Azerbaijan Republic

Chairwoman of State Students Admission Commission

Coordinator of the National Information Communication Technology Strategy

(NICTS) Project

National Vision of the ICT Development in the Republic of Azerbaijan and perspectives of the growth of the export potential

(Vilnius, December 2002)

Dr. Maleyka Abbaszade

Human Development Index in Azerbaijan and its component indices Human Development Index in Azerbaijan and its component indices

3 14829242 8501 8501 7401 67515901 6101 9802 540GDP per capi.GDP per capi.

0.5760.5630.5600.5100.4770.4700.4620.4640.4980.540GDP IndexGDP Index

0.8950.8950.8800.8780.8710.8680.8800.8800.8800.870Education IndexEducation Index

0.7820.7800.7700.7720.7700.7530.7350.7430.7420.745Life expectancy IndexLife expectancy Index

0.7510.7460.7380.7720.7060.6970.6920.6960.7070718HDIHDI

20012001200020001999199919981998199719971996199619951995199419941993199319921992

Dynamics of human development index in Azerbaijan and selected countries

Dynamics of human development index in Azerbaijan and selected countries

-2.50.698+0.40.683UzbekistanUzbekistan

-2.40.699+3.50.704MoldovaMoldova

-0.30.714+1.20.688IranIran

-0.30.714+3.50.704JordanJordan

+2.60.735+5.30.716TurkeyTurkey

+3.10.738+1.80.692Azerbaijan

+7.80.772+14.00.775BulgariaBulgaria

+8.20.775+14.40.778RussiaRussia

+10.30.790+13.50.772MexicoMexico

+15.80.829+21.90.829HungaryHungary

+22.10.874+25.40.853PortugalPortugal

+28.60.921+33.50.908Austria Austria

+29.00.924+34.20.913FranceFrance

% difference from world average HDI% difference from world average HDI

HDIHDI% difference from world average HDI% difference from world average HDI

HDIHDICountriesCountries

1999199919951995

0,99Computer Center for Training and Information and Telecommunication Services

10BP project for Enterprise Resource Planning implementation

0.575 (1-st stage)0.7 (2-nd stage)

Capacity Building and Data Transmission Network Implementation for the State Customs Committee

5National Bank Automatic Banking Check Clearance Project

15State Oil Company Computer Automation Project

15Tax Systems Project

1,2“National Information Communication Technology Strategy” Project

Information Technology Projects

15BP project laying fibre optic cable along Baku-Tbilisi-Ceyhan pipeline

28EBRD project Trans Asia Europe fibre optic cable highway

15 (1-st stage)20 (2-nd stage)

TRACECA project on supply of fibre optic cable system for signaling for the railways of Caucasian Countries

870Investments on modernization of the communication system (Upgrade of Digital Switch for IP-telephony, ISDN, Broadband network, Frame Relay, ATM, new services SDH, ADSL, etc.) till 2005

Telecommunication Projects

Azerbaijan: Main ICT projects (in millions USD)Azerbaijan: Main ICT projects (in millions USD)

Source: ITC Technology Team Mission Report, 2002

Azerbaijan: GDP Growth 1996-2002Azerbaijan: GDP Growth 1996-2002

-1,3

5,8

10

7,4

11,19,9 10,3

-2

0

2

4

6

8

10

12

1996 1997 1998 1999 2000 2001 2002(Oct.)

GDP (percentage growth)

The Republic of Azerbaijan – Structure of Foreign Direct Investments

(FDI) by Sectors (Value: US $ million)

The Republic of Azerbaijan – Structure of Foreign Direct Investments

(FDI) by Sectors (Value: US $ million)

116.3452.7429.641.139.9--32Other

131.917.338.637.121.215.12.64Transport & Communications

249.116.655.5100.374.08.51.245Trade & Service

34431.028.9153.4104.2233.525Construction

3288.5546.1544.5891.8780.1416.2139.822Oil Industry

3700.4296.5622.3990.1871.7472.4147.444Industry

Total2000199919981997199619951994Sector/Year

Source: Ministry of Economic Development, June 2002

On February 7, 2002 the joint project "National Information Communication Technology Strategy (NICTS) development and its initial implementation in the Republic of Azerbaijan" between the Government of Azerbaijan and UNDP was signed.

The aim of the Strategy: Via wide application of information-

communication technologies promote democracy and build

information society in the country.

www.nicts.az

Creation and development of legislative Creation and development of legislative

basis of the information society.basis of the information society.

