The Quality of Education in Azerbaijan: Problems and Prospects

Abstract

Over the past two decades, Azerbaijan has experienced a drastic decline in the quality of education, particularly at the higher education level. Although the oil industry experienced a boom for nearly a decade, the education sector stagnated and underperformed. The level of funds allocated to education remained unusually low, especially compared to the funds allocated to infrastructure development and vanity projects. Consequently, the quality of public education deteriorated precipitously, falling behind even the Commonwealth of Independent States (CIS) regional standard. Using a demand-and-supply perspective, I argue that the diversion of public funds away from human capital development toward unproductive investments by rent-seeking elites on the supply side and low returns to high-quality education (valuing educational certificates more than knowledge and skills obtained) and an excessive reliance on patronage and personal connections on the demand side are the key impediments to the advancement of educational quality in Azerbaijan. Further structural reforms are required to address these perverse incentives embedded in the existing institutional framework.