Azerbaijan is located in the Caucasus region and situated at the crossroads of Europe and Western Asia. The country is bordered on the north by Russia and on the south by Iran. Since October 18, 1991, Azerbaijan has been an independent nation. Before the announcement of independence, Azerbaijan was a member state of the Union of Soviet Socialist Republics (USSR). After declaring sovereignty, the country had political instability for several years. In addition, Azerbaijan fought a bloody war over the territorial dispute with Armenia in the late 1980s and early 1990s. As a consequence of these events, economic, political and social development slowed down. However, after the establishment of political stability and ceasefire agreement between the two sides, Azerbaijan entered a new stage of development. With the onset of the COVID-19 pandemic, the country faces further hardship as the decline in oil prices impacts the economy of Azerbaijan and causes a current financial crisis.
The Oil Production in Azerbaijan
To turn Azerbaijan into a powerful state with a sustainable economy, the previous president Heydar Aliyev had an oil-based national development strategy. On September 20, 1994, the Production Sharing Agreement (PSA) was signed between the State Oil Company of Azerbaijan Republic (SOCAR) and 11 foreign oil companies from six nations. In the beginning, the contract covered oil companies such as BP, Amoco, Unocal, LUKoil, Statoil, Exxon, TPAO, Pennzoil, McDermott, Ramco and Delta Nimir. The oil companies represented six countries. These included the U.K., U.S., Russia, Norway, Turkey and Saudi Arabia. The PSA was the first large-scale investment by western companies in any former USSR country. Later on, the agreement got famous and was known as “The Contract of Agreement.” It was a success for Azerbaijan to invite foreign oil companies and benefit from oil production. Because of this achievement, Azerbaijan managed to develop its economy and invest in social programs.
On the other hand, to export oil to the world market, Azerbaijan decided to build the Baku-Tbilisi-Ceyhan pipeline with the help of geopolitical partners. This pipeline transformed Azerbaijan’s oil industry and became operational in June 2006. The overall length of the pipeline is 1768km, and 443km of it crosses from Azerbaijan, 249km in Georgia and 1,076km in Turkey.
The Decline in Oil Prices Impacts Azerbaijan’s Economy
The economy of Azerbaijan is predominantly dependent its oil export. As mentioned above, the agreements with international companies and the successful export of oil to the world market led to the development of Azerbaijan. However, because of oil money, the country could not manage progress in the political sphere. The level of corruption increased, and the government did not fairly distribute oil money among the citizens of Azerbaijan. As a result of the financial crisis in 2014, the economy of Azerbaijan faced severe difficulties. In 2014, the oil price dropped by 59.2% in seven months. On June 20, 2014, the oil price peaked at $107.95 a barrel, but by June, prices plunged to $44.08. In 2014, the GDP per capita in Azerbaijan was $7,891.313, and in 2015, it decreased to $5,500.31. In 2016, the GDP declined to $3,880.739 — the lowest level since 2007. After 2016, the economy of Azerbaijan started to rise again. In 2017, the GDP per capita was $4,147.09.
The Effects of the COVID-19 Pandemic
With the beginning of COVID-19, the economy of Azerbaijan began to face difficulties again. Because of the financial crisis, the prosperity of Azerbaijani citizens decreased drastically. People started to lose their jobs, and prices in the market increased. Also, as oil prices declined, several international companies decided to leave the territory of Azerbaijan. During the financial crisis, the president of Azerbaijan, Ilham Aliyev, said that Azerbaijan should “work and live as if we live in the post-oil era.” It was a strong statement by the president, and it also was the signal of the beginning of a new economic era for Azerbaijan. After the crisis, the government decided to improve the business environment and diversify to non-oil sectors.
Conclusion
As an oil-rich country, it is not surprising that the economy of Azerbaijan is highly dependent on oil revenues. Unfortunately, the government failed to develop other profitable fields for the economy in the last decades. That is why the financial crisis in 2014 increased the level of poverty in Azerbaijan. From 2014 until 2017, the GDP decreased significantly. However, in the latter stages of the financial crisis, the government managed to stabilize the overall situation.
– Tofig Ismayilzada
Photo: Flickr
Philippine COVID-19 Vaccination Set to Escalate
As of late June, the Philippines had only administered 8 million doses. The Philippine COVID-19 vaccination goal is to vaccinate at least 70 million people in the next 5 months. Carlito Galvez, chief of the Philippine COVID-19 vaccine administration, remarked that the new vaccine purchase “will significantly boost our national immunization program and will enable us to realize our goal of achieving herd immunity by year-end.” Vaccine distribution is prioritizing people who work out of their homes, healthcare workers and older citizens.
