Azerbaijan in CAREC
- Azerbaijan joined CAREC in 2003
- Since 2003, around $4.47 billion has been invested in transport and energy
- 13 ongoing CAREC projects
- 8 completed CAREC projects
CAREC in Azerbaijan
Azerbaijan joined the CAREC Program in 2002, when it embraced a common vision of newly independent neighbors cooperating to build prosperity in the wake of the Soviet Union’s collapse. Through CAREC, Azerbaijan has been working to promote growth and connectivity, and to make the region into a center of trade and commerce as global markets increasingly integrate.
The country’s north–south and east–west highways have great potential as major corridors for transit traffic between Asia and Europe. The rehabilitation of many of Azerbaijan’s roads could boost non-oil trade and increase traffic between the Caspian Sea and Black Sea.
Azerbaijan has focused on improving its international and domestic road networks with a view to stimulating economic growth, increasing the competiveness of its products, and accelerating regional development. CAREC supports these efforts.
As of 2015, around $4.47 billion has been invested in transport- and energy-related projects Azerbaijan through CAREC. These projects have helped improve transport, trade, and energy infrastructure and policies, and have spread the benefits of better connectivity.
Key investments have been made in an international transport corridor linking East Asia to Europe. This corridor is part of a vast network that stretches from the People’s Republic of China (PRC) to Azerbaijan and points farther west, and from the cold Kazakhstan interior to the ports of Pakistan.
Along with its advances in road and railway construction, Azerbaijan has led the way in promoting efficient border controls—by simplifying customs procedures to significantly reduce transit times. Through its support of and participation in the CAREC Program, Azerbaijan is helping unlock the region’s vast resources and human potential.
Highlights from the Asian Development Outlook 2016:
Plunging oil prices in 2015 cut export earnings, and sharp currency depreciation reduced household consumption and public investment, slowing growth to 1.1%. Continued weakness in oil prices is projected to cause GDP to contract by 1.0% in 2016 before recovering to 1.0% growth in 2017 as oil prices revive. Only by financing the expansion of diverse sectors can Azerbaijan move away from heavy dependence on hydrocarbons. Read full report
The United Nations Development Programme prepares reports on human development in Azerbaijan.