PRESIDENT ILHAM ALIYEV HOLDS MEETING WITH CABINET OF MINISTERS TO SUM UP SOCIO-ECONOMIC RESULTS FOR 9 MONTHS OF 2006
AzerTag, Azerbaijan
Oct 22 2006
On October 21, President of Azerbaijan Ilham Aliyev presided over
a meeting with the Cabinet of Ministers to sum up socio-economic
results for 9 months of 2006.
The President opened the meeting with the following remarks:
"Today’s meeting of the Cabinet of Ministers is going to deal with
the results of the socio-economic development for the 9 months of 2006.
In all, 2006 has been very successful for the economy of Azerbaijan.
Our economy keeps growing rapidly. All the predictions have come
true. All of our programs are being implemented successfully, and
I appreciate the work done for 9 months of 2006. It is proved by
statistics: Azerbaijan’s economy has grown 234% over the 9 months.
The fact that last year Azerbaijan’s GDP grew 34% makes me sure this
pace will remain at the same level through this year. Azerbaijan’s
economy has grown 60% over two years. If the pace is the same through
2008 – I hope so – then Azerbaijan’s GDP will double in the next
three years. This index has no analogues in the world. Azerbaijan
now leads the world by this index. Of course, this achievement is a
matter of our pride.
It is gratifying that industrial sector is rapidly developing too.
There has been a 40% growth for 9 months. Our industrial potential is
getting stronger. But the industrial sector, in particular, non-oil
sector, needs harder work to be developed.
Over the past 9 months, some $5 billion have been invested in the
country’s economy. It proves that Azerbaijan remains very attractive
in terms of making investments in its economy. Even though investments
have been made in Azerbaijan – largely in oil and gas sector – for
many years, the country is still very attractive for both foreign
and local investors. We are very pleased with this fact, which proves
that Azerbaijan has a very positive investment environment.
As a result of the implementation of the State Program of
Socio-economic Development of Regions, over 120 thousand workplaces
have been opened for the past 9 months. The total number of new jobs
opened in Azerbaijan from October of 2003 until now is 470 thousand.
This is what has a positive impact on both all-round development of
the country and its people’s living standards.
Our private sector is developing, as well. The private sector’s
share in GDP is 75 percent. It is a very high index proving that
private sector is developing rapidly in Azerbaijan. Entrepreneurship
is developing with both moral and material support rendered from
the government.
Our budget spending is growing. Azerbaijan’s budget is going to
exceed $6 billion next year. It is going to be around $6 billion
300 million. This rapid growth, of course, will enable Azerbaijan
to solve its main economic and social problems. The Azerbaijan’s
budget has grown 4-fold over the past 3 or 4 years. Let us look at
the statistics: which country can represent such rapid growth? I
am sure, none. Of course, there are a variety of reasons for that:
strengthening of financial order; strict government’s control over
all of the economic sectors; our successful investment projects, the
Heydar Aliyev-initiated Azerbaijan oil strategy; inflow of foreign
capital in Azerbaijan; establishment of the principles of market
economy in Azerbaijan; pursuing liberal economic policy and support
of private business.
There are many reasons for that. Among them, socio-political stability
is playing a particular role. I mean that all these factors are
playing a direct role in the economic development of Azerbaijan.
Today, the entire international community sees it, recognizes it, and
confirms that Azerbaijan is a successfully developing country. It is
a country strengthening its economic and political positions in the
world, having high international prestige; it is a reliable partner,
a state open for cooperation, and a leader in the region. At the same
time, it is the country which safeguards and strengthens its adherence
to principle, and pursuing independent policy. It is the country,
which has been building its policy on the base of the interests of
the Azerbaijani people.
As the President, I am proud of Azerbaijan’s turning into a very rich
country with its increasingly enhancing international image.
Economic factor is playing a major role in overall development
of Azerbaijan – it increases our possibilities. With increase in
material possibilities, we carry out our independent policy with
more confidence. Over $3 billion accumulated so far in Azerbaijan –
in both the Oil Fund and the National Bank – give us extra power. They
give us hope that all the tasks we have set ourselves will be solved.
Given that oil sector plays a key role in forming of currency reserves,
and that our large oil projects are now on the initial stage, one can
say that Azerbaijan will receive huge amount of currency to in the
years to come. Management and effective use of this huge sum should
certainly be a focus of attention. The currency reserves amounting
to $3 billion is a high index, which is playing a positive role in
the economic development of Azerbaijan.
