Page 41 - Azerbaijan State University of Economics

Sana Imran: Effects of nation branding on national identity of Azerbaijan

linkages, regional integration, human rights conditions, legal / administrative
traditions and gender equality, Azerbaijan is far more Eurasian than its neighbors.
Economic Perspective of Brand Azerbaijan. On the economic front, the
country has made larger strides from signing the ‗Contract of the Century‘
[―Contract of the Century‖ http://en.president.az/azerbaijan/contract -] in 1994 to the
inauguration of ‗Southern Gas Corridor‘ [http://www.bp.com/en_az/ caspian/
operationsprojects/ Shahdeniz/SouthernCorridor.html] project in 2014. Being largely
an oil propelled economy; Azerbaijan remains vulnerable to oil glut or consequent
slump in oil prices. The negative impact of ‗Oil Curse or Dutch Disease‘ [Dutch
disease is the apparent causal relationship between the increase in the economic
development of a specific sector (for example natural resources) and a decline in
other sectors (like the manufacturing sector or agriculture)]. further accentuates the
problem by not letting other industries grow in tandem with the overwhelming
petrochemical industry thus resulting in incompatible growth of non-oil sector. Of
late, a growing realization at the end of Azeri Government has resulted in coherent
efforts for the diversification of economy particularly in non-oil sectors. Initiation of
broad based economic reforms, abolition of monopolized trade regime and enhanced
focus on socio economic development are some of the areas being focused upon. By
fostering a business friendly environment for local and foreign businessmen,
expanding an export base, attracting tourism and inviting foreign direct investment,
Azerbaijan is attempting to mitigate the negative impacts of low oil prices.
According to President Ilham Aliyev‘s speech at Davos during World Economic
Forum-2016, ―Azeri economy is maintaining healthy growth rate. Over the past 10
years, country‘s economy has grown by 300%. Poverty and unemployment have
reduced sharply, currently staying at 5% each. Growth of non-oil industry sector is
th
at 8.4%. Azerbaijan has been ranked as 40 in the world for competitiveness and
the first in the CIS [Commonwealth of Independent States] region during 2016 by
the World Economic Forum‖ [https://www.weforum. org/agenda/2016/01/
azerbaijan]. Government of Azerbaijan is seen committed to ensure the
macroeconomic stability and normal rate of inflation. An export-oriented economic
model equipped with modernization of oil and gas industry, diversification of non-
oil sectors, expanded use of renewable energy resources, development of agrarian
sector, strengthening of food security, boosting up of trade and services and
composite measures to enhance foreign direct investment can be identified as the
priority areas of current regime.
Nation Branding For Azerbaijan. It is commonly observed that the
perception of Azerbaijan weakens relatively as someone traverses geographically
away from it. Western Europe and USA have the least understanding of Azerbaijan

41