The World bank (WB) has announced the new program for strategic cooperation with Azerbaijan for 2011-2014. It will be the key document in providing Azerbaijan with financial support, the bank's press-service said on Thursday, ITAR-TASS reports.
The Azerbaijani government will set its own priorities in the program. They will focus on strengthening the non-oil sector of the economy, including infrastructure and agriculture. This also includes social services, healthcare, education and water supplies.
The regional director of WB for South Caucasus Asad Alam said that Azerbaijan coped well with the economic recession. WB and the International Finance Corporation will continue supporting the country.
Azerbaijani GDP has sufficiently risen in recent years due to oil sales. The amount of people living beneath the poverty line dropped from 49% in 2001 to 16% in 2008.
The new strategy will aim at speeding up the realization of current projects and will have new investments realized according to the needs of the government. WB representative in Azerbaijan Joseph Ouen said that they will concentrate on their portfolio and will prioritise the realization of existing projects.
The government requested WB to provide $1 billion for the four-year period. The credit sum in the first two years will be $380 million. WB took into account that the average income per capita in Azerbaijan is $4,820, making it a medium-prosperity country. This is why 2011 will be the last year of beneficial crediting.
IFC will increase its investment program to $200 million within the strategy period.
WB plans to improve its analytical activities in creating working places, economic growth, reduction of poverty, financial sector, agriculture and irrigation, state expenses, clearing of water pollution.
Azerbaijan joined the World Bank for Reconstruction and Development in 1992 and The International Development Association of WB in 1995. It received investments worth $3 billion for 43 projects. The IFC has already provided $350 million for 45 since Azerbaijan“s joining in 1995.
