Second working section

Shahmar Movsumov (further Moderator)

Dear guests, dear forum’s participants, dear students. We are going to continue the next meeting of the today’s economic forum. There are many interesting participants. But before beginning of the speech the prince of Italy, Mr. Sforza Ruspoly has applied to us. He asked to apply to the participants. With your permission we would like to give him a word.


Sforza Ruspoly – prince of Italy

Sorry for my English. I’m not only grateful, but also I wanted to take part in this forum, also because I strongly feel all the attendance today, I guess to go around about this discussion. Now, I would like to express my wish for a better work in terms on a critic hope at the same time. First of all, I dream of a strong Europe, a unified body, a large continent on the Atlantic Ocean, on the West. While Europe made of one main constitution, one main economic policy, one stable and single currency related to such as gold and commodities. Finally, why Europe made such a political philosophy? I’d like to stress those times of crisis, the struggle against every kind of poverty and injustice. At this point I would like to stress like a times of critic it’s almost the only primitive suffer the most. Billions of people have forgotten by a system the use of paper money and trying to explore the planet and trample on the universal declaration of old times that was adopted by General Assembly on the 10-th of December,1948. Universal declaration was adopted in order to protect the freedom of all U&B. (see article number 1) and I also like to mention article number 25.

By 2020 while billion of people will suffer from hunger and food, half billion of people cannot afford their safety, Africa will suffer of emergency. Every year more than 20 million of people die from stagnation. This is planetary crime. To report energy today, it is our first priority, there no all the dates as important at this now. We are short feel responsible for this. Every continent has to reach the food self-sufficiency. So to implement they can dumpy of rich countries. There is of all point universal value of religion which represent the implement other countries.



Thank you. Now, the word is given to our guest from Russia.


Valery Tsvetkov – professor correspondent–member of the Russian Academy of Sciences, deputy director of the Market Problems Institute of the Russian Academy of Sciences

Thank you. First I would like to express my gratitude to the Forum organizers for their hospitality, warm attitude towards participants and wish success in our work and such meetings taking place more often to all of us. I would like to continue and develop the ideas of the previous orator. He talked about global problems which mankind faces today. Yes, today we are closely connected with economy whether we like it or not. Nowadays we witness capital transfer, transfer of   labor recourses and manufactured goods of all countries and continents. But at the same time we witness lack of regulatory rules of these goods transfer. What have we got as a result? Crisis in 2007. Migrant capital cut from industry and used mostly for speculative purposes. Bubbles blow at the mortgage credit market then at the oil market and now at the food market.

Bubbles bursts, there is crisis and depression all over the world. If before the crisis of 2007 8000 million people in the world systematically underfed, after crisis this number reached already one billion.

Next manifestation of globalization is connected with increasing gap between wealthy and poor countries. Today not modern but backward technology goes to poor countries. The goal is to use both industrial and human raw material resources with preferences given to highly – developed countries. As a result poverty is not decreasing but on the contrary increasing. What is it leading to? Too mass flows of population shift from less wealthy countries to more wealthy ones. On the one hand what’s wrong with that? Undoubtedly it is progressive mixing of races, nationalities and cultures. But on the other hand interethnic problems arise. And if it continues so the world will encounter with global tension which will exactly develop on a national basis.

But besides global problems which global economy dictates there are those problems which existed earlier but as it seems to me are exacerbating now. And globalization is not the matter at all. For example rice in population on the planet which distributes on the earth more and more no uniformly. Thus of the last century population increased 4-fold. At the beginning of the 20th century it was 1, 5 billion people and at the beginning of this century it is already 6 billion people.

The second problem is violation of statistical development between population size and production volume of food.

The third problem is connected not only with exhausting natural resources (raw materials including) but also with their consuming extremely no uniformly. First of all I mean such resources as land and energy caries over last 50 years agricultural areas have reduced by 20 percent. They have reduced not for natural causes. Yes, there are a number of causes: building of cities, creation of megalopolis groups. Mankind might want to use these lands more rationally but land application of various chemicals for pest control has led to land damage. As a result arable lands (lands for agricultural purposes) are reducing. Now with regard to your water. At the moment consumed water supply is only 3% of all water resources. At the beginning of the century there was15000 cubic metersof portable water per person. In 2006 there was8000 cubic metersper person. As predicted by 2040 there will be left only4000 cubic meters. Along with that 15000 people die daily from consuming inferior water.

