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Weekly economic review

Analysis Materials 19 February 2008 12:02 (UTC +04:00)

Last week, dedicated to the last four years of the implementation of the state program on socio-economic development of regions of Azerbaijan for 2003- 2008, a conference took place in Gulustan Palace in Baku. Despite that the program has to work for one more year, according to the Azerbaijani President, Ilham Aliyev, the key parameters of the program have been implemented practically at 98%. It means that the optimistic expectations with the State Program justified themselves. Due to it, a new State Regional Social-Economic Development Program is in charge of being devised.

The first State Program envisaged to settle the problem with the level of infrastructure, delays and breaks in the activity of the regional enterprises and mass flow of people from regions to the capital. To resolve these problems, the State Program implied to strengthen the second stage of the agrarian reforms, create favorable conditions to attract investors, stimulate creation of new jobs, improve level of communal services. All these targets were directed towards removing unemployment and poverty in the Country.

According to the official data, within the framework of the Program, 610,754 new jobs have been created, including 432,000 permanent jobs. Some 82% of the new jobs fell on regions, being followed by a cut in the poverty ratio in the country from 49% to16% over the past four years.

"However, we should not be satisfied with it," the President said. The development of regions will increase direct State investments which will amount to $3.5bln in 2008. Significant part of these funds will be directed towards infrastructure projects. The Government will provide privilege credits to entrepreneurs.

Of course, based on the statistics of the last several years in Azerbaijan, it is possible to surely speak of rapid development of the Country, particularly regions. However, the difference still remains between the regions and cities, and it is a strong interface. The creators of the new state program on socio-economic development of regions of Azerbaijan should be asked such questions: why do the old enterprises stop their activities or why are the foreign investors afraid of allocating funds for Azerbaijan's regions, why do not the tax privileges bring to the improvement of the financial situation of the farmers, why do population of regions come to capital for jobs?

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