Ladies and gentlemen!

Dear fellow countrymen!

I cordially wish you a happy new year!

The year 2008 is ending. It has been very successful for our country in terms of overall progress of Azerbaijan. In 2008, our economy continued to develop at high pace. I can say that over the past four years Azerbaijan has been the world`s number one in economic growth. This is a great achievement enabling us to successfully resolve all economic, infrastructure and social questions. It was not surprising that in 2008, the World Bank named Azerbaijan as a top reformer in the world. It shows that the serious, deliberate economic reforms being implemented in Azerbaijan yield fruits, and Azerbaijan has great international prestige and is held in great respect around the world.

Azerbaijan takes all necessary steps to develop its economy. The government provides support to development of entrepreneurship that will even increase in the years to come. Today, thanks to this support, private sector constitutes 85 percent of Azerbaijan`s economy. It is a great achievement demonstrating that political and economic reforms in Azerbaijan serve overall progress of our country and make it stronger. In the following years, we will continue paying much attention to economic development, and, I am sure, will cope with all outstanding tasks.

The State program of socio-economic development of regions implemented in our country has also been completed successfully. All the goals set forth in the program have been achieved. When adopting the program we were planning to open 600,000 new jobs. It is with a sense of great pride that I can say today that over the past five years, the number of new jobs has reached 750,000 giving a tremendous momentum to development of the regions. Our regions have seen big improvements due to realization of new infrastructure projects and construction of social objects. All this contributes to achieving overall progress in Azerbaijan, in all of its regions.

Big attention has been paid to agrarian sector. We have taken practically all necessary measures to ensure food security, and I hope, in a year or two, we will fully supply ourselves with food products. The reforms being implemented in the agrarian sector, the government support for farmers, privileges and loans provided to them - all are the factors, which ensure our accomplishments.

Along with this, big attention is paid to social policy in Azerbaijan.

Yes, our life is based on the market economy, and this is a pledge of our success. But at the same time, Azerbaijan`s authorities have a strong will to realize all social programs, and we are doing that.

The past five years have seen a boom in construction of social objects in Azerbaijan. Over the period, 1,600 new secondary schools have been built in the country, and this course will be continued in the coming years. New modern, well-equipped medical centers have been built, practically, in all regions of the country, to provide people with high-quality medical services. It also is the result of our social policy.

Implementation of a targeted social assistance program is underway that is of great importance as well. The number of those in poverty in Azerbaijan has reduced from 49 to 16 percent over the past five years, and I am convinced, it will be even less according to the 2008 outcomes. However, as long as there are citizens living in poverty, the government must do everything possible to help them.

That is why the targeted social assistance program will be continued, and I am sure that such social evil as poverty will be completely eliminated in Azerbaijan.

In 2008, minimum wage and pension were increased 50 percent, and this policy will be continued in the following years. We must do all possible for our citizens to live better.

We create conditions for those engaged in business. But the citizens who work at state-funded organizations should also be provided with necessary maintenance, and we will continue to work in this direction.

All necessary actions have been taken in 2008 to resolve social problems and increase employment of refugees and internally displaced persons. In 2003, I promised that not a single tent camp would remain in Azerbaijan. We have achieved it. Today, no tent camp exists in Azerbaijan. Our compatriots, who earlier lived in terrible conditions, today are provided with excellent houses. New villages, roads, schools and medical centers have been built for them. In other word, we took an important step towards elimination of this big social evil. And we will continue this policy in the coming years.

We are making efforts to achieve fair resolution of the Armenia-Azerbaijan, Nagorno-Karabakh problem within territorial integrity of Azerbaijan. In 2008, the UN General Assembly adopted a very important resolution on the situation in the occupied territories of Azerbaijan.

Despite 3 out of 5 permanent members of the UN Security Council - Minsk Group co-chairs - opposed this resolution, it was adopted by an overwhelming majority of votes. On the one hand, it shows the strength of Azerbaijan and its enhancing prestige. On the other hand, it proves that justice must triumph.