Now with regard to energy resources which are exhausting day by day. According to some projections oil extraction in Russia can be extended for about 20 years more. And what about Azerbaijan? What about other countries depending on oil? Some countries are dependent because they are producers; others on the contrary are simply consumers. The problem is lack of substitutes for energy nowadays. We have set hopes on industry but it hasn’t substituted coal oil or gas. It has become only a supplement. Certainly there are other ways of extraction of energy resources but all of them demand high material costs.

Other problem deals with raw materials. Raw materials are no uniformly distributed on the earth. It leads to big problems arising between consumers and produces on the issues of price setting, ownership and control over these raw materials. Problems of delivery and processing of this resource can also be added here. Taking into account the fact that resources are exhausting with time as I’ve already mentioned this problems will be increasing.



Thank you. Now, the word is given to our guest vice-president of the Jordan University, Bashir Al- Zubi.


Bashir Al-Zubi – Jordan University, Vice-rector on humanitarian issues

Thank you very much! First of all I would like to state thanks to United Europe for the well organized work and also I am very glad to participate here, in Baku. I’m going to speak about some points of  the relationship between humanitarian aspects and economic development. As you know, there is difference between non-developed and developed counties and unfortunately some people mix these 2 terms. Whereas economic development is the policy of comprehension invisible with the aims of economical and social being of input. Economic growth is the phenomenon of market productivity and ISGP. This economic development refers to sustain efforts and community to promote the standard of living and economic activity in specific area. Such effort can involve multiply areas including development of human charity, create infrastructural, range of competitiveness, environmental sustainability, social culture, safety, freedom etc. The study of economic development was burnt out of extension and that forecast interactively on national protect of the agreement of goods and services. And also it was concerned in  the extension of peoples’ instructiveness as resource provide us to live in industrialized countries, also there is a posing argument, although that economic development because some of them peace and income gets spend on economic development, such as education and health. In fact economic growth and human development has a main relationship. More often, the first chain consists of economic growth with human development when gross national product, specifically GNP, we need to increase an economic development by the government and other organizations in Europe. With the rise in economic growth in families, countries we like to increase expenditures when high incomes which develops needs to growth to demands. Why do we have economic growth or why we don’t have investment, because the lack of low income, low activity. Economic growth also generates additional resources that can be used in social services, such as self drinking water etc. By generating additional resources of social services unequal income distribution with range will not exist, such social services are distributed equally across each community individually. The relationship between human development and economic development can be explained in three ways:

1. Encreased salary income links to improvement of enhancement not as expansion economic growth.

2. It is believed that social outcome can only be improved by reducing income points as appropriate expansion of poverty reduction.

3. Social outcomes can also be improved with essential services such as education, health care of drinking water, not as expansion of social services. The use of community environment tools is also one of the main aspects of economic growth.

Job creations, economic output, an increase in taxable basis are the most common measurement tools. When considering measurement too much emphasize has been based on economical process of creating jobs. However, the reality is that economic development doesn’t typically create jobs, but facilitate the process for existing business and start ups the use of it. Participation in the development process, this requires relating framework of cyber – society institutions. It is necessary to support explore and ability to promote of human rights, democracy and tolerance, increase of cultural institutions. Encouraging the between civil society institution with the government is also of minor importance. Instructions and business that could be followed with interacting legislations the most important being legislative amendments shown in achieve, increase, protection and great up respect for human rights as stipulating international job, health communions. In addition, such principles shall reinforce social solidarity may care social security and insure general policy protect the family. In order to reduce poverty some affairs must be implemented:

  1. Developing a comprehensive national social policy with forecast social policy with forecast social development and productivity enhancement.
  2. Providing assistance to reinforce and to reinforce and to integrate social services in different areas.
  3. Improving flexibility and productivity to strengthen legal laws.
  4. Increasing economically active segments.

