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Toward a New Partnership: Georgian Voices

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Photo: World Bank

Every winter, Beso Idoidze stands guard alone over the historical highland village of Dartlo. Even the harsh cold winds of Tushetian winters won’t make Beso abandon his post. As long as there is wood to burn and essential food items like potatoes, sugar, flour and olive oil in his larder, Beso perseveres.

Situated 2,000 meters above sea level, Dartlo village is cut off from the outside world from late September to the end of April, during which time it is only accessible by helicopter.

Once summer arrives, Dartlo’s other residents start to return. Their only source of income is tourism. Some own guest houses, others produce traditional handicrafts, while those who have horses offer riding tours. Some people also get involved in the ongoing restoration work that sustains the vernacular architecture of this unique village.

However, the tourism season is short: if lucky, the village might be able to stay open for four to five months – from early June to mid-October. That is why most of the residents prefer relocating to other, larger towns, or to the capital Tbilisi – bringing them closer to regular jobs. Over the years, the number of residents in Dartlo and neighboring villages has been steadily declining, leaving only elders like Beso to hold down the fort.

Maia Kiknadze runs a travel agency that was established in 1991, right after Georgia gained its independence. Caucasus Travel, the very first tour operator in Georgia, was created at a time when the country was virtually unknown to people internationally, had no tourism infrastructure, and lacked workers trained in the tourism-service industry.

According to one employee, “The company has spent many years and a lot of effort promoting the country internationally and training staff such as tour guides and drivers. In addition, because of the severe scarcity of places for guests to stay, we had to personally visit the regions and scout for living quarters suitable for foreign visitors.”

In the beginning, the company consisted of only three people, its founders. Within a few years, however, Caucasus Travel had grown and spawned two additional companies, Georgian Events and Explore Georgia, while a third company, CT Auto Georgia, came along later. By 2007, all of these companies, along with several others, were united under the banner of one holding company – Georgian Hospitality Group (GHG), which today employs 60 people full-time.

Georgia is increasingly renowned internationally for its culture, wine and cuisine, and adventure and eco-tourism. Maia believes that her company has played a considerable role in raising awareness about Georgia and in helping build-up its burgeoning tourism industry.

Lia Aleksishvili, who lives in Georgia’s Kakheti region, remembers when her bakery in the city of Telavi was only a tiny business. Over the years, she has managed to transform the small shop – which often struggled to make ends meet – into a successful and bustling local bakery.

Lia’s business also benefits the local community. The bakery employs four full-time workers and, when the holiday season arrives and demand for desserts and pastries peaks, four more people join part-time. Lia has also managed to use some profits from the bakery to invest in renovating the second floor of her building, turning it into a popular bed and breakfast.

Manana is a stay-at-home mother of seven children who are aged between 9 and 22 years. Her family lives in a three-room cinderblock hut with a leaky roof and cardboard for windows. Her husband Tamaz spends most of his time at the landfill hunting for scrap metal, and is the sole breadwinner.

Manana sees herself as living on the edge of extreme poverty, but she believes that there are households which are doing much worse. She is proud of her choice to have so many children. “They wear each other’s hand-me-downs, and it’s a lot of work, but I love kids. I always wanted to have as many as possible. There are large families who live in train carts, or who don’t even have a roof over their heads. There are people much worse off!”

Manana believes that the best way to tackle poverty is through equal access to education. “When someone with no ability can get into a school just because they can pay, and when my child, who is talented, cannot just because we don’t have money, that is wrong,” she says. “They are trading talent for money and I don’t want that to happen in our country anymore. My 14-year-old daughter Iro is great at table tennis, but we can’t afford to equip her or pay for regular lessons.”

Monthly social assistance from the state to the family amounts to GEL 500, which they claim is barely enough to buy shoes for all seven children, not to mention other mandatory things for school that don’t fall under the scope of the assistance program. Having an illegal job, with the fear of losing social assistance for the entire family, doesn’t seem like a promising solution to fighting poverty, Manana argues.