The global community supports Azerbaijan, and I have no doubt that resolution of the Armenia-Azerbaijan conflict over Nagorno-Karabakh will be based solely on the principle of territorial integrity of Azerbaijan. There is no other way. The Azerbaijan state and the people of the country will never grant independence to Nagorno-Karabakh. Nagorno-Karabakh has been Azerbaijan`s land from time immemorial, and we will make every effort to “restore” territorial integrity of Azerbaijan. We can use both political, diplomatic and, if necessary, military means. We have the right to do so. The international law guarantees it.

As you know, much work has been done in this area. Necessary actions were taken in 2008 to build the army. Our military spending has reached USD $2 billion and is going to rise in 2009. We are doing this; we must do this because we live under conditions of war, which is not yet over.

The first phase of the war has finished and we have to be ready to liberate our lands from invaders by any means. Military parade staged in 2008 demonstrated our military power to everybody.

Azerbaijan successfully continued its energy policy in 2008. We managed to solve energy security problems, and today, we are working to ensure energy security of other states. It brings us both political and economic benefits, opens up new opportunities for us. Oil and gas pipelines such as Baku-Tbilisi-Ceyhan and Baku-Tbilisi-Erzurum are operating successfully. Azerbaijan successfully solved, one might say, all oil and gas problems and achieved diversification of export.

Today, Azerbaijan`s oil and gas serve the country - Azerbaijan already supplies 85% of its domestic gas consumption. It provides us with economic opportunities and increases our political power. The energy summit held in Baku in 2008 is a striking example of this.

The decisions made in Baku will not only strengthen Azerbaijan`s energy policy but also help create a new situation in the region, Europe and the world in general.

We effectively use these opportunities and I have no doubt that Azerbaijan`s successful oil strategy will be continued in the following years.

We are injecting huge funds in the energy sector. In the past five years, Azerbaijan has managed to build six power stations. Restoring and rebuilding some stations have increased our energy power. It was a great success as well. In a word, the state of affairs in this sector is pretty satisfactory. I am sure this successful policy will be continued in the following years.

In 2008, we embarked on construction of the Baku-Tbilisi-Kars railway, which is of great historical significance. After long years of discussions, we managed to start construction of this railway. Today, Azerbaijani companies are actively involved in this project.

Construction of the railway linking Europe and Asia will strengthen even more both economic and geopolitical position of Azerbaijan. Azerbaijan will become an irreplaceable country for transportation. It helps ensure our long-term national interests.

Other important events took place in transport sector. Two airports were put into operation in 2008 in the cities of Lankaran and Zagatala. New tankers are being purchased, motor highways are being built. All these require huge funds. Today, the Azerbaijani state possesses such resources. It is our successful economic policy and economic reforms that created such conditions for us.

Dear friends, today is the World Azerbaijanis Solidarity Day as well. This Day is marked by Azerbaijanis across the world. The Azerbaijan state continues its efforts to make the world Azerbaijanis better organized and strengthen their solidarity. I am glad that in the countries where Azerbaijanis live they carry out their activities within respective organizations. Azerbaijani Diaspora organizations are getting stronger and effectively work to ensure our country`s interests. At the same time, the Azerbaijan government makes every effort to solve the problems of Azerbaijanis living abroad. We will always support them, and Azerbaijanis living in other states may always rely on their homeland.

2008 was the year of Presidential election. The people of Azerbaijan expressed their will in a free and democratic manner. Availing myself of this opportunity, I once again want to express my gratitude to the people of Azerbaijan for the high confidence shown in me. This high confidence and kind attitude makes me even more enthusiastic.

Five years ago, I promised the Azerbaijani people that I would do everything possible for the overall development of the country. I will be working for the sake of welfare of the people of Azerbaijan, for developing Azerbaijan and strengthening our state system. I want to say again that the high confidence shown in me pleases and inspires me. I want to assure the people of Azerbaijan that I will continue to do my best to worthily serve my people.

Dear friends!

Ladies and Gentlemen!

Brothers and Sisters!

Once again, I cordially congratulate you on the World Azerbaijanis Solidarity Day and wish you a Happy New Year. I also wish you good health, happiness and new successes.

######