Azerbaijan has been gradually transitioning from a centrally planned economy to a more liberalized and market-oriented economy since gaining independence in 1991.

After gaining independence, Azerbaijan initiated market-oriented reforms to shift from a planned economy to a more market-driven economy. These reforms included privatization of state-owned enterprises, liberalization of trade and investment, and the establishment of a legal and regulatory framework for economic activities.

The country possesses substantial oil and natural gas reserves in the Caspian Sea region. The development of these resources, along with foreign investment and partnerships, has contributed to economic growth and increased government revenue.

Azerbaijan has recognized the need to diversify its economy beyond oil and gas to ensure sustainable growth. Efforts have been made to develop other sectors such as agriculture, tourism, and information technology. These diversification initiatives aim to reduce the economy's dependence on oil and create more diverse sources of income and employment.

The government has taken steps to improve the investment climate in Azerbaijan by introducing measures to attract foreign direct investment (FDI). This includes offering incentives to foreign investors, simplifying business registration procedures, and enhancing the legal framework for protecting investments.

Azerbaijan has pursued trade and economic cooperation with various international partners. The country is a member of organizations such as the World Trade Organization (WTO) and has signed various trade agreements to facilitate international trade.

The government has invested in infrastructure development, including transportation, energy, and telecommunications. This has aimed to improve connectivity within the country and enhance its attractiveness as a hub for regional trade and transit.

Analytic group of News.az

The article focuses on the theme of "promoting free enterprise and a liberal economy"

The article was published with the support of the Media Development Agency of the Republic of Azerbaijan (MEDIA)