Innovative Way of Solution of “Smart City in Azerbaijan City
Problems
ARZU HUSEYNOVA1, OPHELYA MAZANOVA2 , PIKAKHANUM KHUDIYEVA3,
HICRAN MURADOVA3, HACIYEVA LEYLA3, NAJAFOVA KAMALA3
1Department of Digital Economy, Azerbaijan State Economy University, AZERBAIJAN
2E-Management Center, Azerbaijan State Economy University, AZERBAIJAN
3Department of Economics and Management, Azerbaijan State Economy University, AZERBAIJAN
Abstract: - Considering the application of “smart city” conception with change of modern town-building
priorities in the liberated territories (in Karabakh) in Azerbaijan, the opportunity of this conception for
improvement of economic opportunities, infrastructure and services, management created before town-building
has been elucidated in the article.
The main features of “Smart city” conception, its development and evolution, standards and solutions, factors
and obstacles stipulating its application have been analyzed by author. The capacity and structure, application
stages and scenario of “smart” market is given in the article.
The application of this conception in Azerbaijan has been investigated.
Key- words: - smart city, smart village, smart city conception, smart ecosystem
Received: September 16, 2021. Revised: July 7, 2022. Accepted: July 26, 2022. Published: September 5, 2022.
1 Introduction
The theory of “smart city” has found practical
application in the last 10 years. The opening of new
technological opportunities with the development
of big data processing technologies, IoT, and the
Internet has made the “Smart city” from a dream to
a reality. The main features of “Smart cities”
include: sustainability and environmental
compliance, participation of publicity in
management, efficient use of information,
improving the quality of services and living
standards.
development of the region. To do this, we should
analyze all aspects of the "Smart City" approach.
1.1 Smart City” – Approach
Though “Smart city” approach is used widely in
the world, its single definition is not available. But,
the interpretation of this conception may be
different in various countries, organizations and
literature. IBM Company, which is considered one
of the main authors of smart city solutions, explains
it with three main quality indicators: provided,
related and intellectual.
The Russian government describes the smart city
as “innovative city” applying the solutions
comprehensively for welfare of environment and
residents. The European Parliament thinks that a
“smart city” is a city that tries to solve social
problems by using information and communication
resources. The EU sure that, such cities have
strategic significance for poverty, inequality and
fight against unemployment, effective management
of energy flows.
The European Union (EU) explains the smart
city as “city areas and communities established on
the basis of existing strong parties and assets, as
well as established on new opportunities improved
with better use of digital, telecommunication
technologies, innovations and knowledge in which
traditional and new network and services exist”. By
summarizing what has been said, we can say that
the term "smart city" usually refers to urban and
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2022.19.125
Arzu Huseynova, Ophelya Mazanova ,
Pikakhanum Khudiyeva, Hicran Muradova,
Haciyeva Leyla, Najafova Kamala
E-ISSN: 2224-2899
1394
Volume 19, 2022
A "Smart" (smart city/village/network/etc.)
approach to economic development could help
Azerbaijan improve economic opportunities,
infrastructure and services, and management.
Consequently, the issue of establishing new
cities or towns within the liberated areas becomes
actuality. In the Republic of Azerbaijan, extensive
work is taking place in this area. At the same time,
orders have been signed and related working groups
have been established. President Ilham Aliyev
remarked in his speech on January, 2021 that "the
residential points liberated from the Armenian
occupation would soon be reconstructed on the
basis of a smart city/village concept" (Caspian
News, 2021).
The application of Smart conception in
Karabakh is one of the actual factors for
establishment of the zone on the basis of modern
requirements, provision of sustainable development
and
rural networks that use innovation, knowledge, and
technology to promote development.
According to it, we determine the smart cities as
follows by using the simplified definition: A
"Smart City" is an organism having ears, eyes, and
senses.
“Smart city” is inversely related urban
environment. The collection of operative and exact
different information about all processes affecting
its element (the life of the population) in a "smart"
environment is provided and management is
formed on the basis of that information.
“Smart” - considers the use of ICT, large
information massive, the regulated mutual
organizational activity system of all subjects
(government, business, population) of processes
happened.
