Ladies and gentlemen,

Distinguished guests,

First of all, I would like to express my deepest gratitude to the whole people of Azerbaijan for the confidence shown in me again and for electing me to the post of President.

Once again I assure the Azerbaijani people that I will continue sparing no efforts towards ensuring overall development of Azerbaijan.

I also thank the New Azerbaijan Party which nominated me as its candidate, and the party`s activists who were actively involved in the election campaign.

I express my gratitude to all political powers, including opposition representatives for supporting me in these elections.

I believe that these elections and election campaign will contribute to strengthening a new political culture in Azerbaijan and bring new traditions to the country, and that political struggle in Azerbaijan will be carried out in civilized ways.

Taking this opportunity, I would like to thank other presidential candidates for sending me greetings on my victory.

Five years ago, during my swearing-in ceremony I promised the Azerbaijani people to exert every effort to ensure overall development of the country.

I promised to continue Heydar Aliyev’s policy as it is the only policy for today, for tomorrow and for the future of Azerbaijan. It is this policy that helped Azerbaijan overcome big problems.

Azerbaijan achieved rapid development under the leadership of the great leader Heydar Aliyev. The country took big steps from chaos, crisis and anarchy towards stability and progress.

It is under his leadership that traditions of statehood were established in Azerbaijan; the country has strengthened its independence and embarked on the path of development.

I reiterate once again that in the next five years I will remain committed to his policy, and will never swerve from this path.

For the last five years large-scale development has been observed in all spheres of life in Azerbaijan. During this period the country has even more strengthened its positions in the region; the process of state building has speeded up, and our independence has been strengthened as well. We have been successfully conducting political and economic reforms in Azerbaijan. The process of democratization is also going on successfully.

In the past five years, Azerbaijan has become a much stronger country looking into the future with big hopes and confidence. Azerbaijan has considerably strengthened its position in the international arena as well. Our regional initiatives bring huge benefits. What we have been doing in the region is a great contribution to both strengthening of Azerbaijan and development of regional cooperation. We have been building our policy on the base of the fundamental principles. The philosophy of Azerbaijanism is our moral foundation. Independent policy, protection of national interests, national dignity, national pride and ethnic and religious tolerance are the basic conditions for our success.

All peoples in Azerbaijan live in an atmosphere of peace and brotherhood. I am very happy that over the past five years, our basic ideological principles have been strengthened and civil solidarity and stability have been fully ensured in Azerbaijan, and that the society, in general, can see clearly in what direction Azerbaijan is going.

Our policy is open and clear. Again, I want to say that one of the fundamental principles of this policy is protection of the national interests of the Azerbaijan state, and that we have managed to greatly succeed in this business.

Our policy, all our political steps have the only goal: to make Azerbaijan stronger, create huge economic potential, deepen political reforms and ensure secure and prosperous life for the people of Azerbaijan.

At the same time, we, of course, have done much to resolve international problems. In the past five years, Azerbaijan has strengthened its position in the region. We are interested in deepening the useful bilateral cooperation with all countries; we have been doing this and this is what our initiatives are aimed at.

Azerbaijan has managed to considerably strengthen its positions in the past five years. Our initiatives both serve strengthening regional cooperation and meet Azerbaijan’s own interests. I am convinced that the countries cooperating with us in the region are satisfied with this partnership. All of our initiatives are aimed at further strengthening peace and stability in the region, intensifying economic cooperation so that all countries of the region live in the condition of peace, stability and friendship.

I can say that over the past five years we have gained more allies around the world. Our relations with a number of countries have elevated to a new level, to a level of strategic partnership. We are interested in continuing friendly relations with all countries. These relations are equitable and meet interests of both sides.

At the same time, we have deepened our cooperation with international organizations. Azerbaijan has been very active within international organizations it is been a member of, that has strengthened our international positions as well. Our efforts promoted strengthening our positions within international organizations and thus adopting decisions meeting our own interests. I do not doubt that our foreign policy will be very flexible, very purposeful in the coming years, that will result in further strengthening of Azerbaijan`s international positions.

Of course, resolution of the Armenia-Azerbaijan, Nagorno-Karabakh conflict has been a priority of our foreign policy. Unfortunately, we have not yet achieved any results in this area. However, Azerbaijan`s position, views in the negotiations and the basic principles we put forward have become a great value in the process of negotiations. Today, I can say that the talks are being held on the base of territorial integrity of Azerbaijan. There is no, and cannot be doubt about this. I consider the steps we have taken promoted both strengthening our position in the process of negotiations and intensification of efforts by the sides dealing with the problem. Today, the world realizes well that successful development of the region requires resolution of frozen conflicts. The resolution must be based only on the international legal norms and principles, and Azerbaijan`s territorial integrity must be restored. Territorial integrity of Azerbaijan has never been and will never be a topic of negotiations. Independence will be given to Nagorno-Karabakh neither today, nor tomorrow, nor in 10, nor in 50 years. Azerbaijan will never recognize it. Therefore, the conflict must be resolved on the base of the basic principles of the international law.

