The effects of international monetary institutions in the developments of Azerbaijan economy and foreign investment

A rapid globalization process has commenced by the early 1990s. Eventhough the developments in communication and informatics technologies havebeen underlined as the causes of globalization process by the respectiveliterature, we still think that an important fact is being disregarded. That istransition from a bipolar world to a unipolar world with the collapse of SovietUnion and formation of new independent states called as transformationeconomies.At the present, crisis and reform processes management, required by theunderdeveloped and developing countries, heavily depends on the World Bankand International Money Fund. The development based targets of establishingthe international financial organizations have been to restructure the economiesof the European countries post WWII and accordingly to prevent the outbreakof crises as well as to maintain fast economic development for such countriesand to make contributions to the realizations and liberalization of global trade.Important contributions have been obtained to the Azerbaijan economyafter the independence thanks to the cooperation with international financialinstitutions. Under this frame, the international financial institutions haverealized significant cooperation and credit programs with Azerbaijan at therecent decade in relation with their scope of arrangement of world monetarysystem and determining the policies towards the underdeveloped countries.This, in turn, has brought important positive effects on Azerbaijan?s nationaleconomy.This study examines the relations of Azerbaijan with internationalfinancial institutions through detailed analyses on relations with IMF, WorldBank, UNDP (United Nations Development Program), EBRD, AsiaDevelopment Bank, Black Sea Trade and Development Bank and IslamicDevelopment Bank. Plus, recommendations for integrating the Azerbaijaneconomy to the foreign markets have been stated through this study.Key Words: 1) Azerbaijan, 2) International Monetary Institutions,3) International Monetary Fund, 4) World Bank Group, 5) Foreign Investment