In the economic development of each country the important factors, which have great influence on its processes are retraced. For example, the analysis of the economic development of Azerbaijan shows that the main place in the formation of the economic model in the country belongs to industry and agrarian sector and, partially, last years, informational-technological communications. In this process the role of industry on enlargement of competitive production for export especially makes a fuss. This is explained by the wide capacity of industry to use capital capacious and innovation projects, which represent the most modern elements of the innovation economy, science and technology [1]. After Azerbaijan had become an independent Republic in the beginning of 1990-ies the rational use of the nature recourses and existent industrial potential of the country started.
It will be observed that in accordance with its administrative-economic division 10 large economic regions exist on the territory of Azerbaijan. According to their scale of the infrastructure and industrial power, the Absheron economic region is the largest one among all of them. The oil and gas production industry, the heavy industry sectors (chemistry and oil-chemistry, non-ferrous and ferrous metallurgy), energy spheres, light and food industry are centered in this region. Generally, nearly %90 of the industrial potential of the country centered in this economic region, where the large oil-chemical plants ‘EP-300’, ‘Polymer – 120’, ‘Exhalation producer’ plants and many others cut a figure.
Sumgait Industrial Center is the basis of Absheron economic region. The processes of building of Sumgait began in 20-30-ies of 20 century on the territory 35 kilometers far from Baku on the shore of the Caspian Sea. In 1938 Sumgait became a settlement, owing to the building of the thermal power station and another industrial objects [2]. About 1950 on this territory the number of workshops and metallurgy, chemistry and oil-chemistry productions had been given into exploitation and because of this the status of a settlement did not suit Sumgait any more. That is why in 1949 the status of a town was owned to Sumgait and it will commemorate its sixtieth anniversary according to the edict of Ilham Aliyev, the President of Azerbaijan Republic in 2009. The territory of Sumgait is 108 square kilometers and its population is more than 345 thousand people. In the historical sources the town is mentioned by English traveler (X. Beverrow) in 1580. The famous French writer Duma A. mentions the name of the post station of Sumgait in his book ‘Travel across the Caucasus’ in 1858. However, rapidly creative period of Sumgait came across the soviet epoch, especially in 1960-1980, when the town had been developing. The town was named ‘Town of Industry’, ‘Town of Piece’, ‘The youth Town’ and etc. This time the manpower from the different towns and cities of the USSR and especially from Azerbaijan regions were enlisted to Sumgait. Not casually National Leader of Azerbaijan Heydar Aliyev equalized Sumgait with small Azerbaijan.
The formation of Sumgait as the industrial center took place due to development of different industrial sectors, as it was mentioned above, such as chemistry, oil-chemistry, non-ferrous and ferrous metallurgy, engineering industry (instrument making), weaver industry, glass-ware industry and etc. In the middle of 70-80-ies of 20 century hundreds of industrial production were exported from Sumgait to more than 300 towns and cities of the former USSR and East Europe countries [3]. Nearly 40 thousand people were busy in the industrial sectors and productions. The conversion of hydrocarbon recourses of the country was provided in this center and by the end of 1980 there were approximately %20 of the industrial potential of Azerbaijan centered in Sumgait and each 8th person who was busy in industry worked here.
Nevertheless in the beginning of 1990-ies during the first years of independence of Azerbaijan the industrial complex of Sumgait coincided with serious difficulties. In the departure of these processes Sumgait industrial center lost a part of its industrial potential and highly skilled specialists and manpower. Merely in 1995 in comparison with 1990 the production extent in Sumgait industrial center came down to %77.3 but in 2000 in comparison with 1995 - it came to %27.3. Besides it, the number of people who were busy in industry reduced twofold in 2000 in comparison with 1980 and composed 20 thousand people, and now this number composes only 16 thousand people [4].
It will be observed that beginning from 2003 the complex arrangement on reconstruction and rational use of the potential of Sumgait industrial center had been hold. There were organized approximately 50 large and middle industrial productions, manufactures and workshops on the basis of modern technologies in the town. The exploitation of enterprises, which are busy in production of pipes of large diameter with the basis of polyether tar for the plumbing of the important water-main, began. The construction of the large and powerful ‘Exhalation producer’ power plant, which will impart complementary stimulus to the development of industrial outputs and will become a certain guarantor on the provision of them by the electric power, was brought off. A number of compact and rational cable plants by way of technoparks is being prepared for exploitation on the basis of winded up infrastructure powers of the power system and it is foreshadowed the exhaustion of hundreds of types of electric cables. These productions will not only provide the needs of Azerbaijan but will be also exported to the other countries.
However the investigations show that the use of the potential and powers of Sumgait industrial center is still much fall behind from the general level of the economic development of Azerbaijan in a whole. The accrued reserves of the manpower resources in this large industrial town are used irrationally. The muster of manpower composes 203 thousand people, 183 of whom are employable. Furthermore, only 142 thousand of them are busy in manufacture and non-manufacture spheres. However, as it was mentioned, in present time only 15-16 thousand people work at industrial productions of Sumgait. To deep regret, lots of large productions are either suspended or work with low charge. At once the priority perspective directions on accelerated development of Sumgait industrial center are retraced according to the following factors:

