JOINT STAFF WORKING DOCUMENT Implementation of the European Neighbourhood Policy in Azerbaijan Progress in 2012 and recommendations for action Accompanying the document JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS European Neighbourhood Policy: Working towards a Stronger Partnership
Date: 2013-03-20
Institutions: European Commission, High Representative of the Union
Subjects: Azerbaijan, European neighbourhood policy, democratisation, economic integration, economic reform, educational reform, institutional reform, political cooperation, political reform, sustainable development, trade cooperation

EUROPEAN 
COMMISSION 

HIGH REPRESENTATIVE OF THE
EUROPEAN UNION FOR
FOREIGN AFFAIRS AND
SECURITY POLICY

Brussels, 20.3.2013  
SWD(2013) 88 final 

JOINT STAFF WORKING DOCUMENT 

Implementation of the European Neighbourhood Policy in Azerbaijan 
Progress in 2012 and recommendations for action 

Accompanying the document 

JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, 
THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE 
COMMITTEE OF THE REGIONS 

European Neighbourhood Policy: Working towards a Stronger Partnership 

{JOIN(2013) 4 final} 
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{SWD(2013) 80 final} 
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{SWD(2013) 83 final} 
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{SWD(2013) 85 final} 
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1.  

OVERALL ASSESSMENT AND RECOMMENDATIONS 

This  document  reports  on  the  progress  made  between  1  January  and  31  December  2012  in 
implementing  the  EU-Azerbaijan  European  Neighbourhood  Policy  (ENP)  Action  Plan,  although 
developments outside this reporting period are also taken into consideration when deemed relevant. 
It  is  not  a  general  review  of  the  political  and  economic  situation  in  Azerbaijan.  Information  on 
regional  and  multilateral  sector  processes  is  contained  in  the  Eastern  Partnership  Implementation 
Report. 

EU-Azerbaijan  political  dialogue  in  2012  included  visits  to  Azerbaijan  by  the  President  of  the 
European  Council  in  July,  by  Commission  Vice-President  Kroes  in  November,  and  by 
Commissioners  Füle  in  April  and  Oettinger  in  August,  as  well  as  visits  to  Azerbaijan  by  several 
MEPs. The Second EURONEST Parliamentary Assembly took place in Baku in April, the first such 
meeting outside the EU. 

Despite progress in the implementation of the Action Plan in 2012, Azerbaijan needs to step up its 
efforts if it is to meet all Action Plan commitments on democracy, including the electoral process, 
the  protection  of  human  rights  and  fundamental  freedoms,  and  the  independence  of  the  judicial 
system - particularly in terms of implementation. 

Positive developments included the release in June of all remaining activists who participated in the 
May 2011 protests. However, issues related to electoral legislation, freedom of expression, freedom 
of  the  media  and  freedom  of  association  and  assembly  still  need  to  be  addressed.  Appropriate 
corrective measures by the Azerbaijani authorities to meet their commitments towards the EU, the 
Council  of  Europe  and  the  Organisation  for  Security  and  Cooperation  in  Europe  (OSCE)  are 
especially pressing, bearing in mind the upcoming presidential elections in October 2013. 

Corruption  continues  to  be  the  main  obstacle  to  economic  diversification  and  the  development  of 
entrepreneurship in Azerbaijan, including in the region. The perceived lack of accountability is the 
source of anger and resentment. The EU will monitor closely the outcome of numerous initiatives 
and the new tools created by the authorities to curb corruption, in particular the 2012/2015 Action 
Plan adopted on 5 September 2012, to see whether these can yield long awaited deliverables. 

The  macroeconomic  fundamentals  of  the  Azerbaijani  economy  remain  largely  positive.  The 
generally  improving  business  climate  would  benefit  from  clearer  rules  on  competition,  increased 
budget transparency and in particular from sustained action against corruption. Efforts will also be 
needed to revive World Trade Organisation (WTO) accession talks. The EU continues to see strong 
benefits for Azerbaijan participating in the multilateral rules-based system. 

Significant progress has been made under the Strategic Partnership on Energy between the EU and 
Azerbaijan, on the basis of the joint statement signed by Presidents Barroso and Aliyev in January 
2011.  The  Azerbaijani  and  the  Turkish  Parliaments  have  now  ratified  the  bilateral  agreements  on 
the construction of the Transanatolian Pipeline for transit of gas to the EU. The realisation of the 
Southern Energy Corridor has come one step closer and only awaits the decision of the Shah Deniz 
II consortium on the preferred route to the EU market – this decision is expected in the first half of 
2013 and the Final Investment Decision by October 2013. Talks with Azerbaijan and Turkmenistan 
on the Transcaspian Pipeline have continued, with the last round taking place in September 2012. 

Negotiations  on  an  Association  Agreement  gained  momentum  in  September,  following  several 
months of little progress. Negotiations  on a Deep and Comprehensive Free Trade  Area (DCFTA) 

2

 
 
can only be launched after Azerbaijan has acceded to the WTO. Negotiations got underway on EU-
Azerbaijan Visa Facilitation and Readmission Agreements were successfully launched. 

There  has  been  no  progress  in  the  talks  mediated  by  the  OSCE  Minsk  Group  co-chairs  aimed  at 
settling  the  Nagorno  Karabakh  conflict.  Front-line  incidents,  the  Safarov  case  and  the  opening  of 
the airport in Nagorno Karabakh have shifted priorities towards defusing tension rather than seeking 
a solution. There was also no progress on the incident investigation mechanisms supported by both 
sides  at  the  Sochi  Summit  in  January  2012.  The  European  Union  Special  Representative  on  the 
South Caucasus and the crisis in Georgia visited the region on three occasions to support the work 
of  the  OSCE  Minsk  Group,  and  the  EU  funded  project  'European  Partnership  for  the  Peaceful 
Settlement  of  the  Conflict  in  Nagorno  Karabakh',  aimed  at  developing  confidence-building 
measures, entered its second phase. 

Azerbaijan  addressed  only  a  few  of  the  key  recommendations  contained  in  the  last  year's  ENP 
progress report. It started implementing the Human Rights Action Plan, continued judicial reform 
and took some steps to address the problem of demolitions and forced evictions. It did not cooperate 
with  rapporteur  of  the  Parliamentary  Assembly  of  the  Council  of  Europe  on  political  prisoners. 
Progress is needed also on the other key recommendations. On the basis of this year’s report and 
with a view to the sustained implementation of the ENP Action Plan in 2013, Azerbaijan is invited 
to: 

•  Ensure  implementation  of  the  January  2013  resolution  of  the  Parliamentary  Assembly  of  the 

Council of Europe on the honouring of obligations and commitments by Azerbaijan. 

