EU to further support pension reforms in country
EU-funded twinning project “Support to the Ministry of Labor and Social Protection of Population (MLSPP) in implementing reform of the pension provision system in Azerbaijan” within the European Neighborhood Policy (EU) was presented in Baku on June 23.
The overall objective of the project is to contribute to further reforms of the pension and social protection provision system in Azerbaijan in compliance with best European practices.
Speaking at the event, Minister of Labor and Social Protection Salim Muslimov said that the average monthly pension in Azerbaijan has increased by 6.4 times for the past 11 years.
During the same period the government increased pension expenses by 5.9 times, and the basic part of labor pensions by 4.4 times. Today, the number of recipients of labor pensions in the republic with almost 10-million population reached 1.3 million people.
The Minister touched upon the importance of cooperation with the EU in the sphere of pension provision.
“The new twinning project will be implemented within two years. It is aimed at using the European experience in future reforms of the pension and social systems. Within the framework of the project, we will cooperate with the relevant departments of France. By the way, for us this is the third joint twinning project with the French partners,” he said.
The project consists of four components – creation of electronic audit to enhance supervision over the receipt of social payments, the use of European techniques in forming the budget of the State Social Protection Fund [of Azerbaijan], strategic planning and strengthening of workforce capacity.
Head of the EU Delegation to Azerbaijan Malena Mard, in turn, noted that the EU will provide 1.2 million euros to Azerbaijan for the implementation of the twinning project.
The basis for the implementation of this project was due to the success of previous joint projects, she said, voicing confidence that the new twinning project will provide important assistance for studying advanced European experience and its application in support of the reforms carried out in the field of modernization of the Azerbaijani pension system.
This 24-month project, with the budget of €1,200,000, will be implemented by the Ministry of Labour and Social Protection of Population of Azerbaijan together with the Ministry of Social Affairs and Health, Ministry of Labour, Employment, Vocational Training and Social Dialogue and the Delegation for European and International Affairs of the Republic of France.
The project purpose is to improve the capacity, tools and efficiency of the MLSPP to develop and implement an automated fiscal control (e-audit) system, to strengthen the institutional and technical aspects of the budgeting as well as the strategic planning mechanisms of the social protection systems- especially in social insurance area.
This twinning project is the third twinning awarded by France as the main partner in the field of social protection in Azerbaijan and in cooperation with the Ministry.
The two previous twinning projects contributed to a serious strengthening of bilateral cooperation between the profile agencies, said Aurelia Bushez, the French Ambassador to Baku.
"The new twinning project will allow developing this cooperation and modernizing the pension provision in Azerbaijan," Bushez said.
Muslumov, talking to reporters, said that the EU will further support the reforms regarding the pension provision in Azerbaijan.
The minister said that in September, Azerbaijan and the EU will start the implementation of another twinning project, which will strengthen the capacity of Azerbaijani employment agencies.