The ministry of economic development of the republic of azerbaijan rehabilitation and closure of unauthorized dump sites in the greater baku area environmental



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Healthcare. The institutions providing healthcare in Baku as at the beginning of 2011 were as follows: 116 hospitals with number of beds totaling 19088 (91.2 beds per 10 000 populations), 30566 patient capacity 278 ambulatory policlinics (146.1 patients per 10 000 populations). Above healthcare institutions employed 18 762 physicians and 22 144 medium-level medical personnel. The number of physicians and medium-level medical personnel per 10 000 population was 89.7 and 106 accordingly
The average monthly salary rates of people employed in the healthcare system amounts to 152.7 manat (191 USD), i.e. 35 % of the average monthly wages in the country.
Although medical services in state health care centers are provided free of charge, low remunerations of medical personnel is the factor that causes taking additional unofficial payments from patients for received services. Low level of wages have adversely affected motivation and subsequently the quality of services provided by healthcare personnel. The poor quality medical services have worsened to an extent that many could not use such services at all.
Labor resources and employment. The number of able-bodied people in Greater Baku as at the beginning of 2011 was 1.445.8 thousand (723.1 thousand females aged 15-56; 722.3 thousand males aged 15-61), i.e. 70 % of city population. The specific weight of males in the economically active population was 74.7 %, females – 25.3 %. The most economically active were people aged between 20 and 49.
The number of people on contract work arrangements in 2008 was 616.4 thousand on average, including 61.346 people (10%) involved in small private businesses. The average number of contract work employees in 2009 engaged in economic activities decreased to 603.8 thousand people.
The number of state servants in Baku in 2009 was 11.038 people, of whom females accounted for 3 608 – 32.7 %. In 2010 16153 new permanent jobs were created in Baku of which 3.1 thousand jobs were provided at newly established businesses and organizations, 4.5 thousand jobs – in existing business and organizations, 0.15 thousand jobs- in reactivated businesses and organizations and 11 thousand jobs – as private individuals. .
Unemployment is one of the major problems of the district community. According to International Labor Organization unemployment in the country is assessed to be at the level of 15 % of labor resources. The unemployment figures are considerably high among females and internally displaced people.
Pursuant to the law of AR “On population employment” employment agencies have been set up in the county with the aim of improving the social protection of unemployed people and job seekers.
The number of people registered with Baku city state employment agencies as unemployed was 12.528, 27 people entitled to unemployment allowances. The average size of unemployment allowances in 2010 was 163.2 manat. People applying for jobs to state employment agencies were provided with works to the extent of 60 %.
Economy
The following State Programs are being implemented in the republic:

* State program on the improvement of fuel and energy complex for 2005-2015.

* State program on the poverty reduction in RA and economic development for 2008-2015.

* State program on social and economic development of the regions of RA for 2009-2013, measures focused on the socio-economic development of Baku and its surrounding settlements. .


The above mentioned programs envisage undertaking complex measures, through more efficient utilization of existing potentials in the capital, .aimed at the development of non-oil economy, expansion of entrepreneurship, increase of production activities in existing enterprises, creation of new businesses and jobs, acceleration of the use of information and communication technologies, improvement of social infrastructure as well as building and reconstruction of educational, scientific, healthcare, culture and sports events facilities and also construction of dwellings for invalids and war victim families, improvement of the employment level of population and poverty reduction.

By virtue of additions and amendments introduced to the Tax Code of RA for the purpose of the development of private business environment in the country and reduction of tax burdens imposed on entrepreneurs the upper ceiling of income taxes applied onto physical persons was decreased from 35 % to 30%, the income tax rate applicable to legal entities was reduced from 22% to 20% and the income tax rate levied on entrepreneurs carrying out business activities without incorporation was reduced from 35% to 20%.

To the effect that legal entities could qualify for simplified tax regime their income tax bases were increased from 90 thousand to 150 thousand manat per annum; educational services provided by preschool institutions were exempted from value added tax liabilities.

In order to increase the efficiency of investment activities portions of profits gained by banks, insurance and reinsurance companies directed to increasing share capital were exempted form taxation for the period of 3 years beginning from 01.01.2009 for the purpose of speeding up the development of financial sector, improvement of creditworthiness of banks and insurance companies and stimulation of increase of capitalization level of those businesses.

