One of the successfully operating institutions established within the framework of structural reforms implemented under the leadership of President Ilham Aliyev is the Center for Analysis of Economic Reforms and Communication (CAERC). The institution has a flexible and compact structure, a strong human capital base, innovative projects, and, most importantly, core statutory functions such as analysis, monitoring, evaluation, and communication. But how does CAERC operate under the conditions of the coronavirus pandemic? The Executive Director of CAERC, Doctor of Economics Vusal Gasimli, answered “Report”s questions on this matter.

• Mr. Gasimli, how do you assess the Center’s activities in the new realities?
• The Azerbaijani state is demonstrating a model of crisis management in response to the pandemic, drought, low oil prices, and military provocations on the border by Armenia. CAERC organizes its activities in line with its statutory requirements under these new realities. First of all, our staff, guided by professionalism and statehood principles, continue teamwork with a strong sense of responsibility. The digital solutions implemented by CAERC enable remote work, especially under pandemic conditions. Our innovative projects promise even greater prospects in the post-pandemic period. At present, communication has been further strengthened both domestically and internationally. For this purpose, the Center’s analytical team provides communication policy support through relevant analytical materials. In this sense, monitoring and evaluation of state programs and strategies also supports both reform proposals and the preparation of communication materials. The analytical unit of CAERC is well prepared for the development of state strategies and programs. Thus, the core functions—analysis, monitoring, evaluation, and communication—create a synergistic effect. In this regard, CAERC’s role as a public-private dialogue platform contributes to the efficiency, targeting, and inclusiveness of economic policy and reforms.

Our entire team works in the same direction in line with the Center’s strategic development plan. Recently, new managerial appointments were made at CAERC, which on one hand represented a merit-based approach and on the other further increased team motivation. Most importantly, under the leadership of President Ilham Aliyev and in response to his trust, the CAERC team fully understands the importance and responsibility of its work and is committed to serving statehood and the people.

• How is CAERC carrying out monitoring and evaluation functions during the pandemic?
• Since CAERC’s operations were fully digitized beforehand, adaptation to the pandemic was relatively smooth. As you know, the Center monitors 12 strategic roadmaps, as well as state documents related to the expansion of digital payments, reduction of environmental impact from plastic packaging waste, food security, employment strategy, geological exploration of subsoil resources, and efficient use of mineral resources. Reports from around 50 state institutions were processed, followed by online discussions with working group representatives, and final reports were prepared. For monitoring and evaluation of strategic roadmaps, state programs, strategies, and action plans, the www.monitoring.az portal was launched. According to the World Bank report “Building Efficient, Accountable and Inclusive Institutions in Europe and Central Asia,” Azerbaijan has created a model of results-based governance through innovative monitoring and evaluation solutions. The digital M&E system developed in Azerbaijan is presented by the World Bank as an innovative practice for other countries. The portal enhances efficiency, transparency, accountability, and environmental sustainability. In cooperation with UNDP, the World Bank, the European Union, BP, and other partners, we work on applying international methodologies and building local capacities. The key transition is from activity-based to results-based monitoring and evaluation, aligned with results-based budgeting. The Presidential Decree of 17 March 2020 on improving efficiency in public administration has also introduced new requirements for performance evaluation of state bodies. The institutional memory, human resources, software, and methodological framework developed at CAERC will further strengthen this system.
• CAERC works closely with the Commission on Business Environment and International Rankings. What is the current situation in this area?
• Our monitoring and evaluation system enables the accumulation of a large economic policy “big data” repository. Data plays a crucial role in modern policy-making. The results of monitoring and evaluation are directly used in designing new reforms, creating a “virtuous cycle” between reforms and assessment.

We have also developed a digital platform for the reform process itself. The azranking.az portal of the Commission on Business Environment and International Rankings includes working group structures, reform activities, video presentations, and comparative analysis systems, all continuously updated.

CAERC supports the Secretariat of the Commission and the coordination of working group meetings, as well as the organization and preparation of agenda proposals. Efforts are made to ensure the Commission functions as an effective public-private dialogue platform. Entrepreneurs, international organizations, independent experts, NGOs, and consulting firms are actively involved. Today, the majority of working group members are from non-governmental institutions, ensuring inclusiveness of reforms.

