The World Bank Country Manager in Azerbaijan Spoke at the Annual Conference on the State Program for Poverty Reduction and Economic Development (SPPRED)

World Bank Country Manager in Azerbaijan

Annual Conference on  SPPRED

26 May, 2004

Baku, Azerbaijan

 

Ladies and Gentlemen,

 

• I would like to congratulate the Government on producing an excellent progress report on the first year’s implementation of the SPPRED and for aligning the country’s medium-term Poverty Reduction Strategy (PRSP) with the longer-term Millennium Development Goals reflecting the decision taken in the late nineties to move away from relief to development.

 

• It is clear to us that the Government has: (a) a coherent strategy for reducing poverty, articulated in the SPPRED and further expressed in the Presidential Decree of November 24, 1993, the World Bank has endorsed the Government’s strategy as an organizing framework for the Country Assistance Strategy which comprises four interrelated strategic goals aiming to: (i) manage the oil windfall and maintain macroeconomic stability, (ii) generate jobs and non-oil growth, (iii) improve access to services by reversing the decline in social services and infrastructure, and (iv) help realize the oil potential to the extent and in the timeframe envisaged by the SPPRED. These are being supported by a carefully balanced combination of policy based assistance (PRSC’s), investment projects, institution building and technical assistance; and (b) an effective monitoring and evaluation system for tracking and assessing progress towards the goals of its poverty reduction strategy. The SPPRED Secretariat continues to monitor changes in poverty levels, and where possible analyses the effect of policies on poverty results. The next progress report will need to be more explicit on monitoring of outputs and outcomes. Government’s intention to gradually expand the core set of indicators, especially for measuring the targeting of social services. The Secretariat should encourage establishing annual surveys such as the Labor Force Survey and survey of IDPs, and others that would help Azerbaijan to set a credible database. It is important to continue to make data available for independent researchers as part of participatory process.

 

• The Government’s priority for the future should continue to be the development of the non-oil sectors of the economy. Important steps that need to be taken in the next twelve months to accelerate implementation of the SPPRED which include: (i) the development of a Public Investment Program that is linked to SPPRED priorities, (ii) the creation of an enabling environment for a more balanced and sustainable Regional Development aimed at giving priority to private sector development to support small and medium-sized enterprises and at attracting national and foreign investment toward the non-oil sector of the economy, (iii) the strengthening of competition in the economy by further reducing monopolistic practices in the communication, banking, energy, trade sectors and improving corporate governance and financial accountability in the public and private sectors with the establishment of mechanisms to fight corruption, (iv) the approval and commencement of a national employment strategy for Azerbaijan to achieve the creation by the non-oil sector of the economy of six hundred thousand new jobs within five years, (v) the reform of the health and education sectors by emphasizing cost-effectiveness and ensuring access for the poor.

 

• In conclusion the Government of Azerbaijan has made significant progress in implementing the SPPRED within a short period of time notwithstanding the political challenges in 2003. Although there are certain weaknesses due to the insufficient implementation capacity and shortage of time. In our view there are some shortcomings that need to be addressed during implementation of SPPRED in particular those regarding the growing inequality in access to education by the poor, the alarming status and inadequate public expenditures level and access by the poor to the health services, and the need to increase provision of social protection with all the attendant problems in respect of targeting and administration of social protection. Nonetheless, we consider that Azerbaijan’s poverty reduction strategy continues to provide a credible framework for strong support by the World Bank.

 

 

Thanks.