BAKU, Azerbaijan, Feb.18. Azerbaijan has
strengthened fiscal discipline in resource governance, Trend reports via the
European Bank for Reconstruction and Development (EBRD).
“Resource governance demonstrates mixed outcomes. Some
countries, such as Azerbaijan, through fiscal rules governing its
State Oil Fund, have strengthened transparency and fiscal
discipline. The southern and eastern Mediterranean (SEMED), in
contrast, performs poorly on mining governance, with regression
recorded between 2016 and 2024,” reads the proposed Economic
Governance Strategy, 2026-2030.
Overall, the report reveals that resource-rich economies that
adopted clear fiscal and regulatory frameworks have achieved
greater stability and accountability, while those without reforms
continue to face high risks of mismanagement and rentseeking.
This inaugural Economic Governance Strategy sets the objective
of deepening the Bank’s impact by focusing on longterm, systemic
change. This will foster competitive business environments that
enable the private sector’s growth and innovation while mobilising
domestic and foreign capital. To this end, the Bank will work
towards increasing the participation of private firms in
state-dominated sectors, assist in deploying the Bank’s capital to
foster the formation and growth of companies, and improve the
transparency and accountability of state-owned enterprises (SOEs)
and financial institutions.
