High quality of output is key component of success strategy

Politics Materials 24 April 2007 12:05 (UTC +04:00)

The quality has become one of the most popular mottos at the end of the 290th century and beginning of the 21st century. Globalization of economy and development of trade and production areas increase the consumer requirements set for the quality of products.

Unfortunately, the third part of goods at the Azerbaijani market does not meet the necessary quality and safety standards. As a result of researches done by the Ministry of Economic Development in 2006, 342 of 1,379 goods represented at the market fell short of the quality and safety standards. This figure is quite high for Azerbaijan. The major problems in the local market are the relevance to standards on package, preservation and sale of goods, non-observance of sanitary-hygiene norms. The proems are also linked with sale of fruits and vegetables, meat, milk and fish. There are frequent cases with the repeated use of plastic packages.

There is also an acute problem with the importation of poor quality products and this problem will remain actual until the shop-owners, which receive the import goods, require certificate from the supplier.

The certification is widely spread throughout the world. The certification standards have been accepted by all world countries and they confirm high quality of goods and services by a company. The document acts as a guarantee for investment companies in rendering a weighty support to an enterprise in development of its capacity and improvement of production processes. Though the certificate differs from a license and other similar documents, it is just a formality in Azerbaijan.

Taking into consideration these problems Azerbaijan which announced on its integration to international organizations, including the World Trade organization, where it has been holding an observer status since 1997, is keen on developing the quality of local production allocated for local market and creating competitive production. One of the major requirements set by the WTO is the quality of the output. At present Azerbaijan ha snot fulfilled all procedures for entrance to the WTO, but passed only 7-8 stages out of 13.

Entering the WTO Azerbaijan can resolve many problems evolving while entrance of its products to the to the world market. On the eve of the process, as well as rapid growth rate of the country, establishment of production, the companies are registering their trade brands. However, some disputable milestones appear in the procedures on registration of companies. Less people in Azerbaijan are aware of with bases of protection of intellectual property. Only 10 people hold patents in the country with a rapidly developing rate. If Azerbaijan succeeds to become a WTO member in the shortly, all these major standards of international business will be applied more successfully.

The country is reorganizing the field of certification of the quality of output of companies which has been issued national certificates. The Director General of the Agency for Standardization, Metrology and Patent of Azerbaijan, Ramiz Hasanov, considers as use of the trade mark AZS by all companies as wrong. AZS issued for companies which meets the necessary requirements. The certificates of almost 150 companies were ceased after the conduct of necessary researches. So far, AZS has stopped the activities, also did not issue any certificate for domestic production.

As to non-recognition of Azerbaijani certificate abroad, definite work is carried out to boost interests for export by local producers. The private enterprises are to pass as minimum 4-5 instances to export their goods. However, after the certification the export goods are sometimes returned back. For instance, the Agency has once experience the similar situation. Nuts exported to Spain were returned back due to their poor quality and maintenance of toxic substances. It was explained with the irrelevant of transportation and preservation terms to necessary standards. Therefore, there is necessity for simplifying export and simultaneously, strengthening control over production process.

At present Azerbaijan has 38,455 standards, as well as technical requirements. Moreover, up to 100 enterprises active in the oil sector, trade and banking, construction and food industry have passed certification in accordance with ISO standards. It should be increased. With respect it is necessary to establish education centers. Azerbaijan has a definite team for training of specialists, while there are new spheres which requires the training specialists abroad.

The enterprises function on rigid field norms and quality standards throughout the world. It ensures low level of violations of the technological process and requirements on the products, and the other hand promotes high living standard. As a result, the consumer confidence in producers increases. The necessity for transition of local producers to international standards, protection of their trade brands and ability of attracting investments from foreign fiscal markets, which assume special at the present time. The country should consolidate the relevance of its products to quality standards.

Thus, one of the contemporary requirements is the integration of the national system into the European system, increase of the rivalry among local producers. It particularly concerns the spheres that almost undeveloped in Azerbaijan - they are in need of support.