ON İMPROVEMENT OF STATE REGULATİON SYSTEM OF AGRARİAN İNDUSTRY PRODUCTS EXPORT

Рубрика конференции: Секция 20. Экономические науки. Специальность 08.00.00
DOI статьи: 10.32743/SpainConf.2023.1.27.351461
Библиографическое описание
Hajiyev G.B., Salimova A.A. ON İMPROVEMENT OF STATE REGULATİON SYSTEM OF AGRARİAN İNDUSTRY PRODUCTS EXPORT// Proceedings of the XXVII International Multidisciplinary Conference «Prospects and Key Tendencies of Science in Contemporary World». Bubok Publishing S.L., Madrid, Spain. 2023. DOI:10.32743/SpainConf.2023.1.27.351461

ON İMPROVEMENT OF STATE REGULATİON SYSTEM OF AGRARİAN İNDUSTRY PRODUCTS EXPORT

Galib Bahram Hajiyev

Candidate of Economic sciences, associate professor Department of «Economics» of Azerbaijan State University of Economics (UNEC),

Azerbaijan, Baku

Aygul Aydin Salimova

Azerbaijan Ministry of Agriculture, PhD student of the Agricultural Economics Research Center

Azerbaijan, Baku

 

ABSTRACT

The main purpose of the article is to develop proposals for improving the system of state regulation of the export of agricultural products, taking into account the peculiarities of the national economy in the modern economic environment. The scientific and theoretical and methodological sources, normative and legal base were used in connection with the problem investigated. The state of the system of state regulation of export of agricultural products in the country in the current economic conditions has been studied. In the context of globalization in recent years, it has been suggested that the key principles of a policy of effective integration of the country's economy into the world economy system are, as the essence of the article shows. At the same time, the advantages and prerequisites are also given to it.

In the current economic climate, without regard to the real situation in the agrarian industry of Azerbaijan and the non-commercialization of agro-business, the author considers that joining the WTO in agriculture is a hasty step, which, in his opinion, cannot meet national interests. As a result of the article, proposals were developed to identify ways to improve the system of state regulation of export of agricultural products. The article discusses the realities of the state regulation system of export of agricultural products in the context of improved foreign relations as a result of successful reforms in our country and ways to improve them.

 

Keywords: agrarian area, industry, state regulation, product, export, system, improvement.

 

Introductıon

In the current economic environment in which the market principles are used in the Republic of Azerbaijan, the increase in exports of agricultural products is possible due to its adaptation to existing requirements. The activities of business entities of different property categories in the agrarian sector are based on the creation of private organizations. In such an economic environment, the essence of socio-economic relations in the agrarian sector changes when the development of export-oriented entrepreneurship is at the forefront. Given the favorable business environment in the agrarian sector, it is possible to predict the development, processing, storage, transportation, delivery and export of agricultural products. Effective organization of production and export is considered as an important factor in the formation of the agrarian sector, and high competitiveness is ensured in the business environment. Improvement of the system of state regulation of export of agricultural products determines the provision of food security of the country and social status of the population.

Thanks to the reforms implemented in the country in the context of new economic relations, there was a need to improve the foreign relations in the entrepreneurial environment in the agrarian industry. The Strategic Roadmap for the National Economic Perspectives of the Republic of Azerbaijan, approved by the Decree of the President dated December 6, 2016, as well as the Strategic Roadmap for the Production and Processing of Agricultural Products in the Republic of Azerbaijan, have been identified [41, 42]. In order to improve the system of state regulation of export of agricultural products in our country, it is necessary to create opportunities for such processes as development of business structures in the agrarian sector, improvement of food policy and high competitiveness of national business in the world market. From this point of view the choice of the topic of the article and its main directions are determined on the basis of the above-mentioned issues.

