Support To The Preparation Of A National Land Consolidation Strategy And A Land Consolidation Pilot Project - TCP/AZE/3601
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One of the main goals for the Government of Azerbaijanis to reduce dependence of its economy on oil and ensurethe expansion of economic development to rural areas. The agricultural sector is one of the priority areas to bedeveloped in order to diversify the economy. As the thirdlargest sector in Azerbaijan’s economy, following the oiland construction sectors, agriculture has the highestshare in employment, as well as a huge influence in termsof reducing rural poverty.Excessive land fragmentation and small/average farm sizes represent one of the structural problems impeding development and full capitalization of the agricultural sector’s potential. As a result of the land reformcompleted in 2004, when 869 000 rural families were eachallocated an average of 1.6 ha of agricultural land,generally divided into four or five land parcels, agricultural structures are now characterized by many small andmedium-sized family farms and relatively few largercorporate farms. Such severe land fragmentation in mostrural areas hampers the sector’s productivity and competitiveness.