The conception of “Smart” brings new
conceptions with itself to town-building: internet of
things (IoT), big data (Big Data), information
management, etc.
The main features of smart city conception may
be given as follows by combining the thoughts of
International Organization for Standardization,
International Electrotechnical Commission,
International Telecommunication Union, European
Telecommunication Standards Institute and other
relevant organizations [9]:
Oriented to people - urban residents, businesses,
employees, tourists;
Well managed;
Accessible and open to people and new ideas;
Information about city activity is open;
Protects private information;
Bases on integrated services and infrastructure;
Is active in enlightenment and development of
citizens;
Fig. 1: Features of smart city
Source: Compiled by the author.
Any city is characterized by a huge capacity of
structural and non-structural information formed by
the flow of information about the processes
happened there (traffic flow, trade turnover,
environmental situation, etc.). This information is
not used fully in management in a traditional city.
The work with big data in a “Smart city” is a source
of the key information in the formation of efficient
management solutions.
Fig. 2: Information sources in decision-making
about “Smart city”
Source: Compiled by the author.
But the majority applies a “smart city”
technology to traditional city system by stages. A
“Smart city” combines all possible innovation
products in itself. Therefore, each city may choose
its own solution. The application of “Smart city”
solutions is in the stage of active growth in the
world. In a short time, this conception will be
applied in 2500 cities and with different solutions
project. One of the application models is
construction of the city from “zero” (in empty
area).
For example: Masdar city in UAE. It is the first
carbon-free green city project of the world. A city
provided only with solar energy and other
renewable energy sources. Completion of the
projects is considered as the first eco-city sample in
2025 [4].
We should note that, different technologies
constituting the basis of a “Smart city” conception
are in different stages of life cycle. The speed of
application of Smart City solutions is significantly
distinct in various regions of the world.
In 1990, it is understood that, future IT is related
to the development of technologies. Even then, IT-
dependent a “smart city” conception was proposed
firstly. Then, a “smart city” was considered as an
opportunity for protection of environment from
human impact. “Smart house” conception formed at
the beginning of 2000 was oriented firstly to the
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2022.19.125
Arzu Huseynova, Ophelya Mazanova ,
Pikakhanum Khudiyeva, Hicran Muradova,
Haciyeva Leyla, Najafova Kamala
E-ISSN: 2224-2899
1395
Volume 19, 2022
development of technology and infrastructure. It
caused to the development of new technologies. In
most cases, original innovative product applied was
not accepted by population; therefore it was not
produced afterward. After tests and errors for many
years, urbanists have proposed a new smart city
model. This model considered an active
participation of residents in application and
development of smart technological solutions.
Modern smart city model is not just advanced
technological infrastructure. This is a place where
people get new opportunities thanks to smart
solutions. By efficiently and productively using the
technologies and resources and time on the account
of digitalization traditional services, people become
smart city residents.
Fig. 3: Evolution of “Smart city”
Source: Compiled by the author.
Technological aspects of numerous "smart
cities" are considered in the research concerning
them. In fact, economic and social aspects of
“smart city” approach are one of the main factors of
technological application. According to
calculations of McKinsey Global Institute, the use
of smart city technologies can increase sensitivity
20-35% to extraordinary situations and as a result,
may decrease the number of the dead ones 10% as
a result of accidents, average time spent on the road
15-20% and morbidity of urban residents 8-15%
(McKinsey Global Institute, 2018). “Smart city”
technologies are very efficient in solution of
individual and management issues too. The city’s
digital twins allow to make certain forecasts for
city management, to find solutions based on it (to
determine the population growth, tourist flow,
future communal and housing requirements, to save
resources, to create social and transport
infrastructure, etc.) and make decisions, the
increasing of the quality, productivity and
interactivity of city services, decreasing of costs
and resources consumption improves the relation
among city residents and state.
The main instrument of a “Smart city”: City and
communal infrastructure is the large application of
digital and engineering solutions.
The main issues of “Smart city”:
to form the efficient system of the management
of city economy;
creation of safe and comfortable condition for
life of citizens.
