From the ISET Economist news (http://www.iset.ge/news/?p=3871)
By Eric Livny
Democracy and Freedom Watch reported October 9, that “Georgia’s controversial new immigration law may be changed”. The law, writes DFW, “has caused a wave of confusion and irritation in the country’s expat community. Prime Minister Irakli Gharibashvili … told journalists that if any defects become apparent after the enactment of the new law, ‘we’ll surely correct it.’”
Just a month earlier, confusion, irritation and public outrage were caused by another piece of Georgian legislation – a law greatly limiting the sales of non-prescription drugs (see Florian Biermann’s post). The outrage was caused by the fact that many of the drugs affected by the new law, e.g. plain painkillers, were in extremely wide use. As a result, less than two weeks after coming into force on September 11, the law was amended by the health minister, Davit Sergeenko, allowing 772 medicines to be sold over the counter, without a prescription.
One could perhaps say, as the Germans do, ende gut, alles gut. But, alles is nicht gut. The fact that such REALLY BIG MISTAKES are allowed to occur in the first place suggests that something is deeply flawed in the Georgian policymaking machine. One obvious concern is the lack of due “public policy” process. Indeed, there was nothing particularly urgent about either piece of legislation; both could have benefited from a proper technical review, “stakeholder consultations” and a public debate.
Second, and very importantly, these grand failures suggest that Georgian lawmakers lack a proper understanding as to the role of regulation in an economy, and how much of it a country like Georgia needs (or can afford).
THE BENEFITS OF PROCRASTINATION AND DEBATE
Any discussion of regulations can easily get politicized, sparking seemingly futile and lengthy political exchanges. Left-wing intellectuals would argue that regulations are there to address market failures (such as drug addiction and overconsumption of antibiotics) or protect the weak and vulnerable (e.g. by securing their jobs and providing income support). The libertarians among us would argue that the market can correct itself, and that, in any case, state paternalism is not a solution to any problem. Rather, it creates unnecessary red tape and leads to unintended consequences such as laziness, corruption, illicit economic activities (“black market”) and smuggling. State failures, according to the enlightened libertarian view, are as much of a problem as market failures.
Such a clash of ideas is quite legitimate, and – if conducted in a civil and constructive manner – should be welcome in any community and polity. For one thing, it would provide legislators with a better understanding of the “problem” they are trying to solve (if there is a problem), such as:
the incidence of antibiotic resistance among Georgians;
immigrants competing with (or creating jobs for) low-skilled Georgian workers;
the extent of land grabbing (as well as investment and job creation) by Punjabi farmers.
Ultimately, whether liberal immigration regime (or free access to medications) is to be recognized as a “problem” is about politics rather than science. Still, having some evidence to consider before rushing with regulatory “solutions” would be a good step forward. It may well be the case that, while generating “killer” headlines, a “problem” is ridiculously small in magnitude or does not even exist.
Secondly, when faced with the need to publicly defend their proposals, proponents of regulations would be forced to analyze alternative solutions while taking into account the cost factor, effectiveness in terms of actually solving the problem at hand, related corruption risks, and other types of collateral damage.
DON’T BITE OFF MORE THAN YOU CAN CHEW!
But perhaps the most ideology-free criterion of evaluating the feasibility of regulations is whether a country has the requisite human capacities and skills. Even a relatively simple regulation, such as traffic lights, may be counterproductive if not properly planned and executed. First, there is the basic question of how to regulate a given intersection (traffic lights are effective only when traffic intensity exceeds a certain threshold level, which is almost never reached at night). Second, traffic lights have to be properly timed to maximize intersection capacity and minimize delays). Poorly planned traffic lights – hello, Tbilisi! – are not only a drag on traffic but also a safety hazard.
What is true about traffic, is equally true for extremely complex regulations such as anti-trust, labor, and food safety, which Georgia has subscribed to as part of the Association Agreement with the EU. For instance, it will take years – maybe even generations – to build the necessary professional capacities within the Georgian parliament and judiciary, the competition watchdog, the economics, legal and management professions in order to implement Swedish-style anti-trust law in the Georgian context. Thankfully, for now Georgia is paying lip service to some its EU-related commitments (e.g. by creating a competition agency and copy-pasting anti-trust legislation without caring to enforce it).