Struggles in Virus Response
Like much of the world, a second wave outbreak of the virus devastated the Philippines. From March to June 2021, the daily rate of documented infections ranged from 3,000 to 7,000. It hit a peak of 15,310 daily cases on April 2. President Rodrigo Duterte received immense criticism from the international community for this second wave of the pandemic. Although he employed one of the world’s strictest and longest lockdowns, he failed to implement mass testing or a robust vaccination program.
Duterte is already infamous for his troubled human rights record. United Nations High Commissioner for Human Rights Michelle Bachelet described the ongoing situation as “highly militarized.” Unfortunately, according to Time, virus mismanagement is a common trend in authoritarian countries where rulers belittle the COVID threat and refuse to follow science and the advice of health officials. Duterte and rulers like him have gained the label of “medical populists.” Time considers Duterte a “wild card” and stresses that what happens in the Philippines matters elsewhere because the Philippines provides workers throughout the world. Hopefully, the recent Pfizer-BioNTech deal is a step in the direction towards a more humane and effective virus response.
The Path Ahead
The Philippines will have to overcome many obstacles to reach herd immunity for its large population. Manila, the capital, lacks vaccine access, and COVID is surging in several provinces, which complicates vaccine distribution.
Despite these obstacles, in addition to the new purchase of vaccines, the government is consulting with experts on vaccine rollout. A team of medical experts from Israel is in the Philippines supporting the COVID response. Israel is a world leader in vaccine dissemination. Galvez reiterated that “we want to learn from the best practices being implemented in Israel and hopefully, replicate and use them in crafting our country’s policies.” Vaccinating children aged 12-15 is a top priority so Philippine children are now eligible to receive the single-dose vaccine from Pfizer-BioNTech. The Philippines is also hoping to receive 44 million vaccine doses from COVAX, the international vaccine-sharing organization. All these efforts should bolster the Philippine COVID-19 vaccination program.
– Conor Green
Photo: Flickr
Austrian Development Agency Assists South Caucasus
Poverty is an unfortunate way of life for many people living in the South Caucasus, a region that includes the countries of Armenia and Georgia. As of 2018, about 23.5% of Armenia’s population was living below the poverty line. For Georgia, the most recent statistics from 2019 show that 13.3% of its population lived below the poverty line. However, despite the hardships that poverty brings for the people living in the South Caucasus countries, there is a glimmer of hope. Beginning in 1988, the Austrian Development Agency assists countries in the South Caucasus. With this assistance, Armenians and Georgians will have the tools they need for a better life.
Objectives of the Austrian Development Agency
The Austrian Development Agency follows three core objectives: fighting against poverty, working to guarantee peace and protecting the environment. The agency funds and oversees numerous programs intended to address these three objectives. The agency has used a total of 550 million euros to help fund current projects. However, the Austrian Development Agency does not carry out its objectives alone. Often, it partners with other institutions, such as the Federal Ministry for European and International Affairs.
The Austrian Development Agency’s Work in Armenia
About 68% of the Austrian Development Agency’s funding for Armenia goes to the agricultural sector alone. The reason the agency provides so much funding to Armenia’s agriculture is that over a third of Armenia’s population has employment in that sector. After the fall of the Soviet Union, the agricultural sector of Armenia began to suffer. The agency is assisting Armenia by providing funding, knowledge and machinery to promote agricultural productivity.
The Austrian Development Agency’s Work in Georgia
The Austrian Development Agency assists the South Caucasus country of Georgia as well. The agricultural sector employed more than half of all workers in Georgia. The agency helps Georgia’s agricultural sector by providing modern agro-technologies and teaching agro-management techniques. In addition, the agency is trying to promote democratization in the country, using the standards of European institutions to promote democratic values.
The Austrian Development Agency is also working to preserve the forests that cover 38% of Georgia. Forests prevent erosion, maintain the climate and store necessary amounts of water. The agency is promoting sustainable forest and watershed management through education.
Progress in South Caucasus Countries
The Austrian Development Agency assists the South Caucasus countries of Armenia and Georgia in several different ways. It aims to boost residents’ productivity in the agricultural sector, in turn boosting the countries’ economies. Furthermore, in Georgia, it aims to protect forests and to circulate democratic values throughout the country.
