Modern challenges of oil producing countries and the ways for establishing a non-oil dependent economy in Azerbaijan (Comparative approach)

Abstract

This paper deeply analyses Azerbaijan’s oil business and the level of its hydrocarbon dependence. It examines the ways and methods of reducing oil dependence in Azerbaijan’s economy and analyses the modern challenges of oil producing nations in their oil business. Many comparisons and determinations are shown out of the oil producing countries’ practices for restructuring their economy to diminish the hydrocarbon dependence. The comparisons statistically examine the economic, financial and other fiscal indications. There is also an examination of the institutions related to this oil business as OPEC (The Organization of the Petroleum Exporting Countries), Sovereign Wealth Find (SWF), State Oil Company of Azerbaijan (SOCAR) and other authorities. The purpose of this research is to show the practical reasons and the ways to smoothly shift Azerbaijan from economic oil dependence into a prosperous and non-oil dependent nation. The study is in essence a comparative analysis of the oil-rich countries’ economic dependency on oil and the implied methods by the countries for shifting these nations into long-term economic prosperity. It also takes a look at the economic and socio-political situation of the economic structures whose import and export balances are regulated mainly by the oil business.