In Azerbaijan IDG implemented the Azerbaijan Competitiveness and Trade Project, a flagship USAID Economic Growth Project that consisted of the following three components:
Improve Domestic Business Environment: The IDG-led consortium cooperated with government to update business related legislation, regulation, and administrative processes governing: competition, taxation, banking, investment, regulatory agencies, technical and other barriers to business operation, growth and job creation; working with government and private sector to strengthen public-private dialogue; partnering with the banking sector to improve SME lending and increase access to finance; and supporting the use of cost-benefit analysis to rationalize public investment decisions. IDG helped develop e-commerce legislative and regulatory infrastructure in Azerbaijan to conform to international best practices, while also being consistent with the Azerbaijani legal and regulatory structure.
Improve Agricultural Value Chains: Smallholder farmers usually have fragmented land areas of from 1-3 hectares, and they face the constraints of small areas, limited profits, no written title to land, and limited capital to use to obtain additional financial resources to grow their businesses. Imports of food products in 2009 outweigh exports by a ratio of 2.5 to 1 according to IFAD.
This component of IDG’s ACT Project provided technical assistance to farmers, key businesses (processers, cold storage, transport, etc.) in the targeted value chains, formal and informal associative entities, and business support organizations to help rural residents improve their income possibilities through value chain upgrading. IDG aimed to:
IDG worked to build capacity, improve management, and introduce new production technologies for local institutions—business development organizations, associations, processors, and farms and to facilitate standards improvement and certifications programs. The Team supported improvements all along the value chain beginning with the farmer at the cultivation and harvest, up through the cold storage and transportation process, to the processor and then at the final market/consumer level.
Improve the Trade Environment: Progress by the Government of Azerbaijan (GOAJ) toward economic reform and open markets has been slow and inconsistent. The GOAJ continues to express interest in entering the World Trade Organization (WTO). Consequently, USAID maintains some active support for reform initiatives. Work in the international trade arena is needed to provide additional support to the GOAJ to improve its track record of implementing business-friendly policies. The below activities stimulated broad-based understanding of the trade distortions and needed legislative reforms to accede to WTO:
IDG supported the government in meeting international trade and investment standards and implementing relevant legislative changes; assisting the process for acceding to the WTO; supporting government and civil society in quantifying the impact of international trade reforms; and supporting government in initiatives to meet international best practices in combating anti-money laundering.
IDG’s ACT Project provided technical assistance to farmers, key businesses (processers, cold storage, transport, etc.) to help rural residents improve their income possibilities through value chain upgrading. The team supported improvements all along the value chain beginning with the farmer at the cultivation and harvest, up through the cold storage and transportation process, to the processor and then at the final market/consumer level.Areas of Expertise
Food Security and Agriculture
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