The Center for Analysis of Economic Reforms and Communication (CAERC) is one of the most successful institutions established under the leadership of President Ilham Aliyev as part of structural reforms. The institution has a flexible and compact structure and a strong staff base. It implements innovative projects and, most importantly, according to the charter, carries out such functions as analysis, monitoring, evaluation, and communication. To obtain information about the activities of CAERC in the context of a pandemic, we had an interview with the Executive Director of CAERC, Doctor of Economics Vusal Gasimli.
1. Mr. Gasimli, how do you assess the Center for Analysis of Economic Reforms and Communication activities in the context of new realities?
The government of Azerbaijan demonstrates an example of how the crisis created by a pandemic, drought, low oil prices, and Armenia's military provocation at the border can be simultaneously managed. The Center for Analysis of Economic Reforms and Communication also organizes its activities in the conditions of new realities considering the requirements arising from its charter. First of all, realizing their responsibility in the current situation, our employees demonstrate teamwork based on professionalism and statehood principles. Digital solutions implemented by CAERC allow us to work remotely, especially during the pandemic. Our innovative projects hold great promise for the post-pandemic period. In the current environment, communication has increased even more, both locally and internationally. For this, the analytical apparatus of the Center provides a communication policy by using the necessary analytical materials. In this sense, the monitoring and evaluation of government programs and strategies that we carry out provide support both in providing proposals for reform and preparing information materials for communication. The analytical apparatus of CAERC is sufficiently prepared to develop government strategies and programs. So, the main functions of CAERC - analysis, monitoring, evaluation, and communication - create a synergistic effect. In this regard, the role of CAERC as a platform for dialogue between the public and private sectors helps to ensure the effectiveness, targeting, and inclusiveness of economic policies and reforms.
Our entire team works following the Center's strategic development plan. Recently, CAERC has made new appointments to managing positions. On the one hand, it was a meritocratic approach, but on the other hand, these changes further increased the motivation of the team. The most important is that under the leadership of Mr. President Ilham Aliyev and in response to his trust, the CAERC team realizes the importance and responsibility of their work and is always happy to serve our statehood and our people.
2. How, in the context of a pandemic, does the Center for Analysis of Economic Reforms and Communication carry out work in the field of monitoring and evaluation considered to be one of the main activities of the Center?
Since the activities of the Center for the Analysis of Economic Reforms and Communication were completely digitalized from the very beginning, it was not difficult for us to adapt to the conditions of the pandemic. As you know, the Center monitors 12 strategic roadmaps, including government documents in areas such as expanding digital payments, reducing the negative impact of plastic waste on the environment, ensuring food security, employment strategy, geological exploration of the earth's interior and efficient use of mineral resources. After processing the reports received from about 50 government agencies connected with the implemented work, online discussions were held with the working group representatives, and the final documents were prepared. The portal www.monitoring.az was launched to monitor and evaluate strategic roadmaps, government programs, strategies, and action plans.
The World Bank report "Building Effective, Accountable and Inclusive Institutions in Europe and Central Asia" notes that Azerbaijan has become an example of good results-based management by applying innovative solutions in monitoring and evaluation. The World Bank sets the institute for digital monitoring and assessment, established in Azerbaijan, as an example of other countries' creative experience. With the support of the United Nations Development Program, the World Bank, the European Union, BP, and our other partners, we have built practical cooperation in applying monitoring and evaluation methodologies in the local context and improving this area's skills. The key is to move from activity-based monitoring and evaluation to results-based monitoring and evaluation. It is also consistent with results-based budgeting. At the same time, by order of the President of the Republic of Azerbaijan "On additional measures to improve the efficiency of public administration" dated March 17, 2020, new tasks assess the activities of both local and central executive authorities. The conditions created by the pandemic have posed new challenges for public investment management, including monitoring and evaluation.
The institutional memory, candidate pool, software, and methodological framework formed today in the sphere of monitoring and evaluation at the Center for Analysis of Economic Reforms and Communication will be useful for further work.
3. We know that your Center is working in close cooperation with the Commission on Business Environment and International Rankings. What is the situation in this area?
The activities of the Center for Analysis of Economic Reforms and Communication in the field of monitoring and analysis allow us to collect a "large database" in the area of economic policy. Now there is no need to talk about the importance of data. In particular, the data obtained as a result of monitoring and evaluation can be used in the preparation of new reforms. Thus, a "wise circle" is created between reform, on the one hand, and monitoring and evaluation, on the other.
