As Azerbaijan accelerates efforts to diversify its economy and reduce its dependence on hydrocarbons, a new World Bank report offers timely insights that closely align with the country’s strategic direction. The report, “Waves of Change: Igniting Productivity Growth in Europe and Central Asia,” argues that the region’s economic slowdown since the 2008 financial crisis stems largely from stagnating productivity, a point that resonates strongly with Azerbaijan’s current development trajectory.

The World Bank notes that although many countries in Europe and Central Asia have continued to invest capital and expand their labor force, overall efficiency has declined. Productivity growth in the region has halved since the financial crisis, limiting the impact of investment flows. According to the report, even a 10 percent improvement in productivity could generate nearly 2 million new jobs, underscoring the direct connection between productivity, employment, and living standards. Had the region maintained its pre-crisis pace of productivity growth, its GDP today could be 62 percent higher. These findings highlight why improving efficiency, rather than expanding resources, is now central to sustainable economic development.

For Azerbaijan, the message is particularly relevant. The country has, in recent years, deepened its cooperation with the World Bank........

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