Issue no: 1056/133

facebook.com/georgiatoday

• • JUNE 12 - 14, 2018 • PUBLISHED TWICE WEEKLY PRICE: GEL 2.50

In this week’s issue...

Continued on page 2

MarketsAs of 08 Jun 2018

STOCKS Price w/w m/m BONDS Price w/w m/mBank of Georgia (BGEO LN) GBP 19.91 +1,0% 13,0% GEOROG 04/21 101.23 (YTM 6.27%) +0,0% 0,5%Georgia Capital (CGEO LN) GBP 11.12 +4,5% na GEORG 04/21 106.61 (YTM 4.37%) +0,3% +0,1%GHG (GHG LN) GBP 2.80 1,2% +5,5% GRAIL 07/22 105.29 (YTM 6.26%) +0,4% 1,7%TBC Bank Group (TBCG LN) GBP 17.04 +1,4% +1,3% BGEOLN 07/23 100.05 (YTM 5.99%) +0,1% 0,6%

COMMODITIES Price w/w m/m CURRENCIES Price w/w m/mCrude Oil, Brent (US$/bbl) 76,46 0,4% +2,2% GEL / USD 2,4525 0,8% +0,3%Gold Spot (US$/OZ) 1 298,17 +0,4% 1,3% GEL / EUR 2,8833 +0,3% 0,6%

GEL / GBP 3,2835 0,2% 0,8%INDICES Price w/w m/m GEL / CHF 2,4784 0,8% +1,5%FTSE 100 7 681,07 0,3% +1,5% GEL / RUB 0,0393 0,8% +1,6%FTSE 250 21 160,54 +0,8% +2,7% GEL / TRY 0,5478 +3,5% 2,9%DAX 12 766,55 +0,3% 1,1% GEL / AZN 1,4400 0,6% 0,4%DOW JONES 25 316,53 +2,8% +3,9% GEL / AMD 0,0051 +2,0%NASDAQ 7 645,51 +1,2% +5,2% GEL / UAH 0,0938 0,6% +0,9%MSCI EM EE 158,46 0,4% 1,0% EUR / USD 0,8497 0,9% +0,8%MSCI EM 1 135,39 +0,5% 0,6% GBP / USD 0,7461 0,4% +1,1%SP 500 2 779,03 +1,6% +4,0% CHF / USD 0,9857 0,3% 1,6%MSCI FM 2 833,38 +2,4% 1,0% RUB / USD 62,3238 +0,2% 1,4%GT Index (GEL) 1 582,68 TRY / USD 4,4732 3,8% +3,2%GT Index (USD) 1 208,13 AZN / USD 1,6941 0,0% +0,0%

Prepared for Georgia Today Business by

NEWS PAGE 2

BUSINESS PAGE 5

BUSINESS PAGE 6

BUSINESS PAGE 11

ISET PAGE 4

Georgia’s Famous Gudauri Resort to Be Extended

Sweet Little Lies – Things That Make Us “Happy”

How the Right Investment Serves as a Primer for Georgian Agricultural Development

Young Leadership Program

BY THEA MORRISON

Zaza Saralidze, father of the murdered teen Davit, and Malkhaz Machalikashvili, whose son was killed in anti-terrorist operation in December, have resumed protest rallies at the old building of Parliament on Rustaveli

Avenue on Sunday, under the campaign “Do Not Kill Me.”

The protesters demand the resignation of Minister of Internal Affairs Giorgi Gakharia and Minister of Justice Tea Tsulukiani, blaming them for an incomplete and non-thorough investigation.

Saralidze stated he does not trust the investigation, adding the rallies will continue until all the offenders are punished.

He also says that the new Chief Prosecutor must be elected by people without the participation of the Min-ister of Justice.

Protest Rallies Resume in Tbilisi, Arrests Made

Photo source: Imedi TV

Multiple Sclerosis: Major Cause of Non-Traumatic Disorders among Younger Patients

Image source: turitmo.com

FOCUS ON COFFEE

PAGE 2Starbucks is fi nally coming to Georgia!

GEORGIA TODAY JUNE 12 - 14, 20182 NEWS

Image source: Booking.com

Georgia’s Famous Gudauri Resort to Be ExtendedBY THEA MORRISON

Georgia’s famous ski resort Gudauri is set to be tripled in size, becoming a well-planned and developed destination with all neces-

sary facilities, not only for skiers but for ordinary visitors as well.

The information was released by Geor-gia’s Prime Minister Giorgi Kvirikashvili at the latest government session.

The PM underlined that the country's proper spatial development is being given top priority, especially in winter resorts, “in order to prevent the chaotic development” of some projects and to plan from the onset spaces for residen-tial areas, suffi cient parking spaces, pedestrian areas, and trade and enter-tainment spaces.

“I believe that the work invested by the government in cooperation with Cana-dian ECOSIGN enables us to ensure the prudent development of Gudauri, a most important destination,” the Prime Min-ister stated.

Kvirikashvili noted that the develop-ment of Gudauri is of utmost importance, especially after the decision of the FIS Council Congress 2018, which stated that Georgia’s ski resorts Bakuriani and Gudauri will host the FIS Freestyle Ski and Snowboard World Championships in 2023.

The PM explained that Gudauri will be divided into three territories:

1) Central Gudauri;

2) New Gudauri, the resort's main pedestrian center, with tourism infra-structure on the fi rst fl oor of each build-ing in the settlement, including ski ser-vice centers, shops, food outlets, rest areas, conference halls, and more;

3) The Kobi-Gudauri Base Area that will improve access to the Gudauri ski-ing area and will enable Stepantsminda's residents and tourists arriving from the north to use gondola lifts.

The development of the ski resort’s northern slope will be planned, as, accord-ing to the PM, the northern slopes, given the position of the sun, can hold snow much longer.

“Gudauri will be three times the cur-

rent size, but it will be a prudently planned and developed destination with all nec-essary facilities, and not only for skiers. It will also meet the current global trend of rapidly growing numbers of non-skiers visiting ski resorts,” he stated.