•  Continue implementation of the Human Rights Action Plan adopted in December 2011. 

•  Step up efforts with Armenia to reach agreement on the Madrid Principles, in accordance with 
the commitments made by the Presidents of Armenia and Azerbaijan within the Minsk Group. 

•  Ensure  unimpeded  access  to  representatives  of  the  EU  to  Nagorno  Karabakh  and  surrounding 
regions  in  support  of  conflict  transformation  activities  in  full  complementarity  with  the  Minsk 
Group activities. 

•  Promote an environment conducive to progress in the conflict settlement, encourage and support 

related peace-building activities. 

•  Adopt  the  Law  on  Defamation  which  provides  for  the  abolition  of  criminal  liability  for 

defamation and insult. 

•  Bring  electoral  legislation  into  line  with  the  OSCE/ODIHR  recommendations  and  ensure 

effective implementation. 

•  Continue to bring legislation on freedom of assembly, freedom of association and freedom of the 

media into line with international standards, and ensure its implementation. 

•  Step up efforts to investigate cases of harassment against journalists and activists. 

•  Step up efforts to make the judiciary independent. 

•  Address  outstanding  issues  in  public  financial  management,  notably  on  transparency  and 

accountability in relation to the budget cycle. 

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•  Implement the National Anti-Corruption Action Plan. 

•  Adopt  and  implement  a  competition  law  to  create  more  predictability  and  transparency  in  the 

market. 

2.  

POLITICAL DIALOGUE AND REFORM 

In April, Parliament adopted amendments to the Electoral Code in April, most of which relate to 
the  handling  of  complaints  and  a  public  funding  system.  However  major  improvements  linked  to 
the  Office  for  Democratic  Institutions  and  Human  Rights  (ODIHR)  recommendations  are  still 
pending,  such  as  the  composition  of  the  electoral  commissions,  the  registration  process  and  the 
investigation  of  complaints.  The  arrests  of  two  high  level  opposition  members  following  the 
Ismayilli  events  on  23  February  2013  confirm  that  initial  concerns  remain  relevant.  An  internet-
disseminated video showing a Member of Parliament negotiating a bribe in exchange for a seat was 
broadly seen as evidence that the electoral process is still permeated with corruption. In a positive 
development, the MP in question was arrested in February 2013. 

Concerning freedom of association, a new penalty for providing false information during the state 
registration of legal entities was introduced in the Code of Administrative Offences in early 2012. 
Later, in March, Parliament passed a law amending the Criminal Code, according to which criminal 
liability can be applied to legal entities for criminal acts committed by officials acting in favour of a 
legal entity or in order to protect its interests. The Government finally agreed to re-register the US 
National  Democratic  Institute,  suspended  since  March  2011.  However    the  Human  Rights  House 
request for registration is still pending. 

Freedom  of  assembly  remained  a  serious  concern.  While  people  imprisoned  in  the  wake  of  the 
protests of April 2011 were granted an early release by a Presidential decree, the authorities continued 
to exert very tight control and to impose serious restrictions. Peaceful protests in central Baku, which 
intensified in the run-up to the Eurovision Song Contest, were clamped down on, and participants were 
temporarily detained. Opposition forces staged rallies in authorised venues, in the outskirts of Baku. 
However, rallies in downtown Baku continue to be refused authorisation. November amendments to 
the Law on Freedom of Assembly provided for drastic increases in fines for organising and taking part 
in  peaceful  rallies,  which  may  further  restrict  the  freedom  of  assembly  in  the  run-up  to  the  2013 
presidential elections. 

Freedom of expression and of the media remained a serious concern. Currently several journalists 
are being detained on various charges. Harassment, intimidation and violence towards independent 
and  opposition  journalists  continued.  In  March,  a  campaign  of  blackmail  and  intimidation  was 
conducted against an investigative journalist. In April a journalist was beaten by employees of the 
State  Oil  Company  while  filming  the  demolition  of  houses.  Investigations  into  these  events  have 
been  launched  but  they  advance  slowly  and  have  not  so  far  produced  any  results.  The  author  of 
photos  and  videos  produced  as  part  of  the  Sing  for  Democracy  campaign  is  allegedly  facing 
hooliganism  charges  and  could  be  jailed  for  up  to  five  years.  The  long-awaited  Draft  law  on 
defamation,  which  (in  consultation  with  the  Venice  Commission)  would  introduce  substantial 
improvements, has not  yet  been  submitted  to  Parliament. A new law banning the street selling of 
newspapers  has  reduced  the  dissemination  of  critical  newspapers  and  alternative  views.  On  the 
positive side, the authorities released a prominent youth activist in May and the President pardoned 
and released a total of 87 detainees, some of whom were journalists and activists. 

Azerbaijan continued its justice reform programme, funded by the EU and other donors. Under the 
Comprehensive  Institutional  Building  Programme  (CIB),  the  government  accepted  in  July  the 

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Institutional  Reform  Plan  on  Human  Rights  and  Rule  of  Law,  Visa  Facilitation  and  Readmission 
issues,  areas  in  which  the  implementation  of  reforms  will  be  funded  mostly  by  the  EU.  A  long-
awaited  Law  on  suspects  and  accused  entered  into  force  in  July.  The  authorities  established  a 
working group of civil society representatives to draft legislation on legal aid. 

The  lack  of  judicial  independence  persisted,  making  access  to  fair  trials  difficult.  Equality  of 
arms,  especially  the  rights  of  the  defence,  remained  problematic  due  to  the  quantitative  and 
qualitative  lack  of  legal  representation,  especially  when  it  concerns  state-appointed  lawyers.  Ill-
treatment,  mostly  during  police  custody,  remained  unpunished.  Enforcement  by  national 
authorities of judgments of the European Court of Human Rights remained a concern. 

