Azerbaijan : Inclusive Growth in a Resource-Rich Economy
Azerbaijan experienced a 'golden age' in the last decade, during which the average growth rate reached record high levels and poverty decreased significantly. On average, the economy grew by 15.3 percent per year in real terms during this...
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| Format: | Publication |
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Washington, DC: World Bank
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2012/12/17097432/azerbaijan-inclusive-growth-resource-rich-economy http://hdl.handle.net/10986/12228 |
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okr-10986-12228 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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English en_US |
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ACCESS TO MARKETS ACCOUNTING AGE GROUP AGRICULTURAL GROWTH AGRICULTURAL LAND AGRICULTURAL OUTPUT AGRICULTURAL SECTOR AGRICULTURAL SERVICES AGRICULTURAL WAGES AUDITING AVERAGE PRODUCTIVITY AVERAGE WAGE AVERAGE WAGES BANKS CAPITAL FORMATION CASH TRANSFERS CENTRAL PLANNING COLLEGE EDUCATION COMMUNITY GROUPS CONFLICT CONSOLIDATION CONSUMPTION EXPENDITURES CREATING JOBS CURRENT PRICES DISTORTED INCENTIVES DIVIDENDS DOMESTIC MARKET ECONOMIC ACTIVITY ECONOMIC DIVERSIFICATION ECONOMIC GROWTH ECONOMIC INTEGRATION ECONOMICS EMPLOYABILITY EMPLOYEE EMPLOYMENT EMPLOYMENT DYNAMICS EMPLOYMENT GENERATION EMPLOYMENT GROWTH EMPLOYMENT OPPORTUNITIES EMPLOYMENT OUTCOMES EMPLOYMENT RATE EMPLOYMENT RATES EMPLOYMENT SERVICE EMPLOYMENT SHARE EMPLOYMENT STATUS FARMERS FEMALE EMPLOYMENT FEMALE PARTICIPATION FINANCIAL INSTRUMENTS FINANCIAL SERVICES FIRM SIZE FISCAL DEFICITS FISCAL POLICIES FISHING FOOD SAFETY FORESTRY FORMAL LABOR MARKET FORMAL SECTOR WAGES GOVERNMENT EXPENDITURES HEALTH SERVICES HIGH EMPLOYMENT HOUSEHOLD CONSUMPTION HOUSEHOLD SURVEY IMPACT ON POVERTY INCIDENCE ANALYSIS INCIDENCE OF POVERTY INCOME INCOME DISTRIBUTION INCOME REDISTRIBUTION INFLATION INFLATION RATES INFORMAL ECONOMY INFORMAL EMPLOYMENT INNOVATION INSURANCE INTEREST RATES IRRIGATION JOB CREATION JOB FAIR JOB FAIRS JOB MARKET JOB PLACEMENT JOB SEARCH JOB SECURITY JOB SEEKERS JOBS LABOR CONTRACTS LABOR FORCE LABOR FORCE PARTICIPATION LABOR MARKET LABOR MARKET CHARACTERISTICS LABOR MARKET CONDITIONS LABOR MARKET INDICATORS LABOR MARKET OUTCOMES LABOR PRODUCTIVITY LABOR PRODUCTIVITY GROWTH LABOR SHARE LABOR SUPPLY LAND OWNERSHIP LAND REFORM LEGAL FRAMEWORK LEGISLATION LIVING STANDARDS LOW EMPLOYMENT MACROECONOMIC FLUCTUATIONS MARKET DISTORTIONS MIGRATION MINIMUM WAGE MONOPOLIES NOMINAL WAGES OIL OIL PRICES OIL SECTOR OUTPUTS PENSIONS PER CAPITA CONSUMPTION POOR HOUSEHOLD POOR HOUSEHOLDS POVERTY ALLEVIATION POVERTY ALLEVIATION STRATEGY POVERTY ASSESSMENT POVERTY LINE POVERTY RATES POVERTY REDUCTION POVERTY REDUCTION STRATEGY PRIMARY SOURCE PRIVATE SECTOR PRIVATE SECTORS PRODUCTION COSTS PRODUCTIVE ACTIVITIES PRODUCTIVE EMPLOYMENT PRODUCTIVITY DECOMPOSITION