Economic Development in Azerbaijan

[Azeri440]

As far as we know here in Turkey, there have been news implying that Azerbaijan 'on the purpose' would devalue its currency a bit down to place itself in a more economically balanced position. We heard that Azerbaijani officials stated that this will be in the favor of the nation and economy.

yes , such drop would have a positive effect on economy due to competitive prices on the market.
but for regular citizens , unless their wages are increased by at least 20% they will take the hit.

I assume 20% due to the amount of imports Azerbaijan receives compared to its own production for local goods.

 

[SouI]

unless their wages are increased by at least 20% they will take the hit.

I recall that the central bank was talking about a possible inflation rate about 9-10%..

 

[Azeri440]

This is all over the headlines. And the statement came through Azerbaijan Central Bank.

yep, its now confirmed. CBA previously did a great job to not let AZN fall , A gradual drop was necessary but
allowing a sudden massive drop is just a big mistake on their part.

 

[Azeri440]

Don't think this was posted here before

Turkey, Azerbaijan intend to boost mutual trade to $15 billion by 2023

“Our goal is to boost the trade turnover to $15 billion by 2023,” said Erdogan, adding that the two countries “have no political problems” between them. According to him, in the energy sphere, “the Trans-Anatolian Gas Pipeline Project (TANAP) is the most important,” as it will “increase the energy potential of Turkey and Azerbaijan.”

The TANAP pipeline project was announced on 17 November 2011 at the Third Black Sea Energy and Economic Forum in Istanbul. On 26 December 2011, Turkey and Azerbaijan signed a memorandum of understanding, establishing a consortium to build and operate the pipeline. In spring 2012, the process of conducting the technical-economic feasibility study was launched. On 26 June 2012, President of Azerbaijan Ilkham Aliyev and Prime Minister of Turkey Recep Tayyip Erdogan signed a binding intergovernmental agreement on the pipeline.

Erdogan said that TANAP project “has international importance” and “an important phase of its implementation” will take place this year. The Turkish leader also said that he hoped that the Baku-Tbilisi-Kars railway project will be completed by the year end.

“With this railway opening, it will be possible to speak of establishing a transport link between Beijing and Istanbul,” he said.

TASS: Economy - Turkey, Azerbaijan intend to boost mutual trade to $15 billion by 2023

Sumgait Chemical Industrial Park

 

[xenon54 out]

We are really blessed to have such a close-cultural country on this planet.. And most importantly, 'VERY' close to us!

And as modern as we are! Their economy is also even more stable than ours! Their industry and high-tech are also improved!

We are really lucky to have each other.

Agree but the price dumping on Oil hit Azerbeijan quite hard as @Azeri440 said, good thing is they are investing in other sectors heavily to decrease dependance on oil, Azeris are smart people, they will probably follow the UAE model with the difference that they also invest more in Industry and not only in service sector.

 

[SouI]

Agree but the price dumping on Oil hit Azerbeijan quite hard as @Azeri440 said, good thing is they are investing in other sectors heavily to decrease dependance on oil, Azeris are smart people, they will probably follow the UAE model with the difference that they also invest more in Industry and not only in service sector.

Yup, they need a heavy industrial development. I just don't understand why natural resource rich nations do not just use their potential to be countries like Germany..

Russia had +$600.000.000.000 in reserves before the sanctions and oil-price-crisis..

I mean, if Turkey had $650B spare money... Seriously.....

We would just build thousands of state-of-the-art factories in every kind...

We could create new cities from scratch...

The economy would be more sound, and we would still have the benefit of our natural resources...

But instead, these countries just save their money... I have no idea why.....

 

[xenon54 out]

Yup, they need a heavy industrial development. I just don't understand why natural resource rich nations do not just use their potential to be countries like Germany..

Russia had +$600.000.000.000 in reserves before the sanctions and oil-price-crisis..

I mean, if Turkey had $650B spare money... Seriously.....

