The Oil Boom and Human Capital Development in Azerbaijan: "Turning Black Gold into Human Gold"

Abstract

This article addresses the link between state fiscal resources and human capital development in Azerbaijan during the peak period of oil prices. The economic growth figures offer quite an optimistic picture. However, a more thorough look at the social and economic data indicates that Azerbaijan’s state investment in education and healthcare was relatively low compared to other countries in the Commonwealth of Independent States (CIS) region. Despite the possibilities presented by the expanding fiscal space and increasing capital inflows, the government of Azerbaijan did not manage to effectively increase public sector expenditures on human capital development and has not utilized the available funds to reach higher levels of overall human development.