OIL DEPENDENCE AND CHALLENGES OF THE ECONOMIC DIVERSIFICATION

As an oil-rich country, Azerbaijan faces macroeconomic difficulties because of the volatility of incomes. Azerbaijan started to get much more oil incomes after the Baku-Tbilisi-Ceyhan pipeline started to operate in 2005. In this time, everybody was thinking that the oil money would change their life and solve all the problems of the country. Despite big expectations over the last 10 years, the oil revenues have not solved some basic problems of the country like rural roads, the natural gas supply and the water supply in the regions.

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