Politics

- What would you say about the history and current level of economic relations between the United States and Azerbaijan?

- As you know, USAID activities first begun in Azerbaijan as humanitarian assistance in 1992. The humanitarian assistance was rendered to the internally displaced persons (IDP). USAID activities have expanded since 2002 into a robust development program centered on supporting the county’s transition to a market economy while creating the foundation for further development of democracy. During this period, or rather in 2005, the annual financial assistance to Azerbaijan peaked to $32 million. The US government’s support to Azerbaijan is not only limited to USAID activities. Also, the US embassy in Baku has trade, agriculture and military assistance projects and the embassy public affairs office has small grant programs. However, USAID assistance accounts for 25-30% of US assistance to Azerbaijan and USAID activities have included nearly a total of $284 million humanitarian and development assistance since 1992. In general, the United States sees Azerbaijan as a strategic partner. The bilateral relations continue to grow not only in war on terrorism and promotion of economic development. I think the two nations are now enjoying high-tempo growth of economic and political relations.

- Which projects does USAID implement in Azerbaijan?

- The United States and Azerbaijan inaugurated an Economic Partnership Commission in Baku in February and signed 5 memos of understanding. They include MOU between Azerbaijan Finance Ministry and USAID on Information Management System for Treasury ($2.2 million), MOU between USAID and Azerbaijan Economic Development Ministry on State Investment Policy Project ($5.2 million), MOU between US and Azerbaijani Governments on improvement of health service ($7.5 million), MOU on Emergency Medical Aid ($1.1 million) and MOU on Parliament Project ($1.2 million). Some of these projects have already started. USAID, some other donor organizations and the government of Azerbaijan work on these projects. Besides, through the Economic Partnership Commission, four more projects are planned in Azerbaijan. These are Financial Sector Reforms ($5 million), Financial Policy Reforms ($3.2 million), Competitiveness and Business Growth in Private Sector ($5 million) and (Commerce and Investment ($7.4 million). The amount of funds to be spent on these projects has not been set yet and the government of Azerbaijan is also to take part in financing the projects.

- USAID launched a website for Azerbaijan….

- USAID took the initiative to build a website for Azerbaijan. The main aim is to raise awareness, create good opportunities for government and non-government structures to get detailed information and show to the public how transparent USAID activities are in Azerbaijan.

- How active are the communities in regional projects?

- USAID’s Civil Society Project and Community Development Activity (CDA) Program play important part in development of local communities. There are good cooperation with the government and local communities in Civil Society Project and Community Development Activity (CDA) Program. The local authorities and municipalities also offer their funds in implementation of these projects. The projects yielded good results since 2005.

- What about USAID’s financial assistance in 2008 and projects?

- USAID activities include humanitarian and financial assistance in about 90 countries. The budget continues to decline. There are two reasons for a decline in financial assistance to Azerbaijan- first, the US financial assistance is decreasing for all countries and second, the funds are mainly reoriented to reconstruction in Iraq, Afghanistan and Pakistan. The amount of 2008 financial assistance for Azerbaijan has not been set yet. For 2007, USAID allocated $23 million to Azerbaijan- $10 million for Economic Development, $10 million for Democratic Governance and $3 million for Healthcare Projects.

- What would you say about exchange programs?
- Exchange programs are aimed at development of human resources. USAID funds training of governmental and non-governmental organizations. One of the exchange programs is the Project of Media Development and Freedom of Speech. This project is designed to render assistance to local media and contribute to freedom of expression.

- Does USAID plan to expand activities in Azerbaijan in the future?

- From financial perspective, USAID is impossible to have activities in all regions of Azerbaijan. In accordance with the bilateral cooperation between Azerbaijan and the United States, Azerbaijan’s financial resources are also necessary for expanding the coverage. Through Community Development Activity (CDA) Program, USAID intends to cover 14 regions in the country. These regions are prioritized for their development and some other criteria. /APA-Economics/