Business Reforms

   Global Competitiveness Index - Ongoing reforms

.

Index,

TP

Indicators

Measures to be taken

Current normative legal acts, documents/Required changes in legislation

Executive bodies

  1. Development of financial markets and accessibility of loans

8.06

(1.2.1.6)

Bank resilience

  1. Improvement of credit information exchange system
  2. Review of the legal framework, acceleration of the implementation of judicial decisions
  3. Ensuring more robust Risk Management of banks
  4. Introduction of consolidated risk-based control model in financial services sector
  5. Improvement of the regulation for the acceleration of digital regulation of banks
  6. Increasing transparency of reporting in the financial services sector
  7. Regulation of insurance activity and strengthening its control

Strategic Roadmap for the development of financial services in the Republic of Azerbaijan (Strategic targets 1, 3, 4 and 5)

Financial Market Supervisory Authority (FIMSA), Central Bank, Ministry of Finance, Deposit Insurance Fund, Ministry of Justice, Ministry of Taxes

8.08

(1.2.1.8)

Rule of Law Index

  1. Improvement of credit information exchange system
  2. Increasing transparency of reporting in the financial services sector
  3. Termination of the activity and implementation of reforms in the field of bankruptcy issue solution
  4. Establishment of a Guarantee Fund for loans related to SMEs

The Law on encumbrance of movable property prepared by Financial Market Supervisory Authority (FIMSA) with the support of International Finance Corporation (IFC);

Strategic Roadmap for the development of financial services in the Republic of Azerbaijan (Strategic target 3, Priority 3.1; Strategic target 4, Priority 4.4);

Strategic Roadmap on production of consumer goods at the level of Small and Medium-sized Enterprises (SMEs) in the Republic of Azerbaijan (Strategic target 2)

Financial Market Supervisory Authority (FIMSA), Ministry of Justice, Ministry of Economy, State Committee on Property Issues, representatives of the financial sector

  1. Effective management and macroeconomic indicators

3.04

(2.1.2.2)

Total Public Debt

Development of Public Debt Management Strategy for short, medium, and long terms in order to manage and maintain public debt at a low level

Law of the Republic of Azerbaijan "On the State Budget of the Republic of Azerbaijan for 2017";

"Action Plan on ensuring macroeconomic and financial stability for 2017 and medium term" approved by the Financial Stability Council

Cabinet of Ministers,

Ministry of Finance, Financial Market Supervisory Authority (FIMSA),

Ministry of Economy,

State Oil Fund

  1. Labour Market

7.06.

(3.2.1.2)

Pay and Productivity

Taking measures to diversify, increase Labour Productivity by supporting the development of technology, workforce skills, and innovations, as well as high value-added labour areas

Employment Strategy of the Republic of Azerbaijan (2017-2030)

Ministry of Labour and Social Protection of Population,

Ministry of Justice,

Ministry of Economy, Ministry of Finance, State Statistical Committee

  1. Physical infrastructure

2.06

(4.1.1.3.)

Air passenger/km indicator per week

The use of the Load Factor of seats on all annual flights in accordance with international standards and widely used practice for the calculation of the load factor of flights

 

State Civil Aviation Administration,

”Azerbaijan Airlines" CJSC, Ministry of Transport, Communications, and High Technologies

2.08

(4.1.1.5.)

Number of mobile phone subscribers

In order to expand and implement LTE services in the regions by mobile operators, measures should be taken to discharge 700-800 MHz frequency bands and to provide services at these frequencies

  1. Stimulation of the work carried out by mobile operators in this direction in order to accelerate the expansion of the 3G and 4G networks coverage
  2. Increasing the range of mobile services offered in packages

Amendments to the Law "On telecommunications"

Ministry of Transport, Communication, and High Technologies

9. Human Capital

4

(9.1.1.)

Health and primary education

     

4.09

9.1.1.1.

Quality of primary education

  1. Preparation and implementation of one-year compulsory school preparatory courses

Action Plan on the implementation of "State Strategy for the development of education in the Republic of Azerbaijan"

Cabinet of Ministers,

Ministry of Education

  1. Preparation and introduction of competency-based general education standards and curricula
 
  1. Ensuring participation in international programs on assessment of students' knowledge in general education institutions
 
  1. Improving the level of coverage of preschool education and improving training technologies

Strategic Roadmap of the Republic of Azerbaijan on National Economy Perspectives (Strategic target 3)

5.08

(9.1.2.)

