Azerbaijan can develop the non-oil sector by allocating funds for agriculture

/By AzerNews/

By Aynur Karimova

Azerbaijan, the only Caucasus country with significant prospects for comprehensive development, is keen on diversifying its national economy, in particular the non-oil sector.

A successful energy policy pursued by the government has enabled the South Caucasus country not only to stand on its own feet, but also to decrease dependence on petrodollars.

Nariman Agayev, the Chairman for Research on Sustainable Development Center, believes that Azerbaijan can develop its non-oil sector by investing in the agricultural sector.

He told local media that after three years, this sector of the national economy will bring significant revenues to the state budget.

"The prospects for the development of our agriculture, suitable for export, are equal to $6 billion a year. Therefore, it is necessary to pay a great attention to this sector, to develop it and invest in it," he noted.

The expert believes that the need for processed agricultural products is very high.

"Therefore, Azerbaijan would also invest in the development of refrigerated wagons used for the transit of perishable goods, long-term storage of which is possible only at low temperatures. Russia needs at least 1,000 of these wagons. If we have such wagons, we would ensure our welfare without oil and gas, at least for 20-25 years. We would deliver our products to Magadan in such wagons. Once they appear, we will gain good income in a year. We will deliver our products, and bring, for example, marine products on the way back," Agayev added.

Last week, speaking at the opening of the “Qalaalti Hotel & SPA” health and recreation complex in Shabran, President Ilham Aliyev said that Azerbaijan's development depends not on energy resources but on the non-oil sector, so the government will pay special attention to agriculture and tourism.

"We need to lay oil and gas aside, to forget about them. And the day will come when oil prices will have no meaning for us. Because the industry, agriculture, tourism, ICT sectors are developing in Azerbaijan and should develop even more rapidly," President Aliyev noted.

The government of energy-rich Azerbaijan has been taking significant measures to develop the non-oil sector, which as a result has shown a growth between 10 to 15 percent over the last 2-3 years. Relevant programs were adopted at the state level on the development of the non-oil sector, covering mainly the agriculture, industry, and IT sectors.

2015 was declared the Year of Agriculture in Azerbaijan with an expectation of involving state financial resources in this sector and promoting the country's agrarian potential.

Azerbaijan's State Statistics Committee reports that some 3.435 billion manats ($3.2736 billion) was invested in the country's oil sector in January-June 2015, and this indicator is 15.97 percent more compared to the same period of 2014.

Around 4.491 billion manats ($4.28 billion) was invested in the non-oil sector of the national economy. As a result, investments made in the oil sector amounted to 43.3 percent and 56.7 percent in the non-oil sector in the reported period.

Azerbaijan also plans to export products worth $26.8 billion in 2015, some $2.7 billion of which will be goods in the non-oil sector. The Azerbaijani government predicts the share of non-oil sector in Azerbaijan's GDP to be at 65.1 percent for 2015, which is 5.5 percent higher than the forecasts for 2014 and 8.5 percent higher than in 2013.

Today, Azerbaijan is actively developing the non-oil sector of the national economy, thanks to its growing economy backed by energy wealth, internal stability, and a Western-oriented policy. In this regard, the main slogan of the government is "to change oil capital into human capital".