BAKU, Azerbaijan, Jan. 15
Trend:
Azerbaijan’s social welfare indicators are ahead of those in other CIS countries, Trend reports referring to Azerbaijan's Center for Analysis of Economic Reforms and Communications.
“Human capital can be considered the main driving force of both the innovation world and the economy at that time of accelerating technological development,” analyst of the Center for Analysis of Economic Reforms and Communications Masuma Talibova said. “A socially prosperous, literate and developing population is an indispensable resource for the development of each country. It is no coincidence that social issues are priority in the economic policy of the head of state. Mass social reforms carried out in 2019 are also a vivid example of this.”
“The social package implemented last year and covering 4.2 million people with a financial burden of 3.9 billion manat ($2.2 billion) is an important measure to improve the financial situation of citizens,” noted the analyst. “The package of social reforms includes such important reforms as raising the minimum salary, minimum pension, scholarships and allowances, as well as the return and restructuring of problem and overdue loans.”
“The minimum salary almost doubled and reached 250 manat ($147),” Talibova added. “Azerbaijan ranks second among the CIS countries in terms of the minimum salary, taking into account purchasing power parity. Compared to neighboring countries, this figure is 2.1 times higher than in Armenia, 1.6 times higher than in Kazakhstan, 1.4 times higher than in Georgia and Russia.”
“This, in turn, indicates a high purchasing power of an Azerbaijani citizen, as well as a higher social well-being compared to other countries,” said the analyst. “The growth of the minimum salary led to an increase in the average salary. In purchasing power parity, Azerbaijan ranks second in the CIS in terms of the average salary as well. For comparison, Armenia ranks ninth.”
Talibova noted that another reform carried out in the direction of improving the social welfare of the Azerbaijani population is associated with an increase in pensions. This reform in 2019 raised Azerbaijan to first place among the CIS countries with an increase in labor pensions by 72 percent, the analyst added.
“This figure is 3.7 times higher than the minimum pension in Armenia, twice higher than in Georgia, 1.3 times higher than in Russia, 1.1 times higher than in Kazakhstan,” said Talibova. “Azerbaijan ranks second in the CIS in terms of average pension and Armenia ranks tenth.”
