Lawmaker urges gov`t to bolster anti-crisis efforts
The Azerbaijani government should step up efforts to
fence off the economic crisis, a lawmaker has said.
"The government should take steps meeting the interests of all layers of the population as part of its anti-crisis measures," said Ali Masimli, member of the standing parliamentary commission on economic policy. "In particular, very substantial and systemic measures are to be carried out to boost domestic production."
The MP went on to say that the authorities should heed attention to ensuring a healthy banking system in Azerbaijan. In the current conditions brought on by the economic downturn, prospective sectors of the national economy should not be left without government support. In particular, more assistance should be provided to local entrepreneurs producing goods capable of competing with companies importing food. Also, the government should work to minimize the impact of the economic meltdown on rank-and-file citizens, Masimli said.
Further, he noted that Azerbaijan is one of the countries with small populations, which prevented its economy from collapsing in the aftermath of the severe crisis that has already had a dire impact on economies worldwide. According to Masimli, although the fast-growing South Caucasus republic`s economic figures did not meet the projections in 2008, the government essentially met all of its social obligations.
Masimli emphasized that after the crisis reared up, social tensions in a number of countries had triggered political discontent, subsequently causing conflict between citizens and governments.
"But in Azerbaijan, these negative processes have not occurred. The country`s government is maneuvering successfully while using quite a large security cushion. The policy pursued in the crisis period by the government, and the National Bank of Azerbaijan in particular, should be applauded," the lawmaker said, adding that the central bank was insuring the national economy against tumbling by pursuing a quite conservative policy.
At the same time, Masimli said the crisis has actually affected Azerbaijan`s economic indicators. "For example, whereas the Gross Domestic Product (GDP) had been predicted in early 2008 to grow 21%, actual growth made up just 11%. This means that by failing to fulfill the projections, Azerbaijan has lost revenues to the tune of at least $3-3.6 billion."
Masimli said about 85% of Azerbaijan`s oil industry is closely tied into the global economy. According to various estimates, a $1 drop in the price of a barrel of crude causes reductions in the country`s revenues of $220-250 million per year.
The crisis has affected Azerbaijan`s industry as well. Although 27% industrial growth had been forecast in early 2008, only a 7% increase was posted by the end of the year.
The economic slowdown also adversely affected growth in salaries, as the government was unable to meet its projections made early last year. Although wages of citizens did increase in 2008, growth in individual salaries of employees was 12 manats ($15) below the expected level due to the crisis.
"The government should take steps meeting the interests of all layers of the population as part of its anti-crisis measures," said Ali Masimli, member of the standing parliamentary commission on economic policy. "In particular, very substantial and systemic measures are to be carried out to boost domestic production."
The MP went on to say that the authorities should heed attention to ensuring a healthy banking system in Azerbaijan. In the current conditions brought on by the economic downturn, prospective sectors of the national economy should not be left without government support. In particular, more assistance should be provided to local entrepreneurs producing goods capable of competing with companies importing food. Also, the government should work to minimize the impact of the economic meltdown on rank-and-file citizens, Masimli said.
Further, he noted that Azerbaijan is one of the countries with small populations, which prevented its economy from collapsing in the aftermath of the severe crisis that has already had a dire impact on economies worldwide. According to Masimli, although the fast-growing South Caucasus republic`s economic figures did not meet the projections in 2008, the government essentially met all of its social obligations.
Masimli emphasized that after the crisis reared up, social tensions in a number of countries had triggered political discontent, subsequently causing conflict between citizens and governments.
"But in Azerbaijan, these negative processes have not occurred. The country`s government is maneuvering successfully while using quite a large security cushion. The policy pursued in the crisis period by the government, and the National Bank of Azerbaijan in particular, should be applauded," the lawmaker said, adding that the central bank was insuring the national economy against tumbling by pursuing a quite conservative policy.
At the same time, Masimli said the crisis has actually affected Azerbaijan`s economic indicators. "For example, whereas the Gross Domestic Product (GDP) had been predicted in early 2008 to grow 21%, actual growth made up just 11%. This means that by failing to fulfill the projections, Azerbaijan has lost revenues to the tune of at least $3-3.6 billion."
Masimli said about 85% of Azerbaijan`s oil industry is closely tied into the global economy. According to various estimates, a $1 drop in the price of a barrel of crude causes reductions in the country`s revenues of $220-250 million per year.
The crisis has affected Azerbaijan`s industry as well. Although 27% industrial growth had been forecast in early 2008, only a 7% increase was posted by the end of the year.
The economic slowdown also adversely affected growth in salaries, as the government was unable to meet its projections made early last year. Although wages of citizens did increase in 2008, growth in individual salaries of employees was 12 manats ($15) below the expected level due to the crisis.
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