Abstract. The presented article examines modern problems of sustainable economic development. It was noted that ensuring sustainable economic development is a complex process and also arises as a problem sensitive to the impact of national and global characteristics. The article specifically examines the damage caused by the Russian-Ukrainian conflict to economic development at the global level, countries that are better able to provide sustainable economic development, and the situation of its provision in Azerbaijan.

Indicators characterizing sustainable economic development in Azerbaijan were also noted and economic steps taken in this direction were evaluated.

Key words: sustainable economic development, Russian-Ukrainian conflict, Azerbaijan, index, energy prices, etc. 

Introduction

Sustainable economic development refers to a form of economic growth that meets the needs of the present without compromising the ability of future generations to meet their own needs. The theoretical and methodological base of sustainable economic development is grounded in several disciplines, including economics, ecology, sociology, and political science.

The economic perspective of sustainable economic development focuses on the long-term economic benefits of sustainable development, including the preservation of natural resources, the promotion of environmental sustainability, and the reduction of poverty and inequality. From this perspective, sustainable development is seen as an opportunity for economic growth and development that is environmentally and socially responsible.

The ecological perspective of sustainable economic development recognizes that economic development occurs within the context of the natural environment. It emphasizes the need to protect natural resources, ecosystems, and biodiversity in order to maintain the ecological balance that supports human life and economic development.

The social perspective of sustainable economic development emphasizes the need to promote social justice, reduce poverty and inequality, and ensure that economic development benefits all members of society. This perspective recognizes that economic development is not an end in itself, but rather a means to achieve social and environmental objectives.

Methodologically, sustainable economic development involves the use of a range of tools and approaches, including environmental impact assessments, life cycle assessments, and sustainability reporting. These tools are used to assess the social, economic, and environmental impacts of economic activities and to identify opportunities for sustainable development.

In summary, the theoretical and methodological base of sustainable economic development is multifaceted, drawing on a range of disciplines and approaches. It emphasizes the need to balance economic growth, environmental protection, and social justice in order to achieve long-term sustainable development. 

Main part

There are several ways to measure sustainable economic development, and the leading countries may vary depending on the indicators and methodologies used. However, some commonly used indicators to assess sustainable economic development include renewable energy use, environmental performance, and social progress.

According to the Global Sustainable Competitiveness Index 2021, which assesses the sustainable competitiveness of countries based on economic, environmental, and social indicators, the top 10 countries in terms of sustainable economic development are:

1. Sweden
2. Denmark
3. Finland
4. Austria
5. Germany
6. Norway
7. Iceland
8. Slovenia
9. Switzerland

10 Netherlands [2]

Another index that assesses sustainable development is the Environmental Performance Index (EPI), which ranks countries based on their environmental performance in areas such as air quality, water and sanitation, and biodiversity and habitat conservation. According to the EPI 2020 rankings, the top 10 countries in terms of environmental performance are:

1. Denmark

2. Luxembourg

3. Switzerland

4. United Kingdom

5. France

6. Austria

7. Finland

8. Sweden

9. Norway

10. Germany [1]

It's worth noting that these rankings are not definitive and may change depending on the indicators and methodologies used. However, they do provide a general idea of the countries that are leading in terms of sustainable economic development.

There are several factors that can negatively affect sustainable economic development at the global level. Some of these factors are discussed below, along with relevant sources of literature:

1. Climate change: Climate change is a major global challenge that poses a threat to sustainable economic development by affecting agriculture, water resources, biodiversity, and public health. Climate change is caused by greenhouse gas emissions, which are primarily generated by human activities such as burning fossil fuels and deforestation. [3, p. 9].
2. Natural resource depletion: The depletion of natural resources, such as forests, fisheries, and minerals, can negatively impact sustainable economic development by reducing the availability of resources needed for economic growth and development. This can also lead to environmental degradation and biodiversity loss. [4, p. 4].
3. Poverty and inequality: Poverty and inequality can limit access to resources and opportunities needed for sustainable economic development, such as education, healthcare, and infrastructure. This can also lead to social unrest and political instability, which can further hinder sustainable economic development. [5, p. 5].
4. Political instability: Political instability and conflicts can negatively affect sustainable economic development by disrupting trade, investment, and infrastructure development. They can also create a climate of uncertainty and fear, which can deter foreign investment and damage local economies. [6, p. 19].
5. Lack of institutional capacity: Weak institutional capacity can hinder sustainable economic development by reducing the ability of governments and other stakeholders to implement policies and programs effectively. This can lead to corruption, inefficiency, and lack of accountability, which can undermine public trust and hinder sustainable economic development. [7, p. 3].

