Karabakh to become example of dev't for other regions of Azerbaijan thanks to President Ilham Aliyev - experts
By Trend
On April 12, President Ilham Aliyev chaired a meeting dedicated to the results of the first quarter of 2022. At the meeting, the head of state noted that in the first quarter, Azerbaijan's GDP grew by 6.8 percent, the positive balance of foreign trade turnover over three months exceeded $5 billion, and during the year it was possible to reduce external debt by more than $600 million.
Deputy Director of the Russian School of Economics, Professor of the Azerbaijan Economic University Elshad Mammadov told Trend that thanks to the socially oriented policy of President Ilham Aliyev, Azerbaijan has demonstrated the stability of the national economy and achieved positive macroeconomic results.
"As a result of the socially oriented policy of the head of state, the stability of the domestic market of Azerbaijan has been preserved. Over the past 4 years, the state has implemented a number of effective social support packages for the population - one time payments, increases in pensions and the minimum wage. This made it possible to maintain purchasing power in the domestic market, business activity in the country," Mammadov said.
He added that thanks to the structures responsible for social policy in the country, the achievement of transparency, the effective fight against corruption, additional funds were redirected to social spending.
"We continue to see the effectiveness of President Ilham Aliyev's oil strategy. Azerbaijan continues to receive significant foreign exchange earnings, which is also a necessary contribution to the country's economy," he added.
At the same time, the economist believes that it is necessary to increase the volume of direct investment in the economy in order to implement import substitution.
"Azerbaijan has the main resource for further reduction of external debt - the internal potential for increasing investment. The state can offer its sovereign gold and foreign exchange reserves as a guarantor in exchange for the import of high technologies necessary for the development of the country," Mammadov added.
He also noted that today President Ilham Aliyev focuses on the development of the private sector.
"The institution of private investment in Azerbaijan is not yet fully operational. The banking sector needs to start generating investments, thanks to which the private sector will be able to start working effectively in the energy sector," the economist said.
According to him, energy is one of those areas in which it is necessary to actively involve the private sector, which will increase overall competitiveness, balance and proportionality of economic development in the country.
Mammadov added that a year and a half after the end of the second Karabakh war, Azerbaijan has done a titanic work in the liberated territories.
He stressed that thanks to President Ilham Aliyev, Karabakh will become an example of development for other regions of Azerbaijan.
At the same time, Mammadov notes that for more efficient development, including in the energy sector, it is necessary to import high technologies, but human resources are no less important.
In turn, expert economist Emin Garibli noted that the growth of Azerbaijan's macroeconomic indicators is the result of the country's government's successful policy.
"Despite the pandemic period, the economy of our country has achieved good results. Thus, in 2021, Azerbaijan's non-oil exports increased by more than 40 percent - up to 2.7 billion manats. Azerbaijan was also able to reduce the public debt," Garibli said.
The expert noted that despite the fact, that Azerbaijan is integrated into the world economy, the country continues to maintain its economic independence and stability.
"Today we are also witnessing the growth of social benefits and payments, pensions, which is the result of the policy being pursued. These factors can be considered the foundation of Azerbaijan's economic growth," Garibli stressed.
In addition, the expert noted that the government of the country, after the liberation from the Armenian occupation of the territories of Azerbaijan as a result of the second Karabakh war, immediately began restoration work.
"Investments in these regions, on the one hand, contribute to improved communications, accelerate the return of former refugees, and on the other hand, this has opened up new jobs for Azerbaijani specialists in sectors such as construction (roads and railways, infrastructure facilities)," Garibli said.
He also stressed that foreign investors continue to invest in the Azerbaijani economy.
"Thus, many companies are showing interest in the alternative energy industry. Today, the whole world is developing the green energy sector and, as I said earlier, Azerbaijan is improving not only quantitative growth indicators, but also qualitative ones. It is also important to note that the ongoing reforms meet the world requirements that exist in the global economy," the expert said.
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