Situation of the system of state regulation of export of agricultural products in modern economic conditions

Implementation of the economic policy pursuant to the regulation of foreign activity of the state in the agrarian area is possible, first of all, through the improvement of the real situation in import-export operations. Thus, during the former Soviet Union, all the needs of the population and businesses in the agricultural sector were met in a centralized manner, while the export of agricultural products generally had a raw advantage. As it is clear, the advantage of raw materials in the export of agricultural products, rather than the finished product, does not contribute to a positive result. In the best case, the country manifests itself as a raw material exporter of agricultural products, and the global marketplace is changing, and eventually becomes a commodity exporter's markets. In this regard, the necessary changes and changes in the structure of commodity export should be implemented to ensure the efficiency of foreign trade, to increase the volume of state budget revenues from export revenues. Considerable increase in the specific weight of agricultural and food products in the structure of exports is a key factor in achieving a positive balance in the import-export balance [9, 13, 14, 19, 34].

The customs system plays a special role in the protection of economic security in the country and the diversification of its foreign trade. The customs system of our country was created in accordance with the policy defined by the national leader of our nation H.A Aliyev and has developed and has become one of the main attributes of our independence. Due to the consistent economic policy of the state in recent years, significant steps have been taken towards the reorganization of the customs system, its material and technical basis has been strengthened, legislative acts regulating customs and differentiated customs and tariff systems have been established, anti-smuggling and anti-smuggling [4, 5, 17, 21, 23, 29].

In accordance with the Decree of the President of the Republic of Azerbaijan "On Measures for Accelerating Socio-Economic Development in the Republic of Azerbaijan" in 2003, progress has been made in our country according to the 4 times adopted State programs on socio-economic development of the regions [8, 22, 39, 40]. Dynamic socio-economic progress in our country in the current economic environment and integration into the world economic system will improve the state customs system, bring its logistical and technical base in line with modern requirements, and fully integrate customs system of the Republic of Azerbaijan in all directions. further strengthening its importance in socio-economic development.

The Customs Code of the Republic of Azerbaijan dated June 24, 2011, approved by the Law of the Republic of Azerbaijan No 164-IVQD and other normative legal acts, adopted in order to improve the state regulation of exports in our country, were of special importance [7]. Since that time, our country has entered a phase of rapid socio-economic development, its economic potential has improved, and the living conditions of the population have improved significantly. In the past, our country's international relations have become much more diversified, joining some international conventions and joining international organizations.

Expansion of the country's foreign trade geography, increase in the volume of import-export operations and integration of the Republic of Azerbaijan into the international economic system make it necessary to improve the legislation and regulations in the area of ​​customs affairs. In this regard, the legal framework for customs clearance should be improved, as well as the adoption of a new Customs Code, based on the practice of the world countries in the sphere of customs affairs and the provisions of the international conventions adopted in this area. In the context of the improvement of the legislative acts, the provision of their direct impact should be taken as a basis.

In the context of market principles, special emphasis should be placed on enhancing production cooperation of national entrepreneurs with foreign entities in order to adapt the export of agricultural products to the strategic interests of the state and to increase its efficiency [6, 35, 44]. These include Greenaway and Milner [12]; Guerson et al. [14], Aleksandratos and Bruinsman [3], Cooperatively, as shown in the works of Makarova et al. [27], first of all, it is necessary to create conditions for the production of agrarian industrial products that are competitive on the world market and its successful sales channels. No. 231 dated January 23, 2007 "On State Support to Agricultural Producers", dated January 23, 2007, for the development of agricultural production, which acts as the main supplier of raw materials for the production of agro-industrial products [33]. The Decree of the President of the Republic of Azerbaijan “On Additional Measures for Improvement of Agricultural and Food Market Activities” has been of great economic importance [22, 32, 33].

In line with the economic realities of today's global world, foreign trade involves the creation of mutually beneficial trade, import and export regimes, eliminating discriminatory trade restrictions and relations with all foreign entities, irrespective of their development status and economic regime. new restrictions should not be formed.

In addition to improving the structure of the successful foreign trade of the state in the agrarian sector, it is facilitating access to modern key assets on the world market by business entities performing national production. For this purpose, economic, financial and marketing support should be provided to national entrepreneurs in the agrarian sector, and access to agrarian products should be provided to areas and markets where monopoly is felt.

