

A string of social science snapshots, remarks, observations, data from the South Caucasus.


Posted by
HansG
at
1:53 PM
2
comments
Labels: Azerbaijan, Baku, Development, Research, Urban Development
Posted by
HansG
at
2:16 PM
1 comments
Labels: Babajanian, Conflict Resolution, Research
How do urban Russians view the conflicts in South Ossetia and Abkhazia? From September, 5th-8th, 2008 the Analytical Center of Yuri Levada conducted a survey in ten big cities of the Russian Federation, interviewing 1000 Russian respondents. We have translated the results into English here, as they are only available in the original Russian on the Levada website.
Indeed, the results are slightly unintuitive and several different and overlapping interpretations could be kept in mind when reading the results.
Without further adieu, the results:
The overwhelming majority of respondents (80%) said Russia’s recognition of Abkhazia and South Ossetia was the right decision, demonstrating their support of their government's decision -- unpopular in the West -- to recognize these territories.
When asked about timing, most thought it was either well-timed (34%) or overdue (30%) and only 4% thought is was incorrect. A further 8% believed that the territories should have been immediately absorbed into Russia.
On the question whether the Russian army should stay on the territory of South Ossetia, should Russia keep only its peacekeepers for separating conflicting parties, or should the Russian regular army withdraw and be completely replaced by an international peacekeeping force led by the UN and the EU, again the majority supported a Russian solution to the problem.
While the respondents answers to these questions apparently point towards support of maintaining Russia's sphere of influence and backing of the Russian government's positions, the majority of respondents do not appear to be comfortable creating ethnic homelands for either the Abkhaz or the Ossetians. Of respondents, 64% believe that Russia should support the return Georgian refugees (and ostensibly IDPs as well) to Abkhazia and South Ossetia and protect them from oppression from the Abkhaz and Ossetians, while only 25% do not. Logically, this also means that they would support Georgians becoming Abkhaz and Ossetian (and most likely also Russian) citizens.
Russian public opinion, then, on the issue of return will most likely signifigantly differ from the opinions Abkhaz and Ossetians living in the conflict regions, though measuring this would of course be fascinating (but currently undoable).
You can read more here (note that the survey is in Russian, for our English translation send us an email).
Of course, it would also be great to have data on Georgians’ attitude toward the August crisis.
Posted by
Nana
at
3:32 PM
0
comments
Labels: Abkhazia, Attitudes, Russia, South Ossetia, Survey
Over the past year questionable lending practices by major banks and lack of consumer education about credit risk in the United States among “sub-prime” borrowers caused a credit crunch that in turn erupted into a major financial crisis that threatens to lead to a recession and an international economic downturn.
Although little attention is paid to the issue of credit and debt, analogous risky practices are taking place in the banking sectors of the countries of the South Caucasus. A similar financial crisis in these countries could have a far more devastating effect, since one of the population groups most exposed to consumer debt is the small but consolidating middle class in the urban centers. This issue becomes particularly important in the wake of the August war in Georgia, as the region attempts to maintain economic stability in the face of infrastructural damage and reduced foreign investment.
The emerging middle class has been both a cause and a result of high levels of growth in the economies of all three South Caucasus countries over the past several years, and the banking sectors in these countries has been an area of particularly high growth because of structural reforms, increasing government regulation, and high demand for investment capital.
Banks have become more eager than in the past to extend consumer credit, but for a number of reasons interests rates in the region are extremely high: because of perceived risk of investment in the region and the risk of devaluation of local currencies (the highest interest rates for deposits are for accounts held in local currencies), and because of physical shortages of currencies as governments reduce outputs to combat inflation. Rates for consumer loans in the region average 15-20 percent, which are significantly higher than the 7-9 percent rates for sub-prime mortgages that precipitated the crisis in the United States.