We have created a digital platform not only for monitoring and evaluation but also for the reform process. Azranking.az, the portal of the Commission on the Business Environment and International Rankings, regularly posts and updates information on the composition of working groups and their activities, video presentations on ongoing reforms, necessary data on international ratings, and comparative analysis.
Our Center provides support in the organization of meetings of the Secretariat and working groups of the Commission and in conducting and coordinating proposals that will be considered at meetings of the Commission, the activities of working groups. All steps are being taken to ensure that the Commission on Business Environment and International Rankings functions as a public-private dialogue platform. In particular, the Center for Analysis of Economic Reforms and Communication is working to attract entrepreneurs, international organizations, independent experts, NGOs, and consulting companies to the reform process. Today, the main composition of the Commission on the Business Environment and International Rankings, including working groups, is made up of representatives of non-state structures, and that creates the basis for the inclusiveness of reforms.
4. Your Center also has a robust analytical apparatus. What areas does your analytical work cover?
The Center has established a laboratory for economic analysis "EconLAB". The laboratory has versions of five models for analysis at the macro, meso, and micro levels. The tests have already been carried out. The first international presentation of "EconLAB" took place at the Institute for Economic Policy, located in Sofia, Bulgaria. The laboratory capabilities let to analyze the influence of investment costs on the total output volume by economy sectors. Besides, the study of short-term and long-term effects of the pandemic on the economy and, mainly, on the tourism industry was carried out with further development and presentation of a corresponding document.
Economic analyzes and forecasts have been prepared based on the International Monetary Fund's Financial Programming model (IMF). The study "Potential growth in the non-income sector" analyzed the issues of employment, labor, capital, and productivity prepared estimates and forecasts by sources of growth, current account, budget, and monetary sector. Besides, based on the Financial Programming model, the Lab conducted the study to calculate the fiscal multiplier for Azerbaijan and analyzed the impact on income, social benefits, consumption growth, and imports. Also, a regression analysis was carried out between the capital investment of the budget and the construction sector's growth rate. Based on the IMF External Balance Assessment (EBA-lite) regression model, an analysis of the current account and real sufficient exchange rate deficit for 2019 was conducted.
The Center for Analysis of Economic Reforms and Communication, together with ADB and the Australian University of Victoria, developed the ORANI model for Azerbaijan.
The data obtained in the course of monitoring and evaluation and a powerful analytical apparatus allows us to take an active part in the development of various government programs and strategies.
5. During the pandemic, the importance and scope of electronic commerce are increasing. In this context, the creation of the Azexport.az portal can be considered as foresight.
Yes, the creation of the Azexport portal in 2016 by the President was a strategic step. For comparison, the attempts to create an e-commerce platform based on public-private partnerships, both globally and in Azerbaijan, have not always been successful. The Azexport portal, in addition to demonstrating Azerbaijani products on international trade electronic display windows, also brings our country orders for export worth billions of dollars. Along with that, Azexport makes a significant contribution to training and professional development in e-commerce. The Azexport.az portal and the Worldef Business School and a representative of the Worldef and the My Broker customs office implemented the Amazon and Electronic Commerce Distance Learning project. The project was carried out from April 30 to May 19, 2020. The Azexport portal, together with the International Trade Center (ITC), is currently conducting online training as part of the Ready for the Trading project. The course included training on international electronic payments, building an e-commerce site through WordPress / WooCommerce, registering e-commerce companies in the United States and Europe, and solutions for maintaining an active account on the Amazon e-commerce platform. In partnership with the Azexport.az portal, an online discussion was held for exporters in the Russian market on the topic "E-Commerce: the Best Practices of Azerbaijan and Russia." The Council for the Development of Electronic Commerce of the Chamber of Commerce and Industry of the Russian Federation and the Azexport portal has reached a preliminary agreement on the mutual implementation of successful new electronic models.
In general, Azerbaijan is taking systematic measures to develop e-commerce. Azerbaijan is the first country to adopt the Framework Agreement on the Facilitation of Cross-border Paperless Trade in Asia and the Pacific. Azerbaijan ranks first in a global study by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) on facilitating digital and sustainable trade. According to all indicators, Azerbaijan is among the advanced countries of the world and a leader in Southern and Eastern Europe, the Caucasus, and Central Asia. I was invited to give an opening speech at the Sixth Interim Intergovernmental Steering Group's Meeting on the Facilitation of Cross-Border Paperless Trade, which will take place on September 28-29 this year.
