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Autumn 1995 (3.3)
Pages 62-63
Diplomatic Interview
United Nations
Development Program (UNDP) Representative
by Paolo Lembo
Related Articles:
(1)
Lest
We Forget: The UN in Iraq - Sergio Vierira de Mello - Paolo Lembo
(2) Another
Wind: Memories of the Birth of a Nation: Azerbaijan - Paolo Lembo
(3) Letter
from Kosovo - Paolo Lembo
(4) Infinitesimally
Short (Why Are We Killing Each Other?) - Paolo Lembo
Interview by Betty Blair
Each time, I've dropped by to see you in the UN office these
past three years, I've always found you incredibly positive and
supportive of this country and its people. This, despite the
fact that you've been here during the most devastating stages
of war, and you've seen the refugee population swell to an incredible
15% of the entire population. You've witnessed the leadership
of two Presidents and numerous organizational changes in the
government, not to mention several attempted coups. You've observed
the abject poverty that many people have been reduced to. So
how is it that you're so optimistic about Azerbaijan?
I've always believed that in seven or eight years if there
is political stability, this country can become one of the most
powerful and richest in the whole region. We all know this could
be a little paradise. There's so much diversity in the potential
resources; it's not just oil. The climate and soil for agricultural
development could make Azerbaijan self-sufficient enough to export
fruit and vegetables throughout the region. A strong industrial
base exists with the factories in Sumgayit and other major cities.
In other words, you don't have to start from scratch in Azerbaijan.
Given the geographic centrality as a gateway between the east
and west, north and south, there's incredible potential. And
there's another critical factor, too. Apart from being highly
educated, these people are very mild.
What do you mean when you
say that Azerbaijanis are mild?
They're very soft and
gentle-natured people. For example, you rarely hear anyone speaking
aggressively against the Armenians with whom they've been in
conflict over the territory of Nagorno Karabakh since 1988. I've
been working here three years now and have been involved with
the UN for 10 years. In some countries, you sense an immense
hatred that has penetrated so deep in the psyche that it almost
seems it has become an instinctual part of human nature. I'm
not just referring to established cultural patterns. It's like
the animosity has perpetrated through to the genes and become
an integral part of the mental behavior.
But in Azerbaijan, you don't feel this. In fact, you sense only
that the people are astonished and deeply pained that this war
could ever have happened and that so many have suffered from
it. This war just doesn't make sense to them.
The significance of such an attitude indicates that Azerbaijanis
are ready to melt with different cultures-different trading cultures,
and different intellectual cultures. All of these things add
up to a land that is fertile for investment as a regional center.
What kind of projects has
the UN been involved with here?
I was the first UN staff
member to be posted in Azerbaijan. I came three years ago with
a blue UN flag and a small suitcase. Today, we have more than
100 staff members representing several UN organizations: UN's
High Commissioner for Refugees (UNHCR), World Food Program (WFP),
World Health Organization (WHO); International Monetary Fund
(IMF), World Bank, and the UN Development Program (UNDP) of which
I am the Representative.
What has the UNDP been doing
here?
You can't have development
without funding. One of our main tasks has been promoting the
establishment of a global environment which is hospitable to
private investment, both domestic and foreign. This means that
economic reforms have to be set in place to attract private foreign
investors and bilateral donors. This has been the most difficult
challenge for us but I now believe we have the attention and
support of Azerbaijan's top leadership so that economic and monetary
reform can be fully implemented.
For example, after many uncertainties last April there was a
long and frank meeting with the President, the Prime Minister,
the Regional Bureau Chief of the World Bank for Central Asia,
Mr. Yurukoglu, and myself. The President decided to establish
the External Resources Coordination Agency, directly responsible
to the Prime Minister. It is a very important decision which
has established a high-level institution responsible for co-ordinating
the overall flow of external resources in the economic sphere
in an efficient and transparent manner.
The Prime Minister has decisively implemented the President's
decision initiating a new process aimed at bringing to an end
the mismanagement and the lack of transparency of the foreign
resources flow to Azerbaijan which was previously dispersed among
several ministries, each one fighting to divert as many funds
as possible in its own direction.
The future of Azerbaijan depends entirely on the efforts of the
government and the people. The assistance of the world community
can only be proportionate to the desire of members of the local
government to carry out economic and democratic reforms. We're
here to assist in that process.
Progress which has lately been
achieved in the implementation of the World Bank lending program,
indicates that the Government of Azerbaijan has gained the trust
of major international financial institutions. This is critical
because without loans, it is impossible to fund major projects
and foster a global development plan.
Economic development is closely linked with cultural and social
development. This past June, under the sponsorship of UNDP, Prof.
Urkhan Alekberov, VP of Azerbaijan's Academy of Sciences, organized
experts to provide an analysis of contemporary life. This was
published as the "Azerbaijan Human Development Report-1995".
The report was prepared entirely by Azerbaijanis themselves writing
about their own social conditions. It took one year to complete.
