Step on the eve of Davos

President Ilham Aliyev takes another step in the direction of the change of economic course that led the country to severe financial crisis after the collapse of oil prices, at the peak of which parasitized the authoritarian system. 

Just a week after the meeting  of the Cabinet of Ministers on January 10  at which  the president reported the successes of his administration's economic policy, Aliyev held a regular demonstrating meeting  among narrow circle of 12  invited , and sends the new positive impulses to society which is waiting for changes.

President hastened to correct his mistake on the declaration of the successful development of the country at the meeting on 10 January. The impoverished society which has lost its waymark has been waiting from him the program of actions to overcome the crisis.  And the subsequent spontaneous and permanent protests of citizens in socially tense regions of the country have become a warning about the growth of the explosive situation in the case of the continuation of the current policy of stagnation.

Two meetings   held last week differ greatly by their messages to society. The first meeting was an attempt of the government to create the illusion of stability and the promise of change in the near future; the second meeting was more concrete and implies clear steps to reform the system. It was learned that with the participation of international experts is preparing a broad program of privatization with the participation of foreign and local investors, and steps are being taken to economic recovery and the improvement of the business climate, to regulate the banking sector, rehabilitation of problem banks, issuance of government bonds, the Deposit Insurance business support, lending, mortgage construction and etc.

On the same day were published the first series of decrees in the field of investment incentives, which are designed to prove the sincerity of the government. However, once again it is a worrying fact that for the preparation of the implementation of the tasks more than three months are given, which casts doubt on the full adequacy of assessment of the situation.

Hasty announcement of the new economic policy yet has no real content in the form of a program of action shows that the government still does not have the political will to implement reforms and take impulsive steps under increasing public pressure and the presence of the growing threat of external isolation of the regime by the Western partners. Thus, according to the latest data, all controlled media have been instructed to stop defamation of the US and its allies, and switch to the formation of a positive social background against Washington. In addition, recent reformist theses at a meeting held on 18 January can be used by Aliyev as an indulgence to visit the Davos Economic Forum and meeting with US Vice President Joseph Biden, who will be informed about the first results achieved after the meeting of Azerbaijani President with the US president at the G-20 summit in Antalya in October last year.