DEVELOPMENT ZONE

Azerbaijan has been a world beater in terms of the economic growth rate over the past few years, according to the reports of international organizations. A glance at the statistics is enough to show that the private sector has a leading role in this development. Of course, this is the demand of the market economy. The formation of the private sector depends directly on the overall development and stability of the country. We talk about this in conversation with Ali Evsen, owner of the Evsen Group of Companies and one of the first foreign investors in Azerbaijan.

- Ali bey, the Evsen Group of Companies is one of the major investors in the non-oil sector. In what sectors of the economy is your company active at present and are you planning to invest in other sectors?

- May I thank you and your magazine for giving the Azerbaijani public the opportunity to find out more about our company's work. 

I think that we need to look to the near future to answer your question. Founded on the basis of foreign capital, the Evsen Group of Companies has been operating in Azerbaijan since 1990. It began to work actively from the second half of 1993, as this was the time that economic and political stability began to be established in the republic. Foreign businessmen preferred short-term trading. But with the strengthening of stability in the country and the start of economic development the situation changed and a gradual shift began from everyday trade to long-term economic projects. In subsequent years the move was made from trade to production and today a start has been made in an area that requires long-term investment, vehicle production.

What is most important is that the production sectors that we have preferred are strategically important in our region and extremely necessary. Thanks to these capital investments, Azerbaijan will turn into an economic centre for the whole region. The production of refrigerators, air conditioners and televisions, which has a special place in the development of the non-oil sector of the republic, is unique in the South Caucasus. At present our main aim is to develop production still further by 2010. We will develop business, reinforce the material and technical base of our factories and tackle any shortcomings in order to create the right conditions to strengthen our position on the internal market. In future the Evsen Group of Companies intends to enter international markets.

- You are known in Azerbaijan as an innovative businessman. You were the pioneer in the country not only in organizing new transport services for passengers that meet modern demands, but also in such sectors as the manufacture of cars and domestic appliances. Has the capital invested in these sectors justified itself? Are you satisfied by the demand for these goods and services?

- It would not be right to assess the work of the Evsen Group of Companies in isolation from the overall economic development of Azerbaijan. The country's achievements must be assessed as a whole. The republic has achieved enormous success in a very short time. But it must not rest on its laurels - we have a great deal of work ahead of us and we are just at the beginning of the road.

- One of the sectors in which the Evsen Group of Companies is a leader is the provision of consumer credit. It is easy to acquire your goods on credit. What innovations can we expect in this sector?

- You have touched upon a very important question. The process of globalization is racing ahead throughout the world. Today it is possible to trade on equal terms with businessmen from America, Japan or Germany, without being even an hour behind. Trade links that have existed for centuries are entering a new stage. These worldwide changes have started to influence everyday trade. At the same time a downward trend in cash operations has emerged and the credit system has started to develop. Today, when they travel, people do not want to take with them a large sum in cash and try not to get involved in financial questions. They go to the banks and with a single flourish of the pen entrust them with much of their financial affairs. Some wages in Azerbaijan are still paid in cash, but the situation will change very soon and all the payments will be made through banks. This is a new process, a new stage. These are the latest steps towards globalization, a new convenient system for people.

On the other hand, people try to get the goods and conveniences that their neighbours have. The eternal question is, "Why shouldn't I have that too?" We have set up a new system to tackle these problems. Believe me, Turkey began to introduce a system of long-term consumer credit after Azerbaijan! The initial credit period of six to eight months was extended to 18 months. It is true that we are still leading the sector: we offer credit for domestic appliances for up to 30 months and for cars up to 10 years. Moreover, we began to give out consumer credit not through banks but directly to individuals. This did away with the need to gather a heap of documents and people can quietly acquire the necessary equipment and goods.

Finally, we faced the question of selling the goods produced at the Evsen Group of Companies' factories. The question could be tackled two ways: either give individuals and companies the right to represent us or sell the goods ourselves.

When you give status to a third party, you have to be prepared for all kinds of problems, as people concerned with their own profit come between the producer and the consumer. As a result the production company becomes dependent on go-betweens. Bearing all this in mind, we decided to sell our goods ourselves. Evsen Group has already created a sales system in 20 Azerbaijani districts.

- Since we have been talking about credits - according to our information Evsen Group is intending to provide banking services in Azerbaijan. When will this project come about?

- We are not thinking of entering the banking sector at present. We are entirely satisfied with the level of development of the banking system in Azerbaijan. However, I don't rule out this kind of project in future.

- Your group of companies plays a special role in implementing the State Programme for the Development of the Regions. How many people are employed in the group's enterprises in the regions and can their number be expected to increase in the near future?

- The State Programme for the Economic Development of the Regions, confirmed by Azerbaijani President Ilham Aliyev, really is a very necessary and useful initiative. This programme should be considered in two aspects: the economic and the social. It would be good to give more attention to the social aspect. The population build-up today in Baku is creating very many serious problems. Alongside investors from abroad residents of Azerbaijan's regions come to earn money in Baku. The capital is no longer able to meet the needs of all the people settling here.

As someone well informed about the situation in the country, Mr President made the right choice and started economic development projects not in Baku, but in the regions. This was done in order to reverse the flow of people from the regions into the capital and to provide them with employment in their localities. Of course, this problem cannot be solved in just one day. The main role in the programme belongs to those businessmen who really want to do something. We chose the town of Shemakha for capital investment and set up four factories there to produce cars, televisions, air conditioners, refrigerators and washing machines. This ancient town has today turned into a technologically developed industrial centre.

Our achievements are founded on the support of the Azerbaijani president and foreign firms recognized in their sectors. As the rate of development of the regions has increased, we have brought back to their homeland Azerbaijanis who had gone to work in Russia, Turkey and elsewhere. For example, in the factories in the regions we have provided work for people who have come from Baku and Moscow. In the near future in Shemakha alone the number of people working for the Evsen Group of Companies will exceed 6,000. This means providing a job for at least one person in every family.

- The Evsen Group of Companies is also well-known in Azerbaijan for its charity work and sponsorship. What are the criteria you prefer when choosing projects - protecting culture and the national heritage or the health of the next generation?

- Before starting any project we consider the social aspect alongside the economic factor. In any project we try to improve the standard of living of the people we employ. If you approach business exclusively from the position of profit, you will not be able to implement a single project. You have to understand the people living in the regions. As for charity, I would not like to concentrate attention on this as it might seem like self-promotion.