“Creating strong institutions is important for Azerbaijan to become a high-income country, considering its ambition is much greater”, said World Bank Regional Director for the South Caucasus, Rolande Pryce, speaking at the presentation of the annual World Development Report, Azernews reports.
She emphasized several strategies for overcoming the middle-income trap, including improving the investment climate, enhancing education and workforce skills, fostering innovation, and integrating into globally competitive markets.
“Education and skills development are crucial for driving innovation and productivity. Also, it’s necessary to complement a good investment climate with measures deliberately designed to bring new ideas from abroad and diffuse them across the economy,” she added.
Pryce pointed to Azerbaijan’s impressive economic progress, stating: “In 1993, Azerbaijan had an income per capita of US $110. By 2023, some 30 years later, it has become a middle-income economy with a per capita income 60 times higher, 6,660 GNI per capita, via the Atlas method. Azerbaijan has successfully leveraged its natural resources to reach this point, and this is impressive.”
However, she noted that Azerbaijan’s ambitions extend far beyond its current status: “Becoming a high-income economy will require not only physical investments, but equally importantly, human capital formation, talent retention, and institutional strengthening to facilitate economic diversification.”
As part of this effort, the World Bank has conducted in-depth research on Eastern Europe and Central Asia, with the findings to be presented in the forthcoming report, Greater Heights: Growing to High Income in Europe and Central Asia.
Reflecting on the World Bank’s long-standing partnership with Azerbaijan, Pryce affirmed the organization’s commitment to supporting the country’s economic aspirations.
“As the country continues on its journey towards high-income status, we stand ready to support the government and the people of Azerbaijan. Together, we can overcome the challenges, and we can help you seize the opportunities that lie ahead.”
