Page 54 - Azerbaijan State University of Economics

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

 to create farming reserve - give non-interest credits under security of reserves,

estimated through special security prices;

 to provide special subsidies for compensation of losses to exporters, i.e. margin

between home market and export price.

To support farmer-producer, it is necessary:

 to increase public investments in order to create infrastructure, social benefits,

develop researches, concerning development and application of up-to-date technologies and

know-how;

 enhance financial assistance to acquire industrial production facilities (subsidies,

beneficial lending, partial release of profits, used to application of technologies, from taxes);

 public support to insure rural areas, cattle and etc. through additional payments of

insurance compensation or special loans to insurance companies.

 Removal of price disparity.

Government should focus on the following aspects: economic development in Azerbaijan

is characterized by growing tendencies which make enhancement of public attention to

agriculture as objective, particularly:

1. Intensive development of oil factor brings to reduction of production in other economic

sectors (refining and processing). According to economic theory, active development of raw material

resources is conducted as damage to processing sectors, agro-industrial sector and their export.

2. enhancement of structure elements, pursuant to "Dutch decease", i.e. development of

oil sector calls for significant capitals and absorbs tremendous governmental investments.

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