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ATIB surveys free competition in Azerbaijan

13 May 2009 16:54 (UTC +04:00)

Baku. Rashad Suleymanov - APA-Economics. Azerbaijan-Turkey Business Association (ATIB) has held discussion on the presentation of â€œthe Current Situation on Free Competition in Azerbaijan and its Impact on the Economyâ€.

ATIB chairman Ahmet Erentok said that the main purpose of the study is to identify the competitiveness for both the state and for companies.

The analysis covered the legal framework of competition and the institutional framework of government regulation of competition in the country.

According to him, as part of this program, study reports on the health and finance sectors in were publicized.

In his words, ATIB is preparing to unveil the results of analyses on â€œProspects for Development of Education and Mutual Business Relationshipâ€, â€œForeign Trade and Prospects for Relations with the WTOâ€, â€œDevelopment of Small and Medium-Sized Businesses in Azerbaijanâ€

The analysis co-author Kanan Aslanly noted that the analysis of competitiveness in the market was developed on a few models. The analysis was initiated with the insurance market.
As a conclusion of the analysis, the theoretical and practical scope of non-economic support concept was expanded.
After analysing the market, examples of unfair competition, their causes, companiesâ€™ behaviours were identified.

â€œIt is found out that there is secret insurance monopoly. There is monopoly in aircraft insurance, compulsory state insurance for servicemen, civil servants, court and law-enforcement officers,â€ he added.

According to him, the Herfindahl-Hirschman Index, a commonly accepted measure of market concentration, was found to be 801.3.

Summarizing the findings, proposals were sent to state agencies.