Дата публикации: 24 июня 2010
Автор(ы): Shafa Aliyev
Публикатор: shafaaliyev
Рубрика: АНГЛИЙСКИЙ ЯЗЫК Best topics →
Источник: (c) http://portalus.ru
Номер публикации: №1277374137

Shafa Aliyev, (c)

Сайт автора: http://shafaaliyev.wordpress.com/


The mankind began to influence every elements of the environment with the development of economic relations and the density of population over the land. With heavy industrialization, climate and nature were influenced negatively under the most severe pressure. Because of these and connected processes, the climate all over the world changed beyond imagination with global pollution and warming. The output of the energy carriers and mineral resources out of the nature core, were intensified.
Oil-gifted countries have a narrow window of opportunity to pass through a stage of bonanza to a thriving economy, if they take comprehensive and nationally appropriate measures, in a conducive international environment where mitigation is not a punishment but a fair deal across nations.


Azerbaijan is rich with its natural resources. In our country, there are large mineral resources and raw materials (aluminum, iron, gold, silver, chrome, cobalt, copper, barite, salt, hydrocarbonate, chlorides, dolomite, iodine, bromine. etc.). Nevertheless, Azerbaijan is famous especially for its oil, fuel and energy stocks that have been intensively extracted for more than hundred years.
In Azerbaijan the formation of the oil industry began with the development of the well-known Baku Bay on the coast of the Caspian Sea in the second part of the 19th century. In the beginning of the 20th century, the oil production and its conversion were intensified. Afterwards, due to the accelerated industrialization in the former USSR, the communism maximally exploited the Baku Oil Bay, where ruthless pumping out of natural resources from a bottom of the sea and the ground took place, in a struggle with capitalism, and nothing was made in favor of the environment instead. During the World War II, all the oil resources of Azerbaijan were mobilized on the front that was leading to the pollution of the soil and air of all the territory of the Baku Bay and adjoining territories.
In the result of this, the ancient beautiful city Baku was surrounded by oil bogs and waste products, and the environment was hugely aggrieved, with a long-lasting damage to the population and all living creatures. It is fair to say that in 1970s and ’80s, the Great Son of Azeri nation, National Leader Haydar Aliyev, being the head of Azerbaijan Republic, used the huge resources of the USSR skillfully, what fetched to the modernization and renovation of the main foundation of the oilfields, plants, and, more in general, of the use of modern technologies in all the industry of Azerbaijan.


With its independence, Azerbaijan received a historical chance of realization of the main competitive advantage (as Porter would say) in terms of elaboration and fulfillment of a national oil strategy, which was able to give a powerful impulse to the development of the accelerated model of the economic model of Azerbaijan in 1991.
During the realization of the oil strategy, in the country 36 billion USA Dollars have been invested to the oil-and-gas sector since 1994. Just since 1997 till 2008, the oil production of Azerbaijan has increased 4.9 times and reached 44.5 million tons oil per annum in 2008. In 2009, in Azerbaijan nearly 50 million tons of oil is planned to be produced. In 2008 the gas production composed 21 billion cubic meters in the country.
The explored stocks of the hydrocarbon embrace 4 milliard tons in oil equivalent, and the prognosis is for 8-10 milliard tons. To the experts’ opinion, the oil production of Azerbaijan can be increased till 60 million tons per annum, whereas gas production – till 34 billion cubic meters per annum. Azerbaijan can export about 30 billion cubic metres of gas during the nearest 10-15 years. Having been geographically situated between Europe and Asia, Azerbaijan successfully enlarges its integration territories with the outcome to the world markets. Between 2003 and 2008 the economy of the country increased 2.6 times, and the budget revenues - more than tenfold.
The social-economic problems are being solved successfully in the country with the level of unemployment and poverty falling, employment rising, etc. Even in conditions of the financial and economic crisis in the world, in Azerbaijan the economic growth is going on.
The country presses for entrance to the World Trade Organization (WTO) and to widen the economic relations and the main structures of Europe. According to the prognosis of ICF in the Regional Economic Outlook, Azerbaijan prepares to a new upraise. Thus, if the GDP level of Azerbaijan is predicted to raise by 25% in 2009, in 2010 this figure is expected to be on the level of 12.3%.


In Azerbaijan, alongside with the oil-and-gas industry, also other competitive branches of the economy of the country are in place, with the mechanical engineering, metallurgy, chemistry and oil-chemistry, instrument making, agriculture, food industry and many others being marked among them. In the nearest 10-15 years in Azerbaijan, the realization of a number of important elements and main functions of the innovation economics will be possible due to the oil factor on the basis of the progressive world experience and effective innovation activity.
In short, the conversion of the national model of the economic development of Azerbaijan to the more prosperous model of development is expected, which should provide Azerbaijan with a proud place among the competitive and developed countries of the world.
By leveraging the oil potential in a unified way, the country is able to invest in future-oriented industries, building skills in the people and infrastructure on the terrain.
The Information and Communication Technologies (ICT) sector in Azerbaijan is particularly promising. Revenues and income in this sphere increase annually, and in present the ICT is the second sector of the national economics after the energetics in terms of the rate of growth. The annual rate of growth in Azeri ICT reached 30-35% during the last years, and in 2008 the companies of this sector have earned 1.2 billion USA Dollars.
In the perspective in 2011-2012, the operations of 2 newly launched telecommunication satellites are planned. On the basis of these satellites the modern services in the sphere of tele- and broadcasting, internet access, data transmission, international telecommunication and all the connected services will be made available to the populations, entrepreneurs, and organizations. Besides it, the creation of the Regional Innovation Zone for ICT companies is also expected.
According to the Global Information Technology Report 2008-2009 by the World Economic Forum, Azerbaijan took the 60th place among the 127 countries according to the ICT development, rising from the 71st place in 2006-07 and 67th in 2007-08. Among the CIS countries this position is the most advanced one.
Moreover, in terms of e-government, the UN conferred the first place to Azerbaijan among the Southern Caucuses countries and the 89th place among the 182 developing countries.
This is an example for other countries that are rich in oil and would like to build a thriving economy.


