International Economics 1

Drafter: Shahin Bayramov
Title of Seminar: “Development prospects of Venture Capital in Azerbaijan”
Date: June 23, 2010
Location: Azerbaijan State Economic University (II study building), Baku, Azerbaijan
Length: 2 hours
Total number of speakers: 4

Opening speeches:

• Mr. Shahin BAYRAMOV, Alumni Council Events Manager in International Economics;
• Mr. Ruslan ATAKISHIYEV, PhD, Head, Studied of Economic Resources Public Union (NGO);
• Mr. Fuad ALIYEV, Director, Department for Recruiting and Practice, Azerbaijan State Economic University.

Main speakers:

• Mr. Firudin MAMMADOV, PhD-Researcher, Azerbaijan State Economic University,Topic: “Theoretical basis of Venture capital”;

• Mr. Ruslan ATAKISHIYEV, PhD, Head, Studied of Economic Resources Public Union (NGO),Topic: “Applying spheres of Venture capital and International experience”;

• Mr. Fuad ALIYEV, Director, Department for Recruiting and Practice, Azerbaijan State Economic University,Topic: “Organization and activities of Venture funds”;

• Ms. Arzu HUSEYNOVA, Deputy-head, Science Innovation Centre of Azerbaijan National Academy of Sciences, Topic: “Development of Venture capital in Azerbaijan”.

Topics elaborated:
Mr. BAYRAMOV opened the event. He presented briefly CABIR project and its main activities. He mentioned the importance of such events and discussions on different topics organized by AC CABIR-Azerbaijan. He introduced the topic of the seminar and welcomed the guests.
Mr. Fuad ALIYEV welcomed the participants on behalf of Azerbaijan State Economic University. He underlined the importance and the great attention given to these kinds of events by ASEU. He mentioned that AC CABIR-Azerbaijan has already become one of the main partners of their University. He characterized the venture capital as one of the important topics among the relevant subjects taught at the Finance Faculty of ASEU.
Mr. Ruslan ATAKISHIYEV welcomed the participants on behalf of the Studies of Economic Resources Public Union and thanked the Alumni Council for inviting them to be a co-organizer of this seminar. He briefly talked about their newly established Public Union and its main activities. He mentioned their readiness for further cooperation with the Alumni Council in organizing such kinds of t events.
I Speaker, Mr. Firudin MAMMADOVmainly focused on the conceptual basis of venture capital. He talked about the different kinds of researches conducted by Western countries, Russian and Azerbaijani economists on venture capital. The venture capital has been characterized as a long-term (three-seven years) and risky investment for development of companies working on sectors with high technologies. The main economic aspect of venture capital is that the investor becomes one of the stock-holders of the company.
II Speaker, Mr. Ruslan ATAKISHIYEV made a detailed presentation on applying aspects proper to venture capital to current conditions. The main areas where the venture capital is mostly developed are the following: information technology, computer programs and equipments, communication technologies, multimedia works, e-commerce, biotechnologies,medical equipment, diagnostic and therapy technologies, etc.
III Speaker, Mr. Fuad ALIYEV talked about the history of venture capital and the main aspects of venture funds. Being one of the alternative sources of private business financing, the venture capital was founded in the fiftieths in the United States. It spread to Europe in the seventieths. The main development stages of venture business can be classified as follows: 1) 1970–1980 (biotechnologies); 2) 1980–1990 (personal computers); 3) 1990–up to date (electron-business, e-commerce).
IV Speaker, Ms. Arzu HUSEYNOVA focused on development problems of venture capital in Azerbaijan and potential sectors where this type of investment can be applied. She mentioned that it is one of the main and most effective sources to develop the information and communication technologies sectors in our country. Quote: “A wideluse of venture capital will allow us to make Azerbaijan a regional center for information technologies”. She added that a venture capital played an important role in the development of international giants like Microsoft, Intel, Google, Compaq, Apple, etc.
All speakers underlined their readiness to answer questions and share more detailed information on different aspects of venture capital.
Mr. Sh.BAYRAMOV, thanked the speakers for their comprehensive presentations and opened the floor for comments and questions.
Mr. E.ABIYEV, Finance-Faculty undergraduate student of ASEU, Mr. E.SHIRELIYEV, a scientist of Science Innovation Centre of Azerbaijan National Academy of Sciences, Ms. E.ZEYNALOVA, a Finance Faculty graduate student of ASEU, Mr. H.MAHMUDOV, a PHD-Student and teacher of ASEU, Mr. H.HUMBETOV, a scientist of Azerbaijan National Academy of Sciences, Mr. R.ASLANOV, a leading specialist of the Credit Department of the “MuganBank” Commercial Bank, made brief interventions.
All participants actively participated in the discussions.A number of questions were answered by the speakers.
Mr. Sh.BAYRAMOV made the final remarks and thanked the participants for their attendance.
At the end, special leaflets on venture capital prepared and printed by AC CABIR-Azerbaijan have been distributed to participants.
Total number of participants: 52
Government officials: 3
NGOs: 5
Business community: 4
CABIR Alumni: 2
University teachers: 8
University students: 30

