Our Analytics 2 november — 13:35

Ilham Aliyev showed way for business, Natig Amirov implemented (Azerbaijan holds 25th place in the world)



Azerbaijan ranked 25th among 190 countries in the Doing Business-2019 report of the World Bank Group (WB). Compared to last year, when Azerbaijan rose 8 positions and took 57th place in the ranking, now the country has risen by another 32 positions. The information on the increase in the country's rating caused a great response in the world expert community, and therefore we decided to stop our attention on the growth of indicators of the Azerbaijani economy. Since, according to the World Bank Group, Azerbaijan has the best indicators among all CIS countries!

Evaluation of countries on the favorable conditions for doing business is carried out from 1 to 190. A high rating of ease of doing business means that regulatory conditions are more favorable for the establishment and operation of a local firm. The rating is compiled by measuring aggregate indicators on 10 topics, each of which consists of several indicators and has an equivalent effect on the overall rating of the country.

Immediately, we note that the Ease of Doing Business Index is an indicator for comparing the ease of doing business between countries of the world, compiled by the World Bank based on annual data. Top marks in the index indicate the quality and ease of business regulation, as well as the quality of protection of property rights. The purpose of the index is to provide research data on the impact of government regulation of the state on economic growth. And the more the state simplifies the conduct of business, the higher the country's rating.

Azerbaijan has the best result in the CIS!

And, as noted by WB expert Hulya Ulku, Baku has consistently carried out reforms to improve the business climate since 2006. According to her, Azerbaijan can be attributed to the list of countries conducting an incredible number of reforms. The country has implemented a record number of reforms - eight - aimed at simplifying business among 10 economies that have shown significant improvement. In particular, Baku has simplified the process of obtaining construction permits, connecting to power grids, registering property, obtaining loans, taxation, international trade, and also carried out reforms in the labour market and transformations aimed at protecting minority investors.

Recall, from the Doing Business-2019 global rating published on Wednesday, Azerbaijan significantly improved its position in the World Bank Group's Doing Business ranking, ranking 25th among 190 countries. The Doing Business Report 2019 is the 16th annual publication of the WB Group, which assesses the regulatory standards in the field of business. And according to the Doing Business-2019 report, Azerbaijan has entered the list of countries with the most noticeable improvement in the economy. For comparison, we note the best indicators in the region of Europe and Central Asia: Georgia is in the 6th place. Armenia ranked 41st, Russia 31st, Kazakhstan 28th, Turkey 43rd and Ukraine 71st.

As can be seen, many countries may envy Azerbaijan from the point of view of ease of doing business, to which constantly tirelessly, from year to year, President Ilham Aliyev called for and continues to call, and this is only an integral part of the overall success of the economy, and certainly a good indicator of sound state policy of the country's leadership. And the World Bank only appreciated the radical reforms consistently carried out in Azerbaijan in recent years, which contributed to the growth of the country's economy. The state is seriously interested in improving the investment climate and improving the welfare of the population, which is clearly noted by both local and international experts.

President Ilham Aliyev

By the way, there is no particular surprise in these achievements. All this was provided much earlier in the Strategic Road Maps of the national economy and the main sectors of the economy. These important documents were approved by the head of state at the end of 2016, and Natig Amirov, Assistant to the head of state for economic policy and industry, is responsible for implementing them.

And for the second year in a row, our economy is moving forward at a fast pace, as provided for by the strategic maps.

The officials responsible for structural and institutional economic reforms managed to achieve stabilisation of the financial market in the shortest possible time. The growth of GDP, budget and own revenues, a decrease in inflation, a positive trend of the other indicators are clear proof of that. We managed to achieve macroeconomic stability. And the changes introduced to the law 'On the budget system,' as well as the presidential decree 'On the procedure for preparing the framework for medium-term expenditures' introduced a new budget rule, which is a clear framework consisting of macroeconomic and budgetary indicators. It was necessary for the implementation of fiscal policies that ensure medium- and long-term macroeconomic stability, financial and debt discipline.

A new legislative framework has been developed, which has led to an acceleration of the reform course. A vivid example of this is the law adopted in March 2016 on the implementation on the basis of financing, in a special manner, investment projects related to construction and infrastructure facilities. It was after the adoption of this law that fundamental changes occurred in the construction sector, which, it seemed, was already fully prepared for a long hibernation after the economic crisis that erupted in the country after the collapse of the International Bank of Azerbaijan, and the banking system as a whole. Over the past two years, unemployment has sharply decreased, the material well-being of thousands of Azerbaijani families has improved.

Natig Amirov

Freedom of business determines the basis for the development of the national economy. And the 25th place of Azerbaijan in the world was largely predetermined by the transition from a multi-stage to a low-stage tariff system in imports. A major role in the process of reforming the economy was played by the Strategy for managing the public debt for the medium and long term, which provides for a gradual reduction in the volume of public debt, including external debt. This achievement was particularly noted in his speech at the last meeting of the Cabinet of Ministers by President Ilham Aliyev.

Three years after the adoption of the Strategic Road Maps, international organisations emphasised the liberalisation of the Azerbaijani economy and the creation of conditions for simplifying business activities. And the new indicators of Azerbaijan, indicated in the last report of the World Bank, became the embodiment of the success of the reform course...

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