The botched attempts to rewrite immigration and pharmaceuticals laws suggest that professional skills are in extremely scarce supply throughout Georgia’s bureaucracy. After all, the Georgian state is one of the youngest in the world; Georgia’s educated urban elite is a tiny sliver of the population; and even this sliver has been impoverished by many years of brain drain and outmigration. In this situation, the Georgian state should not attempt to bite off more than it can chew. It should avoid complex regulations, even when these are theoretically desirable or required by its international partners. It should certainly avoid thoughtlessly copy-pasting regulations that have been designed for other times and other places.
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A short story by Leo Tolstoy titled “How much land does a man need” describes the fate of a land-hungry Russian peasant, Pakhom, who is promised as much land as he can walk around from sunrise till sunset. One condition is attached: he has to make a full circle and return to the point origin by the end of the day. To maximize his future land holdings, Pakhom sets on a rather ambitious circular route, and is too late to realize that he cannot make it back on time. He runs as fast as he can and, exhausted from the effort, drops dead at the point of origin. His servant buries him in a grave only two meters long, thus ironically answering the question posed in the title.
The 45th Apimondia Congress 2017, the most significant event in beekeeping worldwide, will take place from 29th of September to 4th of October, in Istanbul, Turkey. For the first time in Apimondia’s hundred years of history, Georgia will be at this world forum, represented by the Ajarian Beekeeping Business Association (ABBA), exhibiting the different types of honey of its members and promoting Georgian honey and beekeeping.
It now has become a tradition of Batumi’s Summer to hold the sweetest festival of the year. The annual Honey Festival was held for the third time on August 12th on Batumi Boulevard. Up to 40 beekeepers from across Georgia who once again presented their honey and by products for the festival visitors. Honey themed entertainment activities for children, including face-painting, games; live music from folk ensembles and rock band were laid on, keeping the celebration spirit all day.
“I’m participating in the festival for the third time, as it helped me to get income and find new clients for honey. I think it is very important event in promotion of the beekeeping sector in Ajara, which is one of the leading honey producer regions” – Revaz Katamadze, the beekeeper from Kobuleti Municipality.
On 18th of July, six Women’s Rooms (WRs) of Ajara region have expanded their linkages by signing a Memorandum of Understanding (MOU) with the Ministry of Health and Social Affairs of Ajara Autonomous Republic. The Ministry will use the Women’s Rooms to reach the rural population though disseminating information and organizing meeting on the health-care programs implemented by the Ministry via WRs.
Shuakhevi municipality will have a Rehabilitation Center for the People with Disabilities soon to serve people with the special needs living in Shuakhevi, Khulo and Keda municipalities. The Government of Ajara Autonomous Republic has recently supported and financed the initiative with 196 000 Gel for its construction works.
4 months ago the municipality displayed the idea, which has been floating for years, on EEG Event for fundraising. The Deputy Gamgebeli of Shuakhevi municipality, Rusudan Shavadze, trained on the project writing, transferred the idea to the real project and the municipality was able to start attracting the funds for the implementation. After the EEG, the Association For Each Otherconducted the survey on the people with disabilities in the municipalities (Khulo, Shuakhevi, Keda) with the involvement of the local people; the Adjaristskali Georgia LLC expressed interest to make the contribution to the project; other organizations, like USAID and Embassy of France also are ready to contribute with providing training for inclusive education specialists, who will teach in the center. The contribution from each side is under discussion and will be known within month.
On 7th of July, a Memorandum of Understanding (MOU) was signed between the Women’s Rooms and the Gender Equality Council of Supreme Council of Ajara Autonomous Republic. According to the MOU, the Council will work with municipalities through the WRs to raise public awareness of gender and increase women’s participation in the decision-making processes. The Gamgebelis and other municipality representatives attended the ceremony and supported the idea.
“The Women’s Rooms have become one of the main powers in ensuring gender equality in the municipalities. The MOU aims to continue and strengthen our cooperation with the WRs and fulfill the mission of increasing women’s participation in the public sector”- Nino Chkhetia, the Chairwoman of the Gender Equality Council.
On 16th of June, the premiere of Jara was held in Batumi for the local governmental and non-governmental sector, funded and organized by the Ministry of Education, Culture and Sport of Ajara Autonomous Republic. The decision-makers of the region attended the screening: the Chairman of the Ajara Autonomous Republic, the local Ministers of Agriculture, Education and Health; the Mayor of Batumi, the representatives of Department of Tourism and Resorts of Ajara, municipalities and international organizations.
The film was received with great interest and applauses. Two main actors of the movie, who are also local residents and beekeepers themselves, were gifted with the modern honey extractor by the Minister of Agriculture.
