popularize Georgian wines in the in the village of Gremi in Kakheti. She USA. They include: Brumaire, Wildair, has been making small batch, high qual- Uva Wine & Spirits, and Astor Wine & ity wine from her vineyards there since Spirits. This is a long list. Tasting will 2014. be conducted by wine professionals.” Mavino is Marina Kurtanidze’s encore Ninidze will offer tasters three less to her successful partnership with fel- common varieties of Georgian wine: low Georgian wine woman Tea Mela- shishveli ojaleshi, dzelshavi, and orbal- nashvili under the brand Mandili – one uri ojaleshi. ODA has been selling wine of the fi rst Georgian wine companies in the United States for the last two established by all women, in 2012. Now, years, at $25 (GEL 67) a bottle. They Mavino exports its qvevri wines to Eng- also export their wine to Japan, Ger- land, France, USA, Spain, Denmark, and many, and Israel – some of the fastest Japan. growing export destinations for the Freya’s Wine Cellar is the work of 25 Keto Ninidze, founder and lead farmer of ODA Wines country’s wines, alongside the top coun- year old Enek Freya Peterson, a native tries for exports: Russia, Ukraine, China, of Boston who has lived in Georgia for for the past four years. boys’ club. In the United States, Geor- Georgian winemakers exported 12 mil- Kazakhstan, and Poland. several years, following her passion for This handful of female winemakers gian wines often have a special follow- lion bottles of wine for a total of $30 Also presenting their wines to Amer- the local culture and wine. She soon are helping to open the US market for ing among natural wine lovers, and is million (GEL 80.4 mln). A small fraction ican consumers will be Gogowine, rep- purchased a vineyard and has been Georgian wines, and proving to local slowly gaining traction among connois- of that, just 128,145 bottles, went to the resented by Keti Berishvili, Tamuna making her own natural, qvevri wine traditionalists that wine is not just a seurs. In the fi rst two months of 2019, United States. GEORGIA TODAY 8 BUSINESS MARCH 12 - 14, 2019 Education for the 21st Century: Broad, Deep or Flexible?

of the 17th century was able to produce will they be able to acquire them? Would upholstery. She did so with the help of about their schooling experience. For BY ERIC LIVNY stunningly beautiful boots but could they benefi t from a modernized version instructional videos, freely available one, they are terribly bored – they have hardly do basic math, to say nothing of of the “deep and narrow” individual online, and mentors – master craftsmen little interest in memorizing French riv- engaging in a Socratic discussion of apprenticeship model, such as home- of the 21st century. She couldn’t care less ers or kings. Math and sciences, which y lecture on the future political or poetic subjects. With no schooling or its more radical, child-driven about formal degrees in any of the above they do enjoy, are taught at a snail’s pace, of education in the 21st general education, no Internet and no version, unschooling? Or, should we strive subjects. Instead, she cares about her as is suitable for the weakest students century was intended TV, few shoemakers of the 17th century to continuously upgrade the “broad and online portfolio and reputation. in their classes. They complain about for a small number of had any idea of the world outside their shallow” national standards to which our YouTube and Google, Khan Academy, learning by rote, as well as too many Caucasus University native towns. schools are required to teach? Coursera, EdX and many other provid- uninspiring, repetitive homework exer- studentsM and faculty. Since I don’t really In contrast, Charlie Chaplin’s character The answers to these questions are not ers of “massive open online courses” cises, leaving little time for guitar or know what school education will look in Modern Times does not have any clear, and they shouldn’t be for at least (MOOCs) make information, scientifi c programming (Katya and Jan’s passions, like in 20 or 30 years, my plan was to unique skills or deep knowledge of any three reasons. knowledge and practical skills increas- respectively). have an open-ended “Socratic discus- subject. He is a modern factory worker, Firstly, the schooling methods of the ingly more accessible than ever before. Don’t get me wrong, Jan and Katya are sion”, with other participants and myself trained to (very) quickly screw nuts onto past served a clear purpose: to train The best content – be it Khan Academy’s truly privileged to study in a French seated in a U-shape or a circle. Yet, the pieces of machinery that move along an expert farmers, craftsmen, factory work- math and economics, or Dr. Najeeb’s