Azeri president’s speech at 7 December government session – full text
Azarbaycan, Baku
12 Dec 04
The year of 2004 was very successful in all spheres, Azerbaijani
President Ilham Aliyev has said in his speech at a government session
summing up the results of the outgoing year. As a result of correct
policy, the country “is already turning into a significant power
centre” and has become “the leading country of the region”, he
added. Praising the establishment of good relations with all
countries, Ilham Aliyev noted that serious steps had been taken to
improve ties with the neighbouring states. Speaking highly about
Azerbaijan’s economic potential, Ilham Aliyev announced an increase in
military spending by “nearly 30 per cent”. He said that no changes
will be made in Azerbaijan’s position on the settlement of the
Nagornyy Karabakh conflict. The following is text of Aliyev’s speech
at the expanded session of the Cabinet of Ministers held on 7 December
2004, published by Azarbaycan newspaper on 8 December; subheadings
have been inserted editorially:
The year of 2004 is coming to an end. In general, it was a successful
year. Today, at an expanded session of the Cabinet of Ministers, we
will sum up the results of this year, examine the events that have
taken place, hear reports about the work done this year and hold an
exchange of views.
Successful foreign policy
In 2004, Azerbaijan was more confident and more successful in all
spheres. In foreign policy, our country’s integration into the
international community was more intensive and the protection of our
national interests was at a high level. We successfully developed
mutual relations with all countries. Especially, I can note that we
took serious steps to develop ties with our neighbours. Our relations
with them have expanded on the basis of bilateral, regional as well as
multilateral cooperation. This is very important to us. Azerbaijan is
already turning into a very significant power centre in the
region. Our positions in the region are strengthening. Regional
projects are being implemented which will help more rapidly and
successfully develop and protect our national interests.
Azerbaijan has also made success in the work with international
organizations. We can say that our positions in the international
organizations have strengthened. Our activities in the EU, the Council
of Europe and the UN were very successful. I believe that the steps
taken towards a settlement of the Armenian-Azerbaijani Nagornyy
Karabakh conflict has had a positive impact on the negotiations. The
talks are already being held in the format that suit us and
Azerbaijan’s just position is better understood by international
organizations, and as a result, we can say that positive aspects have
been strengthened during the talks.
Azerbaijan has clearly voiced its stance which remains unchanged.
Azerbaijan’s territorial integrity cannot be a subject of the
negotiations: it must be restored and the occupying forces must
withdraw from the occupied territory. Only on the basis of this
principle there can be talk of a peace accord. This is our strict and
unchanged position and it is very pleasant that the world understands
this position and we can say that this is the main principle in the
negotiations.
Some accuse us of taking hostile and attacking position. But this is
natural because our country is a side that has sustained losses in
this conflict and at the present time, if one can put it, we are
waging a “cold war”. I can say that we are waging this war very
efficiently. We are doing our best to put pressure on Armenia in all
directions. We have increased our propagating activities in the
international organizations and in the bilateral format at peace talks
with Armenia . All this, I think, will allow us to achieve our
goal. That is to say, the international law should be observed, the
occupying forces must pull out from our land and Azerbaijan’s
territorial integrity must be restored. The negotiations are
currently being held between the foreign ministers. If necessary, the
presidents will join the negotiations as well. I would like to note
again that the principles of the negotiations have remained
unchanged. I believe that we will continue strengthening our efforts
in the future as well.
As you know, we have also done tremendous work to open Azerbaijan’s
embassies in other countries. New embassies have opened in many
countries and more detailed information about Azerbaijan will be
released to the attention of the international community. At the same
time, we should always strengthen our economic and military
potential. Work is under way in this sphere as well.
Military spending will increase by nearly 30 per cent
In 2004, we also carried out a major work to develop our army and
strengthen its infrastructure. Our army is being modernized and
equipped with new modern technology. We are focusing our attention on
this, and my numerous visits to military units and meetings there
prove that our army is strengthening day by day and is able to resolve
all its tasks. We are determined to continue our efforts in this
field.
As you know, while making additions to the state budget this year,
above all, we increased the funds allocated to the army. Next year, we
will increase the funds allocated to the army nearly by 30 per
cent. If necessary, over the next years, we will increase it by 50,
100 or 200 per cent. Azerbaijan’s economic potential will allow this
and no-one, in particular, Armenia, which occupied our land, can
compete with us. Armenia’s current budget is only 500m dollars,
whereas the amount of the sum planned for the army in Azerbaijan is
about 250m dollars. Until we liberate our land from the invaders, we
will increase our funds and will always continue keeping our army at
the high level.
No dependence on foreign countries
Economic and financial potential is obviously needed to do all this,
and we are building it. We all know very well that the economic
reforms launched by our national leader ex-president Heydar Aliyev
since he came to power in 1993 and which are being carried out
successfully yielded successful results and strengthened our financial
base. The GDP grew by 90 per cent in 1995-2003. Foreign trade
increased by 200 per cent. An average salary grew six times and
pensions 8 times. Thanks to all financial sources, 22bn dollars were
invested in Azerbaijan’s economy. The successful economic reforms have
allowed us both to cover the country’s needs properly and to allocate
larger funds for the army. In general, economic potential is the main
requirement for pursuing an independent policy.