One minute about what with our agenda in Jordan. We have developed national agenda for ten years from 2006-2015.It stands as an unique, inclusive approach than aims primarily to including the life of Jordan. Very sonly it became guaranteed base freedom as human rights and democratized and cultural political feudalism. It shares included the national agenda of asset mechanism to achieve the development of human and economical resources. Some of the most initiatives in agenda are restrictive recessional reinforce development plan and environmentally requirement. In addition , that supporting the set of development programs to financing insure, improving human resources and their capability. Thanks for attention!



Thank you. The theme of this round table is modern intellectual, potential and economic development. Mr well described in his speech which challenges wait us? A very difficult and hard development.  At the same time, Mr. Bashir Al- Zubi spoked about the best economic development .

What do we mean when we say intellectual potential, I would like to begin from this. Until the twentieth century, the economists have shown the development as economic development, physical capital of production function of the working labor. In the twentieth century a new factor was created. Recently they have begun to talk about technological factor and human capital, as the human capital is the factor that stimulates the development of economy and greatly influences it. But today not everybody clearly knows about what human capital is. I would like Elkin Nurmammadov the cooperator of Azerbaijan Diplomatic Academy give some information about human capital. Here you are Mr. Elkin.


Erkin Nurmamadov

Thank you. I welcome reputable forum participants. This world wide important ceremony has a great importance in our country. The aim of my speech is first of all to speak about the role of human capital in economic theory, particularly in macroeconomics and microeconomics. Besides it I’d like set some questions. As you know, the core element of the research is to focus on the right question. Finding answers might be the second task. Human capital is people’s or employees’ attainment of certain skills, knowledge and abilities through teaching, education and work. Why labour capital? Because Human capital is more related with labour capital. Because labor capital is obtained through investment by people. The objective of investment to labor capital is to increase the efficiency of labour force. It means to achieve the use of more goods and services on the basis of the same labor force. The function of human capital is to increase the productivity of investment directed to human capital. I want to talk around the two aspects of research; microeconomics and macroeconomics. I mean why individuals invest in education? I want to answer to this question in advance. In order to increase the productivity macroeconomic theory started to reveal this question in 70th years. I mean the theory began to examine the relationship between people’s investment in education and its profitability. Obviously there is a fierce, stiff colligation. I mean there is a stiff, colligation between investment in education and its profit invested by people. Colligation doesn’t mean post hoc fallacy. The subject becomes quite hen and chicken. I wonder the reason why people’s profitability rises? Due to the reason that they have invested in education or having sufficiently high profit? It is very essential to reveal this economic thinking “post hoc fallacy”. This is a belief that when one event precedes another the first event is the cause of the second. This is very important to understand it and some researches are carried out in this direction. Researches show that if we add a year to the average school years it will bring about an increase of profit between 6-10%. Of course profit per capita and these figures might change depending on countries and period of time. But there is a common consensus in macroeconomics and of course some problems too. First of all, how to measure human capital? Regarding the statistics reports we might say that there is no any measurement for human capital. The researchers use some instruments in order to measure human capital. The instrument is just only average period. To tell the truth this is not an ideal instrument. Because first of all this indicates only quantity and might not indicate quality, which is quite possible. Second as I mentioned above there is a problem of post hoc fallacy, I mean cause-result problem. It means people want to invest in education more if there is sluggishness. Third there is a certain concept; it doesn’t mean that if I spend ten or eleven years at school my profit will increase, the cause is that a good education system is available. The cause is that either my parents pay more attention to education or my parents are highly educated and consequently they motivate and direct me. I mean there is something different here; individual profitability of education and publicly profitability of education. The question arises; should the government invest in education? The government should invest in education incase provided that the profitability of education in public is more than the individual profitability. Why? Because if individual profitability doesn’t regard the profitability in public it will bring about the optimal rate of investment in education. That is why in market economy the government should strengthen its