American analyst suggests to Baku: "Forget about hosting grandiose global events, launching mass projects"
Gal Luft, co-director of Institute for the Analysis of Global Security, commented on Azerbaijan's shock-and-awe move on Manat's devaluation and becoming a casualty of plunging oil prices.
"Its time to wake up... When oil and gas account for 95 percent of a country's exports and 75 percent of government revenues its only a matter of time before you get hit by an economically devastating commodity bust," he said in an interview with TURAN's Washington D.C. correspondent.
The Central Bank of Azerbaijan (CBA) has abruptly devalued the country's currency against the dollar and the euro. Baku officials said the devaluation was aimed at "stimulating the diversification of Azerbaijan's economy, strengthening the international competitiveness of the economy and its export potential, and guaranteeing stability in the balance of payments."
How disruptive Manat dive is and what lessons should Baku take away from current economy reality?
Answering to this question, Luft said, the lesson for the Azeri government is that the country "must insulate itself from the fluctuations in commodity markets and move much more expeditiously to diversify its economy."
"Forget about hosting grandiose global events and launching mass projects... Azerbaijan main project should be to drill less into the ground and more into the brains of the people," he added.—0--
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- Politics
- 25 February 2015 14:36
Politics
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The Ministry of Foreign Affairs of Moldova has decided to unilaterally terminate the Moldovan-Russian agreement from 1998 on the creation and operation of cultural centers.
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By the order of the head of state, Rufat Mahmud has been appointed the new head of the historical and architectural reserve "Icheri Sheher" – the historic center of Baku.
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On February 13, the Appeal Court did not satisfy the defense's appeal against the decision of the Khatai Court regarding the arrest of journalist Shahnaz Beylargizi. According to the lawyer, the journalist herself did not participate in the trial due to poor health. The defense intends to submit a petition to replace the arrest with house arrest.
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Azerbaijan will limit 'Sputnik Azerbaijan' and 'BBC News Azərbaycanca' editorial offices. This was reported by the country's pro-government media on 13 February, citing an informed source.
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