USAID ready to back Azerbaijan's agricultural development
The main priority for the U.S. Agency for International Development (USAID) in Azerbaijan is support of small and medium business, and the agency presently aims to assist banks in establishing an enabling environment for SMEs in the agricultural sector to benefit local farmers, USAID chief lawyer in the country, Leyla Mammadova, told Trend news agency.
She noted that USAID intends to contribute to the development of agriculture in the country, given the existing potential for the development of fisheries and livestock breeding.
"Both government subsidies and foreign capital are required for the development of these fields. It is also very important to create an appropriate business environment for small and medium businesses," Mammadova said.
USAID has committed $18.4 million to support 15 projects in Azerbaijan, including in the areas of democracy and governance, promoting economic growth and healthcare in 2011.
Improving the mechanism of using the funds of the National Fund for Entrepreneurship Support (NFES) under the Economic Development Ministry of Azerbaijan will give an impetus to the development of small and medium enterprises in Azerbaijan, facilitating entrepreneurs' access to preferential financing.
The world business practice shows that the small enterprises take an important place in the national economy of any state. Azerbaijan has all the means to develop the private SME sector, which can pave the way for its long-term economic growth within oil sector.
The small businesses basic problem is the financial plan and starting capital to open the business.
Notwithstanding list of bills related to entrepreneurship in Azerbaijan, including loan processes facilitation, for the country entrepreneurship development the low share of the SMEs sector in Azerbaijan signify neglecting the sector's weight in the countries' economy.
According to the State Statistical Committee total agricultural production in Azerbaijan rose 10.4% in first half of 2012, in comparison to a year earlier.
The Committee says spring plants were planted in 373,700 ha, as
well cereals and legumes - in 67,500 ha, potato - in 66,000 ha,
vegetable - in 78,000 ha, cotton seed - in 29,100 ha, melons - in
3,600 ha, sugar beet - in 3,600 ha, sunflower - in 10,700 ha and
tobacco - in 1,500 ha.
The Committee says 1,606,900 tons of grain were gathered as of July
1, 2012. Average productivity of ha made 26.5 metric centners.
Meat production rose 3.2% or 6,700 tons to 214,600 tons, milk -
increased by 7.4% or 58,600 tons to 856,400 tons, eggs - by 16% or
82.7 mln to 600.4 mln units.
Shortly after Azerbaijan gained independency in 1991, USAID began
implementing humanitarian assistance activities in the country,
which since expanded into a robust development program centered on
supporting Azerbaijan's transition to a market economy, creating
the foundation for further development of democracy, and improving
the lives of Azerbaijan's citizens, according to the USAID
Azerbaijan website. Since its inception USAID assistance in
Azerbaijan has totaled over $300 million.