Research Information System
ACADEMY REVIEW, no.2, pp.267-276, 2022 (ESCI)
After the collapse of the USSR, the socialist system collapsed in Azerbaijan, as well as in other allied states. That collapse completely destroyed almost all sectors of the country's economy, espe-cially the non-oil sector. That meant that the period of recession in both the oil and non-oil sectors in the country reached its peak. The stagnation of the country's economy was felt in many areas. It should be noted that agriculture, tourism, manufacturing, and engineering reached such a decline that the country became dependent on imports in most areas. The transition to economic development after such a tense situation in the country's economy was remembered by the economists by highlighting three historical stages of the development of Azerbaijan economy in the period after the restoration of independence. The period from 1991 to 1994 is considered the first period for the economy development. Dur-ing that period, the political and socio-economic situation in the country became more complicated. According to the statistics provided for this period, during 1991-1994, the gross domestic product (GDP) decreased by 16.5 per cent annually. Also, there was reordered, especially in the non-oil sector, a decrease in industrial production by 10% in 1991, 37% in 1992 and 50% in 1993 compared to 1985. As a result of the collapse of the USSR, the production areas were almost completely out of order, and as a result, the level of unemployment reached very high level. Again, referring to the statistics of that period, we can say that in 1991-1995, the monetary income of the population in real terms decreased by 3.3 times, and monetary income per capita decreased on average by 3.6 times. In parallel with this, the wages of the population decreased by 5.7 times. Since the times of the USSR, in agriculture, which has strong production and economic potential for Azerbaijan, the cultivated area of the main crops, the number of livestock has decreased sharply, and the level of production has almost fallen to the state of recession.