First working section

Shamseddin Hajiyev – professor, rector of Azerbaijan State Economic University

Dear forum participants, Ladies and Gentlemen!

I would like to declare the meeting of Baku International Humanitarian Forum open. Today we are at the meeting of the V Section. We are going to have three round-tables on humanitarian aspects of the economic development modules. I would like to introduce to your the procedures and time-limit of round-tables before we pass on to the Forum. Each round-table will continue for an hour and a half. Moderators can lead the round-table discussions in any format they prefer. After the first round-table there will be a short coffee-break; after the second one there will be a break for lunch. We’re planning to start the third round-table at 16:00pm. After the Statement of the Baku International Humanitarian Forum will be discussed we should have commitments on the paper. The Statement is distributed and you all have it. And we invite all guests to Yacht Club for dinner party. Furthermore, with great pleasure I invite all our foreign guests for a short acquaintance with the Azerbaijan State Economic University. If you have any proposals on what has been stated here please, individually make your request.

Now I would like to introduce the topic and the participants of the first round-table to you. The topic of the round-table: “The World Image of the Economy”. Mau Vladimir Aleksandrovich, is the moderator of the first round-table, Rector of the Russian Presidential Academy of National Economy and Public Administration (Russian Federation).

The participants of the round-table are introduced:

I would ask the participants of the round-table to take their seats. There’s one more issue that I would like to bring to your kind notice: we have a guest among the participants of our section, Mrs. Dora Bakayanes, Former Minister of Foreign Affairs of Greece. She would like to make a speech in our first meeting beyond the program and share with us her ideas. I am sure she will have opportunity to make her speech. For the moment, I finish my mission.


Маu Vladimir Aleksandrovich

Dear friends,

First of all I would like to thank the organizers of this Forum and start my modest obligations as a moderator.

The theme “The World Image of the Economy” hasn’t got identical translation. There are endless discussions on what is the economics of science. It is said that economy is that field of activity that economists deal with. In the East the first economists were doctors. There’s the second generation of economists-they are philosophers and lawyers. So, what is economy? Robins told that economy unlike social sciences deals with define factors but not with values. I think today we can discuss this issue only for ourselves: is economy a technical science or more of a social one? Every period has its specific principles of economic development. Presently the world economic processes depend on many factors; even the economists themselves aren’t able to state them.


James Mirrlees:

Thank you very much. Thanks to the organizers inviting me to participate in the panel. There are two approved models what I should talk about it. I will do my best. Perhaps, I should I ask the moderator. How long do you want me to speak to?

Well, we have already run out of schedule. Maybe, ten to fifteen minutes.

Ah, even although I am the first member.


First, I know why candidates said economy is a moral science, because that’s what there was in Cambridge, told after mile show managed to connect the independent subject to independent philosophy.  Subject based on a philosophy. It would be incorrect to call it an empirical subject.  What we have to look is not very abstract things, but quiet concrete habits. So I decided to study the economic development models as the particular way to interpret that the countries have done their economic developments. It is perhaps to say that the countries haven’t been done their economic development in such similar way. I am going to think particularly of Chinese economic development model. And very deliberately and exclusively, China during economic reform – in 1978, decided that they were going to industrialize. To say they were going to follow a development model that would probably involve Peking barbarization. Great deal of investment and industrial pagans one time. Of course, this would mean, that there should be consequent improve spiritual of export, rapidly increasing development of foreign trade, for the best my knowledge most of the discussion was put them in these terms. They were going to introduce free markets, somewhat gradually, they were going to allow private price, but they were also going to take carefully considered researching developship infrastructure of the economy, generation of power. Pigging out the codes.  So, this is all terminology that makes people think that so it is not talking about what was going to happen with people, seems that to be surprising.  No. Look back of China, and say if you consider one very important aspect of human results of economic development, namely level of poverty in the  country that beaten on any reasonable measure, poverty has significantly been increased. The standard measure that is called the property head come. Not all of us are aware of that. Just remind you reflects  to  extra  part of  population who are on average in joint of extra work where 1 dollar  25 per day and  it touches incorporative patterns will get down precisely property terms  that’s reflect 500  US dollars in a year at  prices around . According to the figures of the bank websites, not talking of only Chinese so not to talk considerably involved. It is out of 85 % above mentioned below that poverty line in 1970-1980. In 2005 which is the last year of the actually have more or less reliable  figures for the   property head come 15 % below that level. Per step, that seems to be tremendous development. It is interesting to me that, Kazakhstan has had a similar experience. Perhaps not quiet sublimatic that’s from random higher property head come, stabile 2 dollars a day. And it seems to me that it was nearly with similar reasons.  And now, let me get into what I think that question might be enthusiasts me faced to the mentioned:


Did China do well?