The 2023 World Championship in Bakuriani and Gudauri is a most impor-tant athletic event that will play a vital role in the development of Georgia’s winter sports, the promotion of a healthy lifestyle, and the development of infra-structure in line with international stand-ards. In addition, hosting the World Championship will further enhance the country’s visibility and boost tourist interest in Georgia’s alpine resorts.

BY THEA MORRISON

The turnover of the business sector in the fi rst quarter of 2018 increased by 18.6% compared to the same period of the previous year

and totaled 18 billion GEL.The information was released by the

National Statistics Offi ce of Georgia (Geostat), according to which the turn-over of small and medium enterprises has increased by 20%. Among them, the turnover of medium enterprises increased by 20.5% and turnover of small enter-prises by 19.6%.

Georgia’s Vice-Premier and Minister of Economy and Sustainable Develop-ment, Dimitry Kumsishvili, said the number of jobs in the business sector has increased by 5.3% since last year as a result of the increased turnover in this fi eld.

“Compared to the fi rst quarter of 2017, the average monthly salary this year has increased by 8%, amounting to an aver-age 1106 GEL,” the Minister stated while presenting the data.

He added that the highest contribution to growth of jobs created in the business sector comes from trade 5.1%, construc-tion 7.5%, the processing industry 3.7%, and transportation and warehousing 5.4%.

The Minister noted that turnover has increased in practically all fi elds: trade

Image source: becmaterials.com

Business Sector Turnover up by 18.6% in Q1

turnover was up by 16.7%, art, entertain-ment and leisure saw a 57% increase, and a 16.7% growth was seen in manu-facturing and 14.8% growth in construc-tion.

Georgia’s Prime Minister, Giorgi Kviri-kashvili, stated at the governmental ses-sion on Friday that the fi rst quarter of 2018 continues quite positive trends in terms of turnover, production, and employment growth in the business sec-tor.

“We are all very pleased that a signifi -cant economic growth rate has been recorded in the ongoing period of 2018. A few days ago, the economic growth indicators for April 2018 were published, showing a 6.5% growth, while the aver-age indicator of the economic growth in the fi rst four months is 5.5%,” he added.

The PM noted that Georgia sees the results of an unprecedented growth of tourist infl ow, adding the growing tour-ism trends have the greatest impact on the public.

“The State will do its best to invest greater effort in this direction. We are keeping last year's positive growth, and in the fi rst fi ve months of this year, the number of tourists is up 23.5%, which is a very important indicator. Revenues from tourism are up 28.4% in the fi rst four months,” he stated.

“It is very important for our population to have the right and realistic hope that we are on the right track, and that this path can make it possible for Georgia to defeat poverty once and for all,” Kviri-kashvili added.

This path can make it possible for Georgia to defeat poverty once and for all

Continued from page 1

Protest Rallies Resume in Tbilisi, Arrests Made

“There NGOs should should nominate a candidate that we can trust," he said at Sunday’s rally.

His comments refl ect those of numer-ous NGOS which stated in early June, “The majority of reforms declared by the government in the system of law-enforcement and the judiciary has proven to be pro-forma and these reforms have done nothing to eliminate the public’s sense of deep injustice and vulnerabil-ity,” the NGOS stated. “Recent high-profi le cases have clearly shown the problem of excessive use of authority by law-enforcement, which has not been followed by an effective investigation.”

Prime Minister Kvirikashvili responded

to the concerns at the time by stating, “I take it as my personal responsibility to get results in this case.”

This weekend, Georgian police arrested two men, former high-ranking offi cials of the Prosecutor’s Offi ce, Mirza Subeli-ani and Merab Morchadze, on charges of failure to report a crime and exertion of infl uence on a witness, respectively.

Offi cers from the Police Department of the Ministry of Internal Affairs have since detained 19 persons at the rally being held on Rustaveli Avenue.

“Eight persons were arrested under Articles 166 and 173 of the Code of Admin-istrative Offenses of Georgia, including Irakli Nadiradze, member of Tbilisi City Council, and members of the National Movement party. These persons violated

the public order, verbally insulted law enforcers and did not obey the legal requirements of the police. In addition, Nika Melia, a member of the National Movement, who was thought to have been arrested was not but was forced to leave Rustaveli Avenue in order prevent an offence,” the Chairman of Parliament Irakli Kobakhidze said at the Parliament Bureau sitting.

Zviad Kuprava was detained on Rustaveli Avenue and, alongside three others, was sentenced to 14 days administrative imprisonment.

"It is as important for the Ministry of Internal Affairs to be responsible for protecting the law as it is that freedom of expression is guaranteed,” the MIA statement read.

BY ANNA ZHVANIA

Welcome Challenge, an annual Global Forum for Hospitality and Travel Industry Inno-vations is to have

Georgia as its host country this year on 24-26 October.

Dimitry Kumsishvili, the First Deputy Prime Minister and the Minister of Economy and Sustainable Development of Georgia, along with the organizers of “Welcome Challenge,” at the announce-ment event highlighted the growing dynamics of Georgia as a tourism des-tination. Georgia was identifi ed as a host country for a reason: it is characterized as one of the most visited tourist places, with an accelerated growth in the num-ber of incoming visitors. The Global Forum will gather innovative start-ups, leading experts, large international cor-porations and fi nancial companies.

The aim of the Forum will be to give 25-30 start-ups the opportunity to par-ticipate in an innovative competition

Georgia to Host “Welcome Challenge” – Hospitality & Travel Industry Innovations Global Forum

within the tourism industry. An inter-national jury will identify the winners, who will have the chance to receive grants of up to EUR 15,000 and sign con-tract agreements with potential inves-tors. The Forum will also serve as a networking event for interested parties to meet investors and identify areas of collaboration as well as host a confer-ence to emphasize the importance of innovation, education and related sec-tors.

