FIRST FOR STABILITY

For the fifth year running Azerbaijan is earning leading rankings among the countries of the Commonwealth of Independent States (CIS) in the global competitiveness ratings drawn up by the World Economic Forum. In the 2013-2014 report the republic numbers among the most competitive economies in the world, occupying 39th ranking out of 148 countries, improving its ranking by seven points over last year's figures. Moreover Azerbaijan was only 2nd to Estonia (32nd ranking) among the countries of Eastern Europe and the former Soviet republics. This is another sufficiently clear indicator for the country, which is well deserved, given the dynamics of its macro-economic growth figures over the last decade and its marked improvements in practically every field embraced by the rankings. The first five countries to top the ratings report were Switzerland (5.67 points), Singapore (5.61), Finland (5.54), Germany (5.51) and the USA (5.48). Chad (2.85), Guinea (2.91) and Burundi (2.92) had the worst ratings. As already mentioned, Azerbaijan again managed to attain a leading ranking for competitiveness among the CIS countries, overtaking Kazakhstan (50th ranking), Russia (64th), Georgia (72nd), Armenia (79th). Ukraine (84th) and so forth. It is moreover interesting that, besides Azerbaijan, among the CIS countries, only Kazakhstan, Russia, Georgia and Tajikistan managed to improve their rankings. In particular, Azerbaijan went up by 30 rankings, having started with a ranking of 69 in 2005; Kazakhstan and Russia both went up by 11 rankings. In other words, the republic also tops the rate at which it is improving its rankings. According to the head of the department of economic policy, analysis and forecasting at Azerbaijan's Ministry of Economic Development, Adalat Muradov, businessmen from 148 countries were polled in the process of drawing up the report. The document illustrates both the strong and weak points in the competitiveness of each country. Azerbaijan was among the first 20 countries in some additional indices. "We took top place in our annual rate of inflation; as regards overall national income as a percentage of gross domestic product (GDP) we occupied 10th place; with regard to the total foreign debt as percentage of GDP our ranking was 13 and with regard to state purchases of state-of-the-art technology we were 14th, A. Muradov added. It is noteworthy that Azerbaijan is among the first 10 (in 8th place) in its macro-economic stability rating, after improving its ranking by 10 points, which is a fairly impressive achievement. The country's markets operated more efficiently over the last year, especially the labour and goods markets. Azerbaijan occupies the 30th slot in the ranking for the effectiveness of its labour market, in which great flexibility was evident. For example, the country improved its figures for hiring and firing (8th place), which has been made possible thanks to improved job opportunities for civil servants who must now undergo an entry test. The index for the development of the financial market has risen by 10 rankings compared with last year thanks to the steady development of the banking sector during the economic crisis and the boosting of non-cash payments in the country. Sufficiently strong progress has been registered in the sphere of information technology. There has been a 54.8 per cent growth in the number of iphone users. According to World Economic Forum data, 33.3 people out of every 100 possesses an iphone. Azerbaijan is 50th out of the 148 countries in this index. As regards the development of landlines Azerbaijan in 67th in its ranking, four higher than last year. In the opinion of the head of the main tax policy and strategic studies directorate at the country's tax ministry, Akif Musaev, the positive changes in Azerbaijan's rankings in the World Economic Forum report are particularly noteworthy when viewed against the backdrop of many other countries' deteriorating indices, including some developed countries. He noted that this clearly demonstrates that financial stability is being maintained and the business environment in the country is improving. "This is very important from the point of view of attracting investment, particularly long-term investment. Usually in newly independent countries, which are going through a transitional period, investors prefer to make short-term investments. The improvement in the competitiveness ranking will seriously expand the opportunities for long-term investments," A. Musaev said. Besides, a positive trend in the development of various parts of the economy allows us to hope that investors will be even more interested in the non-oil sector, something which the government is aiming to promote in the next few years. A. Musaev said that in 2003 less than a quarter of the investments made in Azerbaijan were channelled into the non-oil sector, whereas at the moment that sector of the economy is attracting 75 per cent of the investments. "This is a direct outcome of Azerbaijan's improved international rankings," he thinks. Besides this, the boost in such prestigious rankings is also making a positive impact on the country's export image, is a kind of powerful "promotion" of our goods and services abroad. In short, the multiple effect of the progress in the World Economic Forum's rankings, will undoubtedly make itself felt in Azerbaijan's economy as a whole and in its individual industries.