Either national entrepreneurs [1, 10, 11, 28] or Mohalen [31], Mendez et al. [30] As in the works of Revenko [36], the practice of developed countries shows that business entities experiencing the economic crisis in the agrarian sector face severe financial difficulties and their access to the world market. In this regard, it is advisable to use foreign exchange and financial regulators of the state, to regulate relations with foreign countries and international credit institutions in order to overcome the financial difficulties of exporting agribusiness entities. Therefore, all the resources will contribute to the formation of an effective system for protecting the country's foreign trade interests.

Execution of foreign orders by national business entities is limited by their participation in the same level of cooperation in the world market. In some cases, national business entities, with their involvement in foreign trade, enter into contacts with their employees for financial mismanagement, and avoid large-scale capital gains, as well as tax evasion. The state control over foreign economic activity and foreign exchange transactions, as well as audits of the financial and economic activities of business entities is of particular importance for eliminating such cases. State control over foreign economic relations should not be limited to measures to ensure transparency of financial and currency operations, but also to protect the economic interests of national producers in foreign markets.

Successful exports in the agrarian sector provide a viable opportunity for the country's economy to be stabilized. The effectiveness of this process, as well as its many difficulties, is due to the fact that the country is specialized as a raw material exporter. Therefore, the successful implementation of exports in the agrarian sector will improve the country's interests in foreign activities. For this purpose, it is important to revise export incentives, first and foremost, to identify the exacerbated regime of exemptions, and to improve the international marketing capabilities of exporting agribusiness entities to keep up with new and emerging markets.

It is important to agree on the establishment of a favorable trade regime for all employees in order to abolish discriminatory attitudes towards export agencies in line with WTO requirements [2, 26, 37, 38, 43, 45]. Given the importance of the state exercising the functions of a monopoly importer under market-based principles, the most important export priority in the agrarian sector is the priority. Despite the fact that the regions of our country specialize in agrarian products, one of the most important problems is the import of grain to the country.

From our research, we can conclude that the self-sufficiency of local agricultural products is not more than 75% in the best way to meet the needs of the country's population [10, 15, 18, 20, 24, 25]. It is worth noting that in the recent past, one of the reasons for sufficient self-sufficiency of national production was the existence of cooperative supply enterprises. These suppliers supplied the products from manufacturers in the regions at affordable prices and sold it to the government and processing agencies at the time that they were affordable. In modern conditions, thanks to the suspension of these cooperative supply organizations, the agricultural producer is forced to turn to the city for failing to sell its produce locally. This often results in damage due to high transportation and other costs. Adding to this process is the sale of agrarian products imported from the national product at a lower price than the national market, and the national entrepreneur does not intend to continue with it. Thus, agribusiness entities are unable to pay their debts. All of these bad effects are reflected in the state budget, as purchases from foreign countries become a reality as they do not meet national production needs.

Gradual restriction on import of grain and other agrarian products to compensate for the demand of national entrepreneurs, subsidize existing import subsidies, to stabilize the complex situation in the agrarian sector and create a more favorable environment in the foreign economic relations of the Republic of Azerbaijan. need to be motivated.

Improving the tariff system while regulating the export of agro-industrial products, defining the optimal level of foreign competition in the local market, neutralizing the dominance of foreign entrepreneurs in the local market, based on the advantages of taxation and pricing, and the regional characteristics of the country. To this end, the application of temporary tariffs on the amount of deviation between the local and world prices of the main raw materials of the agricultural products can lead to the relative compensation of the natural failure of the Republic of Azerbaijan in the import of agricultural products. Increasing control over the export of strategically important agricultural products, the use of quotas and licenses, the imposition of dumping prices in export operations, the elimination of restrictions on the movement of institutions from export transactions, the effective foreign trade relations of the state to liberal, as well as export oriented. service. All this will also allow the state to form a limited association of private exporters and prevent monopolistic export operations.