International Economics 2

Drafter: Mr. Shahin Bayramov
Title of Seminar: “Current conditions and development prospects of insurance market in Azerbaijan”
Date: October 16, 2010
Location: Azerbaijan State Economic University (II study building), Baku,
Azerbaijan
Length: 2 hours
Total number of speakers: 5
Opening remarks:
• Mr. Shahin BAYRAMOV, Alumni Council Events Manager in International Economics;
• Mr. Fuad ALIYEV, Director, Department for Recruiting and Practice, Azerbaijan State Economic University.
Main speakers:
• Mr. Nizami KHUDIEV, PhD, Professor, Azerbaijan State Economic University,
Topic: “Insurance services: definition and theoretical basis”.
• Mr. Agshin ALIZADEH, Chief Adviser, Service of Insurance Supervision,
Ministry of Finance,
Topic: “Insurance market in Azerbaijan: state policy, legislative basis and
development directions”.
• Mr. Elkhan NOVRUZOV, Sales manager, “Ravan” Insurance Company,
Topic: “Insurance activities in Azerbaijan: practical conditions, current problems and the measures to be implemented”.
• Mr. Vugar HUSEYNLI, Director, Property Insurance Department, “Atashgah” Insurance Company,
Topic: “Insurance activity: Case of “Atashgah” Insurance Company”
•Mr. Emin HUSEYNOV, Specialist, Property Insurance Department, “Atashgah” Insurance company;
Topics elaborated:
Mr. Shahin BAYRAMOV opened the event. As usually he presented briefly CABIR project and its main activities. He introduced the topic of the seminar and welcomed the guests. He underlined the importance of the insurance market for the Azeri’s economy and characterized it as one of the main sectors to be improved
and developed.
Mr. Fuad ALIYEV welcomed the participants on behalf of Azerbaijan State Economic University. He cited the event as an example of the deep cooperation existing between the University and the Alumni Council. He thanked the Alumni Council for the continued cooperation and for organizing such interesting seminar at the University. He underlined that “Insurance related activities” are among the main subjects taught at the Finance Faculty of ASEU. He informed that every year about 50 graduates of ASEU are getting diplomas in “Insurance related activities”.
Mr. Nizami KHUDIEV mainly focused on the following issues: the essence of insurance; the history, creation and origin of insurance; types of insurance services; theoretical basis of insurance; characteristics of insurance services markets; the importance of insurance for national economy; the different types of insurance, etc. He said that the first insurance companies were created at the beginning of the XX century. He also provided comprehensive information about insurance-related subjects taught at ASEU and the main insurance-related topics where the university was conducting research. At the end he spoke about some of the teaching and educational problems in the insurance field and highlighted that such kind of events are useful as they help to improve the understanding of the subject and serve as an important platform to share information and opinions.
Mr. Agshin ALIZADEH made a brief presentation on the current situation of the insurance market in Azerbaijan. The state insurance policy was characterized as one of the main element of the state finance policy of the Republic of Azerbaijan. As one of the main executive body, the Ministry of Finance is playing an important role in introducing the notion of state insurance policy in Azerbaijan. The Service of Insurance Supervision under the Ministry of Finance grants a special license for insurance related activity and controls the activity of the insurance companies. The speaker gave information about the participants of the insurance services market in Azerbaijan. He mentioned that all the insurance-related legislative acts were prepared and adopted by the Ministry of Finance, the Cabinet of Ministries and the National Assembly (Parliament) of the Republic of Azerbaijan. The Ministry of Finance permanently prepares special programs and recommendations for the insurance markets developments in Azerbaijan.
Mr. Elkhan NOVRUZOV spoke about the practical aspects of insurance activities in Azerbaijan. He gave information on the insurance services (property insurance, car insurance, life insurance, medical insurance, etc.) offered by its company. As a main problem he underlined the disbelief existing between the clients and the insurance companies. People don’t belief that they will obtain sufficient financial compensation by the insurance after having an accident covered by the insurance. In the southern regions of Azerbaijan almost all rural population l don’t insure their homes, life, cars, and so on. It’s very important to enlighten the masses about insurance and its main advantages.
Mr. Vugar HUSEYNLI presented brief information about the “Atashgah” Insurance Company, its main activities in the insurance services market of Azerbaijan. Lack of office branches of the company in the regions was indicated as a central problem for the insurance market development in Azerbaijan. The huge oil revenues, infrastructural development, strengthening of construction works are substantiating the insurance services development in all parts of Azerbaijan.
Mr. Emin HUSEYNOV talked about, insurance in the engineering sector, special features of car insurance, conflicts on insurance contracts, conditions and courts’ proceedings, etc.
Mr. Sh.BAYRAMOV, Alumni Council Events Manager in International Economics, thanked the speakers for their interesting presentations and opened the floor for comments and questions. Mr. A.BAYRAMOV, Head of Mardakan Branch of McDonalds Company, Mr.
K.MAMMADOV, Head of Nasimi Branch of “MuganBank” Commercial Bank, Mr. H. MAHMUDOV, teacher-lecturer at the Department of International Economics of ASEU, Mr. N.KHUDIEV, Professor ASEU, three graduate and two undergraduate students of ASEU, made brief interventions.
Most relevant questions/answers: Questions: What can you say about the price setting in the car insurance sector? Are there any examples of large-scale insurance compensation in Azerbaijan? What kinds of penalties are implemented against to insurance companies for violation of insurance procedures? Answers: Mr. V.HUSEYNLI explained the process of price setting procedures in the cars insurance sector. The total of car insurance is calculated on annual basis. The car insurance premium decreases after the first car accident. Mr. E.HUSEYNOV informed that “Atashgah” Insurance Company paid about 14 million AZN to the “Lukoil” Oil Company. Mr. Agshin ALIZADEH mentioned that a number of insurance companies were closed or penalized for violating insurance procedures in Azerbaijan. The activities of insurance companies are supervised by the relevant department of the Ministry of Finance. Mr. Sh.BAYRAMOV made the final remarks and thanked the participants for their attendance.
Total number of participants: 47
Government officials: 2
NGOs: 2
Business community: 6
CABIR Alumni: 3
University teachers: 4
University students: 30

