On 21 November, President of Azerbaijan Ilham Aliyev received at the President Palace professor of economy and finances of the University of Columbia, US, Noble Prize Winner Josef Stiglits.

Greeting the guest, head of the Azerbaijani state said:

“Dear guest, I cordially welcome you.

You have been in Baku for several days. And as I was informed you actively work, hold seminar. Your consultations, recommendations, of course, are extremely significant for us. You are a world known scientist, with Noble Prize in the field of economy. You are likely attracted by Azerbaijan from the economic point of vie.

Economy of our country is intensively developing. Economic reforms, conducted in Azerbaijan last years yield positive results. All the macro-economic indications once again evidence that in Azerbaijan pursued is a successful economic policy. Thanks to the growth in the last 6-7 years of the GDP, including industrial production, as well as on other economic indices, Azerbaijan has been recognized in all the world as a dynamically developing country.

Along with this, we look forward with great optimism. In several years, Azerbaijan, from the standpoint of economy, will become stronger. Significant role here, of course, plays the oil factor. I am aware that subject to discussions were creation of the Oil Fund and its activity, at your meetings you paid attention to this issue. I would say, Azerbaijan undertook in this direction very important steps for more reliable maintenance of the oil revenues. The Oil Fund functions enough transparently which was approved by international finance structures.

In short, Azerbaijan will further play significant role in the region. Sure, our economy will develop more dynamically and enable us to make Azerbaijan an all-round developed country.

Expressing his gratitude for warm reception, Mr. Josef Stiglits said: “Thank You for provided opportunity to meet You.

We had in Azerbaijan an interesting week and we were shown high hospitality. We had many discussions, exchange of views and delivered lectures.

I remember and acknowledge the words You said in the period of Presidential elections. You noted that for citizens of Azerbaijan will be opened hundred thousands of working places. This reminded me the words told by Clinton on the eve of election campaign. I was hid adviser, in those days he promised the Americans to open new working places for 8 million American citizens. In particular, for Azerbaijan, experiencing hard transition period, this is extremely important question, because Your country suffered from unemployment.

You fairly noted that one of the key issues in the focus of our interests, is connected with the Oil Fund, transparency of which concerns not only the contracts and share production. This also concerns revenues of the oil sector, and the expenditures. I am very pleased that in Azerbaijan, all realize significance of the mentioned item and maximum attentively treat it. Such opportunity may be once, and it is necessary, mostly benefiting from it, to develop the other industries.

Another issue we discussed, was connected with the fact that in many countries – I should with great regret underline this – oil resources, essentially, work not for the favor of the peoples, but on the contrary. This is, as you know, a question connected with devaluation of the local currency, we, the economists, call it “the Dutch syndrome”. The main is that it is necessary to correctly pursue tax policy, expressing in word of the economists to carry progressive tax policy, the local resources should be directed to the programs envisioned by government.

Ilham Aliyev: Thank you very much. I completely agree with you. All we, the government, public structures and non-governmental organizations should think over the future of Azerbaijan. All we wish long-term and stable development of our country. Oil reserves sometime run out, they are not eternal. We should think how Azerbaijan would look like after 20-30 or 50 years. Currently, we are seriously combating poverty, is prepared a program on elimination of unemployment, and I am sure that the figures I uttered will be proved.

The oil should also serve the coming generations. Just with this purpose was created the State Oil Fund. The said Fund is a very transparent structure. Besides, Azerbaijan acceded to international transparency initiatives. This is our policy, and I am sure that the obtained oil revenues will be spent very rationally.

Creating the Oil Fund, we also studied experience of other countries, and I am sure, that the chosen model responds modern requirements. You fairly noted that in many oil-extracting countries economic situation has not become pleased. We also study just this negative experience and try not to make in Azerbaijan those mistakes, done in other countries.

Azerbaijan, as an independent state, later than other countries, started to use its natural resources. On the one hand, it had objective reasons, and on the other hand, it is pleased that we, taking into account the events accrued in other countries, shall introduce the leading experience and try to be as far as possible from negative experience.

Addressing the members of government, I said that we should not sharpen attention on the oil factor. The work in the said sphere goes successfully, this sector will bring to Azerbaijan colossal currency reserves. We should pursue our policy as if in Azerbaijan there is no oil. We should develop all the industries of economy – first, the non-oil sector, and infrastructure. Only by this way, we can make Azerbaijan an all-round developed country. I once more say to You: “You are welcome” and wish successes in your works.

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Head of the foreign relations department of President Administration Novruz Mammadov, ambassador of the United States to Azerbaijan Reno Harnish took part at the reception.