History of the Baku Oil Industry. Part 69

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 a conclusion it is necessary to note the fact the despite the stable economic growth in 2008-2010, most sectors suffer from transitional problems.  This was stated in the EBRD strategy for Azerbaijan for 2011-2013, approved by the Council of Directors of the bank in December 2010. The documents mention the achievements of the country in politics and economy and announce the priorities of development in the coming three years.  The priorities of the bank include the growth of investments in the non-oil sector, the development of financial sector, the support to small business. EBRD also wants to negotiate with the authorities about the reforms to improve the investment environment.

EBRD strategy points out that the annual growth of Azerbaijani economy since 2007 relies on the development of oil sector and in 2009 the part of oil and gas sector of GDP was 47%.

In the nine months of 2010 the GDP of Azerbaijan amounted for 29.3 manat, which is 4.1% more than last year.  It was predicted that by the end of the year the GDP would reach 39 billion manat (about 49 billion dollars). This was announced by Samir Sharifov on October 20 2010 at the mtting of the Cabinet of ministers headed by the president Ilham Aliyev. According to the minister per capita GDP grew by 2.8% and reached 3286 manta.  The volume of services that indicates the financial capacity of the population is 10.5% higher than last year, retail trade grew by 8.5%,  bank deposits of the population by 34.4%." In the nine months of the current year the external trade with 140 countries reached 20.2 billion dollars, import reached 4.5 billion dollars, export 15.7 billion dollars.  Therefore in this period the positive saldo of external trade reached 11.2 billion dollars", said Samir Sharifov.  In his words, the Ministry of Taxation fulfilled its prognosis for 100.6% and provided state budget with 3128 million manat.  From this money 56.4% or 1768 manat  came from the non-oil sector.

"It is 89 million manat of 5.3% more than in 2009", said Samir Sharifov.  The State Customs committee fully realized its budget prognosis for 2010 and provided the budget with 730 million manat.  The transfers for the State Oil Fund amounted for 3625 million manat. In the nine months the expenditures of the state budget are fulfilled  for 83.9% or 6837 million manat, which is 380 million manat (or 5.9%) more than in the same period last year.  According to the minister compared to the first nine months of 2009, in the same period of 2010 the military expenses grew by 20%, expenses on  agriculture by 14.2%, on welfare and social services by 13.9%, on housing and utilities by 9.4%, on culture, by 8.3%, on public health by 5.9%.

Although the global financial crisis of 2008-2009 and the corresponding recession are over, its influence is still perceivable in many countries.  In order to overcome its serious consequences, even developed coutnries need to reduce budget expenditures, salaries and welfare. Some countries experience severe cuts in the number of work places, stop important welfare projects, increase the retirement age.

"In Azerbaijan under the governance of Ilham Aliyev,  as a result of the targeted social and economic policy to increase the income of the population, to decrease poverty, to improve life condition of the poor and deprived, first of all the refugees, very important step are being taken to improve the level of life and social services", - Sharifov said. According to the state statistical committee,  between January-September 2010 the oil extraction reached  38551.9 thousand tons which is 1.9% higher than in the same period of 2009.  In particular, Azerbaijani International Operational Company (AIOC) working on Azeri-Chirag-Guneshli oil deposits in the Azerbaijani sector of the Caspian Sea in September extracted 3.6 million tons of oil and 32.2 tons all  in the nine months of the year, which is 2.5% more than in the first nine months of 2009.