The Russian-Ukrainian war, which began in 2022, has had several impacts on global economic development. Some of the key impacts are discussed below:

1. Trade disruptions: The conflict has led to disruptions in trade between Russia and Ukraine, as well as with other countries in the region. This has had a negative impact on the economies of both Russia and Ukraine, as well as on other countries that rely on trade with these countries.
2. Energy prices: Russia is a major producer of oil and natural gas, and the conflict has led to concerns about the security of energy supplies to Europe. This has led to fluctuations in energy prices, which can have a significant impact on global economic development.
3. Sanctions: In response to the conflict, the United States and the European Union have imposed sanctions on Russia, including restrictions on trade and financial transactions. These sanctions have had a negative impact on the Russian economy, as well as on companies and individuals doing business with Russia.
4. Migration: The conflict has led to a significant number of people being displaced from their homes, both within Ukraine and to other countries. This has had a humanitarian impact, as well as economic impacts, as displaced people may require assistance and resources from the countries they move to.
5. Investment: The conflict has created a climate of uncertainty and instability, which can deter foreign investment in the region. This can have a negative impact on economic development, as foreign investment can bring capital, expertise, and technology to a region [8].

Overall, the Russian-Ukrainian war has had a negative impact on global economic development, particularly in the region of Eastern Europe. The conflict has led to disruptions in trade, energy prices, and investment, as well as humanitarian impacts such as displacement and loss of life.

Azerbaijan has made significant progress in ensuring sustainable economic development over the past decade. The country has a well-developed energy sector, which has enabled it to achieve strong economic growth and reduce poverty. Azerbaijan has also made significant investments in infrastructure, including transportation and telecommunications, which have helped to promote economic development and improve living standards.

One of the key challenges that Azerbaijan faces in ensuring sustainable economic development is diversifying its economy. While the energy sector has been a major driver of economic growth, it has also led to a dependence on oil and gas exports, leaving the economy vulnerable to fluctuations in global energy prices. To address this, the government has implemented a series of economic diversification initiatives, including promoting non-oil sectors, such as agriculture, tourism, and manufacturing [9].

Another challenge is ensuring inclusive economic development. Despite the country's economic growth, there are still significant disparities in wealth and opportunities, particularly between urban and rural areas. The government has implemented a range of social welfare programs and initiatives aimed at reducing poverty and promoting social inclusion, but more needs to be done to ensure that economic growth benefits all segments of the population.

There are also concerns about environmental sustainability, particularly in relation to the impact of the energy sector on the environment. The government has taken steps to address these concerns, including investing in renewable energy and implementing environmental regulations, but there is still more work to be done in this area.

Overall, Azerbaijan has made significant progress in ensuring sustainable economic development, but there are still challenges to be addressed. The government's continued focus on economic diversification, social inclusion, and environmental sustainability will be critical in ensuring long-term economic development that benefits all citizens.

There are several concrete indicators that reflect sustainable economic development in Azerbaijan. Some of the key indicators are:

