BAKU/Azerbaijan, DEC. 5 2014 (The Conway Bulletin) — Global oil prices have collapsed since the summer, hitting governments, currencies and ordinary people. Baku, the Azerbaijani capital, was built on oil and this slide has, perhaps, been keenest felt here.

Matanat Guliyeva’s husband works for a private oil company. She said: “Salaries have been late for the last two or three months. We have to reduce our budget, as we are uncertain whether my husband’s wage will arrive next week or not.”

Funds directly from oil sales or from taxes generated by oil sales, power Azerbaijan’s state budget. Earlier this month the government passed a budget that increased spending next year but some people in Azerbaijan are now worried about possible economic turmoil triggered by the falling oil prices.

Aytekin Gasimova 18, said she follows news about oil prices closely because an oil price means that her father, who works in local market in Moscow, will also earn less.

“I’m mostly concerned about my tuition fee,” she said. “It seems my family may have difficulties in paying for my education.”

Nijat Qafurov, 43, a bank worker is more optimistic. He said that people’s income will not decrease due to oil prices drop. Instead, he said, if prices keep falling, the government will cut infrastructure projects, not salaries.

And this sense of being able to ride out economic uncertainty rebounded around Baku.

Azer Mammadov, 28, a construction worker, said that the Azerbaijani government has enough money to save the economy.

“I am sure, they have kept some money for such days, and will not let people starve,” he said. “The government will manage it somehow.”

ENDS

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(News report from Issue No. 212, published on Dec. 10 2014)