AZƏRBAYCAN İQTİSADİYYATINDA XARİCİ İNVESTİSİYALAR

Production decrease, inflation and shortage in investment were the major factors to impact the Republic’s economy soon after the Independece was achieved. In the early years of the independent administration acknowledgement of national aims and state interests were very hard to acquire. All the hopes and attempts to resolve severe state socio-economic problems on its own were condemned to failure. Gradually, it was concieved that the most proper and advantageous way out of the problems was to attract foreign investors to the country. Specialists could easily realise that otherwise the problems and restoration of the economic balance would extend for decades. The main factors affecting the local investment contribution were continuous decrease of total revenue in national profit amount, insignificant incentives in production & investment sector which resulted in backoff of the local investors to take part in economic activities. The time frame was the perfect instance to start resotration of physically and morally outdated major capital by modernization of the total infrastructure that was sentenced to collapce. Continuous fall in investment activities had certainly required serious attention especially if we consider the parallel and rapid worldwide resotration and improvement of the financial capital on the basis of modern methods and techniques which were newly employed. It should also pointed out that long run investment shortage and crisis would certainly result in very serious and severe socio-economic problems, of not yet identified nature and scale. As a result the Foreign Economic Policy capturing the maximum contribution and flexible and fertile basis for foreign investment to come and inject into the national economy was the economic issue of highest priority in importance.