Nevertheless, Manana does her best to stay positive and optimistic about the future. This mother of seven dreams about having enough space for every one of her kids, in a house with dry walls and a roof that keeps them all warm and healthy.

Rusudan Kekelidze is the Principal Teacher at public school #210 in Tbilisi. In the early 1990s, she was at the very start of her professional career as a teacher. She still has vivid memories of that time: the ever-present smell of kerosene, students sharing tiny desks, and very poorly-equipped classrooms. But she also remembers that everyone had a common desire – to survive.

“It may sound dramatic now, but it truly was a fight for survival – physically, literally,” says Rusudan. “It was a fight for the future. No matter what the skeptics might say, we have travelled a long and difficult path since then. Today, we see how our school has developed. It is so much better than we could have imagined. Take, for example, the school’s infrastructure as a vivid sign of progress. Or, just listen to the words and sentiments in the hallways – I can, I want to, I will do, I’m happy to…”

“The future I imagine is more colorful and cheerful, and focused on success. I hope our students are able to start preparing their future paths here, within these walls. I hope the school is a good model for life, which is gradually developed and enriched with knowledge and practice,” says Rusudan.

Source: World Bank

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Eastern Europe

Latvia developed new tasks for NATO soldiers

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Member of the Latvian Saemas’ national association “Everything for Latvia!” and Freedom”/LNNK Jānis Dombrava stated the need to attract NATO troops to resolve the migration crisis. This is reported by la.lv.  In his opinion, illegal migration from the Middle East to Europe may acquire the feature of an invasion. He believes that under the guise of refugees, foreign military and intelligence officers can enter the country. To his mind, in this case, the involvement of the alliance forces is more reasonable and effective than the actions of the European border agencies. Dombrava also noted that in the face of an increase in the flow of refugees, the government may even neglect the observance of human rights.

The Canadian-led battlegroup in Latvia at Camp Ādaži consists of approximately 1512 soldiers, as well as military equipment, including tanks and armoured fighting vehicles.

Though the main task of the battlegroup in Latvia is country’s defence in case of military aggression, Latvian officials unilaterally invented new tasks for NATO soldiers So, it is absolutely clear, that Latvian politicians are ready to allow NATO troops to resolve any problem even without legal basis. Such deification and complete trust could lead to the full substitution of NATO’s real tasks in Latvia.

It should be noted that NATO troops are very far from being ideal soldiers. Their inappropriate behaviour is very often in a centre of scandals. The recent incidents prove the existing problems within NATO contingents in the Baltic States.

They are not always ready to fulfill their tasks during military exercises and training. And in this situation Latvian politicians call to use them as border guards! It is nonsense! It seems as if it is time to narrow their tasks rather than to widen them. They are just guests for some time in the territory of the Baltic States. It could happen that they would decide who will enter Latvia and who will be forbidden to cross the border!

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Eastern Europe

Changes are Possible: Which Reforms does Ukraine Need Now?

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Photo: Robert Anasch/Unsplash

The past 16 months have tested our resilience to sudden, unexpected, and prolonged shocks. As for an individual, resilience for a country or economy is reflected in how well it has prepared for an uncertain future.

A look around the globe reveals how resilient countries have been to the COVID-19 pandemic. Some have done well, others less so. The costs of having done less well are almost always borne by the poor. It is for this reason the World Bank and the international community more broadly urge—and provide support to—countries to undertake economic and structural reforms, not just for today’s challenges but tomorrow’s.

One country where the dialogue on reform has been longstanding and intense is Ukraine. This is particularly true since the economic crisis of 2014-2015 in the wake of the Maidan Revolution, when the economy collapsed, and poverty skyrocketed. Many feared the COVID pandemic would have similar effects on the country.

The good news is that thanks to a sustained, even if often difficult, movement on reforms, Ukraine is better positioned to emerge from the pandemic than many expected. Our initial projection in the World Bank, for example, was that the economy would contract by nearly 8 percent in 2020; the actual decline was half that. Gross international reserves at end-2020 were US$10 billion higher than projected. Most important, there are far fewer poor than anticipated.

Let’s consider three reform areas which have contributed to these outcomes.

