According to the World Bank’s Doing Business 2018 report, Azerbaijan advanced by eight positions, rising from 65th to 57th place among 190 countries. Ayaz Chaparli, Head of the Economic Analysis and Analytical Information Department at the Center for Analysis of Economic Reforms and Communication (CAERC), stated that as a logical result of the consistent economic reforms carried out under the leadership of Ilham Aliyev, Azerbaijan not only moved up eight places but was also identified as one of the top three reforming countries in the Europe and Central Asia region. It is noteworthy that, for the first time since 2009, reforms concerning Azerbaijan were recorded across four indicators.

The following reforms had a significant impact on the ranking and deserve special mention:

• Resolving Insolvency – On 25 April 2017, amendments were introduced to the Law of the Republic of Azerbaijan “On Insolvency and Bankruptcy” to further simplify bankruptcy procedures for closed enterprises.

• Protecting Minority Investors – Amendments were made on 25 April 2017 to the Civil Code, the Code of Administrative Offenses, and the Criminal Code of the Republic of Azerbaijan, introducing a number of additional provisions aimed at strengthening the protection of minority investors’ rights.

• Enforcing Contracts – An electronic payment system was established to enable entrepreneurs to pay court fees electronically.

• Getting Credit – Within the framework of reforms aimed at improving access to financial resources, the Laws of the Republic of Azerbaijan “On Credit Bureaus” dated 28 October 2016 and “On Encumbrances of Movable Property” dated 2 May 2017 were adopted.

• Paying Taxes – The Law of the Republic of Azerbaijan dated 16 December 2016 on amendments to the Tax Code was approved.

In the Doing Business 2018 report, Azerbaijan’s position improved across six of the ten indicators: getting electricity (up 3 positions), registering property (up 1 position), protecting minority investors (up 22 positions to 10th place), paying taxes (up 5 positions to 35th place), enforcing contracts (up 6 positions to 38th place), and resolving insolvency (up 39 positions to 47th place). Thus, Azerbaijan achieved its most significant progress in the categories of resolving insolvency and protecting minority investors.

Azerbaijan’s advancement in the world’s most authoritative rankings is a direct reflection of the high assessment given by the international community to the comprehensive economic reform policy pursued under the leadership of President Ilham Aliyev. In particular, notable achievements were recorded following the Presidential Order dated 13 July 2016 on “Additional Measures to Improve the Business Environment in the Republic of Azerbaijan and Further Enhance the Country’s Position in International Rankings,” which led to improvements across several areas and the implementation of necessary reforms. Furthermore, the implementation of Presidential Decree No. 1138 dated 6 December 2016 on the approval of strategic roadmaps for the national economy and key economic sectors has resulted in positive trends in multiple fields.

The Doing Business 2018 report identifies access to finance as one of the most problematic factors for doing business. In this regard, it should be noted that the Presidential Decree dated 15 September 2017 on “A Number of Measures Related to State Support for Expanding Entrepreneurs’ Access to Financial Resources in the Republic of Azerbaijan” предусматривает the establishment of a Credit Guarantee Fund. The launch of the Credit Guarantee Fund and credit bureaus may lead to significant progress in the “getting credit” category of the Doing Business report in the following year.

It is also worth noting that in the Global Competitiveness Report 2017-2018 published by the World Economic Forum, Azerbaijan advanced by two positions to rank 35th. That report likewise emphasized that successful economic reforms aimed at improving the business environment under the leadership of President Ilham Aliyev played a decisive role in Azerbaijan’s progress. In effect, Azerbaijan’s confident advancement in the world’s two most influential economic reports represents a high level of international recognition for the success of the consistent and systematic reforms being implemented in the country. Improved rankings translate into increased investment inflows, enhanced economic competitiveness, expanded non-oil exports, and the creation of new jobs in Azerbaijan.