I think it is planned pretty well. But there must be a question more might be done. Because, going for industrialization does not seem to be quiet the right way to developing papule really care about it is the standard of living of poorest society. If you look for industrialization that the idea that is economic model, that puts production in industrial part of economy, because of preferably very fast. It is reasonable easy for countries to globe the webs ling 10 % of the time.  If it’s succeeds probably by its own savings GDP China had rapidly achieved.  But the question is how to operate a small number of workers? For the first, you must be dry in those who have been living in the less form of the economy. Especially in agriculture and local services for the rural poor… and you can be driven in cities, go to cities… but, what happens there? Because it’s China. The same kind of picture. For all of the successful developing countries, who have considerable population from rapidly grow and that movement in China is about 4 % of the urban population through a year. So it is not perhaps the enormous move and the other countries rather bigger ones. Ones that doing that is bringing people in from rural areas where their standard living was average below.  To get job in urban areas, where the wage would be high for China. This is three times that average income that has been in rural areas. And then that is remaining the pearly steady figures of period of economic development. And the increase will save that is random expensive way of dealing with poverty.  And what you said is true; we will stretch your income.  And we are also doing. You are going have to spend chunk of land on housing issue, actually much more expensive in rural areas. In real terms of living standards, it will not be increased by as much. Cost the economy that level of wages, because standard living consists of not only   … you can spend and then you will pay tax from wage. This also facilities a necessity. Bank of freshwater.

I tried to do more carefully that whether one could say what really wrote about this improvement policy figures in China… Certainly, industrialization make contributions… say, quiet a lot of people who move from rural areas to urban areas….  The standard of living is much higher and very few urban areas and extreme any form of them approved. And to my surprise I found that one actually had credit a large part of reduction in publicity measure to the growth of agriculture. Now in China…hmmm you are going to notice many of you. This is very high in Azerbaijan. The gross rates of agriculture were admirable good. But it was much low than the grow rate of economy, roughly 5 % a year of the economic form period compare with 8 – 9 % in the standard. This is a very substantional contribution. Why? Because, first incomes of the people in urban areas were been increased. And rates were low because, they produced more in the bottoms. And they sold  them. And the key thing is the relationship between item, which is an abstract monetary concept and enginemen line having enough food…being able to find necessary current…it’s the human side of aspects. And that is where it comes from. That help is not. Because, China produces more food than reduce poverty. This is because; they generate more income for farmers. And of course, the spins of economy in rural areas are generally will normalized poorly and in provisional services and local manufacturing as well.

And I chose some figures from Azerbaijan. And, did Azerbaijan very impressive growth of agriculture. But also, it seems to be strong considerably low rage growth than the growth of economy in the whole. Because the norms are different in Azerbaijan and in China. Because, Azerbaijan has tremendous grow from oil. But I think this is absurd, but probably true that, that has made considerable contribution to the reduction of poverty. I think clearly all of these raise questions but more should be done.

Whether the economic development should be concentrated more in rural areas? In Chinese case, it will little hard say that Chinese government did very much to Chinese, to improve standard of people, their incomes. But they did substituted fertilizing. China has enormous grow of fertilizers than another chemicals used in industrial parts may develop well   Subsidies seemed to be very good. Probably, that was intended to the precisely level of effect.

I met here some questions about whether the economic development models are truly previous assessment that might still have been more successful proper waste to the human effects. That is to say particularly standards of living in the poor’s. And I surely relate that reminds to constant that complains. Everybody needs, but it seems to have attendance in increase and best reward the difference between took the industrial revenue and the rural, agricultural be true is exactly creating the acres of corporate in a many of the developing countries. That is not mind in American’s. For the developing countries that is exact what is going on.

Thank you!


Yevgeniy Grigoryevich Yasin – Head of National Research University Higher School of Economics

I would like to enrich the issue that all citizens of countries are concerned about which is the process of transition from a socialist economy to a market economy. Nations having the process of political experiments thought about taking the people towards better life; provide high level of life conditions and become more independent. And 20 years had already passed. Presently when we meet people who lived in Soviet Union most of them criticize “the shock therapy” that had to bring to quick success in market economy. There weren’t great successes. I exclude Azerbaijan and Turkmenistan that had possibilities to benefit from natural resources. This factor is less depended on those efforts that the Government initiated. We should think over those factors that are important and would bring to positive results. I would like to share my opinions about this issue with you. We should look at the world in another way: in the case of culture and social norms that settle social cooperation.

More concretely, the history of human civilization is extension and expansion of cultural relationships. Presently we live in the world with several dominating civilizations. Nowadays it is popular to speak about multi-culturology: all cultures are equal. I agree with it only from point of view of political correctness. But from point of view of the world image of the economy, at least it “creates abnormality” for us. Presently we should focus our attention on priorities of western culture in the period of globalization. We should pay attention to: 1.high level of impersonal relations; 2. Competition that creates big malice. On the other hand, in capitalism we observe extraordinary material progress. The whole mankind felt independence that had happened due to competition. Competition creates real demand for innovation. All nations are clever and creative. Healthy competition should be held on equal terms. Here I take into account not only economical competition, but political one too which is oriented to increase material welfare and intellectual development. It is extremely important. I am for economic competition if there’s also political competition that allows you to give healthy character to economical competition focused on productivity but not to look only for material benefit.