Banks in the region have also been eager to introduce credit card services, offering the convenience of credit lines to their clients for purchases along the model long familiar in developed countries, with no interest if payments are made on time, but stiff penalties for missed payments. Advertising for loans and credit cards are ubiquitous in the capital cities, and credit booths are common in computer and furniture stores.
Yet although micro-credit programs have been functioning in the region for a number of years, particularly in rural areas, the whole phenomenon of commercial consumer credit is largely a new concept for the urban middle class. New borrowers have neither credit histories upon which banks can determine levels of risk, nor experience or deep understanding of the potential hazards involved in taking loans.
According to data from the Caucasus Research Resource Centers’ Data Initiative Project, while the number of households in Azerbaijan, Armenia and Georgia that take loans overall is not large (and real mortgages are practically nonexistent), the number is substantial enough to merit concern: 4% in Azerbaijan, 15% in Armenia and 9% in Georgia. The majority of those loans are for more than 100 USD (78% in the case of Georgia), and in Armenia and Georgia more than half of those who use credit have taken two or more loans. And while a portion of these loans in all three countries are taken for essential expenses such as medical care, utilities or food (demonstrating extreme poverty), approximately half of loans in all three countries are taken for consumption, investment or business purposes, or to repay previous loans.
While many consumers in the region may be making careful strategic choices in using credit, it seems that a significant amount of loans are being used for highly speculative investments, such as in real estate or in businesses that have been profitable in the past but are now close to saturation (e.g. restaurants and cafes and importing automobiles). The real estate markets in particular seem to be highly inflated in the urban centers (again, fueled by speculative trading financed by very high interest loans) and the resulting bubble is likely to burst if perception of a slowdown or reversal in rates of price increases were to appear.
For their part, banks in the region seem to take little interest in the types of projects that loans are being requested to finance, have set only the most minimal requirements for the extension of loans and credit cards (usually a letter from an employer stating a minimal average salary is sufficient), and have taken little initiative in providing consumer education for their clients.
High interest loans and risky investment decisions thus create a very real possibility of overextension by clients of consumer credit who owe more money than they currently earn, which in turn presents a very serious risk of a financial crisis that could threaten to undermine the banking and real estate sectors, particularly given the shocks to the system that resulted from the Georgian-Russian war in August. Such a financial crisis would most likely have far more serious consequences for the fragile economies of the South Caucasus countries than in more developed countries. It would threaten most directly the nascent middle class, which is such an important constituency for the further development of stability, rule of law and democracy in the region, and could therefore have serious consequences as well for the political stability of the region. It is in the interests of both governments and commercial banks and loaning organizations in the region to forestall such a crisis by implementing more rigorous requirements before extending credit and devoting resources to consumer education.
Posted by
Anonymous
at
10:13 AM
1 comments
Labels: Banking, Credit, Economic Situation, Economy
Posted by
Bayaz
at
9:00 AM
1 comments
Labels: Azerbaijan, Business, Economic Situation, Economy, World Bank
Corruption remains an endemic feature in the region, outside Georgia. No wonder, then, that it continues to receive considerable attention from organizations and donors. Currently, we are being asked to run a survey (we will publish details on that later). How do you do this? Not all of this research is intuitive. Here are a couple of examples of what can go wrong, taken from the draft questionnaire we were given.
One obvious way of getting at the issue is to measure experience, to ask whether people themselves have paid bribes in the last 12 months. Is that a good way of measuring levels of corruption? Well, there are limitations. One limitation is that you simply don't know how much people have actually interacted with institutions that may demand a bribe. If you don't have a car, if you don't need any official document, are not enrolled at a university, and don't visit a hospital you simply may not become a target. In fact, one likely result of corruption is that you minimize contacts with official institutions in order to reduce your exposure to corruption. So you definitely need to measure the extent of contact, in addition to asking people's experiences.
What actually is NOT a big problem is whether everyone will tell you the truth. The survey questionnaires typically are set up to get people talking, and ask the more sensitive questions half way through, so that the respondent already feels comfortable. Sure, quite a few people will still be reluctant to admit that they paid a bribe, so what you measure is only the number of respondents that tell you that they paid a bribe. But this in itself is valuable: the honesty typically stays pretty constant, making responses from 2007 well comparable with those from 2008.