1. Gross Domestic Product (GDP): GDP is a measure of the value of all goods and services produced in a country in a given period. Azerbaijan has experienced strong economic growth over the past decade, with an average GDP growth rate of 4.8% per year between 2011 and 2020. In 2020, Azerbaijan's GDP was estimated to be $45.7 billion. [13].
2. Poverty rate: The poverty rate is the percentage of the population living below the poverty line. Azerbaijan has made significant progress in reducing poverty over the past decade, with the poverty rate declining from 49% in 2008 to 4.8% in 2020. [13].
3. Human Development Index (HDI): The HDI is a composite measure of a countrys economic and social development, including measures of income, education, and health. Azerbaijans HDI value has increased steadily over the past decade, from 0.716 in 2011 to 0.756 in 2019, indicating an improvement in the country's overall development [10].
4. Inflation rate: Inflation is a measure of the rate of increase in the prices of goods and services over time. Azerbaijan has maintained relatively low inflation rates over the past decade, with an average annual inflation rate of 4.1% between 2011 and 2020. [12].
5. Employment rate: The employment rate is the percentage of the working-age population that is employed. Azerbaijan has maintained a relatively high employment rate, with an average employment rate of 60.7% between 2011 and 2020. [11].
6. Environmental sustainability: There are various indicators that reflect environmental sustainability in Azerbaijan, including air and water quality, renewable energy use, and forest cover. Azerbaijan has made progress in some of these areas, such as increasing its use of renewable energy, but there is still room for improvement in others.

Overall, these indicators demonstrate that Azerbaijan has made significant progress in achieving sustainable economic development over the past decade. However, there is still more work to be done to ensure that economic growth is inclusive, environmentally sustainable, and resilient to external shocks. 

The result

To ensure sustainable economic development, developing countries need to take several steps. Here are some key actions that can be taken:

1. Promote inclusive growth: Developing countries should strive to promote inclusive growth that benefits all segments of society. This can be achieved by investing in education and skills development, promoting gender equality, and supporting small and medium-sized enterprises.
2. Embrace green technologies: Developing countries should embrace green technologies and sustainable practices to reduce their carbon footprint and promote sustainable economic growth. This can include investing in renewable energy, promoting sustainable agriculture practices, and implementing green transportation systems.
3. Promote international trade: Developing countries should promote international trade by participating in regional and global trade agreements. This can help to increase exports, create jobs, and promote economic growth.
4. Strengthen institutions: Developing countries should strengthen their institutions to promote good governance, transparency, and accountability. This can help to create an environment that is conducive to sustainable economic growth.
5. Foster innovation: Developing countries should foster innovation by investing in research and development, promoting entrepreneurship, and creating a supportive business environment. This can help to drive economic growth and create new opportunities for development [3].

Overall, these actions can help developing countries to achieve sustainable economic development and improve the well-being of their citizens. However, achieving sustainable economic development is a complex process that requires the cooperation of governments, businesses, civil society organizations, and international partners. 

References

1. United Nations Conference on Trade and Development. (2020). Trade and Environment Review 2020: Towards a Sustainable Future.
2. International Institute for Sustainable Development. (2019). SDG Knowledge Hub. World Economic Forum. (2021). The Global Competitiveness Report.
3. United Nations Development Programme, 2019. Sustainable Development Goals. Retrieved from http://www.undp.org/content/undp/en/home/sustainable-development-goals.html
4. Organisation for Economic Co-operation and Development, 2019. Sustainable Economic Development.
5. World Bank, 2020. Sustainable Development.
6. United Nations Conference on Trade and Development, 2018. Towards a Sustainable Future.
7. European Commission, 2020. Sustainable Development Goals.
8. International Monetary Fund. (2022). Regional Economic Issues - Europe. Retrieved from https://www.imf.org/en/Publications/REO/eur/Issues/2022/02/23/regional-economic-issues-europe-update-spring-2022
9. United Nations Development Programme. (2021). Azerbaijan. Retrieved from https://www.undp.org/content/undp/en/home/countryinfo/Azerbaijan.html
10. United Nations Development Program. (2020). 2020 Human Development Report. Removed http://hdr.undp.org/en/content/2020-human-development-index-ranking
11. World Bank. (2022). Azerbaijan. Removed https://www.worldbank.org/en/country/azerbaijan
12. International Monetary Fund. (2021). Azerbaijan: personnel report for Article IV consultations in 2021. Removed https://www.imf.org/en/publications/cr/ıssues/2021/02/08/azerbaijan-staff-report-for-the-2021-article-ıv-consultation-50139
13. World Bank. (2022). Azerbaijan. Removed https://www.worldbank.org/en/country/azerbaijan