Socio-economic development of liberated areas of Azerbaijan — an analytical perspective
The Karabakh conflict resolution presents new opportunities for economic development in Azerbaijan.
Creating an attractive investment climate is essential for attracting domestic and foreign investment to the liberated territories.
Azerbaijan provided entrepreneurs working in the liberated territories with tax benefits According to the Decree of the President of the Republic of Azerbaijan dated December 10, 2021 "On some measures to accelerate economic development in the occupation-liberated territories".
Residents of the liberated territory are exempted from profit (income), property, land, and simplified tax for 10 years from January 1, 2023. In addition, this exemption will also apply to a district resident's non-operating income earned in connection with activities in that district. In addition, dividend incomes of shareholders of legal entities residing in the territory liberated from occupation are exempted from taxation for a period of 10 years from January 1, 2023.
Economic development efforts should focus on diversifying the economy of the liberated territories beyond any single sector. This can involve promoting industries such as agriculture, tourism, manufacturing, technology, and services to create a more resilient and sustainable economic base.
Agriculture is a key sector for economic development in the liberated territories, given their fertile land and favorable climate. Investing in agricultural infrastructure, modern farming techniques, and access to markets can boost agricultural productivity and income for local farmers.
“The liberated territories have a very favorable climate and natural conditions for agriculture, animal husbandry, and plant growing,” President Ilham Aliyev said in an interview with an Azerbaijani TV channel in Basgal village
Supporting small and medium-sized enterprises (SMEs) can stimulate economic growth and create employment opportunities in the liberated territories. This can involve providing access to finance, business development services, and market linkages for local entrepreneurs.
Strengthening cross-border trade and connectivity with neighboring countries can expand market access and create new economic opportunities for businesses in the liberated territories. This can involve improving transportation infrastructure, streamlining customs procedures, and fostering regional cooperation.
Economic development efforts should be pursued in a manner that is environmentally sustainable and preserves the natural resources of the liberated territories for future generations. This can involve implementing measures to mitigate environmental impacts, promote renewable energy sources, and conserve biodiversity.
One of the main directions in the course of economic development of the liberated territories is defined by the President of the Republic of Azerbaijan Ilham Aliyev as the transformation of liberated territories into a "green energy" zone. President of the Republic of Azerbaijan Ilham Aliyev put forward a strategic vision for establishing a Green Energy Zone in the liberated territories and stated that the liberated territories have sufficient renewable energy potential.
According to the Order dated 3 May 2021 by the President of the Republic of Azerbaijan on measures to establish a "green energy" zone in the liberated territories of the Republic of Azerbaijan, an international consulting company was involved. A relevant Concept document has been prepared in cooperation with the Japanese company TEPSCO.
Also, implementing a wind power plant with an estimated capacity of 100 MW in Lachin/Kalbajar will contribute to creating a “Green Energy Zone” in the liberated areas.
In addition, on June 3, 2021, the Ministry of Energy of the Republic of Azerbaijan and bp signed an Implementation Agreement on the evaluation and implementation of the project for the construction of a 240 MW solar power plant in the Zangilan/Jabrayil zone.
By addressing these key considerations and implementing targeted policies and initiatives, Azerbaijan promotes economic development and prosperity in the liberated territories, improving the livelihoods of the people living in these areas and contributing to long-term stability and peace in the region.
By Faiq Mahmudov
The article themed "promoting socio-economic development in Azerbaijan" was published with the support of the Media Development Agency of the Republic of Azerbaijan (MEDIA)
Similar news