Robert Skedetelsky

Connection between prosperity and good government

It is debatable, some says it’s prosperity without good government, others say you can have good government without prosperity. I am using these terms round elusively, by prosperity I mean economic development and by good government I mean band of institutions, associate good democracy, freedom, political liberty, and  rule of law and so on. But the question then remains; which comes first? You should have good government in order to get prosperity or is it a government of some result for some pro prior stage of economic development?

And in fact sensible people understand there is two interact in rather come complicated ways but it may be useful just to stop the discussion by taking two different genius seeing two – consequences they did. But well – known book on economic development the “Rise of the West” Douglas Row and Tomas argued that in order to have economic development you need a shift in institutional parameters. And specifically individual and social rates have return after be implied and for this, for that to happen set elements remarked.  Economy has to be established like well – specified property rights protected by law against both sovereign and against custom. And said the book is rather it is an examination of the incentives facing the government two other institute pro – grove market institutions or to repress them and England is an example of a country that did the first and Spain is an example of a country failed to innovate institutions that provide the market development and a fate is large in economic history at last two, three hundred years.

And nearest two things in this to be; first good government does not have to be indigenous, it can be poled from outside and that is the argument from pluralism as an agent of development. And secondly for the later development of the market economy requires a degree of political pluralism, obviously to elevate the rulers very ready to consider the market institutions voluntarily there has to be some sort of pressure and that presuppose certain amount of pluralism. And that political pluralism does not have to amount to democracy. It does not have to amount to democracy or it does not require democracy?

The argument for democracy and at human rights comes after, in the later stage. And there is no connection between democracy and economic development too, except possibly did it heroes once in America. Well, what about the arguments that good government is a consequence not cause of economic development. This view rarely comes in the simple form a sensible version would be the safe government has to be at least effective enough to maintain law and order and the security trade for economic development to start. Then after it started you get  the rise of the middle class or the merchant class and further development of economy depends on this middle class forcedly and  extracting political concessions and from sovereign and from this view of matters a liberal political system is a consequence not  cause of economic grow. And I would say this is the Marxist based superstructure argument and in which the material conditions in production I am determining it is as the political development.

Now, I mean these two views have consequences of one things policy about how the development should be.  If the first is correct then reestablished multi liberal institutions broadly defined whether indigenous he generated or not is a necessary condition for the economic development for the world? If on the other hand we believe liberal institutions follow on from the economic development then keeping a dictatorial but pro grove government in part is paradoxidly the only way of the possible political progress at the next stage. Premature democracy on this argument may well be antigrowth sensibly its populist policy which aims to dispose the middle class.

So I need the history. The history is full of examples. I think it is a general law. And if you could do, the English place then I mean, seems to be example of the first view. You have very pro grove pro political institutions established very early of 17th century and then economic growth follows from that leads eventually towards the end of progress process towards political democracy whereas Spain has the different goals. They did not have pre – market political institutions which is established from others never forced to share power, he never had incentive to interfere with customary property rights, and therefore the country` stag native for two hundred years.

And today Botswana may be set the   constitution model version in England like The Ivory Coast, contemporary version Spain have the same contrast to Latin American Costa Rica and Guatemala. But then on the other side you have only examples of Germany, Japan and China. And Germany and Japan certainly have experience of very rapid grow in  per capita income. In the end of 19th century and early years of 20th century but not having liberal political institution in fact market and political system was somewhat repressed.

In both states they were very, very successful. And you cannot say whether that is that sort of authoritarian political system would not led in the end super development of full liberally economic and  political institutions because they were opposed on them Germany and Japan after their defeat in the two World Wars. You could say that it was not sustainable system because system in which you had a repressed politics and free markets was bound to produce tension so great that it would explode some kind of war.

That could be an argument, but again it is impossible to say but it is relevant typical of China. Because, China is another case, the example of a country with a very repressed political system. It is experiencing very rapid grow. And the question is; will the dictatorial system lead amatively wide prosperity of the middle class to free political system? The institutional change which should make the economic development self sustained. Well I think this is a question we will never find answer. I have raised very difficult materials, I have really been able to find my terms properly but I think today the dominant conventional wisdom is that we wholly need to get to or what you need to get economic development is to get good governance and what you need to get good governance system the helicopter in the sector of institutions. UN could be.

Anyway basically you helicopter in sector of institutions and then they get economic growth. I think that must be wrong. And locked policy based on it must be wrong. But what is the right policy, because it does not seem to me live in take irrupted taker ships in power and hoping they will produce economic growth to have a little class could be able to provide disciplined system, it does not simply backward thoroughly that is so as you know universal law only the second question but I don’t think I did interest in…

Thank you!