public school. The situation is far worse classroom was arranged in a very tradi- assembly line. He is a typical product of ers and patriotic citizens. But today, it is anatomy and physiology lectures – are for kids in the public education systems tional way. Behind me was a white board; the modern, early 20th century general hard to predict how the labor market just one click away for anybody with an of countries like Georgia and Armenia. facing me were neat rows of desks. That’s education system – itself an assembly will develop over the next 12 years, let internet connection. We can easily Georgian and Armenian kids memorize how the fi rst modern schools looked like line of factory workers and patriotic alone the next 25 years. It is not even “Google” recipes and disease symptoms, their own rivers and royalties, and learn in the second half of the 19th century. soldiers. clear in which country our kids will statistical procedures and necessary about the mythological eminence of their And that’s how most humans still teach Modern schools are a 19th century choose to live. And, with advances in pieces of programming code. When in own ancient civilizations. Yet, Georgian and are taught today. invention, designed to quickly and effi - automation and communication tech- need of advice, we can approach interest- and Armenian schools have neither great Yet, the way we learn is related to the ciently mass produce people with the nologies killing existing and creating based online communities and forums. teachers nor great infrastructure. In fact, type of knowledge or skills we are try- ability to man modern factories and new jobs at an ever increasing pace, the And, with instructional videos available they are a huge waste of time for the vast ing to acquire. Learning to become a trenches (also 19th century inventions). best schooling strategy might be one on pretty much any topic, we can con- majority of kids attending them. farmer or a master craftsman in the 17th The kind of education modern schools preparing students for an uncertain pro- tinue learning all our lives. century, for example, was very different were equipped to provide was, well, very fessional future. A future in which they Will the ever increasing possibilities DON’T MISS A GOOD CRISIS! from learning how to become a patriotic standard, one-size-fi t-all: the future sci- are constantly pushed to learn new skills of fully individualized online and men- The impasse with public school reforms soldier in a 19th century nation state, or entist and the artist, the business genius and ‘retool’. Training people for an uncer- tor-assisted learning cancel the need for in Georgia, Armenia and other develop- an assembly line worker in a factory and the agile mathematical mind. tain future is essentially about training schools as a collective learning frame- ing (and not only) countries around the powered by Watt’s steam engine. Since modern factories did not require how to learn – independently and effec- work? Probably not. Schools are likely world may be a blessing in disguise. If terribly skilled workers, schools focused tively. to retain their function as a framework public schools continue to provide basic A BIT OF HISTORY on endowing students with shallow but Secondly, while there are not too many for learning basic social skills: discipline, literacy and numeracy, according to their In 1689, the year of England’s Glorious relatively broad knowledge in a standard points we can make about education stamina, teamwork, brainstorming solu- original (broad but shallow) 19th century Revolution and the Bill of Rights, the set of subjects, such as arithmetic, national models for the 21st century in a defi nite tions to problems or engaging with each design, the demand for higher level learn- vast majority of Europe’s population geography and history, national language manner, one thing is certain: There will other in a Socratic discussion. Schools ing – deeper, more individualized and were expert farmers and craftsmen – and literature, as well as prayer (in the be several more approaches to learning will provide access to lab equipment and fl exible – will be addressed by private shoemakers and carpenters, stonemasons national language!). Administrative effi - than ever before in human history. Stand- technologies (for example, Robotics and actors, and through other means. and smiths, bakers and butchers. Work- ciency, in addition, required that students ard curricula and classrooms – the Ford 3D printing) that may not be accessible Armenia’s TUMO Center for Creative ing with primitive tools, they were amaz- were grouped by age rather than mental T Model of education – will surely con- from everybody’s