Azerbaijan  finalised  its  second  anti-corruption  strategy.  Citizens  are  asked  to  inform  the 
authorities  about  corruption,  notably  via  hotlines.  A  new  National  Anti-Corruption  Action  Plan 
(NACAP)  2012-2015,  approved  in  September,  provides  for  better  legislation  on  criminal 
prosecution,  including  the  preparation  of  a  law  on  personal  protection  of  witnesses  and 
collaborators  in  corruption  cases,  enforcement  rules  and  rules  restricting  the  immunity  of  judges 
suspected of corruption. In addition, the Prosecutor General in January delineated the jurisdiction of 
the Anti-corruption Department (ACD) in pre-investigation and investigation phases, and the scope 
of  legal  aid  in  criminal  matters.  Transparency  International’s  Corruption  Perception  Index  2012 
ranks  Azerbaijan  139th  out  of  174  countries;  this  low  position  reflects  the  country’s  limited 
progress in defeating corruption. 

Concerning democratic control over the armed and security forces, the President promulgated in 
February  the  Law  on  military  duty  and  military  service,  which  abolished  the  corruption-tainted 
military commissariats. Despite this positive development, the Law on Alternative Military Service 
is still pending and corruption in the army remains a concern. 

Finally,  local  democracy  is  an  important  issue  in  a  governance  context  where  little  attention  has 
been  given  either  to  decentralisation  or  to  subsidiarity.  More  attention  should  be  directed  to 
supporting participatory decision-making at local level and helping local authorities to operate in an 
open and inclusive way. 

Other human rights and governance-related issues 

The office of the Human Rights Commissioner (Ombudsman) despite its very broad mandate and 
its keen interest in working with the EU has not yet been able to realise its potential in ensuring the 
effective promotion and protection of human rights. The authorities did not allow the Parliamentary 
Assembly of the Council of Europe (PACE) rapporteur on political prisoners to visit the country 
in  2012  in  this  capacity.  Nonetheless,  the  rapporteur  prepared  a  report  on  political  prisoners  in 
Azerbaijan that was adopted by the PACE Committee on Legal Affairs and Human Rights in June 
2012 and was debated in January 2013 at the PACE Plenary. The Plenary, rejected the report on 23 
January 2013 (125 votes against, 79 in favour and 20 abstentions). On the same occasion, however, 
the  Parliamentary  Assembly  endorsed  a  resolution  on  the  “honouring  of  obligations  and 
commitments  by  Azerbaijan”.  PACE  called  on  Azerbaijan  to  implement  fully  its  commitments 
towards the Council of Europe. 

Concerning  the  prevention  of  torture,  ill-treatment  and  impunity,  the  authorities  submitted  to 
Parliament in June draft amendments to the Criminal Code clarifying the difference between torture 
and  ill-treatment  by  government  agents.  The  independent  NGO  “Committee  against  Torture” 
received  112  appeals  in  the  first  nine  months,  ranging  from  ill-treatment  and  torture  in  prison 
services to police stations, military institutions and orphanages. 

5

 
 
In  terms  of  freedom  of  religion,  most  religious  groups  were  able  to  worship  publicly  without 
government interference. There were reports of targeted raids by the authorities at places of worship 
and detentions of members of Muslim groups considered radical, and of and neo-protestant groups. 
In  October  the  police  clashed  with  activists  who  were  protesting  against  the  ban  on  the  hijab  in 
secondary  schools.    The  same  month,  the  Venice  Commission  and  the  OSCE/ODIHR  concluded 
that the Law on Freedom of Religious Belief contained a series of somewhat restrictive provisions, 
which were not in accordance with international standards. 

Ensuring women's rights as envisaged by the Law on Prevention of Domestic Violence remains a 
challenge  in  the  absence  of  implementation  mechanisms.  Cases  of  indirect  discrimination  against 
women at work were also signalled during the reporting period. 

In terms of children's rights, a presidential Decree was issued in May approving the Rule of state 
control on the implementation of Children's rights was issued and setting up a Commission under 
the  Cabinet  of  Ministers  to  carry  out  periodic  and  ad  hoc  monitoring.  The  number  of  children  in 
institutions remains quite high, with a need to make further progress on alternative care services and 
support for fostering arrangements. 

In  2012,  the  issue  of  services  for  socially  vulnerable  and/or  disabled  people  was  given  due 
attention  at  policy  level,  following  the  implementation  of  the  new  Law  on  Specialised  Social 
Services  that  was  adopted  in  December  2011. The  Ministry  of  Labour  and  Social  Protection 
(MLSP)  coordinated  with  NGOs  to  address  the  needs  of  certain  categories  of  vulnerable 
groups. The  Government  started  piloting  the  use  of  NGOs  as  service  providers,  with  disabled 
children being the target group this year. 

In  the  field  of  labour  and  trade  unions  a  Tripartite  National  Occupational  Health  and  Safety 
Council  was  established  in  January,  with  the  support  of  an  EU-funded  twinning  project.  Since 
January, Azerbaijan has ratified ILO Conventions on maternity protection and workers with family 
responsibilities,  in  line  with  UN  requirements.  Under  an  EU  twinning  project,  Azerbaijan 
formulated  certification  standards  for  working  places  in  accordance  with  international  standards.  
State  control  over  the  signing  of  labour  contracts  has  strengthened,  targeting  illegal  employment 
and non-formalised labour relations. 

Violation of property rights continued to cause concerns. Complaints about forced evictions and 
demolitions  in  breach  of  the  national  legislation  peaked  in  the  run-up  to  the  Eurovision  song 
contest. This resulted in a number of court cases, several of which went to the European Court of 
Human Rights. The State Committee for Property Affairs started work on the online registration of 
property  rights.  The  Rules  for  the  preparation  of  plans  and  instructions  to  move  people 
implementing  the  Law  on  the  purchase  of  land  for  state  needs  were  adopted  by  in  February, 
providing for adequate compensation for anyone affected. Amendments to the law on Procurement 
of land for public use make provision for tax exemption for compensation payments.  In addition, 
the NACAP features some measures to promote transparency and access to information. 

The  protection  of  fundamental  rights  and  freedoms  in  the  Nakhchivan  Autonomous  Republic 
(NAR)  of  Azerbaijan  continued  to  cause  particular  concern.  There  were  reports  of  oppressive 
measures  taken  by  local  authorities  against  human  rights  activists,  journalists  and  entrepreneurs. 
Impunity for violations of fundamental rights and freedoms and for corruption continued to prevail. 
A delegation of Member States’ Embassies and the local EU Delegation visited NAR in February 
2013 and had discussions with various actors with mixed results. 

6

 
 
In  the  field  of  public  administration  reform,  a  State  Agency  for  Public  Services  and  Social 
Innovations was established in July. Its purpose is to provide public services to citizens under the 
"one-stop-shop" principle and optimise E-government services. 

