Economist: Establishment of TRACECA Fund to lead to promotion of investments
Qabil Ashirov
Read moreDespite being a landlocked country, Azerbaijan has become a transition hub through different corridors and programs. Year by year, the volume of loads transported between Europe and Asia via Azerbaijan increases. For example, during January 2024, the revenues of Azerbaijan's transport sector increased by 22.6 percent compared to the corresponding period of last year and amounted to AZN1bn ($0.59bn). The sector's share in GDP increased from 5.4% to 7.0%. Only this figure is enough to demonstrate the importance that Azerbaijan attaches to transport corridors and programs.
One of these programs is Transport Corridor Europe-Caucasus-Asia (TRACECA), which links 12 states in Eastern Europe. The program's aim is to strengthen economic relations, trade, and transport in the regions of the Black Sea basin, the South Caucasus, and Central Asia.
The member countries included the establishment of the fund in the action plan of TRACECA for 2024-2026.
According to the representative of TRACECA, the fund will start operation next year. The representatives added that all TRACECA countries, international commercial companies, and other interested parties will be invited to the fund. The main goal of creating the fund is to develop TRACECA and implement infrastructure projects when necessary.
Speaking to Azernews, economist Elshad Mammadov noted that the establishment of an appropriate fund related to TRACECA would lead to the promotion of investments and their development along an increasing line. In general, there are deficit problems related to investments in the regional framework, and therefore the economist thinks that the establishment of a fund as a whole should be positively assessed if that fund will serve the growth of investments in the relevant directions.
“Azerbaijan can also get its economic dividends in this regard because there is a great need for investment growth related to the development of the non-raw materials sector in the economy of Azerbaijan, I would say that the necessity has arisen. Through this type of fund, we can achieve an increase in the volume of investments in the country. Here, the most important point is that the activity of this fund is not related to the withdrawal of any existing resources from the economy, but to the creation of investments. This is very important, and in my opinion, the creation of a fund in this regard can bring economic dividends to Azerbaijan,” the economist pointed out.
He added that TRACECA's contribution to the region, and especially to the economy of Azerbaijan, is that it is a direction that will stimulate economic revival and economic activity. In the end, the intensification of processes in this direction, i.e. within the framework of TRACECA's activity, can give a positive impetus to economic activity through the growth of investments.
“Economic revival is ultimately one of the main goals of economic policy. Therefore, I think that the development of the track and the increase in economic activity observed in the future with the growth of investment in this direction is appropriate, and it is necessary to take a positive approach to the support of this type of direction as a whole,” economist Elshad Mammadov concluded.
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Qabil Ashirov is AzerNews’ staff journalist, follow him on Twitter: @g_Ashirov
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