International Economics 3

Drafter: Shahin Bayramov
Title of Seminar: “Implementation problems of International Financial (Accounting) Reports Standards in Azerbaijan”
Date: December 23, 2010
Location: Azerbaijan State Economic University (II study building), Baku, Azerbaijan
Length: 2 hours
Total number of speakers: 4

Opening speeches:

• Mr. Shahin BAYRAMOV, Alumni Council Events Manager in International Economics;
• Mr. Ruslan ATAKISHIYEV, PhD, Head, “Studying of Economic Resources” Public Union (NGO);
• Mr. Fuad ALIYEV, Director, Department for Recruiting and Practice, Azerbaijan State Economic University.

Main speakers:

• Dr. Vagif GULIYEV, Vice-Dean, Faculty of Accounting, Azerbaijan State Economic University, Expert on international accounting standards, Topic: “Theoretical basis of International Financial Reports Standards”;

• Mr. Radil FATULLAYEV, Deputy-Head on financial issues, “Studying Economic Resources” Public Union, Expert on international accounting standards, Topic: “Implementation problems of International Financial Reports Standards at commercial and non-commercial companies”;

• Mr. Giyas MAMMADOV, Head, Association of Azerbaijani Accountants, Topic: “Current implementation status of International Financial (Accounting) Reports Standards in Azerbaijan”;

• Mr. Anvar HAMIDOV, LINK&A Company, Topic: “Gunesh Accounting program and its implementation mechanism in Azerbaijan”.
  

