Azerbaijan, Baku, April 6 / Trend N. Ismayilova /
The medium and long-term growth of Azerbaijan's private sector will depend on a stable macroeconomic environment and improving the regulatory base, the report of the Asian Development Bank (ADB) "Asia's Development Prospects 2011".
Developing the non-oil sector and diversifying the economy is the government's longer-term priority. Agriculture, manufacturing, telecommunications, and tourism all have potential for growth, the report said.
Agriculture is particularly crucial, as 40 percent of the population still lives in rural areas. Although government programs have attempted to support the sector, the rural population depends largely on remittances.
Further steps include rehabilitating and maintaining irrigation and other infrastructure, improving land-management practices, enhancing inputs as well as credit and agricultural services, and boosting incentives for private participation.
ADB recommends Azerbaiajn to simplify trade procedures to become a successful exporter.
In addition, the procedures and permits required for certain sectors or operations need to be streamlined, while governance and transparency should be improved to ensure that the
large public investment program provides its maximum potential benefit.