6. One-Stop-Shop Export Support Center Also Contributes to the export. How is the activity of this organization conducted during the pandemic?
The increase in our exports is associated with new challenges, one of which is simplifying trade procedures. Created by the Decree of President Ilham Aliyev dated February 23, 2017, the One-Stop-Shop Export Support Center provides flexible, compact, and transparent practices and increases entrepreneurs' satisfaction. By issuing permits and certificates for all types of goods and products exported from the country, Government authorities working in the Export Support Center facilitate exporters' operations and prevent them from loss of their time and costs. Over the past three years, the export with a total value of about 400 million US dollars has been carried out through the One-Stop-Shop Export Support Center. The satisfaction level of entrepreneurs using the Center's services is estimated at the level of 99 percent.
Moreover, the One-Stop-Shop system provides entrepreneurs with online services. CAERC was the first to introduce an online single export application, which provides entrepreneurs with the opportunities to carry out all procedures at a distance. Besides, entrepreneurs who cannot use electronic applications and want to receive a full consultation on the documentation for obtaining permits contact the Center and receive the necessary information for taking the next step - implement their export. At the moment, One-Stop-Shop has built cooperation with Kapital Bank to provide banking services in such areas as a letter of credit, factoring, and export insurance. In short, support is provided in all areas required for the export.
7. One of the innovative projects of CAERC is the EnterpriseAzerbaijan.com portal. What are the activities of the portal at the moment?
Currently, the EnterpriseAzerbaijan.com portal cooperates with the British Council and successfully implements the Creative Spark project together with the Newcastle University. This project includes seminars, meetings, and training integrated into the portal www.enterpriseazerbaijan.com. Within the Creative Spark project framework, intensive training for trainers was held on innovative business teaching methods in February of this year. The seminars involved 16 teachers from 3 universities, selected as pilot ones (UNEC, BMU, and ADAU). Professors moderated the panel from Newcastle University, a partner of the Center for Analysis of Economic Reforms and Communication.
After placing the startup from Azerbaijan on the world-famous global crowdfunding platform Kickstarter, EnterpriseAzerbaijan.com also provided it with professional support in developing an introductory video and other presentations. EnterpriseAzerbaijan.com and the International Bank of Azerbaijan have initiated a competition that offers Azerbaijani startups and innovative projects to access foreign financial resources through international crowdfunding. We continued implementing the race after switching to an online mode of operation. However, it was postponed due to the pandemic. At the moment, 10 of all the projects sent for participation have been selected. Soon, the winners will be announced. They will receive professional support in the preparation of presentations.
Fourteen projects, which the portal www.enterpriseazerbaijan.com supported, were presented in the State Employment Service's "Self-employment" program for. The portal cooperates with the State Employment Service and continues to work in this area.
Also, in February of this year, within the framework of cooperation between the Center and Microsoft Azerbaijan, the portal www.enterpriseazerbaijan.com held seminars at the Center on the topics "Project Management Systems" and "Integrated Analytics and Data Visualization".
8. The world's second Digital Trade Hub (DTH) was established in Azerbaijan. Your Center is the operator of this hub. How does DTH realize its goals?
The Digital Trade Hub (DTH) was established on February 22, 2017, by the Decree of President Ilham Aliyev No. 1255. Due to the hub, Azerbaijan has become the second country to provide electronic and mobile signatures. It has created conditions for non-residents and our citizens living abroad to use various electronic services and engage in entrepreneurial activities without coming to Azerbaijan.
About 100 citizens from 30 countries have already applied for using the electronic and mobile residency services and received Azerbaijan's digital residency. These countries include the USA, Denmark, Sweden, Belgium, Germany, Italy, Spain, Great Britain, Greece, Brazil, South Africa, Japan, Russia, Belarus, Estonia, and others. The multinational interest in the program interested Estonia, and recently, the world-famous portal www.e-estonia.com published an extensive article about it.
