Azernews.Az

BAKU – A chief economist of the European Bank for Reconstruction and Development" (EBRD) Erik Berglof has held a presentation of "Transition Report 2010" in Baku.

According to the report, the key challenge for Azerbaijan is to diversify its economy. To increase the country`s non-oil exports, it will be necessary to improve the business environment, encourage competition and attract more foreign strategic investors. While the country`s financial sector has weathered the crisis well, it requires further significant reforms. The reforms should promote consolidation and modernization through increased competition, privatization or changes in regulation. To help speed up reforms and address some of the challenges facing Azerbaijan, the EBRD`s activities will focus primarily on supporting private sector development in the country, and building up a more attractive investment environment. In 2009, production increased by 9.3% in Azerbaijan due to the oil sector. The government of Azerbaijan renewed some aspects of labor legislation and improved transport infrastructure. The east-west and north-south railway corridors connecting Azerbaijan with Russia and Iran are expanding. The both projects will be implemented in 2012. Construction of an international sea trade port will end in 2016.

Since the beginning of its operations in Azerbaijan, the EBRD has invested about 1.2 billion euros in 114 projects, with over 60 per cent of the projects being investments into the development of the private sector.