ADB ready to assist in diversification of Azerbaijani economy

The Asian Development Bank considers the possible inclusion of agriculture in the list of areas to be covered by the upcoming strategy on Azerbaijan, Trend news agency reported.

The issue was discussed at a meeting of the Committee on Development Effectiveness of the bank, the ADB said on Friday.

The Committee officials also discussed the lessons identified in the use of Multiannual Financial Framework (MFF) in Azerbaijan's road sector and the prospects of diversification of Azerbaijan's economy.

"Diversification is an issue not only for Azerbaijan but also for Kazakhstan and Uzbekistan, which must be taken into account in the formulation of the strategy on the country. With regard to agriculture, staff clarified that there are other donors who are currently very active in that sector. The Committee was pleased to note that the lessons identified from the first MFF such as the need for strong capacity development component and a clear roadmap guiding the interventions were incorporated in the second MFF," the statement said.

In addition the Committee discussed Independent Evaluation Department's (IED) validation report for Azerbaijan country operations in 2000-2011. The Committee was pleased with the achievements in poverty reduction (from 62% in 1995 down to 8% in 2011), but noted some challenges remaining.

There is a need to diversify the economy and eliminate the infrastructure gap outside Baku, the statement said.

The ADB was established in 1966 and has 67 members. The headquarters of the bank is located in the capital of the Philippines, Manila.

Azerbaijan became a member of the Asian Development Bank in 1999. The country's participation share in the bank's capital is 0.5 percent.

Japan and the US (31.2 per cent of the total share capital), India and China (12.8 percent), Australia, South Korea and Canada (16 percent) are the ADB leading shareholders.