Development of human factor in the society, ensuring Development of human factor in the society, ensuring

profitable conditions in getting education and medical profitable conditions in getting education and medical

services for citizens. Creating services for citizens. Creating ffavorable environment to avorable environment to

ensure civil rights and social institutions for free obtaining, ensure civil rights and social institutions for free obtaining,

distributing and using of information.distributing and using of information.

Realisation of effective, transparent and operated state Realisation of effective, transparent and operated state

administration and local self-government, buildingadministration and local self-government, building

e-government, forming e-commerce and its development.e-government, forming e-commerce and its development.

Main goals of the strategy

www.nicts.az

Strengthening country's economical, social and Strengthening country's economical, social and

intellectual potential, building competitive economy, creating intellectual potential, building competitive economy, creating

and development of the information and knowledge market.and development of the information and knowledge market.

Preserving national historical, literary and cultural heritage Preserving national historical, literary and cultural heritage

of the country in digital form of the country in digital form and informing the world and informing the world

community about themcommunity about them..

Forming advanced information and communication Forming advanced information and communication

infrastructure of the society, expanding information and infrastructure of the society, expanding information and

communication services.communication services.

Main goals of the strategy

www.nicts.az

Ensuring country's information security.Ensuring country's information security.

Integrating the country into Integrating the country into the world electronic information the world electronic information

communitycommunity..

Introduction and development of new information and Introduction and development of new information and

communication technologies, creating national software, communication technologies, creating national software,

developing the production of science intensive productions developing the production of science intensive productions

(ICT-industry), bridging the digital divide.(ICT-industry), bridging the digital divide.

Main goals of the strategy

Provision of information need of the citizens, provision of overall Provision of information need of the citizens, provision of overall

development of the person, promotion of intellectual potential of the development of the person, promotion of intellectual potential of the

country.country.

Creation of the favorable conditions for the building of information Creation of the favorable conditions for the building of information

society on the base of development of transparent and guided society on the base of development of transparent and guided

environment for the state structures and municipalities;environment for the state structures and municipalities;

Strengthening of economic potential of the country through Strengthening of economic potential of the country through

introduction of information-communication technologies.introduction of information-communication technologies.

Preservation and propaganda of the national digital historic, Preservation and propaganda of the national digital historic,

literary and cultural heritage of the people.literary and cultural heritage of the people.

Strategy determines the following priorities:

www.nicts.az

Improvement of the education system by wide use of ICT, Improvement of the education system by wide use of ICT,

preparation of the national personnel on information-preparation of the national personnel on information-

communication technologies and provision of sufficient ICT-communication technologies and provision of sufficient ICT-

literacy.literacy.

Use of ICT in socially oriented spheres (healthcare, social Use of ICT in socially oriented spheres (healthcare, social

security).security).

Development of telecommunications infrastructure.Development of telecommunications infrastructure.

Forming e-government and its development.Forming e-government and its development.

The main directions of the activities in the sphere of ICT are:

www.nicts.az

Creating legislative basis for the informatization.Creating legislative basis for the informatization.

Building the electronic economy and its development.Building the electronic economy and its development.

Forming national information resources and their Forming national information resources and their

development.development.

Strengthening scientific, technical and industrial potential in Strengthening scientific, technical and industrial potential in

the sphere of information and communication technologies.the sphere of information and communication technologies.

Ensuring country's information security and protection of Ensuring country's information security and protection of

personal data.personal data.

The main directions of the activities in the sphere of ICT are:

www.nicts.az

to estimate the state of the ICT industry in the country;to estimate the state of the ICT industry in the country;

to consolidate the opinions and statements of all the to consolidate the opinions and statements of all the

participants on the potential of Azerbaijan in ICT sector;participants on the potential of Azerbaijan in ICT sector;

to determine opportunities for integration of the country in to determine opportunities for integration of the country in

global information infrastructure and designate the contours global information infrastructure and designate the contours

of the growth of the global ICT-markets;of the growth of the global ICT-markets;

to determine the directions of the national export policy for to determine the directions of the national export policy for

the ICT industry and E-Business development within the the ICT industry and E-Business development within the

framework of the national strategy in ICT sphere.framework of the national strategy in ICT sphere.

