Why is the level of social welfare low in Azerbaijan?

Azerbaijan finds itself grappling with challenges in social welfare, as revealed by the latest annual report from the Social Progress Index. Ranking 99th out of 170 countries with a score of 62.67 points, the country faces critical issues in non-economic aspects of social development, prompting a closer examination of underlying factors.

The Scandinavian countries of Denmark, Norway, and Finland lead the index, underscoring a substantial gap between Azerbaijan and global leaders. Among its neighbors, Azerbaijan lags behind with Georgia at 52nd and Armenia at 50th. Turkey, Russia, Iran, and Turkmenistan secure varying positions, emphasizing diverse social landscapes in the region.

Economist Elchin Rashidov considers the question of Azerbaijan's low Social Progress Index a complex issue, suggesting it is rooted not only in incompetence but also in conscious policy decisions. In an interview with The Difficult Question program, he highlights concerns over policy prioritization, pointing to instances like the Ministry of Education, where bureaucratic interests impede the essential role of education in societal progress.

Rashidov emphasizes the pivotal role of per capita income in the index and criticizes the lack of attention to income distribution statistics. Notably, he observes that per capita incomes in Azerbaijan have fallen below those in Georgia and Armenia. The economist contends that Azerbaijan's economic development lacks inclusivity, being primarily bureaucratic and tied to officials.

The intertwining of business with bureaucracy impedes the growth of independent medium and large enterprises, resulting in an uneven distribution of income. This, Rashidov argues, hinders meritocracy and stifles social mobility, creating a societal imbalance and limiting the country's social well-being.

The regional disparities, particularly between the capital, Baku, and other areas, contribute to a significant "brain drain" as individuals seek better opportunities in urban centers. Rashidov critiques the Baku Master Plan, urging a redirection of investments toward creating vibrant cities in the regions rather than perpetuating the imbalance between the capital and other areas.

In his assessment, Rashidov sees a need for comprehensive urbanization in the regions, emphasizing the importance of improving the quality of life outside the capital. He suggests that addressing disorder and haphazard development in Baku is key to achieving social progress.

Ultimately, the low level of social welfare not only hampers the immediate well-being of citizens but also contributes to a "brain drain," diminishing the long-term development potential of Azerbaijan. Rashidov's analysis underscores the urgency for strategic reforms that prioritize inclusive economic development, regional empowerment, and a more balanced distribution of resources to foster sustainable social progress.