Table of contents introduction

2.3. FDİ

The economic income levels of natural resources are also far from balanced. When we look at the category of products that are economically important to natural resources, the product groups within the IMF classification are as follows; edible nutrients (cereals, oils, tropical fruits with meat and seafood), edible nutrients (tea, coffee, etc.), agricultural raw materials (timber, cotton, wool, leather, etc.), metals ( copper, aluminum, iron, tin, nickel, lead, zinc, uranium, gold and the like) and energy products (such as oil, natural gas, coal and lignite). Undoubtedly, the most important of these are metals and energy products.

When viewed in terms of natural resources and significant types (such as metals and energy products), it is possible to say that only a small group of transition countries are moderately rich, while the rest are poor. These countries; Azerbaijan, Georgia, Kazakhstan, Uzbekistan, Poland, Romania, Russian Federation, Turkmenistan and Ukraine. The fact that other countries are poor in terms of natural resources does not mean that these countries do not have any natural resources, but that the amount of known economic resources is insufficient.

Given the potential source of prosperity against the unequal distribution of natural resources on earth, finding a new natural resource is considered a very important goal, especially for less developed countries.

While there are examples of this assertion that the richness of natural resources has a positive effect on economic development, it is not easy to think that economic development can be achieved automatically. Even the opposite can happen. Many studies evaluating the economic performance of rich countries in terms of natural resources contain remarkable findings in this regard, and state that being rich in natural resources can have a negative impact. When we look at today's world economy, we can come across many examples. Natural resource-poor countries such as Japan, South Korea, Switzerland, Italy, Finland, Ireland, Mexico, Nigeria, Venezuela, Russia, Iran, Iraq, Chile, Brazil, Colombia, Ghana are more developed and more profitable than natural resource-rich countries. are one of the most frequently cited examples in this regard.

Although the revival created by natural resources is seen as an important part of economic power, the evidence obtained so far shows that economic development in countries with abundant natural resources has slowed down over time, so periods of economic abundance caused by natural resources may not last long. To explain this, they believe that a country has discovered rich oil resources or other natural resources. It is clear that this discovery will increase national income and significantly increase the country's well-being for these natural resources, but it is clear that if economic growth slows in the long run, the country's well-being will eventually fall below normal.

In the development of the non-oil sector, the government pursues economic policies in various ways. The government's diversification policy is considered one of the main priorities of its economic policy. As a result of the availability and protection of natural resources, diversification policies are being implemented in developing countries to eliminate their dependence on economic development through the development of the non-resource sector. The main task of economic diversification is to ensure long-term sustainable economic development. The government is trying to achieve this goal by moving to an economy based on export-oriented and high-income integrated production technology, advanced innovations and advantages in the service sector.

Based on the experience of different countries, the government's policy and diversification are based on the strategy of sustainable development of the national economy, which is reflected in the implementation of the strategy and regional development programs.

As you know, after the Treaty of the Century, signed on September 20, 1994, a great revolution took place in the economy of Azerbaijan. Since the mid-2000s, the government has begun to develop a number of laws, strategies and programs to diversify the economy. Because this period was important for the country and its future development. Thus, the inflow of large oil money into the country allowed to invest in the development of other non-oil sectors. In this regard, the government has adopted a number of laws aimed at economic diversification. A number of laws, such as state support for small businesses, financial and industrial groups, special economic zones, and periodic tax breaks for agricultural producers, may be important to lay the groundwork for economic diversification at the overall economic level. Some laws focus on the development of private sectors selected by the government as a goal of transparency. Examples of such laws are tourism, seed production, grain growing, cotton growing, viticulture, tea production and others.

The Intergovernmental Commission on Economic Cooperation between the Russian Federation and the Republic of Azerbaijan is a working mechanism regulating relations between Russia and Azerbaijan at the state level. Deputy Chairman of the Russian Federation A.R. Khloponin, North Caucasus, Russian Federation On March 18, 2011, the XIII meeting of the Commission was held in Moscow. A number of issues, the state and prospects of trade and economic relations between the two countries were discussed here. The parties discussed the implementation of decisions taken at the XII Congress in the field of transport, communications and information technology, to eliminate the consequences of emergencies. One of the main issues of the meeting is the development of cooperation between the Federation of the Russian Federation and the borderless subjects of Azerbaijan. Such cooperation helps to expand cooperation in general economic, scientific, technical and cultural fields.

The draft agreement between the Government of the Russian Federation and the Government of the Republic of Azerbaijan on measures to ensure the uninterrupted operation of the integrated energy systems of Azerbaijan and the Russian Federation is in the final stage of coordination.

Trade and economic agreements between the two countries continue. The next stage of mutual protection and promotion of investments was held in Baku. There are more than 500 companies in the Azerbaijani market, 200 of which are 100% Russian capital, as well as more than 300 Vneshtorgbank (VTB), Rosselkhozbank and Nikil Bank in the banking sector of the United Nations.