Skillfully using the financial resources, which had been piled up due to oil profits, the government of Azerbaijan wages a balanced social-economic policy. Facilities for developing small and medium-sized enterprises are being created. Effective measures for the development of the regions are lagging behind territories of the country. Employment is fostered with falling levels of unemployment and poverty.
By the gross, the oil capital is directed to the service of the people, society and environment. The 2nd State Program of the social-economic development of the regions of the country for 2009-2013 is underway. The development of the innovation sphere will increase, with the formation of the innovative regional technoparks and special economic zones.
Also the program on development of the Information Communication Technologies (ICT) is going to be realized in 2009-2012. It is expected that with the development of ICT in Azerbaijan, the profits of the ICT sphere are going to become comparable to the oil sphere, which would begin to diminish the dependence of the economy of Azerbaijan from energy-oriented use of oil. In present days, the legislative body is going to consider a package of laws about the innovation activities.


The problems of directing oil-generated capitals into the innovation race with a focus on the human factor and growth as solution for social-economic problems (especially unemployment and poverty levels) are under the strong attention of the government. With this aim, the levers of Special Economic Zones (SEZ) are going to be seriously used in Azerbaijan. On the June 3, 2009 the President of Azerbaijan constituted an edict about the acceptance of the law (April 14, 2009) ‘About the Special Economic Zones’. An improvement of the normative-legal acts in accordance with the given law has been outlined. To the opinion of the developers of the law, after the acceptance of SEZ, the capacity of rational use of the geographical situation of Azerbaijan will be improved, and these processes will activate the inflow of foreign investments. The government contemplates to enforce the work of SEZ formation, mainly in 2 directions - the creation of the acceptable platform and the congruent infrastructure. The formation of the industrial, infrastructure, innovation, mixed zones and zones of the free trade is foreseen in the law, with benefits covering 20-25 years.
The formation of SEZ will widen the integration of Azerbaijan into the world economy, introducing several innovation elements. It will generate the effective development of non-oil sectors of the national economics of the country and, by the gross, the transition of the country to the innovation economy.
In this, the ecological economy will have an important role, with the essential work in rectification of Baku Bay from pollution and the improvement of the environment conditions in industrial premises. Managing the legacy of the past, removing the dangerous substances and the related processes, convert the plants are not easy tasks, and there are a historical chance for the acceleration of the transition to the innovation economy is at hand in Azerbaijan in the nearest 5-10 years.


The lessons that might be taken to other countries that face similar conditions are the following:

1) one should leverage the national natural endowment and the national pride to get strong commitment to the country;
2) internal resources should be mobilized and should stimulate the formation of the national model of the economic development;
3) best technologies and skill transfer should take place in the interest of the country, e.g. the use of new economic instruments, innovations, including the establishment of special economic zones;
4) a clean environment is a crucial goal for everybody loving his country;
5) the international community should help the transition, opening opportunities and facilitating the necessary changes;
6) diversification is possible, with high rates of growth for entire new industries;
7) ecologically-oriented scientific-technical progress is key to the development of a modern economy.

Literature sources:

1. Porter, M. E. (1985) Competitive Advantage: Creating and Sustaining Superior Performance, New York: Free Press.
2. Electronic resource: http://day.az/print/news/oilgas/159886.html
3. The Materials of the Economic Development Ministry of Azerbaijan Republic (www.economy.gov.az)
4. Electronic resource: www.interfax.az
5. Electronic resource: www.technograd.com
6. Electronic resource: www.cnews.ru
7. Aliyev Sh.T. (2009) The Importance of Acceleration of Transition to the Innovation Technologies and Innovation Economics in Azerbaijan Republic in the context of the world experience. The 14th International Scientific-Practical Conference ‘Actual problems of Development of the innovation Activity’, May 18-22, 2009, Alushta, Crime, the Ukraine, 74-77 p.
8. Electronic resource: www.novosti.az
9. 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 İnternational Scientific Conference of Economics – E-society in Central and Eastern Europe, Nalchenov, May 11-13, 2009, p.409-412.
10. Aliyev Sh.T. (2008) ‘The Formation Problems and Functioning Perspectives of Special Economic Zones’ (monography), Baku, ELM, 252 p.

Publication: International Symposium on Innovative Economic Policies for Climate Change Mitigation
Place of publication: Subiaco, Italy
Date of publication: June 25th-26t , 2009

Web-page: http://www.economicswebinstitute.org/

Опубликовано на Порталусе 24 июня 2010 года

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