New Economic School Georgia

Georgia held a voting for the parliament on October 26, which was an interesting event by any means. Here are some facts and analysis. The Georgian Dream party (Ivanishvili) claimed a 54% victory in the voting, getting 89 mandates out of 150 (that is not enough for constitutional changes.). The four major pro-western opposition coalitions also claimed they won the elections in total, though the official count was 40+% of their total votes.

The tax burden directly determines how many resources remain in the hands of businesses and how much goes to the state budget. However, it also has some influence on the price level. The size of the tax burden affects the speed of economic development - the more money a business has in possession, the more development and expansion opportunities it has, the more materials it buys, the more money it invests in the purchase of new equipment.

The Georgian government, ruled by an informal leader (recently branded a \"Puppet Master\" by the Financial Times), adopted the Law on Transparency of Foreign Influence. The Georgian Dream party claims that the country is facing a threat from agents of foreign influence, particularly from a \"Global War Party\" that includes local non-government and international organizations (including the New Economic School, which was founded in 2001).

Following the publication of the Sino-Georgian strategic cooperation statement, discussions on the ups and downs of this document have become a focal point in the Georgian media. This is not surprising since the issue concerns one of the largest and most ambitious states in the world, and its foreign policy moves are constantly at the center of attention.

Current global developments are prompting many nations to define their political paths and select their future strategic partners. Some have already applied to join BRICS and it expanded from 5 to 11 nations, while others are in line. The European Union, recently hesitant about its enlargement, has accelerated membership discussions with nations in the Western Balkans and Eastern Europe.

On March 9, the Georgian parliament revoked a draft of a bill on Foreign Influence Agents supported by its majority. The purpose of the bill was to oblige any media or civil society organization to register as a foreign agent if they use foreign money.

Everyone should understand the meaning of the word \"cost\". You can try avoiding expenses, but costs will still come, one day. What is happening in Georgia now is very much about neglecting the meaning of the word \"cost\" by politicians, mainly in the West. However, costs cannot disappear through wishful thinking. Current decision makers may try to hide from them, but they may return at a higher rate.

In its 2021 survey, the NESG found several misunderstandings and issues as to why would Georgian producers or importers prefer Russia to the EU. The reasons are mostly emotional and not based on factual realities (like cheaper prices in Russia or language-related problems).

Every individual earns money for living somehow. The society agreed that the government is needed and this means we should pay money for their service, and we call it taxes. We may not like paying taxes, but we understand the need for the government to exist.

Keeping you updated on the stances of CEE governments on the Russian invasion in Ukraine.