Financial services sector, like other economic sectors of Azerbaijan, has been characterized with fast development rate. Banking, insurance and post services hold leading positions among those services. Individuals are one of the major consumers of those services. Thus, more than 3.6 million people already use payment cards and about 500,000 people take consumer credits. Increase of financial literacy and better protection of consumer rights contribute to more efficient access of population to financial services. First of all, current status of financial literacy of population should be studied and problems revealed, to this end.
Increase of financial literacy and better protection of consumer rights became more urgent issues over the last decade. Fast integration of Azerbaijan into the world economy made it necessary to study those issues and implement appropriate measures in the country.
In view of the above mentioned facts, the Central Bank of the Republic of Azerbaijan, World Bank and SECO decided to carry out a financial literacy research of the population. The main objective of that project was to conduct a "Financial Literacy Survey", create a Single Database and prepare a Report reflecting outcomes of the survey.
Kind of Data
Sample survey data [ssd]
Unit of Analysis
Management of household's income and expenditures, mathematic financial literacy of population, the level of awareness and use of financial services, as well as current status of consumer rights have been studied within the survey. Results of the research can be used as a baseline for financial literacy and awareness of the population.
The survey covered Baku (including 11 administrative districts), Ganja, Sumgait, Shirvan, Khirdalan, Sheki, Lankaran, Yevlakh, Nakhchivan, Guba, Gusar, Aghsu, Bilesuvar, Berde, Tovuz, Masalli cities, 2 settlements and 37 villages (see: table 1.1 of the survey report). 54% of survey participants live in urban (Baku- 23%) and 46% in rural areas. This is a similar pattern to the national demographic status.
The survey was carried out among people above 18 years old (18 also included) (except for those not capable of being interviewed) with the latest birthday date within a year.
Producers and sponsors
Azerbaijan Micro-finance Association (AMFA)
Central Bank of the Republic of Azerbaijan
Definition of sampling frame and scale
1200 respondents were defined as a sample frame in 8 economic regions (2 economic regions of the country are under occupation) and Baku city. The main reason for conducting the survey among 1200 respondents is to ensure representativeness and financial feasibility of the project. Urban and rural ratio was set at 54% and 46% in line with statistic indicators. For detailed information see Table 1.1 of the survey report.
Preparation of the survey plan and implementation of survey sampling
Sampling was carried out at 2 stages: i) at the first stage, it was conducted while taking into account distribution of population by capital city, other urban and rural areas and economic regions with preliminary sampling units being street and villages (each preliminary sampling unit includes 15 respondents); ii) At the second stage, streets within the sampled cities and villages within economic regions were randomly selected. For example, according to results of the first stage of the sampling, a survey should be carried out among 45 respondents in Guba region and 15 respondents should be selected in urban areas and 30 respondents in rural areas. In view of the fact that primary sampling unit consists 15 respondents, 1 street within Guba town or its settlements and 2 villages among rural areas should be randomly selected.
Dates of Data Collection
Data Collection Mode
Supervisors controlled quality of interviews. They checked quality and completeness of questionnaires. Moreover, supervisors made control visits (5% of respondents for each supervisor), conducted randomly selected interviews, met with respondents and prepared a relevant check-up report. After the check-up process, supervisors submitted questionnaires to the survey site manager. The survey site manager also made site visits and examined 5% of the interviews. Recruitment of independent monitoring specialist: Quality of interviews was also checked by an independent monitoring specialist. Independent monitoring specialist randomly selected 10% (120) of respondents covering all regions, checked them up through telephone calls and made site visits in case of necessity. Thus, 20% of interviews were checked by supervisors, survey site specialist and independent monitoring specialist through surveys of randomly selected households or telephone calls. Check-up process revealed 21 questionnaires (1,7% of all respondents) with complicated answers. They were abolished and new surveys were conducted. All these measures contributed to the completion of check-up reports and quality of the survey.
Data Collection Notes
* Preparation of instructions for supervisors and interviewers
Instructions for supervisors explain rules on acceptance of questionnaires from site specialists, coordination with interviewers, control over site works, acceptance of questionnaires from interviewers, examination of questionnaires and their distribution to site specialists on the survey. Instructions for interviewers explain rules on accepting questionnaires from supervisors, conducting surveys with respondents, filling in questionnaires, checking questionnaires together with supervisors, distributing questionnaires to supervisors, as well as polite treatment, re-conduct of survey, abolishment or return of spoiled questionnaires, continuation of survey at the next day in case of non-completion of the survey and focal points in case of emergency situations.