role and should regard this margin. Fore example; somebody is studying, this is investment in education and the researches revealed by him might be very beneficial. These revealed researches are not only beneficial for himself but also beneficial for the society. This is valuable contribution to society’s knowledge basis and enriches it. Others also might benefit from this knowledge basis. Indirectly an individual’s investment in education doesn’t increase his own productivity, it also increases the productivity other labour force too. But his individual’s investment in education isn’t reflected in his personal disposable income and the government should pay attention to it, help him. Of course this margin between social profitability and personal profitability can’t be measured on the macroeconomic level. That is why this macroeconomics gives boost to researches that are on the governmental level, plan. As Mr. Shahmar mentioned that traditional development models, economic growth models serve the growth of the development of technology, production function, physical capital, labour force, their efficiency and so on. Long term increase doesn’t account for investment in physical capital. For example we are involved in gathering apple in Guba and we have labour force, who gathers crop. We have got physical capital too. We need ladders, because we have got some labour force. The first ladder might increase productivity, the second one also. But fifteenth ladder will not be so efficient. I mean physical capital and the law of diminishing marginal utility have much in common. But if we talk about human capital, the law of diminishing marginal utility isn’t so influential. I mean the addition of human capital into production function results in economic growth. This economic growth theory not only expands the definition of physical capital but also adds physical capital into human capital. It is enough to explain this economic growth as being long term. Besides it the expansion of society’s knowledge basis will have positive effection the another people too, not only individually. It might be beneficial as the followings; the expansion of knowledge basis, increase in the number of educated people, the highly educated people’s carrying out some social functions, the decrease of crime rate and so on. This concept is extreme, by-effect. By-effect concept gave a strong boost to the study of human capital. But this is macroeconomic theoretical knowledge. It is a pity that empirical tasks don’t give a boost to theoretical results so much. There are some debates too; if investment in education causes economic growth or not? May be vise verse. I want to focus on two questions. I want to answer them and then to continue the discussions. The first question is if the government should invest in education or the market should do that? Which of them should give the distribution mechanism of resources; market or the government first of all I tired to answer this question. If your social benefit is more than your personal disposable income in this case the government has a great role. The government should invest both in brainy people who have a great contribution to a technological development and in education. The second reason is more microeconomic level. I mean some people who invested in education will benefit from it in future. This future expected benefit is quite enough to cover present expenditures. But right now these people are unable to cover these costs; here the role of market is very important. It would be great if they could borrow from financial markets. In most cases the financial markets evade from it. The latest crises showed that the governmental interruption, investment is very important. The government should invest in education, but not unconsciously. The government should act as Venture Company, as there are business literatures. There should be differences between investments; efficient investments, inefficient investments. Investments should be made on more efficient investments. Which investments are characterized as efficient? Researches show that it depends on the financial position of the government. For example countries like America, being at the leading edge in technological sphere. The researches show that investments should be made in high education. It causes innovations. These countries develop at this expense. For example, investment in Peycil education. For example the doctor of science is in great demand in America than ordinary carpenter. But in technically less developed countries and developing countries human capital influence economic growth by the method of imitation. The different technology adaptation methods in developed countries in the west are the same as the development direction after the II World War, Asian tiger’s development ways. The developing countries invest primary education or secondary one. This is my second question. I want to read the last question too. How to invest in education if the country is rich with natural resources? The other forum participants would answer to this question. Thank you very much (applauds).



Thank you very much. The main important factor you mentioned is the physical capital with decreasing efficiency ratio between the physical capital and human capital, on the contrary, human capital is increasing, efficent.

Some questions were raised and I hope Emin Huseynov, Director General of the Central Bank of the Republic of Azerbaijan will answer them. Please.