Azerbaijan joined the Open Government Partnership in 2012 and an Open Government  National 
Action Plan 2012-2015 was adopted in September. The NACAP 2012-2015, features the preparation 
of  the  draft  Civil  Service  Code,  which  would  include  rules  for  staff  performance  appraisals  and 
upgraded  ethical conduct rules. 

On cooperation with NGOs, the Presidential Administration initiated a dialogue in July between 
the  government  and  civil  society.  Participants  raised  such  issues  as  state  registration  of  NGOs, 
taxation of NGOs, grants, restrictions for conducting events in the regions, and persecution of civil 
activists. 

Cooperation on foreign and security policy, conflict prevention and confidence building 
measures 

In  2012  Azerbaijan  aligned  with  six  out  of  62  EU  CFSP  declarations  it  had  been  invited  to  support 
(compared to 12 out of 82 in 2011). Azerbaijan thus has the lowest alignment rate among the Eastern 
partners  that  have  been  invited  to  support  such  declarations.  Negotiations  between  Armenia  and 
Azerbaijan to resolve the Nagorno-Karabakh conflict have regrettably slowed down. The Armenian 
and Azerbaijani presidents have not reconvened since the Sochi meeting in January, and the Foreign 
Ministers mostly limited their availability for meetings in the OSCE Minsk Group Co-Chair format 
to separate approximation talks. 

The  security  situation  remained  volatile.  In  June,  there  were  serious  tensions  at  the  Armenian-
Azerbaijani  border  with  a  minimum  of  eight  servicemen  reported  killed.  This  coincided  with  the 
visit of US Secretary of State Clinton to the region. 

The latest dynamics in bilateral relations impacted negatively on trust between the parties and run 
counter to  the  Presidents'  readiness expressed at the  beginning of 2012 to speed up agreement on 
basic principles on the basis of work done thus far. The EU has therefore repeatedly urged restraint 
in actions and public statements, in order not to escalate an already difficult situation. 

September saw the launch of the second phase of the EU-funded civil society programme European 
Partnership for the Peaceful Settlement of the Conflict over Nagorno-Karabakh (EPNK). Its aim is 
to  support  peace-building  efforts  by  facilitating  dialogue  between  civil  society,  the  media  and 
policy-makers. 

3.  

ECONOMIC AND SOCIAL REFORM 

Macroeconomic framework and functioning market economy1 

After  the  halt  in  2011,  GDP  growth  recovered  slightly  fuelled  by  the  expansion  of  the  non-oil 
sector  that  is  mainly  driven  by  fiscal  transfers  from  the  windfall  hydrocarbon  sales.  GDP  growth 
accelerated  to  2.2%  in  2012  benefiting  from  a  nearly  20%  increase  of  investments  and  robust 
household demand. The non-oil industry expanded by 9.7% in 2012, helping to further diversify 

1 Figures on GDP, inflation, trade and employment are generally from Eurostat based on data supplied by the national 
statistical offices; or IMF or Commission Staff estimates, as indicated in the Statistical Annex. When other data sources 
are used these are then indicated. 

7

 
 
                                                 
of the economy. Oil production, down 5%, remained in the contraction mode for the second year in 
a row. 

The  authorities  continued  to  rely  on  hydrocarbon  proceeds  to  finance  investments  in  the  non-oil 
sector. State budget expenditures retained double-digit growth pace in 2012 due to higher transfers 
from the oil wealth fund SOFAZ. The growing reliance on oil export proceeds to finance recurrent 
expenditure  weakens  the  budget  fundamentals  and  raises  concerns  about  the  long-term 
sustainability of the public finances. When SOFAZ transfers are excluded, the state budget recorded 
a deficit of estimated 18.0% of GDP in 2012, which is an increase of one percentage point year-on-
year. 

Despite  an  expansionary  fiscal  policy,  inflation  pressures  subsided,  mainly  due  to  lower  food 
prices  on  global  markets  and  good  local  agricultural  production.  The  average  annual  inflation 
dropped to 1.1% in 2012 from 7.9% in 2011. The current account surplus declined to 22% of GDP 
in  the  first  three  quarters  of  the  year  due  to  reduced  oil  output.  Still,  the  huge  current  account 
surplus enables Azerbaijan to continue building up foreign exchange assets that provide sufficient 
space for countercyclical policies in case of a steep decline of oil prices. The combined international 
assets  of  the  central  bank  and  SOFAZ  rose  to  USD  45.8  billion  (EUR  34.7  billion)  at  the  end  of 
2012 (approximately 67% of GDP). 

In an attempt to strengthen the capital base of the banking system, the Central Bank of Azerbaijan 
increased fivefold the minimum capital requirement for commercial banks. The new regulation will 
enter  into  force  in  2014.  However,  the  banking  sector  remains  negatively  affected  by  high 
provisioning  expenses  and  a  weak  capital  position  of  the  International  Bank  of  Azerbaijan.  The 
state intervened in early 2012 to help the bank to meet the minimum capital requirement. There was 
no  progress  with  the  planned  privatisation  of  the  bank,  which  is  necessary  in  terms  of  improving 
management practices, strengthening competition in the sector and reducing contingent liabilities on 
the state. 

Social situation, employment and poverty reduction  

It  is  expected  that  unemployment  figures  for  2012  will  be  slightly  below  the  5.4%  registered  for 
2011. As of 1 October, national figures indicated that some 37,400 people were officially registered 
as  unemployed  in  Azerbaijan,  42.3%  of  whom  were  women.  The  largest  number  of  unemployed 
were  registered  in  Baku  (13,138  people,  of  whom  649  people  received  unemployment  benefits). 
The average unemployment benefit in Azerbaijan was AZN 208.9. 

The  average  monthly  wage  in  Azerbaijan  for  January  -  September  grew  by  6.9%  against  the 
beginning of 2012 (AZN 363.1). The State Statistical Committee reports that the average monthly 
wage  in  Azerbaijan  for  September  was  AZN388.2.  However,  strong  and  growing  disparities 
between Baku and the regions and between the various socio-economic groups could be a threat to 
social harmony. 

The  State  Labour  Inspection  under  the  Ministry  of  Labour  and  Social  Protection  made  efforts  to 
address  the  problem  of  informal  employment  by  strengthening  its  checks  on  labour  contracts  to 
eliminate illegal employment. Work is underway to establish a labour safety development agency to 
improve the quality of the labour market in the country in accordance with international standards.  

