Economic power aimed at social policy

Economic power aimed at social policy

21 June 2019, 17:37 666

The social policy pursued in Azerbaijan is successfully continued. Further improvement of the social welfare of the population has always been one of the main priorities of the state policy. Thus, the results of the work done in this field recently are obvious. As the country's economy grows, the state budget revenues increase, more attention is focused on this field. At the beginning of the year, the head of state signed an order to increase minimum wages, pensions and allowances. As a result of this order, the minimum wage has been raised again by 250 manat. Naturally, the dynamic development of the country's economy plays a key role in making these decisions. So what else needs to be done in the economic sphere to continue the social policy in the future?

According to economic expert Rashad Hasanov, Azerbaijan's target is to increase the minimum wage to 60 percent of the average monthly wage. "Now, the minimum wage will be 45 percent of the average monthly wage. That is, there is a need to further increase the minimum wage. In this case, we will be able to adapt to world standards. Removing the imbalance between average monthly wages and minimum wages, along with ensuring social justice, will also have an impact on eliminating the imbalance between welfare indicators. The decisions taken are crucial in removing some gaps. Because at the beginning of the year the minimum wage was 130 manat and the living minimum was 190 manat. Decisions on the elimination of this shortages are important. The minimum wage will be 250 manat, which is 25% higher than the living minimum. It is also necessary to evaluate the impact of the orders signed over the last four months on the structure of the state budget. The share of social spending in the structure of the state budget was 32 percent in 2019, which was very low. On average, this figure can be up to 60 percent. In the world practice, this figure is about 80 percent. The decisions taken will have an impact on the growth of social spending. All this will have a positive impact on the social indicators in Azerbaijan and this process should be continued," he said.

The expert added that there is quite enough work to be done in the economic sphere. "Ensuring functioning of the laws adopted so far is one of the key issues. Azerbaijan has significantly improved its position in Doing Business Index over the past two years. However, economic growth is not at the expected level yet. The transformation of the changes into the economy is going a little slower. That's why the first thing to do is to work in this direction. Moreover, improvement of governance should become a priority of economic reforms. This is a very important point. In a number of cases, various organizations are trying to sabotage economic reforms. If such problems are solved, the interest of foreign investors will also increase. Economy liberalization traditions should be continued, competitive environment should be developed. Azerbaijan should be able to get more favorable opportunities and skills for the development of its economy by representing at different blocs, such as the World Trade Organization and the European Union. Some steps are taken in this regard. Social policy is being pursued in the re-distribution of revenues. Decisions on increasing minimum wages, wages for state employees, and improvement of pension provision mechanisms have contributed to the further strengthening of the social basis of the reallocation of revenues. I think that this process should be continued in the future as well," he noted.

Economist MP Azer Badamov called the orders of the head of state revolutionary decisions. "In terms of strengthening the social protection of the vulnerable population, these orders should be highly appreciated. They will increase the income of the country sufficiently and will have a serious impact on the population’s living standards and well-being. A few months ago, a decision was made to raise the minimum wage and pensions. Signing of each order tells about the economic power of the country. The economy of Azerbaijan is steadily developing and strengthening. The main policy of the country's president is to direct the growing economic power to social policy. The basis of the president's policy is the human factor. Orders are also adopted for this purpose. It should be noted that sustainability and continuance of such orders will be ensured in the future. The work done gives grounds to say that this policy will be implemented continuously. In this sense, the adoption of such decisions in the future is not excluded as economic stability is provided in the country's economy. Economic growth rates are maintained. The non-oil sector also experiences development. Revenue from this area is increasing day by day. All of this creates sufficient opportunities to increase social spending. The country's economy will also achieve great success in the near future. We will be witnessing greater successes. The social status of the country's citizens is being strengthened in parallel with the development of the country," the MP emphasized.