Emin Huseynov

Thank you. I also welcome the participants of the forum. I attach great importance to the work of the round table, the forum. A very interesting topic has been selected for today’s discussion. First of all, I would like to point out that in general, when reviewing the formation history of the economic development doctrines, when reviewing its stages, we see very clearly that while, let us say, in the 50s and 60s economic growth was promoted more as an aim, as a goal, in the following years the economic growth is not sufficient, and the other customers of the economic growth, that is, its other aspects were to be given priority. Among them are employment, inclusive step, human capital, fight against poverty, etc. Meanwhile, in the previous session the role of the institutions was dealth with, spoken about. All this shows once more that human social welfare, economic welfare is a very independent concept. And it would not be correct to express it only through humanitarian terms. And as I said, there is an inclusive growth, the growth reflecting wider aspects. I thank my colleague Erkin muallim who provided quite enough information about human capital. And the questions he raised, I think, are quite vital. I’ll try to give some possible answer to the last question. I would like to speak about the role of the human capital in economic development in the countries rich in resources. In general, it is known that Azerbaijan is a country rich in resources which was reemphasized here too. There are some choices, specific choices related to the development of human capital before the state policy in countries rich in resources. And a contradiction is generated here, especially in the state policy. On the one hand, oil resources, natural resources allow to provide the level of more income, after certain period the world practice of those countries show that there are more negative experiences than positive ones. That is, the incomes from these natural resources have more stimulating positive impact on economic development. It is connected with negative experiences rather than positive ones which as the main demand shows that more convenient incomes are gained through natural resources. And actually those incomes cause postponement of the need to create higher added values in other spheres of economy, to organize higher economic activity. As a result, more concentration takes place in the country. That is, economic vertification decreases and concentration, the concentration of some resource sector increases which, in its turn, causes the decrease in demand in human capital in other sectors and leads to, I would not say to the decrease in the need of the human capital in that sphere, but to the increase with speed less than the growth level of the country’s incomes. On the one hand, such kind of problem emerges, and on the other, if this sector develops in that country, in the country rich in oil, resources, it means the formation of more physical capital,  the formation of more financial capital. And as it is obvious from economic theory, in the economy with increasing financial capital, physical capital, there must be need in human capital, higher human capital as well. For, the presence of money is not sufficient yet. There must be high human capital to be able to use it so that it has some result. So, there is a choice before the state. On the one hand, let us say, there is convenient income. On the other, the presence of that income necessiates the formation of additional human capital. In such case, no doubt, the state, different states react to this sphere in different ways. As I mentioned, the number of good experiences in the world practice is fewer than negative experiences. And now let us deal with human choices. Earlier Erkin muallim also mentioned it. In general, in a country rich in any resource because of the considerable increase in human welfare level within a short period of time people encounter choices where to aim their productive activity, where to invest. Whether to invest in education or let us say, in an alternative sphere. For, if any young person wants to develop, he/she thinks about his/her development choices, ‘Shall I apply for the University, shall I invest in higher education and spend some 5-6, sometimes 10 years on it. Consequently, I shall be trained as a wonderful specialist and benefit from it in the end. Or to follow this process is very challenging, it demands a long time, it demands long-time investment. Economy is developing already, there are wonderful opportunities already. I can get engaged in some entrepreneurship even now. And let me replace the incomes I can get in future from my education with the present incomes.’ And the youth facing such choices conducted a Gostpertive analysis. That is, they conducted an analysis of income and expenditure. It turned out that in countries rich in resources people are particularly more inclined to prefer the incomes to be gained at present time. Of course, this is, let us say, a dangerous tendency. And the states of the countries rich in resources should realize a policy providing the development of human capital despite all these tendencies. And in the end, I would like to say a few words about the processes going on in Azerbaijan, the related processes. In general, if we divide the economic development history of Azerbaijan into 3 stages (that is, what developed and what took part in the role of the source of economic growth, in the role of its driver), we’ll see very vividly that at the preliminary stage important experience, foreign direct investments entered the country in the frames of “The Contract of the Century” signed by our national leader’s initiative and with his political will-power. And this led the economic growth. That is, economy already stood on its feet. And it lived a long way of stability and development. Further, at the second stage, already with the utilization of Baku-Tbilisi-Ceyhan pipeline, oil incomes in great volumes began to enter Azerbaijan which leads the economic growth, economic development  at the second stage. We are at the third stage already. That is, a global financial crisis has already taken place. Now we are suffering its consequences. Now there is a strategic question ahead. A country like Azerbaijan rich in oil has several features. What will be the new development history, what will constitute the main source of its economic growth in the long period confronting a country rich in oil, a country with moderate income and specific, social and cultural capital, that is, a country situated at the juncture of East and West, and reflecting the symbiose of different cultures. And in this connection our esteemed President Mr.Ilham Aliyev has already presented his strategic view today. As you know, a special state commission has been created to develop the national education strategy in Azerbaijan for the coming 10 years. Esteemed Shahmar muallim is also a member of the commission. This is the vivid example of the importance attached by the state to the human development, to the development of human capital. What is the goal? I’ll answer very briefly. The goal is that Azerbaijan is a very small country. Its internal market is small enough for it to gain economic development, the rapid economic development on the basis of internal demand. That is why, Azerbaijan must prefer a foreign-based development model more. However, in order to export, in other words, in order to be able to sell its product abroad, innovations are needed. High development force of human capital is needed. Hence such a strategic view is presented. I thank you all once more, and will answer those who have questions.