Also the interest rates paid by banks and other loan institutions on savings of individuals were exempted from income tax for the period of 3 years beginning form 01.01.2010.

At the beginning of 2011 state program on socio-economic development of Baku and its suburbs for the years of 2011-2013 has been adopted. Under the program 817 measures are supposed to be implemented in 16 directions. Over the coming three years measures will be undertaken throughout Baku and its suburbs aimed at the development of road and communication infrastructure complexes, information and communication systems, reconstruction of power stations, stimulation of the development of entrepreneurship, building schools and healthcare centers in suburban communities as well as restoration and modernization of cultural events facilities. The program also provides for the development and strengthening of material and technical supplies for sports facilities, improvement of social protection system and environmental rehabilitation.


The number of economic entities operating in the Greater Baku area as at the beginning of 2010 was 148 958 (up 4.6% compared to figures for 2008), of them 50 265 were legal entities (33.74 %) and 98 693 (66.26%) individuals. People involved in contract work activities in the country economy numbered 603.8 thousand per annum on average, down 18 % compared to data for 2008; registered unemployed - 12.4 thousand (up 18 % compared to figures for 2008).
The gross production in Baku in 2009 combined from all spheres of national economy totaled 30870.6 mln. manat, down 13.5 % compared to figures for 2008. The fixed capital investments contributed in 2009 by large-and medium-sized businesses from all spheres of national economy amounted to 4.377.669. thousand manat (60.6 % countrywide), down 27.8% compared with figures for 2008.
Small businesses In 2009 the number of small-size businesses operating in Greater Baku was 78 603 where individual entrepreneurs –physical persons numbered 69.052 (87.9%). The number of small-size businesses as per 1000 population was 38, including industries - 1986 (2.53%), with 1000 individual entrepreneurs; construction -1121 (1.4%) with 239 individual entrepreneurs and communications – 192, transport and warehousing - 9486 (13%) with 9289 individual entrepreneurs, wholesaling and retailing, automobiles, home appliances and repairs - 47.787 (60.8%) with 41194 individual entrepreneurs; residential construction and catering - 4.084 (60.8%) with 3.825 individual entrepreneurs; real estate operations, leases and customer services - 2612 (3.3%) with 2481 individual entrepreneurs.
The number of small-size businesses operating in Baku was 9.551 where industrial enterprises accounted for 10.4%; construction enterprises – 9.2%; commercial enterprises – 69 %; transport, communications and warehousing enterprises – 2.1%; real estate operations, lease and customer services businesses – 1.4%.
The number of contract work employees working at small-size enterprises was 58177. The productivity of small-sized businesses totaled 1.847 million manat. The fixed capital investments contributed by small-size businesses amounted to 81 mln. 297.5 thousand manat.
Industry. As at the beginning of 2011 industrial enterprises operating in Baku were 1.245 (at the beginning of 2011-1380) in number, where on average 99.6 thousand people were employed and the employees average monthly wages amounted to 584.4 manat. The number of individual entrepreneurs registered to be engaged in industrial activities was 4400.
In 2010 the industry production, (works, services, at factual prices) -25.251 million manta, share of non-state sector in volume of industrial products – 80.6%. The major industrial production funds amounted to 32074 mln manat (2009- 29180 mln manat).
Construction. The number of construction companies in Baku in 2009 was 759 and number of their employees was 37454 people. New residential houses at cost of all financial resources with total area of 507.471 m2 were presented to public use, of which the area of private households constituted 164.4 thousand m2 (in 2008: residential houses - 733.168 m2- up 30,8%; private households - 227.5 thousand m2 – up 27.7 %). The fixed capital investments in construction sector amounted to 4 520.4 mln manat (1.4 times less than in 2008 ), including 2 371.1 mln manat (52.45%) in construction and assembly projects (1.35 times less than in 2008). The major funds commissioned for use in 2009 amounted to 3.46 mln manat.i.e.1.8 times less than in 2008.
Communication. The communication services are of critical importance to the improvement of people’s living conditions and development of favorable business climate.
There are 153 post offices operating in Baku and 156 ATSs (with total subscription capacity of 806 286 phone numbers), including 147 electronically operated ATSs (with total subscription capacity of 728 186 phone numbers). The number of phone sets per 100 population is 123 units. Cellular telephones are used by 3233,4 thousand people. The specific weight of electronically operated ATSs in Baku city is 95%.
In 2009 the communication services provided by telecommunication units and post offices to businesses and population were at the worth of 940 mln. manat, more by 2.2 times than in 2005.
Commerce. Baku city has broad commercial network (comprised of 18916 stores with total area of trading floor of 1603.2 thousand m2, 133,84 thousand catering facilities, 1364 booths).
The retail commodity turnover in Baku in 2009 totaled 5 862.5 mln manat, 2.5 times more than in 2005. The specific weight of Baku city in the overall countrywide commodity turnover was 49,6%. The etail commodity turnover in per- capita terms amounted to 2 627 thousand manat.
The paid services provided to the population were at the worth of 2 715. 07 mln manat. The share of paid services per-capita amounted to 1216.67 manat. The total value of provided household services amounted to 359,4 mln. manat. The share of household services per-capita amounted to 161 manat.
Automobile transport. In 2009 39 680 – ton cargos were transported by individuals and legal entities operating in the auto-transport sector of Baku city (up 66 % compared to the figures for 2005). The cargo turnover increased by 1.6 times from 2005 and amounted to 4 556.6 mln ton per kilometer. Auto-transport’s passenger traffic in 2009 totaled 511 mln. 715 thousand people, up 74% compared to figures for 2005. The number of automobiles in Baku is 549.5 thousand units. Lorries account for 8.9% (48.9 thousand), buses – 3.3% (18218), passenger-carrying automobiles 86% (472458). Personal cars numbered 44, 5 thousand (1.9 times more than in 2005). The number of personal cars per 100 people is 88.
Agriculture. The number of agricultural firms in Baku suburbs in 2009 was 40 (including 3 private farms), where on average 658 people were employed per year (in 2008: 625) and average monthly wages amounted to 90.4 manat (in 2008: 76.5 manat).

