Some assessments of the effect of the war and how people are responding

As reported in Tbilisi English language newspapers this week:

Poti seaport estimates its losses at around 2MUSD.  Six employees died and 35 were wounded as a result of the bombing.

HeidelbergCement suffered damage  when it was bombed but has now started working again aftr a 14 day stoppage. The company says it will continue investing in Georgia.

The Borjomi Gorge has been announced as a zone of ecological disaster as a result of damage by forest fires, some of which are still burning.

And not all companies are being deterred by the war.  The Ministry of Economy reports that Indian companies  have taken part in a tender for licenses and if successful are planning to invest 37.1MUSD in oil and gas.

Rompetrol has reduced prices by 5-10 tetri to express its support to the people of Georgia, and increased the import of fuel to ensure no deficit. 

Some teachers are concerned about their jobs.  Kindergarten schools have been used in Tbilisi to house refugees.  They are still receiving their pay though they aren't working. Despite this they are grumbling about not being able to use the schools.  Given the time Georgian governments have taken to rehouse refugees (the Georgians fleeing from Abkhazia in the 90s were left staying in a hotel for at least 10 years, then unceremoniously kicked out with a lump sum), they might have a point.

IDPs in Tbilisi are being encouraged to move back to Gori, by the fact that the food supplies have already moved there.  Rebuilding seems to have started.

Now the economists are worrying that all the aid coming will cause inflation if it is given to the IDPs directly.  People seem to think it will appear tomorrow, as opposed to spread over several months, or even years, if at all, as is often the case with this sort of money promised by donors.  Since IDPs aren't getting much cash anyway, inflation from this cause seems unlikely.

The other big worry is corruption with these large sums of money coming in.  Saakashvili has apparently got corruption down from 90% of the take to 50%.  Still a long way to go.