Ministry of Economy of the Republic of Azerbaijan





During the Soviet Union period, Azerbaijan used to be one of the leading countries among soviet republics by its economic and scientific capacity. The Scientific Research Institute of Economy founded in 1964 at the State Planning Committee of the Azerbaijan SSR contributed much to this effort. A newly-established Institute was the first research institution working in applied fashion on scientific foundations of economic development in Azerbaijan in that period, and its main activities were focused on development of master schemes related to development of economy and placement of productive forces.

In 1969, accelerating development of economy as a result of Great Leader Heydar Aliyev’s succession to power generated a great boost in the activities of the Institute. Consequently, a new era started in planning and development of the economy laying foundations for growth in all sectors of industry and agriculture. In 1977, a new building of the Institute was inaugurated, and its technical and human capacity was enhanced.

As a result of sound planning based on scientific foundations implemented in this period, Azerbaijan was one of the two most advanced republics that were self-sufficient and contributing to the Soviet Union’s economy.

Even in the first years of state independence, despite hard conditions, the Institute continued to contribute scientifically to fundamental reforms initiated in relation with formation of independent national economy and transition to market economy.

Just like in many other areas, the National Leader H.Aliyev’s return to power as demanded by the people of Azerbaijan in 1993 led to positive changes also in organization and management of scientific research, including the activities of the Institute. As such, a Center for Economic Reforms was established in 1994 on the basis of the Institute to ensure flexibility, consistency and systematic approach in developing scientific foundations of economic reforms carried out in the country. Since that period, the Center focused its activities on identification of strategy and tactics of reforms implemented in transition to market economy.

His excellency President Ilham Aliyev successfully building upon the political course of the National Leader H. Aliyev continued to provide attention and support to the Institute of Scientific Research on Economic Reforms.

In 2006, the Institutes of Scientific Research, Scientific and Technical information, Technical Research as well as the Center for Economic Reforms were terminated, and instead, a new Institute for Scientific Research on Economic Reforms (ISRER) was established.

Since that date, Institute’s core mission has been the development of scientific foundations in ensuring continuity of dynamic socio-economic development already achieved. In recent years, the Institute has accomplished a number of important scientific milestones, among which a newly-developed General Equilibrium Model of the Republic of Azerbaijan (AzMod) is of particular importance.

In short, this model called AzMod plays an exclusive role in the processes of efficient management, scenario planning and analyses, impact assessment, forecasting and policy analyses of the Economy.

Concurrently, a Social Accounts Matrix of Azerbaijan was developed, which allows to present almost all economic indicators of the country in one table bringing together 47 different balance sheets in 7 blocks with 19 activity spheres and 5 economic agents.

Also, the Social Account Matrix (SAM) enables calculation of dozens of macroeconomic and sector-wide indicators as well as carrying out perfect analyses in 19 economic sectors. In addition, AzMod can act as an interagency platform in terms of impact analyses and scenario assessments, data exchange and coordination of policy decisions. Hence, by increasing the efficiency and timeliness of economic policy decision making as well as the quality of supervision over its implementation, it provides for interagency exchange of data and views, and expedites the processes of general use and continuous improvement of statistics.

As part of its activities, the Institute has evaluated the inter-regional competition and structure of entrepreneurship, and developed a methodology for competitiveness and assessment of export capacity of agriculture.

Many specific business projects have been proposed on the comprehensive development of agro-industrial complex having compiled cross-products balance on 200 agricultural goods and services.

A concept of development of organic agriculture has been drafted and a cooperation with Economic Cooperation Organization member states has been established.

“State Program on development of wine-growing in the Republic of Azerbaijan in 2012-2020” approved by the President of the country was developed by the Institute.

In addition, a study was carried out on and priorities identified with regard to the specialization economic and administrative regions of the Republic of Azerbaijan by production of agricultural products.

A methodology of multi-dimensional poverty assessment in the country was developed, based on which, the official state indicators in the mentioned area were scientifically confirmed.

New mechanisms to systemic conduct of household-utility reforms were elaborated, along with development of a legislative framework on state regulation of the utilities sector.

A “Center for Innovations and Training” was established in the Institute to promote investments and innovations in the manufacturing industry, enable centers for transfer of science and industrial parks, and develop clusters in manufacturing industry.

Today, the Institute for Scientific Research on Economic Reforms (ISRER) publishes “Socio-Economic Development Indicators of the Republic of Azerbaijan”, Socio-Economic Passports of the Economic Regions” and other periodic Scientific Series reflecting socio-economic development picture of the country while carrying out various publications on different sectors of the economy and development of entrepreneurship.

The Institute collaborates continuously with many scientific and education centers of our republic, as well as more than 20 scientific centers of foreign countries and dozens of international organizations and financial institutions.

As a result of efficient cooperation with the Economic Cooperation Organization (ECO), a Research Center of Economic Cooperation Organization (ECORC) was established in Baku in 2013. To reach this goal, the Institute acted as one of the main initiators of founding Permanent Working Group on Economic Research, Board of Editors of Economic Journal as well as the Forum of Think-Tanks, and served as a host of a number of events held in this area.

Numerous forums of local and international significance are continued to be organized regularly in the Institute today with seminars, “round tables”, symposiums, conferences and other events. The First Baku Forum-Conference is particularly noteworthy among the conferences organized by the Institute. The Second Baku Forum-Conference held in these series is organized as part of the 50-year anniversary of the Institute.

During its half-century performance, the Institute has accomplished undeniable success in developing highly qualified cadre. It is not a coincidence that nowadays, hundreds of scientists and experts trained by the Institute for Scientific Research on Economic Reforms (ISRER) continue to work in scientific and educational institutions, state executive and legislative power structures as well as the private sector both in Azerbaijan and outside of its frontiers.

It can be said with great pride that the Institute for Scientific Research on Economic Reforms (ISRER), the core mission of which is focused on developing goals and objectives envisaged in the development concept “Azerbaijan 2020: a future vision”, including the scientific foundations of socio-economic development, has been successfully implementing its honorable and responsible mission in the past 50 years.

Decision of the Azerbaijan Soviet SosialistRepublic (№635 dated October 2, 1964) (Available only in Azeri)

Decree of the President of the Republic ofAzerbaijan (№504 dated December 28, 2006) (Available only in Azeri)

Decree of thePresident of the Republic of Azerbaijan (№98 dated January 17, 1994) (Available only in Azeri)



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