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NEWSLETTERS
OF THE ASSOCIATION OF YOUNG ECONOMISTS.
MONTHLY
NEWSLETTERS FOR THE YEAR
2002;
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December
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Name
of the project: Poverty
Monitoring Center.
Supported by: OXFAM
GB Humanitarian Organization.
POVERTY
MONITORING CENTRE BULLETIN
November, 2002.
About
the Poverty Reduction Strategy
-
On
25 October State Program on Poverty Reduction and Economic
Development
has been presented. Next coming process is the process of
monitoring. This and other issues will be discussed at the
third forum to take place in Alma Ati (Kazakhstan) from 11
to 13 December. The event is initiated by World Bank. Coordinators
of the same program from seven countries of Commonwealth of
Independent States (CIS) will come together for the exchange
of thoughts, information and experience.
Activities
of the Poverty Monitoring Center
- Colloboration
- On 12
November UN expert on the process of participation in PRSP Mr.
Michael
Reynoldz had the meeting with the coordinator of Poverty Monitoring
Center (PMC) Mr. Azer Amiraslanov. Un expert has initiated such
a meeting after the acquitance with the materials of PMC at
www.azerweb.com relted to the work carried out by PMC on PRSP.
The expert has higly appreciated the activity of PMC over this
direction. At the same time issues on the possible colloboration
have been discussed.
-
Representative
of OXFAM GB from England has visited the office of PMC and
recommended the expansion of the posetive experience gained
by the center to other countries and organizations.
-
Round
Table
-
On
18 November the Association of Young Economists within the
frame of
Poverty Monitoring Project has conducted a round table on
"Economic Enlightenment and information on economics".
Wide exchange of opinions took place at the event over the
issue raised for discussions. The flow of event as well thoughts
marked has been lightened by the State Radio within the program
"Vaxt".
-
On
30 November joint round table has been organized by The Association
of
Young Economists and "Hafta Ichi" (Weekly News)
newspaper on; "Strategy on Poverty Reduction and Sustainable
Development".
Regional Trainings
-
From
1 to 3 November the coordinator of the Poverty Monitoring
Center Mr. Azer
Amiraslanov had given an informatique report in the city of
Sheki on the State Program on Poverty Reduction and Economic
Development. Negotiations have been carried out and an agreement
has been reached with the authorities of the city on dissemination
of information among the city folk.
- From
8 to 9 November the coordinator of the Poverty Monitoring Center
Mr. Azer
Amiraslanov had given an informatique report in the city of
Ganja on the State Program on Poverty Reduction and Economic
Development. Negotiations have been carried out and an agreement
has been reached with the authorities of the city on dissemination
of information among the city folk.
- From
15 to 16 November the coordinator of the Poverty Monitoring
Center Mr.
Azer Amiraslanov had given an informatique report in the city
of Mingachevir on the State Program on Poverty Reduction and
Economic Development. Negotiations have been carried out and
an agreement has been reached with the authorities of the city
on dissemination of information among the city folk.
- From
22 to 23 November the coordinator of the Poverty Monitoring
Center Mr.
Azer Amiraslanov had given an informatique report in the region
of Jalilabad on the State Program on Poverty Reduction and Economic
Development. Negotiations have been carried out and an agreement
has been reached with the authorities of the city on dissemination
of information among the city folk.
-
Radio
On
19 November the round table organized by the Poverty Monitoring
Center on
Economic Enlightenment and information on economics",
exchange of opinions on the role of NGOs in the process of
economic lightening has widely been lightened at the "Vaxt"
program of Ganjlik redaction of Azerbaijan State Radio.
- On 20
November the coordinator of the Poverty Monitoring Center Mr.
A.
Amiraslanov has given an interview to "Antenn" Radio
on the problem of poverty. Informing the radio audience on State
Program on Poverty Reduction and Economic Development, A. Amiraslanov
also spoke of the perspectives of Azerbaijan over the poverty
reduction and also replied to the questions of the audience
online.
Sociological survey carried out among the ordinary citizens
on "Do you consider yourself as poorly" has also been
broadcasted at the program. The program has been prepared within
the frame of Poverty Monitoring Center.
- Press
- Newspaper
"525-ci" 2 October 2002. "There is no country
without the problem of
poverty". (By Samir Pashayev).
