Business Materials 4 August 2005 17:12 (UTC +04:00)

For the further development of economy of Azerbaijan elimination of a number of problems is needed, this was stated by the UNO Development Program (UNDP) resident-coordinator Marco Barsotti in his speech at the conference, dedicated to the support of the national entrepreneurship, Trend reports.

According to him, the industry of Azerbaijan is at a good level, the country can anticipate large oil revenues in the future, which, as the life shows, will exceed the forecast indicator of the Azerbaijan’s budget for $35 per barrel.

However, Barsotti marked a number of problems in the Azerbaijan’s economy, the most serious of which is the danger of the “Dutch syndrome”.
He also noted, it will be difficult to cope with the inflation growth without development of the non-oil sector, which, coupled with the poverty level index will not allow the country’ economy to develop. Barsotti underlined, one more problem in Azerbaijan is monopolism.

Barsotti recommended the government to speed up privatizations tempos and noted the major task for Azerbaijan now must be human capital development.

The country needs the infrastructure development, as without railway, air and other types of communication and infrastructure the country’s economy cannot develop.

Barsotti pointed out, the country needs reforming of the banking sector, as the banking system renders services not in line with the world standards. For the entrepreneurs of Azerbaijan getting loans in the amount of over $3 million from the local bank is problematic. Barsotti recommended the Government to activate the state banks privatization process.

The UNDP resident- coordinator also recommended the government to accelerate the tempos for WTO entry, otherwise the country will have problems with the export of its products and underlined, the county needs diversification of economy using the revenues of the oil sector in the non-oil one.