It�s necessary to proceed from structural to institutional reforms.

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-Natig bey, President abolished a number of state agencies. He told the latest meeting that structural reforms would bhe casrried out. Can we take it that the process has started?

- As a matter of fact, the decrees and a previous statement to the Cabinet of Ministers about forthcoming structural changes in the system of management are none other than first steps to this end. It should be rememberred that idential structures, various agencies and departments had already been set up in the country. But there is a serious difference: if earlier, when creating a new agency or organization, previous, traditional structures maintained their powers and functions.

In other words, there happened to be a certain replication and formation of parallel structures. However, today, the Ministry of Defense Industry has fully been abolished and instead, a new joint stock company "Azersilah" set up. Of interest is the fact that it is public limited company whose shares may be owned not only by the state (as distinct from closed corporations). This gives grounds to believe that companies of other countries may join it in future.

-President told the meeting of the Cabinet of Ministersна that "today the structure of administration has become old-fashioned, so a new structure of management is needed today, more flexible, more compact, more goal-oriented. The point is that news structures are created year in year out. At first, it is not noticeable... But then we see that our structure of management is overmanned. The situation worldwide is opposite: the management is becoming flexible, goal-oriented with a small number of workers and a large work to be done. However, our system of management is overmanned". What do you think, is it possible to attain this goal in Azerbaijan?

- Numerous discussions were held, articles written and comments of independent experts published concerning overmanned state apparatus. Official data are illustrative that 900, 000 out of nearly 1, 600, 000 are employed in state and budgetary organizations. This is an eloquent testimony to the overmanned budget and state apparatus. The problem is that it was President who adopted a decision on the creation of numerous parallel structures. And it was the state that issued decrees on their establishment. There was no need in creating these structures and thus overmanning, so it was possible to avoid it from the very start.

- Abolished structures included jobs, centers run by intra-governmental forces, so their liquidation will cause discontent. Is it possible to deal the issue?

- A good question. Of course, there"ll be disappopinted persons. The question is that various affinity groups have taken shape in quite some time in the abolished traditional or close-minded institutions. Making use of fraudulent methods - corruption and bribery, they succeeded in amassing riches. The fact that these groups could not kept their nose out of extortion and plunder increases the risk of rapid emergence of strongly discontented masses.

It should be remembered that the situation mentioned above may lead to the formation of strongly discontended people around influential medium- and high-level officials. Of growing interest are forms of manifestation of the dissatisfaction. It is highly unlikely that there will be open protest against reforms; however, there remains probability of certain protest or support of oppositional strata. It"s a grave matter, so we are expected to witness landmark cases and events before long.

- It is worth pointing out that the budget-2019 provides appropriate funds for abolished structures. It looks like that a decision on liquidation of these institutions sprang suddenly or kept secret by the authorities. What version is the most probable?

- Inclusion of structures later abolished into the budget gives grounds to claim that forthcoming changes have been discussed in a narrow circle. For example, 4 mln manats were allocated from the budget-2019 for the Science Development Fund under President of Azerbaijan that was later abolished. It is probable that a decision on changes was adopted in privy and led no to serious intrapower debates. Date was not stated erarlier and, hence, ignored in the budget parameters.

Note: it was planned to allocate funds from the national budget-2019 as follows: for the Center of strategic studies under President of Azerbaijan - 2, 271, 488 manats, Knowledge Fund - 835,316 manats,State Agency for RenewableEnergy resource - 4, 600,000 манатов и Фонду развития науки при президенте Азербайджана - 4 млн. 36 тыс. 756 маnats. The Fund was later liquidated and meant to be reconstructed on the basis of self-financing principles.

- Certain circles of the West reported that serious reforms will be held in Azerbaijasn following the easrly Presidential elections. However, it took no place after the said elections. Are the current reforms a delated confirmation of the rumors above?

-It"s too soon to call it a serious reform. True, serious steps were expected to take place after the Presidential elections. Note that serious reforms are feasible if there are appropriate legislative movements. The point is that there were tens of structures of this kind which were set up under Presidential decrees but later abolished. It is essential to create legislative principles, perhaps, on the constitutional basis to start sustainable reforming process.

I think that there is need in holding a referendum on constitutional changes. To make managerial and system changes invariable, it is imperative to reflect them in the legislation and the Constitution. A question arises: will these changes remain unchaged.

- Many people are saying that the problem stems from the very system and that nothing will change even if reforms are implemented. What"s your view on the subject? Is it possible to change the system and the management through implementing reforms of this sort? What areas are to be reformed? What to begin with? Your suggestions?

- If you look at root of countries to the extent analogues thereto, it is easily noticeable that serious structural and managerial reforms start, this may sound strange, with judicial and law-enforcement system. This can be demonstrated in Singapore, South Korea, Chile, Taiwan, Japan, etc. Before making changes, they carried out reforms in law-enforcement and judicial system.

First of all, they created independent judicial authority and thus contributed to the progress in economy. It was not sufficient. Next came political reforms, including the expansion of local self-government, greater freedom to mass media. In case of Azerbaijan with its tough vertical Presidential rule, it is essential to redefine the Parliament and convert it into restraining and equalizing force.

In other words, everything should proceed in parallel and sequential manner and thus contribute to the rehabilitation of economy. It is impossible to succeed in implementing economic reforms without effective system of fair court. Note that judicial authority and law-enforcement bodies along with philosophy of masnagement system have to be brought into conformity with reforms. For this to happen, it is essential to go to considerable lengths. For this to happen, it is necessary to start with constitutional changes and end in mentality changes.