Information for national participants of ICT-processes

State Computerized System "Elections" State Computerized System "Elections" ((data transmissiondata transmission, , visualization of the elections process and resultsvisualization of the elections process and results))

10-year experience in applying ICT for mass processes of 10-year experience in applying ICT for mass processes of

evaluating knowledgeevaluating knowledge ( (unified entrance examinationunified entrance examination, ,

examination for judgesexamination for judges, , examination for public prosecutorsexamination for public prosecutors, ,

examination for government personnelexamination for government personnel))

"Within the framework of the reforms of the courts in "Within the framework of the reforms of the courts in

the Republic, ICT was applied in selection of the the Republic, ICT was applied in selection of the

judges, aptitude of the judges were determined by the judges, aptitude of the judges were determined by the

tests. ICT is used for the testing attorneys, state tests. ICT is used for the testing attorneys, state

employeesemployees..

Regional Academy was created with the aim to Regional Academy was created with the aim to

prepare certified specialists in ICT. A number of prepare certified specialists in ICT. A number of

regional ICT training units is created in the Republic regional ICT training units is created in the Republic

with assistance of international organizations.with assistance of international organizations.

Information system “Frontier: departure-arrival” is built and opportunity to Information system “Frontier: departure-arrival” is built and opportunity to

apply ICT in frontier points is provided. With the aim of improvement of apply ICT in frontier points is provided. With the aim of improvement of

management and procedures in Customs system “Network of the transfer of management and procedures in Customs system “Network of the transfer of

data and automated system of control” is built.data and automated system of control” is built.

Project of electronic system of inter-bank payments in Project of electronic system of inter-bank payments in

real regime is realized in bank system of Azerbaijan.real regime is realized in bank system of Azerbaijan.

Monument point Monument point ISTIST of the Program of European community is created in of the Program of European community is created in

Azerbaijan. Azerbaijan participates in 3 projects of IST: Azerbaijan. Azerbaijan participates in 3 projects of IST: WISTCIS, WISTCIS,

TELESOL, TRISTIAN EASTTELESOL, TRISTIAN EAST

WISTCIS project

Azerbaijan has geopolitical and political – economic prerequisites of the regional leader in ICT sphere

Azerbaijan has geopolitical and political – economic prerequisites of the regional leader in ICT sphere

The Republic of Azerbaijan - Industrial output in Azerbaijan(Value US$ billion)

The Republic of Azerbaijan - Industrial output in Azerbaijan(Value US$ billion)

7.20.8814.60.8200.84Other services

11.50.3714,70.32300.25Trading

7.10.6424,80.58000.41Transport andCommunication

3.10.33-33.60.31000.42Construction

7.80.852.80.77100.71Agriculture

5.10.766.90.733.60.68Industries

Growth(%)

2001Growth(%)

2000Growth(%)

1999Sector

Source: Ministry of Economic Development, June 2002

The Republic of Azerbaijan - Foreign Trade (1997-2001

(Value in USD million)

The Republic of Azerbaijan - Foreign Trade (1997-2001

(Value in USD million)

+884+573-107-470-13Trade balance

1430117210351076794Imports

23141745928606781Exports

200120012000199919981997

Source: The Economist Intelligence Unit, 2002

International Transport Corridor Europe Caucasus Asia

(TRACECA)

International Transport Corridor Europe Caucasus Asia

(TRACECA)

• Organization of Black sea economic cooperation (OBSEC)Organization of Black sea economic cooperation (OBSEC)

• Organization of Economic Cooperation (OEC)Organization of Economic Cooperation (OEC)

• Summits of the Turkish speaking statesSummits of the Turkish speaking states

Azerbaijan is the participant of a number of huge international Azerbaijan is the participant of a number of huge international

projects in the sphere of oil and gas production and projects in the sphere of oil and gas production and

ttransportationransportation

NATO NATO Partnership for PeacePartnership for Peace

Baku - Tbilisi - Jeykhan Baku - Tbilisi - Jeykhan pipe linepipe line

Scientific-technical, economic, intellectual potential of the Scientific-technical, economic, intellectual potential of the

country allows considerably increase the export of ICT-country allows considerably increase the export of ICT-

products and services.products and services.

During 10 years Azerbaijan might increase the export of During 10 years Azerbaijan might increase the export of

ICT production and ICT-services in ten times and reach ICT production and ICT-services in ten times and reach

the level of 500 million dollars by the 2011.the level of 500 million dollars by the 2011.

