WB to evaluate poverty in Azerbaijan

Source: AzerNews

The World Bank said that Azerbaijan has made progress on poverty reduction, but is seeking to begin its own research in this area next year.

WB Country Manager for Azerbaijan Larisa Leshchenko said that the bank will assess the level of poverty in Azerbaijan and interpret data of the State Statistics Committee.

"We do not have full access to the preliminary data whereby the poverty level is calculated, as well as data on households, income and so on," she said. "We will launch a program to study the situation in this area in 2014."

The poverty rate in Azerbaijan, which currently stands at 6 percent, is almost four times below the global average of 21 percent.

Leshchenko went on to say that Azerbaijan has also attained progress in basic education, but the development of human capital should remain in the focus of the government.

"Of course, real progress has been recently observed in the field of education in Azerbaijan. It should be stressed that there is a test system on student admission in higher and secondary education institutions," Leshchenko said, adding, however, that there are still problems.

"Approximately 18-19 percent of school graduates continue their education. This is a very low indicator even for middle-income countries including Azerbaijan and especially for the group of countries with high income which Azerbaijan is seeking to join," Leshchenko said.

According to Leshchenko, education activities require investments and technologies.

"We are ready to be involved in the process of bringing the experience of other countries to Azerbaijan. We are negotiating with the Azerbaijani government in this direction," she said.

Agricultural subsidy proposals

The WB also presented to the Azerbaijani government its proposals on improving the country's mechanism of subsidizing agricultural producers.

Leshchenko said that the bank has conducted an analysis in the field of subsidizing agricultural producers and then submitted its proposals to the Azerbaijani government.

"Right now we are not cooperating in this field, but if necessary are ready to provide support. Our main proposal is to ensure the effectiveness of subsidies, regardless of their form," Leshchenko said.

Earlier Agriculture Minister Ismet Abbasov said that various proposals are being considered to change the mechanism of subsidizing farmers.

Since 2007, half of the funds for the sale of mineral fertilizers to farmers have been subsidized from the state budget.

Subsidization of agriculture in Azerbaijan has been carried out since 2006. In 2013, 125 million manats of state budget funds are designated for agricultural subsidies, including mineral fertilizers worth 25 million manats.

In 2012, this expenditure made up 114 million manats. 18 million manats of this amount were allocated to the suppliers of fertilizers.