But the questionnaire is also tricky in other ways. Let's say you want to get a sense of peoples attitudes towards paying a bribe. The following may strike you as a useful question, at face value.
But there is something wrong with asking this speculative question, since corruption is contextual. Let's look at three very different cases:
Posted by
HansG
at
12:01 PM
2
comments
Labels: Corruption, Methods, Research, Survey
Georgian IPResearch (first time we heard of them, actually) conducted a phone poll between Aug.25 and Sept.2. 450 respondents were questioned countrywide. While we have our strong reservations about these telephone polls (they are biased towards people with phones, picking up calls from strangers, and bored enough to chat), they may serve as a preliminary indication. Here are the results:
1. Was the international community active in stopping the Russian aggression?
Yes 73.3%
No 24%
NA 2.7%
2. Which state was the most active in stopping Russian aggression?
USA 64,2%
France 20,9%
Poland 4,9%
Baltic states 2,2%
Germany 1,6%
UK 1,1%
Ukraine 0,7%
None 1,3%
NA 3,1%
3. Which organization was the most active in stopping Russian aggression?
EU 26,7%
UN 17,6%
NATO 14%
CoE 3%
OSCE 3.1%
All 5.1%
None 4.0%
NA 26.2%
4. Which is the most positive politician in stopping Russian aggression?
Nicolas Sarkozy 35.6%
George W. Bush 17.8%
Condy Rice 12.0%
Angela Merkel 7.8%
John McCain 5.6%
Lech Kaczynski 4.2%
Bernanrd Kouchner 3.3%
Mat Bryza 1.8%
David Miliband 1.6%
Barack Obama 0.9%
Other 2.8%
None 1.3%
NA 5.3%
5. Which is the most friendly country for Georgia?
USA 72.0%
France 42.9%
Ukraine 20.9%
Germany 13.6%
Poland 12.0%
Baltic states 11.6%
UK 7.8%
Turkey 2.2%
Israel 0.7%
Azerbaijan 0.4%
Other 0.6%
None 1.6%
NA 8.9%
(Respondents were asked to name max. 2 states, therefore the total number exceeds 100%)
6. Do you think that the Georgian government could have avoided Russian aggression?
Yes 42.4%
No 46.7%
NA 10.9%
7. Will Georgia receive NATO MAP in the near future?
Yes 80.9%
No 6.9%
NA 12.2%
Perhaps the most interesting part is that more than 40% of respondents think that the Georgian government could have avoided the confrontation. This means that the country might very well be split, with a lot of people thinking that what happened was a big mistake. But as mentioned, we cannot vouch for the quality of this survey.
It will be interesting to examine whether indeed so many people are critical, and who precisely they are. We are planning to conduct our own survey in the next few weeks. If you want to suggest questions that you think should be asked, let us know as soon as possible.
Posted by
HansG
at
1:13 PM
1 comments
Labels: Conflict Resolution, Georgia, Opinion Poll, Politics, Russia, Survey
In the current situation, one issue facing Georgia is what to do with and for the Internally Displaced People (IDPs) that are now coming from South Ossetia and the Kodori Gorge, in Upper Abkhazia. A friend with significant experience in development work posted a candid analysis in an e-mail group. We thought that the analysis is worth sharing since this issue affects the region.
So here is what he had to say:
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"I was speaking about this issue with some Georgian friends just yesterday. They have been involved in IDP shelter work with people from Abkhazia since the mid-1990s. I've done a bit of work with those shelters myself, and would STRONGLY encourage anybody getting involved with shelter issues now to visit some of these old shelters if they have not already done so, and not just in Tbilisi. Some of the shelters I saw in Kutaisi and Samegrelo were horrific. Families have been vegetating in them for fifteen years now, with every politician promising them return next year.