The total area of arable lands in Baku settlements was 220 ha, 5.1 times less than in 2008; the area of lands under crops totaled 52 ha, 5.5 times less than in 2008. The area of arable lands per one agricultural firm amounts 5.5 ha (in 2008: 26.8 ha).


Plant growing. The area of cultivated lands under main agricultural crops in 2009 amounted to 3223 ha (down by 1.37 times than in 2006), including: fruit and berry groves - 1236 ha (38.3% of total cultivated lands); vineyards - 1498 ha (46.5%); vegetables – 455 ha (14.1%). Plant production volumes in 2009 were as follows: 1668 tons of fruits and berries, 16301 tons of grapes and 19589 tons of vegetables.Stock raising. In 2009 cattle numbered 5 896 heads, sheep and goats - 19 923 heads. The animal production figures were as follows: meat - 1397 tons (2 times more than in 2005); milk - 3110 tons (down by 20% compared to figures for 206-2007); eggs – 11.5 mln. pieces (down by 23.3% compared to figures for 2008).
LIVING STANDARDS OF POPULATION
Cash incomes and expenses of population. Nominal cash incomes of the country population in 2010 increased by 13.3% and reached 25.6 bln. manat, with per-capita share of 2.866 manat, up 11.9 % from the previous year. According to official data the annual average inflation rate was 5.7%, while unofficial sources put that indicator at 11.45%. The amount of wages, pension and benefit assignments in 2010 totaled 3,7 bln. manat, i.e. 31.5% of all expenditures.
Cash expenses were 70% of end consumers, 8.6% -taxes, social insurance and voluntary membership contributions and 19.8 % - funds reserved as savings or contributed to the increase of equities. The incomes of households in Baku city in per-capita terms amounted to147,4 manat ($184.25) of which 53.3% were employment wages; 23.5% - private entrepreneur incomes and 9.4 % - pensions.
Salaries and wages. The development of state budget revenues provided conditions for the increase of monthly average wages of people involved in employment activities in all spheres of national economy. Thus, the average monthly wages of people employed in economic sector in 2010 amounted to 321.2 manat, up 7.7 % from 2009. The base amount of minimum salaries and pensions increased to 85 manat from 75 manat in 2010.
The nominal average monthly wages of contract work employees in Greater Baku as at the beginning of 2010 amounted to 429,8 manat ($ 537) ( 2009: 396.5 manat-$495.6). According to data from SSC highest wages are paid to qualified employees involved in ore mining (including oil production), construction and financial sectors as well as lease and consumer service fields. In particular, the monthly average wages to people working in ore extraction amounted 998.6 manat ($1248.2) - 643.2 manat (($804) in governmental organizations and 1564.6 manat ($1955.8) in non-governmental organizations; the rates in processing industries were 269 manat (($336.3), 307.6 manat ($384.5) and 239.7 manat ($299.6) accordingly.
The nominal average monthly wages in Greater Baku were 567 manat ($810) in industrial sector, 450 manat ($562.5) to construction projects employees, 665 manat ($831.2) to communications sector employees, 381 manat ($476.2) to transport sector employees. Real wages of industrial sector employees increased by total of 3.1 %.
The average monthly wages of qualified employees working in finance and insurance sector organizations amounted to 830.2 manat ($1037.8)- 727.6 manat in governmental, 840 manat ($1050) - in non-governmental organizations.
The educational sector employees’ average monthly wages amounted to 259.8 manat ($324.8)-256.2 manat ($320,2) in governmental, 498 manat ($622.5) -in non-governmental organizations. Healthcare sector employees’ average monthly wages amounted to 152.7 manat ($191)-146.8 manat ($183,5) in governmental, 304 manat ($380)–in non-governmental organizations. The average monthly wages of people working on multi-job assignments amounted to 176 manat ($220), and of people having contract based employments-293,6 manat ($367). The nominal average monthly wages of state servants amounted to 572 manat ($715), with 832.5 manat ($1040.6) paid to administrative position executives where 816 manat was the share payments to females ($1020).


