Press Review for 3 April 2018

The development of entrepreneurship in the country, the situation with insurance, and the volume of "shadow economy" are the leading topics of today's press.

The newspaper Azerbaijan writes about the development of entrepreneurship in the country, covering more and more areas and spheres. The author notes that in order to provide greater freedom for entrepreneurs, in 1993-95, 1997-2000, state programs were adopted. In manufacturing, as well as in the provision of services, the share of the private sector exceeds 80%.

As for state support for the private sector, the National Fund for Entrepreneurship Support plays an exceptional role here.

The Echo newspaper writes that there are a lot of socially dangerous objects in Azerbaijan. We are talking about insurance for large shopping and entertainment centers. Thus, the legislation of Azerbaijan provides for mandatory fire insurance and liability to third parties in the event of emergency situations. The damage caused by third parties to life, health and property is compensated without fail. Some treaties even specify a certain number of persons who will be eligible for compensation. The fact is that today, the insurance of objects, where a large number of people are permanently present, is of a formal nature. Insurers must conduct an examination of the object, but often do not do this at the request of the client-businessman. Socially dangerous facilities are enough in Azerbaijan. Businessmen save even on cheap insurance, although the insurance rate is quite low, so talking about the burden on business is unjustified. The insurance policy costs only 90-120 manat.

The newspaper Novoye Vremya writes that in 2017 Azerbaijan was the first in the list of countries with the largest volume of the "shadow" economy. The results of the research showed that the volume of the "informal" sector is estimated at 67.04% of GDP. At the same time, it is predicted that by 2025 the situation will improve slightly and the indicators will reach 58.38%.

The GDP of Azerbaijan for the past year amounted to 59.987.7 billion manat, of which up to 60% falls to the share of the "shadow" economy. It turns out that almost 36 billion manat goes to the "shadow" in Azerbaijan every year.

Meanwhile, according to IMF estimates, in the developed countries, the shadow economy averages 12-16% of GDP. In developing countries it is 40-50%, and in the countries with transitional economies it is 23-25%. ---0-----