29.02.2008, 14:59
Business Environment in Azerbaijan Is Difficult
OREANDA-NEWS. February 29, 2008. The European Bank for Reconstruction and Development (EBRD) Head Economist, Eric Berglof said the economic reforms in Eastern Europe and CIS (including Azerbaijan) were very slow in 2007. Berglof said the conditions for businesses are difficult in Azerbaijan against the background of "the country's easily earned incomes". The national economy is non-transparent and prone to monopolization. Corporate governance is generally low (and the worst one in state-run organizations). Privatization is conducted slowly. The government has however created a one-window registration system for businesses and has worked out a bill on investments and an anti-monopolization law. EBRD advised the Azerbaijani government to reform the institutions, increase the investments and expand the private sector in the electric power industry and communication. EBRD believes the non-oil sector should be developed to diversify the economy, and it is necessary to overcome monopolization and corruption for this. EBRD warned that Azerbaijan should considerably develop businesses today, because the oil extraction will reach a peak in 2013 and sharply decrease afterwards, retarding the entire economy.
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