Today Azerbaijan is fully pursuing an independent policy, does not
depend on anybody or any country and is pursuing a policy aimed at the
interests of the Azerbaijani people alone. I am confident that the
policy of strengthening Azerbaijan’s statehood fully meets the
interests of the Azerbaijani people. I would like to add that if we
have not had our economic potential, we might also have begged and
asked other countries and circles for assistance, like Armenia
does. Relying on our own potential and force, our national leader,
Heydar Aliyev, extricated the country from anarchy, crisis and
economic collapse and brought it to today’s path of progress.
Successful domestic policy
These positive factors in the economy have even more strengthened in
2004. The GDP increased by approximately 10 per cent, money income of
the population increased by nearly 20 per cent, the average salary by
26 per cent and today it is 478,000 manats 98 dollars . For the first
time, the average salary in Azerbaijan is already nearly 100
dollars. The next year, this sum will be bigger and will grow in the
future.
Foreign trade increased by 40 per cent and the country’s currency
reserves today stand at 1.8bn dollars. All this shows that 2004 was a
successful year for us. Of course, this success had good reasons. As I
noted before, the strong economic base set up by Heydar Aliyev and the
beneficial economic climate have been created in Azerbaijan for the
future development. We used these opportunities in 2004 effectively
and managed to achieve these economic results.
Structural reforms were carried out and, as is known, new ministries
were set up in 2004. The Communications and Information Technologies
Ministry was set up in the beginning of the year. You know that
information technologies is profoundly important in the world today,
as it has great potential and prospects. Azerbaijan should also keep
up with this process. We should take measures in this sphere as
well. The Agriculture Ministry has been reorganized. I am sure that
this will speed up the development in the sphere of agriculture. The
number of people engaged in agriculture in Azerbaijan is large. The
conditions created for them as well as the establishment of the
Aqrolizinq Agriculture Leasing joint-stock association will help bring
plenty of machinery. About 250bn manats 50m dollars are to be
allocated in the next two years for this purpose and this will allow
us to provide farmers with equipment. This amount is not enough to
fully provide them with equipment, we will not confine ourselves to
the 250bn manats and will increase this sum in order to resolve the
problem with machinery.
I signed a decree on setting up the Ministry of Industry and Energy
yesterday 6 December . This ministry will carry out major tasks as
well. Like in the past, the industrial potential is currently enormous
in Azerbaijan. We have paid less attention to this sphere until
recently, but we must take effective measures and attract investments
to boost our industrial potential. New jobs will open in the
industrial complex as well.
The Azarsu Azerbaijani Water joint-stock association has been set
up. A free-for-all in the water supply system will be eliminated. The
steps taken in this system allow us to say that a strictly-managed
system is going to be created there. Unfortunately, up to now, there
has no been strict discipline there and nobody knew what was going on
there.
Market economy will grow, major projects will be developed
Azerbaijan is faithful to the principles of market economy and we
highly value these principles. Aid to entrepreneurs will definitely be
continued. At numerous meetings with businessmen this year, I have
clearly expressed my support to them. I confirm this support today as
well. The share of the private sector in the GDP is 74 per
cent. According to reports, this figure will be 77 per cent next
year. This figure should grow in the future. However, saying this, we
should also take into account the fact that the oil industry which is
the main sector in Azerbaijan’s economy is in the state monopoly. If
we get the oil factor out of the GDP, we will see that the share of
business, that is the private sector, is even larger.
The sum of the loans allocated to entrepreneurs this year stands at
100bn manats 20m dollars . We will increase this amount twice next
year and businessmen will receive the loans to the tune of 200bn
manats 40m dollars as most of them need these funds. That is to say,
it is impossible to start business without funds. It is true, there
are some people and structures which use their own funds to invest in
business. But the overwhelming majority has no funds and the state
should render its assistance, and it does so.
Over the past 10 months, the figure of investments in fixed assets has
been 43 per cent. Foreign investments grew by 48 per cent and totalled
4bn dollars. The oil sector, which is the most important industry in
Azerbaijan today and in the future, achieved successes this year. All
the projects and programmes started jointly with foreign partners are
being implemented. Heydar Aliyev’s oil strategy is developing
successfully. The launch of the construction of the
Baku-Tbilisi-Ceyhan oil pipeline and the Baku-Tbilisi-Erzurum gas
pipeline proves that we are making progress in this field. Azerbaijan
is successfully and timely implementing the projects which are
important to the world and, above all, to Azerbaijan itself. This will
help increase our economic potential, expand our financial potential
and fully put into operation Azerbaijan’s oil potential.
At the same time, the State Oil Company of the Azerbaijani Republic
SOCAR has its own projects which have already been discussed. I reckon
that work will be done in the next year to implement new projects and
therefore, the SOCAR will be able to increase the extraction of oil
and gas. We are fully satisfied with the work in this
sphere. Azerbaijan has proved that it is a very reliable partner and
is a proper place for foreign investments.
