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

Chapter 2


2.6. Conclusion

Since gaining independence, the process prepare Azerbaijan to becoming an Information Society have accelerated. The main prerequisite for Azerbaijan's transition to an Information Society is its human capital, which in the face of high professionals possesses enough potential for taking part in the process of development of information technologies and other high technologies. Intellectuals will be more readily supported by educated citizens, skilled in many fields of science and technology.

The country's rich natural resources and geopolitical location as a crossroads of future international trade links promote the creation of information technologies. One of the peculiarities of the current situation is that the development of an information infrastructure began earlier than economic growth did. This helped to foster foreign investments in the country and as promoted the development of economic growth.

The most important achievements in building the bases of an information society include:

  • Development of cable dial-up telephone lines;
  • Expansion of satellite link channels;
  • Launch of modern main links, such as fiber optic communication;
  • Rapid development of cellular link communication and Internet with a total of 800,000 mobile phone clients, 80 percent of the country's territory being covered by cellular services, and 240,000 Internet users;
  • Computerization of working positions at executive power bodies, especially at tax and customs agencies, financial market agencies (banks and exchanges), computerization at educational and medical institutions in the country is relatively developed;
  • The social investment programs of international oil companies have supported the distribution of ICT and other modern technologies throughout the country;
    However, analysis of the usage of ICT has shown that despite achievements in creating a basis for an Information Society, there are problems that limit accelerated progress:
  • The existing information infrastructure may face stagnation if demand in its services is not stimulated. In this respect, the information market is anticipating the development of non-oil sectors of the economy. The rapidly developing oil sector provides adequate demand for the further development of the communications sector.
  • A strategy in the field of provision of compatibility of information and communication technologies, which could be applied to the developing sector of Azerbaijan's ICT, has not yet been insufficiently outlined.
  • The monopolistic stance of the relevant State Institutions and both its formal and informal interference with the business of private operators is negatively affecting the development of the information communication market and progress in relevant technologies. One of the negatives of the Institution's monopoly is its tariff policy in regard to intercity and international trunk call lines, tariffs for channels linking the Internet and access to satellite communications channels. Such a policy is one of the major reasons that many potential users do not have access to Internet.
  • The problem of low population income negatively affects progress of the telecommunications market. To a certain extent, this is the result of institutional and structural reforms not yet being fully implemented.
  • Elimination of obstacles in ICT development is the declared priority of Azerbaijan's State Policy for the next 10 years. This follows from the President's Decree concerning the formation and development of Information Society to facilitate sustainable human development. To accomplish these goals, the following urgent and necessary policy recommendations and steps should be made:
  • Development and programming of the State Strategy in the field of modern and high technologies implementation, similar to the ICT strategy;
  • The adopted NICTS extends over a relatively significant period of time, from 2003 to 2012. This requires regular initiatives directed at monitoring and regulation of the information and communication technologies being launched to ensure their compatibility. This can be ensured through the development of middleterm state program for ICT development;
  • Development of communication lines in rural areas should attract special attention of the government, taking into account the political goals connected with the State Poverty Reduction Program and development of entrepreneurship in the regions;
  • Acceleration of institutional and structural reforms for further improvement of the business environment, attraction of investments to the non-oil sectors, as well as to scholar-technological developments;
  • The quickest possible de-monopolization of the ICT sector through privatization of the Ministry of Communications' commercial structures.
  • Ongoing reforms in the health system should expand the use of ICT so that the quality of health care will be improved and so that there will be fewer disparities in treatment between the various regions.

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