Azerbaijan: Report highlights heavy dependence on volatile oil prices, depicts poor management of oil & gas revenues
"The Empty Bucket of the State Oil Fund of Azerbaijan: Profits and Profiteering’ Report Highlights the Heavy Dependence of the Azerbaijan’s Economy on Volatile Oil Prices", 18 March 2021
The new report The Empty Bucket of the State Oil Fund of Azerbaijan: Profits and Profiteering focuses on the economic, social, and political implications of Azerbaijan’s oil revenues for over two decades. The report pays specific attention to the operations of the State Oil Fund of Azerbaijan (SOFAZ), established in 1999 in order to manage Azerbaijan’s oil wealth.
The report provides an analysis of the Fund’s saving and investment practices, and Azerbaijan’s state budget and expenditures, and presents concrete policy and economic recommendations for the future.
...Right now, the Azerbaijani economy is facing the risk of being fiscally unsustainable, dependent on external shocks; the national currency is in danger of devaluation...The primary purpose of the report is to demonstrate the poor management of oil and gas revenues in Azerbaijan, the unfair distribution of oil and gas revenues, and the risks of assets being invested without transparency and accountability.