As of August, targeted social assistance per family made up approximately. EUR 110 per person. 
In August, targeted social assistance had been granted to 141,378 families, in total 629,129 eligible 
persons. 58,627 of these families had three or more children, and 12,552 families were made up of 
internally displaced people. Administration of social assistance remained a challenge in terms of 

8

 
 
delivering benefits to beneficiaries and assessing who qualifies. Mandatory insurance for cars and 
real estate was imposed as of 2012. 

4.  

TRADE-RELATED ISSUES, MARKET AND REGULATORY REFORM 

The  EU  is  Azerbaijan's  main  trading  partner  accounting  for  42.5%  of  its  trade  volume  in  20112. 
Bilateral trade flows decreased and during the first eleven months of 2012 amounted to EUR 15.3 
billion.  EU  exports  to  Azerbaijan  consisted  mainly  of  machinery  and  transport  equipment.  EU 
imports from Azerbaijan   consisted mainly of mineral fuels. 

Although  Azerbaijan  continued  regular  negotiations,  there  was  only  limited  progress  in  WTO 
accession in 2012. In November, Azerbaijan submitted revised offers on goods and services. 

The new Customs Code entered into force in January 2012. In coordination with other institutions, 
the  State  Customs  Committee  (SCC)  adopted  normative  acts  (secondary  legislation)  aimed  at 
implementing  the  new  Customs  Code.  Draft  rules  on  determination  of  preferential  and  non-
preferential  origin  of  goods  stipulated  in  the  articles  of  the  Customs  Code  were  submitted  to  the 
Cabinet of Ministers. The SCC approved a new Code of ethical behaviour for the customs officials 
in January 2012. 

In the sanitary and phyto-sanitary (SPS) field, Azerbaijan further worked towards approximation 
with WTO-SPS and Codex Alimentarius rules. It strengthened laboratories including by accrediting 
two  central  laboratories  under  ISO  standards  and  by  refurbishing  and  equipping  five  regional 
veterinary  laboratories.  In  2012  Azerbaijan  became  member  of  the  European  and  Mediterranean 
Plant  Protection  Organisation.  In  November  2012,  the  Food  and  Veterinary  Office  (FVO)  of  the 
European Commission carried out a mission to Azerbaijan on aflatoxin contamination in hazelnuts 
to verify the implementation of an action plan addressing the issues identified in 2009. 

In the area of technical regulations, and following the decree of April 2012, a number of services 
were  established  within  the  Committee  on  Standardisation,  Metrology  and  Patents:  State  Control 
Service  for  Technical  Regulation  and  Standardisation;  State  Metrology  Service;  and  State 
Accreditation Service. 

The World Bank’s ‘Doing Business 2013’ annual report noted that the business climate benefitted 
from  easy  property  registration  in  Azerbaijan.  Nevertheless,  compared  to  the  previous  year, 
Azerbaijan  fell  slightly  to  67th  place  (out  of  185)  in  the  overall  World  Bank’s  ease  of  doing 
business ranking. State-driven investments largely prevail over private, and the monopolisation of 
the  economy  remains  a  strong  deterrent  to  foreign  direct  investment.  The  National  Fund  for 
Entrepreneurship  Support  funded  a  number  of  projects.  However,  procedures  for  granting  loans 
should be simplified. 

In  April  2012  the  Ministry  of  Economic  Development  launched  an  internet  portal  setting  out 
information  on  business  licences  and  permits  issued  by  central  and  local  executive  bodies  to 
facilitate company establishment and to increase awareness among citizens and entrepreneurs. 

The  role  of  the  Central  Bank  of  Azerbaijan  remained  unchanged.  In  July  Azerbaijan  raised  the 
minimum  capital  requirements  to  EUR  50  million  per  bank.  At  present,  less  than  25%  of  the 
operating banks meet this requirement. Azerbaijan approved new reporting rules on transactions in 
the securities market and rules on conducting activities on asset management in the security market. 
Azerbaijan  should  do  more  to  improve  its  legal  framework  and  the  regulatory  and  institutional 

2 Data for 2012 was not available at the time of writing. 

9

 
 
                                                 
capacities  of  the  State  Committee  for  Securities  to  supervise  the  capital  market  and  financial 
service providers. A Twinning Project was launched in November, seeking to approximate the legal 
and  regulatory  framework  for  the  securities  market  in  Azerbaijan  to  the  EU  acquis  and  to  build 
capacity in the State Committee for Securities. 

Other key areas 

Azerbaijan  amended  a  Tax  Code.  Private  universities  were  exempted  from  VAT  payment.  The 
Ministry of Taxes (MoT) launched the e-registration of legal entities, with a view to reducing the 
costs and number of procedures for starting a business. It also launched a new Two-Way Messaging 
Service in August, which allows  tax offices to send information about legal requirements and tax 
liabilities to taxpayers. A twinning supported the MoT in running the new Computer Assisted Audit 
system.  Azerbaijan  was  negotiating  agreements  for  avoidance  of  double  taxation  with  Slovakia, 
Portugal and Malta. 

The  Competition  Code  has  still  not  been  adopted.  A  new  draft  was  submitted  to  the  Ministry  of 
Economic Development prior to its third reading in the Parliament. 

In  the  field  of  intellectual  property  rights  (IPR),  Azerbaijan  made  some  progress  with  the 
adoption, in May, of the Law on Enforcement of IPR and on combating piracy. The Law aims to 
improve the enforcement infrastructure and brings Azerbaijan's legislation closer to conformity with 
the  WTO  TRIPS  and  the  EU  Enforcement  Directive.  The  Copyright  Agency  submitted  proposals 
for amendments to the Civil Procedural Code, the Criminal Code, the Criminal Procedure Code and 
the  Code  of  Administrative  Offences.  A  Centre  for  provision  of  intellectual  property  rights  was 
established under the Copyright Agency. 

An  EBRD/UNCITRAL  initiative  carried  out  a  legal  assessment  of  the  public  procurement 
legislation  in  Azerbaijan  against  the  2011  UNCITRAL  Model  Law  on  Public  Procurement.  The 
draft report includes recommendations for modernising the legislative framework so as to bring it 
up to the best international standards. 

