CC BY
21
Section 2. Management
https://doi.org/10.29013/EJEMS -20-1-11-14
Afandiyev Sadig Gahraman, PhD, Karimova Minura Haji, PhD Azerbaijan Technological University(UTECA) E-mail: s.efendiyev@uteca.edu.az
THE STRATEGIC DEVELOPMENT OF INDUSTRIAL ENTERPRISES
Abstract. The article examines the strategic development paths of manufacturing industry as one of the factors contributing to sustainable economic development in the Azerbaijani industry. In addition, the paper explores the strategic development of industrial enterprises and offers a program of measures to address these issues.
Keywords: Sustainable Economic Development, Economic Development Strategy, Socioeconomic Development State Program.
The socio-economic strengthening of our Repub- tors in determining the structure of each economy.
lic depends primarily on the development potential of industrial enterprises. Achievements in the industrial sector in line with the strategy set out in the Development Concept of "Azerbaijan 2020: Looking to the Future" - macroeconomic stability, dynamic economic growth, reduction of unemployment and poverty, increasing population welfare and economic success in the country. activity. In this context, the country's economic development strategy accelerated the growth of sustainable industrial development. The sustainable economic development of Azerbaijan depends directly on the economic development of the non-oil industry or on the development of a sustainable economic development strategy for the processing industry of many countries.
Of course, along with the petroleum industry, the refining industry plays a major role in the further development of the economy of the Republic ofAzerbaijan. It should be noted that manufacturing industry is often one of the key and important fac-
The advantage of the manufacturing industry is that it ensures the growth of every national economy. Therefore, some measures are taken in order to further develop the processing industry in the economy, improve its structure, increase investments in this sector and take appropriate measures in many areas related to this sector. The implementation of these measures has been put forward as an important task aimed at efficient use of production facilities and business resources and proper placement problem for the sustainable development of the processing industry in our country [1].
The socio-economic strengthening of our Republic depends primarily on the development potential of industrial enterprises. The achievements in the industrial sector in line with the strategy set out in the "Azerbaijan 2020: Future Perspective" Development Concept - are the result of macroeconomic stability, dynamic economic growth, reduction of unemployment and poverty, increased population
welfare and economic success activities in the country. In this context, the country's economic development strategy accelerated the growth of sustainable industrial development. The sustainable economic development of Azerbaijan depends directly on the economic development of the non-oil industry or on the development of a sustainable economic development strategy for the processing industry of many countries.
The development of a sustainable economic development strategy in the processing industry will directly contribute to the growth of the industrial sector and ultimately to the economic development of the country. Thus, we can ensure the socio-economic development of the country by creating a strategy for the sustainable economic development of the processing industry. In order to ensure sustainable socio-economic development in the country in the near future, it is important to achieve stable and high growth rates in the processing industry, to improve its structure and to increase its efficiency.
In this context, it is necessary to promote the competitiveness of national product, increase investment and innovation activities in the processing industry and accelerate the development of the non-oil sector and its activities. To this end, it is a current study to investigate the theoretical and methodological aspects of the regulation of processing industry enterprises in the economic development of the Republic of Azerbaijan in a globalized world, to examine the factors affecting economic development in this field and to increase the mechanisms of the sector as a whole in economic development [1].
It is important to note that a comprehensive analysis of the factors affecting the economic development of the Republic and the development of economic mechanisms has become a serious necessity in the processing industry. Apparently, the country's economic growth was largely driven by the oil factor. This is also objective, because in the early years of independence - at a time of difficult financial resources, the oil factor could not come to the forefront.
One of the key points in the sustainable development strategy determined by the Azerbaijani government is that oil is not a purpose but a tool. The future of the economy of the Republic ofAzerbaijan is not limited to oil. Therefore, the rapid development of the non-oil sector has been identified as one of the priority areas of economic policies.
In this context, in November 2003, the President of the Republic of Azerbaijan Ilham Aliyev signed the decree "On measures to accelerate the socioeconomic development of the Republic of Azerbaijan". As a result of the tasks set out in this historical document, the economic and investment environment has been improved, new production facilities and jobs have been created, and real opportunities for the rapid development of the non-oil sector have been created.
Then, on 11 February 2004, the President of the Republic ofAzerbaijan Ilham Aliyev signed a decree on the ratification of the "State Program for the Socioeconomic Development of the Regions of the Republic of Azerbaijan". The State Program envisages the following objectives, which aim to address a number of key issues of great importance to the population of the country:
- ensure a balanced economic development of the country and reduce dependence on the oil factor;
- restructuring and strengthening of inadequacies in social and economic development, ineffective migration processes between regions, creation of new workplaces;
- efficient use of resources by region;
- the creation of regional production and social infrastructure meeting the modern requirements.