The formation of a reliable and active financial and credit mechanism in the national economy and the use of foreign exchange controls will not allow foreign capital inflows, which will be useful for the implementation of structural reforms in the agrarian sector. One of the factors of the effectiveness of our foreign activity as one of the countries of the former Soviet Union is the normalization of economic relations with the former socialist countries on the same grounds and mutually beneficial terms. The collapse of the long-term mutual economic relations caused by the collapse of the Soviet Union resulted in a decline in production in all post-Soviet countries and the loss of mutually beneficial markets. The only issue that should be taken into account is that the most profitable market for grape-wine products, which is a major part of the country's agrarian exports, was considered the Russian market. The collapse of economic relations has deprived not only wine, but also their access to traditional markets, and has created conditions for the destruction of vineyards in general. Recovery of economic relations between the former socialist republics creates conditions for free movement of goods, capital and labor in that area, as well as the majority of producers in the regions of the country are able to recover more favorable and efficient markets during the season.

Basic Principles of Effective Integration of the Economy of the Country into the World Economy System in the Globalization

Effective integration of the national economy into the world economic system for possible expansion and development of exports is an essential prerequisite for socio-economic development in any country under current economic conditions. The importance of integrating the country's economy into the world economy is even more important for our country. Thus, after the acquisition of sovereignty, we faced the need to jointly solve two major problems in the economy of our country: 1) creation of a national economic system, preserving sovereignty of the most important country; 2) substantially reshaping economic relations in an environment where market principles are used. First of all, the problem is limited by the fact that it has strong natural economic resources and maximizes the utilization of real resources in our country due to the fact that the former Soviet Union has attracted the maximum amount of resources from the former Soviet Union to the WPC. The economy, which was created as an inefficient, inefficient, "system", is inherited. Such shortcomings and disparities in the economy have adversely affected, and are still, affecting economic progress, optimal employment, improved living conditions, environmental protection, and so on.

It is clear from this that in such an economic environment, strengthening the economic foundations of sovereignty and ensuring socio-economic development in our country requires, first of all, the establishment of a whole economic system. The solution of this problem aims at the creation of the economic system in accordance with the new principles, the involvement of economic resources of the country in the social development of the population. improvement of existing advantages, formation of an advanced economic security system, and so on. Creation of market infrastructure, formation of multi-type property, provision of independence of sellers and buyers, creation of conditions for free competition, etc. implies that. Also, some other factors have made it difficult to solve these problems: the forced war conditions and the consequences created by it (the occupation of 1/5 of our lands in violation of the territorial integrity of the Republic of Azerbaijan, the socio-economic problems of over 1 million refugees and refugees), sudden development of decades of economic relations, as well as production and cooperative relations, difficulties in access to world markets, as well as traditional markets, etc.

In the current economic environment, it is impossible to solve the numerous socio-economic difficulties (especially in a lack of investment) that are interconnected with the current state of our economy. It is clear from this that efficient integration of national economy into the world economy through the development and promotion of export through favorable means is an important factor in ensuring socio-economic progress in our country in current economic conditions. But it is also a reality that profitable access to the world economic system is not automatically possible. To this end, it is necessary, first of all, to develop and implement a policy of integrating the national economy into the global economic system.

One can conclude by examining the processes taking place in the global economic system in the context of globalization in recent years and the practice of countries that have been among the exporters of the world, leading to economic growth in the post-World War II period. should consist of the following [1, 16, 18]:

  • the mechanism of regulation of foreign economic relations in the country should be brought in line with international law and world practice;
  • the structure of the economy and foreign economic activity should be created in accordance with the economic potential of the country, its local needs and its advantages in international division of labor;
  • a useful opportunity should be created to study the best international practices;
  • should be involved in international and regional economic organizations that are in line with the national interests of the country;
  • foreign activity should always take into account the strategic goals and achievements of innovation, and the initiative to use resources efficiently;
  • economic security of the country should be provided and etc.