The main principles of “Smart city”:
Human orientation;
Technology of city infrastructure;
Increase of management quality of city
resources;
Comfort and safety;
Economic benefit, also efficiency of services.
The main features stipulating the application of
Smart City solutions are follows:
High growth rates of urbanization in several
countries of the world;
Application of new mobile communication
standards;
Internet of things (IoT), high development
rates of the world market;
Decrease of application costs of Smart City
solutions;
State support to the development of “Smart
city” ecosystem in several regions of the world, the
increased demand and other factors to the ways of
solution at the level of city administration.
The main obstacles to the application of Smart
City solutions are as follows:
Many part of Smart City solutions are still in
the testing and market stages and are not ready to
expand;
Sustainable high price for large-scale
application of Smart City solutions in undeveloped
countries;
A weak development of ecosystem to support
the application of Smart City solutions in
developing countries;
Lack of strategic view on perspectives of
Smart City in significant part of middle and small
cities;
Lack of qualified personnel and several other
factors.
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2022.19.125
Arzu Huseynova, Ophelya Mazanova ,
Pikakhanum Khudiyeva, Hicran Muradova,
Haciyeva Leyla, Najafova Kamala
E-ISSN: 2224-2899
1396
Volume 19, 2022
2 Problems
The change of development priorities of the society
on the basis of technological development in the
modern time causes to change the base of economic
development.
The cities that increase social, economic, and
environmental sustainability face many problems:
climatic changes, population growth, and urban
flow; political and economic instability; increase in
transport and road traffic organization;
establishment of communications; energy and
water supply; security issues; growth of urban
economy; increase in population demand, etc.
These problems pose completely new issues
before urban economies. Changing the cities leads
to sustainability to problems, the application of
digital solutions and technologies, and improving
lifestyles and comfort.
In its turn, this expedites the learning of the
world's tendency on the improvement of town-
building and the living standards of the urban
population, through the use of practice
accumulated, optimization of infrastructure, and
application of technological and organizational
innovations.
According to forecasting of UNO, the world’s
population will increase from 7.6 billion to 9.2
billion till 2050, 6.8% of them will live in city [2].
56% of the population lives in urban or
suburban areas in Azerbaijan (at present, the
number of population is more than 10 million in
Azerbaijan) [3].
High rate of urbanization requires the
optimization of transport infrastructure, medical
services, energy resources and development of
security areas.
Innovative technologies, artificial intelligence
and machine learning, processing of large
information, internet of things (IoT) is used widely
on the stated areas, especially for the purpose of
public security in the developed countries. The
Economist ranks safe cities annually on 76
indicators (2021 report includes 60 cities). The
rating includes digital, medical, infrastructure,
environmental and personal security and other
applied areas of modern technologies.
Thus, according to the world tendency,
innovation way of development of territorial unit is
“Smart” (smart city/village/network/etc.)
conception.
3 Analysis and Evaluation
Smart City solutions have a high growth rate in the
world market in recent years. According to
forecasts, the total capacity of Smart City market in
the world may pass 2,5 trillion USD till 2025 [11].
At present, smart city solutions have priority in
the markets of the North America and EU. Also,
the Asian market may be the most dynamically
developing regional market for Smart City
solutions in the medium term. The use of smart
technologies in the world increases. “Smart”
services and “smart” government have become the
main elements of the world market. According to
Frost & Sullivan, the smart energy and smart
transport is the fastest applied solutions. The
condition in the world dictates the game rules of the
market. Therefore, the solutions in the medical field
become actual for smart developments with the
initiation of the corona virus pandemic. In the
future, this view may change depending on the
economic-social condition of the countries and the
change of demands for smart solutions.
Also, the market of Smart City solutions is one
of the fastest developing and most promising
markets and is characterized with high dynamic
competition environment. Thousands of
corporations, medium and small companies, as well
as startups in market niches work in the industry.
Fig. 4: Frost & Sullivan
Source: Compiled by the author
Today, the corporations such as Huawei, IBM,
Cisco, AT&T, Siemens, Oracle, Microsoft,
Schneider Electric, Hitachi and Ericsson are among
the leaders of the market for global smart city
technologies.
