BAKU, Azerbaijan, April 9. Private sector participation in trade and digital technologies can back Azerbaijan's green agenda by raising the efficiency of the Middle Corridor, Trend reports via the ADB.
According to the bank, Azerbaijan's position as a strategic transport hub creates opportunities for the private sector.
The ADB noted that there are several policy challenges for the expansion of the private sector:
"Reform of state-owned enterprises, strengthening public-private partnerships, investment in human capital and investments in green infrastructure are important. State-owned enterprises, especially in the energy sector, play a large role, which hinders the development of the private sector.
Corporatization of state-owned enterprises, sovereign-free access to financial resources and the introduction of ESG (environmental, social and governance) standards will increase their competitiveness and sustainability. It is important for financial institutions to provide innovative financial instruments and create innovation ecosystems to support private firms," the bank said.
ADB experts emphasized that public-private partnership projects can be a tool for increasing private sector participation. Although the new public-private partnership law adopted in 2022 is still in its early stages, this area can be developed by identifying potential projects and developing financial structures.
"Increasing women's employment and entrepreneurship can also support the private sector. Although women play a major role in agriculture, only 24 percent are engaged in entrepreneurship. Promoting gender equality in this area and providing women with resources and training opportunities can contribute to economic growth," the bank added.
The Middle Corridor is a transport and trade route that passes through several countries in the region and connects Asia with Europe. It serves as an alternative to the traditional North and South Corridors.
The route starts in China and passes through Central Asian countries such as Kazakhstan, Uzbekistan, and Turkmenistan. It then crosses the Caspian Sea, Azerbaijan, Georgia, and Türkiye before reaching Europe. The Middle Corridor offers a land route that bypasses longer sea routes, connecting the eastern parts of Asia, including China, with Europe.
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