BAKU, Azerbaijan, Feb.18. Azerbaijan has strengthened fiscal discipline in resource governance, Trend reports via the European Bank for Reconstruction and Development (EBRD).
“Resource governance demonstrates mixed outcomes. Some countries, such as Azerbaijan, through fiscal rules governing its State Oil Fund, have strengthened transparency and fiscal discipline. The southern and eastern Mediterranean (SEMED), in contrast, performs poorly on mining governance, with regression recorded between 2016 and 2024,” reads the proposed Economic Governance Strategy, 2026-2030.
Overall, the report reveals that resource-rich economies that adopted clear fiscal and regulatory frameworks have achieved greater stability and accountability, while those without reforms continue to face high risks of mismanagement and rentseeking.
This inaugural Economic Governance Strategy sets the objective of deepening the Bank’s impact by focusing on longterm, systemic change. This will foster competitive business environments that enable the private sector’s growth and innovation while mobilising domestic and foreign capital. To this end, the Bank will work towards increasing the participation of private firms in state-dominated sectors, assist in deploying the Bank’s capital to foster the formation and growth of companies, and improve the transparency and accountability of state-owned enterprises (SOEs) and financial institutions.