The application perspectives of certain elements
of “Smart City” solutions in Azerbaijan are
determined by the following factors:
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2022.19.125
Arzu Huseynova, Ophelya Mazanova ,
Pikakhanum Khudiyeva, Hicran Muradova,
Haciyeva Leyla, Najafova Kamala
E-ISSN: 2224-2899
1397
Volume 19, 2022
The most actual problems and calls faced by city
administration;
City resources existing for application of Smart
City elements;
Level of competence of city administrations and
their interest in application of Smart City solutions;
Economic efficiency of “Smart City” projects in
the condition of Azerbaijan;
Existence of appropriate equipment and
software in the market of Azerbaijan.
Today, by considering the most promising
complex of technical, economic, social and
political factors in regard to application potential in
the Republic of Azerbaijan, Smart City solutions
may be those we have mentioned below:
elements of “smart” housing-communal
economy, also intellectual management systems of
lighting of streets and “smart” calculation of
energy;
elements of “smart” city transport system;
solutions in the field of intellectual
technologies for management of city environmental
quality;
smart health solutions.
3.1 Implementation stages of Smart City
Conception
There are 3 principal scenarios for the
implementation of the “Smart City” conception in
the world: centralized, non-centralized and local
activity variant. The selection of scenario is
determined depending on concrete condition of
city, identity of the main subject and investor of
town-building processes.
Let's look through each scenario:
According to the centralized scenario, the
state representing local government or regional
government undertakes the role of the principal
organizer of all processes, it becomes the holder of
the formed databases, digital platforms to be used
in analysis and management and unified digital city
ecosystem formed on their basis.
The government mobilizes all existing resources
and attracts all interested parties business
structures, technology and service companies,
different type associations in implementation of
projects, coordinates the interested parties for
application of “smart” technologies in all fields of
city economy.
As a whole, the government acts as a preparation
initiator for the complex project or large-scale
technological modernization project of
infrastructure for implementation of smart city
conception. In this case, a single center is
established for the monitoring of existing condition
in the city on the basis of information entered in
real time regime.
According to the non-centralized scenario,
the separate corporative technological projects are
prepared and implemented. For example, the
construction of smart houses and smart estates,
intellectualization of energy assignment and
management, intellectualization of separate
elements of transport infrastructure and water
supply systems, etc.
Local management authorities provide
investment attractiveness for the application of
smart city technologies.
Investors combine the information presented by
city services and individual users.
As a result, the decisions are made and new
solutions and services are created as a result of the
processing of this information.
Local activity scenario local joint activity
was implemented on application of smart city
technologies of local self-management authorities
and other interested parties.
So, non-centralized management system of the
application of smart city technologies was formed.
Besides local self-management authorities, the
unions and partnerships of different subjects play
an important role in this system.
The projects on application of smart city
technologies were implemented in pilot regime.
The followings may be examples for such
projects: street lighting, monitoring of parking,
video shooting and transport management,
monitoring of air quality, fullness of garbage
containers, waste utilization navigation, passenger
traffic information, analysis of social media
information.
Such technologies may be tested in different
combinations within allocated zones, it allows to
develop an integration system of different types of
data on a single platform.
It would be more advisable to use the approaches
that are combination of the 2nd and 3rd activity
scenarios in the condition of Azerbaijan, because
these variants allow to phased development of
smart city on the base of existence of necessary
opportunities for the attraction of financial and
material resources, private and public funds in the
territory.
So, the phased implementation of “Smart city
conception is more advisable. The period of stage
was determined depending on existence of the
attracted financial and material-technical resources
and social-economic condition of the region.
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2022.19.125
Arzu Huseynova, Ophelya Mazanova ,
Pikakhanum Khudiyeva, Hicran Muradova,
Haciyeva Leyla, Najafova Kamala
E-ISSN: 2224-2899
1398
Volume 19, 2022
3.2 The following steps should be made for
phased implementation of “Smart city”
conception:
formation of organizational structure for
implementation of conception;
selection of priority pilot projects and areas
Preparation of road maps on certain areas of
implementation of “Smart City” conception;
formation of project groups;
to conduct a joint examination of projects, to
select priorities and to seek for partners for their
implementation;
implementation of results of pilot projects on
different fields of activity and increasing of their
scale;
4 Literature Review
4.1 Works Performed on “Smart City”
Conception in Azerbaijan
Works on the “Smart” conception were initiated
from the beginning of XXI century in Azerbaijan.