Ahead of that event, a BootCamp will be organized in Zugdidi and Anaklia,

where start-ups will be selected to attend the Global Forum and participate in the competition. The Global Forum will bring various benefi ts to the country’s economy, expand tourism opportunities and offer vast resources within the tour-ism industry.

Event organizers: CBC GeorgiaPartners: Georgian Government and

Creative Business CupSupporter: UNWTO. The event will be held within the scope

of Check in Georgia.

BY THEA MORRISON

American coffee company Starbucks is about to enter the Georgian market.

Shaya Turkey, the group representing a portfolio of

the world`s best known international brands in Turkey, managing their retail franchise operations in segments includ-ing Fashion, Food, Health & Beauty, will introduce the brand into Georgia.

Starbucks to Enter Georgian Market

Shaya Turkey's franchise portfolio includes Starbucks, Bath and Body Works, Le Pain Quotidien, Pinkberry, Shake Shack, The Body Shop, Victoria`s Secret and Victoria`s Secret Beauty & Acces-sories in Turkey.

Shaya Turkey operates Starbucks in Turkey and Azerbaijan, and now it is coming to Georgia.

Starbucks Corporation is an American coffee company and coffeehouse chain. Starbucks was founded in Seattle, Wash-ington in 1971. As of 2018, the company operates in 28,218 locations worldwide.

GEORGIA TODAY JUNE 12 - 14, 20184 BUSINESS

THE ISET ECONOMISTA BLOG ABOUT ECONOMICS AND THE SOUTH CAUCAUS www.iset-pi.ge/blog

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

10 Galaktion StreetTel: (995 32) 2 45 08 08

E-mail: info@peoplescafe.ge

NOTICE OF DISSOLUTIONLysoForm L.L.C. IBC No: 100619

(In Voluntary Dissolution)

NOTICE is hereby given that in accordance with Section 286 of the International Business Companies Act 2016

LysoForm L.L.C. IBC No: 100619- The date of commencement of dissolution is 16th May

2018- Ms. Maria Christodoulou, of 11 Stavrou Stylianidi St.,

Flat 2, Nicosia, CY-2024, Cyprus is the Liquidator of the Company

BY IA KATSIA, SALOME GELASHVILI

On May 17, 2017, the Geor-gian government adopted amendments to the Tobacco Control Law with 85 votes in favor, and only

one against. This highly debated new regulation, which bans smoking in pub-lic places, was initiated by Parliament Member Ms. Guguli Maghradze who just recently discussed the obesity prob-lem in Georgia, which is caused partly by excess sugar consumption. The Geor-gian public, which is familiar with state-ments turning into law, considered Maghradze’s statement as a prelude to enacting a sugar tax in Georgia. During an informal interview, Maghradze stated that for now the government is not plan-ning to impose any tax on sugar, however, many people are still skeptical about this issue.

So, is there a need to impose a sugar tax in Georgia?

WHAT IS OBESITY?Obesity “is a medical condition in which excess body fat has accumulated to the

extent that it may have an adverse effect on health.” (World Health Organization, WHO) According to the Body Mass Index (BMI), the most common measure of weight, a person is obese if BMI is equal to or higher than 30.

WHY CARE ABOUT SUGAR CONSUMPTION AT ALL?!Concerns about high sugar consumption

Sweet Little Lies – Things That Make Us “Happy”

are increasing signifi cantly all over the world, because of its high correlation with poor dietary quality and obesity. Obesity is an issue both for developed and developing countries; more than half of the EU population have weight problems. According to the American Heart Association, recommended sugar intake per day is 6 teaspoons for women

and 9 teaspoons for men. However, the average American consumes 19.5 tea-spoons every day, which is more than twice the norm.

According to WHO, poor diet and physical inactivity – the major risk factors for obesity - are at the same time the most common reasons for non-communicable diseases responsible for 68% of the world’s 56 million deaths in 2012. Generally, obe-

BMI Classifi cation

Less than 18.5 Underweight

18.5 - 24.9 Normal weight

25-29.9 Overweight

30 - 34.9 Class I obese

35 - 39.9 Class II obese

40 upwards Class III obese

BMI classifi cation

Note: you can calculate you BMI here: BMICalculator

sity rates are higher among the lowest socio-economic groups, mostly women and ethnic minorities. (WHO, 2014)

As to Georgia, according to the National Center for Disease Control and Public Health of Georgia, in 2014, 56% of females and 54% of males in Georgia were over-weight (BMI of 25 or more), represent-ing a slight increase since 2010 for both sexes. The prevalence of obesity (BMI of 30 or more) also increased between 2010 and 2014. More females (24%) were obese than males (18%) in 2014.

THE PROS AND CONS OF SUGAR TAXA sugar tax increases the price of sugary products, leading to a reduction in demand. Many countries have already adopted this regulation (some tax sug-ary drinks only, while others tax all types of sugary products), and some have already seen results. For example, in Mexico, introduction of 10% tax on sug-ary drinks in 2014 led to a 12 % reduction in the consumption of sugary drinks over the fi rst year, while in Hungary, a sugar tax led to a 40 % decrease in the amount of sugar in junk food.

Since excess sugar consumption causes or in some cases aggravates not only obesity problems, but also diabetes, tooth decay, liver and kidney damage‚ heart

disease, and even some cancers, a sugar tax is going to have a positive effect on consumers’ health. Improving the health conditions of the population leads to lower government spending on health, higher productivity and better quality of life, which are additional arguments for imposing a sugar tax. Imposing a sugar tax will also lead to increased tax revenues for the government, which the state can use to fund public health ini-tiatives, among other things.

While there are obvious benefi ts from reducing the consumption of sugary products, it should be noted that busi-nesses engaged in the production, import and distribution of those products might see a reduction in sales and profi ts in the short-run. This might cause job losses, as well. Another argument against a sugar tax is that sugar is not the only source of calories and taxing it might be unfair. Some opponents of sugar taxes also claim that it will negatively affect marginalized, low-income groups, which consume more sugary products than high-income groups. In addition to this, an increase in the price of sugary prod-ucts will lead to increased demand for substitute products and thus higher prices for substitutes.

