Development of the non-oil sector is a priority of Azerbaijan's economy in 2016

By Vestnik Kavkaza
Development of the non-oil sector is a priority of Azerbaijan's economy in 2016

Last year the world's economic, military-political and military crises deepened, as a result of clashes in the Middle East hundreds of thousands of people were killed, millions of people became refugees and displaced persons. At the same time, Azerbaijan faced this problem, but coped with it through internal resources, including by taking effective steps to improve the living conditions of the refugees. As the President of Azerbaijan Ilham Aliyev stated at the government session on the results of the socio-economic development in 2015, in Europe, to where the flow of refugees is directed now, there is a strengthening of radical forces, Islamophobic tendencies and the inter-civilization misunderstanding experienced in the world is a cause for concern in Azerbaijan. Baku is also concerned about the deterioration of relations between Russia and Turkey, Azerbaijan's neighbors, as well as between Iran and Saudi Arabia, the increased confrontation between which affects events in the Muslim world.

Speaking about the impact of Baku on the international situation, Ilham Aliyev, who in the past year has visited two dozen countries, pledged that Azerbaijan will continue to play a stabilizing role in the region and strive to reduce risks. However, according to Aliyev, last year there was no progress in resolving the Nagorno-Karabakh conflict, and the last meeting between the presidents was merely formal. The Azerbaijani leader recalled that Baku's position is based on international law and UN Security Council resolutions, and in 2015 Azerbaijan, having achieved benefits on the frontline, was dictating its will.

As for the economic situation in Azerbaijan, the drop in oil prices and the devaluation of the manat in 2015 had an impact on the economic processes, but in Baku the decline in oil prices is not linked to economic or political factors.

Meanwhile, according to Ilham Aliyev, it is necessary to seriously monitor consumer prices: "In connection with the change of the exchange rate of the manat, some dealers want to raise prices artificially. Price increases are generally not possible for products that are manufactured in Azerbaijan. Artificial price increases must be stopped. Very severe penalties and fines should be imposed, we should not be limited just to fines. Let the prosecutor's office be seriously engaged. For those who want to exploit the situation for their own interests, very severe punishments will be applied.’’

In general, the priority for the Azerbaijani economy will continue to be the development of the non-oil sector. In order to minimize dependence on oil, Ilham Aliyev gave instructions for the protection of the State Oil Fund, reduction of transfers from the Fund to the state budget, expand the tax base, transparency of customs clearance and export-import operations, strengthening financial control. The President also instructed the expansion of reforms in agriculture. With regard to measures relating to the effective operation of transport corridors for the transport of goods in transit through the territory of Azerbaijan the Coordinating Council was established – currently Azerbaijan, Georgia and Turkey share a common tariff policy in this corridor.

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