PRODUCTIVITY GAINS PRODUCTIVITY GROWTH PUBLIC EXPENDITURES PUBLIC HOUSING PUBLIC SAVINGS PUBLIC SPENDING QUOTAS REAL WAGE REAL WAGES REMOTE AREAS RENTS RETAIL TRADE RETIREMENT RUNNING WATER RURAL RURAL AREAS RURAL EMPLOYMENT RURAL LABOR RURAL POOR RURAL POPULATION RURAL POVERTY RURAL TRANSFORMATION RURAL WORKERS SAFETY SAFETY REGULATION SAFETY REGULATIONS SAVINGS SICK LEAVE SKILL PREMIUM SOCIAL ASSISTANCE SOCIAL CAPITAL SOCIAL INCLUSION SOCIAL INSURANCE PROGRAMS SOCIAL SECURITY SOCIAL SERVICES SUSTAINABLE GROWTH TARGETING TAX RATES TECHNOLOGICAL CHANGE TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY TOTAL UNEMPLOYMENT TRANSFER PROGRAMS TRANSPORT UNEMPLOYED UNEMPLOYED PEOPLE UNEMPLOYMENT UNEMPLOYMENT ASSISTANCE UNEMPLOYMENT BENEFIT UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNEMPLOYMENT SPELLS UNINTENDED CONSEQUENCES URBAN WORKERS VOCATIONAL EDUCATION VOCATIONAL TRAINING WAGE GROWTH WAGE POLICY WAR WORKER WORKERS WORKING POOR YOUTH EMPLOYMENT YOUTH UNEMPLOYMENT |
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ACCESS TO MARKETS ACCOUNTING AGE GROUP AGRICULTURAL GROWTH AGRICULTURAL LAND AGRICULTURAL OUTPUT AGRICULTURAL SECTOR AGRICULTURAL SERVICES AGRICULTURAL WAGES AUDITING AVERAGE PRODUCTIVITY AVERAGE WAGE AVERAGE WAGES BANKS CAPITAL FORMATION CASH TRANSFERS CENTRAL PLANNING COLLEGE EDUCATION COMMUNITY GROUPS CONFLICT CONSOLIDATION CONSUMPTION EXPENDITURES CREATING JOBS CURRENT PRICES DISTORTED INCENTIVES DIVIDENDS DOMESTIC MARKET ECONOMIC ACTIVITY ECONOMIC DIVERSIFICATION ECONOMIC GROWTH ECONOMIC INTEGRATION ECONOMICS EMPLOYABILITY EMPLOYEE EMPLOYMENT EMPLOYMENT DYNAMICS EMPLOYMENT GENERATION EMPLOYMENT GROWTH EMPLOYMENT OPPORTUNITIES EMPLOYMENT OUTCOMES EMPLOYMENT RATE EMPLOYMENT RATES EMPLOYMENT SERVICE EMPLOYMENT SHARE EMPLOYMENT STATUS FARMERS FEMALE EMPLOYMENT FEMALE PARTICIPATION FINANCIAL INSTRUMENTS FINANCIAL SERVICES FIRM SIZE FISCAL DEFICITS FISCAL POLICIES FISHING FOOD SAFETY FORESTRY FORMAL LABOR MARKET FORMAL SECTOR WAGES GOVERNMENT EXPENDITURES HEALTH SERVICES HIGH EMPLOYMENT HOUSEHOLD CONSUMPTION HOUSEHOLD SURVEY IMPACT ON POVERTY INCIDENCE ANALYSIS INCIDENCE OF POVERTY INCOME INCOME DISTRIBUTION INCOME REDISTRIBUTION INFLATION INFLATION RATES INFORMAL ECONOMY INFORMAL EMPLOYMENT INNOVATION INSURANCE INTEREST RATES IRRIGATION JOB CREATION JOB FAIR JOB FAIRS JOB MARKET JOB PLACEMENT JOB SEARCH JOB SECURITY JOB SEEKERS JOBS LABOR CONTRACTS LABOR FORCE LABOR FORCE PARTICIPATION LABOR MARKET LABOR MARKET CHARACTERISTICS LABOR MARKET CONDITIONS LABOR MARKET INDICATORS LABOR MARKET OUTCOMES LABOR PRODUCTIVITY LABOR PRODUCTIVITY GROWTH LABOR SHARE LABOR SUPPLY LAND OWNERSHIP LAND REFORM LEGAL FRAMEWORK LEGISLATION LIVING STANDARDS LOW EMPLOYMENT MACROECONOMIC FLUCTUATIONS MARKET DISTORTIONS MIGRATION MINIMUM WAGE MONOPOLIES NOMINAL WAGES OIL OIL PRICES OIL SECTOR OUTPUTS PENSIONS PER CAPITA CONSUMPTION POOR HOUSEHOLD POOR HOUSEHOLDS POVERTY ALLEVIATION POVERTY ALLEVIATION STRATEGY POVERTY ASSESSMENT POVERTY LINE