Let's look through the chronicle of the works
performed.
Table 1. Chronicle of works performed
according to “Smart” conception
DATE
REMARK
2008 -2011
Intelligent Transport Management Center
2010 August
Order on “State Program for the development
of communications and information
technologies in the Republic of Azerbaijan in
2010-2012 (Electron Azerbaijan)”
2011 May
Decree on “Some measures in the field of
provision of electronic services by public
authorities”
2017 March
“Public Wi-Fi” project
2018 March
Decree on “Measures for development of e-
government and transition to digital
government”
2018 March
Establishment of “E-Government
Development Center” public legal entity
2018
September
Decree on “Expanding the use of electronic
services in the field of labor, employment,
social protection and social security”
2019
Transition of some organizations and
education to online regime
2020
February
“National Action Plan for the promotion of
open government for 2020-2022”
2020
Starting to build airports and other objects in
the liberated areas with a “smart” approach
2021
February
Order on “Azerbaijan 2030: National
Priorities for Socio-Economic Development”
2021 April
Order on “Preparation of “Smart City” and
“Smart Village” conception”
2021
Starting to build “smart village” project in
Aghali village of Zangilan region
In 2008, the project was initiated to be prepared
with “SK C&C” Company of the Republic of South
Korea in regard to application of intelligent
transport management system in Baku. The
foundation of the center was laid in 2009 and
Intelligent Transport Management Center was
opened in Baku in 2011. The Center engages in
movement regulation of public transport in Baku
and optimization of movement routes [8].
Since 2010, the works were performed on
formation of electronic government that was one of
the main parts of “Smart conception. The legal
base of the activity was established by means of
Order of the President of the Republic of
Azerbaijan on approval of the “State Program for
the development of communications and
information technologies in the Republic of
Azerbaijan in 2010-2012 (Electron Azerbaijan)”
(10 August 2010), “Action Plan on formation of
“Electronic government in the Republic of
Azerbaijan in 2010-2011” approved under order of
the Cabinet of Ministers of the Republic of
Azerbaijan (14 May 2010), Decrees on “Some
measures in the field of provision of electronic
services by public authorities” (23 May 2011), on
“Measures for development of e-government and
transition to digital government” (14 March 2018)
and on “Expanding the use of electronic services in
the field of labor, employment, social protection
and social security ( 05 September 2018) and
other normative legal acts [1].
These have a great importance not only for the
development of electronic government and services
in the Republic of Azerbaijan, but also for the
transition to the “smart” conception, improving the
living standards of citizens, expanding the fight
against corruption [1].
In accordance with decree No 1885 dated on 14
March 2018 of Ilham Aliyev, the President of the
Republic of Azerbaijan, on Measures for the
development of e-government and transition to
digital government, “E-Government Development
Center” public legal entity established under the
State Agency for Public Service and Social
Innovations under the President of the Republic of
Azerbaijan acts closely with other public
authorities on formation of “E-Government” as a
coordinator of works performed in this field and
provides the activity on establishment of proper
infrastructure [1].
“E-Government Development Center” fulfills the
functions of coordinating body in order to realize
the coordination in the field of formation,
conducting, integration and effective management
of public information resources and systems and
this is also responsible for provision of promotion
of services among population. The activity
directions of the center mainly cover the electronic
public services, e-visa issuance and services on
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2022.19.125
Arzu Huseynova, Ophelya Mazanova ,
Pikakhanum Khudiyeva, Hicran Muradova,
Haciyeva Leyla, Najafova Kamala
E-ISSN: 2224-2899
1399
Volume 19, 2022
digital payment systems. In order to increase the
service quality in the stated fields, to simplify the
use of service and to increase the citizen
satisfaction, the advanced international experiences
were investigated and innovative novelties were
applied by considering the citizen needs [4].