– Jacob E. Lee
Photo: Flickr
Examining COVID-19 and EdTech
COVID-19 has profoundly redrawn the global investment matrix, driving a structural shift toward emerging technologies. It is also wiping out capital investments in major sectors such as tourism and the automotive industry. The substantial increase in educational technologies (EdTech) due to COVID-19 could benefit people living in poverty in developing countries.
COVID-19 and EdTech
Because of COVID-19, schools had to close all over the world. More than 1.2 billion children in 186 countries were unable to attend schools as a result of the pandemic. School closures put considerable pressure on educational systems. For example, considering that in many education systems, professors and teachers are often on the chopping block when there is no revenue. Many countries were unprepared for the transition to online distance learning, both in terms of familiarity and access to EdTech. Therefore, a major concern during the pandemic was the widening of the gap for disadvantaged students due to a disparity in access to EdTech. The pandemic not only exposed traditional education systems’ limitations but also social disparities that supporters believe digital learning can help fix.
Growth in digital education is inevitable. The rapid shift away from the classroom has left many wondering whether the growth of online learning will continue after the pandemic. Even before 2020, there was substantial development in EdTech. Global investment hit about $18.66 billion in 2019. With the introduction of virtual tutoring, language applications, video conferencing and online learning technologies, experts agree that the potential demand for online education can only expand.
The Future
It is difficult to envision post-pandemic learning without EdTech. In addition to direct learning applications, EdTech can promote resource sharing, create and grade quizzes and assist with homework. In UNESCO’s flagship Digital Technologies in Education event, Salman Khan, the founder of Khan Academy, shared his experience during the pandemic: he created additional online educational tools and stated that “The digital divide is the number one headline of COVID-19.”
Therefore, it is essential to build for the rebuilding phase. The pace of transition provides an impetus to reimagine the future of education and is inclusive of all students worldwide. Barbara Holzapfel, Vice President of Microsoft Education, contributed to this discussion by saying that “COVID-19 has accelerated the transformation in education that was well underway and we’ve seen years’ worth of change in just a matter of weeks.”
During 2020, COVID-19 and EdTech have forced many to consider that future. Education systems can emerge from the crisis stronger and more resilient to future disruptions. New solutions will build more gender-equal education systems and digitize educational content. Although the way to address educational inequalities is still a challenge, EdTech could provide more flexibility in addressing gaps and inequality in the education system compared to traditional education. Change is possible if policy and research agendas occur properly.
– Aining Liang
Photo: Flickr
5 Facts About the COVID-19 Vaccination in Bahrain
5 Facts About the COVID-19 Vaccination in Bahrain
A Model of Diligence
Throughout the COVID-19 pandemic, Bahrain has been a consistent model of diligence and effective leadership amid the ongoing health crisis. Furthermore, despite recent surges in the virus, Bahrain is proactive in mitigating the spread of the virus by maintaining travel restrictions for particular countries and offering booster shots to vulnerable citizens. Ultimately, Bahrain’s commitment to adhering to health guidelines and ensuring vaccine accessibility are key factors in mitigating the spread of COVID-19 and reaching herd immunity.
– Samuel Weinmann
Photo: Unsplash
The Armenia Fund Helps Rebuild Armenia
The Armenia Fund was established shortly after the Nagorno-Karabakh war between Azerbaijan and Armenia in 1994 following Armenia’s independence from the Soviet Union in 1991. The conflict had left the newly independent nation in shambles and needing assistance. The NGO based out of Los Angeles sought to alleviate the lasting repercussions of the recent conflict. Its primary focus was to connect the large Armenian diaspora population to its homeland in order to further develop Armenia. With an Armenian population of roughly three million, the estimated seven million Armenians living in other countries around the world are crucial to assembling an improved Armenia. With this goal in mind, the Armenia Fund plays a vital role in extending support to Armenia.
Armenia Fund Supporters
During the recent reoccurrence of the conflict between Armenia and Azerbaijan in 2020, the Armenia Fund provided $80 million in immediate relief to the Armenian people. The imminent need for access to food, medical supplies and clean water was widespread as the war had lasting effects on the country. Many donations were influenced by the awareness raised from Kim Kardashian’s $1 million pledge to the Armenia Fund, along with the support from several other celebrities. Kim Kardashian is Armenian through her late father, Robert Kardashian. She advertised the efforts of the Armenia Fund and invited her fans to sponsor the nonprofit. Other prominent contributors consist of the Armenian Missionary Association of America, the Armenian Assembly of America, Inc. and The Manoogian Simone Foundation.
