Economy 19:03 18/04/2013

Radio Liberty: Only oligarchs and bureaucrats get richer in Azerbaijan, but poverty index worsen

"It’s hard to live. I receive targeted social assistance in the amount of 44 manats (about 44 euros. - Ed.). My family consists of six people. We must pay for electricity and gas. It costs 20 – 30 manats. How to live? We also need to eat," said Baba Vusalova a resident of the Azerbaijani town Xachmaz.

According to the Azerbaijani service of Radio Liberty, similar complaints are often heard on receptions of citizens by government officials in some regions of Azerbaijan. The article notes that some observers may notice contradiction between these statements and the speech of President Ilham Aliyev made at the meeting of the Cabinet of Ministers of Azerbaijan about the fact that the income of the population have increased by almost 6%.

The article emphasizes that the economists find it difficult to comment on the words of the president of Azerbaijan about 6%, because they do not know how the income growth of the population is calculated. Thus economist Natick Dzhafarli says that in Azerbaijan there are myths about the display-index statistics. According to him, it is impossible to get accurate information about how to determine this figure. The expert notes that about 25-30% of the population - 970,000 people - are employed in the structures that are financed by the state budget.

"Despite the fact that the opening of new jobs is only on paper, it means that a new group of people achieved revenues. That is, when a man, who had no work and income until last day, now gets income and salary, albeit on paper, it affects also the statistics - again on paper," the economist explains.

Economist and expert Rovshan Agayev draws attention to the lack of transparency and the vagueness of the statistical data and speaks of the necessity of promulgation of poverty index across regions.

Economist N. Dzhafarli calls the statement made by the President of Azerbaijan a Soviet rhetoric, because the bundle weight gain of the middle class of the population is an indicator of the stability of money in the country. In countries with democracy, healthy competition and stability, creating a middle class gives rise to a dynamic development. According to the expert, the government of Azerbaijan is afraid of middle class in all countries forms the election results and the development of the country.

"Regardless of the power, people who earn money and achieve financial independence begin to put forward the socio-political demands and to fight for their implementation. The Azerbaijani government is afraid of it. The new wave of opposition in Russia is directly connected with the middle class. The Azerbaijani authorities understand this and do not want to allow the middle class to become a player in this arena," the publication reads.

According to the expert, Azerbaijan is in a serious stratification, because the senior officials, oligarchs and holdings that are close to them get richer at the expense of the government, tax evasion and monopolization. However, the expert pointed out that only one group gets richer, while the figures show that the poverty in Azerbaijan deteriorates.



Source Panorama.am
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