Azerbaijan Economic Research Centre Propose to Give Part of Address Allowances in a Natural Form

Business Materials 14 December 2006 18:31 (UTC +04:00)

The Centre for Economic Research under the financial support of International Organization OXFAM has conducted a research on the efficiency of a programme on granting address social allowance by the Azerbaijan Labour and Population Social Protection Ministry, and established the fact that it is necessary to increase the volume of state social allowance to poor strata of the population and strengthen the social control over granting the allowances.

Rovshan Aghayev, Chief of the Monitoring Group of the Economic Research Centre, told Trend that according to the calculations by WB (World Bank), even under the most advanced calculation method, only 59-80 percent of the poor will receive the address social allowance. Some countries have this indicator only at the level of 10-15%. That means that the Azerbaijani address allowance distributing system cannot provide all the poor population of the country with it.

The Economic Research Centre thinks that the state should view alternatives on partial granting the allowances in a natural form to avoid corruption. The American experience in this field where the poor obtain a possibility to be cured free of charge at the expense of the state might be applied as well. The proposals put forward by the Centre have been discussed in the Health, Labour and Population Social Protection Ministries, as well as in the pension Fund of the Country. Experts of the Centre compared the Azerbaijan experience in granting allowances with the corresponding systems in other countries. It turned to be that Azerbaijan became the address allowance later than Armenia, Russia, and Belarus. The most inefficient system on granting the allowances among CIS countries is applied in Byelorussia, and the most advanced ways of giving allowances to the poor is in Kazakhstan.