Azerbaijan  made  significant  progress  in  aligning  its  statistical  classifications  to  the  European 
standards. The State Statistical Committee of Azerbaijan started to implement the European System 
of National Accounts 2010. Following an EU assessment of the statistical system in 2010 and the 
revision of the Statistical Law in November 2011, Azerbaijan established an internal coordinating 
committee for quality management to launch a quality assurance framework. 

In  the  area  of  Public  Finance  Management  (PFM),  Azerbaijan  made  some  progress  in 
implementing  of  the  Ministry  of  Finance  (MoF)  Action  Plan.  The  presentation  of  the  State  and 
Consolidated Budget 2012 was published on the Ministry’s website. This is a first step towards an 
improved  budget  statement  providing  official  information  on  the  main  fiscal  and  expenditure 
policies and indicators for 2012 and on relevant macroeconomic developments and forecasts. The 
2012  Public  Investment  Programme  was,  for  the  first  time  ever,  published  on  the  MoF  website, 
albeit  in  a  summary  format.  Azerbaijan  adopted  action  plans  on  anti-corruption  and  on  the  Open 
Government Initiative, both covering 2012-2015. They are concerned with such issues as corruption 
prevention, transparency, accountability and oversight. The EU and Azerbaijan cooperated on PFM 
reforms  under  the  ongoing  budget  support  programmes,  and  specifically  in  the  area  of  internal 
audit, through a twinning project in support of Public Internal Finance Control and by supporting 
the civil society monitoring of PFM reform. However, the dialogue on PFM encountered a serious 
setback when the authorities did not approve the sector budget support programme in public finance 
policy. The resumption of a dialogue on PFM and budget support programmes is subject to a timely 

10

 
 
development  of  a  credible  and  comprehensive  multi-annual  Public  Finance  Management  Action 
Plan. 

In the field of external audit, the Chamber of Accounts drew up a Strategic Development Plan for 
2012-2014.  This  supports  the  application  of  international  standards  on  national  accounting, 
financial audit, performance audit and human resources. 

No progress was noted in the areas of enterprise policy and movement of capital. 

5.  

COOPERATION ON JUSTICE, FREEDOM AND SECURITY 

The  EU  and  Azerbaijan  decided  to  establish  a  Mobility  Partnership  and  talks  between  the  two 
sides started. 

Negotiations  on  visa  facilitation  and  readmission  agreements  with  Azerbaijan  began  in  March, 
with a second round in May-June and a third round in November, focusing primarily on the broad 
scope of such agreements. 

Final  drafts  of  the  Migration  Code  and  the  Readmission  Strategy,  which  take  into  consideration 
international practice and EU legislation, were submitted to the Cabinet of Ministers. 

The State Border Service continued bilateral negotiations with Frontex, which visited Azerbaijan in 
August  to  discuss  the  signing  of  a  Working  Agreement  and  expansion  of  activities  within  the 
International Conference on Border Affairs. The  Working Arrangement was initialled in October. 
Within  the  EU-funded  South  Caucasus  Integrated  Border  Management  Programme  (SCIBM),  the 
Azerbaijani State Border Guard Service and the Georgian Ministry of Internal Affairs prepared an 
agreement on how their border representatives would operate. 

Azerbaijan continued its cooperation with INTERPOL and within the CIS in terms of combating 
organised  crime.  The  Secretary  General  of  INTERPOL  visited  the  country  in  September. 
Azerbaijan signed the INTERPOL E-Passport Initiative in 2010, but has still not implemented it. As 
a result Interpol officials on duty still do not have visa-free access to the country. 

Progress was noticed on money laundering as in July the Council of Europe Committee of Experts 
on  the  Evaluation  of  Anti-Money  Laundering  Measures  and  the  Financing  of  Terrorism 
(MONEYVAL) lifted formal reporting regime in respect of Azerbaijan, reflecting the progress the 
country had made in meeting its recommendations. 

Azerbaijan  continued  to  implement  the  National  Action  Plan  on  the  Fight  against  Trafficking  in 
Human Beings (2009-2013) which included training schemes for enforcement agencies. 

In the fight against terrorism, Azerbaijan reported having broken up some terrorist groups. There 
were  some  cyber  attacks  posing  serious  threats  to  the  country's  IT,  media  and  financial  sector.  It 
ratified  the  Council  of  Europe  Convention  on  Cybercrime  in  2009,  but  has  not  yet  signed  its 
Additional  Protocol  concerning  the  criminalisation  of  acts  of  a  racist  and  xenophobic  nature 
committed  through  computer  systems.  Azerbaijan  organised  forums  on  fighting  cyber  crimes. 
Legislation is still based on the principles of regulation and investigation and less on prevention. 

With  regard  to  the  fight  against  drugs  trafficking,  Azerbaijan  continued  to  implement  the  five 
year  action  programme  (2007-2012)  to  combat  drug  addiction.  The  emphasis  was  on  law 
enforcement  and  cooperation  with  regional  CIS  partners.  Azerbaijan  developed  cooperation  with 
the  Central  Asian  Regional  Information  and  Coordination  Centre  (CARICC)  initiated  by 

11

 
 
UNODOC.  The  number  of  reported  drug  smuggling  cases  increased  significantly.  Azerbaijan 
started work on formulating a National Strategy and an action plan for combating illegal trafficking 
in narcotics. The number of government-sponsored programs for tackling drug consumption is still 
low,  particularly  among  youngsters.  In  April,  the  EU  held  a  Dialogue  on  Drugs  with  Azerbaijan, 
Georgia,  the  Republic  of  Moldova  and  Ukraine  in  Brussels.  Azerbaijan  attended  the  first  Reitox 
weekend of the European Monitoring Centre for Drugs and Drug Addiction (EMCDDA) in Lisbon 
in May. It expressed interest in cooperating with the EMCDDA and in establishing a national drug 
monitoring scheme. 

No significant progress can be recorded in the field of judicial and law-enforcement cooperation, 
and a number of Hague conventions in the field of international legal cooperation and litigation, as 
well as the protection of children, remain unsigned. 

6. 