Higher education and training

  1. Improving the quality of additional education of educators, as well as strengthening the capacity of institutions offering additional education, regardless of the form of ownership to create competitive environment; Promotion of the establishment of structures for additional education in higher education institutions

Action Plan on the implementation of "State Strategy for the development of education in the Republic of Azerbaijan"

Cabinet of Ministers,

Ministry of Education

  1. Improvement of physical and technological infrastructure involved in Human Capital development

Strategic Roadmap of the Republic of Azerbaijan on National Economy Perspectives (Strategic target 3)

Ministry of Education, Azerbaijan National Academy of Sciences, Ministry of Transport, Communications, and high Technologies, Ministry of Economy

  1. Increasing the mobility of the teaching staff and students and strengthening their participation in trainings within the framework of relevant international programs
 

Ministry of Education, Higher Education Institutions (HEIs)

  1. Expansion of cooperation between Higher Education Institutions and business organizations
 

Higher Education Institutions (HEIs)

  1. Improvement of doctoral education in the country and structuring it in accordance with the requirements of a single European Higher Education Area within the framework of the "NIZAMI" project of the European Union's Erasmus+ program
 

Ministry of Education, Azerbaijan National Academy Of Sciences (ANAS),

Supreme Attestation Commission under the President of the Republic of Azerbaijan

5.03

(9.1.2.3.)

Quality of the education system

  1. Creating a new system to ensure the quality of education

Action Plan on the implementation of "State Strategy for the development of education in the Republic of Azerbaijan";

Strategic Roadmap of the Republic of Azerbaijan on National Economy Perspectives (Strategic target 3).

Ministry of Education, State Examination Center

  1. Based on advanced international experience, creating new assessment tools that cover all levels of education

Ministry of Education

  1. Improving the quality of education through innovative training methods and technologies

Ministry of Education, Azerbaijan National Academy of Sciences, Ministry of Transport, Communications, and high Technologies

  1. Development and implementation of dual programs with foreign Higher Education Institutions (HEIs)

Ministry of Education

  1. Preparation of standards and guidelines for Quality Assurance (QA) in the higher education system of Azerbaijan in accordance with the relevant European standards and guidelines

Ministry of Education

5.04

(9.1.2.4.)

Development of mathematics and science

Development of proposals related to the formation of the "Research University " model

 

Azerbaijan National Academy of Sciences (ANAS), Ministry of Education

5.05

(9.1.2.5.)

Quality of Management Schools

  1. Regulation of the Education System and improvement of Public Education sector management on the basis of international experience, adaptation of educational levels and levels to international experience
  2. Creating a model of result-oriented and transparent management in educational institutions

Action Plan on the implementation of "State Strategy for the development of education in the Republic of Azerbaijan"

 

Cabinet of Ministers,

Ministry of Education

5.07

(9.1.2.7.)

Availability of specialized training services

  1. Creation of a Modular Credit and Competitive Training System for teaching staff

Action Plan on the implementation of "State Strategy for the development of education in the Republic of Azerbaijan";

Strategic Roadmap on the development of Vocational Education and training sector in the Republic of Azerbaijan (Strategic targets 3 and 4);

Strategic Roadmap on production of consumer goods at the level of Small and Medium-sized Enterprises (SMEs) in the Republic of Azerbaijan (Strategic target 4);

Strategic Roadmap on the development of specialized tourism industry in the Republic of Azerbaijan (Strategic target 4).

Ministry of Education

 

8. Development of professional standards and educational programs (curricula) in the tourism sector. Implementation of activities on certification of tourist guides

Ministry of Culture and Tourism, Ministry of Education

12. Health system

4

(12.1.1.)

Health and primary education

       

4.01

(12.1.1.1.)

Cases of malaria

  1. Provision of control over persons arriving from the Republic to endemic countries due to malaria for various reasons, as well as foreign citizens coming from such countries
  2. Training of relevant specialists in the field of Laboratory Diagnostics, Clinic, and Prevention of malaria

National Strategy to prevent the recovery of malaria in the Republic of Azerbaijan for 2016-2020

Ministry of Health,

State Statistical Committee

4.05

(12.1.1.3.)

Degree of spread of HIV

  1. Creation of single electronic register and database of HIV+ persons
  2. Expansion of network of examination and counseling centers within medical institutions for the purpose of early detection of HIV
  3. Involvement of patients with AIDS in Antiretroviral Therapy (ART)

Event Program on combating HIV/AIDS for 2016-2020

Ministry of Health,

State Statistical Committee

4.07

(12.1.1.4.)