While sugar tax opponents’ arguments make sense, it is important to consider

that businesses can avoid paying taxes by reducing the amount of sugar in their products and making them healthier. Georgian consumers, who are well known for their unhealthy diets, obviously would need some time to adjust their tastes, but ultimately that should happen once their awareness about sugar’s harmful effects increases.

THE WAY FORWARDGiven all the points above, while a sugar tax is one very good way to reduce sugar consumption, it is not the only way. There are other policies which can be imple-mented by the government that will also help change consumers’ habits.

Consumers should be well-informed about the health risks of sugary products and be able to make informed decisions. The government and civil society play an important role in increasing consum-ers’ awareness about the health impacts of sugary products. This can be done through public health campaigns aiming at reducing the consumption of sugary products, and restrictions on the use of sugar in schools and preschools. Notably, the use of sugar and salt has been recently restricted in Georgia’s public kindergar-tens, and private schools are closely monitored for this matter as well.

Proper packaging of sugary products and effective monitoring of packaging are vital instruments in the process of reducing sugar consumption. Consum-ers should obviously have freedom of choice and consume whatever they are willing to and afford to consume, but “front-of-package warning labeling” allows them to make informed decisions. Apart from proper labeling, there are could be regulations imposed on all media where children represent over 25% of the audience. Although Georgia does not have this type of regulation, some countries do.

While behavioral changes are the most challenging and take the longest to make, they pay off the most in the future since, as the Latin phrase states “there is a healthy mind in a healthy body." Hope-fully, Georgian consumers will keep that in mind and change their habits in the nearest future.

GEORGIA TODAY JUNE 12 - 14, 2018 5BUSINESS

Photo: StrategEast, Facebook

Young Leadership ProgramBY SAMANTHA GUTHRIE

From June 3-10, nine rising gov-ernment leaders from former Soviet countries visited the United States as part of the fi rst Young Leadership Pro-

gram. The program was organized and sponsored by the Open World Leader-ship Center, Eurasia Foundation, and StrategEast. The program’s goal was to help promote closer ties between the West and PSNR (StrategEast founder Anatoly Motkin’s acronym, meaning “post-Soviet non-Russian”) countries by giving young PSNR deputy ministers the chance to see inside governmental mechanisms in the United States, deep-ening their exposure to the rule of law, free markets, and democracy.

During the program, participants met with Congressman Joe Barton, Ambas-sador John O’Keefe, Ambassador Beth Jones, Vice Chairman of the Newseum Shelby Coffey, and other government offi cials, and representatives from civil society and the private sector. The par-ticipants also spent several days in home-stays with average American families – half the group in Philadelphia, PA and the other half in Richmond, VA. The program began with viewing one of the original Declaration of Independence copies at the National Archives in Wash-ington, D.C., then went on to explore how a country operates on a foundation of the principals of the Declaration.

The participants are all deputy minis-ters, under the age of 40, who speak good English, and work in sectors which infl u-ence their countries’ economies. From Georgia, Deputy Minister of Environ-

mental Protection and Agriculture Nino Tandilashvili participated in the program. Throughout the week of meetings and trainings, Tandilashvili said she observed and absorbed a lot to take back to Geor-gia. She was particularly impressed by how US government offi cials seemed to take pride in their work and felt a sense of importance in representing their vot-ers that she feels is missing in Georgia. She described the government workers they interacted with on the program as “serious, responsible, and honest,” and working for the betterment of the peo-ple, and would like to see Georgian gov-ernment employees expressing those

characteristics more frequently. Tandi-lashvili says that Georgian public offi cials lack a service mentality, and the country generally lacks the culture of public ser-vice seen in the US.

A meeting with Philadelphia’s Inspec-tor General, Amy Kurland, was particu-larly interesting for many program participants, as all of their countries have struggled with corruption, to var-ying degrees, since independence. With such a small group, the dynamic between participants was casual, intimate, and sociable. There were many shared expe-riences and challenges, but also room to share best practices and problem-

solving techniques. The program is envisioned as, in part, a networking opportunity and a bridge builder between PSNR countries and across the Atlantic. Representatives from government, busi-ness and civil society have all expressed desire and openness to keep lines of communication open with participants for advice and discussion, and to work on potential collaborative projects. Motkin is optimistic that the program will facilitate opportunities for par-ticipants and their local colleagues to inform US leaders about the events in their countries and share information. Tandilashvili says it was encouraging

to meet the other participants and to see how young people can become high level decision makers.

When asked what Georgia can learn from the US, Tandilashvili said that “we [Georgia] share the principles of the US and Europe” – both are models for Geor-gia’s development. As she returns to Tbilisi, she plans to be more involved with promoting freedom of the press and meeting with activists and civil soci-ety representatives. She believes that government offi cials should more actively communicate with the people and sees sharing information as a critical compo-nent of an informed electorate and democracy. “This program should con-tinue to give chances to young decision makers to see how civil society works and how institutions work in the United States,” says Tandilashvili. She advocates for more unoffi cial, non-working visits and exchanges, praising the multi-sec-toral, deep dive model that the Young Leadership Program provided. Tandi-lashvili’s most signifi cant take away from the program was an understanding of and respect for American values. “Every time I think about the United States, I think about three words,” she says, “We the people. Despite the challenges, I know the US will stay strong because of this.”

StrategEast hopes to continue the pro-gram, perhaps making it an annual event, or having a series of small events through-out the year. As the program came to a close, participants were left with three questions to ponder: what are the main challenges of the PSNR space? How can PSNR countries be helpful to each other in overcoming challenges? And How can US institutions be helpful in overcoming challenges?