POVERTY RATES POVERTY REDUCTION POVERTY REDUCTION STRATEGY PRIMARY SOURCE PRIVATE SECTOR PRIVATE SECTORS PRODUCTION COSTS PRODUCTIVE ACTIVITIES PRODUCTIVE EMPLOYMENT PRODUCTIVITY DECOMPOSITION PRODUCTIVITY GAINS PRODUCTIVITY GROWTH PUBLIC EXPENDITURES PUBLIC HOUSING PUBLIC SAVINGS PUBLIC SPENDING QUOTAS REAL WAGE REAL WAGES REMOTE AREAS RENTS RETAIL TRADE RETIREMENT RUNNING WATER RURAL RURAL AREAS RURAL EMPLOYMENT RURAL LABOR RURAL POOR RURAL POPULATION RURAL POVERTY RURAL TRANSFORMATION RURAL WORKERS SAFETY SAFETY REGULATION SAFETY REGULATIONS SAVINGS SICK LEAVE SKILL PREMIUM SOCIAL ASSISTANCE SOCIAL CAPITAL SOCIAL INCLUSION SOCIAL INSURANCE PROGRAMS SOCIAL SECURITY SOCIAL SERVICES SUSTAINABLE GROWTH TARGETING TAX RATES TECHNOLOGICAL CHANGE TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY TOTAL UNEMPLOYMENT TRANSFER PROGRAMS TRANSPORT UNEMPLOYED UNEMPLOYED PEOPLE UNEMPLOYMENT UNEMPLOYMENT ASSISTANCE UNEMPLOYMENT BENEFIT UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNEMPLOYMENT SPELLS UNINTENDED CONSEQUENCES URBAN WORKERS VOCATIONAL EDUCATION VOCATIONAL TRAINING WAGE GROWTH WAGE POLICY WAR WORKER WORKERS WORKING POOR YOUTH EMPLOYMENT YOUTH UNEMPLOYMENT Onder, Harun Azerbaijan : Inclusive Growth in a Resource-Rich Economy |
| geographic_facet |
Europe and Central Asia Azerbaijan Azerbaijan |
| relation |
World Bank Study; |
| description |
Azerbaijan experienced a 'golden
age' in the last decade, during which the average
growth rate reached record high levels and poverty decreased
significantly. On average, the economy grew by 15.3 percent
per year in real terms during this period, mainly driven by
the oil sector (21.5 percent growth per year), but with a
significant contribution from the non-oil sector (11.1
percent per year). As a result, poverty declined
dramatically from 49.6 percent in 2001 to 15.8 percent in
2008 the latest year for which household survey data was
available when this report was prepared. This report takes
an inclusive growth approach to investigating the ways in
which the country's high growth was translated into
significant poverty reduction. First chapter summarizes the
sources of growth in Azerbaijan with an emphasis on
structural transformation and discusses highlights of the
inclusive growth methodology. Second chapter explores how
growth helped to reduce poverty. Third chapter analyzes the
sustainability and inclusiveness of the recent growth.
Finally, fourth chapter focuses on the structural obstacles
that constrain further inclusive growth in Azerbaijan. The
last chapter recommends some policies to overcome these
obstacles. The main findings of this report call for a
careful strategy in promoting further inclusive growth in
Azerbaijan. The mechanisms that facilitated drastic
reductions in poverty in the last decade a strong rise in
fiscal transfers and in the real wage were made possible by
the oil boom. However, these mechanisms also reduced the
pace of structural transformation in the Azerbaijan economy.
