EXECUTIVE SUMMARY Chapter 1: Human Development and Modern Technologies The present situation related to human development in the Azerbaijan Republic is discussed in this chapter. The monitoring of the process of human development, which began in Azerbaijan in 1994, shows positive trends of stable growth of the Human Development Index (HDI) and its integral components. This growth began in 1996 after measures were undertaken in the economic and social spheres in 1993 and 1994. Throughout these years of growth, an increase in the HDI was influenced by the annual growth of Gross Domestic Product (GDP), which, on average, increased at the annual rate of approximately 9 percent. The increase in GDP reflects the rise in the Education Index and the Enrollment Index. The National Strategy for Information Communication Technologies (ICT) development has been implemented, which will facilitate the country's transition to an information society. The assessment of the Technological Achievement Index (TAI) has shown that these indicators, which are important for knowledge-based development and formation of "human gold" has increased by 11 percent since 2002. This chapter provides policy recommendations which are of crucial importance for the human development process and for achieving the Millennium Development Goals (MDGs). Among these suggestions is the development and fulfillment of a national strategic program for the development of modern technologies from the perspective of an ICT development strategy. Such programs could be developed by both national governmental and non-governmental institutions with the support of international organizations. This chapter also provides recommendations for the acceleration of human development and human gold formation in the country. Chapter 2: Information Technologies and Human Development: Diffusion and Application of ICT This chapter is dedicated to the assessment of the modern state and perspectives in the field of ICT for human development and the achievement of MDGs. Since Azerbaijan has gained its independence, processes related to Azerbaijan becoming an Information Society have accelerated. The main prerequisite for Azerbaijan's transition to an Information Society is its human capital. The country has a sufficient number of professionals who can participate in the process of development of information technologies and other highly developed technologies. This will result in the intellectuals being more readily supported by educated citizens, skilled in many fields of science and technology. The most important achievements that are required to create the infrastructure for an information society include the development of cable dial-up telephone lines, the expansion of satellite link channels, the launch of modern main links, such as fiber optic communication, the rapid development of cellular link communication and the Internet, computerization of working positions at local executive power bodies. Social investment programs of international oil companies have supported the distribution of ICT and other modern technologies throughout the country. Policy recommendations relate to the development and programming of a state strategy in the field of modern and high technologies implementation, similar to the ICT strategy. It also includes the extension of the National Strategy for Information Communication Technologies (NICTS) until 2012. The acceleration of institutional and structural reforms for further improvement of the business environment, attraction of investments to non-oil sectors, as well as to technological developments should also be made. Chapter 3: Modern Technologies and Formation of Human Gold This chapter discusses the situation in regard to ICT use in education, as well as the use of economic and technological opportunities provided by the country's energy sector for the formation of human capital and the provision of the process of steady development of the country. ICT are currently being utilized in the education system. One of the first applications was in the creation of admission exams to determine which students were best qualified to enroll in secondary schools and higher education. Currently, this work is being carried out by the State Students' Admission Commission (SSAC). Its activities ensure transparency and fairness of the entrance examinations thereby offering equal access to education by organizing exams and assessing students' knowledge. Oil extraction and refining are traditionally the leading factors in the development of Azerbaijan's economy that have greatly influenced the formation of human gold. Azerbaijan now has the opportunity to distribute its black gold at its own discretion and to use it with respect to its own national interests and in close cooperation with the international community. As a result of the implementation of the National Oil Strategy, numerous oil and gas Production Sharing Agreements (PSAs) with foreign investors have been signed. Foreign capital has been directed into the country for the development of oil projects that, in turn, contributes to current economic growth and the influence on human capacity building process. Policy recommendations involve the conceptualization of concrete projects, connected with the renewal of natural sources and the accumulation of intellectual potential from significant dependence upon the oil sector. In this regard, ICT could be considered as one of the resources requiring rapid transition from the import of informational technologies to their export. Taken into account the strategic aims of the MDGs and Poverty Reduction Programs, recommendations were made to develop high technological enterprises of machine building and hardware of ICT, food industry, pharmacology, small and medium enterprises. As well, it was suggested that competitions could be held that would lead to the creation of new products for the development of the domestic market of Azerbaijan and for export to the international market. The combination of the modern technologies and traditional knowledge can provide competitiveness for such products and sustainability of economic activity. Chapter 4: Modern Technologies and the Democracy Processes This chapter addresses the state and prospects of using ICT and the achievements of ICTs for the further progress of democracy and the expansion of public participation in decision-making, reform implementation and the promotion of the free flow of information. Despite the hardships of the transition period, Azerbaijan is continuing to move towards democratic and economic reforms. Expansion of ICT is promoting public awareness. This is becoming more and more evident in the number of Websites that are being operated by the mass media and in the growing use of the Internet. The expansion of ICT promotes public participation in decision making and the implementation of reforms. This is promoted by the creation of Websites by Azerbaijan's Ministries and other governmental institutions, and the availability of interactive contacts with both government bodies and the mass media. The promotion of public participation also contributes to the development of Non-Governmental Organizations (NGOs) and Community-Based Organizations (CBOs) and their being equipped with modern ICT. Using modern ICT in the process of education and the selection of students is an important condition for the formation of human capital. Foreign oil companies operating in Azerbaijan have also contributed to this process. The transparency of elections is also fostered by the utilization of new ICT. Policy recommendations involve the improvement of the National Statistics Indicators System by the State Statistics Committee to ensure the possibility of monitoring the country's readiness for using ICTs and in making international comparisons. It is further suggested that work to actualize information should be provided by Websites of public agencies (Ministries, Committees and other similar bodies). If the Ministry of Communications were to decrease tariffs for Internet access, the Internet would be available for a much broader number of users, especially NGOs. UP