This year, or rather, in the third quarter of the year, the
Baku-Tbilisi-Ceyhan oil pipeline began operating. It was a historical
milestone. It is the event having considerable impact on the processes
taking place in both Azerbaijan and the entire region. It is the
triumph of the oil strategy of Azerbaijan, oil strategy of Heydar
Aliyev. In all, it is a factor ensuring for many years, decades and
centuries the existence of Azerbaijan as an independent country;
it is a triumph of the independent policy of Azerbaijan.
This event is of "multi-vector" significance, influence. The people
of Azerbaijan already can see it. The daily bettering situation:
improvement works in cities, laying of new roads, rise in salaries and
pensions, solving social problems, construction of schools, hospitals
and power stations – all this is based on the economic power. We all
are aware and should not forget that it is the oil strategy that gives
us the economic power. It is the major factor, which by itself brings
revenues and creates material values by itself. At the same time, the
oil factor seriously influences the other sectors of economy. Services
sector, tourism sector begin to develop. Infrastructure projects are
being implemented. In other words, it is an axiom, the event having
no analogues in terms of historical importance for Azerbaijan, which
has been living as an independent country over 15 years.
It is expected that the Baku-Tbilisi-Erzurum gas pipeline will start
operating by the end of this year. This project is also very important
as in recent times the "energy security" applies, above all, to the gas
factor. Azerbaijan should use every possibility to provide oneself with
gas. Had not the contract on Shah Deniz field been signed in 1996 –
despite, unfortunately, there were opponents of this contract within
the country too – it is not difficult to image what kind of problems
Azerbaijan would face today.
As you know, prices are constantly on the rise. Europe and CIS
countries are planning to import natural gas mainly from Russia –
there is no other source. Russian gas prices rise rapidly. Whereas 2
years ago 1000 cubic meters cost $50, this year’s price is already
$110. Next year this figure will even higher. Although we are
increasing gas production, it is not yet sufficient. The Shah Deniz
field will be put into operation by the end of this year. Therefore,
these two projects will do strengthen both long-term, sustainable
economic potential of Azerbaijan and its energy security.
Deliberate concrete programs are being implemented already in all
spheres. These programs are being realized successfully, and their
provisions are reflected in the budget. It is nearly three years
since the Program of socio-economic development of regions has been
implemented. We specially analyze this program every year, so there
is no need to analyze it now. I mentioned that implementation of
this program has led to opening of 470 thousand jobs. The regions
are experiencing intensive development.
A special program designed for Baku suburbs was adopted, and is
currently being realized. Under this program, infrastructure is being
renewed here, electricity, gas and water services are being installed,
and new schools and hospitals are being built.
New world-class trunk, inter-city and country roads are being
constructed throughout Azerbaijan. Modern roads are being laid to the
most remote villages. In Baku, new bridges and overpasses, which will
help in road traffic regulation, are under construction. There will be
9 bridges and overpasses, which, I am sure, will improve city services.
Supply of regions with natural gas is going on intensively in
Azerbaijan. After the 13-year break, we have managed to achieve supply
of natural gas to Nakhchivan. It is an important fact. Gas came to the
regions, which had never had it, even in the Soviet times. Very soon,
gas supply to Lerik and Yardymly districts will be ensured. This will
also be a great event of economic, social and political importance.
Gas has never been supplied to these districts. Today, we are realizing
it, even though it needs huge funds. The gas pipeline passes along
the high mountains; there is very complex topography there. We, do
that nevertheless because there is a necessity for doing that. People
living there need it; it is needed to improve their living standard,
and promote overall development of Azerbaijan.
It proves once again that we face no the unsolvable problems. We are
able to solve any problem.
Recently, environmental program has been adopted. I am sure it will be
implemented successfully. The oil polluted areas of Absheron peninsula
and the Baku bay will be completely cleaned up, and other necessary
measured will be undertaken.
As you know, a huge project is being implemented to provide Baku with
drinking water. The water pipe which will be laid in the Oguz-Qabala
region, will entirely provide Baku with high quality drinking water.
The project’s completion is scheduled for 2008.
We are doing a big work to better living conditions for the refugees
and internally displaced persons. Today we’ll be widely informed about
this. Refugee camps are being eliminated, and refugees and internally
displaced persons are being provided with normal conditions. I’ve
already touched upon the subject of energy security.
Also I want to note that power plants, which are under construction,
create favorable conditions for all-round development of the country.
