Azerbaijan improves its position in WEF ranking
By Sara Israfilbayova
Azerbaijan has moved up two spots to rank 35th in the Global Competitiveness Report 2017-2018 published by the World Economic Forum (WEF).
In the most authoritative international rating, energy- rich Azerbaijan has maintained its leadership in the CIS. The country left behind even G20 countries, including Italy, Russia, Indonesia, India, Turkey, and the South African Republic in the economic competitiveness index.
Azerbaijan improved its position in 9 out of 12 pillars in the Global Competitiveness Report 2017-2018: Institutions (33rd), Infrastructure (51st), Health and Primary Education (74th), Higher Education and Training (68th), Goods Market Efficiency (31st), Labor Market Efficiency (17th), Financial Market Development (79th), Business Sophistication (40th), and Innovation (33rd). Azerbaijan made the greatest advancement in Business Sophistication pillar – 20 spots.
In Labor market efficiency pillar, Azerbaijan is the world`s number 17 in terms of the efficient use of talent, outclassing Israel, Ireland, Belgium, Austria and Estonia. In Goods market efficiency pillar, Azerbaijan ranks 32nd in Competition and 31st in Quality of Demand Conditions categories.
The country’s position declined only in two pillars – Macroeconomic Environment and Technological Readiness. Despite the impact of external shocks, the country ranks 37th among 140 countries in Government’s Budget category. Azerbaijan also enjoys a strong position in Government`s Debt category – 43rd place. In Macroeconomic Environment pillar, Azerbaijan`s position declined in Inflation category. The country`s position remained unchanged in Market Size pillar.
In high technologies sector, Azerbaijan ranks 14th in government supply indicator, outclassing the Netherlands, Norway and the United Kingdom. Azerbaijan is one of the counties with the lowest social inequality indicator, according to the report.
The advancement of Azerbaijan's position in the world's most authoritative rating shows the international community`s recognition of the policy of comprehensive economic reforms conducted by President Ilham Aliyev, said the Center for Economic Reforms Analysis and Communications.
The Center told Trend that the monitoring results and evaluation of Strategic Road Maps approved by the president in late 2016 also testify that the systematic economic policy gives its positive results.
The President approved 12 Strategic Road Maps in December 2016, in which the national economic prospects and action plan for 2016-2020, long-term vision and goals for the period after 2025 are determined.
The Strategic Road Maps cover almost all sectors of the economy, including, development of the oil and gas industry, the manufacture and processing of agricultural products, the manufacture of small and medium entrepreneurship-level consumer goods, development of heavy industry and machinery, tourism, logistics and trade, vocational education and training, financial services, communication and information technologies and utilities.
The country also improved its legislation and administrative system to ensure optimal profitability of entrepreneurial activity and to create a business environment based on competitiveness principles, to increase investment attractiveness of the country, and to further improve Azerbaijan's position in international ratings.
Azerbaijan's moving up two places in the 2017-2018 Global Competitiveness Report shows that the country's position will improve in other authoritative ratings too, according to the Center.
MP Aydin Mirzazadeh, commenting on the issue, emphasized that the fact that Azerbaijan has improved its position in the WEF competitiveness ranking is an indicator of the great success of the country.
Azerbaijan's positions have been improved in a short time, first of all, thanks to a well thought out foreign and domestic policy, which was successfully followed under the leadership of President Aliyev, he added.
Today, the main task is to implement mechanisms to encourage the export of non-oil products. Currently, the Economy Ministry is working hard on promotion of the ‘Made in Azerbaijan’ brand abroad, organizes business forums and trade missions in this regard.
Thanks to these measures, the export of vegetables in the first quarter of 2017 grew by 45 percent, fruits-by 20 percent, cotton-by 3.6 times, wine-by 29 percent.
And the system of returning part of the costs for exported products further stimulates domestic producers to produce export-oriented products. The state refunds 3-6 percent of the customs value of goods to non-oil exporters within the framework of mechanisms on promoting exports of non-oil products.
Moreover, the suspension of inspections of entrepreneurial activity for a period of two years reduced the number of contacts with officials, which led to a reduction in the number of possible corruption facts associated with these inspections.
Also the number of licenses and permits for business doing were reduces. The number of licenses decreased from 59 to 37, and permits - almost four times - to 86.
Chairman of the Association of Cooperation of Azerbaijan and Arab Countries Elshan Rahimov told Trend that the improvement of Azerbaijan's position in the "Global Competitiveness Rating 2017-2018" will help attract foreign investments into the country, including from Arab countries.
"There was a time when investors from Arab countries showed great interest in Azerbaijan. However, then they faced various problems and cases of fraud, so over time interest in our country gradually subsided," Rahimov said.
Rahimov stressed that today the situation in Azerbaijan is completely different. "The country adopted various laws aimed at protecting the rights of investors. But, unfortunately, not everyone knows about this,” he said adding that the ranking will raise awareness about the business environment of Azerbaijan.
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