“E-Government Development Center” organizes
the information exchanges and provision of e-
services among information systems and resources
of public authorities by means of “E-Government”
portal. Also, this provides the management and
activity of “E-Government” portal and continues
the improvement measures. The said measures are
implementing within the new model of “E-
government”, which will cover a single e-cabinet
and other functions within it. Also, multiple
measures were implemented by Center in order to
develop e-services, also e-services in the direction
of government business (G2B government to
business), business-government (B2G business to
government) [3].
In 2017, the Ministry of Digital Development
and Transport and “Huawei” Company
implemented the “Public Wi-Fi” project together.
The panic of the Covid-19 virus in the world in
2019 and the announcement of a pandemic
accelerated the digital transformation in the world.
All sectors of the economy are being forced to
continue using digital technologies. Also, the
pandemic has accelerated the issues posed by the
world, including the Republic of Azerbaijan, in the
direction of digitalization, the application of new
digital solutions and modern technological
development.
The conducting issues of investigation in regard
to the application of “smart city” conception and
determination of opportunities for implementation
of pilot project were reflected in the “National
Action Plan for the promotion of open government
for 2020-2022” approved under Order dated 27
February 2020 of the President Ilham Aliyev.
Azerbaijan Republic accepted “Azerbaijan 2030:
National Priorities for Socio-Economic
Development” under Order No 2469 dated 2
February 2021 of the President of the Republic of
Azerbaijan which has a special importance in the
direction of fulfillment of obligations arising out of
“The transformation of our world: Agenda for
Sustainable Development 2030” of the United
Nations (Order of the President of the Republic of
Azerbaijan, 2021) [1].
“Smart city”, “Smart village” is one of the
solution ways of these priorities. According to the
document, the following five National Priorities for
the socio-economic development of the country
should be realized in the next decade:
Fig. 5: Five National Priorities for the socio-
economic development
Source: Compiled by the author
Also, the president signed an Order on
“Preparation of “Smart city” and “Smart village”
conception” on 19 April 2021. Already, the works
on building the “smart village” were performed in
the liberated Zangilan region. Town-building on the
basis of “smart city” conception was initiated from
“0” in our liberated lands after the Second
Karabakh War. Here, everything started to be built
from zero, therefore technological rules are kept
and infrastructure is established. Construction is
carrying out in Aghali village of Zangilan region.
The works are performed in stages. In the first
stage, the “smart” project covers 5 areas
residence, production, social services, “smart
agriculture” and alternative energy areas. The
works initiated as pilot project will be applied in
other territories too in future. The main purpose is
the usage expansion of electronic services and
provision of sustainable development in villages
and outlying territories of the region.
Already, 200 individual houses have been built
within the "Smart Village" project in the Zangilan
region of Azerbaijan.
This territory that has been founded by Ilham
Aliyev, the President of Azerbaijan, on April 2016,
covers 110 hectares area. The first step of the return
to Karabakh region of Azerbaijan started from
Zangilan within the project. A school for 360
people and a kindergarten for 60 people are
expected to operate in Zangilan. Roads have
already been built. All opportunities will be
provided for distant education in the “Smart
school” to be established in village. Here, modern
town-building standards will be applied. In a word,
there will be comprehensive conditions for living of
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2022.19.125
Arzu Huseynova, Ophelya Mazanova ,
Pikakhanum Khudiyeva, Hicran Muradova,
Haciyeva Leyla, Najafova Kamala
E-ISSN: 2224-2899
1400
Volume 19, 2022
residents. The modern irrigation systems will be
used in the “Smart agriculture”. Sowing plan is
prepared for “Smart village” project. “Smart
management system will be carried out from data
and analysis center [3].
A 110 kV power transmission line has been laid
to Zangilan region. Two 25-megawatt transformers
have been installed in “Zangilan” substation. At
present, non-residential subscribers are considered
in the territory.
Electricity demand in Zangilan, which is
forecasted to accommodate more than 50 thousand
people, is expected to exceed 40 MW by 2040.
