Press Review 25.07.17

Azerbaijani-Russian relations, the situation with pensions in the country, and the continuing dependence on oil are the leading topics of today's press.

The newspaper Azerbaijan writes about the relations between Azerbaijan and Russia, noting that these relations are entering a new stage. The assessment of relations is taking place against the backdrop of the July 21 working visit of President Ilham Aliyev to the Russian Federation. Currently, the author recalls, about 15 thousand Azerbaijanis study in Russia and about 600 enterprises with Russian investments operate in Azerbaijan.

The newspaper Echo published an article entitled More Than 80% of Pensions in Azerbaijan Spent on Food. In Azerbaijan there are just over 1.3 million pensioners. Of these, more than 200,000 receive a minimum pension. The average pension of this part of pensioners is only 150 manat, which is not even 100 dollars at the current rate. This is a very low figure in the world. According to official data, pensioners in Azerbaijan spend more than 80% of their pensions on food. And in reality the situation is that pensions are sometimes even not enough for food. Pensioners have to make both ends meet. Although in developed countries, this figure should not exceed 12%. The payment of utilities and the purchase of medications are even more difficult. Medicines in the country have risen in price.

The newspaper Novoye Vremya published an article entitled Is Oil Good or Headache? For oil exporting countries oil from the good turns into a real headache, as dependence on the "oil needle" is still very high. And what to do with it no one knows. The IMF forecast surely disturbs Azerbaijan. With all the government's efforts, the diversification of the domestic economy leaves much to be desired. Although some areas of the non-oil sector demonstrate the growth of GDP, this is clearly not enough to improve the economic situation. Undoubtedly, the country's export capabilities should be increased. But without large investments in the non-oil sphere, it will be difficult to achieve this. The delay in the implementation of economic reforms delays the recovery of the economy. The government should not face the dilemma of starting reforms or not. The question is in a different plane: when will they start? The sooner this happens, the more chances appear to keep the economy afloat, get rid of oil dependence, and, accordingly, not have to wait anxiously for another forecast of international institutions regarding the price of oil.