Private Sector Losses in Azeri Export

Private Sector Losses in Azeri Export

More than 95,0 % of total export volume in Azerbaijan belonged to state sector in the first half of 2012- said CESD sources at State Customs Committee. The export amounted to $ 12,7 billion and state share was $ 12,1 billion In the same period. Contribution of the private sector in the export made $577,9 million or 4.5 %, of individuals – $73,7 thousand or only 0.05 %.

CESD experts mentioned that this fact confirmed that state sector dominates in Azerbaijani economy. In spite of the fact that private sector share in the economy is 80,0 %, still this sector has weak position in Azeri export.

According to CESD experts main reasons of domination of state sector in export are high portion of oil products in Azeri export since oil contribute more than 92,0 % of total export (i); existing administrative and artificial barriers to export although there is “0” rate export fee, not all companies can export from Azerbaijan in practice (ii); weak position of private sector (iii); sharp monetary policy of Azerbaijan where “Expensive Manat” (local currency) makes export goods very costs since manat has appreciated against dollar and euro starting 2005 (iv); and lack competitive drive among local business (v).

CESD reported that state will keep dominant position in export unless existing administrative and artificial barriers to export is not lifted and current monetary policy of the country is kept.

© CESD, 2012

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