"Main directions of state support and policy regarding factors accelerating economic development of different regions in the years of 2004-2008 has been determined within the State Program on socio-economic development of regions of Azerbaijan Republic. The main objective of the program is implementation in a consistent and coordinated manner of measures directed at ensuring efficient use of internal resources of economic regions of Azerbaijan Republic, development of sectors bearing particular importance for the economic regions, further expansion of production activity of enterprises, stimulation of export-oriented production of goods, increase of employment levels through development of local entrepreneurship, further improvements in the living standards of population and dynamic development of the economy."
Here is an official release of the discussion of results of this program:
This program has also been referred many times as a successful program: http://az.apa.az/
Although this program hasn't specified any numerical goals, I just wanted to share some statistics on industrial and agricultural output of the four largest cities (after Baku), Ganja, Sumqait, Mingechevir and Sirvan.
Overall the nation's industrial output almost doubled during 2005-2009 (all numbers are in constant prices). If we exclude Baku, Absheron and Nakhchivan regions, only 12 out of 54 regions outperformed the average, and industrial average in 42 regions were below average growth. Ganja, Sumqait and Mingechevir are among top 15 worst performers. In fact, Ganja is the number 1 worst performer - 2009 output was about 40% of 2005 level. This number for Sumqait is 50% (number 5) and for Mingechevir 58% (number 11). Sirvan is 24th worst performer with 5% less output than 2005. Some more numbers: Azerbaijani economy grew about 8.6% in 2009. Sumqait is number 2 slowest growing city (48% contraction), Ganja is number 8 (30% reduction), Mingechevir number 9 (28% reduction) and Sirvan is number 26 with 7% reduction. During the last 3 years, Ganja's and Mingechevir's industrial output declined three years in a row (with large rates), Sirvan's industry contracted again three years in a row, but at a slower rate. Only Sumqait had 1 year growth during the last 3 years.
Now let's look at agriculture. Just for brevity, I will focus on wheat and some other important products and compare 2009 to 2005. Ganja's wheat production went from 307 ton to 17 ton. Sumqayit increased from 0 to 6 ton. Mingechevir increased from 2 to 110 ton and Sirvan reduced from 2 to 0. Vegetable production - Ganja 457 to 251 ton, Sumqait from 469 to 135 ton. Almost the same occurred in Mingechevir and Sirvan. Fruit production has slightly increased in all cities. Meat production stayed the same in Ganja and Mingechevir but slightly increased in Sumqait and Sirvan. The number of livestock increased significantly in all cities.
During 2004-2009, four cities had total of 1.1 billion manat investment into fixed capital, mostly for construction. Sumgayit spent 670 million manat, and others have spent 150 million manat, each. I would expect to see somewhat positive impact of this investment on either industry or agriculture, but the numbers show the opposite.
These numbers do not reflect all aspects of economic performance in the regions, but they are enough to make judgement about the "success" of state program. I would truly hope the government officials finally respect their nation (and particularly the economists who can, at least, read and compare the numbers), and stop lying about obscure "successes" of its regional development program. They truly need a heads up from economists and think about how these regions can prosper in real terms. The heads of executive power of these cities should be held accountable for poorest performance of their cities. Unlike what's happening now: being rotated to another large city or appointed to a higher position.
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