On 25 October has been adopted the State Program on Poverty
Reduction and Economic Development. The aim of preparation of
such a document was to have the reduction of poverty in the
country. Due to the problem faced now some parts of the society
think that it was better in Soviet times. Is this true do we
have the poverty due to the change of economic system. In order
to find answers to these questions we have had a meeting with
the coordinator of the Poverty Monitoring Center Mr. Azer Amiraslanov;
"To say true the base for poverty has been established
during Soviet times. Radical policy carried out by administrative
means and aimed to the equality has created the ground for the
higher level of poverty during the transition period. Deepening
of the poverty during the transition period is the result of;
rise of inflation, decrease of real incomes, problems with the
payment of salaries, rise of unemployment, decrease of purchase
ability etc.
The poverty is not just social - economic problem. It is also
an obstacle for the development of democracy. As experience
proves the process of democratization is low in the countries
where the level of poverty is high. Big part of the people living
in the poverty lives in the regions. That is why the struggle
with poverty should cover the regions too."
- Newspaper
"Express"; "The number of pensioners is increasing".
(By Parviz
Heydarov). Increase of the pensions and allowances do not seem
real this year. However there was the promise for that. Give
away of the compensations to the people with low income for
the payment of communal expenditures did not let to the government
to calculate its incomes. Of course that is a subjective opinion.
But this year it is planned to spend 145 billion manats. In
1995 the amount to be spent from the state budget for the social
protection and social providence was 182 billion manats, last
year the figure increased four times. And increased from 8.5
% of the budget expenditures to 18 %. Increase of the expenditures
for social issues is the results of increase of the incomes
of the budget.
However the level of pensions has had very little increase and
for the remarkable increase we must have the reforms in this
field. The exact mechanism should be worked out for the social
providence of the citizens. In general if the level of pensions
will be estimated coming out from the level of minimum purchase
basket, in this case we can talk about the civil providence.
At the moment we can not estimate the current pension providence
as so.
- Newspaper
"Xalq"; "The perspectives of the poverty reduction
in Azerbaijan".
(By Azer Amiraslanov).
As in all post soviet countries in Azerbaijan the level of poverty
deepened during the period of transformation. Poverty can not
be assessed as the outcome of the events of last years. It is
true that the existence of poverty has been denied during Soviet
times however it existed in the form of low incomes. As economic
transformations started the structure of the people living in
poverty has changed. In this period we got in the poverty not
just pensioners, invalids, big families we also got new poor
people in the form of; unemployed people, people getting minimum
salaries, IDPs and refugees, homeless people.
Some people specify the poverty as characteristic to the market
economy and assess it as an outcome of the new system. It should
be underlined that the new system does not create the poverty
in itself. The poverty is remarkable and deeper in the countries
with insufficient system of social protection and unfair distribution
of incomes.
The principles of the poverty reduction strategy can be as follow;
- coordination
of social and economic policies
- creation
of economic providence for the poverty reduction
- protection
of the principles of social fairness
- creation
of the maximum opportunities for the realization of the potential
of the citizens
- development
of market relations
- protection
of macroeconomic stability
- minimization
of the financial dependence of the citizens on state
Poverty
Monitoring Centre/The Association of Young Economists.
Prepared by: Ismayil Tahmazov. Data and Entry specialist.
E-mail:
Postmaster@aye.i8.com
Tel: (994-12) 934-794, 930-364.
***********************
Name
of the project: Poverty
Monitoring Center.
Supported by: OXFAM
GB Humanitarian Organization.
POVERTY
MONITORING CENTRE BULLETIN
October, 2002.
About
the Poverty Reduction Strategy
--
The working group, created by the decree of the president
of Azerbaijan Republic
dating to 2 March 2001, for the preparation of the "State
Program on Poverty Reduction and Economic Development"
has finished its work. On 25 October at Gulustan palace took
place the presentation of the program. The president of Azerbaijan
Republic, Speaker of the Parliament, Prime Minister, Ministers,
Members of the Parliament, representatives of; state authorities,
international finance organizations, Local and Foreign NGOs,
Embassies were the among of participants. Hundred of representatives
of local and foreign media attended the conference. State
program soon will be approved by the president.
Activities
of the Poverty Monitoring Center
Round
table
" On 1 October The Association of Young Economists within
the project of
Poverty Monitoring Center organized a round table on "The
role of private business in poverty reduction". Wide
exchange of opinions between experts as well discussion of
different aspects of unemployment took place at the round
table.
Conference
" On 11 October at the United Nations Training &
Resource center The
Association of Young Economists within the frame of Poverty
Monitoring Project (PMC) organized a conference on "Sustainable
Human Development Strategy". Coordinator of the project
on SHD S. Huseynov spoke of the strategy and the problems
of Sustainable Human Development. Well known scholars, experts
have attended the conference.