TRANSPORT,  ENERGY,  ENVIRONMENT,  THE  INFORMATION  SOCIETY,  RESEARCH  AND 
INNOVATION 

In  transport,  Azerbaijan  made  progress  in  issuing  digital  tachographs,  as  required  under  the 
European  Agreement  concerning  the  Work  of  Crews  of  Vehicles  engaged  in  International  Road 
Transport (AETR). Through a twinning project the EU helped Azerbaijan to introduce the EU and 
international maritime safety and security standards, including the relevant IMO conventions, and to 
strengthen the capacity of the State Maritime Agency. The launching of negotiations on a Common 
Aviation Area Agreement in January 2013 was a major development in the EU-Azerbaijan transport 
relations. This agreement, once concluded and implemented, will strengthen economic, people-to-
people  and  tourism  contacts  between  the  EU  and  Azerbaijan.  Negotiations  will  be  continued  in 
2013 and based on progress, could in principle be concluded in 2013. 

Azerbaijan modernised its railway infrastructure; the construction of the Baku-Tbilisi-Kars railway 
advanced  in  2012.  Construction  began  on  a  new  and  high-capacity  port  and  a  logistics  centre. 
Azerbaijan is encouraged to exploit its full potential as a transit country by becoming a contracting 
state  to  the  Convention  concerning  International  Carriage  by  Rail  (COTIF)  and  joining  the 
Intergovernmental Organisation for International Carriage by Rail (OTIF). 

In the field of  energy, Azerbaijan dynamically continued cooperating with the EU on developing 
the Southern Gas Corridor in line with the 2011 Joint Declaration signed by Presidents Barroso and 
Aliyev. Negotiations on exports from the Shah Deniz II gas field (an enabler of the Southern Gas 
Corridor)  progressed.  In  February,  the  Shah  Deniz  II  consortium  selected  the  Trans-Adriatic 
Pipeline  (Italy-Albania-Greece)  as  the  sole  pipeline  option  for  the  Italian  leg  of  the  European 
evacuation route. In June, the consortium chose Nabucco West (from the western Turkish border to 
Baumgarten, Austria) as the potential pipeline for Central and Eastern Europe. A final decision on 
investments and the export route is officially scheduled for autumn 2013. For gas transport through 
Turkish territory, Azerbaijan and Turkey signed and ratified landmark agreements to construct the 
Trans-Anatolia Gas Pipeline. Preparations for the construction of the pipeline are underway. 

Trilateral  EU-Azerbaijan-Turkmenistan  negotiations  on  a  trans-Caspian  gas  pipeline  system, 
designed  to  feed  additional  supplies  from  Turkmenistan  into  the  corridor,  continued  intensively. 
Azerbaijan voiced its readiness to ensure the transit of Turkmen gas. 

Azerbaijan continued to supply gas to Georgia, Turkey, Iran (swaps) and Russia. Oil exports from 
Azerbaijan  decreased  as  domestic  oil  production  declined,  while  Turkmenistan  increased  its  oil 
transit  via  the  Baku-Tbilisi-Ceyhan  pipeline.  Negotiations  to  ship  Kazakh  oil  via  this  pipeline 
continued.  Feasibility  studies  continued  for  the  development  of  the  Azerbaijan-Georgia-Romania 

12

 
 
Interconnection  (AGRI)  project,  aiming  to  export  liquefied  natural  gas  (LNG)  through  the  Black 
Sea.  Negotiations  with  Ukraine  on  possible  Azerbaijani  LNG  deliveries  continued.  Azerbaijan's 
State Oil Company (SOCAR) consolidated its regional and international position. It acquired ESSO 
Switzerland, further expanded on the downstream markets (Romania, Ukraine) and developed plans 
to construct an oil refinery in Kyrgyzstan. The development of new hydrocarbon fields made good 
progress.  The  EU’s  energy  reform  support  programme  played  a  significant  role  in  catalysing  the 
further development of renewable energy sources. Under this programme, the government finalised 
a  draft  of  a  new  energy  sector  strategy;  and  mid-term  action  plans  and  secondary  legislation  on 
energy efficiency and the increased use of renewable energy. Azerbaijan restructured its institutions 
dealing  with  renewable  energy  and  energy  efficiency.  It  continued  to  construct  renewable  energy 
installations including in public buildings such as schools and hospitals. A National Strategy on the 
use  of  alternative  and  renewable  energy  sources  2012-2020  remained  in  a  preparatory  phase. 
Implementation of the EU-Azerbaijan Memorandum of Understanding on a strategic partnership in 
the field of energy progressed through several actions, in particular through an EU-Azerbaijan wind 
energy workshop held in March in Baku. 

On  climate  change,  Azerbaijan  signed  up  in  June  to  the  Beijing  Amendment  to  the  Montreal 
Protocol  on  Substances  that  Deplete  the  Ozone  Layer  and  a  corresponding  law  was  approved. 
Azerbaijan participated in preparations for the forthcoming regional EU Clima East project (EUR 
18 million) that will be implemented in the period 2013-2016. The Regional Environmental Centre 
for the Caucasus (REC-C) continued implementing an EU-funded project on adaptation to climate 
change.  Azerbaijan  is  encouraged  to  build  capacity  and  engage  in  the  new  carbon  market 
mechanism to be developed following the 17th and 18th sessions of the United Nations Framework 
Convention on Climate Change Conference of the Parties. Azerbaijan is also encouraged to make 
additional efforts to fully implement the Cancun and Durban agreements and in particular devise a 
low-carbon development strategy.  Azerbaijan is also encouraged to pledge a nationally appropriate 
mitigation action. 

As regards the environment, Azerbaijan introduced the Euro-3 standard for vehicle emission limits 
as of July 2012. As a result, the State Customs  Committee  imposed a ban on imports  of  vehicles 
that  do  not  meet  Euro-3  requirements.  In  the  context  of  the  Aarhus  Convention,  the  Public 
Ecological Council, consisting mainly of NGOs and public representatives, was established under 
the  Ministry  of  Ecology  and  Natural  Resources.  The  Government  presented  a  draft  law  to 
Parliament on the application of new procedures for environmental impact assessments. Azerbaijan 
is  encouraged  to  strengthen  its  environmental  legislation  and  administrative  capacity,  to  apply 
procedures  for  environmental  impact  assessment  consistently  and  to  pay  particular  importance  to 
public participation. 

REC-C  continued  its  activities.  Its  financial  and  institutional  sustainability  of  REC-C  still  need 
strangthening.  

In the field of civil protection, Azerbaijan continued to participate in the EaP flagship project on 
prevention,  preparedness  and  response  to  natural  and  man-made  disasters  (PPRD  East).  The 
development of Electronic Regional Atlas which is a part of the programme did not progress much 
due to difficulties with the accessibility of the data. Azerbaijan is encouraged to take advantage of 
the guiding document on Risk Assessment Policy for the EaP region produced under the PPRD East 
programme.  