Dora Bakoyannis

Thank you very much!

Ladies and gentlemen, good morning! And probably, I am the only lady –member of around this table.

So, let me speak a little bit about the Greece experience. Probably, all of you have been following the news. I would much like not to be in the news but I know that the last year was full of Greece in all the news of the world. Lord Kerensky was polite enough to mention Spain and not the Greece. But I cannot speak about anything else today when practically my country poses so many problems around the world and mainly to our European partner.

So, let me thought and say what went wrong with the country with the geography of easily privileged position which for the last 10 years had GDP growth focus add average where people live well, I would say, extremely well and with the second biggest marine fleet in the world, the first in the European Union transporting on further the world woods, what went wrong with this.

So, let me just continue a little bit what Lord Skedelski spoke about good governance. I am a member of this political system, but I must only admit that Greek political system is faint, completely. And we say completely because when there, it is an agreement that we went democracy as you know in Greece. But together with the democracy we invented also democratism, populism. And that is exactly what went wrong in this. Because for years that political system falls, that we should produce more, give more for the people.

And on the other side was lonely in the money, because, we depended on the money. So, we lived much over our possibilities. And thus went wrong. And thus was international crisis of course. It is blue up. And when it is blue up, we are now in one of the most difficult situations for the people around the world.

Because the Greece woke up and realized that they have to live with 30 percent at least less when they used to live in the last 30 years. This is extremely difficult.

So, if there are two lessons to be learnt by the Greek experience is that: “Yes, you need good governance.” You need good governance and democracy has there a big progress. Because for the first time we realized that in democracy you have your limits. And the limits are that, if you don’t have responsible politicians than they go on, so but there are some other politicians, but trying to be popular, you gain votes, you don’t gain good figures, of course in your following.

And the second is, this is that what you just wanted think about. Probably most of people sitting around the table are the professors and academics. What is a democratic system? What is this doing? I am not speaking only about the country now, but also for example about bigger unions like European Union. When it faces with the markets which have a possibility to make decisions very quick, in one night without asking anybody or in one minute, yes. And on the other side you have the institutions which are, which have to meet, to meet again, to talk about it, the media and all the complex system we live in, which practically puts you always in  a disadvantage towards the markets. And for the first time the politics is losing ground. Because politics cannot ground, win over the markets and this is one of the main issues for us in the European Union. It will be for you also, for Azerbaijan, later on. But this is one of the principle questions, which I don’t know if anybody has the answer to it, I have not found an answer. Any find understanding the world situation, this is the main question for the United States and the European Union in the days to come. And for us, we may be two and a half of people said of the European GDP, but Greece might be the region to reconsider our institution on the European Union.

So, that we have another way to make decisions. So, the decision making process can be quicker. So that for at least we keep up the hope that politics can win over the markets.

Thank you very much!


Desai Padma

Thank you very much. I would like to thank the organizers for inviting me to a beautiful city Baku. It is my first visit here. I would like to start with personally note which has relevance for a discussion. I grow up in India, in a very provincial town, thinking and dreaming in the English language. And   when you think about language in India, there are 15 main languages, hundreds of dialects and then wide variety of cultures, customs. How do you describe this situation? May be, the cultural forum to which I have come here and then I go to America and teach at Columbian University and I walk to, only walk to my office and I see so many diverse faces: Chinese, Indian, Russian, African-American, certainly. Here, so many languages and I tell myself how may I describe this situation in America. When, there are so many diversity. And may be again cultural humanitarian Forum, where there is the mixture of I am living world that I have been living and working for 50 years, now.

That is my personal observation. But the country I have adopted is my own America. What can you do more have been adopted there which I do not want to discuss.

But I am going back in to my own historical development, talk about the root model in India which began in the 1950-th under Nehru, after India became Independence in 1947. And then make a few   comparisons with the Chinese developing model.

So, this is then thought of the basic conceptions underlined the root models in both of the countries, I would see the Chinese under tension of the period which started in the 1970-th.

Asked for the differences for both countries anything what you want to talk us specifically the first, the Chinese root model I think, as it took its shape in 1980-th, wholly in 1990-th, it became up the export oriented root model. The rapid route of exports were promoted the root of the economy, whereas Indian model from the very beginning have been not to be have calling in India, the Indian economists had been calling it as an import substituting model.

That is to say we produced Indian producer home which they used to import from the abroad. So that, I have distributed some numbers not to use the pointed out for our presentation here, but if you take the number of export and promotion of GDP in the year thousand and seven Chinese exports and promote of GDP becomes 35%, whereas Indian what is about 13%. So, that is therefore a great difference in the developing strategy of the root model. And further had been referred to here, in the discussion earlier the root models, the main difference of both is that Indian root model under Nehru has been more or less a liberal particular model. So that, if you go to India and if you read about India most of the time the elections are taken place in a province, in a city and percentage level up to the level in a period up past 60 years the public had been exposed to so many elections, it is incredible. There is always some elections taken place, any people do that. And my formal teacher at Harvard described India as the world’s largest functioning energy. It is energy when, it is poses but it functions.  So that model, of course it had been very different from the Chinese model as it had been referred to earlier  a humanitarian model.  But if you take then both from the differences here of the strategy: export – promotion was a system, substitution of root model, authoritarian was a liberal root model.

