Experts Talk about "Dutch Disease" in the Economy of Azerbaijan

In structural terms in the processing sector of the economy of Azerbaijan for the last 6 years, there was a trend of decline.

Experts believe that this may be a symptom of the "Dutch disease" in the background of the dominant role of the oil sector.

According to the committee, in comparison with 2005, in 2011 the number of processing industry enterprises decreased by 9.1% (182 units), and dropped to the level of 1,828. Only in 2011, 81 of them closed. The trend of reducing the number of processing plants has been since 2008, when the number of these enterprises reached 2,149.

In parallel also reduced the number of employees in the manufacturing industry workers. If in 2005, worked here 101.6 thousand people, in 2011 this figure had fallen to 96 thousand people. It is noteworthy that prior to 2008 the number of employed in the manufacturing sector of the economy of employees reached 109 thousand people.

The expert economist from the National Budget Group Kenan Aslanli told Turan that this factor, as well as increased activity in the service sector and the strengthening of the national currency, is in favor of the manifestation of the "Dutch Disease".

According to the expert of the Center for Economic Initiatives Samir Aliyev, the government and the central bank should maintain a loose monetary policy, which would resist the cheap foreign goods on the local market, but also open up avenues for the competitiveness of domestic goods in foreign markets.

Aliyev also said that one of the causes of negative processes in the process industry is a factor of monopoly and unfair competition. Small businesses, for various reasons operate at a loss and are therefore forced to suspend its activities.

Another economist, expert of the aid of a free economy Salman Najafov indicates that along with the monopolization of the market can not be overlooked, and natural factors related to the economic crisis. In a moment of crisis, when prices are not stable, access to finance is complicated and economic links are broken - consider bankruptcy of many small and even medium-sized and large enterprises.

Note that in 2005-2011 the industrial output of the manufacturing sector grew from 3 billion to 5.9 billion manat. - 08B-