Thank you, Mr. Emin, The floor is given to Mr. Qabil Manafov, the professor of ASEU.


Gabil Manafov

Thank you, dear forum participants, Ladies and Gentlemen, dear teachers and students.

My speech is directly devoted to the one of the main problems of the forum. I’m going to speak about the humanitarian aspects of entrepreneurship. The subject is chosen intentionally. First of all we live in the market economy system and the economic reforms are implemented in this direction. Market economy is an economy of free enterprise, and the problems of market economy system at the same time are the problems of entrepreneurship or vice versa. The second reason why I have chosen this subject and speak about it is the economic approach to the entrepreneurship as a profitable area from the economic point of view. Thus the changes and the realities of the last period prove that the benefit factor is not enough for the modern world. The modern requirements of the world demand new approaches and new views to the problem. We know that the systems preceding the market economy differed with their historical temporary characters; consequently, the one system can not be replaced by another. The conformity to the natural law of this substitution proves that the market economy system is a temporary system.

But last 20-25 years, particularly, during the global economic crisis the market economy has changed so much that this makes people wonder if the market economy system is out or new trends directions which hadn’t existed before and appeared nowadays, need to develop in the future.

The most important tendency among these directions is the formation of tandem between entrepreneur and government like the formation of contact, agreement, cooperation and social partnership. This exists in all models. The character of economic reforms and the results of economic opportunities show this. Social-oriented researches and reforms for developing the economy in the country demonstrate that there is a common consistency with law: state and entrepreneur. When speaking about entrepreneurship we have to mention that capital, that is, the entrepreurship and sociality turns into the main problem and the object of research. I speak about sole proprietorship not about state ownership. How must capital and social tendency, humanitarian aspects be expected in the modern world and in which direction it will be reflected in future? The second problem is that the entrepreneurship is an intellectual potential, human potential and human factor itself. If we speak about entrepreneurial and humanitarian aspects we have two approaches. The first is the development of education, health, IT fields and etc. And the second is that the entrepreneurship is not out of social system as humanism and human factor which is in the centre. They interact and serve each other. Entrepreneurship has a great role in the social support, social security, and social stability and in the formation of middle class in society. I want to mention that the middle class has a decisive role in the formation of entrepreneurship.

Who does the social structure of entrepreneurship consist of? Who has joined to this process? Who expects the result of his hard work from state and society? Economic model refleсts the nature of each country. In this regard our model does not distinguish from others. There is a general regularity but at the same time there are characteristic models for each country. The characteristic feature of our economic development model is the unity of the East and West. When speaking about social structures, social results, and social motive of entrepreneurship we need specific approach. For example, social motives of entrepreneurship are not only for ownership, and its employees working for enterprises. The famous Japanese businessman Tateti asks: (a manager can understand it more clearly)” When does an employee get motivation at the result of his work? First, he must enjoy his job and secondly, he must have an opportunity to earn more. Third, he must be involved into management of the company. Nevertheless, all above mentioned is not expected in modern economic systems and countries and this is only a theory. What is the owner’s motivation? The main motivation is profit. Must the entrepreneur rely on himself or government for getting profit? There is an aphorism: the more the owner is satisfied with the government the more he will be involved into the solution of state’s problems. I mean, if the owner’s legal ownership is not protected by the government, we are not able to speak about owner’s and his employees’ interest in humanitarian aspects.

