Transformation of the conditions of socio-economic development of Azerbaijan in the post-pandemic period (by September 2020)

Abstract

The global economic crisis and the spread of the pandemic virus in a short period have radically changed the world around people. The curtailment of production, the closure of different kinds of services, self-isolation, and the distribution of virtual contacts has become characteristic in the state of almost every country. Depending on the level of socio-economic development, not all countries are equally experiencing this difficult period of crisis in modern civilization. The spread of COVID-19 and the global economic crisis, accompanied by a sharp drop in oil prices, have had a significant impact on the socio-economic condition of the oil exporting countries. Azerbaijan, such a country facing these emerging problems, has taken steps to prevent the spread of the pandemic beyond the metropolitan region. Thanks to a balanced fiscal and monetary policy of the government, as well as the availability of sufficient foreign exchange reserves, the negative impact of the above factors has been minimized. The implementation of the oil strategy of the republic has created favorable conditions for the development of the non-oil sector of the economy. Participation in international transport and logistics projects contributed to the development of inter-district and intra-district transport infrastructures. An extensive network of transport and communication systems has favored the economic development of the regions of the republic. Despite the changing conditions of social economic development of the country, the process of creating infrastructure facilities continued. Of course, the new conditions have adjusted the implementation of state programs for the construction of new economic and socially significant facilities. Large financial deductions from the sovereign Oil Fund of the republic allowed for the shortest possible time to put into operation mobile hospitals, enterprises for the production of medical masks, as well as subsidies to support small and medium enterprises. The new picture more actualizes the development of the non-oil sector of the economy, especially the agricultural sectors. With this in mind, when developing a new strategy for the future development of the republic, one should take into account the lessons of the occurrence of previously unforeseen risks. This will mitigate the blow of new possible cataclysms and get out of the crisis situations with the least social and economic losses.