The level of disapproval of the Japanese government led by Prime Minister Shigeru Ishiba has surpassed 50%, Azernews reports.
Day: December 23, 2024
At @caspiancenter we’ve put together a comprehensive year-end report on the countries of the #SouthCaucasus and #CentralAsia. We break down the report by country, providing summaries of key points & detailed chronological reporting on the region.https://t.co/Eo1COOrnFh
— Nicholas Castillo (@Nick_Castillo_) December 23, 2024
Georgian Dream PM Irakli Kobakhidze met with big business leaders, including signatories of the Free Business Platform, to discuss the country’s political crisis and explore potential solutions. The meeting, which lasted four hours, highlighted differences of opinion within the business community over the assessment of the current situation. Comments by Levan Davitashvili, Minister of Economy of Georgia, following the meeting suggest that the meeting was called by the government to calm the business community and assuage its concerns amid political tensions and Georgia’s growing international isolation.
The Free Business Platform, established on December 15, has garnered support from over 2,200 companies demanding new elections. The group argues that the country’s U-turn from its pro-EU trajectory poses risks to the business sector and the broader economy. However, opinions among business leaders remain split.
We have collected some comments of the business representatives made before and after the meetings.
Comments Made Before the Meeting
Noshrevan Namoradze, the founder of VR Holding, praised the stability of the last decade and drew a comparison with the situation in Ukraine. He asked the TV Pirveli journalist who asked for a comment, whether he thought the new elections would diffuse the tensions, whether she wanted the same situation in Georgia as in Ukraine, saying that “she wouldn’t be able to achieve it here”. He also asked her if she remembered the country as it was before 2012, saying that after the GD government came to power “the country has rested for the last 12 years”.
Tea Zakaradze, General Manager of TAV Georgia, emphasized the need for stability but remained open to elections as a solution. “Our business—aviation—needs peace and stability. If new elections are the solution, this step should be taken. If the situation continues like this, it will affect business in January-February,” she warned.
Others, like Beso Ortoidze, Director of Arsi, underscored the urgency of de-escalation. When asked what Kobakhidze said he said, the same positions were voiced by the government as the ones voiced publicly. He noted also that “more than 2,000 companies, including ours, have demanded snap elections and the release of prisoners. We will listen and, perhaps, receive an answer,” he said.
Irakli Iashvili, the founder of the East Gate Group, highlighted fears of currency instability, implying that someone was attacking the national currency by telling journalists: “Do you think it is right that the GEL exchange rate is being attacked? I understand the demands, but I do not agree with the devaluation of the GEL,” he said. “Businessmen and politicians should mind their own business, but only in a way that satisfies me”.
Meanwhile, Giorgi Margvelashvili, founder of Tbilvino, reiterated the Free Business Platform’s demands. “We, more than 2,200 business representatives, have made our statement public. We named the solution to the crisis there, which is the release of prisoners and new elections,” he said.
Beka Bekaia, Managing Partner of Nutrimax, said that he expects answers from the Prime Minister on how to de-escalate the situation in Georgia, stressing that businesses are now in a very “difficult situation”. He noted that certain sectors are facing particularly tough conditions, citing for example the lack of tourists, which puts the hospitality sector in a difficult position. “I think the main thing is to de-escalate. Depolarize, because it is impossible to live like this. Elections could be one of the solutions”.
Comments Made After the Meeting
Zurab Chkhaidze, General Director of Kakhetian Traditional Winemaking: “The government team has a specific plan, which includes ensuring that the country’s development continues at the pace it is now. I think that this [growth] rate, as it is, and these monthly and quarterly data are very good. [Journalist: Was there talk of new elections?] Yes, they will be in four years”.
Beso Ortoidze, General Director of Arsi: “The government’s positions are the same as what they say publicly. There was no difference, only more details that were discussed”. He confirmed that new elections were discussed at the meeting.
Giorgi Margvelashvili, founder of Tbilvino, stated that many did not share his sentiments, however there were some representatives of the business community that expressed views about the disproportionate use of force, and the ill-treatment of prisoners. “The initiative was expressed to continue these meetings, especially with those groups that are critical of the current events,” he noted.
