The Comparative Analysis of Agricultural Financial Systems in Poland and Azerbaijan

Abstract

This paper makes a comparative analysis of agricultural financial systems in Poland and Azerbaijan. Poland as a member the of EU has developed its system under Common Agricultural Policy of the EU and so-called domestic support. The system is consisted of financial intermediaries, state agencies (ARMA, AMA), instruments (preferential credits, and subsidies) and regulations. In comparison, Azerbaijan’s agricultural financial system is mainly based on support by state agencies. Thus, share of agriculture credits in portfolio of banks and non-bank credit organizations is very small. Azerbaijan state agencies use instruments such as preferential credits, direct and indirect subsidies, and technological support. However, there are serious challenges which make agricultural financial system and the support less effective. It is concluded that Azerbaijan should benefit from good experiences of Poland in order to make the system more effective.

Keywords: Agricultural financial system; Azerbaijan; Poland; financial intermediaries; state agencies; comparative analysis

JEL Classification: Q18; H50;