The Republic of Azerbaijan has been pursuing an independent policy in the sphere of economy, like all other spheres, since 1991, when independence was restored. In this sense, not pleased of going public and private to build an economy based on market economy and able to integrate into the global economic system, the government started many-sided reforms through the regional state policy.

Measures taken to revive the general economy through assuring the regional development are continued. The process of socioeconomic development of regions can be divided into 4 phases conditionally:

1) 1991-1995 – crisis;

2) 1995-2003 – leadership of national leader Heydar Aliyev;

3) 2004-2008 – first presidency of Ilham Aliyev: accomplishment of State Programme on Socioeconomic Development of Regions of the Republic of Azerbaijan for 2004-2008;

4) 2009-2013 – second presidency of Mr Ilham Aliyev: accomplishment of State Programme on Socioeconomic Development of Regions of the Republic of Azerbaijan for 2009-2013.

The phase of crisis covers a very difficult historical period. Pressure by other states on the state having recently gained its independence, occupation of our territories by Armenia, which caused harm to regions, political instability dominating in the country, chaos resulted by civil war for the power brought to the decline and crisis of economy.

The policy carried out in the second phase started after the return of great leader Heydar Aliyev to the power in 1993 eliminated this crisis. Particularly “Contract of Century” signed in 1994 started a new phase in the history of independence and towards economic development.

From the very first day of his presidency started in 2003, Mr Ilham Aliyev began taking necessary steps for the development of Azerbaijan as a worthy successor of the national leader.

President Ilham Aliyev signed on February 11, 2004 a decree on the implementation of the State Programme on Socioeconomic Development of Regions of the Republic of Azerbaijan for 2004-2008. Also, 17 orders were signed on the intensification of socioeconomic development of towns and districts subordinated to economic districts of Guba-Khachmaz, Sheki-Zagatala, Shirvan, Lankaran, Aran, Ganca-Gazakh and Yukhary Garabagh. So, the 3rd phase began in the economic development of regions.

Socioeconomic development of regions as result of the implementation of the Programme improved population’s incomes and life standard. According to the State Statistics Committee, during 5 years of accomplishment of the Programme nonoil sector grew 1,8 times, volume of investments made in this sector rose 6,2 times, while its special weight in the structure of general investments increased from 26,8% of 2003 to 69% in 2008. Domestic industry grew 2,5 times, agriculture 25,2%.

As continuation of the Programme, the President of Azerbaijan signed on April 14, 2009 the State Programme on Socioeconomic Development of Regions of the Republic of Azerbaijan for 2009-2013, which started the 4th phase.

As part of the Programme a modern infrastructure was created, regions’ supply with gas, water, electricity and other public utilities improved, transport ways, educational and medical institutions in regions repaired and reconstructed, 275 million AZN credit granted to entrepreneurs with grace period, and other works done.

Thus, all these indices demonstrate the level of development of the Azerbaijani economy as result of the actions taken over the past 10 years.

Laman Khalilova,
"Azerbaijan Realities".