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HAQQIN.AZ: AZERBAIJANI AUTHORITIES USE UP OIL FUND
http://www.panorama.am/en/economy/2013/02/18/az-gov/
The Government of Azerbaijan has turned into a lazy element and the
hope and confidence in stability of the State Oil Fund revenues have
transformed the government into club of oligarchs and consumers in
the same time, the Azerbaijani information portal Haqqin.az says.
"Since last year, the Oil Fund actively purchases properties in
overseas. In the near future more than a billion dollars will be spent
on the purchase of real estate. Considering the fact that the global
economic crisis continues unabated, new waves of crisis occur each
year, and experts say that the real improvement will not arrive up to
2020, these steps of the Fund appear to be very risky. As we know,
during the crisis the property prices go down in the first place,"
the article says.
According to the author, on the other hand, taking into consideration
the fact that "with what appetite the authorities of the country
use up the Fund through different grand, magnificent and little
profitable projects, then it would be better of them to buy property
which they we hope will pass to coming generation, and the loss of
the price will not be as huge and palpable, as the loss of the Fund
means within the country."
It is noted that in 2013, the cost of the Oil Fund will exceed
revenues for the first time, the expected revenues will be $ 15
billion, while expenses - 17.2 billion, that is, 2.2 billion more,
and this is a very troubling tendency.
"It seems that the authorities want to finish off Oil Fund reserves
quickly and under various pretexts. This fact seams surprising for the
election year. Do not they believe in their future?" the portal writes.
Another disadvantage, according to the author, is that the government,
relying on the Oil Fund will not be able to a flexible policy.
"Figuratively speaking, the government has become a lazy element,
and the hope and confidence in the stability of the translational
motion of the Fund's means has transformed the government into the
club of oligarchs and consumers at the same time.
The author compares State Oil Fund of the Republic of Azerbaijan
(SOFAZ) with an optimal analogous structure that exists in the
world which is Oil Fund of Norway, and stresses that's a long way
off Norway. The assets of this Fund that reach $ 300 billion, may
be increased to $ 500 billion in about three years and even exceed $
800 billion in 10 years," the writer says and notes that the Norwegian
government has set a target to use the Oil Fund as little as possible,
and leave the money for future generations and for providing a decent
senility of its citizens," the article says.
"In 2003 each inhabitant of Norway was getting 35,360 dollars and
today, this figure is close to threshold of 100 thousand. And what
we will leave to future generations? If it continues like this,
there will be only nuts..." he concluded.
http://www.panorama.am/en/economy/2013/02/18/az-gov/
The Government of Azerbaijan has turned into a lazy element and the
hope and confidence in stability of the State Oil Fund revenues have
transformed the government into club of oligarchs and consumers in
the same time, the Azerbaijani information portal Haqqin.az says.
"Since last year, the Oil Fund actively purchases properties in
overseas. In the near future more than a billion dollars will be spent
on the purchase of real estate. Considering the fact that the global
economic crisis continues unabated, new waves of crisis occur each
year, and experts say that the real improvement will not arrive up to
2020, these steps of the Fund appear to be very risky. As we know,
during the crisis the property prices go down in the first place,"
the article says.
According to the author, on the other hand, taking into consideration
the fact that "with what appetite the authorities of the country
use up the Fund through different grand, magnificent and little
profitable projects, then it would be better of them to buy property
which they we hope will pass to coming generation, and the loss of
the price will not be as huge and palpable, as the loss of the Fund
means within the country."
It is noted that in 2013, the cost of the Oil Fund will exceed
revenues for the first time, the expected revenues will be $ 15
billion, while expenses - 17.2 billion, that is, 2.2 billion more,
and this is a very troubling tendency.
"It seems that the authorities want to finish off Oil Fund reserves
quickly and under various pretexts. This fact seams surprising for the
election year. Do not they believe in their future?" the portal writes.
Another disadvantage, according to the author, is that the government,
relying on the Oil Fund will not be able to a flexible policy.
"Figuratively speaking, the government has become a lazy element,
and the hope and confidence in the stability of the translational
motion of the Fund's means has transformed the government into the
club of oligarchs and consumers at the same time.
The author compares State Oil Fund of the Republic of Azerbaijan
(SOFAZ) with an optimal analogous structure that exists in the
world which is Oil Fund of Norway, and stresses that's a long way
off Norway. The assets of this Fund that reach $ 300 billion, may
be increased to $ 500 billion in about three years and even exceed $
800 billion in 10 years," the writer says and notes that the Norwegian
government has set a target to use the Oil Fund as little as possible,
and leave the money for future generations and for providing a decent
senility of its citizens," the article says.
"In 2003 each inhabitant of Norway was getting 35,360 dollars and
today, this figure is close to threshold of 100 thousand. And what
we will leave to future generations? If it continues like this,
there will be only nuts..." he concluded.