GEORGIA TODAY JUNE 12 - 14, 20186 BUSINESS

BY ANNA ZHVANIA

Despite urbanization dimin-ishing the number of work-ers in agriculture due to the migration of the regional population into Georgia’s

cities, the growth of agricultural perfor-mance and increased productivity empha-sizes the signifi cance of the sector. Agri-culture plays a vital role in Georgia’s economy and is a key element of a rapid development strategy. The respective sector has fostered local production, lead-ing to investment opportunities, and as the country strives to create a stable busi-ness environment and increase employ-ment opportunities, it is capturing the interest of new investors.

To aid the process, Georgian-Swiss company “Blauenstein Georgia” posi-tively evaluated the promising business

How the Right Investment Serves as a Primer for Georgian Agricultural Development

environment of the country. Max Blau-enstein, the founder of Blauenstein, recently announced during a meeting with Georgia’s Prime Minister Giorgi Kvirikashvili, that due to the favorable economic situation, he plans to further invest in the country.

Max Blauenstein indicated that the Georgian government’s initiative to stimulate local production and further aid the development of the agriculture sector serves as a primary method to attract and increase investment oppor-tunities in Georgia. Currently, the total investment of “Blauenstein Georgia” amounts to GEL 27 million. According to the Prime Minister, such projects are of high importance, especially in the mountainous regions of Georgia. He noted that the business model set to be implemented in Racha could success-fully apply to other regions, increasing employment opportunities and aiding the overall economic situation.

BY ANNA ZHVANIA

On June 8, ICC Georgia held its Annual General Assem-bly in Betsy’s Hotel, Tbilisi, the aim of which was to overview ICC objectives

and elect nine new Executive Board members, the Chair and two Vice Chair-persons.

Fady Asly, Chairman of ICC Georgia, welcomed guests and overviewed ICC’s activities in 2017 and 2018, highlighting the major challenges and achievements. Nona Mamulashvili, 2nd Vice Chair-woman and Treasurer, continued the Assembly and reviewed the budget for 2017-2018. 11 candidates had the oppor-tunity to present themselves to the guests and shortly afterwards, the attendees were asked to fi ll in a bulletin and vote for nine new Board Members. The jury counted the votes and elected the win-ners: Aleksi Aleksishvili (PMCG), Fady

The International Chamber of Commerce Annual General Assembly

Asly (Agritechnics Holding), Zaza Bib-ilashvili (BGI Legal), Nikoloz Khundzi-kashvili (Efes Brewery, JSC Lomisi), Mehmet Kocak (Gurtiad), Nona Mamu-lashvili (Phillip Morris International), Michael Sounders (Free University), Kakha Sharabidze (BLB) and Maia Sid-amonidze (The Terrace) will hold their respective positions within ICC Georgia.

The second offi cer election announced Fady Asly as Chairperson, Nikoloz Khun-dzikashvili as First Vice Chairperson and Maia Sidamonidze as Second Vice Chair-person and Treasurer.

The General Assembly held a cocktail reception after the elections where guests had the opportunity to congratulate the winners and network.

Six Czech companies produc-ing medical equipment will visit Georgia 18-21 June to hold presentations of their products for Georgian com-

panies and representatives of hospi-tals, clinics, the Ministry of Health of Georgia and the Ministry of Health

Czech Companies to Present Medical Equipment to Georgian Healthcare Providers

presentations.Batumi: 19th June, 10:30 – 12:30, Min-

istry of Health and Social Affairs of Adjara (119, Revaz Komakhidze Str.)

Tbilisi: 21st June, 15:30 – 17:30 (followed by a reception), Czech Embassy, Tbilisi, (37, Chavchavadze Ave., block VI)

For registration, call 577 79 70 92

and Social Affairs of Adjara. The presentations will take place

both in Tbilisi and Batumi. The main goal is to demonstrate high quality Czech products in the fi eld of medical equipment to their Georgian partners. The Czech Embassy in Georgia invites everyone interested to come to the

GEORGIA TODAY JUNE 12 - 14, 20188 BUSINESSBUSINESS

BY KYRA DEVDARIANI

An annual conference "European Dia-logue on Internet Governance (EuroDIG 2018)" was held on June 5-6 in Tbilisi. The EuroDIG was hosted by the Ministry of Economy and Sus-

tainable Development of Georgia in co-operation with the Telecom Operators Association and the Georgian National Communications Commission.

We asked the MoESD Head of the Telecommu-nications, Information & Modern Technologies Dept., Eka Kubusidze, to comment on the choice of the host country. “The world has come a long way since the UN Secretary-General announced the establishment of the fi rst Internet Governance Forum (IGF) for a multi-stakeholder dialogue on internet governance in 2006. Soon after, the EuroDIG started in 2008. We followed suit with a national Internet Governance Forum (GeoIGF), now in its 4th year and gaining regional recognition as stake-holders from our neighboring countries come to exchange views and experiences.”

For three days (there were some additional events on June 4, on the margins of the “proper” EuroDIG), Rooms Hotel was abuzz with delegates from dif-ferent countries, agencies, regulatory bodies and NGOs, academia and civil society.

The spirit of inclusivity and the common goal, a free and honest exchange of experiences and chal-lenges, brought together people of various back-grounds to discuss a wide range of issues, from trans-border cybercrime investigations to artifi cial intelligence, from challenges of e-commerce in Europe to regulating hate speech, from UNESCO internet universality to digitalizing Tusheti.

We sat down with the Head of Information Soci-ety of the Council of Europe, Patrick Penninckx, to fi nd out more.

