Experts about economics and structural changes

The economic events in the beginning of the year point to its dismal continuation. The annual budgets of the state and the social insurance fund of the population require a monthly salary payment of 396 million manat for state employees, and 300 million manat for retirement.

But, despite the first half of the month, wages and pensions are not paid. This can be largely explained by the delay in January revenues to the budget and the social insurance fund. But, based on the experience of previous years, it is possible to allow the use of these funds by financial institutions and relevant authorities to obtain interest income by running these funds into financial circulation," said economist Gubad Ibadoglu.

He added to his post (Facebook) information that came to him that, as a result of changes in tax legislation, some private companies began to reduce jobs.

The expectations of the economic year of 2019 are confirmed by the news of the liquidation of several government departments, continues economist Rovshan Agayev. In his latest speech President I.Aliyev spoke about the increase of budgetary organizations after the next reduction of the state apparatus. Emerging new state committees do not benefit the state.

Seven government agencies were liquidated, including the Secretariat of the Tariff Council, four state agencies in the Ministry of Agriculture (the Agency of Agrarian Services with up to 85 employees is created instead), as well as the Center for Strategic Research (SRC) under the President. From now on, they can act on a voluntary basis. "Let them now enjoy the fruits of social activities," said Osman Gunduz, head of the Multimedia Center, on Facebook.

The liquidation of the SRC aroused enthusiasm among social activists and political scientists. "Six years ago, I wrote that such organizations as the Center for Strategic Research did not happen under presidential offices. I hope that acting on a voluntary basis, the SRC will achieve greater success," Avaz Hasanov writes. A journalist Aygun Muradkhanly, welcoming the closure of the Center, recalls that the only "strategic research" of this department known to her was the statement by the head of the Center that the information about Gulenists in Azerbaijan Aygun received from ... her niece.

The reduction in the overloaded state apparatus cannot solve the problem of its low efficiency, - continues Rovshan Agayev. It is necessary to increase the competitiveness of the economy, for this we must urgently abandon the ultra-centralization of management, adopt a centrifugal strategy with increasing independence of elected regional bodies; to close unnecessary and enhance local powers of elected bodies in the socio-economic sphere. The population should seek solutions to problems not in the central, but in their local elected authorities.

Socio-economic deficiencies should be solved not in ministerial cabinets, but in local parliaments (municipal councils) in open discussions. Funds for these tasks should be allocated from municipal budgets, use money under public control. Real economic development can be achieved through the balanced regional development, decentralization, the creation of democratic local self-government," R.Agayev said.--0--