The Karabakh Revival Fund public legal entity established by President Ilham Aliyev's Decree is a single institution created for all our citizens wishing to participate in the recovery process on a voluntarily and equal basis. Chief Analyst of the Center for Analysis of Economic Reforms and Communication (CAERC) Gunay Guliyeva states that in international practice, post-conflict recovery funds cover a wide range of issues, including conflict analysis, demining in post-conflict areas, infrastructure rehabilitation, restoration of such services as healthcare and education, the return of IDP communities to their home, and economic recovery. Karabakh Revival Fund created upon the Decree has many functions and aims to tackle all the issues mentioned before. According to the Decree, the Karabakh Revival Fund public legal entity was set up to ensure modern and decent living conditions in the liberated territories, carry out construction, restoration and landscaping work in all areas, as well as to support continuous improvement of safe living, efficient activities, and welfare.

On the other hand, the newly created Fund will ensure the unity and participation of the people, gathered together like a fist during the 44-day Patriotic War, in the restoration of Karabakh.

Post-conflict rehabilitation is a long-term process requiring the mobilization of large funds and resources. Therefore, the consolidation of economic forces at this stage will let implement this process in a quick, transparent, and efficient way. Public-private partnerships in the post-conflict period may have a significant contribution to the revival of Karabakh. Thus, considering that the financial and economic resources of the state are not limitless, the attraction of private establishments to this process can accelerate the economic restoration, as well as keep projects up-to-date and increase their competitiveness.       

One of the main issues to be included in the statutes of the Fund is related to the sources of funding. According to the Decree, the core financial resources of the Karabakh Revival Fund are formed from donations of individuals and legal entities, grants, and other sources not prohibited by law.

2.2 billion manats of capital expenditures envisaged in the state budget for 2021 will be spent on ensuring a great return to our historical territories liberated from the occupation. It is known that the elimination of damage caused by Armenian vandals, who during 30 years of occupation leveled residential and public buildings with the ground, destroyed all infrastructure units and material and cultural monuments, looted our underground resources, and restoration of the life and economic development in those territories require huge funds. Given that the state budget resources are limited, the attraction of the extra-budgetary funds in this process will accelerate our return to Karabakh.

Chief Analyst Gunay Guliyeva states that complying with the international experience, the main source of reviving former conflict zones is the mobilization of internal driving forces in the post-conflict rehabilitation programs. According to the United Nations Development Program, local economic participants must play an important role in the recovery plan. They should not be passive waiting for funding from foreign agents. On the contrary, they can create added value by showing more determination, diligence and innovation. At this point, the Fund will be the best mediator. It will coordinate the funds that local entrepreneurs and investors want to invest in Karabakh.

International experience demonstrates that international organizations, the private sector, non-governmental organizations, civil society, and other similar organizations act as concerned parties in the post-conflict reconstruction. In this regard, we can also attract foreign donors to the economic recovery process. Many international financial institutions have programs related to the post-conflict period. One of the interesting parts is that each support package of those financial institutions covers specific areas. Since the restoration process in Karabakh has many directions, we can appreciate the financial support of various institutions. For example, while the International Monetary Fund is frequently implementing economic growth and poverty reduction programs in post-conflict countries, the World Bank is more focused on infrastructure projects, education, and health services rehabilitation. The European Bank for Reconstruction and Development usually provides financial support to transport, the banking sector, and small business. The Asian Development Bank can be a major source of funding for the return of IDPs to their homelands, as well as programs on health issues and combating poverty in post-conflict areas.

G.Guliyeva considers that the diaspora-investment model which is used in many countries can be applied in the reconstruction of Karabakh. Many members of the Azerbaijani diaspora have three main motives for this investment model - "financial income", "social status" and "emotional motive". As a continuation of the support provided by members of the Diaspora in the information war during the Patriotic War, Azerbaijanis living abroad want to take active participation in the reconstruction of Karabakh. Karabakh Revival Fund will manage this support in a centralized, coordinated, and transparent way.

Another source of financing the Fund can be state-guaranteed Karabakh bonds to be issued soon. Given the moral value for the people, the bonds are expected to be successful in circulation. Proceeds from the sale of Karabakh bonds can play an important role in the recovery process.        

The state started taking basic measures - demining of areas, ensuring security, construction of necessary infrastructure at the initial stage, construction of roads, restoration of communication lines, etc., to restore Karabakh before the war had ended. The reconstruction program of the liberated territories can be extended only at the expense of the state's economic resources. Therefore, state-state, state-private, state-citizen, and state-donor cooperation is necessary for the process of returning life to the liberated territories.

CAERC Chief Analyst reminds that during the World Economic Forum held in Davos, Switzerland, on January 21-24, 2020, the participants shared opinions on the transition to a new stage of the economy - to stakeholder capitalism. Today, the involvement of all stakeholders in post-conflict recovery through the Karabakh Revival Fund is a response to those global calls.

G.Guliyeva considers that each manat attracted to the restoration of Karabakh having a multiplier effect will create greater value and thus ensure the increase of economic activity and aggregate demand not only in targeted areas but also in the country as a whole resulting in inclusive development of the economy.