Azerbaijan recognized as most stable country in region
By Aynur Karimova
Azerbaijan, the largest nation of the South Caucasus, has once again been recognized as the most stable country in the region in a recent report published by the Russian Minchenko Consulting Communication Group. Meanwhile, Armenia is facing the greatest political risks and challenges among countries of the region.
"Among all regional countries, Azerbaijan is characterized by the lowest level of risks,” the report said. “Azerbaijan has the strongest economy in the Caucasus, attractive to foreign investors. It is a politically stable country. A multi-vector foreign policy, the ability to balance the interests of the U.S., EU, Russia, Turkey, Iran, Israel and the Arab countries, has been a major trump card for Baku. It remains true up until now."
The report said that Azerbaijan's current authorities seem to be in stable positions. The country does not face any serious domestic political competition and is risk-resistant.
Minchenko Consulting experts said that Armenia saw mass protests in June 2015 due to a decision by the Commission on the Regulation of Public Services to raise electricity tariffs.
“The tariff problem is just a part of the more general domestic and foreign policy contexts full of significant risks,” the document said. "On the one hand, security guarantees and economic support received by Yerevan from Moscow ensure the status quo, which is favorable for the country on the whole, but on the other hand, increase the country's dependence on Russian business giants."
Political and macroeconomic stability, the protection of investors' rights, a favorable geographical location, rich natural resources, and a highly skilled workforce have turned Azerbaijan into one of the fastest developing countries in the world.
Due to an attractive and stable investment climate and a unique macroeconomic situation in an otherwise tumultuous financial crisis for the rest of the world, foreign investors are flocking to various sectors of the Azerbaijanis economy.
The amount of foreign capital inflow into Azerbaijan in the form of direct investments totaled roughly $8 billion in 2014.
Today, Azerbaijan is gradually turning from a strict investment importer into an exporter country. In 2012, in particular, Azerbaijan’s foreign investments amounted to $1.128 billion, exceeding 2011 figures by two times.
One of the main priorities of Azerbaijan's government is promoting its non-oil sector and attracting investments, advanced technologies, and management experience from abroad. Azerbaijan has set a goal: to minimize dependence of the economy on oil and to double the country's GDP by 2020 by developing the non-oil sector.
In recent years, Azerbaijan’s GDP has grown exponentially, along with its GDP per capita. The GDP has increased 16 times and the average salary increased twenty-fold over the past 20 years. Azerbaijan has seen growth in the first seven months of 2015 as well. The GDP amounted to $30.6 billion during this period, a 5.6 percent increase from January-July 2014.
As oil prices continue to plummet, oil and gas-producing countries have rushed to diversify their economies and Azerbaijan has a number of alternatives. Due to its favorable geographic position, Azerbaijan is targeting a turn to becoming a transportation hub for the region.
Today, Azerbaijan plays a leading role developing large-scale projects focused on the transportation of oil and gas. These projects are designed to create a global transport corridor from China to Europe.
Azerbaijan, with its favorable business environment, has entered the list of the top 20 countries in ease of starting a business. Azerbaijan is also among the top 10 countries in terms of the greatest number of economic reforms in doing business, registration of property, and paying taxes.
The tax regulations in Azerbaijan are more favorable for corporations than are in Europe. The highest income tax rate of the country is two times below the European average.
Azerbaijan’s economic prowess extends to the military industry as well.
Today, the Azerbaijani Army is one of the strongest, most highly disciplined armies in the world and a leader in the region. It is equipped with new, high-quality weapons made by domestic and foreign military-industrial systems.
The development of the military is monitored under a special lens in Azerbaijan, a country that lost twenty percent of its internationally recognized territory to Armenian occupation over 20 years ago. Azerbaijan remains in a state of war with Armenia, and as a result, the Azerbaijani Armed Forces have evolved into the most modern army in the Caucasus.
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Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova
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