Pension benefits and social allowances. The benefits paid in the social protection system are classified into two types: 1 – social insurance related benefits allocated through contributions to the national social insurance system; and 2 – social aids related benefits allocated directly from the state budget. The average monthly pension benefits in the country as at the beginning of 2010 amounted to100,4 manat ($125,5), where 100,4 manat was old age pension; 98.5 manat ($123.1) – disability pension; 99.2 manat ($124) – pension due to loss of family head. The increase in such allowances was 54.8 % - in respect of old age pension; 75.4 % - in respect of disability pension; 42.4% - in respect of pension allowances due to loss of family head and 39.7% - in respect of social benefits and pension allowances accrued for the years of employment.
In January of 2011 the base insurance portion of pension benefits and insurance capital were readjusted on accounts of individual files for inflation rates of 2010 (5.7 %). The able-bodied adults in the Baku as at the beginning 2011 numbered 222.6 thousand people (females – 147.7 thousand; males - 74.9 thousand), 10.8 % of the city population

The number of pension beneficiaries in Baku as at the beginning of 2011 was 336 930 people (16 % of population) of whom 222.412. (11% of population and 67 % of beneficiaries) were people receiving old age benefits, 71.548 (3.4. % of population and 20.95% of beneficiaries)–people receiving disability benefits, 42.970 (1.97 % of population and 12% of beneficiaries) – people receiving pension allowances due to loss of family head. The average monthly pension benefits allocated on social insurance contribution basis amounted to 154.29 AZN.


As at the beginning of 2011 153.252 people (2010-153.252) from low income families received target state social aids . The average monthly per capita social aid amounted to 26.87 manat.

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Households. According to estimates there are 491.7 thousand families living in Baku (25.4 % of families in the country) including 70 thousand one man families (47 % of such families in the country). The average number of family members was 4.2 people (4.7 people in the country). The average size of households was 4.2.people, where males aged over 18 accounted for 1.5 people, females – 1.8 people and children – 0.9 people. The total area of the housing stock in Baku as at the beginning of 2010 amounted to 27.742 thousand m2 (24.8 % of the country’s available housing) of which 5,350 thousand. m2 was government property (48.8% of such housing in the country) and 22.392 thousand m2– non-government property (22.2 %.of such housing in the country) .



3.10. THE RESULTS OF THE SOCIOLOGICAL SURVEY CONDUCTED AMONG THE GREATER BAKU RESIDENTS

Sociological survey was conducted by ACEP in March-April 2011 related to waste management in Baku. When selecting places for sociological survey, the areas located close to waste landfills and dump sites were taken as a basis.