The consequences, the desires – what are the humanitarian or the welfare aspects of these two models. And again I have distributed some tables which I couldn’t display here but our point just a few numbers.

China outperforms India on all social indicators. If you take, for example, infant mortality – there about 48 children die out of one thousand life expectancy at birth in India. This is thousand and ten number, whereas the Chinese figure is 60. If you take female literacy grade – China is again well ahead of India. The Chinese number is 91 out of our agreement – educated and Indian number is 51 in 2009.

If you take the poverty rate the number of people who is below a certain poverty rate established each country the Chinese promotion is only 3% of the people that are in the poverty rate in 2004, whereas in India it depending 8% of population under poverty rate. Just, those the other day in United States that is 46 million Americans are currently under the defined poverty rate. And that is when the enormous number. But I think again about other thing.

But coming back to the China-India comparison the two models therefore take the humanitarian aspects, welfare – china had been where there head opinion is root model is social indicators. Yesterday in the panels there was …five minutes? Ok.

I want to tell about the role of technology in this development process. It is a lot way going on in India. It is very inspiring. For example, the cheapest car in the world had been put together by the car company cost to seven thousand dollars when the certain car watched that an Indian family goes on scooter. The father drives the scooter with the child in front of mothers sit the back with the child in her lap and this is the way to starve, even in the rain and eat.

So, I can construct a small car. And he did that. The Indian company has produced the cheapest, modest computer now which costs about 35 dollars. There are millions of Indians now using the mobile cell phones and there are enormous researches ways on, than by, for example, forwarding common wealth in southern part. The fisherman the half dressed goes on to a little boat to the ocean to catch fish and then comes back with his fish. Where shall I take my output of fish which part of the shore, this part or that part? He uses mobile phone and then went the prices higher. Where I may take my fish supply which I have caught. So, the grown technology is again making an important role in India for the first 3-4 things.

Finally, I want to think of convinces made by my eastern colleague Yasin. The export promoting model in Azerbaijan and Russia was the last table I had given. They both in Russia and Azerbaijan have brought more emphasized group an export and extra-natural resources they exports. And if you see the cable, the enormous volunteerism. In the export of oil, for example, the export blue at 63% for Azerbaijan in the year 2007, in the year 2008 it blues the country exports more than 24%. In a year export brought in. It is so-so negative for some years, similarly for Russia. So, then the whole question analyses what kind of instability and dependence of an export the root model from the natural resources. Root model creates for some policy makers. So my final point automated as certain kind of institutional framework where a certain direct making try to pay to relationship develops between dominant and private enterprise which is national recourse leaved very much. And how does this create certain competitive market based environment? In recourse based large enterprise close relationship in the country. Finally, what is the sign of marvelous, which they can treat like Azerbaijan, Russia and similar situations should imitate how will it develop, how will it broad it to western style, market based, competitive model, and then I would like to finally end with the quotation Todelsky sites, on the greatest reformers of the 20th century  Payne’s who said that…like Western civilization, because of the three things, that it has scientific inquiry,  it is a law based system and finally there are religious sensitibilities. So these three aspects, they create a certain kind of institutional environment and still problem for someone in develop emerging markets emerging market economies, with enormous talent Russia and Azerbaijan, enormous level of education, enormous recourses, all these facts allow to think for years in Russia and here also, how do these countries go into that kind of arrangement? Thank you very much.


Nazim Imanov – professor

Dear friends and colleagues, I warmly greet you. Today I decided to talk about the harms of accumulating too much, in other words, about the complication of superfluous. Before passing on to the topic, I would like to share with you scenery that I have observed in Azerbaijan. In Azerbaijan, it is a rule that students complain about teachers and teachers about students. The complaint is that students don’t study well, and teachers don’t teach well. People of both these categories complaint about doctors, saying that they don’t treat them well. These three group complaint about police. The sum of it all is that these four groups together complaint about the economists saying that they aren’t able to think out good ways of resources ways that can revive the state. But deep down all our complaints, there’s incorrectness, and it is that: what make up the doctors also makes the teachers; same is with teachers and journalists; journalists and students; and finally, students and pupils. The basic principle is established in one of the laws of nation’s development which is that the spheres identifying public life can’t be separated and has different directions. They look like functions dancing on one common development line. One of them science, education or economy in some cases can go ahead but can’t advance higher. In this case it can pull other spheres of public life after itself. In some cases when its weight becomes heavy, the one left behind can bar the development of others that are in front. But they are inseparable. Religion, science, education, health, and economical increase – these are inseparable components of public life; sometimes we consider it as an example, but in reality it is so. In various states and nations the diversity of these public spheres comes first. For example, when the Koran was sent to our Prophet, then the Arabs were the most ignorant nations: kill the baby if she is a girl, polyandry, polygamy; it is unimaginable the height of ignorance like this. But when Islamic religion came, Arabs started to establish their own state, nation and later the Golden Age of Islamic East began. Since XIX century Islamic movement has led to the greatest discoveries, the greatest sciences, the greatest art established in the East including our region and that time we lived the Renaissance Period. Religion was so progressive that it could easily carry after itself other spheres of public sphere and therefore we lived the great Renaissance time.

