Targeted social support: transition from parasitic attitude to small business

As of earlier October 2018, approx. 50,200 families (200,200 family members) received the targeted social support. In other words, average 165, 4 manats of monthly allowance is paid per family. In all probability, the number of financially-backed families will be slightly reduced. Note that some 171, 2 mln manats have been included in the state budget for 2019 for repayment of the TSS.

Upon the budget project, it is down 43 mln 517,000 manats (20,3%) from 2017 and down 35 mln manats (by17%) from a 2018-forecast. Next year, the penury criterion required for the TSS is expected to rise by 10% to 143 manats.

Under statistical data, the TTS was set for 120,322 families (449,146 family members) in the first half of 2017, i. e, average 148,46 manats per family and 34,84 manats per capita. According to the Audit chamber, in 2016 the TSS was set for 163,300 families (684,200 family members) where average monthly allowance per family made up 150,68 manats, per family member- 37,39 manats. In other words, this year"s amount of the TSS is up from previous years.

It should be remembered that since 2016 the Ministry of Labor and Social Protection of the Population (MLSPP) has down to implementing the transition to the program of self-employment with a view of removing penurious families" dependence on the allowance. The same year, some 6 mln manats were allocated for the implementation of program comprising 8, 000 people. Note that 35,6 mln manats have been allocated from the state budget for expansion of self-employment system.

Under the National register of public purchases, the National employment service MLSPP signed three contracts in July and August on implementation of employment measures amounting to 30,3 mln manats. Note that contracts were awarded without procurement tenders. What surprises is the fact that two leading companies ("Az Nest" LLC and "Agri Kon" Ltd.) involved in the tender had been set up just 1-2 months before the contract conclusion. In reply to the information inquiry on contracts the Ministry passed this suspicious circumstance over in silence.

In other words, the below-cited are amounts having been paid for self-employment of population within the framework of self-employment promotion:

• 9 mln 894,357,82 manats to consortium" Az Nest" and company" SRS Consulting" (USA) for delivery of work and services, as well as production goods;

• 19 mln 225,246 manats to consortiums "Aqri Kon" and "Bis Co" for provision of agricultural goods;

• 1 mln 180,497 manats to "Parlar Ting A.T." for creation of households, delivery of services, etc. within the framework of the Memorandum signed on July 16, 2018 between MLSPP and the public association "Regional development" under the Heydar Aliyev Fund. Note that the Memorandum is intended for the implementation of the project "Social gardens." The project is aimed at securing the social protection of shehid family members, disabled and able-bodied persons, unemployed..

Below-quoted are Ministry"s answers to our query:

- What are meant under" work and services", "production goods" and "agricultural goods" required for provision of self-employment of population within the framework of self-employment promotion?

-The point is about work and services, production goods by kinds of economic activity, selected persons drawn in the program on implementation of self-employment. In turn, agricultural goods are the ones designed for people willing to create small households to comply with the self-employment programs. These largely include the cattle, honey-bee colonies, etc.

-How many families" self-employment will be ensured by purchase contracts concluded with the participation of consortiums" Az Nest" and "SRS Consulting" и консорциума ООО "Aqri Kon" и ООО "Bis Co"?

-As a whole, it is planned to support a small family business of approx. 7,000 persons through the purchase and delivery of necessary assets (goods and materials). Persons filing an application for program participation with appropriate potential and necessary skills and knowledge, especially business organization, are drawn in training courses led by instructors of the International labor organization. Graduates with the best business-plans will receive assets. There are above 6,500 persons, and the process of business-plan estimation is underway.

Also, regional participants of the program are supplied with goods and materials required for self-employment project implementation. Note that the process started with granting assets to program participants, in the first turn, from Jabrail and Fizuli regions. Suffice it to say that 25 families from Jojug Mardjanly village of Jabrail region were provided with cattle to get small households back on the rail.

At present, asset provision process is underway in other regions as well. When drawn into the program, the preference is given to families from vulnerable families. For example, more than 1000 people of program participants are those disabled; 1255 forced migrants; 158 shehid family members; 816 members of families receiving targeted social assistance; 388 parents of physically challenged children; 65 disincarcerated. Besides, 1026 program participants are young people. At the same time, the program embraces graduates from public children institutions and those deprived of parental custody from "Home of graduates".

-What is the purpose of the public association "Regional development "under the Heydar Aliyev Fund in the implementation of "Social gardens" project? How many families are going to be provided with employment within the framework of the project? How many household are planned to be created?

- It has to be kept in mind that the active support rendered by "Regional development" for the self-employment program provides for the creation of orchards, vegetable and water-melon and gourd farms of intensive type, and the work is in progress to lay out gardens. The project embraces Terter, Agdam, Barda, Fizuli, Beylaga, Udjar, Salyan, Sabirabad, Agstafa, Gazakh, Samukh, Shamkir, Dashkesan, Gobustan, Agsu, Ismailly, Agdash, Kurdamir, Quba, Kurdamir, Khachmaz, Qusar, Siyazan and other regions.

Note that 30 out of selected 125 persons are members of shehid families; 28 persons are disabled; the rest are members of downscale families. Along with the said households, these families will be provided with agro-technical services, trainings, organization of logistics and marketing of finished products, recommendations on investing incomes, development of production, etc.

-Was there a tender on implementation of the three purchases? If purchases were made on direct contract, how did it come that a contract with consortium members "Aqri Kon" and "Az Nest" had been concluded one and the same day - on June 26, 2018? Are these consortium members or a group of related companies or other consortium parties experienced in business doing, including skills in an appropriate sphere?

-With a view of purchasing agricultural goods needed for provision of population"s self-employment across regions of the Republic within the framework of measures aimed at establishing employment in line with Article 21 of the Law of the Azerbaijani Republic "On Public Purchases" and according to Article 17.3 of the same Law, direct contracts were concluded on August 3, 2018 between the State employment service under the Ministry of Labor and consortium "Aqri Kon" and "Bis Co".

Besides, direct contracts were concluded on August 10, 2018 between the State employment service and consortiums "Az Nest" and "SRS Consulting" with a view of purchasing work and services, as well as production goods required for self-employment of population. Under terms of a contract signed between members of the consortium, the parties have material, technical and human resources sufficient for the contract implementation.

Under Article 8.1 of the Law, save as otherwise provided by standard legal acts regulating public purchases, any legal or physical entity or association of legal entities, either resident or non-resident, regardless of state affiliation, may act as a claimant in the procedures of public purchases on the Azerbaijani Republic.

Owing to the lack of restrictions on the participation of foreign legal entities in public purchases and demands on minimum duration of services of a legal entity, the association "SRS Consulting" and "Az Nest" took part in a competitive selection for self-employment promotion measures.

-How many ministries across Baku and regions as a whole have been engaged in self-employment actions? What are charges for the program implementation and what are preliminary results?

-The number of people involved in the program rose from 1,200 to 7,000. Those involved in the program and provided with assets have been successful in creating minor households, so they are seeking to boost their fortune. And that gives promise that initial results of the program implementation are positive. The primary focus of the self-employment program is to reduce dependence of families with scanty means and socially vulnerable groups of population from the government program of social assistance and afford them opportunity to run a small business.

...Apparently, a small number of families may join the self-employment program despite disbursing budgetary funds. Time will show if a small business proves successful.