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Azerbaijan reduces dependence on oil

The economic model of Azerbaijan continues to demonstrate its success against the background of negative processes occurring in the world, when many countries faced the threat of a new crisis.

Several years ago, Azerbaijani President Ilham Aliyev set a target to reduce the economy’s dependence on oil revenues. As a result, Azerbaijan was able to mitigate the impact of falling oil prices on the economy.

However, these measures should be continued for the sustainable development of Azerbaijan’s economy.

It is no coincidence that the head of state noted the importance of issues of increasing the productivity and growth of export potential at the last meeting of the Cabinet of Ministers dedicated to the results of socio-economic development in 2014 and the upcoming challenges.

One of the effective methods to increase productivity is to replace the obsolete infrastructure with the one with high technology. As an example, one can mention the new large farms created today, the productivity of which will be twice the average index in the country – 55 quintals per hectare.

The first large-scale private pilot grain farming was established in 2013 on the territory of Agdjabadi and Beylagan districts of Azerbaijan on the areas of 3,300 hectares and 1,500, respectively.

At present, work is underway on the creation of large farms in Hajigabul, Jalilabad and Khachmaz districts of Azerbaijan.

Currently, high technology production has become a necessity, and it would be impossible to ensure the reduction of economic dependence on oil revenues and increase of productivity without it.

It is possible to create such technologies only with relevant scientific foundation based on years of research. With this regard, there can be need to attract these technologies and highly skilled workforce from abroad. By taking such measures, one can speed up the process of switching to the high-tech manufacturing.

Moreover, high-tech enterprises will provide Azerbaijan with export-oriented products and reduce the dependence of economy on the oil factor.

A solid basis has been formed in Azerbaijan in recent years to create modern infrastructure. The policy of industrialization pursued in the country, as well as the measures to develop the ICT sphere, create industrial parks, high-tech parks, has created conditions for the rapid development of the non-oil sector.

Over 230 industrial enterprises were created in Azerbaijan in 2014. In particular, 39 large production, processing and infrastructure enterprises were commissioned in 2014 with concessional loans. It is expected to commission 81 more enterprises in 2015.

Moreover, various measures were taken in the country in 2014 to develop the industry; the opportunities of traditional industrial centers of the country – Sumgayit, Ganja, Mingachevir and Baku – were expanded. It is planned to construct a large metallurgical complex in Azerbaijan in 2015.

In general, given Azerbaijan’s economic stability, even against the backdrop of the global situation, the country’s task is more than real. This gives confidence to investors, as well as the foreign investors and makes it easier to attract them to create high-tech enterprises in Azerbaijan.