In our discussion, we came up with two big lessons learnt:
1. LESSON ONE: Don't pretend it's temporary
Yes, thankfully, most new IDPs - especially from Gori town - will go home soon. However, many IDPs in Georgia will not. It's not going to happen. Live with it. They weren't ethnically cleansed (houses burnt etc) to pave the way for their return, and Georgia lost the war. The Palestinians aren't returning any time soon, either. No idea how many people this is - let's say Kodori and South Ossetia. [...] We're prob talking 20,000 people minimum.
We should seek to identify those IDPs who will probably not go home soon, and seek durable, humane living conditions for them. Most of Georgia's old IDP shelters are a patchwork of small interventions - an NGO puts in windows, a year later, another puts in floors, two years later there's a new door. Look for yourself - this approach leads to crap results, not only in human terms, but also in terms of value for money. (Repeat assessments are one example - IDPs from Abkhazia have told me how sick they are of assessments by now.)
The key point to remember is that there will be loads of money coming in soon. After that, funds will dry up. By 2006, there was hardly any funding to be had for shelter work. Let's spend it well NOW, while there is money to be spent.
The main prob is that the GoG will probably not look favourably on this approach. IDPs in misery desperate to go home bolster Georgia's claim to these territories. One way to get round this would be to point out that should the IDPs return, the municipalities would get buildings in good shape, ready for privatization or social housing needs. Be diplomatic.
Urban Institute's voucher project was good, but the Georgian housing market was a lot less elastic than they thought. Handing out vouchers to buy flats worth 5000 dollars each to a few hundred families sent housing prices rocketing in Kutaisi (it wasn't enough to money to buy in Tbilisi or Batumi). Vouchers are not feasible on a large scale.
Privatization doesn't solve anything either. One day, your family lives in a crap shelter. The next day, it lives in a crap shelter you own. Without money to renovate, it improves security of residence, but living conditions are exactly the same. How will 50 broke families ever be able to repair their communal roof?
The way I see it, the only humane option is to (1) do large-scale thorough rehabilitation of existing buildings, or (2) to build new housing from scratch (NRC has done the latter on a small scale). A nice side effect is that such large-scale, donor-funded construction efforts will generate a lot of employment in a sector that will be badly affected by the probable fall in investment after this war.
2. LESSON TWO: Don't dump IDPs in depressed or remote areas
Placing people in "no future zones" like the town of Vani, where there is zero employment even for locals, is a bad idea. Also, some shelters in Samegrelo are in the middle of nowhere. Those IDPs who cannot escape get stuck there with nothing to do except to cry, to drink, or to do both. Some have been doing just that for over a decade now. Think poverty trap, think psychosocial problems, think domestic abuse. Also, microcredit or employment generation will not work in the back of beyond.
Maybe they should all be housed in Tbilisi?
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That's just my take, and that of some friends of mine. The history of sheltering IDPs from Abkhazia has created lots of "lessons learnt". Ask your more experienced Georgian colleagues and LNGO partners what they think, and please do visit a few shelters from the 1990s outside Tbilisi before you start knocking out funky proposals. Let's use the money that's gonna pour in now wisely, because we are not going to get a second shot at this.
I would be extremely grateful if we could hear the thoughts of more people on this."
-----------------------------
This, then, the comment of said person (who works in this field and therefore, for now, preferred not to be named). Any views?
Posted by
HansG
at
9:20 PM
5
comments
Labels: Abkhazia, Ethnic war, Georgia, Housing, Internally Displaced Persons, South Ossetia

Posted by
HansG
at
12:52 PM
1 comments
Labels: Abkhazia, Ethnic war, Georgia, Russia, South Ossetia
Women’s participation at all levels of elections in
Let’s dig deeper: during the last parliamentary elections women composed 28% of all parties’ election lists (485 out of 1757); no woman in any party was listed as the number one candidate; only three parties had women within their first five candidates.