Enlightenment
" The Association of Young Economists within the frame
of Poverty
Monitoring Project (PMC) prepared, published and disseminated
the poster on Poverty.
TV
-
On
21 October Coordinator of Poverty Monitoring Center (PMC)
A.
Amiraslanov gave an interview for the "Economics"
program of Space TV on Poverty Reduction Strategy.
-
On
24 October within the frame of PMC project the Association
of
Young Economists organized a talk - show on "Bu bizik"
program of Space TV. Parliament members, representatives of
World Bank & IMF, state officials, heads of working groups,
scholars, independent experts and economists have participated
in the program.
Poverty and its features, reasons creating poverty, opportunities
for poverty reduction have widely been discussed in the program
that lasted 1 hour.
-
On
25 October Coordinator of Poverty Monitoring Center (PMC)
A. Amiraslanov gave an interview for the "Xabardar"
program of ANS TV on Poverty Reduction Strategy.
-
On
4 October the round table organized by poverty Monitoring
Center on "The Role of Private business in Poverty Reduction"
has widely been lightened at the "Chevra" program
of Ganjlik redaction of Azerbaijan Radio.
-
On
25 October Coordinator of Poverty Monitoring Center A. Amiraslanov
gave an interview to "BBC" radio on The program
of Poverty Reduction and Economic development.
-
On
26 October Coordinator of Poverty Monitoring Center A. Amiraslanov
gave
an interview to "Azad Azerbaycan" radio on The program
of Poverty Reduction and Economic development.
-
Newspaper
"Express" 2 October 2002. "Middle class is
the guarantee
for Poverty Reduction".
Decrees signed by the president of Azerbaijan aimed to the
development of private sector indirectly affect the poverty
reduction in the country. Because Poverty Reduction is up
to the environment created in the country for the development
of private sector. Yesterday experts gathered in the Poverty
Monitoring Center have been discussing this issue. As to the
words of the coordinator of the center A. Amiraslanov some
positive changes are seen for the development of private sector,
he said so at the round table on "The role of the private
sector in Poverty Reduction". Share of the private sector
in the Common Internal Product is 71 %, in the industrial
production 50 % and in the agriculture the figure is 99 %.
-
Newspaper
"525-ci" 2 October 2002. "Poverty will get
reduced if private
sector develops".
The Association of Young Economists (AYE) continues implementation
of the Poverty Monitoring Center Project that is backed by
OXFAM GB. AYE has organized many round tables, yesterday the
discussions have been carried out on "The role of private
business in poverty reduction". As to the head of AYE,
A. Amiraslanov lately high attention has been given to the
development of private business. Adoption of Concrete programs
is systemizing its development. Support to private sector
is not surprising, this sector becomes a decisive sector in
economy.
In general state by supporting private sector make good use
of it in the solution of social, economic problems. In State
Program for Poverty Reduction and Economic Development stated
that private sector has important role in Poverty Reduction
and the development of private sector is shown as the important
element for achievement of strategic aims.
- "
Newspaper "525-ci" 5 October 2002. "Who are the
poor people?".
The idea of developed countries on reducing the poverty in less
developed countries has become a political-economic stream.
At the moment by the help of developed countries many different
projects, programs are being prepared in less developed countries
on poverty reduction. Countries thus developed without any projects
or programs now are thinking of reducing the number of the poorly
twice. Azerbaijan that is also a less developed country is under
the influence of this initiative. Financial resources for the
program being prepared in Azerbaijan for Poverty Reduction are
known.
-
"
Newspaper "Express" 8 October 2002. "Real level
of the poverty". How
this can be determined?
As to us, determination of the real level of poverty in Azerbaijan
will remain a difficult thing to do for a long period of time.
Because its worldwide mechanism of calculation is a problematic
issue. As practice proved in every different country poverty
level has its features. So alien calculation can be accepted
as correct one.
For example UNO's method of study of Human Development has
changed many times since 1990. At the moment there are a couple
of indicators for that. I the past Common Internal Product
(CIP) volume for each person was an indicator however lately
average life duration, level of education & health are
added and considered during calculations. Lately real incomes
of the people have increased a lot. Through 1995 - 2001 2.5
times increase has been registered. Just a reminder that through
1991 - 1994 real incomes of the people decreased 3.6 times.
