WB, Azerbaijan mull ways of long-term economic development

Business Materials 25 June 2009 17:26 (UTC +04:00)

Azerbaijan, Baku, June 25 / Trend , I.Khalilova/

The World Bank jointly with the Azerbaijani government is going to hold a joint workshop at a high level to discuss Azerbaijan's place in the world economy after the global financial crisis and in long-term perspective, World Bank Country Manager for Azerbaijan Gregory Jedrzejczak said on June 25.

"We want to invite the Nobel laureates, former PMs and other officials for it. Thanks to support of the Azerbaijani government we will probably conducts such a seminar this October," Jedrzeiczak said.

Jedrzeiczak said they are currently discussing with the Azerbaijani government medium-term and long-term perspectives and assessment of steps of way out from the global crisis.  

"Research will be cover a ten-year perspective and recommendations which will be reflected in the memorandum will be presented on its results," the WB head said.

He said that a positive factor for Azerbaijan is that the government determined with the prospects for economic development, namely the country's position focuses on using the existing resources.

"Establishment of multiple transport routes increased Azerbaijan's opportunities to enter the world markets. However, the establishment of State Oil Fund of Azerbaijan ensured transparency of use of oil revenues," Jedrzeiczak said.

As a good practice in the world system, the head of the representation also called achievement of short term growth in GDP per capita from $95 up to $4,000. All of these activities, including cut in poverty, implementation of major infrastructure projects have contributed to development of the middle class.

"In the current situation when the world is experiencing liquidity problems, Azerbaijan has enough resources by expenses of income from implementations of oil and gas projects, but, as it is well known, hydrocarbon resources are non-renewal and they will decrease in 10-15 years, according to the current estimates. To continue sustainable development of economy, Azerbaijan must take strategic steps to replace the country's oil dependence with relevant sectors, Jedrzeiczak said.

Jedrzeiczak said there are four main components to ensure the stable development of Azerbaijan's economy: the economic and social development requires establishment of a mechanism for macroeconomic management, establishment of appropriate infrastructure (through domestic and foreign investment), as well as a successful diversification of the economy needs the appropriate human capital and creating business climate (it facilitates the inflow of foreign investment).

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