The inequality of both women and men standing in election led to an even smaller percentage of women getting a seat in the Georgian parliament: eight from the party list and only one as a majoritarian candidate. Currently only 6% of MPs are women. 
Recently CRRC conducted a survey for Transparency International-Georgia on public attitudes to see what Georgians think of their Parliament. According to the TI data, 64% of those polled agree with the statement that women should have strong representation in parliament. But about 23% of women and 26% of men think that parliament is not the place for women. These misogynists can tip the scale for majoritarian candidates, but what is the answer to the diminishing number of candidates from the party lists? Anti women sentiment in the parties, a party culture? What do you think?
CWN came up with the number of suggestions in order to achieve equal representation of both genders in the legislative body. According to CWN, it is crucial to reach balance not only in the nominated lists but in the taken seats as well. CWN believes the best way to influence and motivate political parties to respect and implement principles of equality is setting sanctions on public funding: when a difference between the number of representatives of each gender goes beyond 2% (yes, two) of the total number of representatives, their political party will be penalized. For more details about CWN finding and policy recommendations visit their website.
If you want to know more about TI Survey, let us know. Some initial data snapshots and results are already available here.
Posted by
Nana
at
4:09 PM
2
comments
Labels: Caucasus, Data, Gender, Georgia, Political Parties, Politics, Transparency International, Women
As many of you may have heard, this week saw the launch of a competitor to Google. Cuil, which apparently is an old Irish word for knowledge, has been set up by several former Googlists and promises a search that's more oriented on content, and says it can do a more comprehensive job in the ever-expanding worldwide web.
So if it's supposed to find rare and out of the way things, how does it do for the Caucasus? We did a quick self test. For Caucasus and data, it does indeed return us on the very top, or at least in the first line, and it's a nice interface, as you can see. However, it also shows choices that are at least somewhat eccentric.
We get a somewhat similar picture for caucasus research, but again it seems to favor our Armenian website. The Georgian or Azerbaijani office are not immediately in sight.
The preference for Armenia is a little odd, since our English language websites in the three countries are practically identical (and similar to the regional site, too).
What does it do for Caucasus and social science? Note we did not put the words in quotation marks, so it's a free search term.
There is some irony in this conclusion, but we don't think it's entirely fair.
And can it help with more specialized requests? We queried CRRC's own Survey Director, Tina(tin) Zurabishvili. Here you see a comparison of Google and Cuil.
Cuil gets it, but again takes us to Armenia. It also throws in a lot of chaff on Salome Zurabishvili, or Tinatin Khidasheli, two Georgian opposition figures. So Google still seems ahead here. As far as we're concerned, Cuil is an interesting additional tool if Google doesn't find what you're looking for, but not yet a serious alternative for internet research on the Caucasus.
Posted by
HansG
at
11:54 AM
3
comments
In contrast to Armenians, Georgians’ attitudes differ – they place friendship the highest, 94% of Georgians supports friendship with Russians, 87% supports friendship with Abkhazians; it would be very interesting to know Abkhazians' attitude towards Georgians. Georgians’ attitude toward Ossetians is the same as with Abkhazians (Friendship - 87%, Business - 82%, and Marriage – 42%).
For Azerbaijanis, there is no clear difference in preferences for friendship and business. Mostly approval rates tally closely, although they obviously vary between nations. Overall, Azerbaijanis are reluctant to engage with Armenians (1% for all three variables), which cannot be said about Armenians’ attitude towards Azerbaijanis. That may be the logic of grievance, but note that the same cannot be said for Georgians’ attitude toward Abkhazians: Georgians lost the war but approval of friendship, business, marriage remain high. We would like to hear what you think might explain the stark contrasts.
Moreover, Azerbaijanis, similarly to Armenians and Georgians, are positively disposed toward Russians. In order to see whether religion variable controls Azerbaijanis’ attitude toward marrying Russians, we cross tabbed both variables: the data showed that only 6% of Muslim Azerbaijanis who attend religious services ‘every day’ support marring Russians. You might be interested to come up with your own hypothesis on Georgians marring Abkhaz or Turks.
