Diversification problems of Azerbaijani economy: obstacles and solutions

Ingilab Ahmadov

Summary: In this article Ingilab Ahmadov analyzes the conditions for economic diversification and obstacles in the way of it. He identifies that the strict monetary and credit policies, are hampering the success of economic diversification. The work emphasises that political condition are of an utmost importance in successful outcome of diversification policies. The environment in the country is enabling for diversification due to the revamped infrastructure, the drastic devaluation of the manat, the dramatic reduction of the average monthly wages as expressed in dollars, the reappearance of cheap workforce, and the presence of such a regional market as Russia. The establishment of ownership rights in the country and a favourable business environment are cornerstone for progress in economic diversification.

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Human Capital Development in Azerbaijan

Special Editor: Farid Guliyev, Research Associate at Eurasia Extractive Industries Knowledge Hub


The Oil Boom and Human Capital Development in Azerbaijan:Turning Black Gold into Human Gold (Surayya Mammadova)

The Quality of Education in Azerbaijan: Problems and Prospects (Farid Guliyev)

Natural Resources and the Gender Gap in Azerbaijan (Lucy Wallwork)

The Contribution of Foreign Oil Companies to Human Capital Development in Azerbaijan: The Case of BP’s CSR Program (Nazaket Azimli)

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Tackling the Resource Curse: The role of democracy in achieving sustainable development in resource-rich countries

Ahmadov A. and Guliyev F. IDEA Discussion Paper (2016)

Summary: A number of studies in the academic and policy literature suggest that resource-rich countries with democratic political systems are more likely than their resource-rich counterparts with less democratic systems to enjoy prudential governance of natural resources, which, in turn, makes inclusive sustainable development more likely.

This report focuses on the potential roles of stakeholders and institutions in the governance of natural resources. It aims to pinpoint specific mechanisms that are pivotal for ensuring prudential management. It draws on a multitude of examples and includes six case studies that illustrate the interaction between democracy, natural resources and development outcomes.

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Low Oil Prices: Economic and Social Implications for Azerbaijan

Special Editors: Eurasia Extractive Industries Knowledge Hub (Khazar University) and Jeronim Perović Caucasus Analytical Digest No. 83 (2016)

Summary: Azerbaijan’s New Macroeconomic Reality: How to Adapt to Low Oil Prices (Ingilab Ahmadov)

Oil Price Shocks and Monetary Policy in Azerbaijan: Challenges and Opportunities (Jeyhun Mammadov)

Lower Oil Revenues, Higher Public Debt: The Fiscal Policy Implications of Low Oil Prices in Azerbaijan (Kenan Aslanli) 
Azerbaijan: Low Oil Prices and their Social Impact (Farid Guliyev)

Statistics Oil Production and State Finances

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Governance, transparency and accountability in Sovereign Wealth Funds: Remarks on the assessment, rankings and benchmarks to date in Sovereign Wealth Funds: New Challenges for the Caspian Countries

Tsani, S., Ahmadov I., and Aslanli K. Public Finance Monitoring Centre, Azerbaijan and Revenue Watch Institute, USA (2011).

Summary: Over the past decade, the boom in commodity prices and the growth of foreign exchange reserves have made Sovereign Wealth Funds (SWF) major forces in the global economy, with the largest funds managing well over $4 trillion in assets. Their influence has had far-reaching consequences for both host and sponsoring countries. SWFs can finance development projects and shield economies from volatility. But they can also hamper the effectiveness of macroeconomic policies and create opportunities for corruption. This report from Azerbaijans Public Finance Monitoring Center, Khazar University and RWI presents a critical analysis of resource-based SWFs in three Caspian countries: Azerbaijan, Kazakhstan and Russia. While SWFs enabled them to weather the global financial crisis, the funds investment choices have failed to promote long-term development at home, highlighting the need for transparency and accountability as well as new methods to assess SWF performance.

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Film about Khazar University