UNDP warns that Azerbaijan's economic growth needs to be diversified
UNDP Resident Representative addresses the Fifth meeting of the Board of Trustees of Azerbaijan's Export Promotion Foundation

Baku, 17 January 2006 - Board of Trustees of the Azerbaijan Export Promotion and Investment Foundation held its fifth meeting in Europe Hotel this morning.

Further improvements of investment climate in the country, development of the non-oil sector, production of competitive goods, bringing modern technologies and expertise to the country, creation of employment were among main priorities of Azerbaijan's socio-economic development strategy, said Minister of Economic Development Heydar Babayev in his opening remarks to the meeting as he assumed chairmanship of the Foundation. Speaking of his country's speedy economic development, Mr. Babayev referred to the latest 2005 World Investment Report produced by the United Nations Conference on Trade and Development (UNCTAD) which ranked Azerbaijan as the first in attracting Foreign Direct Investment. AZPROMO is responsible for fostering dialogue between the private sector and the Government and it is important that entrepreneurs treat the Foundation as its friend and partner, stressed the Minister outlining the tasks facing the agency.

UNDP Resident Representative Marco Borsotti described AZPROMO as "institution that has as an element to sustain development of the economy of Azerbaijan". He also highly estimated the Board of Trustees process which represents an opportunity "where the public entities, international organizations and national entrepreneurs are meeting to discuss and debate issues of common interest". Mr. Borsotti recalled that the Foundation was initially established as an Investment Foundation while now it additionally is responsible for export promotion. "I think that this addition was necessary and is perfectly in line with the desire of Azerbaijan to continue the growth of its economy", Borsotti said. The UNDP Representative, however, warned that "growth per se is not a sufficient factor because it is important for the economy of Azerbaijan that this growth is converted into diversification of its activities. Obviously taking advantage of revenues and opportunity brought by the oil and gas reserves and their exports will allow development of other sectors of economy. And I think this is where the challenge is".

Acting President of AZPROMO Emil Majidov made a detailed presentation on the history of the Foundation, its past activities and the ones planned for 2006. He underlined the role of UNDP in building the capacity of AZPROMO established in 2003 and noted the continuing nature of this cooperation.

The meeting endorsed the report and plan of action proposed by AZPROMO's presidency.


For more information contact:
Ms. Gyulshan Rzayeva
Senior Development Adviser
Tel.: +99412 498 98 88 (ext.110)

Ms. Khadija Ismailova
Information officer
Azerbaijan Export Investment Promotion Foundation (AZPROMO)
Tel.: (99412)5980147
e-mail: kismayilova@azerinvest.com