Ways to Mitigate the Negative Effects of the Processes occurring in the World Economy were discussed at UNEC

29 JANUARY 2016 | VIEWS:

Scientific workshop has been held at Azerbaijan State University of Economics (UNEC). Economists and researchers gathered for the seminar discussed ways to minimize the negative effects of the processes happened in the world economy in the economy of the Republic of Azerbaijan. Deputy Director of the Scientific Research Institute of Economic Investigations Rovshan Guliyev has spoken about the researches made by the institute to mitigate the negative effects of the processes occurred in the world economy to our country. He said the purpose of the research to identify the problem and find its solution. Rovshan Guliyev noted that in the first place in the research consisting of a few blocks occupies global trends. The stagnation tendencies are observed in the dynamics of the developed countries’ GDP. The main manifestation of it is a slowdown in economic growth at the global level; the world could be suffering from a deep crisis if the process is continued.

Trends in the economy of Azerbaijan have been investigated in the next block. It was noted that as a result of the fall in oil prices in the world market has led to a decrease in the currency flow and caused to devaluation. But in general the process of decline in oil production continues since 2010, and the process will go on for a long time. Even if the best price of the black gold would be around 60 $ a share of oil revenues in GDP will be reduced. However, non-oil GDP increased, and the main issue is to ensure this growth to be sustainable. At the same time, the decline in the oil sector will not affect in unemployment.

The next block of the research work is the current state of Azerbaijan economy and its prediction. The main focus of the unit is directed to the investigation of the domestic production and the condition of imports. Rovshan Guliyev noted that import of most products is higher, and it is not good. But the volume of imports show that there is demand for the products and their production in the country is possible. The economist proposed the implementation of effective reforms for the development of non- oil sector and study the international experience as a result of this block.

In the next block, which should be carried out in the short, medium and long-term measures consist of a statement. First of all, the country’s national economic development concept here, this is a special purpose entity and giving him special powers. Identification of minimal consumer basket for the life of the middle and poor class of the support mechanism, which is of vital importance to the state regulation of prices, to attract foreign capital to the country, enterprises, promotion of efficiency, the promotion of strict saving regime, complex monopoly necessary measures, including a special approach to producers .Medium term state ownership of large enterprises and, if necessary, on the basis of the establishment of enterprises, the export of oil to minimize the long-term maintenance and future generations of black gold are offered.

Rovshan Guliyev noted that the consideration of the production of non-oil GDP by 2020, as it’s possible to deliver the level of total GDP. This means that the establishment of the oil economy. Economist in the competitive potential of specific areas, including agriculture, tourism and others to determine the appropriate sub-sectors in the areas mentioned. He noted that the only way to achieve economic growth in this country to carry out systematic research.

In the end, eliminating dependence on oil and other economists in the country, the promotion of non-oil sectors, particularly agricultural and rural development, tourism potential, the proposed competitive and export-oriented production, scientific research in the Institute of Economics of the National Academy of Sciences Institute of Economic Research of UNEC stressed the importance of cooperation between the two.

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