Armenia Fund Projects
Projects initiated by the Armenia Fund include rebuilding schools and churches in the nation. The NGO strives to supply resources to as many Armenians as possible while rendering aid to the Nagorno-Karabakh region. A recently completed project is the reconstruction of the Talish village. In restoring the once destroyed village, the Armenia Fund revived the historic and ancient town. Several other villages and buildings destroyed or affected by past war conflicts are primary areas the fund intends to repair.
US Assistance to Armenia
In addition to the Armenia Fund, the U.S. has long provided Armenia with support. The U.S. Embassy highlighted that the U.S. has given $2 billion in assistance funding to Armenia since 1992, aiming to develop Armenia’s democracy and sustain its economy. A 1998 foreign aid bill provided more than $45 million straight to the Nagorno-Karabakh region. At the time, the U.S. was the only country to grant such a relief package. More recent assistance includes the Valadao Amendment in 2017 and the Cox Amendment in 2019, which offered direct aid from the U.S. to the Nagorno-Karabakh enclave. The legislation provided more than $1 million in direct relief. The Speier Amendment in 2019 was another notable contribution, as it allocated $40 million to democracy programs.
Armenia has had no shortage of challenges in establishing its planned democracy and strengthening itself after gaining independence from the Soviet Union. The Armenia Fund, principally supported by Armenians living outside the country, has helped shape a better Armenia. The U.S. has also been crucial, helping Armenia’s progression through foreign aid. The Armenia Fund continues to serve as a meaningful surveyor to sustain Armenia’s flourishment. The nonprofit supports Armenia by reaching the large diaspora population and continuously fighting for a more stable Armenia. Rebuilding the country physically is an investment in the Armenian people.
– James Van Bramer
Photo: Flickr
Humble Bundle: COVID-19 Relief in India and Brazil
What is Humble Bundle?
Humble Bundle is an online video game store founded in 2010. Since then, the video game bundles that give the company its name have raised money for a wide variety of charitable efforts, from the World Wildlife Foundation to Make-A-Wish. The funds primarily come through the sale of popular video games along with other entertainment items like comic books.
Humble Bundle has garnered almost $200 million through bundles. These often include selections from popular gaming franchises like Civilization, Saints Row and BioShock. Typically a portion of each bundle is donated either to the company’s featured charity of the month or the purchaser’s chosen charity. However, Humble Bundle took a bit more of a drastic approach in May 2021 to help several organizations in India and Brazil during the COVID-19 outbreak.
Humble Bundle created the live “Humble Heal: COVID-19 Bundle” from May 12, 2021, until May 19, 2021, in order to support four different charities working in Brazil and India during the ongoing pandemic. More than 54,000 bundles were sold. India recently experienced a record one-day COVID-19 death toll of more than 6,000 deaths on June 10, 2021. Around the same time, Brazil neared 500,000 overall deaths due to COVID-19. The relief efforts of Humble Bundle and other charities are vitally important for COVID-19 relief.
Humble Bundle COVID-19 Relief Support
The charities supported by the bundle primarily focus on providing medical equipment and care to those in need. For example, in February 2021, Direct Relief granted more than $500,000 in aid to Amazonas in Brazil for roughly 350 oxygen concentrators. The Brazilian state desperately needed oxygen concentrators for local medical facilities and people isolated in rainforests. Similarly, in April 2021, Direct Relief donated $5 million toward the purchase of oxygen concentrators in India as well.
According to a recent report by Doctors Without Borders, countries like Brazil were forced to ration treatments or prioritize some patients over others due to a lack of resources. Humble Bumble supported Doctors Without Borders with donations to ensure that essential health services continue with the necessary medical resources.
GiveIndia also incorporates oxygen supply efforts into its pandemic relief. The charity raised more than $6 million to help boost the oxygen supply in India. GiveIndia also provided financial support for low-income families who lost employed family members during the pandemic. Furthermore, the organization supplied food for those struggling with hunger.
The International Medical Corps, another organization supported by Humble Bundle, is also working to strengthen the healthcare system in India, provide crucial medical supplies and deliver personal protective equipment. Additionally, the nonprofit is working to combat vaccine hesitancy in the country to ensure a successful vaccine rollout throughout the country.
The Impact of Humble Bundle’s Efforts
Humble Bundle supports nonprofits like International Medical Corps and Direct Relief in a unique and creative way. It not only provides significant humanitarian funds to the organizations but also spotlights the organizations and increases awareness and engagement through its platform.
