DOI: 10.36719/AEM/2007-2020/53/53-56

Baku State University 

Economic and political stability has been achieved in the country, image of the Republic of Azerbaijan has been significantly increased and basis for dynamic development has been founded as a result of large-scale reforms launched by national leader of Azerbaijani people Heydar Aliyev in the mid of 90s of the last century. The main objective of implemented reforms was to establish democratic state with strong economy. Measures undertaken in the economic sphere were aimed at expanding business activities based on market economy principles, creating new job places and enterprises producing competitive goods through attraction of local and foreign investment, modern technology, and consequently boosting economic power of the country. The transition of the country economy to the market relations, the government liberal economic policy, the rapid globalization in the world raise the productivity and competitiveness issues with all due sharpness before companies and enterprises. In this case, the local enterprises can gain an opportunity to bring competitive products to the world market only through using international principles and standards. The rapid change of socio-economic and legal environment, competitors’ activity and consumer demand is forced companies to organize their activity in conformity with these changes and even to surpass them. Otherwise, companies can fail or become bankrupt at worst. All these factors require companies to be seriously engaged in productivity and competitiveness issues and approach them scientifically, i.e. comprehensively. Moreover, the developing countries, especially states which intend to become WTO members should increase the productivity level and produce competitive products and services, and, thus, strengthen the country economy. The complex solution of the all above-stated problems is possible only through introduction and application of the quality management system supporting productivity and competitiveness. Moreover, analytical data covering international and national legislative acts on productivity and competitiveness, and extracts from these acts were highlighted in the following parts.