The Astara and Shaki module-type power plants have already been put
into operation. The power plants are being constructed in Khachmaz,
Baku and Nakhchivan. A huge 500 megawatt-power plant is under
construction in Sumqayit.
Together with the European Bank of Reconstruction and Development we
plan to reconstruct the Mingachevir power plant.
It is planned to construct 400 megawatt-"Shimal 2" power plant
in Baku. In other words, we are creating a huge energy potential,
first of all, in order to meet growing demands of Azerbaijan and
its economy. New plants and enterprises are being established,
our population is growing, house-building works are underway –
and all this requires electric power. On the other hand, in future,
Azerbaijan can turn into an electricity exporting country.
We have natural resources, oil, gas and black oil. If power stations
have enough capacity, it will be possible to export electricity in
future. It is more profitable than oil export, and we are moving
towards this. Repair and restoration works are underway in historic
buildings of Baku. It may not directly lead to economic growth, but
we should make our beautiful city more beautiful. I gave instructions
to Baku city administration to clean and illuminate the beautiful
historic buildings, to carry out repair and restoration works in
those buildings which have been in poor state for many years. We
should modernize them in order to make our city more beautiful.
Funds are allocated for these purposes, and I think is very
important. I have set the following task: each new building should
meet highest standards. I have banned construction of ugly buildings
in Baku and all other cities. Each new building should differ in
its architecture, it should be very accurately constructed, and its
exterior should be beautiful. Only in this case construction will be
allowed. We are implementing this program because earlier constructed
ugly buildings spoiled the overall sight of our city. We also pay
great attention to our cultural heritage.
A special program is adopted, and it must be reflected in next year’s
budget. Reconstruction and restoration of museums and theatres must
be carried out at the highest levels. In 2007-2008 all theatres
and museums in Baku should be repaired at the highest levels, and
meet the highest word standards. Sports complexes are constructed in
Azerbaijan for many years. It is planned to construct new complexes
in this and following years. Over 600 schools have been constructed
in Azerbaijan over the last two years. The Minister of Education will
speak of this today. New, modern hospitals are being constructed in
provinces to solve the people’s major health problems. Diagnostic and
medical centers, which meet modern standards, are being constructed
today in all provinces. The first such center was opened in Lankaran,
and I attended its foundation stone-laying ceremony and opening.
Everything has been done accurately there. All the newly constructed
hospitals will have special kidney wards equipped with "artificial
kidney" devices, as many people in Azerbaijan suffer from kidney
diseases.
Imagine, that some people have to travel 300 or 400 kilometers a week
from southern or western regions to Baku and backward.
The people suffer from this disease, but because of lack of such
devices in the provinces, they suffer ten times more.
This requires additional expenses. Such road, of course, has its
negative impact on their state of health. This is why I have given
instructions, and we are doing this work. First of all, modern
complexes are being constructed in each province to be located no
more than 100 or 150 kilometers from sick people’s residence.
Such hospitals will be constructed in each province in future.
Great attention is being paid to military construction. Our military
budget will exceed one million dollars next year. I set this task two
years ago. Our military budget was $150 million then. I foresaw this
figure. May be, it was not worth announcement, but I knew towards
what we were moving. I knew that economic development of our country
and budget growth would let us equal Azerbaijan’s military budget
with the whole budget of Armenia. I’m very pleased than in short
period of time, about over two years and a half, we have reached
this. Our military budget will equal with Armenia’s whole budget,
and will noticeably surpass it in the following years.
It will, of course, play a key and irreplaceable role in finding fair
solution of the Armenia-Azerbaijan conflict over Nagorno-Karabakh. In
other words, we carry out our work in all spheres according to the
programs. And there are so many events, that sometimes we forget abut
what we have done, despite it was done just two or three years ago.
So much has been done, that it will take several hours to enumerate
this. But we should nor forget this, because this is our achievement.
At the same time, we cannot stop.
Our country is facing a number of economic and social problems,
which must be solved. The main thing is that we know how to solve them.
Practice shows that the steps we took have been successful".
Afterwards, Deputy Prime Minister, Chairman of the State Committee for
Refugees and IDPs Ali Hasanov, Minister of Finance Samir Sharifov,
Minister of Economic Development Heydar Babayev and Minister of
Education Misir Mardanov delivered their reports on the work done in
nine months of this year.
The meeting ended with President Ilham Aliyev’s concluding remarks.