“The generosity received as a result of Humble Bundle’s effort is deeply inspiring and will serve as a force-multiplier to get more aid into these areas to improve the health and lives of those who are most vulnerable,” says Heather Bennett, vice president of Partnerships and Philanthropy at Direct Relief.
The nearly $1.2 million raised by Humble Bundle will certainly help these nonprofits continue their impactful work. This will provide COVID-19 relief in India and Brazil to help hard-hit communities recover and rebuild.
– Brett Grega
Photo: Flickr
4 Facts About Women’s Rights in Côte d’Ivoire
4 Facts About Women’s Rights in Côte d’Ivoire
Upholding Women’s Rights
The Organization of Active Women in Ivory Coast (OFACI) is a non-governmental organization founded in 1999 that focuses on fighting for women’s rights in Côte d’Ivoire. Its goals include increasing the literacy of girls and encouraging women’s leadership in social, political and economic environments. By creating programs to educate and support women, OFACI hopes to eliminate gender-based violence and discrimination against women. OFACI has 10 observation locations across the country that monitor and report on women’s rights in Côte d’Ivoire on a monthly basis. The organization has recently been pushing for, at minimum, a 30% representation of women in politics.
Recent progress in the country includes a marriage bill that was approved by the Council of Ministers of Côte d’Ivoire in 2019. Its main goal is to legislate equality between men and women in marriage through specific provisions. These solutions include new rules for the nullity of marriage, inheritance rights and marital property distribution. Another aim of the bill is to increase the age of legal marriage. This legislative progress provides hope for women’s rights in Côte d’Ivoire.
UN Women Shea Butter Program
Another example of an innovative program that targets women’s empowerment is a climate-smart agricultural program launched by U.N. Women in Côte d’Ivoire in 2017. The program, funded by the Government of Japan, seeks to empower rural women in the shea butter production sector. The traditional method used to produce shea butter requires intense labor. The resulting product fails to meet international quality standards so the women who work in this field struggle to make high profits. Since October 2017, U.N. Women trained 300 women on improved production practices and upgraded equipment in manufacturing facilities to meet international standards. The program also assisted women in the shea butter industry with financing and market access.
Despite the discrimination against women in Côte d’Ivoire, change is coming. NGOs and the government are stepping up to ensure greater equality among women and men and uphold the rights of women in the country.
– Virginia Arena
Photo: Flickr
SokoFresh: A Solar Energy Initiative to Reduce Food Waste
The Negative Impact of Food Waste
Over the next 30 years, Africa’s population is estimated to increase from 15% to 25% of the world population. However, as the population grows, dire food shortages are likely to occur. One way to prevent this is by reducing food waste. Globally, more than 30% of food produced for human consumption is wasted or discarded. In Africa, food loss happens predominately in the production and distribution phases of the food system. In developed countries, more than 40% of food loss “occurs at the retail and consumer levels.”
To combat food waste in Africa, post-harvest storage is a sustainable method for preventing food loss. SokoFresh has constructed a post-harvest storage system that specifically utilizes solar energy. The method is simple as it makes for cost-effective and environmentally friendly food storage. This model can provide farmers and aggregators access to cold storage on “a need basis” using 100% solar energy.
At this point, there is no long-term data to monitor improvements in the region’s food waste. Yet, it is clear that current projects from sustainable companies such as SokoFresh have the potential to benefit Africa’s economy. Even a 1% reduction in food post-harvest losses could lead to yearly fiscal revenue of $40 million, mainly to the benefit of farmers. Solar energy and sustainable technology solutions are thus feasible methods that increase profitability and improve environmental impacts in developing nations.
Solar Energy’s Role
SokoFresh’s solar energy initiative centers on a business model that gives farmers in need access to storage for their produce. Built by the social venture studio Enviu as part of its FoodFlow program, SokoFresh can provide adequate storage conditions that supply significant market opportunities. Smallholder farmers are responsible for 90% of Kenya’s agricultural produce but lack the cold storage access that large-scale farms have. The smallholder farmers who grow avocado, mango and French beans help test the “pay-as-you-go cold storage units.”
Another solar energy innovation utilizes food waste in its technology. AuREUS is an invention created by Carvey Maigue from Mapua University in the Philippines. Utilizing “recycled crop waste,” Maigue created a compound mixed with resin to make panels that collect UV light. The panels can turn the captured light into electricity. Solutions like these provide alternative methods to traditional coal and gas methods of power. Thus, AuREUS and SokoFresh bring great promise for the future of sustainable energy.