The geographical position of the region and the
opportunities existing here creates a favorable
condition to turn Zangilan into an international
transport and logistics center. International Airport
will play a great role in future successful socio-
economic development of Zangilan. Waste
management in Shusha city of Azerbaijan is
planned to be managed on the basis of smart
technologies. The construction of new sanitary
polygon meeting international ecological standards
and technical norms, collection, transportation,
disposal and neutralization of all solid household
wastes is provided by “Temiz SheherCompany in
the liberated Shusha city of Azerbaijan. So, the
works are already initiated in the direction of
establishment of modern ecological and
technological management system of solid
household wastes. 200 special containers were
brought for disposal of wastes and were installed in
the determined waste dumps.
To build the city's environmental situation and
waste management system is necessary by applying
the latest technological innovations according to
the modern standards.
5 Discussion
A “smart city” is built on the basis of smart
technologies. That is, these two concepts are
inseparable. A “smart city” is a city built on smart
technologies. Smart technologies must meet all the
requirements of people living in a “smart city”. The
concept of “smart city” is a broad field of research.
6 Result
By summarizing we can say that, the application
of smart city/village conception in Azerbaijan is
a requirement of the time. And here is a fertile
environment. There is material and technical base
and infrastructure used in different areas of
activity for application of digital technological
solutions. This means the existence of the
qualified personnel potential and experts on
application of upcoming solutions.
7 Conclusion
By summarizing our thoughts on the “smart city”,
we can come to the following conclusion:
The main purpose of building smart city is to
form the city ecosystem which is sensitive to the
needs of residents, that allows to increase their
social activity and life quality and managed on the
basis of big data analysis.
The majority of existing smart city projects
remains incomplete. The smart cities are mostly the
regions provided technologically with different
smart solutions in city infrastructure.
The existing non-digital elements of the smart
city considered when town-building strategies are
prepared. Here includes: financial limitations of
city budgets, inefficient and often outdated city
management, problems of provision of security of
private information of city residents, social justice
problems and several other factors.
The restrictive factor of establishment of smart
city is to find the best ways of its establishment.
The interested persons should answer to several
questions prior to making of a decision about
establishment of smart city:
Will the established smart city contribute to the
solution of socio-economic problems and ensuring
of social justice in the cities?
Will cities be able to implement financially the
smart projects or will the funds have to be used for
individual solutions?
To what extent are these smart solutions required
by citizens?
Here includes: the issues of establishment and
application of technical and technological standards
of “smart cities”, platform solutions that provides
the mutual relation of databases of different
service and sections and contributes to efficiency
and reliability of results, problems of ensuring
the “transparency” of information, purposeful
financing of these programs.
Thanks to it, a new stage of the development
spiral, which provides the formation of new
standards of life quality, begins.
As a result of the movement towards the
“smart city”, new trends in the development of
traditional areas of activity and new
opportunities, new specialties and corresponding
skills and abilities provided with complex
“cross” use of information are demanded.
Demand of the day is the establishment of a
model allowing to solve the majority of issues
created by rapidly changing requirements of
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2022.19.125
Arzu Huseynova, Ophelya Mazanova ,
Pikakhanum Khudiyeva, Hicran Muradova,
Haciyeva Leyla, Najafova Kamala
E-ISSN: 2224-2899
1401
Volume 19, 2022
modern areas of activity conforming to the
application strategy of smart city technology. The
number of technologies applied in application
strategy of smart city technology is not important
criterion. Implementation of programs and projects
of “smart city” activates the creative approaches
and innovative solutions in the fields of economic
activity.
As we noted, implementation of separate
projects requires the certain financial resources,
therefore the issue of investment efficiency has a
special importance in the application strategy of the
conception.
The perspectives of smart cities are great, but
the systematic work of all interested parties is
requested for their designing and efficient activity
in future.
