Azerbaijan

Overall determination on the legal framework: Not In Place

В настоящей главе описывается планирование устойчивой инфраструктуры в Азербайджане и представляются текущие тенденции в области инвестиций в крупномасштабные инфраструктурные проекты. Сравниваются инфраструктурные планы в энергетическом, транспортном, промышленном и водохозяйственном секторах с международными обязательствами по Парижскому соглашению и Целями в области устойчивого развития (ЦУР). В данной главе также рассматриваются документы стратегического планирования по долгосрочному экономическому развитию, отраслевому развитию и охране окружающей среды, включая документы, связанные со смягчением последствий изменения климата и адаптацией к нему. В заключение определены несогласованности между поставленными целями и наблюдаемыми инвестиционными потоками, и тем самым предложены рекомендации для улучшения стратегического планирования устойчивой инфраструктуры.

This chapter describes sustainable infrastructure planning in Azerbaijan and presents current trends in investment in large-scale infrastructure projects. It compares Azerbaijan’s infrastructure plans in the energy, transport, industry and water sectors against its international commitments under the Paris Agreement on climate change and the Sustainable Development Goals (SDGs). The chapter also explores Azerbaijan’s strategic documents for long-term economic development, sectoral development and the environment, including those related to climate change mitigation and adaptation. It identifies misalignments between stated goals and observed investment flows and provides recommendations to improve strategic planning for sustainable infrastructure.

This chapter identifies, documents and provides estimates of the various subsidies in Azerbaijan that relate to the production or use of coal, oil and related petroleum products, natural gas, and electricity and heat generated on the basis of these fossil fuels. The chapter also briefly looks at the subsidies benefiting energy-efficiency measures and renewable energy sources. An overview of the country's energy sector is first given to place the measures listed into context. In addition, the chapter discusses pricing and tax policies in the energy sector in Azerbaijan. The analysis summarises the context, the state of play, and the mechanics of the complex and evolving landscape of energy subsidies in the country.

This chapter summarises the country-specific reports on climate-related development finance for 11 countries of Eastern Europe, the Caucasus and Central Asia (EECCA). The full country reports are available on the website of the OECD-hosted GREEN Action Programme [www.oecd.org/environment/outreach/eap-tf.htm]. Each report analyses the country’s climate targets and priority sectors/areas for climate actions; development finance flows to support climate actions in the EECCA region; and in-country enabling environments, such as laws, regulations, institutional arrangements and domestic financing mechanisms.

Azerbaijan has been proactive in reforming its business environment, including the introduction of one-stop-shop company registration and a best practice e-government portal. Financial and institutional support measures for innovation and SME capacity building have been launched since 2012, although a strategic framework for these measures is still lacking. The government is also in the process of drafting legislation to address remaining challenges in bankruptcy procedures, business licencing, access to finance and regulatory impact assessment.

In recent years, Azerbaijan has made significant progress in acknowledging the key role of small business in the diversification of its economy, and in setting up an institutional and legislative framework to address the issues of entrepreneurship. The Small Business Act (SBA) assessment identified the improvement of the regulatory environment as one of its main achievements. There has also been progress in simplification of regulation by reducing the number of days, procedures and costs required to start a business, as well as the introduction of online registration for both individual entrepreneurs and legal entities. Nonetheless, much remains to be done in strengthening horizontal intra-governmental co-ordination mechanisms and creating more opportunities for the small business sector to be involved in the policy-making process through public-private dialogue and its better representation within associations and other advocacy groups.

The OECD is celebrating its 50th anniversary this year. Throughout its history, the OECD has assisted countries in reforming and improving their policies to promote economic growth and development. It has fostered more open societies and the rule of law and has helped build the institutions necessary for the good functioning of market-based economies. This experience has been particularly valuable to countries undergoing political and economic transitions.

Development in Eastern Europe and the South Caucasus was prepared as a joint effort between the Development Centre’s Black Sea and Central Asia Initiative and the OECD Eurasia Competitiveness Programme (DAF/PSD), supported by regional correspondents located in each of the countries.

The global economic boom of 2000-08 and the steep rises in petroleum prices resulted in very rapid growth for Azerbaijan.

Development in Eastern Europe and the South Caucasus provides detailed country reviews of Armenia, Azerbaijan, Georgia, the Republic of Moldova and Ukraine. It explores current economic performance and the challenges of economic development and competitiveness. 

The transition from a centrally planned to a market economy is not an easy process and has required strong political will and wide ranging economic reforms in the countries of Eastern Europe and the South Caucasus (EESC).

The Constitution of Azerbaijan guarantees equality and rights for all citizens. Article 25 specifically prohibits any restriction of these rights on the grounds of gender. Principles contained in the Employment Code, the Penal Code and the Marriage and Family Code all stem from the Constitution, thereby further sanctioning equal rights and freedoms for men and women.

The Central Asian countries, Azerbaijan and Mongolia have gradually developed their securities markets with their banking sector reforms after the collapse of the communist regime. Although the market infrastructure in the region has been moderately developed with the support of international organisations, however, their securities markets are typically small in scale and still have the weaknesses.

Azerbaijan, as the other countries in transition, is included in the wide processes of economic development. Azerbaijan, passing through phase of the general economic growth, has entered the second phase of the economic development, where the main direction is the effective financial market formation. This is the basis of the country’s institutional reforms.