OSCE Office in Baku

The Economic and Environmental Unit of the OSCE Office in Baku supports Azerbaijan’s efforts to promote economic good governance and to enhance environmental security in accordance with OSCE commitments and related international standards.

Economic good governance
After nearly a decade of rapid economic growth fuelled by the energy sector, in 2011 Azerbaijan started to experience a decrease of oil and gas revenues. This decline underscores the pressing need for more diversified, balanced and sustainable economic development. Thus, the government has been trying to strengthen non-energy industries by enhancing private-sector development and economic good-governance practices. Correspondingly, the Unit promotes international best practices for a positive business and investment climate, in co-operation with the Ministry of Economic Development, universities, civil society and international organizations.

Since 2011, the Azerbaijani Government has been focussing on increasing the transparency and accountability of public services, thereby combating corruption. Thus, the Unit has been supporting the government's contribution to the development of e-governance and related monitoring mechanisms by improving the government's capacity to measure progress on e-governance in accordance with international best practices. The Unit also assists in building the capacity of the Financial Monitoring Service of the Central Bank with respect to the supervision of suspicious transactions, and it has been reinforcing government efforts to implement legislation on money laundering/combating the financing of terrorism,

In the area of small and medium-sized enterprises (SMEs), the Unit supports two legal advice centres for SMEs in Baku and Mingachevir, which provide free legal advice and training opportunities for entrepreneurs and promote dialogue between authorities and the business community to address obstacles to business, including corruption cases. The centres also promote public-private dialogue in relation to investment-climate reform.

Environmental security
Azerbaijan inherited significant environmental challenges from the Soviet Union: some are local, others involve neighbouring states, but the most notable challenges are related to the safety of transboundary water resources for drinking and irrigation. On water-quality issues, the Unit supports a new participatory community-based council on water-basin management for the Ganykh river basin near the Georgian border. The Unit also works closely with the Ministry of Emergency Situations on preparing for, and responding to, oil spills.

Within the Environment and Security Initiative, the Unit works closely with the Office of the OSCE Co-ordinator for Economic and Environmental Activities, as well as with the Ministry of Ecology and Natural Resources, Ministry of Emergency Situations, civil society and international organizations to promote environmental co-operation and to address environment and security challenges. In particular, the Unit has contributed to dialogue on water policy in Azerbaijan, has worked to improve the government’s capacity to prevent and manage wildfires, and has facilitated consultations on a new bilateral water agreement between Azerbaijan and Georgia.

Further, the Unit supports Azerbaijan’s implementation of the Aarhus Convention, and seeks to create an enabling environment for civil society organizations (CSOs) through the Civic Action for Security and Environment programme, which builds capacity and provides funding to CSOs for grassroots initiatives related to environmental protection across Azerbaijan.