ADB to support effective economic policy management in Azerbaijan

The Asian Development Bank (ADB) has launched a technical support project in Azerbaijan to increase knowledge management for more effective economic policies. The plan will last until the end of 2022.

The cost is $ 380,000 and will be funded by the ADB Special Fund for Technical Support (TASF).

The project aims to enhance public administration and institutional capacity. Besides, it will contribute to the achievement of the UN Sustainable Development Goals in Azerbaijan.

The knowledge and support technical assistance (TA) will help strengthen evidence-based economic policy-making in Azerbaijan by improving its knowledge management system.

The project is implemented within the Asian Development Bank's Cooperation Strategy for Azerbaijan for 2009-2022 and is taken as a critical element in improving the Bank's outreach in Azerbaijan.

Azerbaijan has undergone a significant economic transformation since it regained independence in 1991. The economy continues to rely heavily on hydrocarbon export revenues and remains vulnerable to external shocks. Since 2016, the government has been spending significant sums on reforms to accelerate the non-oil economy development.

The TA is aligned with the following impact: efficiency of government spending on economic reforms improved. The TA will have the subsequent outcome: the effectiveness of economic policies improved.

Azerbaijan has started to position itself as a donor. In November 2019, the government announced pledges to the International Development Association ($5 million) and the 13th replenishment of the Asian Development Fund ($2 million); and allocation of $2 million to the European Bank for Reconstruction and Development for delivery of knowledge and project preparatory work in Azerbaijan. In March 2020, Azerbaijan announced the provision of $5 million to the COVID-19 Fund of the World Health Organization.