STRATEGIC ROAD MAPS
Our country has made significant progress in all aspects of national development and distinguished by its flexible approach to the economic realities of the time. After we gained our independence, our country has also experienced a period of crisis stages in a deep and political transformation. Enemy`s aggression and uncertain political situation in the country does not only paralyzed the country`s economy but also, created a threat to Azerbaijan`s national interests. After Heydar Aliyev`s return to political power, the political stability created conditions for the normal functioning of economic institutions and accelerated transition to the market economy. With the `Contract of the century` treaty which is signed in 1994, Azerbaijan gained an important position on the world`s energy map. Thus, the decline in the economy was soon replaced by a dynamic economic development trend.
From 2004 to 2015, an average annual economic growth rate became 10.6 percent, while GDP increased 7.6 times in the country. At the same time, there was a 6.5-time increase in the GDP per capita that caused Azerbaijan to rise from 134th to 79th place among the world countries. International rating agencies and organizations highly evaluated the economic reforms implemented in Azerbaijan and the current economic environment. According to the World Bank's Doing Business report, Azerbaijan was evaluated as the world`s `leader reformist state` in 2009. As a result of the successful implementation of the oil strategy, the well-being of the population has increased, capital investment in the economy has increased many times, and stability in the macroeconomics achieved. In this regard, up to the present, the path of socio-economic development of Azerbaijan can be considered as adequately successful.
However, since mid-2014, a sharp decline in the world markets` energy prices, economic downturns in foreign-traded countries, and the financial crisis have also had a negative impact on Azerbaijan. The flow of foreign currency into the country decreased significantly. This tendency created a significant difference in the country`s import-export balance. The sustainable economic growth in recent years become to slow down, and it led to the transition of new economic model`s implementation in our country. Under such a circumstance, Azerbaijan Republic`s President Ilham Aliyev initiated the development of a new economic strategy and relevant institutional reforms.
In this regard, according to the “Strategic Road Maps for National Economy and Main Economic Sectors” signed by the President of the Azerbaijan Republic Mr. Ilham Aliyev, over the national economy and economy`s 11 sectors, the preparation of 12 strategic road maps plays a significant role.
Here is a list of the 12 strategic road maps which contribute to the development of the national economy:
"The strategic road map on the prospect of the national economy of the Azerbaijan Republic";
"The strategic road map concerning the development of the oil and gas industry in the Azerbaijan Republic";
"The strategic road map concerning production and conversion of agricultural products in the Azerbaijan Republic";
"The strategic road map concerning the production of consumer goods at the level of small and medium business in the Azerbaijan Republic";
"The strategic road map concerning the development of the heavy industry and mechanical engineering in the Azerbaijan Republic";
"The strategic road map concerning the development of the industry of specialized tourism in the Azerbaijan Republic";
"The strategic road map concerning the development of logistics and trade in the Azerbaijan Republic";
"The strategic road map concerning the development of the provision of housing in reasonable price in the Azerbaijan Republic";
"The strategic road map concerning the development of professional education and training in the Azerbaijan Republic";
"The strategic road map concerning the development of financial services in the Azerbaijan Republic";
"The strategic road map concerning the development of telecommunication and information technologies in the Azerbaijan Republic";
"The strategic road map concerning the development of utilities (electrical and heat energy, water, and gas) in the Azerbaijan Republic".
Strategic Road Map on National Economic Perspectives covers short, medium, and long-term horizon and comprises economic development concept and action plan until 2020, long-term outlook by 2025, and target outlook for the period after 2025. It does not only covers economic objectives and principles, but also, global trends for each area, 360-degree diagnostics of the economy, SWOT analysis of the current situation, actions to be undertaken, required investments, and indicators as well.
This map considers the contribution of all economic-social development factors, includes great opportunities for the extensive cooperation of local and international private sector representatives. Government investments play a catalyst role and the private sector emerges as the locomotive of economic development.
In order to achieve sustainable economic growth, the strategic roadmap identifies four strategic goals:
1) Ensuring fiscal sustainability and formulating monetary policy;
2) Privatization and reforms related to state-owned enterprises;
3) The development of human capital;
4) Further improvement of the business environment.
By implementing these four strategic goals, the national economy will strengthen and diversify, and transparent management and control system will establish.
Reducing the country`s dependence on energy carriers, economic diversification, and integration into the world economy are the priority goals of the `Strategic Road Map`s Action Plan` for 2020. These arrangements which are connected with each other paved a way to restructure the country`s economy comprehensively.
The goals set within the frames of a long-term vision in the `Strategic Road Map` until 2025 aims to strengthen the competitiveness of the country's economy, By achieving this goal, the establishment of a free competitive environment in the country, increasing the private sector`s share in the economy, and enhancing the economy`s investment attractiveness plays a significant role. Azerbaijan is evaluated as one of the most stable countries in the world by the world`s leading financial institutions in terms of its macroeconomic environment. However, a sharp decline in oil prices threatens our country`s macroeconomic stability. In this regard, achieving macroeconomic stability again in the medium-term target is one of the key goals for the successful implementation of the responsibilities ahead.
The Strategic Roadmap defines the establishment of a strong, diversified, inclusive economy that ensures improved social welfare for the country's citizens and higher the human development index as a post-2025 target view. Improving the living standards of the country`s population and developing human capital are the key components of long-term targets.