Business Corruption in Azerbaijan

Political corruption increases costs of doing business and represents the main challenge for foreign companies in Azerbaijan. Extortion , bribery and favouritism distort the country's business environment and reduce opportunities for fair market competition. A weak judiciary and insufficient enforcement and implementation of regulations lead to government officials acting with impunity.

Red tape and bribery in Azerbaijan expose companies to a high-risk environment. Azerbaijan's public administration is extremely corrupt, resulting in increased time and cost expenditures in trying to comply with required customs and licensing procedures. The goal of government’s National Anti-Corruption Plan 2012-2015 (NACP) is to reduce corruption and conflicts of interest among public officials through anti-corruption training, improved income declaration regulations and gradual wage increase. Azerbaijani law prohibits bribery of foreign officials and puts restrictions on gifts, but companies are likely to encounter demands for facilitation payments or other informal payments. The government demonstrates low progress in the NACP provisions, according to the Monitoring Report 2013 .

October 2014
GAN Integrity Solutions