By Rasana Gasimova
Over the next year, the Unemployment Insurance Fund is planning to finance the participation of 11,000 families in self-employment projects, Azerbaijani Minister of Labor and Social Protection Sahil Babayev told local media.
“After joining the World Bank (WB) project, the number of these families will increase. In 2020, we expect the World Bank project to cover around 1,000-2,000 families. In the following years, 5,000 families will be stably financed by the WB. At the same time, these expenses provide for the organization of various active employment activities on employment projects,” he said.
The Minister added that revenues and expenses of the Unemployment Insurance Fund (UIF) for 2020 are projected at 128.2 million manats ($75.4 million).
“Compared to 2019, revenues and expenses will increase by 30 percent. Of this amount, 111.9 million manats ($65.8 million) will be generated from unemployment insurance premiums,” Babayev said.
He went on to say that by the end of 2019 fund balance will amount to 16 million manats ($9.4 million), which will be used to finance the self-employment program in 2020.
He emphasized that the self-employment program for 2020 is estimated at 63 million manats ($37 million).
Babaev noted that the Ministry of Labor planned to employ 100,000 people in 2019, while in 2020 this figure will be brought up to 130,000.
“Along with the WB, continuing the work within the self-employment programs and with the UN Development Program is being considered. Another 500 people will be funded through the UN Development Program,” said Babayev.
The Minister added that negotiations with the WB on a loan for a self-employment program have entered the final stage.
“By the end of this year, the government will be presented with a draft loan agreement. It is planned to be approved by the WB Board of Directors in 2020. Taking the WB procedures into account, we will start obtaining real assets by the end of 2020,” Babayev said.
The self-employment program has been implemented in Azerbaijan since 2016. As part of these measures, the Ministry of Labor and Social Protection of the Population provides low-income families with various assets (goods, materials, livestock) so that they can start their small business.
Self-employment is the inclusion of unemployed people in the social structure of society by giving them the opportunity to work on special conditions - conditions of self-organization. At the same time, it is a mechanism of social interaction between society and a person.
It is primarily focused on the unemployed, people with disabilities and young people who are looking for an opportunity to apply their forces in business.
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