Mayis Gulaliyev: "The new measurement method developed at the Institute of Economics, and the fact that each country must be measured by the extent of state intervention in the economy, also to determine optimal limit interference".
We are sure that the creation of democratic, effective and transparent managing at the institute of Economics would play an important role in the economic development of ANAS and the country.
Ph.D. in Philosophy Mayis Gulaliyev, a leading scientific worker of the Institute of Economy ANAS gave an interview to the website economics.com.az
-Mr. Mayis, recently the Chines Academy of Social Sciences deeply interested in carrying out scientific investigations by the institute of Economics ANAS, and offered to cooperate. What investigations were those?
-We talked about the new evaluation methodics developed by professor Nazim Muzaffarli, the director of the Institute of Economics ANAS. The same methodic would give opportunities for the quantitatively evaluation of interference degree by the state to the economy.
-Such evaluation methodic has not developed yet?
-Not, never! The political economic theories has been discussed the intervention problems of the state to the economy for more than two hundred years. Some of theorist think that the intervention of the state to the economy should be increased and some of them think that should be decreased. Otherwise all the economists accept the state intervention in the economy. The degree of intervention has been always the discussion subject. The new created evaluation method developed at the Institute of Economics ANAS, gives opportunity to evaluate not only the degree of state intervention, the economy, also give opportunity for determination of optimal limit of the same intervention.
-But there are different rating organizations measure the state intervention in the economy. What is the innovation of this method?
-There are different rating organizations that comparatively evaluate the state intervention in the areas of economy. There are undeniable theoretical and practical importance of such evaluation. But, there are some serious shortcomings in such evaluations. For example, such comparative evaluations are resulted with the “vertical” rating development and sorted in the different areas of countries. Such evaluation methods in any countries create opportunities to completely evaluate the intervention level of the state, and basically to find optimal intervention degree for any countries.
-Please, explain us “optimal intervention degree”, if it’s possible.
-It means that adoption of liberal or limited laws in the same degree for all countries does not give the same result. For example, if in France, adopts the same liberal laws as in Singapore, the economy of France, may be not develop as in Singapore. The level of state intervention that is required for the economic development in Japan or the liberalization level differs from Great Britain. If they invent to the economy in the same degree there would be different result. It means, there are special “optimal invention degree” for each countries. The main problem is finding of “optimal” area. Its finding can be stimulate the speedy economic development of the country. Until the recent years, has not possible to discovery of this area scientifically substantiated, so that economic, political and social institutions with struggling try to direct the country to the "optimal" on this field.
-It means that the method offered by the Institute allows to find "optimal model" for the economic development of the country. Do I understand you?
-Yes, you are right. Each of the governments of the country tries to create its economy could develop. But in many times, they cannot achieve. Thus the government is forced to give its place to another.
-The new government ripped, destroys “economic model” created by the previous government and creates a new suitable model. In most cases, this model does not fit too. Thus, the economic models are interchangeable. At best, during interchangeability they slowly approach to the "optimal model". For example, the developed countries have achieved to such model. In most countries, such "search" is ongoing. But, our proposed method, gives opportunities to create "optimal model" for the countries.
-It turns out that in most countries, especially developing countries still did not find the "optimal model"?
-"Optimal model" is suitable for any time period. It is not universal and must continually change and grow. On the other hand, must take into account that economic development is not only the legislation, but rather the degree of state intervention in the economy, but it depends on other factors. Therefore, in finding all factors should be considered the "optimal model".
-The same methodic developed by the Institute is called “Leftness (Rightness) index of economy”. Why it is called like that?
-In the political and economic theories “leftness” means increasing of the state intervention in the economy, and “rightness” means decreasing of such intervention. I should note that “right” or “left” are relative. There is not any country that is completely left, it means the economy of the country is under the state intervention or “completely right” that means the economy of the country is “without state”. However, the bodies regulate the economy with according laws. In fact, those laws are “bipolarity” it means, strengthens the social defense of peoples, simplify the activities of entrepreneurs. Or, adopted laws takes the main provision of internal market or simplify the foreign trades. Thus, many laws in economy are “bipolar” is with the “right” orient, or “left” orient. However, this index we call “leftness (rightness) index of economy”.
-What level are currently ongoing studies? Does develop any "optimal model" for countries?
-Not! An idea is very “young”. We have concluded an intervention degree of the countries for two years. There had 36 countries in 2014, and 62 countries in 2015, attracted to the calculations. We’ve almost calculated the development dynamics of 15 years on some countries. The first results are very interesting.
-For example?
-The result of interventions show that there is not any directly dependence between intervention degree of the state to the economy and the economic development level of the country. It means that decreasing of intervention of the state to the economy, does not mean that the economy will be develop. In the carried out investigations between 36 countries in 2014, Singapore was the most “rightness”, it means, was the least intervened country to the economy, but France, was the most “leftness”, it means the most intervened country in the economy. But both two countries develop very speedy. In the carried out investigations in 2015, between 62 countries, these countries were leaders both in “rightness” and “leftness”. In Georgia and in Kazakhstan the intervention in the economy is less than in Germany, but their economic development lagging behind more in Germany. However, the main results is that in generally if the intervention in the economy by the state is with “closed eyes”, it means without any scientific basis, the “rightness”, its liberalization does not stimulate the economic development. It can be said about the “leftness” too. It means, increasing of the state intervention in the economy without any scientific basis cannot stimulate the economic development of the country. For each countries to find the impossible “point”, it means finding of “optimal model” is very important. Another serious conclusion is that in some areas of economy decreasing of intervention in the economy by the state is necessary. For example, in the foreign trade areas. Carried out investigations in 2015, proved that if the country wants the amount of GDP per person more than 20.000 US dollars, it must improve the condition of foreign trade.
