MJM Sear

Azerbaijan’s Recent Steps Towards Becoming A Regional Digital Hub

Mohammad J Sear

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Futurist and Digital Government Advisor

Over the years, Azerbaijan has embarked on significant projects such as the Baku–Tbilisi–Ceyhan oil pipeline, Southern Gas Corridor, and Trans-Caspian International Transportation Route. However, recently, Azerbaijan has made significant progress in becoming a digital hub. A lot of countries and companies have also expressed their support for Azerbaijan’s initiative.

Numerous advances have been made to bring the Azerbaijan digital initiative to fruition. Also, promoting digitization reforms in Azerbaijan is meant to improve the overall digital ecosystem, improve economic welfare and build a strong digital government. To make Azerbaijan a regional digital hub, several necessary reforms have been made in the public administration. Hence the Azerbaijan government took the initiative to launch the following:

●     Electronic agricultural information system

●     State control information system

●     Azerbaijan quality digital trade hub,

●     E-court system

●     Education

●     E-social services

●     E-property and land cadaster systems

The Azerbaijan government welcomes the idea of digital transformation, and so far, efforts have been made to develop this idea. Thus, it is safe to say that digital transformation is one of the Azerbaijan government’s main priorities, at least for the next decade.

The Role of ICT in Developing the Idea of Digital Transformation in Azerbaijan

Information and Communications Technology also plays a significant role in the growth of the Azerbaijan economy apart from the oil and gas industry. Hence, the Azerbaijan government is encouraging digitization reforms to improve the regional digital ecosystem and economic welfare of the nation. As part of this reform, the Azerbaijan government seeks to improve the country’s IT market by increasing digital resources, e-government programs, and expanding e-services.

The Azerbaijan government also launched several technological parks across the country to facilitate tax breaks and exemptions for companies. Although these initiatives and projects are meant to liberalize the telecommunications sectors, they need improvements to make Azerbaijan a better regional hub.

Through the use of ICT (E-governance), the Azerbaijan government has been able to work well with business owners. The Ministry of Taxes has introduced paying tax online, the Customs Committee has launched electronic application and payment services, and the “Asan Imza” mobile electronic signature technology enables users to use their phones as e-identity cards and a means of signing documents. With this development, foreign businesses with similar solutions may discover new opportunities in these e-government efforts.

Also, the Azerbaijan government has taken conscious steps to develop its satellite services to improve its regional commercial telecommunications capacity. In 2013 and 2018, Azercosmos, Azerbaijan’s space agency, obtained the U.S produced telecommunications satellites and launched them successfully.

E-governance in Azerbaijan has the potential to provide multiple solutions and opportunities both in the commercial sector and other sectors. Different sectors will experience a positive change; for instance, companies that are expert in satellites may benefit from Azercosmo’s need to employ new capabilities.

Other Azerbaijan Strategic Policies Towards Digital Governance

Alongside other domestic digitalization reforms, the Azerbaijan government introduces trans-regional digital mega projects. One of these mega projects includes the “Digital Silk Road” project, implemented in 2018 and ranked among the top five infrastructure projects in Asia.

This project aims to develop a modern transit fiber-optic infrastructure network that will link Europe, Georgia, and Azerbaijan to the Central and South Asian markets. The “Digital Silk Road” will improve the region’s digital ecosystem and make it up to par with the world’s advanced standards. Also, it will reduce reliance on foreign Internet providers and increase access to several digital services for the whole population in Asian regions.

Also, on November 28, 2019, the Azerbaijan government signed an interstate agreement with Turkmenistan to construct a main fiber-optic cable line along the bottom of the Caspian Sea. The construction of this cable line will form a Digital Silk Road between Frankfurt and Mumbai, with Azerbaijan as its base. The main line will ensure internet traffic through all the connected countries.

Since Azerbaijan is providing standard digital services to the Caucasus, Central Asia, Middle East, and South Asia, coupled with other surrounding regions, then Azerbaijan can qualify as a telecommunication corridor under China’s “Belt and Road” initiative. Hence, Azerbaijan plays a significant role in the fiber-optic backbone infrastructure network connecting Europe to other Asia countries.

The framework of these projects is targeted at creating a digital corridor connecting Europe and Asia with Azerbaijan as the base. Therefore, Azerbaijan has to be a digital hub to accommodate all these projects. If the Azerbaijan government keeps up with this pace, then in a short time, it will be recognized as a fully digital government. This will, in turn, create new opportunities and chances not only for Azerbaijan but for other Central Asian countries as well.

Conclusion

Digital governance is the best way the Azerbaijan government can keep up with the current digital trend worldwide. E-Governance in Azerbaijan will improve the economy, society and infrastructures.

Sources:

https://ereforms.gov.az/en/media/meqale-ve-musahibeler/azerbaijan-pursues-strategic-digital-transformation-oriented-policies-towards-regional-digital-hub-425

https://jamestown.org/program/azerbaijans-latest-steps-toward-becoming-a-regional-digital-hub/

https://www.privacyshield.gov/article?id=Azerbaijan-Information-and-Communications-Technology

About the Author

Mohammad J Sear is focused on bringing purpose to digital in government.

He has obtained his leadership training from the Harvard Kennedy School of Government, USA and holds an MBA from the University of Leicester, UK.

After a successful 12+ years career in the UK government during the premiership of three Prime Ministers Margaret Thatcher, John Major and Tony Blair, Mohammad moved to the private sector and has now for 20+ years been advising government organizations in the UK, Middle East, Australasia and South Asia on strategic challenges and digital transformation.

He is currently working for Ernst & Young (EY) and leading the Digital Government practice efforts across the Middle East and North Africa (MENA), and is also a Digital Government and Innovation lecturer at the Paris School of International Affairs, Sciences Po, France.

As a thought-leader some of the articles he has authored include: “Digital is great but exclusion isn’t – make data work for driving better digital inclusion” published in Harvard Business Review, “Holistic Digital Government” published in the MIT Technology Review, “Want To Make Citizens Happy – Put Experience First” published in Forbes Middle East.

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