Tea Zakaradze, General Manager of TAV Georgia: “We discussed all the issues that are important today and received comprehensive answers to all our questions. The Prime Minister promised us that steps will be taken as soon as possible to resolve all this. There was no talk of new elections. There was no position regarding new elections, and I will tell you directly that we went through all the nuances in great detail… We talked about it and [the PM promised] that prisoners will be released before the New Year.”
GD’s Economy Minister’s Statement
GD’s Minister of Economy and Vice-Prime Minister, Levan Davitashvili, said after the meeting that the dialogue with business representatives was “very interesting” and that the opinions of both those who support the government’s policy and those “who have questions” were heard. He said that every question was answered during the meeting and special attention was paid to the discussions on the course of the government, with the leadership of the GD promising to proceed according to its pre-election promise “with dignity and prosperity towards Europe”.
“We talked about the current processes, the extreme polarization that exists in the society, and the challenges that our country faces today in terms of stability. Of course, the business community and all groups in the society want peace and prosperity in our country. Regardless of the political platform of different groups in our society or business, I think everyone has the same desire: to have more prosperity, a stable and predictable development environment in this country,” Davitashvili stated.
Davitashvili noted that it had been decided to hold more meetings with those businessmen who had “different opinions” so that they could “get some explanations about the policies being implemented in the country today”.
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On December 23, the International Republican Institute’s (IRI) International Election Observation Mission (IEOM) issued its final report on Georgia’s parliamentary elections. The mission concludes that Georgia’s October 26 parliamentary elections were “fundamentally flawed,” outlining four main areas of concern and multiple recommendations for reform, with the mission’s Head, IRI’s President Dr. Daniel Twining stressing that “only new elections can restore the Georgian people’s confidence in their government’s legitimacy.”
Inequitable Conditions and Misuse of State Resources
IRI’s findings highlight that inequitable conditions and the misuse of state resources severely undermined the fairness of the Georgian elections. The transfer of political party donation and campaign financing oversight from the State Audit Office (SAO) to the Anti-Corruption Bureau (ACB), whose head is appointed by the Prime Minister, created fears that the ACB would be weaponized against opposition parties.
Amendments to the Law on Political Union of Citizens (LPU) prohibited parties from receiving donations from legal entities and forming pre-election blocs, pressuring candidates to abandon their parties to join unified lists. This, coupled with a one-percent vote threshold for public political party financing, discouraged smaller parties from uniting to compete effectively.
According to the IRI’s mission, broadcast media regulations further disadvantaged opposition parties by limiting free airtime and tightening control over media narratives. “Commanding a significant funding advantage, Georgian Dream exerted influence over several media outlets to dominate the political narrative. Georgian Dream also used state funded events to promote parliamentary candidates and mobilized public servants and socio-economic vulnerable groups to attend its rallies, creating undue pressures on public servants to participate in partisan activities. The organization notes, that the ruling party also allegedly launched a widespread campaign to collect profiling data on citizens, reportedly using government resources, in violation of voters’ privacy. These government actions created an uneven playing field, compromising the fairness of the election.”
Suppression of Civil Society, Opposition, and Systematic Voter Intimidation
IRI observed widespread suppression of civil society and opposition parties during the Georgian elections, accompanied by systematic voter intimidation. While the campaign period was largely peaceful, rural and ethnic-minority areas experienced significant political coercion and intimidation. Institutional safeguards to protect freedom of speech and assembly were inadequate, leaving civil society and opposition groups vulnerable. Intimidation tactics, such as coercively acquiring voter identity cards, escalated in the lead-up to election day.
On election day, the presence of video cameras in polling stations and the use of special pens that compromised ballot secrecy heightened fears of voter surveillance and intimidation. “These factors eroded confidence in the electoral process and the protection of fundamental political rights.”
State Capture of Electoral and Judicial Institutions
IRI’s findings reveal that state capture of electoral and judicial institutions further diminished trust in the Georgian electoral process. Public confidence in the Central Election Commission (CEC) plummeted due to changes, such as the removal of the opposition-nominated deputy chairperson and reduced internal voting thresholds, which fueled perceptions of partisanship.
“Additionally, a controversial CEC decree assigning poll workers a week before the election, upheld by the courts, drew strong criticism for allowing potential ruling party influence. While electronic and manual vote counts performed as expected vulnerabilities in the voting process remained unaddressed. Inadequate responses from investigative authorities, a biased judiciary, and insufficient mechanisms for resolving election disputes further undermined trust in the process and contributed to the rejection of election results,” the report reads.