AS A POST-SOVIET STATE, GEORGIA

DOESN’T HAVE A LONG RELATIONSHIP WITH THE FREE MEDIA AND THE EUROPEAN APPROACH OFFERS SOLUTIONS LIKE AWARENESS-RAISING, MEDIA LITERACY, AND CRITICAL ASSESSMENT OF CONTENT. IS GEORGIA READY FOR IT? Education is quite clearly one of the most impor-tant solutions, but at the same time, there are other stakeholders with important roles to play in tack-ling this problem. The government’s role is to regulate, to put barriers, to ensure that illegal or harmful content is removed. The Internet Service

Providers (ISPs) through which the majority of the disinformation, mal-information and misin-formation circulates, have the responsibility for the content that is transmitted and multiplied. The technical community dealing with the devices and algorithms has an important function of tak-ing into account the human rights and data pro-tection - not post-factum, but rather by design, in the process of developing the applications and products. The education system is a major stake-holder, but as yet, it is not suffi ciently equipped to deal with the digital revolution that we’re fac-ing. Civil society is not to be underestimated; its role is to warn users, to alert governments, to work with the ISPs. And then there’s the media itself, with the crucial task of debunking disinfor-mation which comes through traditional media channels. So, I wouldn’t say that we focus exclu-sively on the users that need to be educated: there are different actors that are involved, and they have to be respectful of each others’ roles.

THE COE-COMMISSIONED A REPORT ON HATE SPEECH AND MEDIA REGULATION BASED ON EXPERIENCES AND CASES IN THE BALKANS, WHICH, LIKE GEORGIA, IS POST-SOVIET, POST-CONFLICT. RECENT NARRATIVES OF INTOLERANCE IN GEORGIA ARE VERY TROUBLING. HOW DO WE COUNTER THEM?Very often, this is a form of disinformation aiming for a certain outcome, and that outcome could be a political change, an uprising of nationalists, or an ethnic cleansing. Ultimately, it’s a question of power in a given political context. It is very often used by populists, e.g the whole question of the migration crisis in most of Western Europe. As for the counter-narrative, it is extremely diffi cult to promote, fi rst, because people like the “juicy” sto-ries that create the images. Second, it’s diffi cult to track to which extent the counter-narrative actu-ally reaches people that have been affected by the original story. It’s a complex problem that is present in all of the Western European countries today, all of the former Warsaw Pact countries which are now part of the EU, where strong nationalistic leaders take the foreground, promoting the course of action that defects from fundamental human rights issues, and very often defects from the state’s existing international commitments. It’s a very worrisome development, not exclusive to Georgia at all, but rather a tendency whereby mechanisms protecting free speech are being used and abused throughout Europe.

THE REPORT NOTES CASES OF “CODED” WORDS AND EXPLICITLY INCITNG SPEECH DAILY FROM CERTAIN MEDIA OUTLETS. HOW DO YOU COMBAT THIS WHEN THERE IS NO GLOBAL DEFINITION FOR HATE SPEECH? On the level of the Council of Europe, we use the defi nition (https://www.coe.int/t/dghl/monitoring/ecri/activities/GPR/EN/Recommendation_N15/REC-15-2016-015-ENG.pdf) by the European Com-mission on Racism and Intolerance (ECRI) – it has the parameters of what is considered hate speech. The European Court of Human Rights (ECHR) is always very careful in considering the balance between freedom of expression, which is a funda-

mental right, and legitimate requests to take down information that is perceived as discriminatory, hostile, inciting violence. The ECHR always applies a very restrictive defi nition of hate speech, as it is a very thin line to walk, and we have to be careful to adhere to pluralism in opinions.

This sentiment is echoed by Eka Kubusidze: “Even seasoned democracies of Western Europe are strug-gling when it comes to fi nding the right balance between the hate speech restrictions and keeping the freedom of speech, there is no single global standard that fi ts all. We’re currently working on the strategy, having asked the Council of Europe and the European regional offi ce of ITU (Interna-tional Telecommunication Union) to share their experiences in adopting guidelines on hate speech and on establishing regulatory frameworks.”

COULD CERTAIN AUTHORITARIAN REGIMES USE THE REGULATIONS:ASKING FOR THE REMOVAL OF HATEFULCONTENT TO FURTHER THEIR GOALS?Hate speech is largely about the context, and that leaves a lot of room for interpretation. The regula-tory environment that is being developed in a very specifi c context may be used by totalitarian or monopolistic regimes, adapted to their own pur-poses. They may say, ‘see, they’re doing this restric-tion on freedom of expression in Germany, they’re doing it in the UK, why shouldn’t we be able to do the same?’ So, the states with stronger democratic traditions have to be very careful about the pos-sible impact of their legislation on other countries, how it might be used and interpreted in a com-pletely different context, leading to a negative effect on the plurality of opinions.

LATELY, THE ISSUE OF DATA PROTECTION HAS COME TO THE FORE. WHAT IS HAPPENING IN THE REGULATORY LANDSCAPE TO ADDRESS THAT? IS THE AMENDMENT TO CONVENTION 108 THE ANSWER?There’s a Safe Harbor Agreement governing the exchange of data between the USA and the Euro-pean Union. Then, the case brought forward by Austrian lawyer Max Schrems exposed defi cien-cies in the way Facebook collected and trans-ferred his personal data, and eventually led to the invalidation of the Safe Harbor framework in September 2015. The EU-US Privacy Shield took its place, basically ensuring that the data protection of EU citizens in the United States was at an appropriate level. Additionally, there is the Generic Data Protection Regulation (GDPR), which came into force two weeks ago, also on the EU level. By contrast, Convention 108 is a global treaty which goes beyond the 47 states of the Council of Europe. The pan-European nature of the modernized Convention (https://rm.coe.int/16808ade9d) will allow us to do the checks and balances of data protection legislation in all of the countries which are party to the conven-tion. It’s a crucial element that the amended ver-sion will provide the stable and predictable legal basis for data protection in the future. We’re working toward its opening for signatures glob-ally, sometime in October 2018.

But this will be for the next EuroDIG to discuss – see you in Amsterdam in 2019!

