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BAKU: Azeri president's speech at 7 December govt session -full text

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  • BAKU: Azeri president's speech at 7 December govt session -full text

    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
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