* Development of training materials and delivery of trainings for supervisors and interviewers
A survey team consisted of 3 professional supervisors and 12 interviewers was selected and got through training courses. Training was organized for and all rules explained to interviewers a day before. After that, a one-day joint training course was arranged for both supervisors and interviewers. The training covered following subjects: i) review and application of experience on conduct of surveys; ii) discussion of goals and objectives of the survey; iii) presentation of survey methodology; iv) conduct of interviews with respondents, explanation of interview means and reply to relevant questions; v) explanation of instructions for supervisors and interviewers; vi) implementation of pilot surveys within the group or tests among participants (group includes: one participant in the capacity of respondent, one participant in the capacity of interviewer and one participant in the capacity of supervisor and vice-versa). Trainings were hold in Baku city on November 18-19.
* Conducting a pilot survey
Interviewers and supervisors conducted a pilot survey at the end of the training session. Each interviewer and supervisor conducted 1-2 surveys among randomly selected households. About 27 households were surveyed in Baku city. Objectives of preliminary tests were to reveal following facts:
- Questions were listed in a relevant order with sensitive questions coming at the end of the questionnaire;
- Questions are clearly understood by respondents and interviewers;
- Each question covers not multiple, but one issue;
- Questions are relevant for almost all respondents;
- Possibility for giving comprehensive answers to all questions and exceptions for just a number of questions or their shift to other categories;
- No extra efforts are required for giving answers to questions;
- Questions can be answered as accurately as possible.
Results of the pilot survey contributed to the creation of a database and correction of the text of the questionnaire.
* Printing and distribution of questionnaires and other materials
Upon completion of a pilot survey, questionnaires and instructions were printed and distributed to supervisors and interviewers by survey site specialists.
* Conduct of survey and collection of data (field work)
The survey conducted through face-to-face interviews at households (household means dwellers using the same budget and living at the same house) in the period of November 21 and December 10, 2009. The survey was carried out among people above 18 years old (18 also included) (except for those not capable of being interviewed) with the latest birthday date within a year. The aim of using that method was to ensure age and gender ratio balance. All answers were recorded in a standard questionnaire. The survey was conducted in Azerbaijani language. Each interview lasted for about 35 minutes. The interviewer conducted surveys at every house out of three. In case, a household member with the latest birthday date within a year was not at home or rejected to the survey, the interviewer surveyed the next house. If it was impossible to conduct a survey among 15 respondents in the selected street or village, the interviewer continued a survey in the nearest street or village, accordingly. It should be noted that such kind of cases happened very rarely. Abstinence cases amounted to 19%. 21 questionnaires (1,7% of all respondents) with complicated answers were abolished and new survey was conducted.
The questionnaire was prepared based on the analogical questionnaire used in Russia and submitted by the Central Bank. The questionnaire was translated into Azerbaijani language, questions were adjusted to the country context, irrelevant questions were removed and new ones introduced. Meetings were arranged with representatives of the Central Bank and other relevant organizations, as well as their comments were discussed through e-mail during the preparation period of the questionnaire. The final version of the questionnaire was consisted of 65 questions and mainly covered such issues as registration of household's income and expenditures, financial awareness, financial literacy on basic calculations, violation of consumer rights during the use of financial services, access to financials services, payments cards and socio-demographic status of respondents. The questionnaire was prepared in Azerbaijani language and then, translated into English.
Entering and cleaning data, and creation of a Single Database
An operator entered and analyzed data through relevant software (SPSS). All questionnaires were coded during the entering process of data. An database specialist undertook additional control and regulation works to clean data. A Single Database was checked through preliminary analysis after major logic examination.
A Single Database was created at SPSS software based on questions of the questionnaire. Answers given by 1207 respondents were entered into the Single Database.
Special software in SPSS program was prepared for entering and analysis of data. At the same time, instructions for entering of data were prepared, as well as distributed and explained to operators. Instructions that were used as a reference point explain technical issues related to entering of data.
Use of the dataset must be acknowledged using a citation which would include:
- the Identification of the Primary Investigator
- the title of the survey (including country, acronym and year of implementation)
- the survey reference number
- the source and date of download
Disclaimer and copyrights
The user of the data acknowledges that the original collector of the data, the authorized distributor of the data, and the relevant funding agency bear no responsibility for use of the data or for interpretations or inferences based upon such uses.