Topics elaborated:
Mr. Shahin BAYRAMOV opened the event, welcomed the guests and presented briefly CABIR’s main activities. He underlined the importance of such events and discussions on different topics organized by AC CABIR-Azerbaijan and introduced the topic of the seminar.
Mr. Ruslan ATAKISHIYEV welcomedthe participants on behalf of the “Studying of Economic Resources” Public Union and thanked the Alumni Council for inviting them to co-organize this seminar. He briefly talked about the implementation problems of international financial (accounting) reports standards in Azerbaijan and the work done by his Union in this field.
Mr. Fuad ALIYEV welcomed the participants on behalf of Azerbaijan State Economic University and mentioned the importance of this seminar both for University students and teachers. He mentioned his confidence that the graduate and undergraduate students will actively participate in the seminar and will benefit from the discussions.
The first speaker, Dr. Vagif GULIYEV, mainly focused on the conceptual and practical basis of venture capital. The international financial (accounting) reports standards have been characterized as one of the main elements of the modern business activity of all kinds of entrepreneurship subjects as well as state-owned institutions. He mentioned that the Azerbaijani Government has implemented many measures in the field of international financial (accounting) standards since it got its independence in 2001. A number of Presidential decrees, decisions by the Cabinet of Ministries, and orders by the Ministry of Finance have been adopted. Azerbaijan decided to start the implementation of international financial (accounting) reports standards in 1994. It was motivated by the increase of foreign direct investments and global energy companies coming to Azerbaijan.
The initial task was a translation of international financial (accounting) standards and harmonization of national legislation in accordance with those standards. It was a challenging task and the following measures needed to be implemented to reach this goal: to prepare national financial (accounting) reports standards; to improve the skills of local accountants by providing special training courses on international financial (accounting) reports standards; to re-organize the education-training mechanism on international financial (accounting) reports standards.
The second speaker, Mr. Radil FATULLAYEV, made a detailed presentation on implementation problems of international financial (accounting) reports standards in Azerbaijan. He comparatively analyzed the differences between the Western and Soviet financial (accounting) systems. As a main problem he mentioned the lack of sufficient information on international financial (accounting) reports standards in our society. It is a fact that right business decisions are based on correct information that is mainly drawn from financial (accounting) data. Of course the characteristics of top-managers, investors, clients, state and non-state partners should be taken into account during the implementation of international financial (accounting) reports standards.
The third speaker, Mr. Giyas MAMMADOV, talked about the Association of Azerbaijani Accountants and its main activities. He briefly described the essence of international financial (accounting) reports standards. It’s a unified and harmonized framework for financial aspects of business activity. He listed the chronology of measures implemented by Azerbaijani Government in this direction for the last 17 years. He mentioned the importance of adoption of Working Plan on Implementation of International Financial (Accounting) Reports Standards in Azerbaijan in 1993.
The fourth speaker, Mr. Anvar HAMIDOV, focused on special features of international financial (accounting) reports standards. As a main implementation problem of these standards in Azerbaijan he underlined a weak competition environment. At the same time, a poor development of national market of securities is also negatively impacting on the implementation of international financial (accounting) reports standards. He briefly presented the new “Gunesh” accounting program (computer based) prepared by his company and its implementation mechanism in Azerbaijan. They have just started to implement this program in some local companies and it will be improved regularly.
All speakers stressed their readiness to answer questions from the audience.
Mr. Sh.BAYRAMOV, thanked the speakers for their interesting presentations and opened the floor for comments and questions.
Mr. H.MAHMUDOV, a PHD-Student and teacher of ASEU, Mr. R.ASLANOV, leading specialist of the Credit Department of the “MuganBank” Commercial Bank, Mr. R.GULIYEV, leading finance manager at the “Old City Department” under the Cabinet of Ministries of Azerbaijan, Mr. N.ISMAYILOV, dean of the Accounting Faculty of ASEU, Mr. V.RAMAZANOV, chief finance manager at the Pricewaterhouse Coopers Azerbaijan, Mr. N.ABBASOV, a graduate student of ASEU,made brief interventions.
Most relevant questions/answers:
Questions: Are there translations of documents on international financial (accounting) reports standards into Azerbaijani? What can you say about the concrete positive results of the implementation of international financial (accounting) reports standards in Azerbaijan?
Answers: Dr. Vagif GULIYEV informed that a limited number of documents on international financial (accounting) reports standards have been translated into Azerbaijani. He personally thinks that the quality of the translations needs to be improved. There is a great necessity for mass and professional translation of relevant documents on international financial (accounting) reports standards.
Mr. Giyas MAMMADOV answered the second question and listed the following as concrete positive results of the implementation of international financial (accounting) reports standards in Azerbaijan: development of national entrepreneurships; increased level of transparency in financial (accounting) reports; development of securities market, etc.
Mr. Sh. BAYRAMOV made the final remarks and thanked the participants for their attendance.
Total number of participants: 42
Government officials: 2
NGOs: 4
Business community: 7
CABIR Alumni: 3
University teachers: 6
University students: 20