Hello!

It has been more than a year since my last post on this blog. I ultimately decided to post this update for the occasional visitor.

Since August of 2022 I have been pursuing my master’s degree at Princeton School of Public and International Affairs (SPIA). The heavy workload of the program have significantly diminished my ability to dedicate time to writing on the blog – hence the lack of content during the past year. With the pontential exception of sharing one of the papers I wrote for my classes, I reckon this inactivity will continue until the summer of 2024 when I will be graduating and moving back to Azerbaijan.

I have greatly enjoyed my experience at Princeton so far. The economic policy classes has given me many research/blogpost ideas for the near future. I had the great privilege to take classes from minds like Atul Kohli, Mark Watson, Stephen Redding, Ashoka Mody, Henrik Kleven, Seema Jayachandrand, and will be taking classes from Alan Blinder and Atif Mian next semester.

Overall, I learned much at Princeton – and perhaps unsurprisingly started to disagree with some of my arguments on this blog from the previous years! I therefore advice caution in case you delve too deep on my previous blog posts and discover my undergraduate take on economic issues of Azerbaijan.

UPDATE (DECEMBER 2024): Unfortunately, the blog will remain inactive for the foreseeable future, as I started working at the Research Department of the Central Bank of Azerbaijan a few months ago.

Fueled by the Russian invasion of Ukraine, the price of BRENT crude oil in the first five months of 2022 has averaged 103 USD per barrel. This is substantially above the 50 USD per barrel price which Azerbaijan’s policymakers used when drafting the state budget for 2022. With a sizable surplus in the budget of the State Oil Fund (SOFAZ), Azerbaijan’s fiscal policy faces another challenge.

Continue reading “Azerbaijan’s Fiscal Challenge” →

With a decree on November 5^th, the minimum wage in Azerbaijan has been increased from 250 AZN to 300 AZN per month. With this post, I am going to analyze the minimum wage policy of Azerbaijan and try to come up with suggestions on how to improve it.

Continue reading “Minimum Wage Policy of Azerbaijan” →

In the state budget of 2021, Azerbaijan plans to spend 506 million AZN for agricultural subsidies, equaling 1.8% of its total expenditures. Considering the importance of the agriculture for the rural population, as well as the hefty cost of the program, I decided to write a brief post about the subsidies.

Continue reading “Agricultural Subsidies of Azerbaijan” →

It always seemed odd to me that a country like Azerbaijan with small area/population and underdeveloped tourism sector has 6 international airports. To add insult to the injury, the government recently announced the construction of another international airport in Fuzuli. There are even rumors of one more airport to be built in Kalbajar in the near future. Considering all these, I decided to take the specific example of Zagatala and showcase why such projects are likely to bring minimal benefit at best.

Continue reading “Story of the Unflown Airport – Zagatala International Airport” →

Many of the social, economic and political problems of Azerbaijan can be explained by a multitude of factors. In my opinion, above all, we must recognize the impact of the education system. Therefore, I decided to dedicate my next couple of posts to the national education policy.

Continue reading ““Free” Education of Azerbaijan” →

State Oil Fund of Azerbaijan (SOFAZ) without a doubt plays a major role in the national economy. Created in 2000, the Fund’s vital role in Azerbaijan motivated me to share my thoughts on the matter…

Continue reading “State Oil Fund of Azerbaijan – A Disoriented SWF” →

Frequently we hear stories of economic growth propelled by increasing government expenditures. An expansionary fiscal policy achieved with extensive government spending is usually enough to stimulate consumption in times of recessions. On the other hand, in such a situation, the resources are not allocated efficiently, and the growth may not be sustainable in the long run.

Continue reading “Azerbaijan’s Concrete based Economy” →

It is an inevitable fact that State-Owned Enterprises (SOEs) are in every aspect of our daily lives in Azerbaijan. From basic utilities, such as electricity, gas, water, to transportation and banking, we are surrounded by large SOEs. Some of these enterprises, such as “Azerishiq”, “Azerqaz”, “Azersu”, “Baku Metro”, “Azerbaijan Railways” operate in an absolute monopolistic environment where there is no other provider in the industry. Some others, including “International Bank of Azerbaijan”, “Azer-Turk Bank”, “State Insurance Commerce Company of the Azerbaijan Republic” and “Azerbaijani Airlines (AZAL)” operate in a slightly more competitive setting. However, just like everything that has got something to do with government in our economy, these SOEs also take their fair share of problems.

Continue reading “SOEs of Azerbaijan: Natural Inefficiencies” →