The establishment of a new settlement in Karabakh depends on the work carried out simultaneously by several institutions. The construction of a house and the construction of a road, the commissioning of an electricity line and the provision of water, the relocation of the population and the readiness of the school and healthcare services must complement one another. Each of these processes has its own implementer, budget, and timeline. In people's lives, however, they become a single outcome: the return to the homeland. The true quality of public administration becomes evident in such moments. Linking separate tasks to a common objective, identifying delays in a timely manner, preserving resources, and monitoring the outcome of a decision require substantial administrative capacity.
Rashad Najafli, Deputy Head of the Economic Analysis Department of the Center for Analysis of Economic Reforms and Communication (CAERC), told AZERTAC that the “Good Government Index” presented by the “Chandler Governance Group” in 2026 and the article devoted to Azerbaijan’s experience in the “Governance Matters” journal are noteworthy precisely from this perspective.
According to him, the high positions achieved in the field of the country’s financial governance and strategic vision, together with CAERC’s monitoring experience, bring Azerbaijan’s governance agenda into international discussion: “The financial governance of the Republic of Azerbaijan demonstrated a high result in the 2026 edition of the “Chandler Good Government Index” (CGGI 2026) published by the “Chandler Governance Group.” Azerbaijan ranked 3rd among 133 countries, after Singapore and Norway, in “Financial Stewardship,” one of the main assessment areas of the index. This list includes large economies, countries with extensive domestic markets, and major regional centers of power. Azerbaijan’s position ahead of them is a significant result in the comparison of public governance. Such comparisons also show that there is no automatic equality between economic scale and governance capacity.
The expansion of the index this year has further increased competition: 13 new countries have joined the assessment. In the Middle East, Central and Western Asia group, Qatar, which was included in the report for the first time together with Azerbaijan, ranked 30th, Oman 46th, Bahrain 50th, and Uzbekistan 69th. Among these new regional participants, Azerbaijan comes after Qatar, Oman, and Bahrain in terms of its overall result.
Countries such as Denmark and Sweden are frequently cited in international discussions as examples of the quality of public services and governance traditions. Germany and South Korea have significant economic and technological capabilities. Azerbaijan’s position ahead of these countries specifically in financial governance gives particular weight to the result. The “Financial Stewardship” criterion was assessed based on the indicators of “budget surplus,” “government spending efficiency,” and “government debt.” Azerbaijan achieved high results in these indicators, ranking 1st in “budget surplus,” 16th in “government spending efficiency,” and 26th in “government debt.”
The report published by the organization states that in countries demonstrating high results in the “Financial Stewardship” criterion, including Azerbaijan, effective public financial management, budget discipline, and fiscal transparency are important governance conditions for ensuring better outcomes for citizens and economic development.”
Rashad Najafli said that these positions have practical significance: “When major development and reconstruction tasks stand before the state, preserving financial capabilities becomes one of the key conditions ensuring the sustainability of decisions. Projects requiring many years need stable financing, while unexpected situations require room for action. An article by CAERC Executive Director, Professor Vusal Gasimli, published in the “Governance Matters” journal is devoted to results-oriented management of state programs and the “Smart Monitoring” system. This article presents Azerbaijan’s governance experience based on specific mechanisms and their application.
The “Governance Matters” journal presents various governance practices to senior officials and experts in more than 140 countries. The inclusion of Azerbaijan’s experience in this publication is important in terms of bringing the reforms implemented in the country and the Center’s monitoring approach into international professional discussions. The international index shows Azerbaijan’s position in comparison with other countries, while the article explains the mechanisms used to monitor the implementation of state programs and assess their results. Thus, Azerbaijan also acts in international discussions as a country sharing its governance solutions.
Established in 2016, CAERC contributes to the formation of a unified approach to monitoring state programs. In 2025, the Center monitored 24 state programs and prepared 32 reports. Behind these figures lies the need for the state to see its activities more clearly. After a program is adopted, it is important to collect information about its implementation. Verifying this information, comparing it with the objective set, and allowing it to influence the next decision give monitoring real governance value.
On the “Smart Monitoring” platform, information and supporting documents submitted by institutions are verified according to indicators and, when necessary, compared with on-site monitoring. The project management module helps identify deviations in terms of cost and time at an early stage.
There is a significant difference between recording a delay after a program has been completed and identifying it during implementation. In the first case, the outcome has already become history. In the second case, the decision-maker still has the opportunity to intervene, eliminate the cause, and continue the work. This is what makes the Center’s role important. Seeing different parts of a state program within the overall picture creates information that individual institutions’ reports cannot provide. The impact of a delay in one area on another, the interdependence of the work, and the additional need for resources become more apparent.
One of the most responsible areas of application of this approach is the Great Return. Geographic information systems, satellite maps, and online cameras make it possible to compare administrative information with the situation on the ground. In the reconstruction process involving numerous institutions, a unified information environment supports coordination and timely decision-making.”
According to him, the human dimension of the Great Return makes this work even more responsible: “Behind the construction and infrastructure indicators lie the future of families, living conditions, and the rebuilding of ties with the homeland. The accuracy of monitoring serves this major objective. Vusal Gasimli’s article emphasizes that technology alone does not create good governance. The operation of the platform is complemented by a clear mandate, independent analytical capabilities, links with planning and budgeting processes, as well as the training of specialists. This idea accurately expresses the essence of digitalization. Converting information into electronic form is an important step. Being responsible for its accuracy, analyzing its outcome, and using it in decision-making, however, requires institutional work.”
Rashad Najafli added that Azerbaijan’s positions in the index are the result of numerous indicators reflecting the state’s capabilities in various areas: “The Center’s experience, meanwhile, demonstrates a specific mechanism established for monitoring and assessing reforms within this broader system. Azerbaijan’s presentation in the 2026 “Chandler” materials gains its full meaning from this perspective. On the one hand, there is the country’s third place in the world in public financial management, first place in the budget surplus indicator, and a position in the top five in long-term vision and adaptiveness. On the other hand, there is the practical experience brought by CAERC to an international audience, the work of monitoring the implementation of decisions, verifying information, and assessing results. Both sides are important for the country’s development: the resources that make it possible to achieve major objectives and the governance that makes it possible to see progress toward those objectives.”