We would just build thousands of state-of-the-art factories in every kind...

We could create new cities from scratch...

The economy would be more sound, and we would still have the benefit of our natural resources...

But instead, these countries just save their money... I have no idea why.....

Azerbaijan is investing a lot in Heavy industry lately, they also pay money to so called ''Oil fonds'' for the time after oil but by then they probably diversed their economy enought o live without oil, they are doing the right thing, only time is needed.

 

[lonelyman]

Yup, they need a heavy industrial development. I just don't understand why natural resource rich nations do not just use their potential to be countries like Germany..

But instead, these countries just save their money... I have no idea why.....

So have oil, you will become Germany? How laughable the idea.

 

[Azeri440]

I am simply responding to one of your comments gently, tell me which rule I violated? It's you brought about that resources rich country will become Germany.

if you could comprehend better , he meant a nation should use some of the money they saved up to create a lot of industry to maybe one day become industrial power like Germany instead of just saving up all of it for a bad day.

 

[lonelyman]

if you could comprehend better , he meant a nation should use some of the money they saved up to create a lot of industry to maybe one day become industrial power like Germany instead of just saving up all of it for a bad day.

I wish it's that easy, as a matter of fact you can see almost all industry powers are resource poor nations, there is a reason for that.

To reach first rated Germans' level from relatively backward condition, the only country succeeded so far is Japan. Even China is still catching up, trying to move up the value chain.

All I am saying is it's human nature, if you can become rich and can have a good life by just selling oil, why would you bother and do hard work, starting from sweatshop, slowly accumulating and moving up to the high end industry. It takes years, hard work, dedication, and vision. Just buy from oil money won't cut it.

Again theoretically yes, and everyone should. But look at the hard cold facts, the statistics and numbers don't lie.

 

[SouI]

I wish it's that easy, as a matter of fact you can see almost all industry powers are resource poor nations, there is a reason for that.

To reach first rated Germans' level from relatively backward condition, the only country succeeded so far is Japan.
Even China is still catching up, trying to move up the value chain.

All I am saying is it's human nature, if you can become rich and can have a good life by just selling oil, why would you bother and do hard work, starting from sweatshop, slowly accumulating and moving up to the high end industry. It takes years, hard work, dedication, and vision.

Again theoretically yes, and everyone should. But look at the hard cold facts, the statistics and numbers don't lie.

Turkey is in minus now, and we are still doing it.

We have a trade deficit of about $80B, and we are still be able to get the tech transfers and create hundreds of 'state-of-the-art' factories every year.

If we had that much money that some other countries have....

 

[xenon54 out]

If we had that much money that some other countries have...

He has a point in his first non-trolling post though... it think its a blessing for Turkey not to have oil.

Resource curse - Wikipedia, the free encyclopedia

 

[Azeri440]

He has a point in his first non-trolling post though... it think its a blessing for Turkey not to have oil.

Resource curse - Wikipedia, the free encyclopedia

there are benefits , Azerbaijan's economy was pretty much in ruins and entire country was nearly in crisis after collapse of soviet union and a following war, but oil brought us the money needed to finance the current projects and start some major developments in the country.

 

[xenon54 out]

there are benefits , Azerbaijan's economy was pretty much in ruins and entire country was nearly in crisis after collapse of soviet union and a following war, but oil brought us the money needed to finance the current projects and start some major developments in the country.

Sure in case of Azerbaijan yes but not in case of most other ressource rich countrys, many African countrys are very ressource rich but the poorest in the world, same applies to many muslim countrys.

 

[lonelyman]

Turkey is in minus now, and we are still doing it.

We have a trade deficit of about $80B, and we are still be able to get the tech transfers and create hundreds of 'state-of-the-art' factories every year.

If we had that much money that some other countries have....

Trust me if you had that 400 B from resource, you wouldn't be doing the stuff you mentioned.

Just ask yourself, if you hit a lottery and win 400 million $, what would you do?