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Friday | 03 October, 2008

Focus on non-oil tax policy as oil revenues predicted to decline

The IMF has recently published its analysis of the developments in non-oil tax policy, administration and revenues in Azerbaijan. Non-oil tax policy could be an important tool in stimulating the development of non-oil sectors of the country’s economy.

In 2007 the oil sector accounted for over the half of the country’s GDP. Last year 62% of FDI went to the oil industry. While the non-oil sector is reported to grow by 15.6% during the first half of 2008, the oil sector remains the major source of budgetary revenue.

The IMF has warned previously that the growth rates in Azerbaijan are expected to decline significantly after 2010, once oil production passes its peak period. Even though this forecast was later refuted by some experts, who believe that the oil potential of the deep-water oil fields has not been fully explored yet, the importance of development of the non-oil sectors is widely recognized. 

The decline of oil production will directly affect the revenue from the tax collection. Although the non-oil tax revenues have been steadily increasing since 2003 (see the chart below), the collection level still is below its potential. Several reforms aimed at modernizing the tax administration were implemented. Still, the wide-spread underground economy adversely affects the level of tax revenue. To broaden the tax base, the IMF recommends to reduce tax exemptions and benefits, and to make the tax privilege procedures more transparent. Also, to increase compliance, tax regulations, as well as all instructions and forms must be simplified and made easy to understanding of all taxpayers. The author of the report also recommends to reduce direct tax rates and to apply a unified rate to personal and corporate income. Tax and custom administration in general must be strengthened. The paper is available at the IMF website.



Source: IMF 2008
12.10.2015 | Monday

The development of Azerbaijani think tanks and their role in public policy discourse

[Editor's note: This is the fourth in a series of blog posts co-published with On Think Tanks. The views expressed within this blog series are the authors alone, and do not represent the views of CRRC-Georgia.]

By Zaur Shiriyev

The development of local think tanks in Azerbaijan has taken a different route to that followed by most other post-Soviet states and Eastern European countries. In the Eastern Bloc countries, research institutes modeled on Western think tanks became increasingly popular following the collapse of the Soviet Union. However, in Azerbaijan this did not happen, largely due to domestic political developments in the early 1990s.
29.09.2015 | Tuesday

The lay of the land: An interview with Hans Gutbrod on think tanks in the South Caucasus

[Editor's note: This is the second in a series of blog posts co-published with On Think Tanks. The views expressed within this blog series are the authors alone, and do not represent the views of CRRC-Georgia.]

Interview by Dustin Gilbreath

Dustin Gilbreath: You recently recently pointed out that think tanks in the South Caucasus have come a long way in recent years, but that they still face challenges on some of the fundamentals – quality of research, policy relevance, funding, and operational acumen.  At the national rather than regional level, what are the relative strengths of and challenges before the think tank sector of each country?
28.09.2015 | Monday

Thinking about think tanks in the South Caucasus

[Editor's note: This is the first in a series of blog posts co-published with On Think Tanks. The views expressed within this blog series are the authors alone, and do not represent the views of CRRC-Georgia]

By: Dustin Gilbreath

Starting from similarly troubled slates at the turn of independence, the South Caucasus countries – Armenia, Azerbaijan, and Georgia – have diverged over the last 25 years, and the region is an interesting case of divergence despite similarity. While in Azerbaijan the government is squeezing the last bit of free expression from the country, Georgia is having its problems but is by far the freest place in the region. Armenia still has space for engagement, but it is not as open as Georgia.
28.04.2014 | Monday

Trust in Institutions in the South Caucasus

Trust in institutions has often been thought of as negatively related to perceptions of corruption in political institutions. Every year, Transparency International publishes a Corruption Perceptions Index (CPI) which ranks countries from highly corrupt to very clean.
28.05.2014 | Wednesday

Smoking in the South Caucasus and tobacco policy in Azerbaijan

May 31st is World No Tobacco Day as declared by the United Nations. According to the World Health Organization (WHO), tobacco usage is the primary reason for chronic diseases including “cancer, lung diseases, cardiovascular diseases” among other diseases.
09.06.2014 | Monday

Divorce rates in Azerbaijan

In the Principles and Recommendations for a Vital Statistics System, Revision 2 (by the United Nations), divorce is defined as “a final legal dissolution of a marriage, that is, that separation of husband and wife which confers on the parties the right to remarriage under civil, religious and/or other provisions, according to the laws of each country.” This blog post examines divorce in Azerbaijan over the years, by age group, gender and by duration of marriage. The post also explores perceptions of happiness among divorced Azerbaijanis and those who are not divorced. 
07.07.2014 | Monday

