Analyzing the Effects of Economic Reforms Made in Post-Oil Period in Azerbaijan

After gaining independence, as a result of the steps taken on transition to a new economic model in Azerbaijan, the economy of the country began to be part of the global economy. Changes and cataclysms in the global economy were already felt in the finance system. Nevertheless, due to the fragility of economic bulwarks, it was not always possible to meet the damages caused by the negative trends. In this context, recent developments in the world economy, especially the dramatic fall in oil prices, have created new conditions for almost all oil producing countries. For Azerbaijan, which has a large share of budget revenues in the oil sector, this situation was quite dangerous. The devaluation cases that took place in the country within just one year were completely unpredictable for all players in the economic system, especially for the state. In such a situation, the country actually faced a crisis. The government predicted that the oil prices will remain stable until at least 2030. The authorities Azerbaijan was not accustomed to operate under these circumstances. The only way out was to adjust the budget to new oil prices and provide it with additional revenues from the development of the non-oil sector.