When marking the 10th anniversary of Heydar Aliyev’s oil strategy this
year, we stated that this strategy, this policy and strict line will
be continued. Azerbaijan’s oil potential will serve the Azerbaijani
people and will continue to bring more currency reserves to Azerbaijan
and to its treasury in the future as well.
Regions will develop, new jobs will open, social welfare will improve
The programme for the development of regions has been adopted. It can
be described as a new direction in our work in the economic sphere. It
is true that this field has always been in the focus of the attention,
but the main parameters of this programme were identified this year in
the form of a complex system. Our work in this system was
efficient. There has been liveliness in our regions now: tremendous
work, including renovation and the development, is under way.
New jobs is a very pleasant process and most of them opened in the
regions. All the efforts to open new jobs lead to achievements. Over
the past year, more than 110,000 new jobs, these figures change
quickly, have opened. This process is so rapid that we have to correct
these figures every month. Anyway, according to latest information,
over 110,000 jobs opened, and 110,000 new jobs in one year for 8m
population is a big success. I can even say that this result has never
been registered in the world. This proves that all our plans and
programmes are based on realistic aspects. Simply, one should organize
work correctly, approach tasks with success and confidence in order to
implement all programmes.
Social tasks were carried out properly. Salaries, pensions and other
social allowances were increased and paid timely. A minimum wage
increased as well. At the beginning of the year, it was 45,000 manats
about 10 dollars , later on, it became 60,000 12 dollars and now
100,000 20 dollars . From 1 January it will be 125,000 manats 25
dollars . This shows that the growth is continuing. Of course, 125,000
manats is not a big sum, and we understand this very well. But the
fact is that this figure increased more than twice. The growth of the
minimum salary and, in general, the improvement of the Azerbaijani
people’s well-being is very important to us. I would like to add that
well-being of the Azerbaijani people should improve on a yearly basis.
Our attention to the social sphere will continue in the future as
well. The improvement of conditions has been especially planned for
those in need – refugees and forced migrants. Relevant decrees were
issued in this field and are currently being fulfilled. New towns are
being built on the territory of Agdam District freed from the
occupation, and residents in Barda District who live in the most
difficult conditions – in refugee camps and wagons – will move to new
houses. All conditions will be created for them. We are already well
experienced in this field. On the instruction of our people’s national
leader, Heydar Aliyev, the first revenues of the State Oil Fund will
go to creating conditions for refugees and displaced persons. Like in
all other spheres, we are continuing this policy in this field as
well.
There is a comprehensive plan of activities for 2005. The state budget
for 2005 has already been adopted and everyone is aware of our
work. Economic forecasts have also been made and they are quite
optimistic. According to the forecasts, the growth of the GDP will be
14 per cent. The growth of budget revenues will be 25 per cent and of
the average salary 22 per cent. Imports will grow by 70 per cent and
foreign trade by 53 per cent. Investments, including foreign
investments, will total 4.5bn dollars. All this is a forecast. But we
already know that we can fulfil them exceeding all expectations. I
hope that this forecast will be put into practice and we will make
bigger success.
In order to implement all this, we should organize our work
effectively. Of course, we have certain problems in the country. We
are continuing work to reduce poverty and unemployment. Our society is
concerned about other problems either. We are aware of them and are
trying to resolve them.
Of course, tremendous work was done in one year and in five years. But
if we go back 10 years ago, we can clearly see in what state
Azerbaijan was at that time and how things are now. Azerbaijan was the
most undeveloped country in the region and in the post-Soviet
area. Its economy was in collapse, the territory was occupied and
civil confrontation was under way inside the country. We can say that
Azerbaijan was being destroyed from both outside and inside the
country. Today Azerbaijan is the leading country of the region. It is
not only us who say this, but all international financial bodies and
the international community have stated this. Azerbaijan has turned
into a powerful centre in the region and can be an example for other
countries.
Political stability must be preserved
In order to strengthen all these positive factors, stability, peace
and order in the country will be of great importance along with other
factors. We have achieved this. Thanks to Heydar Aliyev’s
determination, far-reaching policy and bravery, stability and peace
have been established in the country. Illegal armed groups that were
controlling the country were eliminated. All of them do not exist now
and will never come back. We need stability, peace and order and we
will have them in order to continue our success in the future and to
implement all our plans. No-one in our society doubts this. It is the
duty of those who govern Azerbaijan to maintain this stability. We
should make sure that from now on the Azerbaijani people live in the
conditions of peace and safety and well-being of the people improve
further. Azerbaijan’s positions should strengthen in the world and, in
other words, our motherland will continue to develop and thrive.
I think we will hear reports and hold an exchange of views in this
sitting. I have delivered my general view about the results of
2004. There is probably a need for the more detailed discussion.
I am giving the floor to First Deputy Prime Minister and chairman of
the State Commission for Refugees and Forced Migrants Ali Hasanov.
From: Emil Lazarian | Ararat NewsPress