CC BY
44
Section 10. Economics
https://doi.org/10.29013/ESR-20-5.6-90-93
Ismayilov Vugar Agamusa, Ph.D. of Marketing department University of Technology of Azerbaijan E-mail: [email protected] HajievaNushaba Aslan, Deanof Department of Economics and Management, Ph.D., University of Technology of Azerbaijan E-mail: [email protected] Gurbanova Khatira Veli, Ph.D. of Marketing department University of Technology of Azerbaija, E-mail: [email protected] Babakishiyeva Sevinc Firuddin, Senior teacher of Marketing department, University of Technology of Azerbaijan E-mail: [email protected] Yusubova Shalala Ali, Senior teacher of Marketing department, University of Technology of Azerbaijan E-mail: [email protected]
WAYS TO ÍMPROVE SOCÍAL ASSÍSTANCE AND SERVÍCES ÍN AZERBAÍJAN
Abstract. Improving the standard of living and improving the structure of consumption are also the main goals of the socio-economic policy pursued by Azerbaijan. After Azerbaijan gained independence, large-scale programs aimed at improving living standards and improving consumption were implemented in the country, a strong economic and regulatory framework was established, and a governance system was created to ensure the creation of a socially oriented market economy in the Republic of Azerbaijan.
Keywords: standard of living, social assistance, allowance, living minimum, consumer basket, social service.
in 2018, 118,000 permanent jobs were created in the country with the increase of industrial production, non-oil sector, and monetary income of the population, investing 17.2 billion manat into the country's economy.
According to calculations of the Davos Economic Forum, our country is ranked 35 th in global competitiveness, and third in developing countries, according to the inclusive development index, as well as the top 10 reformers in the Doing Business 2019 report, its 25th place among 190 countries is a clear indication of the way our country has progressed.
Various factors affect the improvement of the standard of living of the population, one of which is the provision of state benefits to the population.[3]. The impact of the state on the quality of life and social development is measured by financial regulation, market relations of the state, or by the level of direct access and guarantee. The organization of social security within certain limits finds its normative basis in the functions and mechanisms of the state's distribution. Social security, as regulated by legislation, is based on conceptual orientations as a progressive policy. As the economy develops, wages, pension reform, and poverty reduction measures are also regulated.
In addition, targeted state social assistance to low-income families plays an important role in their budget.
The implementation of this system has had a positive impact on the living standards of the population of the country, mitigating the differences between the youth population groups. In 2018, the number of family members receiving targeted state social assistance was more than 450,000 [2].
The average monthly pension in the country increased by 8.4% compared to the same period of the last year and amounted to 219.2 manat and equals 39.6% of the average monthly salary (38.7% in the first half of 2017). As ofJuly 1, 2018, 409.300 people were granted social allowances. The number of beneficiaries for age benefits was 42.7 thousand, for disabled people - 164.1 thousand, for loss of a fam-
ily head - 45.5 thousand, for children with limited health benefits - 74.0 thousand.
The number of pensioners working in the country was 13.4% of the total pensioners. This ratio varies considerably across the region. For example, pensioners working in Baku accounted for 20% of total pensioners, 13.2% in Absheron economic district, and 5.5% in Lankaran economic district. In our opinion, this difference can be explained by the fact that employment in the regions is more serious than in Baku.
Regions also differ by the average monthly amount of pensions. For example, this amount was 238.6 manat in Baku, 152.2 manat in Guba-Khachmaz zone and 156.2 manat in Ganja-Gazakh zone. In other economic zones, the average pension is about 150-160 manat. The region's average size of pensions is directly affected by the economy's wage levels in the areas where pensioners work. For example, in highly industrialized cities, pensions are higher than in rural areas. This amount was 168 manat in Sumgayit, 163 manat in Shamkir, 170 manats in Si-yazan, 171.7 manat in Shirvan, which is higher than average in many regions.
The concepts of the minimum consumer budget and living wage are used to assess the standard of living of the population, the development and implementation of regional programs, the determination of wages, social benefits [5].
An indicator of the impact of rising prices on the incomes of the population is the Consumer Price Index - this price index is included in the consumer basket of the average urban population.
The cost of the consumer basket is determined by the average scientific prices for food products, which are included in the consumer basket of different age groups by the scientifically justified physiological consumption norms of food products set by the competent health authorities and sold in a particular area (country, city, region, etc.). The consumer basket is a set of goods and services that should provide a comfortable and comprehensive life for the whole year. The cost of living depends on the structure of
the consumer basket, which is subject to changes and additions every year (according to the decision of the Cabinet of Ministers).
The minimum consumer basket in our country is primarily food, which accounts for about 50% (in some Western European countries this figure does not exceed 20%). It should be noted that this indicator is similar in our country and in many other countries of the Soviet Union. The second group includes nonfoods - clothes, footwear, medicines, etc. includes. Consumer basket services include utilities, transportation costs, cultural events and more.
As a rule, the living wage in Azerbaijan is submitted to the National Council in conjunction with the draft State Budget of the year and is approved after discussion. Let us also note that the living wage is set separately for the working population, pensioners, and children.
In particular, we would like to point out changes in the level of poverty in the country. In 2010-2018, the number of poor people in our country has been reduced to a minimum, the poverty level has been reduced by more than 9 times.
