Under a three-year agreement with the IMF signed in December 1996, the GOAZ is continuing the policies of fiscal and monetary austerity first adopted in 1995. EBRD will continue to work with other Azeri banks to promote economic growth. Key in their switch to a free-market economy has been the move toward privatization, which began in 1996. Implementation of the privatization effort is the responsibility of the State Property Committee. Between the period May 1997 to December 1998, more than 20,600 companies were privatized, and proceedings started for many others.
Agricultural potential is substantial.
However, this irrigation system was constructed during the time of the old Soviet collective farming system and, while still functioning, many parts are now in serious disrepair. Many of the collectives and state-owned farms have since been privatized under the Law on Land Reform that went into effect in 1996. Livestock and dairy products are another important sector contributing to the Azeri economy. Small private farms produce cattle, sheep, goats, pigs and poultry. Farm production has declined steadily despite the country's tremendous agricultural potential.