Last year money incomes of the people increased for 10%. Without
doubt this is due to the increase of salaries and strict financial
credit policy. Volume of CIP for each person has got an increase
starting from 1996. On 1996 the volume was 416$, 1997 513$,
1998 570$, 1999 509$, 2000 618$ and in 2001 a little bit more.
Increase of internal production with this temps and increase
of purchase ability of the people is a good fact. However
this is due to the fact that the budget is social profiled.
-
"
Newspaper "Express" 8 October 2002. "How will
be financed the program on
Poverty Reduction?"
This month the program on Poverty Reduction and Economic Development
will be adopted. Nation wide conference will take place on
25 October 2002 and will serve to the presentation of the
program.
After the adoption by the government the document will be
send to World Bank headquarter in Washington. After the adoption
of the program by the Bank's Directors Council the program
will have first transh and the implementation will start.
Realization of the program also will be supported by EBRD,
UNO, IMF, ADB.
Discussions are carried on with International Financial Institutions
on financial resources expected to be shared for the program
on Poverty Reduction. Finance issue of the program yet to
be arranged.
Common budget of the projects foreseen for 3 years is 3 billion
US dollars. 700 million of the total sum will be provided
from the state budget.
For coverage of the rest of the sum discussions are being
carried out with WB, EBRD, IMF, ADB and other financial institutions.
IMF representative in Baku Mr. Michael Mered said that though
16 million USD was planed to be shared for Poverty Reduction
Program, this resource will not be given. After receiving
and analyzing reports on tasks carried out within the program
IMF has made this decision.
As to the Mered's commitment Azeri government firstly should
implement responsibilities it has taken from IMF, after this
transh will be given.
Resources of OIL Fund must be used for education, health and
creation of new employment posts within the program as to
Mr. Marco Barsotti, coordinator of UNDP.
However some financial establishments think different on the
resources of OIL Fund. So needed sum for Poverty Reduction
Program is clear however the names of international organizations
and the sums planned to be given are yet to be determined.
-
"
Newspaper "525-ci" 12 October 2002. "Where
the society is
headed by human-nature confrontation".
Yesterday at the UN Training and Resource center took place
a conference on "Sustainable Human Development Strategy".
Representatives of different NGOs have participated at the
conference organized by the Association of Young Economists.
As to the words of Mr. Sakit Huseynov, coordinator of the
OXFAM GB supported project on Sustainable Human Development
Strategy, preparation of such strategies have started since
the middle of XX century: "Already human-nature relations
demand stabilization".
Economic-industrial activities of the humanity seriously and
negatively affect the nature. That is why countries gathered
in Rio de Janeiro in 1992 and decided to start preparations
of the document on Sustainable Development. The document foresees
providence of social-ecological needs of the modern generation
without endangering coming ones. As to the mind of Sakit Huseynov
sustainable development are based on three factors; social,
economic and ecologic.
S. Huseynov also spoke of the conception on "Sustainable
Human Development" being prepared in Azerbaijan. The
document speaks of the dangers and effects of; economy, social
environment, ecologic environment, drug using, corruption,
education, health and suicide to the human development.
-
"
Newspaper "Express" 12 October 2002. "Coming
generations are
endangered".
Member of the work group on the preparation of the document
on Sustainable Human Development Mr. Sakit Huseynov said so
at the conference organized at the UN Resource & Training
Center. Representatives of many NGOs attended the conference
organized by The Association of Young Economists (AYE). Declaring
the conference open head of AYE Mr. A. Amiraslanov marked
that the preparation of the strategy on Poverty Reduction
has started since march of previous year and the participation
of civic society has been insured. As well local NGOs foreign
organizations also participated in this process. OXFAM GB
is also assisting respectively. After the decision of the
Cabinet of Ministers dating to October of 2001 on the preparation
of the strategy on Sustainable Human Development, activities
have started over sustainable human development within the
OXFAM GB supported Poverty Monitoring Center project.
-
"
Newspaper "Xalq Cebhesi" 12 - 14 October 2002. "Demographic
state is not critic".
As to the words of Mr. S. Huseynov, Member of the working
group on the preparation of Sustainable Human Development
Strategy, independent expert and the coordinator of the OXFAM
GB supported project on the preparation of the conception
on Sustainable Human Development, in Azerbaijan preparation
of above mentioned strategy has started since 2001. State
bodies and NGOs have participated in the preparation of this
document that has been initiated by the UNO.
The project that is implemented by the technical assistance
of the Poverty Monitoring Center that is also supported by
OXFAM GB, speaks of the mutual relations between humanity
and nature.