The implementation of adopted state programs on socio-economic development of the regions over the past decade is of great importance in the development of the regions of the country to a new quality stage. As a continuation of the policy of comprehensive development of the regions, starting from 2004, the State Program on Socio-Economic Development of the Regions of the Republic of Azerbaijan for 2014-2018 was developed by the Decree of the President of the Republic of Azerbaijan dated February 27, 2014 No 118. Implementation of the "State Program of socio-economic development of the regions of the Republic ofAzerbaijan for 2014-2018" is important for the development of the country's economy, ensuring macroeconomic stability, expansion of entrepreneurship in the regions, creation of new enterprises and jobs, implementation of large-scale infrastructure projects played an exceptional role in improving the quality of public services, ulti-
mately improving the welfare of the population and reducing poverty [1].
The results of regular household surveys to assess the implementation mechanism of the Law of the Republic of Azerbaijan on Targeted State Social Assistance, as well as the opinion of international experts, indicate that targeted assistance in the country is being followed. However, it should be noted that the improvement of the targeted social assistance system is becoming more and more relevant year by year.
One of the most important factors affecting the standard of living of the population is its education. The progressive scientists and educators of our people have always called on people to acquire knowledge and literacy and worked hard for the progress of the nation. For comparison, if the literacy rate was 1% in Azerbaijan at the beginning of the twentieth century, statistics now suggest that this figure is over 99%. In general, Azerbaijan is one of the leading countries in the world in terms of its literacy rate.
One of the prerequisites for improving the living standards of the population, especially families with young children, is the provision of a network of pre-school education institutions in the country [8]. Important measures were taken to comprehensively develop, raise the level of education, intellectual development, numerous new school buildings were built, children and boarding schools were renovated and equipped with modern facilities.
In 2018, there are 1,785 pre-school educational institutions in the country, of which over 96% are under the government's control. The number of children studying here was 120 thousand 383. However, the number of children involved in pre-school education (children aged 1-5) is 16.6% ofthe total number of children, which is lower than in many countries. In rural areas this figure is two times lower than the national average. In most cases, the number of places available in kindergartens is much lower than the number of preschool children living in the relevant area, district, and city. In this regard, expanding the construction of pre-school education at the expense
of the state and involving children is one of the most important socio-economic issues that can lead to a positive change in the consumption structure oflow-income families, as well as allowing working mothers to stay away from their jobs [6].
At present, there are 3 boarding schools for children who have lost their parents or are deprived of parental care, and according to 2018, 464 children are studying and living there.
A number of countries have adopted a law on social services that defines the legal, economic and organizational basis of public policy in the area of social services for people living in difficult life situations. The Law of the Republic ofAzerbaijan on Social Service adopted in 2011 states that the purpose of social services is to prevent situations that aggravate the standard of living of citizens, complicate their socio-psychological status and lead to their exclusion from society [4].
The provision of social services is based on a social worker's assessment and determination of the need for social services for a person (family) living
in difficult circumstances. Criteria for assessing and determining the demand for social services are: social remembrance; social deprivation (deprivation); unsuccessful social environment [7].
Social services are funded by the state budget in the manner prescribed by law, the proceeds from the provision of paid social services, donations of legal entities and individuals, grants, as well as other sources provided by law. Taking into account the fact that the budgetary funds allocated to these areas are increasing year by year, the social services sector is inevitable and it will play a role in the growth of employment, it would be advisable to focus on accounting and improving statistics.
In providing social assistance to low-income families, families with disabilities, the elderly, children and other vulnerable groups (including persons with disabilities in the family, elderly people, other disabled people) it is necessary to improve the amount of allowance for land, which cannot be used or regularly used for objective reasons, especially when compiling property lists.
References:
1. Abbasov A. F. Proceedings of the Scientific and Practical Conference "Social and Economic Problems of Development of Cooporation in the Conditions of Multinationality", Prevention of Poverty as a Factor of Social Security of the State,- Baku, 2002.- 300 p.
2. Statistical indicators of the Republic ofAzerbaijan, AZDSK, Saada Publishing House,- Baku, 2014-2018.
3. Aliyev A., Gasimov N. Actual problems of improving living standards in Azerbaijan. Current state and peculiarities of the mechanism of compensation in Azerbaijan. - Baku, 2000.- 225 p.- P. 12-45.
4. Ashrafova R. S. "The Role of Social Assistance System in Improvement of Social Protection of the Population", Journal of the Protector. October, 2005.- No. 1492.
5. Huseynov V. A., Huseynov Z. R., Ismailov Sh. Q Mustafayev A. O. Manat Expansion and Economic Development: A Study of the Contents and Signs of Dutch Disease,- Baku, 2005.- 140 p.
6. Hajieva N. A., Marketing LAP LAMBERT Academic Publishing,- 688 p.
7. Imanov C. Q Hasanli Y. H. Models of socio-economic development of Azerbaijan. - Baku: Science, 2001.- 248 p.
8. Muradov A. Assessment of the impact of oil revenues on the economy ofAzerbaijan and living standards. Institute of Economics of ANAS Collection of articles ."Problems of national economy". III edition "Elm",- Baku, 2006.- 395 p.