Facebook usage in Azerbaijan

On February 3rd, 2014, Facebook celebrated its 10th anniversary. According to the World Map of Social Networks December, 2013 statistics, Facebook is the world’s most popular social network with more than one billion users. It is followed by QZone with 552 million users, Vkontakte (190 million users), Odnoklassniki (45 million users), and Cloob (1 million users). However, it is important to note that social network usage is not distributed evenly geographically. 
29.09.2014 | Monday

Georgians Have High Hopes but Little Information about the Association Agreement with the EU

Optimism abounds with regards to the recently signed Georgia-European Union Association Agreement (AA). Most Georgians, however, lack information about the EU and its relation to the country, including the details of the agreement which directly concern the future of Georgia’s economy. The AA covers many areas including national security, migration, human rights and the rule of law but is primarily a free trade agreement with potentially major implications for employment.
03.11.2014 | Monday

The recent history of the South Caucasus as seen by the world’s media – Part 1, Armenia and Azerbaijan

History has been a qualitative discipline and has often been considered part of the humanities, well, historically, but the emergence of big data is likely to extend the use of quantitative methods in historical research in the long run. Big data projects have aimed at everything from finding out where to pick fruit in your city to mapping the prevalence of AIDS in the United States, but a recent project, Global Database of Events, Language, and Tone (GDELT) has compiled a massive database of print media coverage in over 100 languages including Armenian, Azerbaijani, and Georgian. Originally created by Kalev Leetaru and Philip Schrodt at Georgetown University, the GDELT database contains about a quarter of a billion uniquely coded units starting from 1979.
09.11.2015 | Monday

Household income and consumption patterns in Georgia

After the collapse of the Georgian economy in the 1990s, the country slowly started to recover, and between 2000 and 2014, the gross national income grew from $3.4 billion to $16.7 billion (in current USD). According to the National Statistics Office of Georgia, the official unemployment rate in Georgia was 12.4% in 2014, but according to numerous surveys the rate is much higher.
14.03.2012 | Wednesday

Georgia and the EU’s Economic Woes

Why hasn’t the economic crisis in Europe deterred Georgia’s desire to join the European Union? The majority of Georgians (and the Georgian government) want to join the EU despite crisis in the Eurozone. Yet, the continued crisis, including the Eurogroup’s recent (and second) rescue of Greece’s economy and Hungary’s harsh austerity measures, illustrates that the crisis is not isolated to the Eurozone.
28.07.2011 | Thursday

Upswing of Transition in Georgia

This past summer, Freedom House launched the 14th edition of its Nations in Transit (NIT) report. The publication comprehensively monitors democratic developments in 29 countries from Central Europe to Eurasia, amongst them Georgia, Armenia and Azerbaijan. CRRC is represented in the report with data from the 2010 Corruption Survey in Armenia.
29.09.2011 | Thursday

Is the South Caucasus a homogenous region?

In a recent datablog, the Guardian published a map visualizing how the former Soviet countries are doing 20 years after the fall of the Soviet Union. The map compares the 15 former Soviet countries in terms of economic development, demographics and democratic transition. It also divides the countries into five regions: Russia, the Baltic countries, the EU borderlands, Central Asia and the South Caucasus.
02.11.2011 | Wednesday

A Further Look at Material Deprivation

Continuing to explore standards of living in the South Caucasus, this blog looks at the between four sources of household income and material deprivation using data from the 2010 Caucasus Barometer. Each of the four sources of income (salaries, pensions or government transfers, sales from agricultural goods, and remittances) are categorized by their importance to the household and then cross tabulated with material deprivation. The findings suggest that families reliant on salaries and remittances are better off, while families receiving pensions and government transfers, or those who sell agricultural products as their primary source of income have higher than average rates of material deprivation. 
07.12.2011 | Wednesday

Can a Cut NATO Supply Route Through Russia Benefit Georgia and Azerbaijan?

The 20th anniversary of the dissolution of the Soviet Union is upon us, and US-Russian tensions have risen as Russia contemplates terminating the NATO supply route through Russia. International news reports such as The New York Times detail the threat as a “death blow” to the U.S.-led NATO mission in Afghanistan and indicate that this could be a blessing in disguise for NATO hopeful Georgia, as well as for Azerbaijan.
26.12.2011 | Monday

Boy or Girl? Child Gender Preference in the South Caucasus

Survey data shows that there is a strong preference for male children over female children throughout the South Caucasus. As mentioned in the March 4, 2010 edition of The Economist, after 1991 there has been an increase in the ratio of boys to girls in Armenia, Azerbaijan and Georgia. The sex ratio rose from 103-106 boys to 100 girls in 1991 to 115-120 boys to 100 girls by 2000. The 2010 Caucasus Barometer (CB) indicates that gender preferences in the South Caucasus remain skewed in favor of males with 54% of Armenians, 27% of Azerbaijanis and 46% of Georgians prefer to have male children if given a choice.
19.03.2010 | Friday