The DTH has implemented joint projects with representatives of both the private and public sectors to expand the range of services provided and ensure user convenience. Together with Pasha Bank, the DTH successfully implemented a pilot project on opening corporate bank accounts at a distance. At the same time, the DTH, together with the ASAN Service, the Central Bank, the State Tax Service, the State Migration Service, the Ministry of Foreign Affairs, the Ministry of Economy, and the Ministry of Labor and Social Protection of the Population provided digital solutions in various areas and built cooperation for the implementation of new projects. In general, it should be noted that the principle of the public-private partnership implemented by the Digital Trade Hub has supported the provision of unique and functional digital services in a broader format both in our country and abroad. Thus, during its operation, the Digital Trade Hub has done significant work in both electronic and mobile residency and cross-border operations and has become one of the important projects contributing to Azerbaijan's digitalization.
9. What kind of measures are being taken for communication of the economic reforms?
The Center for Analysis of Economic Reforms and Communication operates about 40 Internet resources, including www.iqtisadiislahat.org, www.ereforms.org, www.ecoreform.az, www.azexport.az, www.enterpriseazerbaijan.com, www.azerp.az, www.azranking.az, www.monitoring.az, as well as six pages on Facebook, three pages on Twitter, two pages on Linkedin, three pages on Instagram, and Youtube channel. At the beginning of 2020 alone, about 120, or in other words, two to three press releases a day, were sent to mass media sources. This news reflected both the economic reforms being carried out in the country and the activities of CAERC. Our special editions, such as Export Review, Reform Review, and Video Review, are released weekly. Each issue of the Export Review (once a month) includes a briefing by the Center. The Export Review is published monthly, starting from April 2017. The purpose of the Review is to educate entrepreneurs about export, increase opportunities to bring products to be traditional and new markets, and accelerate integration into international markets. Starting from 2018, the Reform Review has been published in a new format. The Review serves to raise awareness about economic reforms.
News is published in Azerbaijani, Russian, and English languages in Azerbaijan and abroad. Over the past month, CAERC has been represented on such international platforms as the UN, World Bank, Organization for Economic Cooperation and Development, International Trade Center, Italian Treasury, E-Estonia, Daily Sabah, and Interfax.
Hundreds of thousands of people are subscribers to our pages on social networks. We organize live Facebook coverage of some of our events, as well as online press conferences. Currently, CAERC, the Central Bank, and the Bank Training Center are conducting online training on responsible lending. Training on the responsible lending policy was held for journalists within the framework of "Educational activities to prevent excessive debt of the population on loans." Also, booklets have been prepared covering such topics as "Calculation of credit potential", "Consumer loans: peculiarities of payments", "Easy loan: to take or not?", "Rights and obligations of the guarantor".
10. Recently, CAERC's "Reform Volunteers" organization has been active. In a year of volunteers, such activity is of great importance. How do Reform Volunteers work?
Since 2016, CAERC has been organizing an internship program for young people to improve their skills and knowledge, gain experience, and participate in events, training, and projects organized by the Center. It also promoted youth to choose a career path and maintain and improve the economic development of our country. By the Presidential Decree of December 30, 2020, that declared 2020 the Year of Volunteers, a group of Reform Volunteers was created at our Center based on the Internship Program. The volunteers actively participated in the creation of the portals Azexport.az, EnterpriseAzerbaijan.com, and the activities of the One-Stop-Shop Export Support Center. Some of them were provided with jobs in CAERC, while others were allowed to work in public and private structures. They continue their studies at foreign universities for gaining masters and doctoral degrees.
Up today, more than 300 young people have received certificates. Those who have distinguished in their work were given positive characteristics and letters of appreciation. During their internships, young people work in various departments of the Center and conduct research. Information about volunteers who have achieved success in their careers is published on the pages of social networks of the "Reform Volunteers" group under the heading "Volunteer of the Week".
Over the past two months, the "Reform Volunteers" organization, in the condition of a pandemic, organized several video conferences with the participation of the Chairman of the Parliamentary Committee Tahir Mirkishili, the Head of the State Migration Service Vusal Huseynov, the Chairman of the State Committee for Work with Diaspora Fuad Muradov, and the Head of AzTV Rovshan Mammadov. The purpose of these videoconferences is to properly guide our youth, improve their professionalism, and instill moral character in them. Thousands of volunteers participate in videoconferences organized by Reform Volunteers. The organization continues carrying out such activities. Reform Volunteers also conducts online conferences on a variety of topics with members around the world.