Azerbaijan has a joint Russian-Azerbaijani enterprise for the production of bentonite sediments. The interest of Azerbaijani workers in cooperation with Russian partners is growing. During September 2010, the Azerbaijani company Azersun Holding built a unit in Belorechensk (Krasnodar Territory) and commissioned a unit plant. The company currently owns about $ 50 million and is implementing a cannery project to process fruit and vegetables with a normal bank.

Interregional cooperation plays an important role in the development of trade and economic relations between Russia and Azerbaijan. Relations in the field of interregional cooperation are growing. In October 2011, a delegation led by Alexander Khloponi, Deputy Chairman of the Russian Federation and a representative of the North Caucasus Federal District, arrived in Baku. The delegation included representatives of Dagestan, Ingushetia, Kabardino-Balkaria, North Ossetia-Alania, the Karachay-Cherkessia government and the Stavropol Territory. During the meetings, agreements were signed between Dagestan, Ingushetia, Karachay-Cherkessia and Azerbaijan in trade, economic, scientific, technical and humanitarian spheres, as well as in the cities of Nevinomesh and Sumgayit. Within the framework of FFAD, investment projects of the subjects of the Russian Federation were presented.

Azerbaijan determines the future development of economic relations in the CIS region on the basis of a beneficial partnership strategy. The priority of relations with the Russian Federation in the region is of particular importance for this strategy. Azerbaijan is especially active in expanding the role and activities of promising relations. At the same time, it should be noted the practical importance of the activities of the Russian sales representative. Since March 2006, the Trade Representation of the Russian Federation has been operating in Baku.

The current state and prospects of bilateral trade and economic relations with Azerbaijan and the CIS depend mainly on the activities of the Interstate Economic Cooperation Commission. Therefore, the main issues related to the organization of the legal framework of the contract should be discussed and adjusted to meet new development needs [28, p. 37]

Establishment of investment relations is of strategic importance for the implementation of major projects in the CIS region. Discussion of prospects for the use of the GLONASS satellite innovation system in Azerbaijan could be a promising cooperation with Hermes GPS, the regional center of the Russian company M2M Telematics.

Synterra may be one of the next steps in the new cooperation between Azerbaijan and Russia. Issues related to the implementation of Synterra's joint projects with Azertelecom in the field of ICT were discussed.

Net financial assets in Azerbaijan in the first half of 2014 amounted to $ 6 billion. This was announced on the website of the Central Bank of Azerbaijan (CBA) in the balance of payments in the first half of the year.

According to the balance of payments, this amount was produced by foreign direct investment (367.2 million US dollars), portfolio investments (104.8 million US dollars) and other investments (5,573,600,000 US dollars).

Direct investments in the oil and gas sector amounted to $ 266.8 million, or $ 100.4 million. The United States is involved in other sectors.

Other investments include trade loans and advances ($ 2923,100,000) and loans and borrowings ($ 56.9 million), deposits and cash (2,533,600,000 US dollars).

In May 2017, a meeting of the Security Committee on Economic Affairs was held under the spring session of the NATO Parliamentary Assembly (PA). The focus is on the impact of these factors on global warming, food security, climate change, the NATO PA and other financial economies, economic security and equality. These topics were discussed. Information was provided on the economic development of Azerbaijan, economic security, investment climate and opportunities. The experts stressed that Azerbaijan is investing in foreign countries. Azerbaijan invests not only in Georgia's energy sector, but also in agriculture, the banking system and infrastructure projects. Azerbaijan ranks first among the countries investing in Georgia in 2016. Secondly, the volume of Turkish investments in Georgia is half the amount invested by Azerbaijan. The importance of the oil and gas pipelines, the Baku-Tbilisi-Ceyhan, Baku-Supsa and Baku-Tbilisi-Kars railways, initiated by Azerbaijan for Europe's regional energy supply and energy security, was stressed at the meeting. The construction of the Baku-Tbilisi-Kars railway project initiated by Azerbaijan has been completed. Together with Asia and Europe, this project will play an important role in our economic security and development [Barkhudarov Mansur.2017: 41].

GDP growth in Azerbaijan was proportional to local consumption and public investment. It can be said that according to the State Statistics Committee, actual final consumption expenditures increased by an average of 14.0 percent per year in 2005-2010, and by 8.0 percent in 2010-2017, respectively.

High investment activity was observed in Azerbaijan in 2004-2016. During the period, 229.6 billion manat was invested in the country's economy, of which 53.8 percent was financed from domestic and 46.2 percent from foreign sources. In January-September 2017, 41.7% of total investments in fixed assets in the economy or 4623.0 million manat were directed to the non-oil sector. 7.5% of investments in fixed assets and 18.1% or 834.3 million manat of investments in the non-oil sector were used in the development of the non-oil sector.

This is a fact that our country, which in the recent past depended on foreign investment, now invests in various projects abroad. Of course, today Azerbaijan is no longer a borrowing country, but a lending country. The expansion of financial opportunities, the sharp increase in foreign exchange reserves (currently more than $ 42 billion) allows Azerbaijan to invest heavily in partner foreign countries, provided that its strategic interests are met.