Azerbaijan, Baku, Oct. 2 / Trend N.Ismayilova /
Azerbaijan has successfully attracted major investments in oil and gas sector by creating favorable conditions and operations for both local and foreign investors, and the government needs to recreate this success to attract investment in non-oil sector of the economy. This was stated in the preliminary version of the strategy on Azerbaijan by the European Bank for Reconstruction and Development (EBRD), which covers 2011-2013.
"A closer integration into the global economy will allow Azerbaijan to improve productivity and competitiveness. Joining the WTO will support economic diversification through the establishment of stable and predictable framework for importers and exporters, resist protectionist reflexes, reflecting a desire to deepen trade in goods and services outside the oil sector," the strategy says.
The EBRD encourages Azerbaijan to lay foundations for sustainable growth and employment to reduce the country's dependence on oil and gas sector. The government accented most attention to economic diversification in its development strategies. To achieve this goal, Azerbaijan must rely on its achievements and overcome the remaining challenges of transition period.
"Azerbaijan will need to create a business environment, accelerate the reforms in customs and tax spheres, further integrate into the global economy, deepen financial intermediation and promote reforms to improve public infrastructure," the strategy says.
The indicator for the transition to a market economy is 2.63 for Azerbaijan. The bank estimates that the transition problems remain in most sectors, except agriculture, natural resource sector and transport.
In particular, Azerbaijan should carry out more complex and time-consuming second-generation reforms such as privatization of large enterprises, construction of market institutions and reforms in the infrastructure sector.
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