home. Finally, and Technologies is an excellent example of ingly skilled at their respective trades. maturity, interest or ability, and that tinue to retain their signifi cance in those ironically, schools may be reengineered doing just that. 14,000 TUMOians, ages They did not attend schools or profes- everybody were taught at the same pace. parts of the world battling against illit- to become a place for kids to take a break 12-18, are currently enrolled in TUMO’s sional colleges, since none existed at Just like the standard Ford Model T eracy. Elsewhere, the emphasis will from tedious studies at home, meet other fi ve centers in Armenia. There are no that time. Instead, they went through was a technological solution for mass inevitably shift towards more individu- kids, have fun or work on joint projects. entry exams and no fees (TUMO is lengthy apprenticeships, starting as a (middle class) mobility, modern schools alized, student-centered approaches fi nanced by rental fees paid by IT and teenager, helping their masters in were the institutional and technological allowing kids to discover and develop AN IMPASSE? media companies occupying the upper exchange for food, clothes, shelter and solutions for mass literacy and numeracy. their unique talents. Not everybody ought My younger kids, Jan (14) and Katya (13) fl oors of its buildings). Instead of lec- an opportunity to acquire all the skills On average, school graduates were not to become mathematicians. Not all par- are enrolled in a very good school, Ecole tures, students follow an AI-controlled, associated with their crafts. much better than the 17th century appren- ents would want their kids to be subject Française du Caucase – a well-fi nanced individually tailored learning path with Most of the learning back in 1689 hap- tices at Socratic discussions. However, to national propaganda. and well-managed public French school. special workshops for those achieving pened simply by doing, under the mas- they could count, and were able to read Thirdly, and perhaps most importantly, In addition to basic math, sciences and expected outcomes. Instead of being ter’s watchful eye. The knowledge and jingoistic newspapers teaching them technology ‘disrupts’ the very way in technology, Jan and Katya study French grouped by age and squeezed into stand- skills one acquired in this way were who the enemy was and why it was good which we learn – anything. Over the past language and literature, memorize France’s ard classrooms, students work in a seem- unique – including carefully guarded to die for one’s country. several years, I have observed my spouse royal dynasties and rivers, and are (sup- ingly chaotic but carefully crafted and professional secrets passed down from Ania (PhD in Law from Krakow’s Jagiel- posed to be) convinced that France is a totally inspiring open space, 600 at a one generation of craftsmen to another. THE FUTURE OF LEARNING lonian University) successfully mastering cornerstone of global civilization. time. They learn at their own pace. Build- They were extremely deep but also What kind of knowledge and skills will several applied skills – from web design As most kids of their generation, nei- ing an online portfolio and investing in extremely narrow. An expert shoemaker our kids need in the 21st century and how and graphic editing to woodworking and ther Jan nor Katya are particularly happy their own future. GEORGIA TODAY MARCH 12 - 14, 2019 BUSINESS 9 T-Shirts and Furniture in Short Supply as Startups Boom in Estonia

n Estonia’s capital of Tallinn, today a leading were built, and more people were hired. 2019 will global hub for tech startups, there is a mas- therefore be the year of newcomers,” said Kotkas. sive temporary short supply of offi ce equip- Indeed, data gathered by the Estonian Startup ment needed to furnish the growing number Leaders Club notes that startups in Estonia employ of coworking spaces and company head- 581 people from abroad. Supporting this notion is Iquarters in the city. the annual “Desirable Employer Survey of 2019” “We need hundreds of chairs for new employees, (conducted by CV Keskus), which point out that but even IKEAs in neighboring Latvia and Finland Estonian startups are among the top companies can only offer us a combined weekly supply of 20 that people would like to work for, which – in addi- chairs,” says Kaarel Kotkas, CEO of online identity tion to Veriff – also includes Cleveron and Starship verifi cation company Veriff. Technologies. This clearly illustrates that start-ups The supply problem, due to the rising number of are considered as an attractive work environment, employees that are basing themselves in the city not just among Estonians, but people from all