Progress on the Eve of the Sample Clauses

Progress on the Eve of the. Millennium A general profile of economic disparity remains today, much inherited from the "emergent years"of transition. There are material and human consequences of war, massive refugee problems, displacement of nearly percent of the population, and foreign occupation of 20 percent of the nation's land mass. These huge economic and human displacements require equally huge humanitarian and economic interventions, which marks the efforts of most international organizations as the century closes and a new one emerges. The major difference between the "early" stage of transition and the "recent" is that the nation's prominent comparative advantage of petroleum resources attracted significant foreign capital. Most FDI was channeled into a very narrow range of the economy, itself controlled by relatively few in the most advantageous positions. These individuals often were able to exploit oil interests and corrupt the economy. Corruption persists, but this may be little more than an extension of corrupt government that existed during the Soviet era. The presence of foreign investments coupled with ineffective checks-and-balances following independence probably accelerated the problem. In effect, the chaos of years of early transition has bred a pervasive environment of corruption. At the same time, privatization has bogged down in an unmanageable process (and with a voucher system that borders on a numbers racket). The system, once laden with nearly 250 licensed (few of any legitimacy), now has 70 active banks, four of which are state-owned and control more than 60 percent of all portfolio assets. The only bank that is a viable candidate for privatization is the International Bank of Azerbaijan. However, as this report will several banks are making progress, developing agricultural credit programs, and their professional capabilities. Although government appears to be stable at the moment, it is stable in the sense that a powerful base of politicians hold very tight reins on decisions, ministries, and justice. The tax system functions much in the self-interest of those in control and cannot administer tax policies or collect fiscal revenues efficiently. The government is in deficit and cannot underwrite investment or infrastructure growth, and the monetary system, although able to support the currency, does not provide liquidity or adequate institutional capability for capital market development. The government has passed a number of important laws, and it conti...