Dreaming of South Caucasian Economic Space?
05 September, 2013
Dreaming of South Caucasian Economic Space?
During the last meeting of Georgian Vice-Premier and Economic Minister Girogi Kvirikashvili with Armenian PM Tigran Sarkisyan in Yerevan on August 30, 2013, the latter suggested the creation of a unified economic space to strengthen economic ties between the two countries.
“We should create a unified territory, where our nations will be able to cooperate in different fields that will lay ground to stronger economic ties”, Sarkisyan declared. Georgian Vice-PM stressed the importance of mutual Georgian-Armenian
investment project and cooperation in different economic fields such as transportation, agriculture, tourism and customs. He also underscored the necessity of restoration of air traffic facilities between Tbilisi and Yerevan. The implementation of mutual investment projects and partnership between economies were also acclaimed by Georgian economic analysts; however, the idea of forming a common territory split opinions. Demur Giorkhelidze, an economic analyst, welcomes the initiation of common economic space, as he finds it to be a step forward to gradually create common South Caucasus economic space, which will serve as a indomitable attraction for foreign investors, who are more interested in substantial markets than any of three countries of the region [Georgia, Armenia and Azerbaijan] representing pretty small markets if taken separately. The “frozen territorial conflict” between Armenia and Azerbaijan does not seem to be an insuperable barrier to him due to the fact that he believes and history also suggests that economic interests may eventually get political rivals closer to each other.
“It is high time to remove customs and trade barriers among the three South Caucasian countries,”Giorkhelidze said in an interview to Georgian Journal. “The political elite of Armenia and Azerbaijan seem unprepared to take this step for the present moment but subsequently they will definitely get ready for it. As an added bonus to the fact, that the three South Caucasus countries have peacefully co-existed through many centuries, they have also managed to understand each other extremely well and realize the importance of their links. Based on my personal experience, while attending regional meetings held outside Armenia and Azerbaijan, the representatives of both countries unanimously agreed that economic integration is of crucial importance for our region. Let’s take Germany and France as an example; as history shows, they were political rivals but later became allies within the EU space. If, in this regard, nothing changes for better we will definitely have no future.”
Ditrich Muller, co-founder of Georgian Investment Group, shares the idea of common South Caucasus economic space but questions the relevance of forming a common Georgian-Armenian territory, which may have hidden bombs. According to him, thanks to liberal reforms carried out by the former government, which made a strenuous effort to reduce corruption, abolish red tape and cut down taxes, Georgia has already created a better business environment than Armenia, where corruption is still so commonplace that it hinders entrepreneurship from being developed. Muller also doubts that the initiative may affront Azerbaijan, an important and trusted partner of Georgia in international transit projects and rated as one of the top three trade partners of Georgia, while both investment and trade turnover with Armenia are pretty low.
“I cannot comprehend how the idea of the suggested common territory can strengthen economic ties with Armenia. We should base our approach on economic or political benefits, whereas this initiation offers nothing to us. It may only upset Azerbaijan, the interests of which we should take into account under any circumstances. The united Caucasian economic space, like EU, sounds good as it involves the entire countries, including Azerbaijan; however, in order to cultivate friendly relations with Armenia, the isolation of certain parts, like common free economic zones, seems completely redundant. Armenian businessmen are already very active in Georgia because of the fact that the business environment is far better here. Who obstructs people to run business throughout the entire Georgian or Armenian territory? And what kind of game are we supposed to play on that common territory - Georgian liberal approach or Armenian unreformed system? these issues are really worth thinking about,” - Muller says.
Other Stories
Doing business in Georgia has become easier than in America
According to the Doing Business 2019 report published by the World Bank, Georgia ranked 6th among 190 countries in terms of simplicity of doing business. This was an improvement over two ranks compared to last year.
Problems that foreigners frequently face in Georgia
The importance of Georgia as a tourism hub is growing year after year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
Georgia second among the fastest growing tourist destinations in Europe
Georgia is among the fastest growing tourist destinations in Europe. The data is published by the UN World Tourism Organization.
Bitmain launches world digital mining summit in Tbilisi, Georgia
Bitmain CEO Jihan Wu and Roger Ver, CEO of Bitcoin.com Head Speaker List featuring Circle, DEX.top and Genesis Mining when Digital Mining Leaders Convene In Tbilisi on September 21-23
TBC Bank and Gazelle Finance have teamed-up to support Medical City, a leading healthcare provider in the western region of Georgia to launch the Western Regional Center Of Modern Medical Technologies.
Equivalent to buried treasure – resources that are underused in Georgia
For 2018 the IMF Commission has forecast an annual economic growth for the Georgian economy of about 5,5%.
Does the quality of Georgian wine increase and how the export affects it
If we look at the data collected about modern Georgian wine, we will find out that the Georgian wines produced between 2015-2017 are much better in terms of their quality and Oenologic features rather than the wines produced between 2009-2011.
Japan simplifies the visa requirements for Georgian citizens
Diplomatic and economic relations between Georgia and Japan are now moving to a new phase. Recently Japan has decided to simplify the visa requirements for Georgian citizens.
M&S (Marks and Spencer) and H&M collections to be produced in Georgia
Garments manufacturer MGMTEX will start production of the M&S and H&M trendy collections from this September.
The World Digital Mining Summit to be held in Georgia
The summit is scheduled to take place between 21st-23rd September in the Hualing Hotel, Tbilisi, Georgia.
Galt and Taggart - Tourism Boom Continues in Georgia
Tourism has become one of the key drivers for the Georgian economy. Galt and Taggart has recently published research about the Georgian tourism sector in the first half of 2018.
"The worst dream for Putin is that Russians want to live in Georgia"
This year, visitors to the Adjara region would notice that there is a boom in construction in and around Batumi.
Underground gas storage facility to be built in Georgia
KfW, a German government-owned development bank signed a EUR 150 million promotional loan with the state-owned Georgian Oil and Gas Corporation (GOGC) for the construction of the first underground gas storage facility in Georgia.
New gambling rules for Georgia
Georgian lawmakers are preparing a new draft law relating to online-casinos and gambling that will seek to curb gambling addiction in Georgia.
How expensive is it to visit Georgia?
The Georgian Lari (GEL) is the official currency of Georgia and is the only legal means of payment in the entire territory of Georgia.
Trade with the EU and the Commonwealth of Independent States (CIS) has grown significantly
Trade with the EU and the CIS has grown by 26% and 33.5 % respectively, says GeoStat, the Georgian National Statistics Office.
The unemployment rate decreases in Georgia
The unemployment rate decreased in Georgia by 1,9% and amounted to 12.1% in the 2nd quarter of 2018 compared with the previous quarter,
Memorandum of Understanding to be signed between Georgia and Malaysia
According to the Georgian Ambassador to Malaysia Nikoloz Apkhazava, Georgia plans to sign a Memorandum of Understanding (MoU) with Malaysia.
“Blauenstein Georgia” due to expand in Georgia
“Blauenstein Georgia” is planning to open more shops in Georgia. It is an agriculture company that sells meat products, meat and convenience food.
The amount of Direct Foreign Investment rises in Georgia
According to the information of the National Statistics Office of Georgia, the amount of direct foreign investment in Georgia has risen
It’s going to get  harder for foreigners to get residence permit in Georgia
It’s going to get harder for foreigners to get permit of residence in Georgia.
Exchange Rates
GEL Exchange Rate
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
November 2018
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30