cor- every day, has also stretched to T-shirts; local pro- ners of the world. ducers are struggling to keep up with the growing “After 3 years of living and working at the Bay demand for custom-made apparel with startup slo- Area in San Francisco, Estonia still beats most gans and logos. Hence, there is a backlog in waiting places to build an early phase start-up company; times with local designer providers such as Reet despite missing a local IKEA,” said Sten Tamkivi, Aus, whose certifi ed brand of T-shirts are made from CPO at global mobility company Topia and Presi- sustainable and recycled materials such as surplus dent of the Estonian Startup Leaders Club. industry materials. Estonia is ramping-up its drive to bring in more “It can take up to 7 months to get shirts from Reet, global tech talents to base themselves in Tallinn. since the demand is so high,” added Kotkas. The Work in Estonia program – an initiative by Tallinn today is home to the highest proportion Estonia’s government – recently launched the sec- of tech companies with valuations of over US$1 ond edition of its annual Career Hunt campaign, billion in per capita evaluation. Overall, there are which identifi es some of the world’s most promis- currently around 550 startups in Estonia engaging ing tech talents and brings them to Estonia for free in a variety of sectors ranging from FinTech to to give them a shot at working with the tech com- GreenTech and beyond. This startup growth reached panies based there. a signifi cant milestone in 2018, with the number of The Career Hunt program seeks to build on its startup employees having grown by 26 percent success in 2018, whereby 5,500 people from around from 2,981 people in 2017 to 3,763 last year. the world applied for a fi ve-day free trip to Estonia. “The challenge to fulfi ll the tremendous amount of From that fi gure, 23 successful candidates landed furniture and T-shirts is probably a good one to have,” face-to-face interviews and eight of them have says Kaisa-Triin Kosenkranius from the Work in Esto- already started work with the tech companies. nia program. “There is strong market demand on This year’s program will see 14 Estonian IT indus- both fronts, and this has been due, in no small part, try heavyweights participate in the initiative to fi nd to Estonia’s popularity as a tech talent destination.” and nurture more talent. The companies include Boosting that popularity, are the biggest start-ups TransferWise, Monese, Veriff, Starship Technolo- based in the city. Top 20 companies – which include gies, Pipedrive, Thorgate Digital, Taxify, Malware- likes of Veriff, Transferwise, and Taxify – collec- bytes, Finestmedia, Icefi re, Alien Gain (petPawal), tively account for an astonishing 62 percent of new Swedbank Estonia, Genius Sports Services Estonia, jobs created by startups in 2018. Veriff showed the and Mooncascade. biggest increase in percentage, with over 490 per- Combining the massive growth in startup fund- cent employee growth in their Estonian offi ce. Last ing – bolstered by the US$328 million received in month, the company also announced that they had investments last year – and the number of tech surpassed their 100-employee mark in all their employees, Estonia’s startup scene is now more offi ces and that they are looking to add 100 more vibrant than ever. 2019 is set to continue this trend people in the coming year. and the world will be looking forward to seeing “2018 was a renaissance for the new wave of Esto- what new innovations the country’s start-up scene nian startups. Funding was raised, bigger offi ces will produce in the coming year. Georgia, Lithuania Sign Cybersecurity Cooperation Declaration

in the air, on land, and at sea. “In order for Georgia’s critical infrastructure not to be threatened as a result of cyber-attacks, it is necessary to strengthen our national efforts, deepen our relations with international partners, learn from their experience, and conduct joint trainings in this fi eld,” he said. Izoria added that Georgia desires to reach these goals in close cooperation with the National Cyber Security Centre of Lithuania to ensure that Geor- BY THEA MORRISON gia’s critical infrastructure is maximally protected from cyber-attacks. Georgian President Salome Zurabishvili and her Lithuanian counterpart Dalia he Minister of Defense of Georgia Grybauskaite also attended the signing ceremony. Levan Izoria and his Lithuanian coun- Afterwards, Zurabishvili visited the National terpart Raimundas Karoblis signed a Museum of Lithuania where the exhibition “Dec- declaration of intent on cooperation laration of the Council of Lithuanian Freedom Fight in cybersecurity on March 7. Movement of February 16, 1949 and its