EBRD preliminary strategy for Azerbaijan publicised

Azerbaijan has successfully attracted major investments in the oil and gas sector by creating favorable conditions and operations for both local and foreign investors, and the government needs to recreate this success to attract investment in the non-oil sectors of the economy, states the preliminary version of the European Bank for Reconstruction and Development's 2011-2013 strategy for Azerbaijan, Trend reports.

"Closer integration into the global economy will allow Azerbaijan to improve productivity and competitiveness. Joining the WTO will support economic diversification through the establishment of a stable and predictable framework for importers and exporters and discourage protectionist reactions, reflecting a desire to deepen trade in goods and services outside the oil sector," the strategy reads.

The European Bank for Reconstruction and Development (EBRD) encourages Azerbaijan to lay the foundations for sustainable growth and employment in order to reduce the country's dependence on the oil and gas sector. The government put the greatest emphasis on economic diversification in its development strategies. To achieve this goal, Azerbaijan must build on its achievements and overcome the remaining challenges of the transition period.

"Azerbaijan will need to create a business environment, accelerate reforms in the customs and tax spheres, further integrate into the global economy, deepen financial intermediation and promote reforms to improve the public infrastructure," the strategy says.

The indicator for the transition to a market economy is 2.63 for Azerbaijan. The bank estimates that transitional problems remain in most sectors, apart from the agricultural and natural resource sectors and transport.

In particular, Azerbaijan should carry out more complex and time-consuming reforms such as privatization of large enterprises, building of market institutions and infrastructural reforms.