Rejection of Election Results
IRI highlighted that widespread irregularities during the pre-election period and election day undermined the credibility of the Georgian elections and led to a rejection of the results. Sophisticated tactics, including the use of voter data profiles for coercion, surveillance, and vote secrecy violations, compromised the integrity of the process. Election day malpractices, such as vote buying, carousel voting, breaches of ballot secrecy, and obstruction of observers, further exacerbated the situation. Weak dispute resolution mechanisms intensified post-election instability.
“The democratic principle of citizens accepting election results is fundamental to the stability and legitimacy of any democracy but requires trust in institutions and the electoral process. Lack of broad public trust and acceptance of results raises questions about the legitimacy of the election outcomes,” IRI notes.
IRI’s Conclusions
According to the report, the parliamentary elections in Georgia revealed a “decline in genuine political competition.” The IRI mission found that “numerous factors heavily marred the process and cast serious doubts on the election’s credibility,” highlighting an urgent need for “coherent and comprehensive election reforms” to address the weaknesses in the legal, administrative, and institutional frameworks governing elections.
The IRI mission also echoed the international community’s “interest in, and enthusiasm for, credible, inclusive and transparent elections in Georgia.” It encouraged the government to “heed the calls of civil society and the international community to address questions of government legitimacy emerging from the elections.”
Looking ahead, the IRI emphasized that Georgia must prioritize reforms to “enhance the independence of the election administration, law enforcement bodies, judiciary, and media, while fostering a more inclusive and open political environment.” These reforms, the mission stressed, are essential to advance Georgia’s “democratic progress, its aspirations for closer integration with Europe,” and to ensure that elections are “a genuine reflection of peoples’ will.”
“Georgia’s parliamentary election was not credible in the eyes of its citizens and marks a sad chapter in the country’s fight for freedom and democratic accountability,” said the Head of the IEOM, IRI’s President Dr. Daniel Twining, stressing that “Georgia’s institutions, including the Central Election Commission, the judiciary, and the government bureaucracy, functioned as arms of the ruling party rather than being independent and impartial. Reflecting on what IRI’s mission observed and on what has transpired since the election, only new elections can restore the Georgian people’s confidence in their government’s legitimacy.”
The report also makes 31 recommendations to “safeguard Georgia’s democracy,” including the repeal of the Foreign Agents Law. Other recommendations cover the electoral framework and competition, election administration, institutional integrity and oversight, and technology and open data.
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Starting in 2025, Azerbaijan will impose financial sanctions on transactions involving the sale and purchase of movable property, including precious stones, precious metals, and cultural products, as well as vehicles, if the total amount exceeds ₼15,000 ($8,823) and is not conducted through cashless payments.
Reducing workday in Armenia to 7 hours
“Reduce the working day from 8 to 7 hours, and the weekly working hours from 40 to 35, while maintaining the salary.” This proposal was made by the Ministry of Labour and Social Affairs of Armenia. The draft law has, as usual, been published in advance on the e-draft.am platform for public discussion and expert review. It has already received 645 votes in favour, with 19 votes against.
According to the authors of the project, reducing working hours will not have a negative impact on the economy. On the contrary, it will contribute to increased productivity. However, according to Gagik Makaryan, a member of the Employers’ Union, labour productivity in the country is already low. It is several times behind European standards. Therefore, he believes that if the project is adopted, productivity will decline even further.
Economist Agasi Tavadyan told JAMnews that the ministry’s proposal is underdeveloped and not thoroughly thought through. In his assessment, it is a populist move, as the project lacks economic justification.
“Of course, it is stated that this step will contribute to increased productivity, but no relevant calculations are provided. It has not been calculated how this will impact the economy, organizational productivity, and the country’s income as a whole,” he stressed.
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Work-life balance: proposal will ensure healthy balance between work and personal life
The Ministry of Labour and Social Affairs proposes amendments to the Labour Code to reduce the working day by one hour.
“Since the introduction of the current 8-hour working day, technological changes have occurred, contributing to the automation of many processes. Considering this, in various countries, such as France, Germany, Sweden, Belgium, Austria, Norway, and Iceland, a flexible working hours system has already been implemented, reducing working hours,” states the justification for the project.
