Judicial reform - the basis of economic reforms

-Akram Bey, as you know, President Ilham Aliyev signed a decree on expanding the functions and structure of the Ministry of Economy. According to the decree, the Ministry of Taxes, the State Committee for Property Issues, the State Committee for Antimonopoly Policy and Consumer Market Control in the corresponding state status are included in the structure of the Ministry of Economy. Was there a need for such changes?

-Tin general, the need to reduce the number of government agencies, as well as to unite them, has been a long time. Especially in the economic bloc. Subjective and objective necessity is observed here. The State Committee for Antimonopoly Policy and Consumer Market Control is still subordinate to the Ministry of Economy. It turns out that in fact only two bodies - the Ministry of Taxes and the State Committee for Property Affairs are transferred to the Ministry of Economy. The transfer of the State Property Committee proceeds from objective necessity. Along with this Committee, the Ministry of Energy and the Ministry of Agriculture partially exercise the powers of the Ministry of Economy. That is, the accession of these ministries to the Ministry of Economy is also an objective necessity. As for the Ministry of Taxes, its accession was unexpected. The activities of the Ministry of Taxes and the Customs Committee are closer to the Ministry of Finance, as they carry out fiscal policy. I believe that the accession of the Ministry of Taxes to the Ministry of Economy is directly related to the increased support for the development of entrepreneurship, since this issue is one of the priorities of the Ministry of Economy. The structure that entrepreneurs are most afraid of (if law enforcement agencies are not taken into account) is precisely the Ministry of Taxes. The unification of these ministries is designed to create a turn in these activities under the leadership of Jabbarov. Earlier, Jabbarov was the deputy minister of economy, and then he became the minister of taxes. That is, the problems of entrepreneurs are well acquainted on both sides. From now on, he must work to support them and implement tax policy considering this factor. That is, to find the optimal balance between the interests of the private and public sectors. Taking into account that Jabbarov is a lawyer, we can conclude that some of the changes come from a purely subjective factor, from the personality factor of the minister. Jabbarov is actually equal to the prime minister, and he will become one.

-What positives will these changes bring? Is something going to change?

- Time will show this. In any case, this is a non-standard, creative approach. It’s like the president says to Jabbarov: Look, I do not appoint you as prime minister so that your head doesn’t bother with a lot of things, your main business is the development of entrepreneurship.  Try to replenish the state budget, so  that  entrepreneurs are not tormented. Of course, the position is very complicated!

- These changes are called reforms. Do you think  it is right to call these changes reforms? Will these changes  be able to radically change the work of the ministry?

-It is possible to accept them as reforms in the context I have said that it is possible to accept this as reform. The work of the Ministry of Economy has so far been carried out only on paper. There is no result at work! In extreme cases, they said what to do in conditions of great pressure on entrepreneurs, high taxes and so on. Now it will be impossible to say that. If, after this, the non-oil sector does not develop, there is no real support for entrepreneurs, then who will be blamed? In any case, a unique chance appeared.

-The  option expected by the experts over the years and the combination of the Ministry of Taxes and the Customs Committee was proposed. However, the Ministry of Taxes was combined with the Ministry of Economy, and the Customs Committee remained in place. In your opinion, would it be nice if the Customs Committee were also added to this structure? Or is the stay of the Customs Committee in its previous state more appropriate?

-To  be objective, the union of the Ministry of Taxes and the Customs Committee with the Ministry of Finance would be more correct. But the real situation requires support for entrepreneurship. Therefore, the Customs Committee was not handed over to the Ministry of Economy in order not to load a much new super minister. What is the main problem of entrepreneurship? Tax and property registration! From now on, this will be led by the Ministry of Economy. Of course, entrepreneurs have many problems with law enforcement and the courts. But this is a completely different topic.

- It should be noted that in due time both the State Property Committee and the Antimonopoly Committee were under the jurisdiction of the Ministry of Economic Development. However, they were subsequently divided. Now they are uniting again, what does this return to the past come from?

- Previously, they were separated because  in total, there was a tendency to increase government agencies. Due to the increase in oil revenues, we did not want to feel like a dwarf state. For example, many embassies were opened abroad, although there was no need. For example, why do we need an embassy in a country like Bulgaria? Not necessary! A similar question. And now, downward trends are intensifying, because we must save.

-Minister of Economics Shahin Mustafayev has been appointed Deputy Prime Minister. Mikail Jabbarov was appointed instead  of him. How do you look at these personnel arrangements? These shots had previously held high posts, but some cosmic successes were not striking. That is, by changing the places of these cadres, what do they want to achieve? What new things will this bring to the state and economy?

-Shain Mustafayev is an unsuccessful official. Maybe as a good accountant and he coped with the work in the Ministry of Taxes, where he worked. But his activity as Minister of Economics was only on paper. He did not know what to do. It is very good that he was appointed deputy prime minister, even if he is engaged in paper work. As for Mikail Jabbarov, he is currently the most effective manager of the government. He was able to put things in order, both in the Ministry of Education and in Taxes. In particular, how the minister of taxes was able to take a principled position. For example, in the issue of tax evasion of the Relax relaxation zone in Lerik. Over the past 2 years there have been many similar cases. Now it’s hard to say whether he can handle it or not. Objectively, the tasks before him are difficult. There are subjective problems. For example, Jabbarov prefers to work with personnel with whom he worked in previous jobs. He either does not want to expand the team, or he does not have time. However, as powers expand, this will have to be done.

-It turns out that the authorities give a special place to the economic field. However, if the essence does not change, is it possible to achieve something?

  -Yes, economic development is currently significant for the authorities. They understand that if the non-oil sector and entrepreneurship do not develop, then the country's future will not be bright. For this, personnel and structural changes are actually insufficient. If the rule of law is not restored in the country, there will be no development!

- In your opinion, what main steps in the economy will the authriteis take  so that they can be presented as real reforms?

- If there are no real judicial and legal reforms, then it is impossible to talk about real reforms and successes. Economic development depends on clear and enforced rules of the game. A market economy has three fundamental pillars: 1) protection of property rights; 2) performance guarantees; 3) healthy competition. To implement them, you need only two things: 1) perfect legislation; 2) an honest, fair and independent court. Our legislation is in poor condition. Just look at the Civil Code: our code is the most backward in the entire space of the former USSR. The condition of our  courts is  obvious! Therefore, if no real steps are taken in this direction, then there will be no reforms, no development.