Advantages and prerequisites for the effective integration of our country into the world economic system

Studies show that our country has real conditions to effectively integrate the economy into the world economy, and its skillful use of these conditions can play an important role in addressing a number of important socio-economic challenges facing the national economy and help our country develop its future [10, 17, 25, 28]. With the aim of creating a favorable business environment, we can show the following as the advantages and prerequisites for the effective integration of our country into the world economic system:

  1. In addition to the favorable geographical and transport potential of our country, there is a developed international network of transport network that facilitates the establishment of intensive relations with foreign countries;
  2. Our country has strong natural and economic resources;
  3. Our country has industrial businesses, production areas and infrastructure facilities with some modern feasibility studies;
  4. The country has strong scientific potential and qualified specialists in some areas;
  5. Realization of economic policy in the country, in which market principles are used;
  6. Taking organizational and management measures to attract and protect foreign investments in the country, to liberalize and develop foreign trade, and to adopt and implement some other such legal and regulatory acts;
  7. Formation of business entities engaged in economic activities in the country with foreign business structures;
  8. Signing of agreements on economic activity of our country with a number of countries, joining a number of international treaties and agreements, joining several international and regional economic structures, etc.

Conclusıon

In the article, theoretical and practical study of its development in accordance with the national peculiarities of improving the system of state regulation of export of agricultural products of the country contributes to the following conclusions.

  1. Foreign economic relations are created when the domestic demand for agricultural production is not met. If the amount of agro-industrial production produced in the country is not able to meet the needs of the population for any reason, then it is necessary to supply those agricultural products at the expense of budget funds in order to meet the demand. As it is known, the domestic grain production in our country contributes to the need of the population in small quantities, and under these conditions the grain must be imported from foreign countries.
  2. The following measures should be taken to improve the system of state regulation of the export of agricultural products of Azerbaijan:
    • development and regulation of norms defining the legal basis for export;
    • Definition of the status of export regulating structures;
    • Definition of export regime, export licensing, determination of import-export procedures in the agricultural sector;
    • Determining the state regulation of exports and drafting regulations to establish joint business structures in Azerbaijan;
    • implementation of measures to protect the interests of the countries involved in the export process;
    • implementation of currency, customs regulation, etc.
  3. In order to liberalize foreign trade in the agrarian industry of Azerbaijan, it must implement a state protectionist policy to protect the national economy from competition and to limit the interference of imported products through various measures. In order to protect the domestic market of Azerbaijan's agrarian industry from external influences and stimulate national entrepreneurship, high customs tariffs on imported agricultural products should be applied. With the intensification of agrarian industrial production, the intensification of these conditions creates an environment for their dependence on imports, which results in significant losses. In short, the fall in dependence on imported products increases the economic security of the country. In this regard, the intensification and stimulation of the agricultural production will allow Azerbaijan to join the ranks of the economically developed countries.
  4. The importance of stimulating the export of non-agricultural products in Azerbaijan is to impose preferential taxes on export-processing enterprises in the agrarian industry, as well as the government taking over export credit guarantees; the closure of multilateral agreements; implementation of measures to regulate interstate trade interests, development and implementation of targeted programs; We consider it appropriate to use such measures as formation of an environment for increasing the export potential of Azerbaijan. We consider currency regulation to be the most powerful means of stimulating exports in the agricultural sector. In order to strengthen the economic security of the country, the level of 'industrialization' of foreign trade turnover, mainly exports, should be increased. In this regard, the export base development program should be developed, first of all, as one of the key structures of the foreign economic strategy, exports should also be supported through tax and credit mechanisms and economic diplomacy.
  5. In the current economic environment, we consider the country to be in a hurry to join the WTO in agriculture without taking into account the real situation in the agrarian industry of Azerbaijan and the emphasis on non-commercial purposes of agro-business, and this step cannot meet national interests. Proper identification of priorities for the development of the agrarian industry in Azerbaijan for the formation of such an environment is an important factor. From this point of view, it is necessary to adopt the Law “On State Regulation of Export of Agrarian Industry”, taking into account development of agro-business, apply tax privileges to entrepreneurs engaged in alternative activities in rural areas, and make important decisions to improve the mechanism of environmental safety in the agricultural sector.

 

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