Signatories” TThe declaration aims to advance cooperation is staged. The two presidents had a meeting on between the two countries in cybersecurity. March 7, after which President Dalia Grybauskaite During the signing ceremony, the Georgian min- hosted an offi cial dinner for the Georgian Presi- ister highlighted that NATO allies recognized dent. cyberspace as an operational domain in which The sides highlighted the exemplary friendship NATO must defend itself as effectively as it does and cooperation between Georgia and Lithuania. GEORGIA TODAY 10 POLITICS MARCH 12 - 14, 2019 Bakhtadze Presents Roadmap to EU Membership in Brussels gia has been successful in fulfi lling this BY SAMANTHA GUTHRIE task, but we believe that there is an opportunity to continue integration with focus on concrete sectors.” Consulta- ast week, while attending the tions and detailed discussions began at joint meeting of the Govern- the meeting, and, Bakhtadze added, “I ment Commission on EU can tell you – though it may be a bit too Integration and the State Com- early – that this roadmap will help us mission on NATO Integration, consolidate democracy in Georgia, GeorgianL Prime Minister Mamuka advance our success to a higher level, Bakhtadze declared that his country’s overcome the economic challenges cur- relationship with the European Union rently facing Georgia, and successfully has never been so advanced as it is now, fi nalize the overarching reforms that and, proudly, noted that Georgia is suc- apply to all directions, including struc- cessfully implementing its responsibili- tural reforms. I would like to single out ties to the EU. the sector of education. I believe that “I believe that we have sufficient this document will help provide the resources to fulfi ll a part of our obliga- public with a concrete criterion for tions ahead of schedule,” said Bakhtadze, measuring Georgia's development and optimistic about the legislative and insti- progress toward Europe.” tutional reforms that Georgia has carried Also discussed at the meeting were the out – a mandatory precondition for Euro- issues of the successfully competitive Atlantic integration. presidential election in October of last The joint meeting approved Georgia's year, progress in rule of law reforms, Annual National Program, one of the progress in the implementation of the central mechanisms towards NATO Human Rights Strategy and its Action membership. Bakhtadze reiterated that Plan, the long-awaited adoption of the Georgia is a special and reliable partner Photo: Press Offi ce of the Prime Minister law on Occupational Health and Safety, for NATO, as evidenced by the strong the DCFTA, and the various fi nancial messages made at the recent Munich the Georgia-EU Association Council in tant document enabling us to consolidate fl awless visa-waiver process is one of and technical assistance the EU has pro- Security Conference. “This year, we are Brussels. There, he provided partici- our progress under European integration our government's top priorities because, vided to Georgia in the last year. hosting NATO's Secretary General, pants with Georgia’s “Roadmap 2EU,” and to take further steps beyond the besides practical benefi ts, visa-free travel The EU underlined its commitment to Military Committee, and North Atlantic a document that aims to support and Association Agreement, toward deeper also carries political weight.” continue assisting Georgia in the Asso- Council, which is a great honor and, at enhance Georgia’s integration into the and more comprehensive integration, Speaking about the roadmap at the ciation Agenda’s key areas of coopera- the same time, responsibility. Still, all EU. including sectoral integration.” Georgia-EU Association Council meet- tion: economic development and market this reiterates that Georgia-NATO rela- During the Georgia-EU Association One of the most important steps towards ing, the Prime Minister said, “Georgia opportunities; strengthening institutions tions have advanced to a new level,” Council meeting, Bakhtadze summarized integration over the past year include is the leader of the Eastern Partnership. and good governance; connectivity, added Bakhtadze. Georgia’s progress towards European the visa-free travel regime extended to When the implementation of the eastern energy effi ciency, environment and cli- The following day, on March 5, integration and presented the roadmap, Georgian citizens by the EU in March Partnership Project started ten years mate change; enhancing mobility and Bakhtadze attended the 5th Meeting of which, as he explained, is “a very impor- 2018, explained Bakhtadze, “Ensuring a ago, it was truly a milestone event. Geor- people-to-people contacts. Ivane Matchavariani on the