Azerbaijan Investment Summit starts (UPDATE)
By Sara Rajabova and Nazrin Gadimova
Azerbaijan Investment Summit "2020 and Beyond, Accelerating Economic Development: a Look into the Future" started in Baku on March 12.
The summit has assembled an international audience of policy-makers, CEOs, investors and NGOs to discuss opportunities for Azerbaijan to accelerate its economic development.
The speakers praised the fast growing economy of Azerbaijan and its strong investment and trade positions. They also discussed Azerbaijan's readiness to diversify its economy.
Opening the event, Simon Wright, the energy and commodities correspondent for The Economist magazine, highlighted the latest achievements of Azerbaijan's economy and prospects for its further growth.
Addressing the event, President of Azerbaijan Export and Investment Promotion Foundation (AZPROMO) Rufat Mammadov said the private sector's development will ensure the future development of Azerbaijan's economy, adding that one of the most important factors in the sustainability of this development is its predictability.
"In this context, the Development Concept "Azerbaijan 2020: A Look into the Future", which designates the country's goals and objectives and ways of achieving them, plays a crucial role in the future economic development of the country," Mammadov said, noting that one of the main tasks is the diversification of national economy.
Speaking about the Baku-Tbilisi-Ceyhan oil pipeline, Baku-Tbilisi-Erzurum gas pipeline, and the international projects such as TANAP, TAP carried out by Azerbaijan in recent years, Mammadov highlighted the importance of the Baku-Tbilisi-Kars railway line realized at the crossroads of Asia and Europe at Azerbaijan's initiative.
It was noted that the country's macroeconomic situation has improved as a result of its successful economic policy, and the international organizations have highlighted this success in their reports.
Touching upon the increase in country's credit and investment rating, Mammadov said trade relations with 140 countries has been established, and noted that the establishment of transport infrastructures and logistics have played an important role in this regard.
The summit continues its work with the following panels: The global trends which will impact Azerbaijan's economic growth and outlining risk scenarios which investors should prepare for; Azerbaijan investment prospects, which sectors promise the biggest returns?' and Agriculture, tourism, infrastructure, ICT...we will reveal where money is to be made; How to run a business in today's Azerbaijan, via first-hand testimony from the country's most successful investors; What do they know now that they wished they'd known before?; What legislative steps will be taken to improve market access and competitiveness?
Export in focus of development strategy
Nargiz Nasrullayeva-Muduroglu, Executive Director of Amcham Azerbaijan, speaking at the panel "Creating a prosperous, mixed economy - lessons in economic diversification" said government needs to simplify the issuance of business visas and to continue reforming the customs system, as well as encouragement of foreign companies on attraction of labor recourses to increase Azerbaijan's attractiveness for foreign investors.
Answering a question about which public spheres of the economy are mostly needed to be developed for its diversification, Head of the American Commerce Chamber in Azerbaijan mentioned informational technology, transportation, agriculture, and tourism. All these areas, according to her, have a great potential.
Addressing the event, Executive Director of Azerbaijan's State Oil Fund (SOFAZ) Shahmar Movsumov said Azerbaijan is a small country with a limited domestic market, and the export-oriented model of economy is the most appropriate for it.
He said at the same time the country provides good opportunities for foreign investors, which is possible thanks to the preservation of economic stability amid global crises, improvement of the business environment and favorable geographical position.
Movsumov added that Azerbaijan's issue of the sovereign Eurobonds still more opens country's market to foreign investments, emphasizing success of the placement of Eurobonds.
"The day before Azerbaijan placed its debut Eurobond issue worth a total of $1.25 billion with demand of $4 billion," he said. "Bonds were issued for a period of 10 years with a yield of five percent per annum. If to take into account that two years ago the share of oil sector in Azerbaijan's GDP was 60 percent, now it has dropped to 40 percent. State helps the process of diversification, increasing government spending on infrastructure projects."
Chairman of the Executive Board of Pasha Bank Farid Akhundov, in turn, drew attention to the fact that 80 percent of Azerbaijan's GDP is generated by the private sector today, which is a great achievement, since 20 years ago there was no private property as such.
Education: possibility of involving leading foreign university specialists
Azerbaijan is studying various models of involving education specialists from leading foreign universities, Azerbaijani Education Minister, Mikayil Jabbarov said at a panel:
skills and education; developing Azerbaijan's talent pipeline.
"We are thinking about systematic changes and study the most effective model," he said, noting that one of the priorities for Azerbaijan is the development of vocational training for which there is a considerable demand.
There is a need to change the system of financing schools, Azerbaijan's Deputy Foreign Minister, Rector of ADA University Hafiz Pashayev said, speaking at the panel.
Rector said that mechanisms that benefit universities should be developed in this direction.
Speaking about the role of the education system in the country's economy, Pashayev noted that ADA practices the guiding experience in the world, which also has its advantages.
"Moreover, we are trying to attract talented employees, who left the country 15-20 years to work at the university. Appropriate measures have been taken in this direction," he added.