Why was institute established?
From founder and director
Conversion of expert knowledge to more significant factor economic transformation is important substantiation of contemporary era. Scientists and analysts are appearing nowadays not only in role of experts which created certain intellectual good, but also being part of new constructive reality.
There is increasing demand for expert knowledge and number of experts, which can take a decision which is caused first of all by complexity of management tasks, its high dynamics, quantity of intersecting flows of controlling actions originating simultaneously from different sources, and dynamic changes financial-economic consumer structure of the planet.
Professor of Pennsylvania University J. McGann names several main reasons for increase of number of analytical structures: informational and technological revolution, demand for brief information presented in accessible form at the right time. (McGann J. G. 2014 Global go think thank report, p.11).
In conditions of globalization expert institutions and centers and also other nongovernmental or international organizations or entrepreneurial structures unite among themselves in terms of multiple cross-border bonds which make easier the process of perception of valuable orientations.
- To produce ideas and concepts which are looking for ways of solving global economic problems.
- To provide expertise of projects which had earlier solution related with economic life of planet, region, and country.
- To provide consulting-information support for existing government, develop proposals and recommendations.
- To actively participate in the development of regulations directly related to economic investment attractiveness of country.
- To study global economic processes and comment on them with a warning about the possible consequences of the economic life of the country.
- To contribute maximum to confortable integration of global issues.
- To convey information about the economic success, project, prospects of the country.
- To assist to entrepreneurs to adapt contemporary global economic processes.
Globalization became important real facet of modern world system, one of influential powers determining the further course of development of our planet. It affects all areas of public life including without any doubts economics.
Undoubtedly, globalization contains in itself both positive and negative aspects. Its positive influence related with effect of competitiveness to which it leads, and negative sides are potential conflicts by which it may disturbed although we maid avoid them by developing global cooperation on basis of political agreements or by establishing new international institutes.
We will try and hope that our institute brings its own belt to stability in globalized economic area.
Azerbaijani President Ilham Aliyev has signed a decree endorsing “Strategic road maps for the national economy and main economic sectors.”
As a result of sustainable economic reforms carried out by honorable president Ilham Aliyev Azerbaijan meet the new challenges of the global economy. The ongoing processes are both in the region and in the global economy, the sharp decline in oil revenue, the complicated external economic environment influence on the country's macroeconomic and financial stability.
The implementation of a number of systemic measures accordingly to main strategic goals of the economic reforms, the creation of organic coherence and mutual reconciliation between current, medium and long-term periods of the socio-economic development, establishing a new qualitative model of the economic development are the main upcoming priority tasks of the government.
All these measures are aimed to adapt to the new challenges that are taking place in the world and to minimize the impact that the global financial crisis is having on the country.
One of the sources of globalization is technological progress, which led to a sharp reduction in transport and communication costs, a significant reduction in processing costs, storage and use of information (the creation of e-mail, the Internet, powerful computers).
The second source of globalization - the liberalization of trade and other forms of economic liberalization that caused the restriction protectionism and make world trade more free as a result tariffs were significantly reduced, many other barriers to trade goods and services were eliminated. Other liberalization measures have led to increased movement of capital and other factors of production.
The third source of globalization can be considered a significant extension of the scope of the organizations, which have become both as a result of technological progress, and more control horizons through new means of communication. So, many companies focused early only to local markets, have expanded their production and marketing possibilities, reaching the national, multinational, international and even global. As part of the multinational corporations it is now carried out almost a third of world trade. With the advent of global companies there is a fierce battle for global market share.
The world is becoming more integrated and interdependent.
Of course, the impact of globalization on the economy of Azerbaijan will be a priority in the activities of the Institute of Global Economic Problems.
Globalization has a great influence on the economy of Azerbaijan, wearing a multi-faceted character. It affects the production of goods and services, the use of the workforce, investment in "physical" and human capital.
Some aspects of the impact of globalization on our economy deserve proper attention. First, we note the high rate of foreign direct investment.
These investments play a key role in technology transfer, industrial restructuring, the formation of global companies that have a direct impact on the economy.
The second aspect concerns the impact on technological innovation. New technologies are among the driving forces of globalization.
Finally, as a result of globalization, there is the growth of trade in services, including financial, legal, management, information and all kinds of "invisible" services, which are transformed into a major factor of international trade relations.
The benefits of globalization:
* The aggravation of international competition
* Increase in production
* Economies of scale, reduction of costs, lower prices.
* The development of mutually beneficial trade
* Increased productivity as a result of the rationalization of production at the global level and the introduction of advanced technology, innovation
Costs, challenges of globalization
• One of the main problems associated with the question of who stands to benefit from globalization. In fact, the bulk of the benefits getting to rich countries or individuals.
Inequitable distribution of benefits from globalization affects the threat of conflicts at the regional, national and international levels
• The second problem relates to the potential regional or global instability due to the interdependence of national economies in the world. The global recession depression can lead to calls to break interconnections depending created in the course of globalization, as it did during the Great Depression of the 30-ies in the United States, as it is the case at present.
• The third round of globalization problems has raised fears that control over the economies of separate countries can move from sovereign governments in the hands of powerful states.
Increased international cooperation between countries at all levels, including between «think thank» type institutions can solve some of the problems that were presented as costs of globalization
• The first group of problems as mentioned above is for the distribution of the benefits of globalization within countries and between them. These issues should be resolved by an international institution on the basis of global cooperation. It could, for example, to impose the country receiving the greatest benefits from globalization special tax using the proceeds to provide financial and technological assistance to those who lose from globalization. Rich countries should support this initiative as a mean to achieve global stabilization.
• The next set of problems associated with the fragility of the international economic system, which leads to the interdependence of countries.
An analysis of this problem, too, is on the agenda of the priorities of the Institute
• The third problem of globalization – is infringement of national sovereignty and independence of the political leaders, this can be solved on the basis of international cooperation, for example, by a clear separation of powers of the parties, national governments and their leaders, on the one hand, and international organizations and transnational corporations - on the other. We believe, it should not be infringed upon the interests of countries in a globalized world.
We are for equitable global economy!