Azerbaijan has significant increases in revenue from oil production, meaning that it will have the resources to finance much of the public investment needed in order for the country to achieve the MDGs by 2015. Azerbaijan has also demonstrated the political will to spend its oil revenue prudently. A clear reflection of this is the establishment of the State Oil Fund, and the Presidential Decree on "The Long-Term Strategy on the Management of Oil and Gas Revenues" (#128, 27 September 2004). This strategy for the period 2005-2025 sets out the commitment to carry out long-term projections of oil and gas revenues; establishes the principles for the long-term use of oil and gas revenues, while using medium-term expenditure plans and PIP; and establishes the main objectives for the use of oil and gas revenues. The latter include development of the non-oil sector, regions, SMEs; large-scale development of infrastructure; implementation of poverty reduction measures, and development of human capital.

Azerbaijan is also relatively advantaged due to its human resources. The country has high levels of education and almost universal literacy. The government has also shown its readiness to invest in its human capital, by, inter alia, working with the UNDP on "Converting black gold into human gold", a programme aimed at contributing to the planning of how to use the oil revenues managed by SOFAR to develop human capital. This involves investment in the education sector, and promoting study of young
Azerbaijanis abroad, as well as bringing international expertise to strengthen the country's higher education system.

 The Azerbaijan government has gained the trust of the donor community, which has shown its readiness to act in a coordinated manner to improve the effectiveness of their support. This was demonstrated most clearly in the formulation stage of SPPRED.

Source:  Azerbaijan MDG Progress Report 2003/2004