New Rules of Game should be Adopted: Interview with WB Acting Executive Director
Budapest, Hungary, 29 October / Trend corr. S.Aliyev / Interview with Michal Tomasz Krupinski, acting executive director of the World Bank for Azerbaijan, Kyrgyzstan, Poland, Serbia, Switzerland, Tajikistan, Turkmenistan and Uzbekistan.
Question: What is your estimation of the influence of the international financial crisis on Azerbaijani economy?
Answer: The financial crisis comes as the third within last few years. The first crisis is the crisis with fluctuation of energy resources prices. As you know, prices of energy resources sharply rose and then sharply dropped. At first, they rose by 400% (by 100% for the last year), while recently they have downfallen. This fact is unpleasant both for energy export countries and energy import countries. Therefore, it is necessary to adopt new rules of game to take control over this process.
The second crisis is the crisis of prices for consumer goods. Rise of food price has been rather considerable - 10% a year in average over the past few years.
The crisis at a real estate market considerably damaged economy. I am unaware of the situation in Azerbaijan, whilst my country - Poland - began experiencing the birth of crisis. It is interesting to see in what way this recession will behave and influence on other countries, including Azerbaijan. As to me, Azerbaijan will stand this crisis better than other countries.
Lately, Azerbaijan has taken a leading place on the economic growth amongst many other countries. In accordance with Doing Business-2007 report, Azerbaijan ranks first in terms of holding economic reforms.
Question: Will the world economy crisis influence on these processes?
Answer: I want to say that everybody in Washington, where the WB Headquarters is located, speaks about the first place, which Azerbaijan took in the report of Doing Business-2007, and successes of reforms in your country. It is necessary to do every effort to maintain this growth and this favorable climate for investors, because this fact attracts the whole world to Azerbaijan and other countries can pay attention how it s necessary to act to during the crisis.
Question: Are there any plan to raise financing countries to cover consequences of the world crisis?
Answer: As to countries, which have undergone the crisis, the International Monetary Fund assists them. The WB has developed multi-billion funds to support the poorest countries. At present you are witnessing fall in the loan market and the WB will take its utmost to revitalize a loan market and banking sector a little bit.
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