The reduction of working hours is implemented differently in various countries. In some countries, the length of the working day is shortened, while in others, the number of working days per week is reduced:
“International experience and individual studies show that reducing weekly working hours does not have a negative impact on the economy. Moreover, it contributes to increased productivity and positively affects the quality of life, as it ensures a balance between work and personal life (work-life balance).”
In the project justification, the authors also refer to a study by the World Health Organization, which states:
“Long working hours affect mental and physical health, may cause cardiovascular diseases, and contribute to the development of depression and stress.”
Economic studies (EPI Report on Reduced Workweek) indicate that reducing working hours can:
- Increase labour productivity through more efficient employee work,
- Create new jobs amid the overall economic trend.
“We’re just trying to appease people”
Gagik Makaryan, a member of the Employers’ Union, does not share the view of the Ministry of Labour and Social Affairs. He believes that this proposal carries risks for the economy:
“Armenia’s economy has serious problems with competitiveness. For economic development, we need to make significant efforts and mobilize our resources. Working hours play an important role in this.”
He says that some countries were able to switch to a 7-hour working day only because they have high productivity, highly skilled employees who work quickly, and good technology. According to Makaryan, annual productivity per person in Europe is 110-130 thousand dollars, whereas in Armenia, this figure is about 8 times lower.
The economist does not understand what problem the government intends to solve with this change:
“Perhaps we are solving a social issue or one related to healthcare. Or maybe we are just trying to appease people.”
He believes that the level of automation in Armenia is low. He emphasizes that, aside from equipment, labour force plays a significant role in productivity. In Makaryan’s opinion, the quality of the workforce has not improved:
“The education system still cannot provide the necessary quantity or quality of personnel. How can productivity increase if the same people are working? Does this mean the government acknowledges that the workforce is tired? Will they work more enthusiastically and actively if the workday is shorter?”
According to the member of the Employers’ Union, the workforce is uncompetitive, so working fewer hours will not increase the GDP they produce. He is concerned that the country will not reach the required level of economic development. In that case, the government will try to generate income and maintain promised salaries “at the expense of businesses.”
“Since businesses are obligated to use less labour, they will not generate the same level of income. Overall business productivity will decrease. This means that VAT and profit taxes will also decrease,” he noted.
Economist Agasi Tavadyan
Economist Agasi Tavadyan says that those who can work remotely have benefited from process automation. This includes a large number of people working in IT and related fields. He emphasizes, however, that this is not the case for everyone. There are areas of work where physical presence is important, and therefore, productivity may decrease.
He gives the example of doctors, who must provide 24-hour shifts. Previously, three doctors were needed for this. After the expected changes, the question will arise—how will the work be organized? In his view, the project does not take into account the specifics of people’s work schedules:
“For example, some people work one day for 24 hours and then rest for two days. How will their situation be addressed?”
According to Tavadyan, business owners should decide what working hours to establish for specific positions, and the government should not interfere.
He is certain that there are no economic calculations, calling it a “populist move.” Only with calculations and the results of their analysis does he see grounds for a clear answer to the question of what this will bring to the economy.
Tavadyan asserts that this is not the first populist initiative from the government. Previously, it made a decision regarding unreliable borrowers. He believes such decisions should be viewed in the context of an election campaign.
In his opinion, Armenia’s economy already faces enough problems. He reminds that the tax burden has increased, and between January and September 2024, exports to the EAEU and the European Union decreased by 17% and 25%, respectively. Moreover, in the last quarter, state revenues decreased. Tax revenues were 8% lower than planned.
“In these conditions, this decision will be an additional burden on the business entities that sustain our economy. The state has insured workers, but employers face significant risks,” he concluded.
Social media reaction
“I welcome this proposal. I believe it is important to note that in many member countries of the International Labour Organization, a 4-day working regime is now in place, allowing employees to spend the remaining days of the week with their families.”
“Instead of creating jobs, you are reducing working hours while keeping the salary. Is our situation really that good? Or are the newly appointed officials unable to work? Will they at least pretend to work for one hour less?”
“An excellent initiative, justified by the fact that in such a stressful atmosphere, an additional hour for more pleasant activities will contribute both to health and greater social activity. People will also have more time to spend with their families and children.”
“I ask that the law be passed with provisions that apply to everyone. I work in a private institution myself, and I want my employer to be obligated to comply with this law and not be able to circumvent it in any way. I hope the initiative will be implemented and the rights of many thousands of workers will be protected.”