Development of America was different. Initially Constitution was adopted, ethics policy was created and then political freedom was synthesized into economy. The experience of different countries is different, but the main issue for us is: what happens when economy comes first? If in the development of society, economy overcome other spheres, doesn’t matter what brings to the sequence, oil, gas, etc., what happens in the development of the society? In other words, if there appears economical surplus in the economics of the society then what does happen in the society? Certainly it should be taken into consideration that surplus and fat are different things. A fat man may be hungry, and thin man can be satisfied and have a surplus. Economy is also so. Big and small economies can be hungry. Our economy is comparatively small; as we know our country is on the hundredth position in the world for common internal production per capita. Despite we have a small economy but it is a very fast growing economy.

In 2003-2010 the total domestic production per capita in Azerbaijan, taking into account the purchasing power of the manat, it increased from 2,326 dollar to 10,063 dollar. It is unbelievable surplus and development; and this economical development provides very great resources for the economy. I understand with this the priorities should also be clear. First, the people’s well-being becomes better; the money entering the country willingly or unwillingly is distributed among the population by any way, the state also thinks in this line; it means that material well-being of the people also increases. Secondly, it creates possibilities for internal and external investment. Presently Azerbaijan is investing big capital both in the country and foreign countries. For example, Georgia has a very small economy and total volume of Azerbaijan’s investment in this country, instead of annual accumulated volume is above 2 billion. These are official figures. It means that Azerbaijan capital contains the core of Georgian economy. Azerbaijan makes investment not only in Georgia, but also in other foreign countries. Widened possibilities creates opening for infrastructural building; political and economic reforms become easy as the government gets possibilities to fulfill the population’s needs. But along with economical increase and surplus also comes complications. One of these  complications is related to other areas of public life – development of science, culture, health, education, religion; all these are not able to follow the economic development, and don’t achieve rapid improvements. Obvious case of this is the scenery we all observe in Baku in our daily life.

An Azerbaijani driving a car of 200,000 manat through Baku streets can easily throw out from the car window the empty bottle of mineral water. Therefore with riches culture suffers; this means that culture can’t follow well-being, it remains behind. It is certainly a very simple example. But in general this is what we have achieved today. This is the common shortcoming of human being. But there are more concrete complications of this process. One of them is that the resources are not used rationally as possible in all cases. It happens not only in Azerbaijan but also in all other countries. The other complication is related to extreme consumption in the society. Azerbaijanis keep three, four, five, six, sometimes even ten cars per a family. And they don’t understand that this is consumption in Azerbaijan society; of course, the level of well-being is good, wealth is fine. But if the growth rate of economic development overcomes the growth rate of other spheres of public life then the negative cases related to high consumption are not unavoidable.

I made analyses and determined the relation between the growth of common and per capita domestic production and development of education, health of the population in 1992, 1998, 2003 and 2010. Unfortunately, I have no opportunity to demonstrate the results of these analyses here. Mr. Avaz has seen all these results, he is sitting nearby and the results achieved are strange. Anyway, during the development of civilization we have always been, and we are, in front due to the rate and level of economic growth in comparison with our neighbors and nations around. However, despite we are at the forefront of economical development, we are below the trend related to the development of other spheres of public life that is the level of religion, culture, science, education, that should logical have attained same level of the country’s wealth. Therefore, I think maybe we need to review the costs directed to these spheres and the achieved results.

For the analysis, we compared the indicators in nearly 30 countries. And it is strange, but we found that there is no direct relation, or rather, correlation between the cost of health sphere and the health of population or in some instance, the gap is too big. It is interesting, why? And I came to such a conclusion that health, education, religion, of a population and in general, other spheres of public life besides economy are extremely inert. To activate these spheres, make them mobile, advancing demands great resources and long time investment. For example, Azerbaijan increased its capital for the development of health for 5.1 times. Presently Azerbaijan spends more money per a capita than its neighbors, even more than many countries in the world. But if you increase your capital for the definite sphere it doesn’t give results in the second year. You should keep financing for fifteen years in order to achieve the planned outcomes. It means that inertia of these spheres is very high. Another outcome that I have obtained during these analyses is that it is the duty of the Government and the Government should do its best to fulfill its duty more effectively and in a good manner. For me I think that our problem is related to the society that doesn’t fulfill its duties. In fact, intellectuals, religious figures, public organizations, the whole society in general keeps itself aside from personal-cleaning. Communities – working communities, student communities, teacher communities and vocational communities are not functional. These communities don’t fight for their interest (in the meaning of to ask, to want something from the society).  I think if Azerbaijan wants to eliminate this difference, there’s only one way, frankly to say, to achieve it, and the society owes itself a duty and should possess it. Thank you.