Azerbaijan might become the center of TransCaspian Azerbaijan might become the center of TransCaspian

Cybernetic Market (TCCM)Cybernetic Market (TCCM)

Azerbaijan might become the integrator of E-Business in Azerbaijan might become the integrator of E-Business in

TraTrannssCCaspian region.aspian region.

Strategic opportunities of Azerbaijan

1)1) Creation of the Monitoring Center of TransCreation of the Monitoring Center of TransCCaspian aspian

RegionRegion

2)2) Creation of the Regional Techno-parks and Incubators of Creation of the Regional Techno-parks and Incubators of

small and medium companies in ICT field at the Caspian small and medium companies in ICT field at the Caspian

shore of Azerbaijan shore of Azerbaijan

3)3) Development of e-Business on the basDevelopment of e-Business on the basee of Information- of Information-

processing Centers of international e-Commerce processing Centers of international e-Commerce

4)4) Export Program of science-intensive information Export Program of science-intensive information

technologies in TransCaspian Cybernetic market technologies in TransCaspian Cybernetic market

5)5) Creation of the electronic library of Turkish speaking Creation of the electronic library of Turkish speaking

countries within the frameworks of the project countries within the frameworks of the project

“Information Silk Way”“Information Silk Way”

Strategic opportunities of Azerbaijan

Peter R. WaltersPeter R. Walters – International Trade Center UNCTAD/WTO, Director, – International Trade Center UNCTAD/WTO, Director,

Product and Market Development DivisionProduct and Market Development Division

Nikolay SemineNikolay Semine – Technology Team Leader, ITC UNCTAD/WTO – Technology Team Leader, ITC UNCTAD/WTO

Dimitriy GrscarDimitriy Grscar – Head of the WTO Negotiation Team, Slovenia – Head of the WTO Negotiation Team, Slovenia

Ram K. VermaRam K. Verma – Executive Director, Electronics Research and Development – Executive Director, Electronics Research and Development

Center of IndiaCenter of India

John GilliesJohn Gillies – Senior Trade Training Officer, International Trade Center – Senior Trade Training Officer, International Trade Center

UNCTAD/WTOUNCTAD/WTO

Irina YazvinaIrina Yazvina – Vice-President “PARUS” Corporation – Vice-President “PARUS” Corporation

Vyacheslav AfanasyevVyacheslav Afanasyev – President, Association of Russian GSM Operators – President, Association of Russian GSM Operators

Sultan GadjiyevSultan Gadjiyev – Program Officer, UNDP – Program Officer, UNDP

Kamran AhmedovKamran Ahmedov - Interpreter - Interpreter

Gratitude

Representative of UNDP in Azerbaijan, heads of the state structures and Representative of UNDP in Azerbaijan, heads of the state structures and

national experts, taking active part in submission of the statistic and national experts, taking active part in submission of the statistic and

analytical materials for the use in profile – analytical materials for the use in profile – Mr. M.BorsottiMr. M.Borsotti, ,

Representative of UNDP in Azerbaijan, Representative of UNDP in Azerbaijan, Mr. S. GadjiyevMr. S. Gadjiyev – Coordinator of – Coordinator of

the Project on UNDP side, the Project on UNDP side,

Mrs. F. AbdullazadehMrs. F. Abdullazadeh - Head of the Department of the Presidential Office, - Head of the Department of the Presidential Office,

Mr. E. VelizadehMr. E. Velizadeh - Head of the Department of the Presidential Office, - Head of the Department of the Presidential Office,

Mr. F. AliyevMr. F. Aliyev – Minister of the Economic Development, – Minister of the Economic Development,

Mr. N. AhmedovMr. N. Ahmedov – Minister of Communications, – Minister of Communications,

Mr. K. GeydarovMr. K. Geydarov – Chairman of the State Customs Committee, – Chairman of the State Customs Committee,

Mr. K. ImanovMr. K. Imanov – Chairman of the Copyrights Agency, – Chairman of the Copyrights Agency,

Mr. I. YakovenkoMr. I. Yakovenko – President of AZEL company – President of AZEL company..

Gratitude

Address: Baku, 17 Academician H.Aliyev Str.

Tel.: (994-12) 40-30-09. Fax: (994-12) 40-01-30.

E-mail: nicts@az.in-bakuhttp://www.nicts.az

National Information Communication Technology Strategy (NICTS) Project

Azerbaijan Republic

Chairwoman of State Students Admission Commission

Coordinator of the National Information Communication Technology Strategy

(NICTS) Project

Dr. Maleyka Abbaszadeh