https://doi.org/10.36719/2663-4619/112/78-83
Kamran Baghirov
Azerbaijan Tourism and Management University
https://orcid.org/0009-0002-1000-4083
kamran.baghirov.2000@gmail.com
International Experience in Providing National Income and
Economic Development
Abstract
Increasing national income and ensuring economic development are key strategic objectives of economic policy in countries worldwide. International experience demonstrates that various approaches to economic growth exist, and their effectiveness depends on a country's economic conditions and development strategy. Industrialization and government intervention can serve as effective tools for rapid economic progress in the early stages of development but may restrict private sector initiative in the long run. A free-market economy promotes growth through liberal trade policies and foreign investment but may exacerbate social inequality. An export-oriented economic model enhances economic expansion by increasing access to foreign markets but exposes the economy to global economic fluctuations. A social welfare-based development model ensures social equality through high taxation but increases the fiscal burden. An education- and innovation-driven economy provides the foundation for sustainable long-term growth, although its impact becomes evident only over time. Effective management of natural resources and sustainable use of resource revenues are critical for ensuring long-term economic stability. Each country must adopt a tailored combination of these approaches to shape its development strategy according to its unique economic characteristics. For Azerbaijan's economy, diversification, innovation, and the advancement of the non-oil sector could form the foundation of a more sustainable development model.
Keywords: national income, economic development, industrialization, free market, export-oriented model, social welfare, innovation, natural resources, economic policy, diversification