Avaz Bayramov – professor

Dear colleagues and guests!

Usually when you start your speech you meet the problem of what sentence to begin with. It’s strange to say it but I resolved it at the last minutes. My colleague Prof. Nazim Imanov used such a phrase: what happens if economy goes in front of everything? Such an impression arose that if economy is wholly an independent creation from social nature. This is a spontaneous process that moves as it wants and in form that it wants. Actually, we know that the thing that we call an economic substance of a part of social life. Such interesting nuances appear from this. See, we economized everything related to social values, even democracy – we say economical democracy. But for justice we don’t say economical justice; we say social justice. It is clear that the main principles of the rules of joint co-existence of society are those with universal peculiarities. Since the neolith revolution till our times the world had only one high desire: to develop the human society on to the level where the human being is able to live as a human being. Unfortunately, the global scenery doesn’t demonstrate the fulfillment of this desire; it reflects how many problems, complications exist in this sphere. For example, I would like you to pay attention: In Europe at least 2 dollars is spent on a cow per day. But in Africa, in countries located below Sahara even 15 cent is not spent per a man. If we speak from the point of view of economical logics, then we should put aside all that is related to social and say that it is better to be a cow in Europe than a human being in Africa. Economist using the term of “social justice” usually they were corrected as this term is an ethic one; it is related to morality and economist is not able to adequately estimate it and explain its essence. We radically disagree with this point. Why? Five concepts (neither the “democratic justice” based on English utilitarianism nor liberal concept that accept absolute freedom, nor the “elite”, nor the “egalitarian” concepts relying on intellectual differences) related to definition of social justice in philosophy are able fully cover problems related to social justice. The biggest problem is the issue related to economy. Some minutes before respectful Vladimir Aleksandrovich asked if economy is an axiological or technical science. To put such a question in itself is problematic. There’s no need to prove scientifically that economy is an axiological science. It means that there’s no need for a guide for the mountain that is seen.

Economy can’t be erased with a primitive scheme; it is a science working with values. Economic factor is nothing but a value transferred from potential state into reality. Economic factor is different from that met in nature study; it is “charged” both theoretically and mentally. It means that in economic factor those that exist materially and morally are intentionally related and closely mutually tied. If we consider that the principle of causality isn’t the only one and it is free unlike the nature study, and at the beginning there stands the subjective factor then we should see the social justice as the backbone of a normal society building. It means that social justice can’t be viewed as criteria. Checking of existence of social justice is impossible due to verification principle by neo-positivists. It is not a creation that is paraphrased by the terms of “lie” and “truth”. Social justice is a measuring procedure for economical development. Its existence or on what level it exists is limited to the situation established in the society on the plane of social solidarity, social collaboration and national leadership. If such a powerful union is not established then, of course, it is impossible to hope even for short period existence but not for long term one; but if these values are in the society then we can talk about the existence of social justice. It is not indicated with quantity, it is not measured with concrete figures. It is impossible to define the social justice with income per capita, compensation of market demands or use limits of existed possibilities. Here we meet a situation of absolute paradoxes. To have good level of life circumstance doesn’t indicate the existence of social justice in the society. For example, let us imagine such a case: a capable young man wants to become an engineer, but due to extreme high education charges he can’t gain the university. He starts to work as a craftsman, graduates from a vocational school, and life circumstances is rather high in the society and as a craftsman he has good life circumstances. But is it correct to speak about the social justice for this young man? Of course not! If we take into account that a human being doesn’t exist only from material point of view, he/she doesn’t  live with materiality; morality and callings are insight of a human being, in his/her nature, it’s impossible to put apart. On the other side, economy by its structure is characterized as isomorphs to the structure of non-economic spheres (social, political and cultural); it means structural equality principle works here; in this case it is incorrect to define the structural changes in economy with criteria evaluated without reviewing the reality from various levels of anthological view point and measured only with empiric level. It will take science of economy to completely erroneous way. Therefore we suggest having anthologized economic theory. Real levels of economical reality (levels different from anthological view point and levels that never coincide) should be considered.  Without doubt we can say that idea is the start point for economical process.

Economy in fact is ideological construction. While analyzing the national economical system of any state it is possible to prove that the present structure of the system is isomorphs to the structure of that country’s national idea. It is not outside of it. If the state wishes to be independent, it lives independently; if the state wants to be dependent it lives as dependent country; if the state wants to be super state, ruling one, it becomes as a ruling state.