Azerbaijan  is  among  the  168  governments  that  adopted  the  "Hyogo  Framework  for  Action: 
Building  the  Resilience  of  Nations  and  Communities  to  Disasters",  but  work  on  Disaster  Risk 
Reduction  is  still  only  at  the  beginning  and  it  will  require  considerable  further  effort  to  develop 
capacities and processes. 

13

 
 
Concerning  the  information  society,  Azerbaijan  expanded  the  coverage  of  broadband  internet 
services.  The  Ministry  of  Communications  announced  that  the  level  of  internet  penetration  in  the 
capital  had  reached  approximately  90%  and  over  60%  in  the  regions.  An  IT  Development  State 
Fund  was  created  in  March.  Its  purpose  is  to  promote  activity  in  the  ICT  sector,  expand  the 
introduction  of  innovations  and  scientific  research.  Azerbaijan  approved  rules  for  the  use  of 
emergency  communications  and  established  a  Special  Communication  and  Information  Security 
State Agency. Regarding e-Government, Azerbaijan established a State Agency for Public Service 
and Social Innovations, responsible for public electronic services. 

The  State  Committee  on  Standardisation,  Metrology  and  Patents  approved  new  standards  on 
information  technology  —  security techniques  and  security  methods  —  which  came  into  force  in 
June.  Azerbaijan  actively  participated  in  the  implementation  of  the  Trans-Eurasian  Information 
Super  Highway  project  connecting  Europe  with  the  Asia-Pacific  region.  The  country  will  also  be 
connected to the European-Persian Express Gateway (EPEG), which will run under the Caspian Sea 
from Iran to Russia. Construction of the main route of the Azerbaijani segment of the EPEG line 
was completed, and the network was being tested.  

On audiovisual policy, the State Committee on Standardisation, Metrology and Patents started the 
phasing-in  of  three  patents  —  digitalisation,  e-governance  application  and  e-services  —  for 
intellectual property rights registration and protection. The system is designed to expand scientific 
research,  inventions,  increase  innovative  products  and  develop  the  electronic  technology  market. 
Promotion  of  media  freedom  remained  a  challenge  and  no  visible  improvement  was  noted 
compared to the previous years. 

Concerning  research  and  innovation,  two  more  projects  under  the  EU’s  Seventh  Framework 
Programme  for  Research  and  Technological  Development  (FP7)  focusing  on  Azerbaijan  were 
approved. They support closer Azerbaijani research collaboration with the European Research Area 
(ERA)  and  cover  such  topics  as  nanotechnology,  energy  and  new  materials.  This  increased  the 
number of on-going FP7-funded projects that include Azerbaijani partners to thirteen. The total EU 
contribution  to  these  projects  amounts  to  EUR  22  million,  more  than  EUR  1  million  of  which  is 
given to the twelve participating Azerbaijani institutions. 

7. 

 PEOPLE-TO-PEOPLE CONTACTS, EDUCATION AND HEALTH 

Azerbaijan  continued  its  efforts  to  make  much  needed  improvements  to  its  education  system,  in 
spite  of  a  relatively  low  education  budget.  National  policies  continued  to  develop,  but 
implementation capacities at the level of education providers and supporting institutions remain an 
important  bottleneck;  salaries  for  teachers  remained  low.  The  part  the  education  system  plays  in 
diversifying the economy is too limited to generate real medium-term changes in the labour market. 
With  the  development  of  a  National  Qualifications  Framework,  stronger  quality  assurance 
procedures,  more  relevant  occupational  standards  and  new  curricula,  a  more  active  role  in  the 
Bologna process and a planned extension of the secondary education from eleven to twelve years, 
Azerbaijan  is  aligning  its  education  system  with  international  and  European  trends.  Funding 
arrangements  for  higher  education  institutions  changed,  linking  university  funding  to  pro  capita 
participation  and  student  choices.  Azerbaijan  worked  also  to  boost  academic  mobility  under  its 
revised  State  Programme  on  Youth  Education  Abroad  in  2007-2015.  Azerbaijan  established  a 
database on specialised secondary educational institutions and sought to enhance its e-service so as 
to allow for electronic recognition of degrees from foreign universities. 

As  far  as  participation  in  EU  higher  education  programmes  is  concerned,  five  projects  from 
Azerbaijan  were  selected  under  Tempus  IV.  They  include  student  support,  the  establishment  of 

14

 
 
European  Computer  Driving  Licence  (ECDL)  test  centres,  the  development  of  a  training  network 
for better education in energy efficiency, and the setting up of EU studies, as well as new bachelor 
and  master  programmes  in  sustainable  tourism  management.  Azerbaijan  benefited  from  three 
scholarships for Erasmus Mundus joint master courses; there were also 301 grants for short-term 
mobility organised within a university consortium. Three institutions and one individual researcher 
participated  in  Marie  Curie  Actions  to  support  researchers'  training,  mobility  and  career 
development. 

Azerbaijani  young  people  and  youth  organisations  continue  to  benefit  from  the  Youth  in  Action 
Programme.  For  2012  and  2013,  the  ENPI  provides  additional  funds  to  boost  cooperation  among 
young  people,  youth  workers  and  youth  organisations  from  the  EU  and  the  Eastern  Partnership 
countries.  In  2012,  the  newly  created  Eastern  Partnership  Youth  Window  within  the  programme 
enabled a significantly higher number of young Azerbaijanis to take part. 166 projects were selected 
in 2012 involving 564 young Azerbaijanis. 

Cultural  exchange  and  cooperation  between  Azerbaijan  and  the  EU  Member  States  expanded 
throughout the year, with a number of important exhibitions and events. 

Azerbaijan continued, with international donors, to pursue health sector reform. The average salary 
of doctors in public hospitals remained low, and the level of out-of-pocket payments is relatively 
high. Azerbaijan made good progress in addressing maternal and child health and in upgrading rural 
health  centres.  There  was  a  further  increase  in  health  expenditure.  Azerbaijan  is  focusing  on 
building  or  renovating  medical  facilities  and  is  working  towards  strengthening  regional  medical 
institutions by hiring additional staff and developing medical staff qualifications. It strengthened the 
information  system  on  infectious  diseases  and  epidemiological  surveillance.  More  attention  is 
needed to improve the quality of services and to ensure equitable access to care. 

15