Our guest on my left spoke a lot about empirical facts. It is natural, because it is impossible to go out of facts. I want to say it for our guest too. A lot of working places have been opened in the last 7-8 years, from 2003 to 2010 and about 650 thousand of them are permanent. Most of them are in entrepreneurship, especially, in private business. Another fact is that the natural allowed limit of unemployment is about 4% and theorists know this well.  According to the latest facts today the unemployment level of economically active people in Azerbaijan is about 5,6 % so it does not exceed allowed standard.

I will summarize. I can speak a lot about it. I think the development of society and economy depends on supporting and realization entrepreneurs’ interests and development of entrepreneurship.  Satiety of economy can bring about illness and we are able to find out the ways of its solution. For example, the development of economy creates some environmental problems and at the same time it can give us material opportunities for their solution. Then it will create consumer society and it will create consumer’s new models and life style. At last the human’s material existence determines his consciousness. There is a huge role of entrepreneurship in the formation of conscious human, the human who lives in developed society and the human following the rules. Consequently, nobody will throw a bottle out of the window of the car.



Thank you. We don’t have enough time, if anubody has a question, please ask. Here you are. Nothing is heard.



It’s known the theme of today’s forum is the human aspects of economical motives. Today Mr. Elkin had an interesting talk. He spoke about human capital and I think that human capital can totally be refered to the humanitarian aspects. I have a question to Mr. Elkin. But what can the state and non-governmental organizations do in order to eliminate the poverty. In addition I have another question if economy must be establish on the middle class? But nowadays the middle class in Azerbaijan has decresed a lot. There are strong sites and weak sites. Which strategy should the Azerbaijan government move forward for the developing of the middle class.


Erkin Nurmammadov

I can’t answer your question at all. It’s the problem of the state. But I couldn’t understand your first question. Will you repeat it?



Our first question is what must the state and non-governmental organizations do in order to eliminate the poverty?


Erkin Nurmammadov

I notes the formation of human capital from the point of general economy. Should we direct investment to this area or another ones. And when we say human capital it means investment. If I move forward invest here I can’t move to another site. Here the tension must be how Mr. Emin showed.



As I understood you put a question. When you talked about human capital you touched upon only one aspect of formulation of human capital. You spoke about education. By the way human capital is a wide idea. There is a medical issue, the health of humanity is a part of human capital. Of course all these aspects influence formulation of human capital. And the main subject is that we mean by saying human capital and globalization. Globalization – is the globalization of competition. Every year the companies in the frame of the country could complete among one another, but nowadays companies began to globalize in the international level. The competition of the countries complete with each others have already began. In this competition the countries have gained majority on the basic of human capital. The influence of physical capital is very little here. We can show it in a great plenty of examples. As we know a great program, attempt has been suggested by Mr. President. His suggestion has a magnifisant name. The project of changing black gold into human gold. And according to this project we shall try to gain the majority of international competion by human capital. Here you are, Mr.Gabil


Gabil Manafov:

I can’t answer to the first question. But I’ll try to answer the second one. Middle level, middle class. What’s this? This is the same , approximately has the same life style. There isn’t any serious difference in the level of income, may be at a scale. It is nearly the same class, layer, crowd among the people, owning the same production capacity. How is this section being formulated? How does the section create this class? Of course, let’s have a look at the developed countries. Assuming that the middle class and middle level was formulated. Totally crossing, there are distinct poor and rich people. But entirely the stability in the society is fixed on the shoulder of the middle class. At the same time the formation of the middle class, the way of development in Azerbaijan I can see in such way. The main factors of economic growth are the  quantity and quality of natural resources. Allah has given all these resources to Azerbaijan. Nowadays the government of Azerbaijan uses these resources in the sufficient extent and with the considerebly efficient way. Thus, the main part of oil income is spent on the answering of future nations demands, other part on the infrustructure development of Azerbaijan population, significantly for the benefit of future generation. But selling oil resources and fuel resoursesare not the main targets. It’s a mean. Middle level, middle generation and middle class create the sphere of entrepreneurship. Non governmental’s sector is developing in the parallel order. Apparantly, if this non-govermental section serves to the development of education, health, economic development of the regions, improving social welfare in the districts has the target of parallel improvements, in conclusion it assures dynamic, sustainable policy and creation of middle, social rank of society. Thank you.


Thank you.

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

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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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