Thanks for your attention.


Vadim Novikov

I work at the Academy of Sciences. The Chairman reminded that economy is the field that economists deal with. Too many questions are asked, if economists are involved into the economics of politics? If scientific methodology demands to transit from positive to normal this practice is practically recommendation. Even considering the economists’ theses that deal with investigating factors, they often go to shops and in reality they are involved into the drafting and implementing the economics of politics. This activity is the main one for economists. Here it was sounded that the first economists were doctors.  Doctor is the same zoologist that specializes on human beings.

Reality of the life is the activity defining practical objectives. Here transition from neutral to positive science takes place.

By the way transition from positive to normative in scientific methodology is a practical recommendation.

What is competition? Situation with competition is better now in the countries where competition takes place in the correct manner: people pays more for the goods he gets more; the Government holds regulation of prices. Essence of other forms of competition increases. Furthermore there is title competition and competition of possession. There’re peculiar principles of the game. Advertisement is also used in competition. Definitely clear to take off the disparity between advertisement competitions from that what is in reality. In economics of politics it is needed to pay more attention to competition.


The text of verbatim report was provided by Azerbaijan State Economic University

Информация для участников

İştİrakçIlar üçün məlumat

Information for participants

Всю подробную информацию о предстоящем Бакинском международном гуманитарном Форуме, который состоится 2-3 октября 2014 года, вы можете найти в данном разделе:

You can find all detailed information about forthcoming Baku International Humanitarian Forum, which will be held on October 2-3, 2014, in the section below:

2-3 oktyabr 2014-cü ildə keçiriləcək Bakı Beynəlxalq Humanitar Forumu haqqında ətraflı məlumatı Siz bu bölmədə əldə edə bilərsiniz:

Регистрация на форуме



Для участия в работе Бакинского международного гуманитарного Форума необходимо обязательно пройти процедуру онлайн регистрации в указанном ниже разделе.

Внимание! Не забудьте указать в регистрационной форме номер персонального пригласительного письма.

Информация о получении виз
Участники, приглашённые на Форум, в случае необходимости оформления визы для посещения Азербайджана, могут получить её, обратившись в Посольства и Консульства Азербайджанской Республики.

Боллее подробную информацию о визовом режиме вы можете получить на сайте Министерства Иностранных Дел Азербайджанской Республики

For participation in the work of the Baku International Humanitarian Forum you are required to go through online registration procedure in the below section.

Note! Do not forget to indicate in the registration form the number of your personal invitation letter.

Visa information
Participants invited to the Baku International Humanitarian Forum, in case they need a visa to visit Azerbaijan, can apply for visa at the Embassies and Consulates of the Republic of Azerbaijan.

For more information visit the official web site of the Ministry of Foreign Affairsof the Republic of Azerbaijan.

Bakı Beynəlxalq Humanitar Forumunun işində iştrak etmək üçün qeydiyyat prosedurasından keçməlisniz.

Vizanın alınmasına dair məlumat
Bakı Beynəlxalq Humanitar Forumuna dəvət olunmuş iştirakçılar Azərbaycana səfər etmək üçün viza rəsmiləşdirməsindən ehtiyac duyurlarsa, Azərbaycan Respublikasının Səfirlikləri və Konsulluqlarına müraciət edib əldə edə bilərlər.

Əlavə məlumatı Azərbaycan Respublikasının Xarici İşlər Nazirliyinin rəsmi internet səhifəsindən əldə etmək olar.

Туры по регионам Азербайджана

Tours to the regions of Azerbaijan

Azərbaycan regİonlarI üzrə turlar

Для участников Бакинского международного гуманитарного Форума c 4 по 5 октября 2014 года будут организованы туры по следующим регионам Азербайджана:

Tours to the following regions of Azerbaijan will be organized for the participants of the Baku International Humanitarian Forum 4-5, october 2014:

2014-cü il oktyabrın 4-5 -də Bakı Beynəlxalq Humanitar Forumunun iştirakçıları üçün Azərbaycanının aşağıda qeyd olunan regionları üzrə səfərlər təşkil olunacaqdır:




Азербайджанская Республика, г. Баку
Организационный Комитет
Бакинского Международного Гуманитарного Форума

тел .: +(99412) 492 89 50; 492 95 58
факс:+(99412) 437 19 23
э-почта: [email protected]

Republic of Azerbaijan, Baku
Organizing Committee of the Baku International Humanitarian Forum

tel.: +(99412) 492 89 50; 492 95 58
fax: +(99412) 437 19 23
e-mail: [email protected]

Azərbaycan Respublikası, Bakı ş.
Bakı Beynəlxalq Humanitar Forumunun Təşkilat Komitəsi

tel. : +(99412) 492 89 50; 492 95 58
faks:+(99412) 437 19 23
e-ünvan: [email protected]

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