Gender imbalances | The South Caucasus on the top of the list

Earlier this month The Economist published two articles (article onearticle two) on imbalances in gender. In all societies there is, at birth, a sex ratio slightly biased in favor of boys: 103-106 boys to 100 girls. The number evens out later on as male babies have a higher mortality rate than female babies. In some parts of the world, however, there currently is an abnormally high number of boys being born.
30.03.2010 | Tuesday

2010 Big Mac Index | Increased differences between Baku and Tbilisi

In 2007 we wrote a blog post on the Big Mac Index, an index published by The Economist as an informal way of measuring purchasing power parity (PPP). The idea is that a dollar should buy you the same amount in all countries, and as a Big Mac is assumed to be produced in the same way everywhere it can serve as a point of comparison. You can thus determine how far off the exchange rate is between countries, in terms of citizens’ ability to buy the same “basket” of goods and services (in this case a Big Mac hamburger).
 
02.07.2010 | Friday

Post-Soviet States’ Democratic Decline: Results from Freedom House Report

Freedom House has just released its Nations in Transit report for the year 2010. The report attempts to quantify democratic development in Central European and Eurasian states by observing 8 separate factors – for instance, Electoral Process and National Democratic Governance - which affect the level of democracy in a given country. Each category is graded on a score of 1 to 7, with 1 representing the highest level of democratic progress, and 7 representing the lowest. Much of the media attention has typically focused on Russia.
29.10.2010 | Friday

Small changes in corruption rates in the Caucasus

On October 26 Transparency International released the results of the 2010 Corruption Perception Index (CPI). The CPI is a measure of domestic, public sector corruption in 178 countries, rating them on a scale from 10 (very clean) to 0 (highly corrupt). Nearly three quarters of the countries in the index score below five and the South Caucasus countries are no exceptions.
05.11.2010 | Friday

Overcoming Negative Stereotypes in the South Caucasus

CRRC hosted a presentation on October 27 by Onnik Krikorian, a British journalist of part-Armenian descent and the Caucasus editor for Global Voices, entitled “Overcoming Negative Stereotypes in the Caucasus: New and Social Media in cross-border communication and conflict reporting.”
11.11.2010 | Thursday

Award Ceremony of the JRFP-Azerbaijan

Here are some photos from the award ceremony of the first stage of the Junior Research Fellowship Program – Azerbaijan (JRFP) that was organized in a cozy Baku restaurant. The winners of the competition for the best policy essay were awarded iPods, and other participants who had submitted essays received book vouchers. 
14.11.2010 | Sunday

The Media in Armenia and Azerbaijan: Effective or Affective?

Many academics argue that the influence of the media is especially strong in environments where citizens depend on a limited number of news sources. In contrast, when citizens have alternative sources of information they are less subject to the potential effects of media.
09.12.2010 | Thursday

PISA 2009 | Results for Azerbaijan

Every three years, a range of countries take part in the educational PISA tests, an assessment of the competencies of 15-year olds. The tests are organized by the OECD, and have led to soul-searching and vigorous educational reforms in various countries. In the 2009 round, 34 OECD countries and 41 partner countries took part.
10.12.2010 | Friday

Policy Attitudes towards Women in Azerbaijan: Is Equality Part of the Agenda?

By Yuliya Aliyeva Gureyeva, Baku

The paper published in the 21st edition of the Caucasus Analytical Digest presents an account of how two competing policy approaches coexist in the policy attitudes towards women in Azerbaijan. 
21.01.2008 | Monday

The Global Broadband Speed Test

According to CRRC's 2007 Data Initiative 2007 (visit www.crrccenters.org), around 3% of the population have Internet access at home in Georgia; nevertheless, we were curious to know how fast these people’s Internet speed is across the Caucasus.
22.02.2008 | Friday

Bertelsmann Transformation Index | Using a New Interactive Tool to Analyze the Caucasus

Many of our readers know of both our quibbles with indexes, but also our steadfastness when it comes to posting about them. The Bertelsmann Foundation released its trademark index, the Bertelsmann Transformation Index (BTI) (PDF), which according to its producers, is "the global ranking of the quality of democracy, the market economy and political leadership in 125 developing and transformation countries."
27.02.2008 | Wednesday

Inflation in Armenia? | Lecture by IMF Representative

Readers here may not be aware that actually our Armenian CRRC also runs its own blog, to announce and describe CRRC's events. One of the most recent events was a lecture by the IMF Resident Representative in Armenia, Dr. Nienke Oomes.
17.03.2008 | Monday

