Since the opening of the Baku-Tbilisi-Ceyhan pipeline in May 2005, Azerbaijan has experienced a major surge in economic growth and poverty reduction. At the same time, the non-energy sectors of the economy remained underdeveloped. As a result, the Azerbaijan government faces major challenges in translating extractive-sector economic growth into a diversified and sustainable economy.
Within this context, USAID provides technical assistance and training designed to support strategic economic reforms required to promote long-term economic and social stability, promote economic diversification, and further integrate Azerbaijan into international markets. USAID works to strengthen the competitiveness of selected sectors in Azerbaijan by helping farmers to increase the quantity and quality of products, and local businesses and entrepreneurs to address issues of food safety, storage and competitiveness. USAID also supports trade and policy reforms to eliminate barriers to business growth. USAID provides assistance to Azerbaijan to prepare itself for World Trade Organization (WTO) accession, supports the development of a competitive, transparent, and business-friendly environment that is conducive to job creation, private sector growth, and long-term prosperity, and enhances the capacity of the commercial banks to provide sustainable market-based financial intermediation services to small and medium enterprises (SMEs).
In addition, USAID programs also support the development of a more robust financial sector through risk-based banking supervision, strengthening of the Financial Monitoring Service of the Central Bank of Azerbaijan, and improved fiscal modeling and forecasting methodologies. USAID’s work contributes to a more conducive environment for the sustainable development of SMEs in Azerbaijan and supports the development of the future workforce through an internship project for 3rd and 4th year university students. The students are placed with private firms to gain business skills and real-world work experience.
Last updated: February 05, 2015