Importance of Education Reforms “In general, small countries like us with of a teacher becomes one of the most TRANSLATED limited income try to avoid making any popular,” continued Matchavariani. BY KETEVAN KVARATSKHELIYA commitment on a legislative level in any He also claimed that improving the sphere. However, I do strongly believe level of education is one of the major that this is a courageous step which will preconditions of the country’s economic hile evaluating the help our country to prosper and over- development. new education ini- come the problem of poverty in the “We will increase the prestige of this tiative presented by future. Within the scope of the project, profession, higher the level of education the Prime Minister, the education budget will increase to and, in this way, contribute to the ame- ‘Education – A Road reach 6% of the total GDP by 2022. This lioration of the country’s economic Wto Freedom’, the Minister of Finance of value makes more than a quarter of the situation. Today, the countries with high Georgia Ivane Matchavariani stated to current tax income,” stated the minister. human capital are occupying leading TV Pirveli “currently, there is no theme “Most importantly, these fi gures are positions. The given fi gure is measured of more importance than the initiative backed up with multilateral reform which according to a number of indexes, includ- regarding education reform.” involves the construction of new schools ing the World Bank Human Capital Index. The minister said the government has and rehabilitation of already existing We are on the 61st line according in this made a major step, which will contribute ones; equipping them with the latest index and, after launching the reforms, to the prosperity of the country and technologies; improving the level of we aim to be included among the top-10 eradication of poverty within its borders teachers’ qualifi cations and increasing countries, within the following 10-12 in future. their salaries in a way that the profession years,” said Matchavariani. SUBSCRIBE!

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[email protected] +995 32 229 59 19   Tel: (995 32) 2 45 08 08 10 Galaktion Street E-mail: [email protected] GEORGIA TODAY MARCH 12 - 14, 2019 POLITICS 11 Controversial Road Would Improve Tourism but not Agriculture

the road construction on their behalf. BY RYAN MICHAEL SHERMAN “We want it both ways—we want people living up there, but we don’t want to build a road,” said Otari Tsiklauri, a n May of last year, construction resident of Roshka. “But it doesn’t work of the initial sections of the like that, does it? It is the 21st century Sno-Juta-Roshka-Shatili-Omalo- after all. People should not be struggling Khadori Valley-Batsara-Akhmeta to survive with the help of some horses road construction project com- and donkeys.” Imenced. The project aims to build a road Yet locals also expressed a strong pref- from Kazbegi through Khevsureti to erence for improving roads from lowlands Tusheti. It would represent the fi rst over an interregional highway. With interregional paved highway for the area. stretches reaching as high as 3100 meters, “Road users and especially, the local the Kazbegi-Khevsureti section of the population, will be able to move on a road will be closed much of the year and new, comfortable and safer road,” says will require substantial maintenance. an offi cial statement at build.gov.ge. The state of the existing roads to the “Travel time and cost will be reduced. lowlands should be dealt with fi rst, locals Furthermore, regional connectivity will said, as poor conditions increase the cost be improved, and social-economic oppor- to transport goods and materials and tunities enhanced.” make access to Khevsureti seasonal and This project has been met with sig- highly dependent on weather conditions. nifi cant pushback. A popular petition These constraints reduce the production called ‘Save the High Caucasus Moun- capacity of local farms and hinder the tains from Destructive Road Construc- development of mountain dairy and tion’ criticizes the project for the envi- livestock value-chains. ronmental damage that will result. They Residents felt the new Kazbegi-Khevs- also assert that such a road will violate ureti road will primarily benefi t house- the rights of traditional communities holds directly involved in the summer and feeding diffi culties. While much has roads that link mountainous regions to Some commenters have claimed sec- and that confl ict with local populations tourism industry in popular destinations been done in Georgia since to relieve each other are very important and we tions of the Sno-Juta-Roshka-Shatili- will be inevitable. The petition, which