PISA in Azerbaijan | Take 2 | great maths scores

In a previous post we wrote about the PISA scores of 15-year olds in Azerbaijan. As you may recall, PISA is an international test of competency, primarily focusing on reading, mathematics and science. Azerbaijan deserves particular praise for participating in this challenging international exercise: the results in science were not altogether flattering, but it's better to take part than to stand aside, and it can only be hoped that Georgia and Armenia will also be taking part soon.
31.03.2008 | Monday

Brookings Index of Regime Weakness | State Rebuilding or State Collapse in the Caucasus | The Annals of Data

Yet another index was released recently -- Brookings Index of State Weakness in the Developing World. One professor of mine in graduate school, who was a veteran hot spot worker, related that all of the conflict professionals keep their eye on this map to see where they are going next. In this year's version of the index, however, it's where they already are: Somalia, Afghanistan, the Democratic Republic of Congo and Iraq top the list.
11.04.2008 | Friday

Armenia and Azerbaijan’s Performance | Millennium Challenge Corporation’s Meta-Index

A previous blog entry on Millennium Challenge Corporation’s Meta-Index, as you may recall, presented Georgia’s performance. For those who do not know, Millennium Challenge Corporation (MCC) uses data from the research of various organizations such as the IFC, the World Bank Institute, UNESCO, Freedom House and others. Millennium Challenge Corporation recently released an assessment through its annual scorecard, which has three main policy categories: Ruling Justly, Investing in People, and Economic Freedom.
03.05.2008 | Saturday

Exit Polls | Take Two

Readers may recall that we voiced some concern with regards to exit polls. Here is a fascinating account, first-hand, by a reputed pollster having what they describe as an "Adventure in Baku".
22.07.2008 | Tuesday

Caucasus Data: Tolerance towards Others

The CRRC Data Initiative (DI) gives people an opportunity to do interesting cross-country comparisons of the South Caucasus (SC) people’s attitude toward their neighbors. This subject is quite sensitive and complex when thinking of the fact that the SC stands out for its sequence of ethnic conflicts.
12.09.2008 | Friday

Doing business in Azerbaijan: easy in theory

Results of the World Bank’s Doing Business 2009 project, claims to present "objective measures of business regulations and their enforcement across 181 economies and selected cities at the sub-national and regional level", were made public today.
24.09.2008 | Wednesday

Baku's Urban Change | Commentary and Photography

Interested in urban development? Want to know how outsiders describe the urban experience of Baku? Two young researchers from Germany have set up a blog to follow their project in tracking changes in Baku. Oriana Kraemer and Sebastian Burger take photographs, attend lectures, and comment on what they observe. Given the inflow of sudden wealth, Baku witnesses comprehensive change. A great project, therefore.
08.11.2008 | Saturday

World Public Opinion: Azerbaijan in Focus

World Public Opinion is the initiative of the Program on International Policy Attitudes (PIPA) of the University of Maryland that explores public opinion on a variety of topics in 25 countries across the globe, including Azerbaijan, the only South Caucasus country represented in the survey. Russia and Ukraine are the other two former USSR countries that the project includes.
26.11.2008 | Wednesday

CRRC-Azerbaijan Past Events Summary


If you didn’t have time or are just too far away to attend a lecture at CRRC Azerbaijan, you can now get information about our past events from our main website.
02.12.2008 | Tuesday

Exploring Azerbaijani Views on Alternative Energy

We have written previously about the World Public Opinion project of the Program on International Policy Attitudes at the University of Maryland. The project has recently released interesting data on energy issues based on the poll conducted in 21 countries. According to the WorldPublicOpinion.org publication, the majority of Azerbaijanis favor alternative energy development. 64% (compared to 77% average of 21 world countries) think that solar and wind power should be promoted more strongly in the country. Increasing the energy efficiency of buildings is also favored, while opinions split on the expansion of coal/oil-fired and nuclear power plants.
11.12.2006 | Monday

Gabala Radar Station -- local health awareness

Rashida Abdullayeva examined a curious relic from Cold War days: in Gabala, Northern Azerbaijan, there is a giant radar station, which is leased out to Russia until 2012. According to reports citing the Russian Ministry of Defence the radar station has a range of up to 6000 km, was designed to detect missile launches from the Indian Ocean, and hosts around 1200 Russian servicemen.
08.05.2017 | Monday

Debts and Loans in Georgia (Part 1)

In Georgia, where, according to the World Bank, a third of the population live on under USD 2.5 per day, poverty and unemployment are consistently considered the most important issues facing the country. For those who are struggling financially, borrowing is a widespread coping mechanism. While access to credit can have benefits, debt can also have psychological costs, such as increased stress and anxiety. CRRC’s 2015 Caucasus Barometer (CB) data show interesting patterns about having personal debts in Georgia. The first part of this blog post focuses on the characteristics of those who report having personal debts in Georgia, while the second part looks at the money lending patterns, as well as reported well-being of people who are owed money or who borrow it