First, no area of the economy contributed more to the economic crisis of 2014-2015 than the banking sector. Powerful interests captured the largest banks, distorted the flow of capital, and strangled economic activity. Fortunately, Ukraine developed a framework to resolve and recapitalize banks and strengthen supervision. Privatbank was nationalized and is now earning profits. It is now being prepared for privatization.

Second, COVID halted and threatened to reverse a five-year trend in poverty reduction. Thanks to reforms of the social safety net, Ukraine is avoiding this reversal. A few years back, the government was spending some 4.7 percent of GDP on social programs with limited poverty impact. Nearly half these resources went to an energy subsidy that expanded to cover one-in-two of the country’s households.

Since 2018, the Government has been restructuring the system by reducing broad subsidies and targeting resources to the poor. This is working. Transfers going to the poorest one-fifth of the population are rising significantly—from just 37 percent in 2019 to 50 percent this year and are projected to reach 55 percent in 2023.

Third, the health system itself. Ukrainians live a decade less than their EU neighbors. Basic epidemiological vulnerabilities are exacerbated by a health delivery system centered around outdated hospitals and an excessive reliance on out-of-pocket spending. In 2017, Ukraine passed a landmark health financing law defining a package of primary care for all Ukrainians, free-of-charge. The law is transforming Ukraine’s constitutional commitment to free health care from an aspiration into specific critical services that are actually being delivered.

The performance of these sectors, which were on the “front line” during COVID, demonstrate the payoff of reforms. The job now is to tackle the outstanding challenges.

The first is to reduce the reach of the public sector in the economy. Ukraine has some 3,500 companies owned by the state—most of them loss-making—in sectors from machine building to hotels. Ukraine needs far fewer SOEs. Those that remain must be better managed.

Ukraine has demonstrated that progress can be made in this area. The first round of corporate governance reforms has been successfully implemented at state-owned banks. Naftogaz was unbundled in 2020. The electricity sector too is being gradually liberalized. Tariffs have increased and reforms are expected to support investment in aging electricity-producing and transmitting infrastructure. Investments in renewable energy are also surging.

But there are developments of concern, including a recent removal of the CEO of an SOE which raised concerns among Ukraine’s friends eager to see management independence of these enterprises. Management functions of SOE supervisory boards and their members need to remain free of interference.

The second challenge is to strengthen the rule of law. Over recent years, the country has established—and has committed to protect—new institutions to combat corruption. These need to be allowed to function professionally and independently. And they need to be supported by a judicial system defined by integrity and transparency. The move to re-establish an independent High Qualification Council is a welcome step in this direction.

Finally, we know change is possible because after nearly twenty years, Ukraine on July first opened its agricultural land market. Farmers are now free to sell their land which will help unleash the country’s greatest potential source of economic growth and employment.

Ukraine has demonstrated its ability to undertake tough reforms and, thanks to the COVID-19 pandemic, has seen the real-life benefits of these reforms. The World Bank looks forward to providing continued assistance as the country takes on new challenges on the way to closer European integration.

This article was first published in European Pravda via World Bank

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Eastern Europe

Liberal Development at Stake as LGBT+ Flags Burn in Georgia

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Photo: Protesters hold a banner depicting U.S. Ambassador to Georgia Kelly Degnan during a rally against Pride Week in Tbilisi, Georgia July 1, 2021. Credit: REUTERS/Irakli Gedenidze

Protests against Georgia’s LGBT+ Pride parade turned ugly in Tbilisi on July 5 when members of the community were hunted down and attacked, around 50 journalists beaten up and the offices of various organizations vandalized. Tensions continued the following day, despite a heavy police presence.

On the face of it, the Georgian state condemned the violence. President Salome Zourabichvili was among the first with a clear statement supporting freedom of expression, members of parliament did likewise and the Ministry of Internal Affairs condemned any form of violence.

But behind the scenes, another less tolerant message had been spread before the attacks. Anxiety about this year’s events had been rising as a result of statements by the government and clergy. Prime Minister Irakli Garibashvili suggested the march “poses a threat of civil strife.” The Georgian Orthodox Church meanwhile condemned the event, saying it, “contains signs of provocation, conflicts with socially recognized moral norms and aims to legalize grave sin.”

