In recent days, social support mechanisms in Azerbaijan, especially the issue of child benefits, have once again become the center of public discussions. The views expressed by Gunay Agamali, a member of the Milli Majlis, regarding child benefits, also caused a wide resonance in society and led to serious criticism. At the same time, alternative models applied in international practice also attract attention. In a number of countries, long-term savings and deposit mechanisms are formed with state support for newborns.
Speaking to Modern.az on the topic, Ali Masimli, a member of the Economic Policy, Industry and Entrepreneurship Committee of the Milli Majlis, stated that the issue of forming initial capital for newborns with state support in Azerbaijan is currently at the initial discussion stage. However, this process has already made its mark in world practice:
“Projects for the formation of initial capital for newborns with state support are one of the reliable investment models aimed at the future of children. These programs are applied under various names in the USA, Canada, Great Britain, Israel, Singapore, Kuwait and other countries. Essentially, the state opens an account in the name of newborns, these funds are invested, and when the child reaches 18 years of age, they are used for education or housing expenses.”
The deputy emphasized that one of the notable examples in this area is the "National Fund for Children" project implemented in Kazakhstan since 2024.
“Within the framework of the project, a part of the revenues of the Sovereign Wealth Fund is directed to the individual accounts of all children under 18 years of age. According to the data, by the end of 2025, the program covered 6.9 million children. In the first three years, the funds accumulated for each child, including investment income, reached 370 dollars, and the total amount reached approximately 2.5 billion dollars. The funds are indexed and can be used for housing or education purposes after reaching adulthood.”
“International practice shows that this model is an effective tool in terms of reducing social inequality, ensuring the financial future of children, and preventing the intergenerational transmission of poverty. At the same time, it has an indirect, not direct, effect on families' decision to have additional children. Research shows that although the decision to give birth depends on various factors, the state's provision of guarantees for the child's future increases families' trust in social policy and, in some cases, can encourage the birth of a second or third child,” – said A. Masimli.
The deputy emphasized that in our country, child benefits, known as child allowance, become the object of discussion, but these discussions are at a stage where economic illiteracy, mutual accusations and insults keep scientific justifications and constructive approaches in the background:
“However, it should not be overlooked that among the factors conditioning changes in the state's social strategy, the strengthening of negative trends in the field of demography in recent times occupies a special place. Thus, in recent years, the growth rate of births in Azerbaijan has significantly decreased, and the number of newborns is gradually decreasing. According to official statistics, if in 2015, when the population of Azerbaijan was 9 million 706 thousand people, the number of newborns was more than 166 thousand people, in 2025, when the population was 10 million 262 thousand people, the number of newborns fell below 96 thousand people. In the last 10 years, the growth rate of newborns has decreased by 1.7 times.”
The birth rate in Azerbaijan has fallen to its lowest level in the period of independence. If the sharp decline in the birth rate continues at the pace observed in recent years, this will create additional serious problems in demographic, economic, social and other areas in Azerbaijan:
“In the near future, potential difficulties in terms of population aging, increasing pension burden, and direct impact on the potential for military service will be inevitable. As the number of working young people decreases, it becomes more difficult to finance pensioners and those in need of social security, and so on... The most valuable part of Azerbaijan's national wealth is not oil, gas, gold, etc., but our true wealth is the people, and its most promising part is children and the young generation.”
Ali Masimli noted that discussions on child benefits should be conducted at a level worthy of children and should stem from the objectively evaluated logic of demographic processes in this direction.
The issue of transitioning from the currently applied targeted social assistance model to a direct child benefits model will become even more relevant:
“The sharp decline in the birth rate, the intensification of demographic trends, will most likely bring to the forefront the issue of reviewing the priorities of social policy. In this case, the issue of transitioning from the currently applied targeted social assistance model to a direct child benefits model will become even more relevant. However, since the state child deposit system is intended for long-term benefit, the issue of current child benefits will be more relevant than the issue of forming initial capital for newborns with state support, dictated by the realities of the current situation. This situation provides rich material for thought that by directing the topic of strengthening the social protection of children, who are the most valuable and promising part of Azerbaijan's national wealth, and at the same time one of the weakest links in social policy, into a constructive channel, and by finding the optimal option, we can form a very effective and promising mechanism in this area,” – the deputy emphasized.