• You also have a strong analytical system. What areas do you analyze?
• CAERC has established an “EconLAB” economic analysis laboratory. It includes five model versions for macro, meso, and micro-level analysis. The laboratory was first internationally presented at the Institute for Economic Policy in Sofia, Bulgaria. Using EconLAB, investment impacts on sectoral output have been analyzed, as well as short- and long-term effects of the pandemic on the economy, particularly the tourism sector.

Econometric analysis and forecasts have been developed based on the IMF Financial Programming model. Research on non-oil sector growth potential included analysis of labor, capital, productivity, and macroeconomic balances. Fiscal multipliers for Azerbaijan were also estimated, assessing income, social spending, consumption, and import effects. Regression analysis was conducted between capital investment spending and construction sector growth. External sector assessment (EBA-lite) was applied for current account and real exchange rate gap analysis.

Together with the Asian Development Bank and the University of Victoria (Australia), CAERC developed the ORANI model for Azerbaijan. Combined with monitoring data, this analytical capacity enables active participation in policy design.

• The importance of e-commerce is growing. The creation of Azexport was forward-looking.
• Yes, the establishment of the Azexport portal in 2016 was a strategic step by President Ilham Aliyev. Azexport showcases Azerbaijani products in international e-commerce platforms and generates billions of dollars in export orders. It also contributes to awareness and capacity building in e-commerce.

Azexport has implemented projects such as “Distance Amazon and E-Commerce” and training programs with ITC under the “Ready for Trade” initiative. It also cooperates with international partners on e-payment systems, Amazon account management, and company registration for foreign markets.

Azerbaijan has become the first country in the Asia-Pacific region to adopt a framework agreement on cross-border paperless trade. According to UNESCAP studies, Azerbaijan ranks among global leaders in digital and sustainable trade facilitation. I have also been invited to deliver a keynote speech at the 6th Intergovernmental Steering Group meeting in Bangkok.

• How is export support organized through the One Stop Shop Export Support Center?
• The One Stop Shop Export Support Center, established by Presidential Decree in 2017, provides fast and transparent export procedures. It enables permits and certificates for exports, reducing time and costs. In the last three years, nearly USD 400 million in exports have been facilitated through the Center, with a 99% satisfaction rate among users. It is also fully digital, and CAERC has introduced the world’s first unified online export application system. Banking services such as letters of credit, factoring, and export insurance are integrated with Kapital Bank. Overall, comprehensive support is provided to exporters.
• What about EnterpriseAzerbaijan.com?
• The portal implements the “Creative Spark” project with Newcastle University and the British Council. Training programs, startup support, and innovation-based education initiatives are conducted. It has also supported startups in accessing Kickstarter and international crowdfunding platforms, as well as cooperation with Microsoft Azerbaijan on digital skills training. Selected startup projects are being supported for international funding opportunities and employment programs.
• Azerbaijan is one of the pioneers in Digital Trade Hub implementation.
• The Digital Trade Hub, established by Presidential Decree in 2017, enables electronic and mobile residency services. Citizens from over 30 countries have obtained digital residency. The system allows remote business registration and access to services. Partnerships with banks and state agencies enable fully digital corporate account opening and cross-border services.
• What communication tools are used for economic reforms?
• CAERC manages around 40 digital platforms and multiple social media channels. It publishes regular press releases, monthly export reviews, reform bulletins, and video reports in Azerbaijani, Russian, and English. Its outputs are shared with international organizations such as the UN, World Bank, OECD, ITC, and others. Social media outreach reaches hundreds of thousands of followers, with live broadcasts and online conferences regularly organized.
• How does the “Reform Volunteers” initiative work?
• Since 2016, CAERC has implemented internship programs for youth development. In 2020, the “Reform Volunteers” group was established. Volunteers contributed to Azexport, EnterpriseAzerbaijan, and the One Stop Shop Export Center. More than 300 young people have completed the program, receiving certificates and career opportunities. Many continue their studies abroad or work in public and private institutions. The initiative also organizes online conferences with public officials to guide youth development and improve professional skills.