Natig Amirov speaks about economic reforms in Azerbaijan

Azerbaijan is now taking concrete steps to sign a document designed to encourage the development of non-oil industry, business, improving transparency, including in the financial sector, and further strengthening of public control mechanisms.

President of Azerbaijan Ilham Aliyev on February 3rd issued two important decrees on the establishment of a legal entity of public law - the House Financial Market Control and the Appeal Board. The Assistant to the President on Economic Reforms, Natig Amirov, spoke about these and other matters of the economy on the TV channel AzTV.

He explained that, since the beginning of this year, Ilham Aliyev has been taking measures to accelerate the implementation of reforms being carried out to date, and just in January of this year a number of laws, decrees and orders have been issued. "As a result of the successful implementation of the development strategy, the foundation of which was laid by the national leader Heydar Aliyev, Azerbaijan's economy over the last 10-12 years has been developing dynamically, serious reforms in the area of ​ economic diversification have been carried out. During this time, the Republic of Azerbaijan has been repeatedly noted in the report Doing Business as the most reformist country, for many years Azerbaijan has retained a leading position in the world in terms of GDP growth. For nearly seven years the economy of Azerbaijan has been among the top 40 countries in terms of competitiveness and it maintains a leading position in the CIS," Natig Amirov recalled.

However, the fall in oil prices since the end of 2014 prevailing in the world last year, the geopolitical situation and the economic problems provoked by these factors have prompted the authorities to actively engage in the development of the non-oil sector. "Under the leadership and initiative of the President, Azerbaijan has started large-scale reforms in the oil sector. The most important principles of quality delivery in the intended direction of the reforms are to ensure transparency in the financial sector, supervision and liquidity arrangements in this market. Of course, the basis of all reforms is financial stability and, as noted by the President, by ensuring, first and foremost, the application of international standards to this area, we need to achieve financial stability and liquidity of our banks and financial institutions, and then we can move on to fundamental reforms in other spheres," the assistant to the president on economic issues said.

"To this end, by studying the experience of developed countries a mechanism has been identified so we can separate the regulatory mechanisms, control and enforcement between the participants of the financial markets from each other. For several days I noticed published in print paper. The purpose of these reforms is not to take away some powers from one structure and transfer them to another. The main goal is to create transparent control – it is not about the control and verification methodology left over from the Soviet ideology, but a control mechanism that will protect the financial market. That is, the goal of the Chamber of Control for the Financial Markets is to protect both healthy competition and liquidity of the participants in this market, and the implementation of the measures provided for this," he explained.

Natig Amirov said that a presidential decree established the working group that will prepare the charter of the Chamber and the legislation governing its activities. Among the functions of the Chamber will be control and insurance of the banking market and the assets market, as well as activities in the field of financial monitoring and money laundering. A working group establishing clear boundaries between the functions of the Central Bank and the Chamber will develop regulations that implement distribution. Because the Central Bank is the main participant in the financial market, and in addition, it carries out monetary policy. As a result, the role of the Central Bank in determining the banks' financial market, inflation and prices has remained unchanged.

Now, according to the Assistant to the President, when beginning to consider an appeal or complaint, the local executive authorities will be aware that if a case will be considered with violations of the law and doesn't satisfy an entrepreneur in some aspects, then he will go to the Board of Appeal under the President. "If the decision of the Appeal Board under the President abolishes a decision by a local or the central executive authority, then, of course, measures will be taken regarding the individuals who signed the decision," Amirov said.

"These tips provide not only entrepreneurs but also citizens with a chance to use the mechanisms of social control. Entrepreneurs have been turning into participants in the control mechanisms, they will easily be able to bring their appeals to the head of state. Protection of the rights of entrepreneurs, belief and trust between the state and entrepreneurs, of course, encourage business entities to take new initiatives, to invest more confidently. And this provides an impetus to overall economic development," AzerTaj quotes Amirov as saying.

"Another important point is that the decisions of the Appeal Board are bound to be made public. Therefore, the activity of the Appeal Board will be completely transparent for all citizens, including businessmen, which itself is a factor that contributes to public control,’’ Natig Amirov said.

In addition, the Assistant to the President on Economic Affairs emphasized that Ilham Aliyev has a clear and well thought-out concept of the economic reforms the government is implementing. This concept comprises four main areas.

"The first direction is connected with the stability of the financial markets, recovery of the liquidity of the manat, as well as the strengthening of fiscal discipline in this area. Azerbaijan's currency reserves amount to about $38 billion. This figure exceeds gross domestic product. The government, which has such strategic resources, cannot of course experience any financial difficulties," the Azeri politician reminded.

However, according to Amirov, the main direction defined by Ilham Aliyev is the rational use of financial resources and the regulation of the principles of participation in increasing GDP through further transformation of the financial resources in the additional costs.

The second key area is aimed at export promotion, which operates under the Ministry of Economy AZPROMO. "At the same time, on the basis of proposals from separate structures for the promotion of exports on changes in the laws, various regulations have been drafted and implemented. However, as noted by the President in his last speech, the totality of these factors does not fully meet the general concept of the reform of the President. 

Thirdly, a very important area concerns the internal market and an end to dependence on foreign supplies. "Already in January the import processes in Azerbaijan, transparency in the registration of imported goods by the customs authorities and the steps taken in this direction in other relevant bodies have created very favorable conditions for the business environment. However, the mass flow of imported goods to Azerbaijan is bothering our local producers. 

The fourth direction of the concept of the economic reforms of the President of Azerbaijan is encouragement of businesses, particularly producers of agricultural products through public procurement. 

"As you can see, the fourth main line confirms that government support for entrepreneurship is a priority. The government eliminates bureaucratic obstacles, in order to render every assistance to entrepreneurs. The economic reforms planned by the President of Azerbaijan are designed for the new development of the country,’’ the Assistant to the President for Economic Affairs, Natig Amirov, concluded.