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Analysis Azerbaijan Caucasus

Development of digital economy should be one of the priorities for Azerbaijan in pandemic period

Dr. Gubad Ibadoghlu, Senior Analyst, Economic Research Center

Recently, the EU has been active in establishing a number of initiatives concerning the enhancement of IT sector in Eastern Partnership countries.

Thus, EU4Digital launched a new activity to support women mentorship programs in the tech sector in the EaP countries. StrategEast has interviewed experts from the EaP countries. Here are the answers from the expert on Azerbaijan.

Do you consider such programs to be timely in the post-pandemic period? 

A new activity of  EU4Digital  to support women mentorship programs in the tech sector in the EaP countries may be considered appropriate for Azerbaijan.  This can be especially beneficial during the pandemic. However, the biggest problem with Azerbaijan’s ICT sector is the lack of competition there. According to official data, about 65 percent of the country’s Internet market is controlled by state providers, such as Aztelekom, Baktelecom, and Azercell. The share of these three companies in the retail internet market is over 65%. Due to the state’s monopoly on the Internet market, its tariffs are high, and its quality is low. Therefore, market liberalization through the privatization of state-owned companies is even more critical.

Have you noticed the rising need for digital technologies to support the response to the pandemic consequences in your country?

I think the role of technology will increase in the post-pandemic period. İn this context, the digital economy’s development should be one of the priorities for the Azerbaijan economy’s modernization.  E-Services (including e-Commerce) can play an essential role in ensuring a faster and secure digital transition. In Azerbaijan, men still occupy the highest positions in the IT sector. Therefore, increasing women’s access to the digital economy and the digital industry can contribute to gender equality in the IT sector.

Learn more about digitalization processes amid pandemic in Armenia, Georgia, Moldova, Ukraine