The "Republican Alternative" Party (REAL) has proposed a program to reform local governance ahead of the municipal elections on January 29, aiming to expand opportunities for economic activity at the municipal level. The new program has been developed with consideration of the existing economic problems in the country. The government of Azerbaijan seeks to obtain external loans for its projects, the economic feasibility of which raises doubts.
International financial institutions are hesitant to provide these loans, as Azerbaijan's economy is still under the "euphoria of oil and gas revenues," and its future prospects are not without challenges.
REAL proposes that half of the external loans be secured through municipal bonds. This would require amendments to a number of laws and the establishment of a free exchange market for municipal securities. These bonds could be purchased by investors at market prices in unlimited quantities.
Such a system would allow municipalities to access global financial resources and attract funding for regional development. It would also foster healthy competition between regions. As a result, municipalities would reduce their dependence on centralized subsidies and grants, transforming local authorities into real economic agents.
The essence of the reform is that the selection of economic projects would be based not on the interests of political power, but on the free market. This would also enhance the democratic accountability of municipalities. Moreover, this system would reduce the potential for corruption in both external and internal debt structures. Additionally, projects for financing would be selected with active citizen participation.
Consultative and technical assistance for the implementation of this reform could be provided by the Congress of Local and Regional Authorities of the Council of Europe, as well as by Turkey, which has a long positive track record in this area. REAL believes that the necessary legislative framework can be prepared in 2025, with implementation to begin in 2026.
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1 comment
Elvis
2025-01-07
Такие банки как JPMorgan Chase Goldman уже выстроислись в очередь чтоб финансировать муниципалитет Маштаги.