On EuroDIG 2018

GEORGIA TODAY JUNE 12 - 14, 201810 BUSINESS

BY EMIL AVDALIANI

A conference under the title “Azerbaijan-Georgia-Turkey: Global and Regional Determinants of Trilateral Coopera-tion” was held last week in Tbilisi. This was the fi fth consecutive event

on trilateralism in the South Caucasus. A number of interesting points were proposed

on the nascent deep cooperation between Turkey, Georgia and Azerbaijan. All the participants at the conference agreed that the generally unstable region drives the three countries towards working with each other. Among them is the instability caused by separatism and international terrorism. Russia also played a role in the discussion. Moscow’s drive in the South Caucasus is of primary interest to the members of the trilateral partnership as all three have extensive economic and some military coop-eration.

Turkey’s view at the conference was to point out how well customs works between Georgia and Turkey. It was also stressed that from a long-term geopolitical perspective, Turkey-Georgia-Azerbai-jan cooperation will aggravate Armenia’s position as the latter will continue missing out on Caspian-Black Sea regional projects. This will inevitably lead to the further isolation of Armenia and con-tinued dependence on Russia.

The Georgian experts were unanimous in stress-ing the need for the trilateral cooperation needs to be developed, claiming it falls short of being a fully-fl edged alliance. They noted that the most viable way to move in that direction is to establish a trilateral council for strategic cooperation.

DURABILITY OF THE TRILATERALISMOver the past several years, since the trilateral cooperation was fi rst introduced in May 2012 in

Calls to Raise the Status of the Trilateral Partnership

Batumi, engagement between the three countries has increased. The trilateral partnership is alto-gether noteworthy as is consists of NATO member and EU-hopeful Turkey, EU/NATO-oriented Geor-gia, and Azerbaijan, which up until now has avoided joining any large economic or military alliances.

However, despite the three countries’ evidently divergent foreign policy paths, the basis for trilat-eral cooperation has only increased. Every country of the three needs the others. Turkey wants a more stable Georgia with deeper economic and energy relations, while Azerbaijan, in the light of uncer-tainties regarding Nagorno Karabakh, needs Tur-key’s backing. Georgia, in between, under pressure from Russia and dependent on transit, in turn needs both Turkey and Azerbaijan. Moreover, the two countries are Tbilisi’s biggest trade partners and investment sources.

The trilateral cooperation between Turkey, Geor-gia and Azerbaijan seems to be based on mutual interests and geopolitical challenges. The countries are less concerned with different religions, foreign policy vectors, etc. All three see how interdepend-ent they are and there are clear imperatives (inter-nal problems, foreign pressure) to increase the cooperation within the format.

From a global perspective, the trilateral coopera-tion helps to link two important regions: the Black and Caspian basins. To make the argument clearer, the two regions were connected before, but this was never possible to do without Russian consent. The Nobel brothers in the late 19th century managed to export Baku oil through Georgia’s Black Sea ports and their geopolitical view of the South Caucasus could be regarded as a herald to what Turkey-Geor-gia-Azerbaijan are witnessing nowadays – recon-necting the Caspian with the Black Sea.

Geography and common geopolitical challenges drive the three countries together and these imper-atives make the trilateral partnership a long-lasting one.

The Georgian Finance Minister Mamuka Bakhtadze believes blockchain tech-nology could help Georgia in reducing administrative costs and increasing citizen’s access to public services.

Speaking at the Constituency Meeting organized by the International Monetary Fund and the World Bank in Croatia, Mamuka Bakhtadze presented his views on existing possibilities and challenges with regards to fi nancial technologies.

"Georgia was one of the fi rst countries to intro-duce Blockchain in the public sector, but I think we could be even more ambitious in this direction,” Mamuka Bakhtadze said.

Reduction In Administration Costs Using Blockchain

The IMF/World Bank annual Constituency Meet-ing aimed to discuss the current monetary, fi nancial and development policy issues around the par-ticipant countries. It is also attended by the Presi-dent of the National Bank of Georgia, Koba Gven-etadze.

The Constituency Meeting is held annually to discuss different topics infl uencing fi nancial sec-tors globally and is attended by fi nance ministers and central bankers from 15 countries including Georgia, Bulgaria, Israel, Romania, Ukraine, Bel-gium, Luxembourg, Armenia, Bosnia and Herze-govina, Croatia, Kippurs, Macedonia, Moldova, Montenegro and the Netherlands.

GEORGIA TODAY JUNE 12 - 14, 2018 11

GEORGIA TODAY

PUBLISHER & GM George Sharashidze

COMMERCIAL DEPARTMENT Commercial Director: Iva MerabishviliMarketing Manager: Anuka Poladishvili

EDITORIAL DEPARTMENT: Editor-In-Chief: Katie Ruth Davies

Journalists: Tony Hanmer, Zaza Jgarkava, Maka Bibilashvili, Dimitri Dolaberidze, Maka Lomadze, Joseph Larsen, Vazha Tavberidze, Nugzar B. Ruhadze,Nino Gugunishvili, Thea Morrison

Photographer: Irakli Dolidze

Website Manager/Editor: Tamzin Whitewood

Layout: Misha Mchedlishvili

Webmaster: Sergey Gevenov

Circulation Managers: David Kerdikashvili, David Djandjgava

ADDRESS 1 Melikishvili Str. Tbilisi, 0179, Georgia

Tel.: +995 32 229 59 19E: info@georgiatoday.ge F: GeorgiaToday

ADVERTISING & SUBSCRIPTION+995 577 14 14 87E-mail: marketing@georgiatoday.ge

Reproducing material, photos and advertisements without prior editorial permission is strictly forbidden. The author is responsible for all material. Rights of authors are preserved. The newspaper is registered in Mtatsminda district court.

Reg. # 06/4-309

BUSINESS

BY SHAWN WAYNE

The EFTA and Georgia jointly held a trade promotion seminar on 7 June in Tbilisi, organized in cooperation with the Georgian Swiss

Business Association (GSBA) and the Embassy of Switzerland in Georgia. The EFTA – Georgia Free Trade Agreement (FTA) entered into force for Georgia, Iceland and Norway on 1 September 2017 and for Switzerland and Liechtenstein on 1 May 2018.

