The World Bank is providing support to the Government of Azerbaijan in implementing the Employment Support Project (the Project). This operation is built around supporting the Government’s Self-Employment Program. The objective of this Program is to strengthen self-employment and entrepreneurship as a pathway out of poverty and in to the labor market for vulnerable individuals. The improvement and scale up of the self-employment program are consistent with the recently adopted the “Employment Strategy of the Republic of Azerbaijan for 2019-2030” and its action plan in draft. The third priority direction on “increasing the scope and efficiency of the active labor market programs and strengthening the integration of citizens who need in social protection and who have difficulties in finding a job in labor market” points to the need to enhance the effectiveness and scale of interventions supporting entrepreneurship and self-employment.
The proposed project supports two Country Partnership Framework (CPF) objectives. The project will focus on improved delivery of public self-employment support services which will directly contribute to the achievement of CPF Objective 1.2 (Support access to and satisfaction with public services). The project will also promote financial inclusion of Micro, Small and Medium Enterprises (MSMEs) and the B40, in line with CPF Objective 2.2 (Support enhanced access to finance for MSMEs) through its focus on complementary business support services.
The Project Development Objective is to improve the access of vulnerable people to sustainable self-employment and income generating opportunities in Azerbaijan. This will be achieved by (i) scaling up and improving the effectiveness of Azerbaijan Self-Employment Program (AzSEP); (ii) strengthening program implementation capacity in the State Employment Services (SES), along with the capacity to provide a broader menu of activation and employment support program; and (iii) improving monitoring and evaluation practices of the SES. The Project will be implemented country-wide.
The environment and social risks of the Project are both rated as moderate.
The Project aims to improve employment outcomes among vulnerable groups of jobseekers by (i) scaling up and improving the effectiveness of the AzSEP; (ii) strengthening program implementation capacity in the SES and capacity to provide a broader menu of activation and employment support program; and (iii) improving monitoring and evaluation practices of the SES. These will be achieved through provision of relevant training programs and advisory services.
Social risk management issues relate to: (i) inclusion/exclusion error, and (ii) stakeholder engagement. Environmental risks are related to the activities of project beneficiaries (not financed by the project) which they will be undertaking using in-kind asset transfers from the Project.
Toward addressing these issues: a preliminary Social Assessment (SA) were undertaken during preparation stage to accomplish the following: (a) stakeholder identification/mapping; (b) targeting/profiling of vulnerable groups, (c) stakeholder analysis of expectations, concerns and issues, possible obstacles to accessing project benefits; (d) assessments of positive and negative impacts.
Towards addressing the environmental and social risks, the following instruments have been prepared: (i) Environment and Social Management Framework (ESMF): (ii) Stakeholder Engagement Plan (SEP); and (iii) Labor Management Procedures (LMP). The ESMF covers applicable ESF Standards and the World Bank Group’s Environmental Health and Safety Guidelines. The ESMF has checklists for determining where and when site-specific Environment and Social Impact Assessments (ESIAs) / Management Plans (ESMPs) will be developed. The ESMF also contains generic ESMP checklists for each type sub-project activity and other investments that improve local living conditions, including those related to social infrastructure.