Azerbaijani population support package more realistic

The heads of the “One Nation, Two States”, which for 25 years have become  a copy of each other in almost all areas, on the same day  announced a package of measures to combat the COVİ-19 coronavirus pandemic. However, there is a difference between them: due to the lack of transparency in the whole Turkey and well-known populism, Mr. R. Erdogan announced the package in an appeal to the nation on television. This is one of the most important ways to maintain a rating.  Ilham Aliyev, also remaining true to tradition, announced the amount of the package of events by signing the corresponding decree.

Packages are also very different in financial terms: simple calculations, taking into account the population as well, show that the Turkish package is 25 times more expensive than the Azerbaijani one.

However, the package of measures announced by Mr. Erdogan raised two more questions: 1) did the amount announced by him provide almost $ 17 billion (excluding devaluation in the future) with real money?

2) Why, as in developed Western countries, to stimulate market revival, financial support is provided not in the form of direct assistance to citizens in cash, but in the form of credit benefits, tax deferrals to support the business world? The opposition claims that the package of $ 17 billion is not secured by money.

In fact, the opposition is right, because Turkey, conducting a secretive war, in addition to its army, also finances the 60,000th Syrian Free Army. Those who follow our publications know that in February 2019, the authorities made an amendment to the law, according to which the Central Bank, untouchable even in difficult periods, was transferred to the Treasury. The main reason why the economy has not yet been in a deep crisis lies precisely in this very “pumping of money”. That is why the statement of Turkey, which is in a state of secretive war, about a package of measures for $ 17 billion in the current situation does not sound very convincing. Very soon, the reality of these promises will be revealed.  Either the measures to be taken in the near future will give the expected result, or it will become clear that they were deprived of the necessary material base.

What about Azerbaijan, which allocated $ 600 million for measures to combat the pandemic? Undoubtedly, this amount is more realistic, and the government of the country can allocate it for the reason that it is not intended to “provide direct financial support to citizens or stimulate the revival of the market”. The experience of the past has repeatedly proved that our government does not grieve about these areas and absolutely cannot show leniency to think about citizens and the market. Therefore, now we have no choice but to wish the current "real $ 600 million" went directly to the fight against the pandemic.

The main reason Azerbaijan cannot directly help citizens and the market may be because the government is cautious. This is a fear of the possibility of a new devaluation in the country. The monetary policy of the Central Bank of Azerbaijan (if it is its policy) has no analogues in the world: foreign currency is kept under oppression for a long time by force and even a slight depreciation of the national currency is not allowed. After some time, when it is already impossible to keep the exchange rate of foreign currencies under pressure, the Central Bank on Saturday or Monday morning will declare, “Sorry, we will depreciate your manats by 70%”; besides, it will blame the citizens for the devaluation. Then again begins the long-term pressing of foreign currency.

Since the Central Bank of Turkey is incomparably more flexible in dealing with foreign currency, there is no danger of a serious devaluation in the republic.

In addition to pandemic, Azerbaijan is once again afraid of the possibility of a serious devaluation; its population is experiencing a double psychological burden. Therefore, there is no choice but to pray to the Almighty that $ 600 million is enough to fight the COVİ-19 coronavirus infection pandemic.