December 2, 2002
Azerbaijan, where the oil sector generates about 80 per cent of the gross domestic product but only one per cent of all jobs, is encouraging new businesses to reduce poverty and spur economic development.
An initiative launched by President Heydar Aliyev at a recent national conference in Baku, the capital, aims to promote economic stability, regional development and new businesses to create more job opportunities. These efforts include simplifying tax and customs procedures and improving the banking system.
The Government has pledged US$1 billion for 2003 to 2005 and is seeking an additional $2 billion in financing from the World Bank and International Monetary Fund, along with assistance from bilateral donors. UNDP is championing a key element: job creation.
Creating jobs in the non-oil sectors is a crucial part of poverty reduction efforts. Among promising areas for business expansion are agriculture -- including cotton, fruits, and wine -- construction and tourism. UNDP is also working with the Government to promote information and communications technology.
President Aliyev said that despite economic progress in recent years, poverty is a major issue, with half of Azerbaijanis living below the poverty line. "Our task is to strengthen the fight against poverty and ultimately eradicate it," he said.
Marco Borsotti, UN Resident Coordinator and UNDP Resident Representative, called the programme a major step forward that supports the Millennium Development Goals. UNDP helped prepare it and is ready to work with the Government and the international development community to move it forward, he said.
The challenge is to convert "black gold" -- oil -- into "human gold" - people with skills and opportunities, he said, adding that Azerbaijan's most valuable resource is its people. The only effective way to reduce poverty, said Mr. Borsotti, is to improve the business environment, particularly for small and medium sized enterprises, facilitate expansion of non-oil sectors and generate jobs where they are most needed.
UNDP presented a portfolio of projects to support the initiative and is mobilizing support for them. These include projects to assess ways that the State Oil Fund can support the programme, help create small businesses linked to four major cultural heritage sites, and double three regional business support centres to six and link them with an e-commerce network.
Other projects would develop a national employment strategy and pilot initiatives to upgrade productivity and create new jobs, set up regular national labour surveys, produce job market reviews, and monitor progress in poverty reduction.
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