The Future of SokoFresh
Because solar energy is the most affordable energy source, a solar energy initiative such as that of SokoFresh provides a hopeful alternative to developing countries experiencing food loss and waste. While international efforts to reduce hunger in sub-Saharan Africa have increased, most of the money has focused on boosting crop yields. A shift is now underway as companies are aiming to reduce losses instead of increasing production. SokoFresh provides an innovative solution to this problem by harnessing the power of solar energy. The future of solar energy in Kenya is hopeful. With more exposure and funding, SokoFresh can eliminate food waste and improve the nation’s wealth.
– Addison Franklin
Photo: Flickr
9 Facts About Disability and Poverty in China
9 Facts About Disability and Poverty in China
Looking Ahead
While poverty in China affects a significant portion of its population, it has disproportionately affected individuals with disabilities due to the unique economic and social disadvantages they face. From lack of employment opportunities, lower-quality education and poor healthcare access to the persisting stigma associated with disabilities and rampant discrimination, challenges for people with disabilities are numerous in this country. China can continue to support its disabled community through education initiatives, economic opportunities and protective legislative actions.
– Philip Tang
Photo: Unsplash
How the Decline in Oil Impacts Azerbaijan’s Economy
The Oil Production in Azerbaijan
To turn Azerbaijan into a powerful state with a sustainable economy, the previous president Heydar Aliyev had an oil-based national development strategy. On September 20, 1994, the Production Sharing Agreement (PSA) was signed between the State Oil Company of Azerbaijan Republic (SOCAR) and 11 foreign oil companies from six nations. In the beginning, the contract covered oil companies such as BP, Amoco, Unocal, LUKoil, Statoil, Exxon, TPAO, Pennzoil, McDermott, Ramco and Delta Nimir. The oil companies represented six countries. These included the U.K., U.S., Russia, Norway, Turkey and Saudi Arabia. The PSA was the first large-scale investment by western companies in any former USSR country. Later on, the agreement got famous and was known as “The Contract of Agreement.” It was a success for Azerbaijan to invite foreign oil companies and benefit from oil production. Because of this achievement, Azerbaijan managed to develop its economy and invest in social programs.
On the other hand, to export oil to the world market, Azerbaijan decided to build the Baku-Tbilisi-Ceyhan pipeline with the help of geopolitical partners. This pipeline transformed Azerbaijan’s oil industry and became operational in June 2006. The overall length of the pipeline is 1768km, and 443km of it crosses from Azerbaijan, 249km in Georgia and 1,076km in Turkey.
The Decline in Oil Prices Impacts Azerbaijan’s Economy
The economy of Azerbaijan is predominantly dependent its oil export. As mentioned above, the agreements with international companies and the successful export of oil to the world market led to the development of Azerbaijan. However, because of oil money, the country could not manage progress in the political sphere. The level of corruption increased, and the government did not fairly distribute oil money among the citizens of Azerbaijan. As a result of the financial crisis in 2014, the economy of Azerbaijan faced severe difficulties. In 2014, the oil price dropped by 59.2% in seven months. On June 20, 2014, the oil price peaked at $107.95 a barrel, but by June, prices plunged to $44.08. In 2014, the GDP per capita in Azerbaijan was $7,891.313, and in 2015, it decreased to $5,500.31. In 2016, the GDP declined to $3,880.739 — the lowest level since 2007. After 2016, the economy of Azerbaijan started to rise again. In 2017, the GDP per capita was $4,147.09.
The Effects of the COVID-19 Pandemic
With the beginning of COVID-19, the economy of Azerbaijan began to face difficulties again. Because of the financial crisis, the prosperity of Azerbaijani citizens decreased drastically. People started to lose their jobs, and prices in the market increased. Also, as oil prices declined, several international companies decided to leave the territory of Azerbaijan. During the financial crisis, the president of Azerbaijan, Ilham Aliyev, said that Azerbaijan should “work and live as if we live in the post-oil era.” It was a strong statement by the president, and it also was the signal of the beginning of a new economic era for Azerbaijan. After the crisis, the government decided to improve the business environment and diversify to non-oil sectors.
Conclusion
As an oil-rich country, it is not surprising that the economy of Azerbaijan is highly dependent on oil revenues. Unfortunately, the government failed to develop other profitable fields for the economy in the last decades. That is why the financial crisis in 2014 increased the level of poverty in Azerbaijan. From 2014 until 2017, the GDP decreased significantly. However, in the latter stages of the financial crisis, the government managed to stabilize the overall situation.
– Tofig Ismayilzada
Photo: Flickr