Posted by
Nana
at
11:09 AM
2
comments
Labels: Abkhazia, Armenia, Attitudes, Azerbaijan, Caucasus, Caucasus Barometer, Data, Data Initiative, Georgia
Posted by
Dzovinar
at
4:37 PM
0
comments
Labels: Armenia, Elections, Statistics
Difficulties with socio-economic integration – unemployment and a feeling of being “a society within a society,” are some of the examples from the list of problems Diaspora Armenians face when immigrating to
As the researcher finds, integration of immigrant Armenians into the Armenian society is rather weak, because of a number of essential differences in values, lifestyle, dialect, moral principles and ideology peculiar to both immigrant and local Armenians. Furthermore, Diaspora Armenians lack information on their homeland and have high expectation before moving to
According to Mkrtchyan (pictured above presenting at CRRC Armenia), attitudes of different groups toward creating integration policy vary. Local authorities avoid having repatriation and integration policies because immigrants can become competitive at the top levels in government and in business, also fear increased real estate costs. Many experts do understand the serious need of repatriation and integration policy, as repatriates will help to cultivate culture, legitimacy and civic attitudes in Armenian society. A group of representatives of Diaspora structures is sure that this policy is important, as the Diaspora faces assimilation, and there is a lack of patriotism among the younger generation.
Based on the local and Diaspora experts’ suggestions and findings, Anahit made the following policy recommendations:
Mkrtchyan's work was published in the Turkish daily "Agos" in May 2008. The paper (PDF) in English is also available on the CRRC-Armenia website.
(Note that this, and other Fellows' work is on the CRRC Armenia blog, which we strongly encourage you to explore.)
Posted by
Nana
at
11:19 AM
0
comments
Labels: Armenia, CRRC Fellowship, Diaspora, Migration
Recently, we happened upon an article that talks about the use of Russian across the Caucasus. Is Russian becoming obsolete? According to the article, some Georgian politicians suggest this is the case. At the same time, the article points out that the uptake of English is too slow to replace Russian as a lingua franca.
As usual, we were a little disappointed that the article relied on many assertions, without actually checking for data. As it happens, the Data Initiative provides some insights on the question.
With English-language use, this is what respondents told us about their language ability:
One of the explanations for the different levels may be that diaspora contacts have traditionally brought more English to Armenia. Conversely, economic growth in Baku has attracted people more recently to begin learning English (as you will notice in many hotels and restaurants).
But then, where do people see language going in the next few years? Interestingly, there's overwhelming approval for English as the first mandatory foreign language in secondary schools. Almost 70% in Azerbaijan and Georgia would prefer English, with 57% favoring English in Armenia. In Armenia, 37% suggest Russian should be mandatory in secondary schools. Only 27% of Georgians, and, surprisingly, only 18% Azerbaijani respondents prefer Russian. In Azerbaijan, 9% think that no foreign language should be mandatory, while 4% suggest that Turkish should be the first foreign language.
It is at this point, that we're curious to explore how the respondents break down into different groups. When looking at the data, Nana stumbled upon an interesting dimension: the more intelligent the respondent is rated to be (by the interviewer, and it's a very crude measure, but returns interesting results), the more they favor English.
Want to know more? Compare women and men? The old and the young? Citydwellers' English versus rural folk? Let us know, or, better, explore the data set yourself.
Posted by
HansG
at
2:50 PM
1 comments
Labels: Caucasus Barometer, Data Initiative, Education, English, Russia, School, Survey
Posted by
Nana
at
9:54 AM
0
comments
Labels: Caucasus Barometer, CRRC Fellowship, Data Initiative, Peer-Review
| Subject | 4th grade | 8th grade | ||
| Male | Female | Male | Female | |
| Mathematics | 450 | 462 | 473 | 483 |
| Science | 432 | 441 | 455 | 468 |