Research Information System
37th International Scientific Conference on Economic and Social Development - Socio Economic Problems of Sustainable Development, Baku, Azerbaijan, 14 - 15 February 2019, pp.1186-1193
The devaluation shock experienced by the economy of Azerbaijan in 2015 actually put an end to the socio-economic model that has been cultivated since the start of the implementation of large oil projects. The new model, the parameters of which are announced, should lead the country and society to a qualitatively new level of development. New instruments of social and economic policy are required, in particular, for investment incentives for the development of non-oil sectors of the economy. Such a tool could potentially be a public private partnership (PPP). PPP should become not just a set of various projects, but become a powerful factor in the development of public relations and institutions. The issue of financial support of such a partnership is one of the most difficult. The level of investment potential and the effectiveness of PPP as a national movement depends not only on how this issue is resolved. This also determines the possibilities for developing the potential of domestic banks, increasing their contribution to the industrialization of the country, expanding the banking business instruments, increasing banking influence on capital markets, approving the practice of targeted pooling of banks' efforts and resources, for example, in the form of banking consortia. The development of bank financing of PPP can help solve the problem of increasing the level of capitalization of local banks, the lack of reliable points of application for bank capital, the expansion of the range of banking products, and the permanent improvement of banking technologies.