such as Roshka, Shatili, and Mutso. For these constraints, Khevsureti and Tush- are working on them. They are impor- Omalo-Khadori Valley-Batsara-Akhmeta has collected nearly 10,000 signatures, most Khevsureti households, income is eti still suffer from the poor infrastruc- tant because otherwise it would be road construction project have since calls on the government of Georgia to generated by traditional agriculture such ture making crucial inputs accessible. impossible to preserve these regions’ been canceled and much of the road will stop this project. as cattle raising and dairy processing for Khevsureti has also experienced severe cultures for future generations.” now not be paved, but no offi cial updates Yet Khevsureti residents do not oppose mountain products which can be sold outmigration in recent years. The offi cial While connectivity is crucial for alle- have been issued about the project which the project and have long petitioned for for a premium on lowland markets such 2014 census recorded only 354 people viating the diffi cult mountain living was set to end in February this year, improved infrastructure in Khevusreti, as hacho, cheese, erbo and matsoni. living in the area, down from 866 people conditions that lead high rates of outmi- according to the current government according to interviews conducted in A 2015 USAID report credits dairy in the 2002 census. gration, it is unclear if a road from Kaz- project page at build.gov.ge. A govern- Khevsureti in the summer of 2017. They challenges in Georgia to a lack of quali- In February last year, former prime begi and Khevsureti to Tusheti would ment spokesperson could not be reached disagree with other Georgians who oppose fi ed veterinarians, access to medicines, minister Giorgi Kvirikashvili said, “the help reverse these trends. for comment. Gov't to Tighten School Excursion Regulations protection of child safety in public activ- BY THEA MORRISON ities indicates that transportation of food during excursions should be carried out in compliance with sanitary conditions. rom 2020, Georgia is tighten- The Municipal Service of Children ing regulations for school Protection and Support will monitor the excursions. The changes have maintenance of the proper norms regard- been made to the Code of ing children’s food during excursions. Children of Georgia. The Code of Children has already been FThe initiator of the Code is the Human defi ned and the committee hearings have Rights and Civil Integration Committee also been scheduled. When the discus- of the Parliament. sions at the committees are over, the The article, which regulates the pro- draft will be sent to the Parliament of tection of children's rights in public Georgia for approval. events, consists of eight paragraphs. The deadline for the enactment of the Under the new regulations, groups law is June 2020. Violation of the code’s going on excursions should be accom- regulations will result in different sanc- panied by a person who has undergone tions imposed by law. a primary medical care course. School excursion regulations were fi rst In addition, organizers must notify the tightened in Georgia last year, after the police, fi re-rescue and emergency ser- June 9 accident during a school excursion vices of the the place, time and duration which left 4 dead and 21 people injured. of the excursion. After the primary regulations, the Moreover, according to the Code, the school is required to request documents class head should have access to all data from the driver certifying their driving about the children participating in some qualifi cation and the vehicle’s technical public events, including information qualifi cations. about a child’s special needs and about In addition, if an excursion is organ- the instructor of the event and the qual- ized by an educational institution or by ifi cation of the person who drives the Photo source: eurus.ge parents, it is necessary for the school to children. The teacher can also request dition of the vehicle. case of their absence, children must be nurse can inform the Ministry of Educa- be informed about the excursion. An recommendations about the driver and During the transportation of children accompanied by at least one adult who tion, who will provide them with a qual- adult, who has undergone a fi rst aid their driving license, as well as docu- and some public events, it is necessary has undergone the primary medical care ifi ed staff member. medical course, must also be included mentation confi rming the technical con- for a doctor or nurse to be present. In course. Schools who have no doctor or Article 66 of the Code concerning the in the group.

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