In addition, the President approved a series of action plans to accelerate the socio-economic development of many cities and regions in the country. In this context, 83% of the new jobs in the regions and 94% in the non-oil sector were created as a result of the measures taken within the framework of the State Program for Socio-Economic Development of the Regions.
In addition to all these efforts, in order to make the most of the existing potential in the new stage of industrialization, Azerbaijan has become a more powerful industrial center in the region and State Program for the Development of Industry in the Republic of Azerbaijan dated 26 December 2014 for 2015-2020 has been prepared. It was developed and approved by the decision of the President of the Republic of Azerbaijan [2].
The state program aims to modernize and develop the structure of the industry, to increase the export potential of the non-oil industry, to increase the competitive energy-saving, high value-added competition industry, to expand high-tech and innovative production and to train qualified personnel for new industries. To achieve these objectives, the program is being further developed to improve the competitiveness and capacity of the industry, to develop existing industries and to create new industries, to develop the regional structure of the industry, to develop industrial infrastructure, to create industrial zones and clusters, to provide industries with highly skilled human resources and scientific knowledge. 24 directions have been identified, including the strengthening of the regulatory framework and the regulation of the activities of industrial enterprises and others [2].
A number of action plans have been developed as part of this program:
1. To increase the competitiveness and capacity of the sector
2. Support of industrial enterprises
3. Establishment of industrial zones and clusters
4. To strengthen human resources
5. Improvement of legislation
In addition, the following activities will be implemented under this program:
- modernization and improvement of the industrial structure;
- increasing the export potential of the non-oil industry;
- expanding competitive industrial production with energy efficiency and high added value;
- expanding scientific and innovative production;
- organizing qualified personnel training for new industries;
- expanding measures to support industrial production;
- strengthen the potential of traditional industries;
- support the role of existing natural and economic resources in economic development;
- improving the supply of industrial infrastructure;
- encouraging local and foreign investments in the non-oil sector;
- implementing measures for the transfer and assimilation of advanced technologies;
- encouraging the implementation of modern enterprises and corporate governance principles in industrial enterprises;
- promoting standardization and certification in industrial enterprises;
- supporting the branding, marketing and advertising activities of industrial enterprises;
- creating healthy and safe jobs in industrial enterprises;
- creating technological chains with the participation of the private sector in the direction of industrial development before the production of final products;
- supporting the creation of new industries;
- strengthening the industrial potential of the regions;
- creating new regional development centers, special economic zones, industrial production clusters in priority areas and new local enterprises based on the competitive advantages of each zone and economic zone;
- establishing the industrial and technology parks and industrial zones;
- enhancing cooperation between the public and private sectors with a purpose to developing the non-oil sector;
- support the establishment of appropriate initiatives with the use of low waste or wastewater technologies for waste saving, efficient use of natural resources and environmental protection;
- strengthening state support for the expansion of innovation activities;
- encouraging the use of innovative technologies in industrial enterprises.
At the same time, attention should be paid to the sustainable economic development of the processing industry, particularly the machinery manufacturing industry, during the implementation of the State Pro-
gram and measures should be taken to increase the share of manufactured products and equipment in meeting domestic demand. If heavy industry enterprises need to produce basic products for the industry, close involvement of the government should be ensured and the private sector should provide market with semi-finished products and final products [2].
The successful implementation of the tasks defined in the main aspects of the state's economic policy gives the firm confidence that the independent Azerbaijani state will be in sustainable development and worthy of place in the globalized world.
References:
1. Decree of the President of the Republic ofAzerbaijan on the approval of "State Program on the Development of Industry in the Republic ofAzerbaijan in 2015-2020" // URL: http://senaye.gov.az/content/ html/2281/attachments/State%20Program%20for%20the%20development%20of%20industry%20 in%20Azerbaijan%20in%202015-2020.pdf
2. Strategic Road Map on National Economy And Key Sectors of the Economy of Azerbaijan // URL: http://ereforms.org/store/media/ekspert_yazilari/islahat%20icmali/mart/strateji%20yol%20 x%C9%99rit%C9%99si%20-eng1.pdf
3. "Strategic Roadmap for the Development of Heavy Industry and Mechanical Engineering in the Republic ofAzerbaijan" URL: http://www.azermash.az/en/3-about-company
4. Aliyev I. H., Mammadov Y. A. "Development Concept Azerbaijan - 2020: Look Into The Future".- Baku, 2016.- 90 p.
5. Tofig Huseynov. "Azerbaijan's National Economic Development Model: Theory and Practice".- Baku, 2015.- 466 p.
6. Prof., Osman Nuri Aras, Dr. Elchin Suleymanov. "Azerbaijan Economy".- Baku, 2016.- 423 p.
7. Bayramov V. A. Sustainability. (monoqraphy).- Baku, 2019.- 161 p.
