Page 52 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.71, # 2, 2014, pp. 42-65

disparity in the prices of the industrial and agricultural goods, low profitability, monopoly import of

low price and low quality goods to the republic. There are problems in getting the credits for buying

fertilizes, high rate of credits, banks don’t want to take the land as collateral and others.

Recommendations on agrarian policy

I. The period of agrarian reformation in Azerbaijan on transition to the market ended. The up-

to-date stage of development of rural economy is characterized by dilemma of election: whetherto

capitalize the agro-industrial sector and continue farming, create big farms of capital type, whether

to change previous policy of agrarian policy, enhance the regulating role of the government,

intensive support to existing small farms. Under conditions when rural economy can efficiently

function under intensive assistance of the government.

Irrelevant of what model the Government choose to further develop rural economy and in

regard to living conditions of farmers, problems of agrarian sector, agriculture and sector of

farmers needs adoption period (2-4 years) prior to Azerbaijan's entrance to WTO.

The key goals of adoption period:

 achieving of competitiveness of farms;

 increase of efficiency of production in agriculture;

 provision of social development in the villages.

To achieve new goals it is necessary to enhance economic instruments, based on use of

material interests of economic subjects, particularly - credits, subsidies, budget investments, tax

benefits.

The group offers the following trends for enhancement of non-market methods of the

government support for agriculture:

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