References:
[1] Order No 2469 dated 2 February 2021 of the
President of the Republic of Azerbaijan on
Azerbaijan 2030: National Priorities for
Socio-Economic Development”,
https://president.az/az/articles/view/50474
[2] The World's Cities in 2018.(2018)T his data
booklet highlights current and future
trajectories of populations in cities around the
globe, drawing on the population estimates
and projections published in World
Urbanization Prospects: The 2018 Revision.,
https://population.un.org/wup/Publications/
[3] Valiyev A., (2021) Building of smart
cities/villages in Azerbaijan: difficulties and
opportunities,
https://bakuresearchinstitute.org/az/building-
smart-cities-and-villages-in-azerbaijan-
challenges-and-opportunities/
[4] Smart Cities, (2022),
https://www.tadviser.ru/index.php/%d0%a1%
d1%82%d0%b0%d1%82%d1%8c%d1%8f:%
d0%a3%d0%bc%d0%bd%d1%8b%d0%b5_%
d0%b3%d0%be%d1%80%d0%be%d0%b4%d
0%b0_(Smart_cities)#
[5] Smart City Observatory.
https://www.imd.org/smart-city-
observatory/home/
[6] EU Rural Review No. 26, Smart villages
revitalizing rural services, EU action for smart
villages(2018)
[7] www.blogs.worldbank.org/eastasiapacific/e-
commerce-poverty-alleviation-rural-china-gras
sroots-development-public-private-
partnerships 2
[8] Mckinsey Center For Government: Smart city
solutions: What drives citizen adoption around
the globe?, McKinsey Global Institute (2018),
https://trends.rbc.ru/trends/sharing/5fc625769a
79471899ba9ad2
[9] World Bank. (2021). Smart Villages in
Azerbaijan: A Framework for Analysis and
Roadmap. © World Bank., 66 p.
[10] Main development trends and prospects of the
Smart City market, Analytical Report, J'son &
Partners Consulting, 2020
[11] Ismagilova, E., Hughes, L., Dwivedi, Y. K., &
Raman, K. R. (2019). Smart cities: Advances
in research An information systems
perspective. International Journal of
Information Management, 47, 88-100. doi:
10.1016/j. ijinfomgt.2019.01.004
[12] Jan, M. A., Zhang, W., Usman, M., Tan, Z.,
Khan, F., & Luo, E. (2019). Smart Edge: An
end-to end encryption framework for an edge-
enabled smart city application. Journal of
Network and Computer Applications, 137, 1-
10. doi: 10.1016/j. jnca.2019.02.023
[13] Jarocka, M., & Wang, H. (2018). Definition
and classification criteria of logistics services
for the elderly. Engineering Management in
Production and Services, 10(4), 65-75. doi:
10.2478/emj-2018-0023
[14] Jayantha, W. M., Qian, Q. K., & Yi, C. O.
(2018). Applicability of ‘Aging in place’ in
redeveloped public rental housing estates in
Hong Kong. Cities, 83, 140-151. doi:
10.1016/j.cities.2018.06.016
[15] Ji, W., Xu, J., Qiao, H., Zhou, M., & Liang, B.
(2019). Visual IoT: Enabling internet of things
visualization in smart cities. IEEE Network,
33(2), 102-110. doi:
10.1109/MNET.2019.1800258
[16] Xie, Y., Gupta, J., Li, Y., & Shekhar, S.
(2019). Transforming smart cities with spatial
computing. IEEE International Smart Cities
Conference, ISC2 2018. doi: 10.1109/
ISC2.2018.8656800
[17] Yang, Z., & Zhu, M. (2019). A dynamic
prediction model of real-time link travel time
based on traffic big data, Proceeding - 2019
International Conference on Intelligent
Transportation, Big Data and Smart City,
ICITBS2019, 330-333.
doi: 10.1109/ICITBS.2019.00087
[18] Huseynova A.D., Mazanova O. (2020),
Expansion Of E-Services In Azerbaijan:
Directions And Perspectives, 55th
International Scientific Conference on
Economic and Social Development Baku,
18-19 June, 2020, p.115-116
Creative Commons Attribution License 4.0
(Attribution 4.0 International, CC BY 4.0)
This article is published under the terms of the
Creative Commons Attribution License 4.0
https://creativecommons.org/licenses/by/4.0/deed.e
n_US
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2022.19.125
Arzu Huseynova, Ophelya Mazanova ,
Pikakhanum Khudiyeva, Hicran Muradova,
Haciyeva Leyla, Najafova Kamala
E-ISSN: 2224-2899
1402
Volume 19, 2022