The topic of the gathering was as follows: Management of the Anticipated Oil Revenues of Azerbaijan and the Assets of the Oil Fund

Participating in the event were more than 30 activists from local NGOs, as well as teachers’, municipality and students’ circles in Mingachevir. Also attending the gathering were Mr Asgar Ahmad, the project focal point and head of the Democratic Values Protection Fund, Ms Ruhangiz Huseynova, the organiser of the event, and speaker Mr Hamid Xalilov, the head of the Centre for Monitoring of and Education on Socioeconomic Rights.

Delivering the opening speech, Mr Asgar Ahmad asked the audience to introduce themselves briefly and gave an insight into the significance of the event, as well as EITI process itself, history of establishment and operation of the coalition Increasing Transparency in Extractive Industries. Then the floor was handed over to Mr Hamid Xalilov. He addressed the audience on the oil incomes to be earned by Azerbaijan, and the management of the assets of the Oil Fund. His detailed presentation raised heated, but interesting discussion.

The issues that concerned the participants the most were the following:

1. How should oil revenues be used for the benefit and well-being of future generations?

2. The ongoing situation with the stock of wells of and hydrocarbons production by SOCAR.

3. What are the areas of spending of the transfers to the State Oil Fund of the Azerbaijan republic (SOFAR)?

4. Why is Azerbaijan’s share small in major oil contracts (production-sharing agreements)?

5. How many years will it take to achieve the anticipated return from the spending of oil proceeds on revitalization of the economy?

6. With respect to the effective use of petrodollars, what leverage does the ITEI Coalition have over the Government?

7. Despite the growth of the amount of oil revenues, why poverty is still a problem to be addressed in the country?

8. Are oil revenues spent correctly?

9. It the Dutch Disease avoidable?

10. What is the corresponding experience of other countries rich in hydrocarbon resources?

11. What would be the role of oil incomes in the lives of young people and when would young people feel that role?

12. Despite being a country rich in oil reserves, a rise – or a series of hikes – in the price of petroleum products yet aggravates the status of the population.

13. What should ordinary people do in order to learn to know how oil incomes are managed, and what is contemplated by the ITEI Coalition in this respect?

Observations from discussions:

1. Participants acknowledge that for the first time they have learnt a lot about the oil policy of Azerbaijan through the implementation of this gathering.

2. Many say that they support transparency and civilian oversight initiatives of the ITEI Coalition.

3. Participants cast doubt on oil revenues as means of changing their lives.

4. They don’t believe that the non-oil sector will develop by means of spending of petrodollars.

5. There is a weak will of manifestation of public initiative and a considerable lack of information among the population. They do see themselves as being involved in the solving of problems and expect others to find the corresponding solution.