For many, these statements signified tacit approval for the abuse of peaceful demonstrators. Meanwhile, the near-complete absence of security at the outset of the five-day event was all too obvious in Tbilisi’s streets and caused a public outcry. Many alleged the government was less focused on public safety than on upcoming elections where will need support from socially conservative voters and the powerful clergy, in a country where more than 80% of the population is tied to the Georgian Orthodox Church.

The violence brought a joint statement of condemnation from Western embassies. “Violence is simply unacceptable and cannot be excused,” it said. The Pride event was not the first and had previously been used by anti-gay groups. Violence was widespread in 2013 — and the reality of attacks against sexual minorities in Georgia remains ever-present.

In a socially conservative country such as Georgia, antagonism to all things liberal can run deep. Resistance to non-traditional sexual and religious mores divides society. This in turn causes political tension and polarization and can drown out discussion of other problems the country is marred in. It very obviously damages the country’s reputation abroad, where the treatment of minorities is considered a key marker of democratic progress and readiness for further involvement in European institutions.

That is why this violence should also be seen from a broader perspective. It is a challenge to liberal ideas and ultimately to the liberal world order.

A country can be democratic, have a multiplicity of parties, active election campaigns, and other features characteristic of rule by popular consent. But democracies can also be ruled by illiberal methods, used for the preservation of political power, the denigration of opposing political forces, and most of all the use of religious and nationalist sentiments to raise or lower tensions.

It happens across Eurasia, and Georgia is no exception. These are hybrid democracies with nominally democratic rule. Armenia, Georgia, Kyrgyzstan, and others have increasingly more in common, despite geographic distance and cultural differences.

Hungary too has been treading this path. Its recent law banning the supposed propagation of LGBT+ materials in schools must be repealed, European Commission President Ursula von der Leyen said on July 7. “This legislation uses the protection of children . . . to discriminate against people because of their sexual orientation . . . It is a disgrace,” she said.

One of the defining features of illiberalism is agility in appropriating ideas on state governance and molding them to the illiberal agenda.

It is true that a mere 30 years since the collapse of the Soviet Union is not enough to have built a truly liberal democratic state. Generations born and raised in the Soviet period or in the troubled 1990s still dominate the political landscape. This means that a different worldview still prevails. It favors democratic development but is also violently nationalistic in opposing liberal state-building.

Georgia’s growing illiberalism has to be understood in the context of the Russian gravitational pull. Blaming all the internal problems of Russia’s neighbors has become mainstream thinking among opposition politicians, NGOs, and sometimes even government figures. Exaggeration is commonplace, but when looking at the illiberal challenge from a long-term perspective, it becomes clear where Russia has succeeded in its illiberal goals. It is determined to stop Georgia from joining NATO and the EU. Partly as a result, the process drags on and this causes friction across society. Belief in the ultimate success of the liberal agenda is meanwhile undermined and alternatives are sought. Hybrid illiberal governments are the most plausible development. The next stage could well be a total abandonment of Euro-Atlantic aspirations.

Indeed what seemed irrevocable now seems probable, if not real. Pushback against Georgia’s Euro-Atlantic choice is growing stronger. Protesters in front of the parliament in central Tbilisi violently brought tore the EU flag. Twice.

The message of anti-liberal groups has also been evolving. There has been significant growth in their messaging. The anti-pride sentiment is evolving into a wider resistance to the Western way of life and Georgia’s Western foreign policy path, perhaps because it is easily attacked and misrepresented.

To deal with this, Western support is important, but much depends on Georgian governments and the population at large. A pushback against radicalism and anti-liberalism should come in the guise of time and resources for the development of stronger and currently faltering institutions. Urgency in addressing these problems has never been higher — internal and foreign challenges converge and present a fundamental challenge to what Georgia has been pursuing since the days of Eduard Shevardnadze – the Western path to development.

Author’s note: first published at cepa

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