-
"
Newspaper "Express" 17 October 2002. "The role
of the budget in Poverty
Reduction". The mechanism on minimum consumption budget
should be working in the country.
The main feature of the Program on Poverty Reduction and Economic
Development is that it will demand expenditures of 3 billion
for all foreseen actions during three years. At the moment
the sum is equal to the total amount of Azerbaijanian budget
for three years. Without doubt during the adoption and implementation
of the program budget will raise but the raise of the budget
to 3 billion during the period of implementation of the program
is not real. Anyway as declared budget will contribute 700
million US dollars for the needs of the program. In general
1.3 billion US dollars must be paid from the internal reserves
as to the information of the Ministry for Economic Development.
We are interested in an other side of the issue. We marked
the budget due to the fact that in anyway Poverty reduction
will depend on it. And coming out from this point one question
comes up basing on what mechanism 3 billion US dollars will
be used appropriately? Strategic aim is not the dissemination
of the money or raise of allowances. But achievements by sustainable
procedures. Mentioned resources will be used by the foreseen
period of time and sustainable resources must be possessed
for improvement of social economic state of the people. So
this means proper budget policy. In general people of the
country with poor budget can not live well. That is why all
the actions aimed to; the insurance of economic development,
creation of new employment positions, increase of the income
of the people and improvement of the welfare, must serve to
this aim. However proper budget policy by the increase of
the incomes should not nominally increase the salaries and
different payments. Everything should be done on the real
base.
-
"
Newspaper "Express" 30 October 2002. "How much
the level of
the poverty will be reduced?"
Azerbaijani government has finished the preparation of the
State Program on Poverty Reduction and Economic Development
and has presented the program to the public.
As it become clear from the program level of poverty in Azerbaijan
is 49% and people getting less than 120.000 manats per month
are considered as poor. Three billion US dollars are required
for the implementation of the program. No agreements are gained
with WB, IMF and other financial institutions on the amounts
to be shared. Program will cover the years 2003-2005. After
the adoption by Azeri government the document will be send
to the head office of WB in Washington DC. As to the words
of state officials the level of poverty will be sharply reduced.
Coordinator of the Poverty Monitoring Center Mr. Azer Amiraslanov
shared his thoughts over the issue with Express; "Poverty
causes in the people spiritual deformation, fear, mistrust
to the future; poverty is that the citizen can not sustain
his minimum needs. Government is determining the value of
minimum needs. Basing firstly on the value of consumption
basket will be calculated the minimum for the life. Minimum
for the life is an indicator for the level of poverty.
49% of the citizens are not able to sustain their minimum
needs. However we can not consider the rest of the citizens
as the representatives of the middle class. It is world wide
orientation that by 2015 the level of the poverty will be
reduced for 50%. Our officials saying that by 2005 we shall
have very sharp reduction of the poverty. Azerbaijan has good
opportunities for the poverty reduction. Realization of this
potential will surely help to the poverty reduction. And this
program will not be a passive, conserved program".
-
"
Newspaper "Yeni Azerbaycan" 31 October 2002. "Azerbaijan
has potential
opportunities for the reduction of poverty?"
State Program on Poverty Reduction and Economic Development
has been adopted. Priorities for the realization of the projects
foreseen by the program are clarified. Governmental bodies
and NGOs have participated in the process of the preparation
of the program. Head of the Association of Young Economists
and the coordinator of the Poverty Monitoring Center Mr. Azer
Amiraslanov was one of the members of the working group engaged
into the process of the preparation. We could get the thoughts
of the coordinator of the Poverty Monitoring Center on the
program;
"For the solution of social problems as well for poverty
reduction the government could prepare programs on social
protection or social development. The program is on Poverty
Reduction and Economic Development so it foresees economic
base and justification by resources available for social programs
and protections.
The Strategy on poverty reduction should take into account;
coordination of economic policy with social policy, providence
of economic protection for poorly, protection of social justice,
providing environment for realization of potential of citizens,
development of market economy, providence and protection of
macroeconomic stability, minimization of citizens financial
dependence on the state.
Democratic changes in the country, wide liberalization of
the market, and support to the private sector are creating
new perspectives for the improvement of the life of our citizens".
Poverty
Monitoring Centre/The Association of Young Economists.
Prepared by: Ismayil Tahmazov. Data and Entry specialist.
E-mail:
Postmaster@aye.i8.com
Tel: (994-12) 934-794, 930-364.
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