Episode 35: Dollarization in Georgia with Ia Eradze

Reimagining Soviet Georgia

On today's episode we sit down with political economist Ia Eradze to discuss how extreme rates of dollarization in Georgia emerged after the Soviet Union's demise, why dollarization persists, as well as how the dominance of neoliberal economic policies and exclusion of socio-economic issues from the public and political discourse in post-Soviet Georgia came to be.

Below is a description of Eradze's 2023 book Unraveling Dollarization Persistence: The Case of Georgia followed by a link to an article which summarizes the book's main arguments:

The book engages with the persistence of foreign currency domination at the example of Georgia. Unofficial dollarization remains a challenge for developing countries, as it increases the vulnerability of households, firms and governments with foreign currency debt, limits monetary sovereignty, threatens financial and political stability and hinders economic development. These issues have become even more evident during the Covid 19 pandemic through the increasing debt in foreign currency. This monograph provides a political economic analysis of dollarization and conceptualises dollarization through a state theory, in which Georgia is framed as a peripheral hybrid state. The book is structured around three themes: genesis of dollarization (1991-2003), dollarization persistence (2003-2012) and politicization of dollarization (2012-2019). Thus, the history and persistence of foreign currency domination is explained through embedding dollarization into political debates, governance tactics, policies and institutions, economic interests, accumulation regime, civil society, global processes and interests of international actors.

https://www.phenomenalworld.org/analysis/unraveling-dollarization/

Ia Eradze is an associate professor at the Georgian Institute of Public Affairs and a CERGE-EI Foundation teaching fellow. She is also a researcher at the Institute for Social and Cultural Studies at the Ilia State University. Ia holds a PhD in social and economic sciences from the University of Kassel. She is a political economist with research interest in finance and state formation in the post-socialist space. Ia has worked as a researcher at ZZF Potsdam and was an invited scholar at Harvard University, Sciences Po, Trinity College and University of Vienna.