-there are real capacities for setting the exhaustion of hundreds types of metal-hire production for provision of inner needs of Azerbaijan and for export under the rational use of the powers of ferrous metal industry sector by dint of modernization and use of new technologies;
-expediently organize new powers of modern construction materials and manufactures with the involvement of highly skilled manpower of the town and the use of most new technologies in view of accelerated development of construction sector in the region;
-to provide the acceleration of modernization processes and reconstruction of the power of industrial productions (chemistry, oil-chemistry, instrument making and so on). By that to create the conditions for increasing the powers of industrial complex of Sumgait;
-to estimate the real capacities of industrial potential of Sumgait and to accumulate them in details in the form of investment projects for involvement large investors and with the aim to organize purposeful works and etc.

It will be observed that many experts presuppose the development of Sumgait in accordance with modernization of the existent powers of chemical and oil-chemical complex and these prognoses are not groundless. The matter is that according to the prognoses of the UN for the nearest 15 years the production development of chemical production in the world will compose %85 and the tempo of chemical production development defines the increase of the general gross product of the developed countries, half as much – twofold as a rule. Besides it, there are real spheres on the use of new economic instruments, elements, innovations and etc. On the basis of these important factors, to our opinion, it is efficiently to examine the following:

-the preparation and acceptance of the packet of investment portfolio on the accelerated development of Sumgait industrial center and introduction of it on counsel on the international business – conference with the participation of the jet set of the world business society and also the investment companies;
-In respect that the number of industrial productions needs reconstruction and modernization it is ought to use new economic instruments, for instance, the formation and function of special economic zones and etc [5].

It is ought to mention that the creation of special economic zones on the basis of Sumgait industrial center was regularly considered since the middle of 90-ies of 20 century with the participation of international organizations, including the UN. However the consummation of the concrete realization of the given arrangement failed and these plans remained non-realized [6].
Nowadays the situation is not the same. The edict of Ilham Aliyev, the President of Azerbaijan Republic about the appliance of the coincident law on special economic zones, was issued on June the 3rd, 2009. Besides it, the acceptance of the appropriate law is expected in the Parliament this year.
How it can be seen from all said above the real basis for intercalation of new economic instruments, innovation function as special economic zones was formed on the basis of Sumgait industrial center. It will serve as a new hitch for the development of the industrial powers of the town and for dynamic development of the country, and in economics of Azerbaijan in present conditions by the gross [7].

Literature sources:

1. The Statistic Report on Social-economic Development of Sumgait. Sumgait, 1991-2009.
2. ‘The Role of Sumgait in the National Economics of Azerbaijan’, ‘Economics and Life’ Journal (2004) Baku #5, 6., p.98-108
3. The materials of the conference ‘The Role of Sumgait Productions in the Formation of Powerful Industrial Potential’ (2006) Sumgait
4. The Statistics Reports on Social-Economic Development of Sumgait, 1991-2009.
5. Sh.T.Aliyev. The Perspectives of Enforcement of the Special Economic Zones Role in Acceleration of Extension of the Social-Economic Problems in Azerbaijan in the Context of the Experience of Poland, Х International Scientific Conference of Economics - E-society in Central and Eastern Europe, Nalenchuv, May 11-13, 2009, p.409-412.
6. Aliyev Sh.T. (2008) ‘The Organization Problems and Development Perspectives of Special Economic Zones’. Baku: ‘ELM’, 252 р.
7. Aliyev Sh.T. (2009) The Importance of Use of the New Economic Instruments in the Economic Processes of Azerbaijan. – ‘National interests: Priorities and Safety’ #12, Moscow


Publication: International Scientific Bulletin ‘Perspectives of Innovations, Economics and Business
Place of publication: Prague, Czech Republic
Date of publication: September 2009

Web-page: www.pieb.cz