Child mortality

  1. Provision of maternity facilities with necessary medical equipment, medicines, and medical equipment for providing resuscitation assistance to newborns, especially underweight babies
  2. Implementation of children's dispensary
  3. Implementation of continuous monitoring and evaluation of the quality of medical services in maternity facilities
  4. Implementation of continuous medical education of doctors and secondary health professionals working in the field of Mother and Child Health

State Program on improving Mother and Child Health for 2014-2020

Ministry of Health,

State Statistical Committee

4.08

(12.1.1.5.)

Level of Longevity

Taking further measures to protect the health of the population

Law of the Republic of Azerbaijan No. 360-IQ of June 26, 1997 "On health protection of the population"

Ministry of Health,

State Statistical Committee

13.1. Global Competitiveness Report

6

(13.1.1.)

Commodity Market Efficiency

       

6.01

(13.1.1.1.)

Intensity of domestic competition

  1. Determination of provisions related to harmonization with European law in the legislation
  2. Increase of rights and duties of the Commission on Violation of Competition Law, determination of independent decision-making
  3. Conducting on-site inspections related to antimonopoly law and preventing the pre-informing of the agricultural facilities during evidence sampling

Adoption of the Competition Code

Cabinet of Ministers,

Ministry of Economy,

Ministry of Justice, Ministry of Taxes

6.02

(13.1.1.2.)

Volume of Market Dominance

6.03

(13.1.1.3.)

Effectiveness of Anti-Monopoly Policy

6.15

(13.1.1.4.)

Level of Customer Orientation

6.16

(13.1.1.5.)

Complexity of buyer decisions

11

(13.1.2.)

Complexity of business activity

       

11.01

(13.1.2.1.)

Number of domestic suppliers

  1. Differential determination of fines applied to agricultural facilities that have violated the Law in accordance with the Annual Turnover Rate of the agricultural facilities with high limits
  2. Improvement of Investigation and appropriate prosecution of cartel deals
  3. Protection of confidentiality when receiving any information from state bodies and economic entities considered as state, commercial (tax), banking and customs secrets while conducting research on violation of Anti-Monopoly Law
  4. Determination of the boundaries of commodity markets, including local monopoly

Adoption of the

Competition Code

Cabinet of Ministers,

Ministry of Economy,

Ministry of Justice, Ministry of Taxes

11.02

(13.1.2.2.)

Quality of domestic suppliers

11.03

(13.1.2.3.)

Development status of clusters

11.04

(13.1.2.4.)

The nature of competitiveness

11.05

(13.1.2.5.)

Value Chain coverage

11.06

(13.1.2.6.)

Control of global distribution of products

11.07

(13.1.2.7.)

Complexity of production processes

11.08

(13.1.2.8).

Marketing level

11.09

(13.1.2.9.)

Request to transfer powers

16. Corruption and transparency

1.03

(16.2.1.)

Waste of Public Funds

  1. Transparent management of public resources and ensuring effective allocation of Budgetary Funds, introduction of new electronic means for this purpose
  2. Publication of information on the acquisition and expenditure of Budgetary Funds
  3. Discussion of annual reports with participation of representatives of supervisory bodies, civil society, as well as international and independent local experts
  4. Conduct of audits by local and international experts and publication of the results

Laws and decrees on the State Budget;

Laws on the implementation of the State Budget

Cabinet of Ministers, Ministry of Finance, Chamber of Accounts, Chamber of Auditors, Ministry of Taxes,

General Prosecutor's Office

1.12

(16.2.5.)

Transparency in State Building

  1. Expansion of the scope of application of the Electronization System in order to minimize direct contact during the implementation of documents and related procedures and making payments in an electronic form on a Single System
  2. Request for copies of documents on applications and by state bodies at ”ASAN xidmet" centers, as well as elimination of the practice of receiving notarized copies of documents
  3. Acceptance of payment for issuance of documents and references in state bodies in an electronic form only

Changes in legislative acts on provision of electronic services

Cabinet of Ministers, Ministry of Economy,

Ministry of Finance, Chamber of Accounts, State Agency for Public Service and Social Innovations under the President of the Republic of Azerbaijan

18. Costs associated with combating crime

1.16

(18.1.2.)

Reliability of Police Services

  1. The shooting and broadcasting of TV programs and films that create a positive image of law enforcement officers and make them a survivor rather than a criminal, regular coverage of professional activities of law enforcement officers of Azerbaijan on TV channels
 

Ministry of Internal Affairs, National TV and Radio Council of the Republic of Azerbaijan,

"Azerbaijan TV and Radio Broadcasting" CJSC