The Public Finance Monitoring Center (PFMC) set up its activities in Baku on June 1, 2003 under financial support from the Open Society Institute. The Center based its activities on continuing the idea «Publish What You Pay» by George Soros and initiative «Extractive Industries Transparency Initiative» T.Blair on the national level. At present PFMC is one of the more active organizations involved in this direction in Azerbaijan.

The key task of PFMC is to trace the flow of public finance mainly in three directions:

Monitoring of oil revenues, which mostly concentrated in the State Oil Fund of Azerbaijan (SOFAZ);

Implementation of permanent budget monitoring though tracing the efficient development of the state budget and right use of its resources (on appointment);

Monitoring of the financial activities of the state-run enterprises under natural monopoly (mostly the Fuel and Energy Complex) and international credits, attracted for investment projects under governmental guarantees.

Goals of PFMC are as follows:

Achievement of efficient management over public finances and opportunities for their rationalization;

Making the public to take more active part in issues of efficient use of public finance;

Achievement of more transparent and efficient use of public finance for the sake of the nation.

During the short period of its activities the Center succeeded to lay firm foundation in the issue of monitoring of public finance, take serious steps towards the goal, as well as implement several projects.

Moreover, there was created a database on three segments of public finance and its major part was placed in the website.

PFMC formed a group of experts, involved in observing and analyzing the movement of resources in three directions. The group is also involved in the projects implemented by the organization.

The Center issued 2 quartile information and analytical bulletins ˜Public Finance: transparency and efficiency”. The publication includes materials, which along with development dynamic of each segment of public finance revealed the regularity of their development in the reviewed period. The analytical articles finalize each bloc of the bulletin available in Azerbaijani, English and Russian languages.

One of the priority directions of PFMCs activities is the work with political parties and public. In particular, the Center implemented a project on budget policy. Four roundtables on ˜The Budget Policy and Efficient Management over Oil Revenues in Electioneering Platforms of Political Parties” with participation of representatives from leading political parties, which nominates their candidates to presidency were organized under the project. Information on each roundtable was publicized in media and a brochure was published and distributed in the election stations free of charge in the end of the event.

PFMC also organized jointly with the International Political Dialogue organization a three-day workshop entitled ˜Excitement for oil wealth” for journalists writing on economy with participation of Nobel Prize laureate on economy, Joseph Stiglitz.

In December, 2003 PFMC launched the implementation of a project on ˜Assistance to Selecting optimal variant for increasing domestic prices for energy carriers”. Under the project the expert group set up study of experience of other countries and researched the negotiations between the Azerbaijani Government and IMF. Development of a forecast scenario for increase of domestic prices for energy carriers and impact of the step on living conditions, incomes and expenses of the population are underway. The project stipulates organization of publicity-campaign for covering in media the problems revealed during researches, held in the roundtable on this topic with independent experts after completion of the project. Results of researches will be publicized within a report containing recommendations to the government in preparing and submitting to IMF exact concept of reforming FEC intended to become an object of cooperation.

The Center also carries out active work in moving ahead the ideas of transparency of public finances within the country and in the international level.

Ph.D. Ingilab Ahmadov, General Director of PFMC, represented Azerbaijani NGOs in the London conference held in June 2003 under EITI project. Ilham Aliyev, the then SOCAR First Vice President, and present Azerbaijani President, headed the Azerbaijani delegation in the event with participation of delegates from 31 world nations.

Ahmadov represented Azerbaijani NGOs at Local Government and Public Service Reform Initiative workshop held in Antalia, Turkey, in September of 2003 and dedicated to strengthening transparency in public finances.

Justice Initiative Campaign Finance Monitoring Workshop, held in Budapest, Hungary, from December 5 to 6m, 2003, was the next-in-turn event with participation of PFMC Director.

PFMC is a local partner and member of IBP and member of the «Publish What You Pay» coalition. The Center holds exchange of experience and active correspondence with its partners and other organizations with same profile in different countries.