The Model is innovative for the following reasons:
- Communication platform developed in Azerbaijan was the first such solution;
- Engagement platform allowed convenient feedback & idea submission from public;
- Benchmarking tool, introduced for analytical information support for reform and investment related decision makings;
- The institutional framework established a bridge among institutions, thus driving capability building and collaboration and faster alignment among institutions;
- Introduced agile working principles in the reform process which strengthened and accelerated reforms;
- Introduced Predictive Impact Analytics of all legal acts based on a new mechanism that combined the elements of RIA.
- Moreover, the Model cultivates innovation mindset for all team members as they continuously brainstorm on innovation reforms. This also helps to drive collaboration and innovation mindset within institutions with the aid of members who play the role of change agent.

During the last 4 years the Model passed through 3 phases: establishment (2016-2017), progression (2017-2018) and innovation phases (2018-2019). In the 1st stage the core of the Model was designed, and implementation started. During 2nd phase, implementation of operational plans started, and all the parties worked intensely on reforms. In the innovation phase which declared as environmentally-friendly stage, many digital platforms and analytical tools were launched, such as benchmarking, “Public-Private Dialogue” Platform, communication platform that helped to further increase the coordination and efficiency. Finally, the most recent innovative tool is the Digital Calendar (https://azranking.az/en/protocols-announcements) launched with the objective to increase public participation and transparency. Innovation phase proved to be important in ensuring the sustainability and continuous development of the Model itself. The Center is also focused on reforming the Model itself ongoingly.

The Model was developed with close engagement of the Presidential Office, the Center for Analysis of Economic Reforms and Communication and related Institutions. This cooperation has helped to design an institutional framework to take the agility of reforms to the next stage and develop innovative tools. More than 300 participants from 36 government agencies, private sector, academia and civil society (41 NGOs) collaborate on voluntary basis within Public-Private Dialogue Platform.

Below are the main beneficiaries:
- Citizens: providing everyone with equal access to improved public services;
- People with disabilities and elderly: digitalizing public services facilitated convenient utilization of public services without a need to visit institutions physically;
- Civil society: to be directly involved in the reform process;
- SME owners: improvements in public services were targeted at removal of barriers, reduction of burden and creation of opportunities for business.

Since launch, the Model involved 300+ people who spent 789K work-hours, attended 627 meetings to design 136 initiatives and pass 55 legal acts, and improvement in several aspects were achieved:
– Economically, the reforms paralleled sustainable GDP growth (38 billion USD in 2016 to 47 billion USD in 2018), 33% increase in non-oil exports between 2016-2018 and a growing number of new businesses by year that doubled between 2016-2019;
– On social aspect, the Model helped to provide equal services to all groups of population. For instance, easier process for establishing a new business resulted in twice more businesses established by females in 2019 compared to 2016;
– Environmentally, the Model helped to reduce paper use despite increasing communication. Introduction of communication platform and establishment of digital journeys in most reforms (e-procurement, e-court) helped to significantly reduce paper usage. A separate evaluation of the Model was conducted by McKinsey & Company.

1. Need for improvement of reform experience was an obstacle at the beginning: Organized trainings, enabled knowledge sharing and introduced digital benchmarking tool to guide working group members;
2. People raised concerns regarding the applicability and effectiveness of the new Model: Constantly educated people, monitored their activity and replaced inactive members;
3. No digital tools existed to facilitate feedback from public: Designed a digital engagement tool enabling convenient feedback via web-platform;
4. No electronic infrastructure existed to facilitate communication process as number of people involved in the Model increased: Launched a digital communication platform;
5. Concerns on financing and need for budgetary allocations: Teams are designated from existing institutions which results in almost no incremental costs, enabling the Model to be financially sustainable. So far, the use of existing resources are maximized at all levels.

The low-cost/high-impact nature of the Model has proved its efficiency and success by fulfilling the following conditions:
(Effective coordination) ensure the efforts are coordinated in a more sustainable way and each reform can build upon the learnings of previous reforms. Have a responsible institution in charge of coordination of reform efforts;
(Continuous collaboration) efficiently bring reform teams from relevant institutions together and set a process enabling their continuous mutual and collaborative work based on enthusiasm, motivation and creativity;
(Agile institutional framework) take the agility in the design and implementation of government reforms to improve business environment to the next stage via sustainable institutional framework;
(Inclusiveness) increase engagement of citizens, civil society organizations and businesses in the reforms process;
(Innovation and technology) ensure innovation is an indispensable part of the process across all above pillars.

Inclusiveness and innovative tools of the Model increase its potential to be replicated on local and global levels. Emerging economies face challenges in the reform process because of limited reform experience, lack of innovative tools to facilitate coordination and regular analysis. Due to this, the Model can be free of charge replicated in other countries with minor adjustments to accelerate reforms. Initial discussions are in progress with several countries, including Afghanistan, Kenya and, Uganda for the reapplication of the Model. Furthermore, IFC vice-president Hans Peter Lankes, during his visit to Azerbaijan in September, 2019, informed his intention to promote it for reapplication in other countries. On local level, several institutions (e.g. AzerSu OJSC, AzeriGas PU) have already started adapting and replicating certain elements of the Model. There are many examples of the working group members who, inspired by the Model’s success, initiated reforms in their institutions.

Certain lessons learned through this journey are particularly important in terms of re-applicability of the Model in other contexts:
- Changing the mindsets of people took time but was the most important enabler of success;
- Collaborative work of representatives of different institutions helped achieve things much faster;
- The novelty of the management style (involving diagnostics, implementation and impact analysis for each topical working group) caused concerns among people at the beginning, but with the first achievements of the initiative, the initial concern was replaced with enthusiasm and motivation.
- Effective institutional framework helped drive collaboration and keep costs low;
- Introduction of innovative tools facilitated coordination;
- Approach for involving private sector, and civil society helped ensure the effectiveness of reforms via early feedback.

Since establishment of the Model, Azerbaijan significantly improved its business environment carrying out 136 reform initiatives in 19 areas in order to create more favorable economic and social opportunities for citizens. Several international organizations recognized the Model’s successes: the World Bank’s Doing Business report recognized Azerbaijan as a top 10 economy that improved in most areas in 2017 and 2018. Same report ranked Azerbaijan as a top 25 economy for doing business in 2018. Moreover, World Bank highlighted Azerbaijan as one of top 20 reformist countries among 190 countries in “Doing Business 2020”. Other reports such as Global Competitiveness Report, Economic Freedom Index also reported improvements in the business environment. In 2019, World Intellectual Property Organization (WIPO) rewarded the Center for Analysis of Economic Reforms and Communication with “IP Enterprise Trophy” for designing and implementing the “Economic Reforms Governance Model” successfully.