There is great interest in the new agree-ment and the seminar was well attended, with over 160 participants from private companies and government authorities.

The seminar brought together experts from the EFTA countries Switzerland, Norway, Iceland, Lichtenstein, and rep-resentatives of Georgia´s private and public sectors, to focus on the opportuni-ties offered under the EFTA-Georgia Free Trade Agreement.

"We have facilitated the organization of such a seminar with the participation of EFTA experts to help the private and public sectors of Georgia to better under-stand the terms and conditions of the Free Trade Agreement signed with Swit-zerland, Liechtenstein, Iceland and Nor-way," said Alvaro Borghi, Deputy Head of the Mission of the Embassy of Swit-zerland. "The Agreement has improved

EFTA Georgia: Trade Promotion Seminarthe framework conditions and now it is time for the private sector to take this opportunity and benefi t from it."

The Seminar included a panel discus-sion where several Georgian companies with fi rst-hand experience of trade with Switzerland shared their practical knowl-edge with the attendees.

EFTA speakers and experts presented the technical and practical aspects of accessing the EFTA markets, with a focus on the opportunities created by the Free Trade Agreement (FTA) for Georgian producers and exporters. Topics covered were customs issues such as rules of ori-gin, proofs of origin and the verifi cation procedure, as well as issues on sanitary and phytosanitary requirements and tech-nical standards. Furthermore, experts explained to the Georgian participants how trade in agricultural products is addressed in the FTA. Presentations were also made on how to export to EFTA States and what producers should keep in mind when exploring export opportunities.

“It takes some time to enter these mar-kets, but when you are in these markets and deliver good products, then you have a real chance at economic growth. It is diffi cult to compete for such a small nation like Georgia, but when you diversify with niche markets, there is a real chance of success,” said EFTA expert Roger Hafner.

With a combined population of around 13 million, and a combined GDP of USD 1.2 trillion, the EFTA States are the world’s 9th largest merchandise trader and the

5th largest trader in commercial services, as well as being signifi cant actors in the area of foreign direct investment.

Merchandise trade between the EFTA States and Georgia has grown substan-tially over the last decade, from $36 mil-

lion in 2008 to $133 million in 2017, thanks in large part to increased EFTA imports from the Georgian gold mining industry and increased exports of pharmaceuticals and seafood. In 2017, EFTA’s exports to Georgia amounted to $60 million and

On May 30, the International Day for Multiple Sclerosis is celebrated. This year, Georgia joined the celebra-tion. The purpose of the

campaign being to raise public aware-ness of the disease and support patients suffering from it.

Multiple sclerosis is a chronic, progres-sive neurological disease and about 2.3 million people worldwide suffer from the disease. The fi rst symptoms are revealed among 20-40-year-olds, with multiple sclerosis among younger patients seen as the main cause for non-traumatic disabilities. According to unoffi cial sta-tistics, approximately 1,100 patients suf-fer with multiple sclerosis in Georgia.

Marina Janelidze, Professor of Clinical Neurology Department at Tbilisi State Medical University, spoke to us about the symptoms, challenges and problems regarding treatment.

“Multiple sclerosis is a chronic pro-gressive disease of the central nervous system, characterized by immune infl am-mation, which includes brain and spinal cord white matter,” she tells us. “The disease is characterized by different clinical forms and symptoms. In the nervous system, the nervous fi brous membrane myelin, becomes damaged causing infl ammatory demyelination which destroys the brain nerve cells. The symptoms can be very diverse. The disease may begin with loss of feeling, pins and needles in the upper and lower limbs, loss of vision or balance, weak-ness and tension in the limbs and dis-rupted coordination. At the initial stage,

Multiple Sclerosis: Major Cause of Non-Traumatic Disorders among Younger Patients

these symptoms are characterized by a disruptive nature but regress after some time. Such an attack may be observed two or three times a year. In rare cases, multiple sclerosis can be characterized by chronic progressive symptoms. Pathological, overwhelming fatigue is

very characteristic to multiple sclerosis. Over time, frequent attacks are accom-panied by the development of disabili-ties. Infl ammatory demyelination and neuron death can occur even when the patient does not express clinical exac-erbation.”

AT WHAT AGE DOES THE DISEASE DEVELOP AND HOW FEASIBLE IS IT TO MANAGE?The disease occurs among 20-40-year-olds and is seen 2-3 times more often in women. In the last 20 years, countries around the world have been fi ghting the

disease. There are more medicines that help stop the progression of the disease. “Immunity modifi er” drugs are a recent development to treat the disease, prevent-ing recurrence of attacks and dramatically reducing development of the disease.

WHAT WOULD YOU ADVISE PEOPLE SUFFERING FROM MULTIPLE SCLEROSIS? WHAT TYPE OF LIFESTYLE IS RECOMMENDED?Sunbathing, saunas and other heat treat-ments are not recommended for people suffering from multiple sclerosis, as the heat causes an exacerbation of the symp-toms. I recommend avoiding sun in sum-mer and drinking as much water as pos-sible. Moreover, seasonal infections should be avoided because it can provoke an attack. The main objective of treating multiple sclerosis is to reduce the inci-dence of the disease at an early stage and prevent the development of disabilities.

HOW AFFORDABLE IS THE TREATMENT?In Georgia, patients suffering from multiple sclerosis cannot receive adequate treatment as it is very expensive. Around 1000 GEL worth of medicine is needed monthly and funding is not provided by the state or insurance companies, as it commonly is internationally. It is crucial to treat this dis-ease as of high importance since it affects hardworking youth and women at maternity age. A State program is needed to treat multiple sclerosis in order for patients to receive high-quality treatment based on modern medical developments.

exports from Georgia to the EFTA States reached $73 million. EFTA’s key exports to Georgia were pharmaceuticals, fi sh and watches, while EFTA’s imports were dominated by gold, followed by apparel and hazelnuts.