CONTINUING THE INITIATED

The road maps for the development of national economy and its individual sectors in Azerbaijan will determine the direction of economic policy in the medium and long terms. Therefore, regional projects play an active role in the implementation of the state program of socio-economic development of regions for 2014-2018 years.

President Ilham Aliyev gave new instructions on accelerating the implementation of the paragraphs of the document at the conference dedicated to the results of the third year of implementation of the state program.

Develop infrastructure and business

As the president noted, the performance of state programs of socio-economic development of regions changed their appearance. "The objective of these programs is to solve all the existing concerns and social problems. Our programs are very specific”, said the President.

He recalled that the goal of the first phase of the program was the implementation of infrastructure projects, which have been completed almost in full. Thus, the national power grid has doubled in the last fifteen years, the level of gasification increased from 51% to 92%, and this year this figure should increase by another 2%. About 11,000 km of roads have been constructed since 2004, mostly in the countryside. In addition, a huge work has been done to improve water supply, irrigation, and irrigation canals. These factors set the stage for future plans for the development of various sectors in the region such as agriculture, tourism, industrial plants. By the way, the latter will become even greater, given the creation and actively development of industrial parks in Sumgayit, Mingachevir, Neftchala, Masalli, and Agstafa. According to the Minister of Economy, Shahin Mustafayev, in total 147 industrial facilities were opened within the scope of works implemented in the regions. The construction of many other facilities is ongoing. All of these works help solve the problem of employment in the provinces.

The minister recalled that in general, ₼4 billion were allocated for the funding of regional development activities. Last year, another ₼261 million were allocated to implement 67 individual orders and decrees of the president. In addition, 2500 businesses received ₼190 million through the National Fund for Entrepreneurship, which contributed to the creation of more than 8,100 additional jobs. 74% of these loans are for regional projects. Starting from this year, the National Fund will loan funds (total foreseen ₼150 million) not from the state budget from the returned loans, which is a significant achievement according to Mr. President, including the entire system of financial support of the business. "Since 2004, about ₼2 billion in credits have been granted to national entrepreneurs on concessional terms. These loans support the development of the national economy substantially. Over the years, the factors such as security, stability, a great social atmosphere, state and material support of business formed a national entrepreneurial class”, said the president.

He also added that 42,000 public jobs will open in 2017 and be related to the repair and maintenance work on the landscaping, which also helps to eliminate the problem of unemployment in the regions.

Reducing the external component of the national economy

Of course, the basis for the economic development of the regions is the agricultural sector. It is noteworthy that according to statistics, the volume of exports in 2016 grew by 20.7% in agriculture ($426 million). Such an increase was recorded in almost all segments.

According to Shahin Mustafayev, 32 farms based on modern irrigation systems and the application of innovative technologies have been created built on 44,000 ha in 20 districts by 22 businesses in recent years. Also, the work on the creation of agro-parks is ongoing, particularly in Shamkir and Yalama regions.

According to Mustafayev, as a result of the work done in recent years the self more than 60% of basic food and non-food products has reached 100%, and in some even surpassed its products for other products, too, there is the growth of production volumes. "In the following years, through the establishment of modern enterprises, agro-parks, large farming, intensive gardening and greenhouses in industrial parks and zones to reduce dependence on imports, increase the level of self-sufficiency and export potential of the country", - Mustafayev said.

As far as the self-sufficiency is concerned, President Ilham Aliyev paid special attention to this issue like the last conference on the state program on development of regions and this year.

So, Azerbaijan is almost completely self-sufficient in beef and lamb, and imported component in the manufacture of these products is very low.

The situation is much worse with eggs production: although the self-sufficiency reaches 99%, however, the import component is 65%, which is associated with the procurement of fodder and medicines. Also, a large part of imported materials used in the production of vegetable oil (80%) ensures a self-sufficiency level of 48% only. As pointed out by the president, the benefits of vegetable oil production in Azerbaijan are only in the creation of additional jobs. Therefore, it is not correct to call it a local production. The things are slightly better butter production, where the self-sufficiency - external component ratio is 76% and 10%, respectively.

A significant share of external component includes packaging materials, and the establishment of this production would help reduce this figure. However, oddly enough, it is still business owners do not pay due attention to this profitable and necessary in the production of almost all commodity groups sphere. President Aliyev pointed out, it's time to do business seriously with this issue and they can NFPP in this case to provide the necessary financial assistance.

With regard to self-sufficiency in wheat, there is a good rate - 53% with a 20 percent external component, but it is, of course, far from the desired numbers. Much hope in correcting the situation lies with the new farms.

Here, by the way, I would like to add that much better picture of the self-sustainment consists in the production of building materials, but there is some concern about the decline in the volume of construction in the country. However, President Aliyev said that this issue will soon be resolved at the expense of major new projects initiated by both the state and the private sector.

Going back to agriculture, the president noted that the volume of exports in the agricultural sector is really possible to double. This will complement the influx of currency into the country, and as a result ensure stability of national currency and reduce dependence on oil revenues.

The latter is extremely important in view of the onset of post-oil period in Azerbaijan. "The government agencies no longer have to rely on oil production. Although this does not mean that the oil era ended. No, it will serve our people for years to come. Within two years, the Azerbaijani gas will access the world market and we will expand our exports coverage. This factor is always present, and it will always help us. But we need to conduct our work despite the presence of this factor", stressed the President.

Living for the people

No doubt that the policy of sustainable regional development is the foundation of economic stability in Azerbaijan, given that the oil component of government revenues has already begun a downward trend. However, as pointed out at the meeting by President Ilham Aliyev, Azerbaijan is one of countries that use oil very rationally and intelligently. "In the late 1990s - early 2000s, some analysts pointed that oil would not bring happiness to Azerbaijan but problems. However, we were able to maximize the use of it is our natural wealth, we have strengthened the country, created a strong state, and continue living as an independent country for the last 25 years", said the president.

However, the basis of any policy - human well-being, as well as the head of state said repeatedly. That is why in the regions also pays great attention to social projects. In particular, it Mingachevir and Yevlakh have been chosen to implement a pilot for compulsory health insurance program. 2017 should be an important for this area, and if the results are positive, the program gradually cover all the other towns and districts.

But the purpose of the state - providing not only material well-being of people. Bureaucratic delays and injustice on the part of officials, braking business initiatives by local executive authorities - is negative, generating a fair discontent.

"Officials have to live for the people, not vice versa. They are servants of the people, they should help the citizens, not to exceed its powers. You do not need to engage in bribery, robbery. But, unfortunately, some people still do not make proper conclusions. They are punished and will be punished", warned President Aliyev.

As he said, activity centers "ASAN Service" has shown that many of the negative aspects can be eliminated. So, you can fight with them everywhere. There are no complaints on the work of these centers, the approval rate - 98%, the number of applications has reached 13 million In view of all this, the creation of centers in the regions will be continued, and this year they will be opened in Guba and Mingachevir; and in Imishli and Sheki in 2018.

In short, only by combining all of the components of economic and social development of the regions, it is possible to provide an extended welfare and well-being of its residents. And they, in turn, should participate more actively in the transition of the economy to new, non-oil rails.