Azerbaijan National Human Development Report 2003
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INFORMATION TECHNOLOGIES AND HUMAN DEVELOPMENT: DIFFUSION AND APPLICATION OF ICT

Chapter 2


2.3. Perspectives of Information Technologies Development

2.3.1. Prerequisites

There is sufficient infrastructure for the ICT development in the country, along with technological modernization in other segments of economy and public life. The Azerbaijan government and UNDP launched the project “National ICT Strategy for Development and Its Introduction” which led to the “National Information Communication Technologies Strategy (2003-2012) for Development of the Republic of Azerbaijan”, which President Heydar Aliyev signed on February 17, 2003.

International experts along with national experts conducted a study of Azerbaijan's e-readiness for transition to an information society in the spring 2003. The results indicated various positive factors, which promote Azerbaijan's integration with the developing world's information society. At the same time, both objective and subjective obstacles complicate this process.

On the positive side, the most determining factors relate to the sustained economic development and rich natural resources, along with the high level of literacy and education. In addition, Azerbaijan has a favorable geographical location with international transport links and main communication lines connecting Europe and Asia. Also political and economic reforms in Azerbaijan have created a relatively favorable environment for foreign investors. Investors from the Organization for Economic Cooperation and Development (OECD) member states occupy positions in leading branches of Azerbaijan's economy and their readiness to take an active part in the country's technological modernization will promote the development of ICT infrastructure and modernization of the hardware.

The existence of private operators in the field of telecommunications and their expanding numbers, especially in the fields of Internet and cellular links, help to create conditions to reduce the prices for services. ICT has already been used widely in a series of national projects, involving the banking sector, ecological monitoring, tourism development, separate transport infrastructure segments and others. The modernization and development of the telephone network and dial-up channels and the formation of the cellular telephone network are taking place at a relatively rapid rate, expanding the opportunities for the majority of provinces to join Internet via a remote link.

The measures, established in the human development and poverty reduction program, should ensure further liberalization of the investment environment and favor new investors coming to Azerbaijan. This will provide expansion of the ICT services market along with commercial incentives.

Analysis of the country's full electronic readiness, including ICT infrastructure, computer hardware and software, information resources, information services and the legal base shows that initial conditions for the acceleration of the process of the establishment of the information community exists but objective hardships still remain. The government has defined these hardships as negatives, which should be overcome in line with the ICT Development Strategy.


Box 2.2. National Information Communication Technologies Strategy Emphasising the Existing Impediments to be Overcome

  • Appropriate state policy which would determine directions for ICT use-related work and its priorities and guarantee of coordination of steps were not determined in full.
  • The legal base regulating ICT usage has not yet been developed comprehensively.
  • As a result of the country's transitional period and the existence of approximately 1 million refugees and Internally Displaced Persons (IDPs) the government cannot assign enough funds for ICT applications.
  • “Brain Drain” and “Gene Drain” to developed countries in connection with the transitional period.
  • Population's poor awareness of ICT advantages and opportunities.
  • Low level of general computerization in Azerbaijan.
  • ICT-related subjects at all levels of the educational process do not meet modern requirements.
  • “Dial-up gap” between rural and urban locations in Azerbaijan.
  • Serious problems in the wide usage of the Azeri language in the ICT field, especially insufficient software support of the Azeri language due to its unique, one-of-a-kind alphabet.
  • Very slow process of the formation of national information resources.
  • The Republic still lags behind many international ICT integration processes.
  • Communication tariffs existing in the Republic create serious obstacles for ICT use.
  • Existence of the government's monopoly prevents innovations and fair competition in the telecommunications field.



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