Distorted incentives in demand and supply sides of the labor
market have seemed to weaken the correlation between
productivity growth and employment shares. This report finds
that the failure to follow a fiscal rule over the past
decade has led to excessive domestic absorption with a
resulting barriers against further development and
diversification in the tradable sectors (principally
agriculture and manufacturing) and against employment
creation within those sectors, as well as leading to an
unsustainable growth in public expenditures, and to
inadequate long-term public savings in the Oil Fund. Thus,
the reassertion of a fiscal rule that constrains domestic
absorption and promotes economic diversification is a
necessary condition for achieving sustained inclusive growth. |
| format |
Publications & Research :: Publication |
| author |
Onder, Harun |
| author_facet |
Onder, Harun |
| author_sort |
Onder, Harun |
| title |
Azerbaijan : Inclusive Growth in a Resource-Rich Economy |
| title_short |
Azerbaijan : Inclusive Growth in a Resource-Rich Economy |
| title_full |
Azerbaijan : Inclusive Growth in a Resource-Rich Economy |
| title_fullStr |
Azerbaijan : Inclusive Growth in a Resource-Rich Economy |
| title_full_unstemmed |
Azerbaijan : Inclusive Growth in a Resource-Rich Economy |
| title_sort |
azerbaijan : inclusive growth in a resource-rich economy |
| publisher |
Washington, DC: World Bank |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2012/12/17097432/azerbaijan-inclusive-growth-resource-rich-economy http://hdl.handle.net/10986/12228 |
| _version_ |
1764419260719824896 |
| spelling |
okr-10986-122282021-04-23T14:02:59Z Azerbaijan : Inclusive Growth in a Resource-Rich Economy Onder, Harun ACCESS TO MARKETS ACCOUNTING AGE GROUP AGRICULTURAL GROWTH AGRICULTURAL LAND AGRICULTURAL OUTPUT AGRICULTURAL SECTOR AGRICULTURAL SERVICES AGRICULTURAL WAGES AUDITING AVERAGE PRODUCTIVITY AVERAGE WAGE AVERAGE WAGES BANKS CAPITAL FORMATION CASH TRANSFERS CENTRAL PLANNING COLLEGE EDUCATION COMMUNITY GROUPS CONFLICT CONSOLIDATION CONSUMPTION EXPENDITURES CREATING JOBS CURRENT PRICES DISTORTED INCENTIVES DIVIDENDS DOMESTIC MARKET ECONOMIC ACTIVITY ECONOMIC DIVERSIFICATION ECONOMIC GROWTH ECONOMIC INTEGRATION ECONOMICS EMPLOYABILITY EMPLOYEE EMPLOYMENT EMPLOYMENT DYNAMICS EMPLOYMENT GENERATION EMPLOYMENT GROWTH EMPLOYMENT OPPORTUNITIES EMPLOYMENT OUTCOMES EMPLOYMENT RATE EMPLOYMENT RATES EMPLOYMENT SERVICE EMPLOYMENT SHARE EMPLOYMENT STATUS FARMERS FEMALE EMPLOYMENT FEMALE PARTICIPATION FINANCIAL INSTRUMENTS FINANCIAL SERVICES FIRM SIZE FISCAL DEFICITS FISCAL POLICIES FISHING FOOD SAFETY FORESTRY FORMAL LABOR MARKET FORMAL SECTOR WAGES GOVERNMENT EXPENDITURES HEALTH SERVICES HIGH EMPLOYMENT HOUSEHOLD CONSUMPTION HOUSEHOLD SURVEY IMPACT ON POVERTY INCIDENCE ANALYSIS INCIDENCE OF POVERTY INCOME INCOME DISTRIBUTION INCOME REDISTRIBUTION INFLATION INFLATION RATES INFORMAL ECONOMY INFORMAL EMPLOYMENT INNOVATION INSURANCE INTEREST RATES IRRIGATION JOB CREATION JOB FAIR JOB FAIRS JOB MARKET JOB PLACEMENT JOB SEARCH JOB SECURITY JOB SEEKERS JOBS LABOR CONTRACTS LABOR FORCE LABOR FORCE PARTICIPATION LABOR MARKET LABOR MARKET CHARACTERISTICS LABOR MARKET CONDITIONS LABOR MARKET INDICATORS LABOR MARKET OUTCOMES LABOR PRODUCTIVITY LABOR PRODUCTIVITY GROWTH LABOR SHARE LABOR SUPPLY LAND OWNERSHIP LAND REFORM LEGAL FRAMEWORK LEGISLATION LIVING STANDARDS LOW EMPLOYMENT MACROECONOMIC FLUCTUATIONS MARKET DISTORTIONS MIGRATION MINIMUM WAGE MONOPOLIES NOMINAL WAGES OIL OIL PRICES OIL SECTOR OUTPUTS PENSIONS PER CAPITA CONSUMPTION POOR HOUSEHOLD POOR HOUSEHOLDS POVERTY ALLEVIATION POVERTY ALLEVIATION STRATEGY POVERTY ASSESSMENT POVERTY LINE POVERTY RATES POVERTY REDUCTION POVERTY REDUCTION STRATEGY PRIMARY SOURCE PRIVATE SECTOR PRIVATE SECTORS PRODUCTION COSTS PRODUCTIVE ACTIVITIES PRODUCTIVE EMPLOYMENT PRODUCTIVITY