Sociological survey covered 5 large settlements of Baku (Balakhany, Binagadi, Lokbatan, Yeni Surakhany and Shuvalan) and 156 resident respondents participated in the survey. Summary of the survey results are described below. The report produced on the basis of the sociological survey is given in Annex 5.
Social-demographic indicators: 93 males (59.6%) and 59 females (40.4%) respondents participated in the survey. Age group of respondents: 18-35 years old - 49 ( 31.4%), 36-45 years old - 31 (19.1%), 46-55 years old - 43 (27.6%), 56+ years old - 33 (21.1%). Marital status of respondents: married –121 (77.6%), single – 35 (22.4%). Education of respondents: higher - 66 (42.3%), secondary professional - 48 (30.8%), secondary –39 (25%), incomplete secondary – 3. Professional employment of respondents: government sector – 50 (%), municipality sector – 21 (%), private sector – 35 (.0%), pensioners – 11 (%), unemployed – 31 (%); students -8 (%). Financial status respondents: good -8 (5.1%), middle – 91 (58.3%), low - 5736.6%.
1- Information about solid domestic waste collection:
In Balakhany settlement the following picture was registered: 54.5% of respondents drop litter to waste bins, 18.2% of them drop litter to the fenced site not far from their houses, 27.3% of them drop litter to any other places. 87.9% of respondents mentioned that there are no waste bins or places for waste collection near their houses (or in yards). 45.5% of respondents informed that the waste bins located near their houses are emptied only once a week and 36.4 % of them said that the waste bins near their houses are empties very rarely.
In Binagadi settlement the following picture was registered: 33.3% of respondents drop litter to waste bins, 57.6% of them drop litter to the fenced site not far from their houses, 9.1% of them drop litter to any other places. 33.3% of respondents mentioned that there are waste bins or places for waste collection near their houses (or in yards), 54.6% of them mentioned the availability of fenced site, 12.1% of respondents informed that the waste collection places near their houses are not relevant. 21.2% of respondents mentioned that the waste bins located near their houses are emptied once a day, 54.5% - once in three days, 9.1% - once a week, 9.1% of them mentioned that the waste bins are empties rarely and 6.1% of them said that they did not pay attention.
In Lokbatan settlement the following picture was registered: 73.3% of respondents drop litter to waste bins, 10.0% of them drop litter to the fenced site not far from their houses, 16.6% of them drop litter to any other places. 73.3% of respondents mentioned that there are waste bins or places for waste collection near their houses (or in yards), 10% of them mentioned the availability of fenced site, 16.7% of respondents informed that the waste collection places near their houses are not relevant. 36.7% of respondents mentioned that the waste bins located near their houses are emptied once a day, 46.7%- once in three days, 6.7% - once a week, 3.3 % of them mentioned that the waste bins are empties rarely.
In Yeni Surakhany settlement the following picture was registered: 43.4% of respondents drop litter to waste bins, 40% of them drop litter to the fenced site not far from their houses, 16.6% of them drop litter to any other places. 73.3% of respondents mentioned that there are waste bins or places for waste collection near their houses (or in yards), 40% of them mentioned the availability of fenced site, 16.6% of respondents informed that the waste collection places near their houses are not relevant. 43.3% of respondents mentioned that the waste bins located near their houses are emptied once a day, 43.3%- once in three days, 6.7% - once a week, 3.3 % of them mentioned that the waste bins are empties rarely.

In Shuvalan settlement the following picture was registered: 50% of respondents drop litter to waste bins, 26.7% of them drop litter to the fenced site not far from their houses, 23.3% of them drop litter to any other places. 30% of respondents mentioned that there are waste bins or places for waste collection near their houses (or in yards), 30% of them mentioned the availability of fenced site, 20% of them informed that waste collection places near their houses are not relevant, 20% mentioned that there is no site for waste collection. 36.7% of respondents mentioned that the waste bins located near their houses are emptied once a day, 23.3%- once in three days, 13.3% - once a week, 13.3 % of them mentioned that the waste bins are empties rarely, 13.3 % of respondents said that they did not pay attention.

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