-May you explain the results of researches on Azerbaijan?
-Of course, both in 2014, and in 2015 years, Azerbaijan has included to the investigations. In other side, in choosing other countries, which attracted to the investigations has considered their economic relations with Azerbaijan and their geographic territories. We have calculated not only two years also 15 years of the state intervention level and dynamics. The first conclusion is that, at the result of carried out reforms for recently 15 years, in Azerbaijan the intervention of the state to the economy has decreased. The maintenance of Azerbaijan’s economy shows that while decreasing state’s intervention in economy, it means during enlarging liberal reforms the economy has developed. Some peoples not being busy with the scientific investigations and only makes populist speakers say that the reforms injuries the economic development. But serious scientific researchers proves otherwise. Thus, liberal economic reforms in Azerbaijan, in other words, the “rightness” of economy of Azerbaijan has positively impact to increasing GDP, personal development, strengthening the competitive ability and economic security of the country.
-During difficulties in the economy, the state usually increase the intervention to the economy. What do you think is the state should increase the intervention to the economy after the last devaluation of manat in Azerbaijan?
-You are right. But our investigations shows that Azerbaijan should not stop carried out reforms of 15 years, even its hard, and those reforms should continue the liberalization of foreign trade. At the present-day, we work on creation of “optimal model” for Azerbaijan. Firstly, I must say that the “optimal model” for Azerbaijan comes from liberalization of country’s economy.
-Putting forward such a serious purpose like finding “optimal model” of economy on whole countries of the world does not seem utopic for you?
-First of all, we have not put forward such purposes in front of us. We have just developed universal theoretical method for creation the same model for each countries. We are sure that such evaluation method developed by the Institute, in each countries somebody will be try to do it. Otherwise, for carrying out such broad investigations there should be great personnel potential.
-By the way, how many people attracted to this investigation at the Institute?
-At present, under the leadership of the director of the Institute, professor Nazim Muzaffarli 25 personnel attracted to this “investigation group”. The same group is a foundation of the new “economic school”.
-What does it mean?
-In broad sense! Not only economist, also philosophers and psychologists have attracted to this group. Our carried out investigations show that the “optimal model” for each country also depends on country’s self-regulation. And so that “optimal model” for one country does not mean effective for another country. It means, in choosing any “optimal model” for each country should be taken national spiritual values into the consideration.
-Have youths attracted to the investigation group?
-I should note that the present leader of the Institute not only in the same investigation, also in the scientific, social and cultural events give special attention to youths. More than 10 youths active work in the same investigation group. So that I call this investigation group “the new economic school”, I can say that every day we work hard with these youths.
-We teach them the investigation methodology and carries out discussions about the economic theory. For improving their speech, knowledge and abilities in English, realizes special plans. There are two scientific clubs at the Institute. In both clubs carry out interesting scientific discussions with the participation of youths, leading economists and responsible persons of the state bodies.
-But sometimes is said that youths are not interested in science, or scientific investigations and nobody is busy with the development of youths. But you say contrary.
-At the present-day, undoubtedly at the Institute of Economics carries out very important scientific researches. Of course, it connects with the personnel qualities of director of the Institute. Professor, Nazim Muzaffarli is very intelligent person. He is very solicitude, impartial, democratic, patriotic person because he is very intelligent. He gave the “new breath” to the collective and specialty to youths of the Institute. Deceased Agasalim Alesgerov Accociate Member of ANAS said that our scientists began to think after Nazim Muzaffarli appointed a director to the Institute. He is not only intelligent as an economist. He has also higher scientific, social and political outlook. As far as he is rich in moral, he is also so simple. All these qualities are very important for creation of the “new economic school” in Azerbaijan.
-Mr. Mayis, you also a member of Scientific Seminar of the Institute and deputy of chief editor of the journal “Scientific works”. What can you say about the carried out researches conducted at the Institute, the level of thesis presented to the discussions, published scientific articles in the journals?
-Without a doubt, there is impossible to raise the level of published scientific articles in the journal, the level of thesis submitted to the discussion unexpectedly to the international level. However, gradually increase the quality is quite possible, and we can say that in this stageall the important steps are taken. For example, at the Institute removed all instances of bribes. The sequence of all these submitted for discussions, seminars, defenses have placed on the website of the Institute. Therefore each candidates for a degree or a doctoral students know when and how will be in discussions. Head of the Institute never interfere to the activities of Scientific Seminars. It is very important in ensuring transparency in the Institute. In the journal “Scientific Works” we carry all the possible measures to improve the quality of articles. Articles pass through the primary review, check for originality, scientific editing and others. The Institute of Economics in the broad sense of the Azerbaijani society and in a narrow sense is a small model of ANAS. We are sure that the building democratic, efficient and transparent management will play an important role in the development of ANAS and in the economic development of the country.
Thank you, for an interesting interview.
Mahir Zeynalov