DECOMPOSITION PRODUCTIVITY GAINS PRODUCTIVITY GROWTH PUBLIC EXPENDITURES PUBLIC HOUSING PUBLIC SAVINGS PUBLIC SPENDING QUOTAS REAL WAGE REAL WAGES REMOTE AREAS RENTS RETAIL TRADE RETIREMENT RUNNING WATER RURAL RURAL AREAS RURAL EMPLOYMENT RURAL LABOR RURAL POOR RURAL POPULATION RURAL POVERTY RURAL TRANSFORMATION RURAL WORKERS SAFETY SAFETY REGULATION SAFETY REGULATIONS SAVINGS SICK LEAVE SKILL PREMIUM SOCIAL ASSISTANCE SOCIAL CAPITAL SOCIAL INCLUSION SOCIAL INSURANCE PROGRAMS SOCIAL SECURITY SOCIAL SERVICES SUSTAINABLE GROWTH TARGETING TAX RATES TECHNOLOGICAL CHANGE TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY TOTAL UNEMPLOYMENT TRANSFER PROGRAMS TRANSPORT UNEMPLOYED UNEMPLOYED PEOPLE UNEMPLOYMENT UNEMPLOYMENT ASSISTANCE UNEMPLOYMENT BENEFIT UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNEMPLOYMENT SPELLS UNINTENDED CONSEQUENCES URBAN WORKERS VOCATIONAL EDUCATION VOCATIONAL TRAINING WAGE GROWTH WAGE POLICY WAR WORKER WORKERS WORKING POOR YOUTH EMPLOYMENT YOUTH UNEMPLOYMENT Azerbaijan experienced a 'golden age' in the last decade, during which the average growth rate reached record high levels and poverty decreased significantly. On average, the economy grew by 15.3 percent per year in real terms during this period, mainly driven by the oil sector (21.5 percent growth per year), but with a significant contribution from the non-oil sector (11.1 percent per year). As a result, poverty declined dramatically from 49.6 percent in 2001 to 15.8 percent in 2008 the latest year for which household survey data was available when this report was prepared. This report takes an inclusive growth approach to investigating the ways in which the country's high growth was translated into significant poverty reduction. First chapter summarizes the sources of growth in Azerbaijan with an emphasis on structural transformation and discusses highlights of the inclusive growth methodology. Second chapter explores how growth helped to reduce poverty. Third chapter analyzes the sustainability and inclusiveness of the recent growth. Finally, fourth chapter focuses on the structural obstacles that constrain further inclusive growth in Azerbaijan. The last chapter recommends some policies to overcome these obstacles. The main findings of this report call for a careful strategy in promoting further inclusive growth in Azerbaijan. The mechanisms that facilitated drastic reductions in poverty in the last decade a strong rise in fiscal transfers and in the real wage were made possible by the oil boom. However, these mechanisms also reduced the pace of structural transformation in the Azerbaijan economy. Distorted incentives in demand and supply sides of the labor market have seemed to weaken the correlation between productivity growth and employment shares. This report finds that the failure to follow a fiscal rule over the past decade has led to excessive domestic absorption with a resulting barriers against further development and diversification in the tradable sectors (principally agriculture and manufacturing) and against employment creation within those sectors, as well as leading to an unsustainable growth in public expenditures, and to inadequate long-term public savings in the Oil Fund. Thus, the reassertion of a fiscal rule that constrains domestic absorption and promotes economic diversification is a necessary condition for achieving sustained inclusive growth. 2013-01-31T17:22:15Z 2013-01-31T17:22:15Z 2013 http://documents.worldbank.org/curated/en/2012/12/17097432/azerbaijan-inclusive-growth-resource-rich-economy 978-0-8213-9759-6 http://hdl.handle.net/10986/12228 English en_US World Bank Study; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC: World Bank Publications & Research :: Publication Publications & Research :: Publication Europe and Central Asia Azerbaijan Azerbaijan |