As a continuation of the reforms carried out in our country, high dynamics of economic growth has been formed in the Nakhchivan Autonomous Republic as a result of the modernization strategy implemented over the past 25 years and successful socio-economic policy. During this period, the goal of the socio-economic policy of the Chairman of the Supreme Assembly of the Nakhchivan Autonomous Republic was, first of all, to turn Nakhchivan into a leading economic region on the basis of further improving the social welfare of the population.
Successful implementation of all state programs and investment projects in the Nakhchivan Autonomous Republic since 1995, support of state policy in the field of science, education, health, social security, culture and sports, construction of modern infrastructure in the autonomous republic, construction of new roads, drinking water and sewerage systems were created. The successes achieved in our Autonomous Republic were a manifestation of purposeful reforms, politically and economically stable, sustainable and sustainable development. As a result of well-thought-out economic policy, macroeconomic stability has been achieved, the foundation for sustainable economic growth has been laid, as well as living standards have improved, prices have stabilized, and a mechanism to support private sector development has been established. Relevant programs on socio-economic development of the Autonomous Republic have made an exceptional contribution to the restoration and expansion of infrastructure, the creation of new production and processing enterprises, socio-cultural facilities and ensuring a decent lifestyle for the population. Restoring its majestic appearance, Nakhchivan, which has completely changed its appearance as a result of landscaping and construction work, has become one of the main addresses of rapid economic development. Due to the continued placement of investment capital, the main macroeconomic indicators in the autonomous republic have increased many times.
In 2019, compared to 1995, the gross domestic product increased by 65 times. In January-October 2020, the gross domestic product of the Autonomous Republic amounted to 2 billion 292 million 937 thousand manat, which is 0.9 percent more than the corresponding period of 2019.
In the context of macroeconomic stability, this economic growth has rapidly transformed into social welfare and high living standards, and in 2019 the average monthly wage increased 30.5 times compared to 1995. The 47.2-fold increase in GDP per capita, which is the main indicator of people’s living standards, is one of the important achievements of the economic policy pursued in the autonomous republic.
It should be noted that the industrial potential plays a very important role in the socio-economic development of the autonomous republic, the creation of new jobs, strengthening the export potential and minimizing dependence on imports. The reason for the unprecedented growth of industry in Nakhchivan, which has become an industrial center in a short time, is the natural resources achieved by the autonomous republic and the successful state policy pursued. As a result of preferential financial support provided to entrepreneurs, the number of industrial enterprises operating in the autonomous republic increased 11 times and reached 442. In our ancient land, in 2019, industry was represented in the first place in the sectorial structure of gross domestic product with a share of 27.6 percent. In January-October, the industry produced goods worth 900 million 258 thousand 500 manat, which is 1.3 percent more than the same period in 2019. In 2009, 15 million 762 thousand manat loans were issued to economic entities operating in this field, which is 510 times more than in 1995. As the investment process is an important process of ensuring economic growth, there has been a dynamic increase in the volume of investments in industry every year. Only in 2019, banks and credit organizations provided loans to businesses in the amount of 10,944,900 manat, which is 2.1 times more, which had a positive effect on the volume of industrial output. For the first time in 2019, the value of industrial output in the autonomous republic exceeded one billion manat, which is an increase of about 111.1 times over the past 25 years.
Increasing the number of electricity generating enterprises from 1 to 8 has paved the way for the expansion of industrialization policy by ensuring energy security. In 2019, 88.7% of electricity generated by solar power plants in the country was produced in the autonomous republic.
The dynamic growth of agricultural production has led to the development of the processing industry with an increase in the raw material base for the production of the food industry, which has the largest share in the structure of the industry. Meeting the demand of the population for basic foodstuffs within the established quality standards at the expense of local production, opening of warehouses allowing long-term storage of grain, storage and sale of agricultural products as a result of creation of state reserves ensures food security is always a priority in the autonomous republic.
As a result of reforms in the agricultural sector, financial and technical support provided to it, the volume of agricultural production in 2019 compared to 1995 increased by 13.1 times. In January-October 2020, agricultural products worth 431 million 390 thousand 100 manat were produced, which is 4.2 percent more than in the corresponding period of 2019. Ensuring high productivity in agriculture, more efficient organization of financial support to farmers and constant strengthening of food security have been important directions of state policy in the agricultural sector.
Thanks to the establishment of a strong link between economic development and welfare, financing and the business environment, today the range of products produced in the autonomous republic has increased from 10 to 384, of which 127 are food and 257 non-food products. At present, the protection of the domestic market has been achieved by meeting the demand for 350 types of products, 108 of which are food and 242 non-food, at the expense of local production.
The development of entrepreneurship, the creation of infrastructure, the facilitation of access to services have created conditions to stimulate exports, the foreign trade turnover, which has had a positive balance since 2009, increased by 26.1 times in 2019 compared to 1995. Dynamic development of production created favorable conditions for the expansion of foreign trade relations, dynamic development of the economy in the autonomous republic created favorable conditions for the expansion of foreign trade relations, foreign trade turnover in January-October 2020 amounted to 386 million 846 thousand 600 US dollars. The value of exports increased compared to the same period in 2019 and amounted to 334 million 49 thousand US dollars, a positive balance of 281 million 251 thousand 400 US dollars.
The investment process shapes the country’s future and strengthens its competitiveness. Investment in fixed assets in 2019 increased 343 times compared to 1995, of which 92% was spent on construction and installation work. As a result, countless production and social facilities have been built and put into operation, the gap between rural and urban areas has been eliminated, balanced development of regions has been achieved, and the quality of infrastructure in all areas has been brought to the highest level. By 2019, 562 administrative buildings, 284 education, 285 health facilities, 491 cultural facilities, 171 pumping stations, 416 subartesian wells, 52 sports facilities, 516 individual houses, 982 production and service facilities, 181 bridges, 4 settlements, 151 villages In our autonomous republic, where the center is being built, reconstructed or overhauled, 271 different facilities were built, reconstructed or overhauled in 2019 alone, and 159 different facilities were built, reconstructed or overhauled.
Our autonomous republic, living under the blockade, was able to rise to a leading position in the country with its achievements and socio-economic achievements. As a real result of economic reforms and social policy implemented in the Autonomous Republic, Nakhchivan won the investment rating determined by the Caspian Energy International Media Group in 2018 and 2019, gaining the highest overall score.
Thus, the greatest achievements of 1995-2020, written in golden letters in the history of our Nakhchivan, which has more than 95 years of autonomy, are that in this short period of time the autonomous republic has changed from light to energy security, from bread shortage to food security, from agrarian to industrial region. Known for its unique national development model, which includes sustainable and dynamic development, Nakhchivan is currently experiencing a qualitatively new stage of development and achieving new successes. Today’s achievements of Nakhchivan are the logical result of the policy of Heydar Aliyev, the successful and decisive continuation of this policy by President Ilham Aliyev and Chairman of the Supreme Assembly of the Nakhchivan Autonomous Republic Vasif Talibov. This invaluable course of development leads Nakhchivan to greater victories and great victories.
Author: Mehriban İMANOVA
Translator: Emin Gulmammadov