Azerbaijan : Public Expenditure Review

Azerbaijan has experienced robust economic growth during the past seven years, aided by its oil sector development. Nevertheless, poverty is still pervasive and social indicators have deteriorated. The oil and gas windfall will be of undoubted benefit to the country and its citizens if combined with a very careful macroeconomic policy and fiscal stance, as well as steadfast implementation of the structural reform program and poverty reduction strategy. The experience of other resource rich countries has often been disappointing and left large strata of the population in continued poverty. The main challenge for Azerbaijan is to design and implement a policy agenda that leads to poverty reduction and improves incomes as well as equity, while maintaining macroeconomic and financial stability. This Public Expenditure Review (PER) focuses on the public expenditure part of the overall policy agenda. Its main objective is to provide a framework for more efficient use of public resources and more effective poverty reduction efforts. This framework is designed to be consistent with the maintenance of overall macroeconomic stability and with sustainable economic growth in the non-oil sector. The macroeconomic achievements over the past five years have been encouraging. Continuing these achievements, however, may present a greater challenge to the authorities in the coming decade. The relatively speedy accumulation of fiscal revenues related to the oil and gas windfall will create heavy spending pressures. Using these funds unwisely or out of the context of a sound vision of the country's sustainable economic development path will create macroeconomic instabilities, inefficient and non-competitive non-oil activities, or both. The basic conclusion and simple recommendation of this PER is that Azerbaijan follow a fiscal strategy consistent with sustainable development of the non-oil sector, while over time mending institutional weaknesses and structural deficiencies, and investing in its people.

Bibliographic Details

Main Author:	World Bank
Format:	Public Expenditure Review biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2003-04-03
Subjects:	ADJUSTMENT POLICIES, ANALYSIS PROCESS, ANALYTICAL WORK, ANNUAL GROWTH, ASSET MANAGEMENT, AUDITS, AUTHORITY, BALANCE OF PAYMENTS, BARREL, BUDGET MANAGEMENT, BUDGET SYSTEM, BUDGETARY EXPENDITURES, BUSINESS ENVIRONMENT, CAPACITY BUILDING, CAPITAL INVESTMENT, CASH TRANSFERS, CITIZENS, CIVIL SOCIETY, CPI, CURRENCY UNIT, DATA COLLECTION, DEBT, DEVELOPMENT ECONOMICS, DEVELOPMENT GOALS, DEVELOPMENT POLICIES, DONOR COMMUNITY, ECONOMIC COOPERATION, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC MANAGEMENT, ECONOMIC PERFORMANCE, EMPIRICAL EVIDENCE, EMPLOYMENT, ENTERPRISE RESTRUCTURING, EXCHANGE RATE, EXCHANGE RATES, EXECUTION, EXPENDITURE ANALYSIS, EXPENDITURE CUTS, EXPLOITATION, EXTERNAL DEBT, EXTREME POVERTY, FINANCIAL INTERMEDIATION, FINANCIAL MECHANISM, FINANCIAL SECTOR, FISCAL, FISCAL DECENTRALIZATION, FISCAL DEFICIT, FISCAL MANAGEMENT, FISCAL POLICIES, FISCAL POLICY, FISCAL REVENUE, FISCAL REVENUES, FISCAL STANCE, FISCAL SUSTAINABILITY, FOREIGN DIRECT INVESTMENT, FOREIGN EXCHANGE, FORMAL ECONOMY, GAS DEVELOPMENT, GAS EXPORTS, GAS EXTRACTION, GAS FIELD, GAS OUTPUT, GAS PIPELINE, GAS PRICES, GAS PROJECTS, GAS RESERVES, GAS RESOURCES, GAS SECTOR DEVELOPMENT, GAS SECTORS, GNP, GOVERNMENT EXPENDITURES, GOVERNMENT REVENUES, GOVERNMENT SPENDING, GOVERNMENTAL ORGANIZATION, GROWTH RATE, GROWTH RATES, HARD BUDGET CONSTRAINTS, HEALTH STATUS, HUMAN CAPITAL, HUMAN DEVELOPMENT, INCOME, INFLATION, INSTITUTION BUILDING, INSTITUTIONAL ARRANGEMENTS, INSTITUTIONAL CAPACITY, INSTITUTIONAL FRAMEWORK, INSTITUTIONAL REFORM, INSTITUTIONAL REFORMS, INSTITUTIONAL WEAKNESSES, INTEREST RATES, LABOR MARKET, LIVING STANDARDS, LOCAL GOVERNMENT, LONG RUN, MACRO POLICY, MACROECONOMIC CONDITIONS, MACROECONOMIC FRAMEWORK, MACROECONOMIC MANAGEMENT, MACROECONOMIC POLICY, MACROECONOMIC STABILITY, MACROECONOMIC STABILIZATION, MARKET ECONOMY, MEDIUM TERM, MINERAL, MINISTRY OF FINANCE, MONETARY STABILIZATION, NATIONS, OIL, OIL AND GAS, OIL AND GAS SECTOR, OIL COMPANIES, OIL COMPANY, OIL FIELDS, OIL PRICE, OIL PRICES, OIL PRODUCTION, OIL SECTOR, PETROLEUM, PIPELINE, POLICY CHOICES, POLICY FRAMEWORK, POLICY MEASURES, POLICY STANCE, POLITICAL ECONOMY, POOR CHILDREN, POVERTY ASSESSMENT, POVERTY COMPARISONS, POVERTY LINE, POVERTY RATE, POVERTY REDUCTION, POVERTY REDUCTION STRATEGY, PRICE STABILITY, PRIORITY AREAS, PRIVATE CONSUMPTION, PRODUCTIVITY, PRODUCTIVITY GROWTH, PUBLIC EXPENDITURE, PUBLIC EXPENDITURE MANAGEMENT, PUBLIC EXPENDITURE REVIEW, PUBLIC EXPENDITURES, PUBLIC FINANCE, PUBLIC FINANCES, PUBLIC INVESTMENT, PUBLIC PROCUREMENT, PUBLIC RESOURCES, PUBLIC SECTOR, PUBLIC SERVICES, PUBLIC SPENDING, PUBLIC °° SECTOR, REAL EXCHANGE RATE, REAL INTEREST RATES, REAL TERMS, REDUCING POVERTY, REFORM PROGRAM, RENT-SEEKING BEHAVIOR, RESOURCE ALLOCATION, RESOURCE CONSTRAINTS, RESOURCE CURSE, RICH COUNTRIES, RURAL AREAS, RURAL INFRASTRUCTURE, RURAL POVERTY, SAVINGS, SECTOR REFORMS, SECTORAL ALLOCATIONS, SOCIAL EXPENDITURES, SOCIAL INDICATORS, SOCIAL PROTECTION, SOCIAL SECTORS, SOCIAL SERVICES, STATE PROCUREMENT, STRUCTURAL ADJUSTMENT, STRUCTURAL CHANGE, STRUCTURAL REFORM, SUSTAINABLE DEVELOPMENT, TAX REVENUES, TECHNICAL ASSISTANCE, TRANSITION PROCESS, URBAN AREAS, URBAN WORKERS,
Online Access:	http://documents.worldbank.org/curated/en/2003/04/2274988/azerbaijan-public-expenditure-review http://hdl.handle.net/10986/13825
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