At the UN, we are immensely proud of their efforts. On June 15th,
we presented this Report to President Heydar Aliyev, Speaker
Rasul Guliyev, and Prime Minister Fuad Guliyev along with heads
of the diplomatic missions who attended the ceremony at the Hyatt.
What issues does the Human
Development Report address?
Azerbaijani scholars
and scientists have identified eight strategic imperatives that
are critical to the social welfare of the country. These include:
(1) protecting refugees and internally displaced persons, (2)
providing general relief to non-refugees who used to have access
to facilities such as medicine and clinics but don't anymore,
as well as (3) finding a way to create safety nets for severely
vulnerable groups such as pensioners and the "new poor".
It also calls for (4) reforming education and (5) health systems.
(6) They urge Azerbaijan to develop gas production, wind energy
and agricultural resources and (7) urge progress in transforming
Azerbaijan into a market economy, as reform is desperately needed.
(8) They see the need for responsible government so the vast
resources of the country, which, in essence, belong to everybody,
don't become concentrated in the hands of a few. They support
a strong government to maintain a central role to guarantee equity,
infrastructure and social institutions.
I was particularly impressed with one area which deals with gender
inequalities. Soviets had always declared that there was absolutely
equality. But, it simply wasn't true. To succeed in making a
career is much more difficult for women here than for men. The
report disclosed that the number of women in "non-traditional"
occupations and high-level, decision-making positions is very
low and strikingly disproportionate to their educational achievements
and total number employed. Women account for nearly half of the
country's work-force (45%), but only 1.5 % have leading positions
in the national economy.
The Report describes how housework has remained a difficult,
time-consuming responsibility of women. Food preparation is complicated
by the lack of processed foods, limited access to mechanized
kitchen and home appliances, and a deteriorating public transport
system which makes it difficult to shop for daily necessities.
Particularly problematic is the shortage and poor quality of
potable running water. Women don't get much help from men at
home because of strict cultural traditions of gender-based division
of labor. As a result, they suffer from a "double burden"
and the strain of dual roles which, in turn, inhibits their career
development in the socio-economic, scientific and political fabric
of society.
Let me move on to the subject
of Sumgayit becoming a Free Economic Zone (FEZ). Are there really
plans to create such a zone?
Along with our UNIDO
colleagues we are completing the design of a global industrial
restructuring plan of Sumgayit, comprising also the establishment
of a Free Economic Zone. After one year of work and four UNDP-sponsored
missions we are now in the final stages of the process. On August
19th, we brought a high-level UNDP-UNIDO mission, including Thomas
Kelleher, who is probably the world's best known expert in "Free
Economic Zones" (known as the "father" of the
Shannon Free Economic Zone in Ireland 20 years ago) to Baku for
one week to finalize the agreement. On Friday, August 25th, we
signed the project document with Prime Minister Fuad Guliyev.
What would it mean if the
FEZ is established?
The concept of a Free
Economic Zone is not rigid. It can be interpreted in several
ways, usually identified by a location that is geographically
favorable to various transport routes and which has a legal infrastructure
to promote and protect the investments with a particularly favorable
tax regime (frequently, but not necessarily, tax free). It generally
is categorized as a series of services in terms of airports,
seaports, railroads, highways, storage facilities, industrial
processing facilities, banking facilities and administration
services.
Why create a FEZ in Azerbaijan?
Because Azerbaijan is
a geographical gateway between the east and west, north and south.
And Sumgayit (located 50 km north of Baku on the Caspian) is
particularly favorable because of its well-developed transport
infrastructures (air, land and sea transport), storage facilities,
and large industrial estates.
What are the main obstacles
for the initiative?
In Sumgayit (which just
celebrated its 50th anniversary), some of the industrial structures
are aging. There's been poor maintenance of transport infrastructures.
The legal environment will have to be tailor-made. A large number
of highly qualified personnel would be needed to manage the zone
professionally. The labor force in some industrial facilities
needs to be retrained. And most important, the Caucasus has not
yet gained the necessary aura of stability.
FEZ is not only Dubai, it's more. In our perspective, it is the
establishment of an environment particularly fertile for direct
foreign investment, production development and economic synergies.
It's not only a place of commercial interests for consumers to
go on shopping sprees tax-free.
We intend to foster the flow of direct foreign investment which
would then become the main vehicle for the renaissance of a zone
which is currently affected by a very serious state of obsolescence.
Neither the Government of Azerbaijan, nor major international
institutions alone have the resources to rehabilitate the area.
The President and the Prime Minister have made the FEZ one of
their priorities for the next few months. UNDP is funding all
the technical assistance and feasibility studies. We are aware
that it is a gigantic undertaking but, we'll keep plugging away,
trying to transform what is now a dream into reality. After all,
that's what the United Nations is all about, isn't it?
As long as the supply lasts, you may order a free copy of
the 67-page "Azerbaijan Human Development Report-1995",
described above. Contact the UN office in New York: Juliette
El Hage, Tel: (212) 906-5979; Fax: (212) 906-6595.
From
Azerbaijan
International (3.3)
Autumn Issue.
© Azerbaijan International 1995. All rights reserved.
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to Index AI 3.3 (Autumn 1995)
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