Resource information
Poverty remains a major challenge in
Azerbaijan, where income poverty is spread throughout the
country. This Poverty Assessment reviews available household
data, which suggest particular demographic characteristics
of the poor - no significant differences in the poverty rate
by gender of the household head were recorded. However, the
report conveys the internally displaced people, are a core
group of particularly vulnerable people, heavily dependent
on state transfers, and donor assistance. Moreover, there
are serious concerns about the non-income indicators of
poverty, including the quality of health care, and
education, as well as access to basic services. The report
however highlights that the macroeconomic outlook for
Azerbaijan is positive, and, it should be possible to
achieve significant impact on poverty over the next ten
years, provided appropriate policies are followed. The oil
and gas windfall should be a major benefit, contributing to
lasting poverty reduction, and raising incomes. The strategy
for poverty reduction stipulates the need for increased
employment rates, and productivity in the non-oil economy,
accompanied by measures to strengthen, and improve the
provision of basic services, and infrastructure. Likewise, a
well-targeted social assistance provision for vulnerable
groups should be considered, if a sustaining economic growth
is to be attained, to be accompanied by targeted programs,
focused on education and health programs. In addition,
positive economic growth should be based on a vibrant
private sector, resulting from a more liberal business
environment, improved financial intermediation and credit
availability to the enterprise sector, supported by a clear
legal framework, and implementation of the privatization
program, to enhance investments in human and physical
capital. Regarding the rural sector, while the strategy
should aim at improving the incomes of the rural population,
it should however emphasize the development of
non-agricultural activities, i.e., food processing, and
services in rural areas.
