Footsteps of the Postneft era - penalty economy

One of the key directions of social policy in Azerbaijan remains the improvement of housing and living conditions for the population. The institutional foundation of this policy is formed by the State Agency for Housing Construction, established by a decree of President Ilham Aliyev on April 11, 2016. The agency has become a central instrument for the development of the subsidized housing market and the implementation of a social housing model. However, nearly a decade after its establishment, demand for affordable housing still significantly exceeds supply.

Despite the presence of tens of thousands of vacancies in Azerbaijan, a significant portion of the unemployed population is unable to find work. Reports by international organisations indicate that the problem is related not so much to the number of jobs, but to their quality, suitability and the structural characteristics of the labour market.

The pharmaceutical market of Azerbaijan is structurally dependent on imports. In recent years, both import volumes and the overall market value have increased, while domestic production and exports remain limited. Local production mainly consists of generic drugs (low-cost copies of original branded medicines) and a limited range of other pharmaceuticals.

Although the existing pension model in Azerbaijan is built on the principles of social insurance and solidarity, the limited nature of individual savings and inheritance mechanisms has led to serious criticism. At the same time, the absence of non-state pension funds creates risks for the long-term sustainability of the system. In addition, the fate of pension capital remains uncertain for individuals who die before reaching retirement age or during the pension payment period defined as 12 years (144 months).