Rufat Guliyev,
PhD, Professor of Azerbaijan Academy of Public Administration 
 Sveta Guliyeva,
PhD, Docent of Azerbaijan Pedagogical University 

				
International Investments and Social Policy

Globalization has accelerated the flows of investments that profoundly affect the livelihoods of many developing countries. For example, investments of oil reserves exploration and development in Azerbaijan have been raised 12 times between 1993 and 2004. It is undoubtedly promoted economic growth in the country that reached more than forty percent in 2006. At the same time set up conflicts between promoting national economic growth through oil industries and level of economic livelihood and living standards of population in Azerbaijan. The indigenous people feel cheated when their physical resources are misappropriated without adequate compensation. There was limited involvement of local people oil reserves exploration in the country. Some of the tax revenues were to go to indigenous inhabitants, but they received less than they promised. Received funds from oil companies almost are not being used for social policy development in the country; meanwhile forty nine percent of population of Azerbaijan lives after the border of poverty, also the level of health, education, social maintenance and other social spheres are very low. These all forms negative attitude of populations to foreign investments, causes protest against involvement of international companies in oil reserves exploration in the country.

However, it does not mean that flows of investments must be blocked to the country.  Economical growth, which was acquired owning to investments, must be effectively used for welfare of the poor and created through equitable socio-economic opportunities within a democratic framework that protects rights and liberties of people. In the condition of increase of international investments government activity and public administration must be focused on solution of poverty and provide effective social policy in the country.