History of the Baku Oil Industry. Part 67

After the discovery of oil fields, Baku became a special place, where various economic and political interests of international coalitions, industrial clans and leaders were concentrated and clashed. VK begins publishing chapters from the book by Ismail Agakishiyev "History of the Baku Oil Industry and the Second Oil Boom (second half of the 19th century - beginning of the 20thcentury)" The book presents a historical analysis of the emergence and current state of the Azerbaijani oil industry.

In 2006 the average monthly salary was 141.3 manat (158 dollars), which means that it grew by 19.8% as compared to 2005.  However, the average salary varied greatly between the sectors of economy. In agriculture it was only 52.4 manat ( 58.6 dollars), in education 78.1manat (87.4 dollars), in medicine and public health 67.1 manat (75.1 dollars), in processing industry 143 manat (160.1 dollars), in energy sector 145.1 manat (162 .4 dollars), while in extracting industry 649.3 manat (726.8 dollars). In early 2006 the number of retired people in Azerbaijan was 1399 thousand and their average pension was merely 28.5 manat (9.5 dollars). In early 2007 the number of retired people fell to 1227 thousand but their average pension was already 41.1 manat (46 dollars).

 According to the Minister of Finance Samir Sharifov, in 2007 GDP in Azerbaijan grew by 24.7% or by 24.6 manat (more than 29 billion dollars at the current rate). Sharifov also said the poverty rate fell from 45% in 2003 to 16% in 2007.  In 2007 alone 145 new jobs were created including 105 constant, while the overall number of new jobs created in the country between October 20003 and December 2007 reach 642 thousand.  The monetary income per person grew by 38% in 2007 compared to 2006 and reached 1670 manat (about 1980 dollars). The average salary grew by 42% and reached 214 manat (about 253 dollars), while average pension grew by 44% (59 manat or 70 dollars). The minimum salary and pension in 2007 was fixed at 60 manats (71 dollars).  External debt was 262 dollars per person - 8.3% from the country GDP.  From 2007 the growth of income in IT sector is about 25-35% a year and 32-35% after 2004. In 2008 the GDP of Azerbaijan reached 38005.7 million manats or 36 348, 415 million dollars, if we calculate using the average rate of that year with 0.82 manat for one dollar. It was 10.7% more than the GDP of 2007 (28 360.5 manat).

The main problem of 2008, apart from the economic crisis was inflation that reached 21%. In 2008 the growth of oil GDP (+15,7%) for the first time was higher than the overall  country GPD (+10.8%). In 2008 the value of goods exported from Azerbaijan was 47.7 billion dollars, and 88.2% of this export was made by hydrocarbons, with the rest composed by the machines, cotton and food.

The value of imported goods was 7.2 billion dollars. This is 13% of the entire foreign trade turnover.  The volume of foreign investments in Azerbaijani economy reached 2.225 billion manat. All this allows us to conclude that Azerbaijan got comparatively stronger and develops as a democratic, civil and prosperous state. In 2008 the investment in the sphere of communications reached 270.5 million dollars, with 52.2 million out of them went to the state enterprises and 218.3 to private sector.  In 2008 the IT services grew by 28.3%. In 2008 the average salary in Azerbaijan was 268 manat which is 24.2% higher than in 2007 (214).

By early 2009 Azerbaijan earned around 20 billion dollars from the realization of oil in the Contract of the Century, out of which 14 billion was earned in 2008.  The contract allowed the realization of the big projects such as pipeline Baku-Tbilisi-Ceyhan (completed in 2006) and Baku-Tbilisi-Erzurum (fully completed in 2007). The state program "Sustainable social and economic development of the regions of Azerbaijan in 2004-2008" clearly helps to reduce poverty in Azerbaijan. According to the State Statistical Committee helped to create 668 thousand new jobs, out of which 480 thousand were permanent.  80% new jobs appeared in the province. The main difference of the new program for 2009-2013 is that it tackles the problems in a more detailed way - it touches every single village.  The special attention is paid to public health. In 2003-2008 the dotation sot public health sector grew from 55 million to 332 million.  In 2008 62 medical objects underwent reconstruction and 33 were completed, while in 2007 out of 45 under reconstruction only 28 were completed.