Armenia continues its aggressive policy against Azerbaijan. As a result of this policy and the policy of ethnic purge, 20 percent of our lands are still under occupation. One million Azerbaijanis suffering from the policy of ethnic cleansing cannot yet return to their lands. It is the biggest injustice and crime. Of course, we are still interested in continuation of talks and our hopes have not yet exhausted. We still believe that the talks can lead to fair resolution of the problem. What the resolution means is clear to everybody and the people of Azerbaijan support this position. I want to reiterate that the state of Azerbaijan will never allow secession of Nagorno-Karabakh, the Azerbaijani land form time immemorial. We will strengthen our independence and restore our territorial integrity.

International legal norms are on our side. The UN Security Council issued four resolutions demanding withdrawal of the Armenian armed forces from Azerbaijan`s lands. In addition, a similar resolution has recently been adopted at the UN General Assembly. Our position is also backed and strengthened by resolutions of other international organizations.

In a word, the international law is on our side, historical justice is on our side. I reiterate once again that Nagorny Karabakh is a historical land of Azerbaijan.

Economic potential is on our side. Political processes taking place in the region strengthen Azerbaijan`s position as we are actively involved in them and, in a number of cases, we put forward our own initiatives.

No economic and regional cooperation is possible in the region without Azerbaijan`s participation. Our position is clear to all. No cooperation is possible with Armenia until our lands are under occupation. I think the opposite side should analyze all this factors and accept the reality, and the reality is that today it is very difficult to be in competition with Azerbaijan, I can say, it is impossible. Our political, economic and army potential as well as the principles of the international justice strengthen our position. I am confident all these factors and our attacking policy will lead to liberation of our lands from occupation.

Five years ago I promised the Azerbaijani people that not a single refugee camp would remain in Azerbaijan in the following five years. And I am greatly pleased that we have managed to achieve this even in four years. A State program adopted in 2004 and aimed at improving the living standards and increasing employment of IDPs has been successfully implemented, with twelve refugee camps eliminated during this period. They were replaced with modern house buildings, schools, and medical centers. Thirty-six new settlements were built and tens of thousands of our fellow countrymen who suffered from the occupation were resettled there. In 2007 some supplements were made to the program, and I am confident they will allow us to considerably improve the living standard of our fellow countrymen.

At the same time, the process of army building in the country has also been going very rapidly. This also was one of the priority issues in my 2003 pre-election campaign. I said that Azerbaijan must have a strong army potential, and promised to spare no efforts to achieve this in case the Azerbaijani people show confidence in me and elect to the post of president. It is with great pride that I say that over last five years Azerbaijan`s army potential has been significantly strengthened.

The level of professional qualification of our army has considerably risen. I met with officers and soldiers in military units, including in the frontline trenches, many times, and witnessed both military proficiency and high martial spirit. The process of army building will continue even more intensively. At the same time, much has been done to strengthen material and technical basis of our army. I want to let you know two figures: while in 2003, Azerbaijan’s military spending was $163 million, in 2008, it has reached $1,850 billion. And it will increase in the years to come. The amount envisaged in the 2009 state budget will be even greater. In this way, by creating a huge military potential, we are approaching the settlement of the Armenia-Azerbaijan, Nagorno-Karabakh conflict. All these factors are playing their role, and the opposite side should realize that Azerbaijan is a powerful nation. We have economic power and political weight. Not a single issue - neither economic nor political nor any other - can be settled without our presence. At the same time, Azerbaijan has a very powerful, modernized and well-organized army. We have managed to do all this with the support of the people of Azerbaijan. I was taking all these steps, in various directions, consulting with my people. During my numerous trips to regions, I had a lot of opportunities to talk to people and see their sentiments. I am very well familiar with the situation in the regions, and can say that all the initiatives and steps taken have been supported by the people of Azerbaijan.

Over the past five years, Azerbaijan has followed the great path of implementing political reforms. I said many times and want to repeat that political system must be improved, and the positive practices existing in the developed democratic countries must be applied in Azerbaijan. It is one of the areas of our cooperation with international organizations. The positive experience, which are advantageous and acceptable for us and not alien to the people of Azerbaijan, must be adopted.

This is the way, in which the country is being modernized. Modernization is not just measured by infrastructure projects or economic progress. Our political system must be modernized and improved too. I am very glad that good conditions for development of democracy and implementation of political reforms have been created in the past five years in Azerbaijan, and that very important steps have been taken in this direction. The recent presidential election is a vivid evidence of this. I do not doubt that our policy in this direction will be successfully continued ensuring overall development of Azerbaijan.

Political reforms must supplement economic reforms. Both political and economic reforms in Azerbaijan are going on concurrently and I think it is the main reason of our success. We are implementing our political reforms on the already formed, very strong economic basis. Without this economic basis, it would be not easy to carry out political reforms. If we look at the best practices of leading democratic countries, we will see that the economies in majority of them are well developed. They are recognized in the world as developed countries. Our objective is that - I have already spoke of it, it may come as a surprise, but I am certain - Azerbaijan ranks among developed countries in the future. We have all capabilities to achieve this: gifted people, clear and transparent policy, political reforms, economic power, natural resources, our geographical position. I am sure that the policy pursued so far will give us this opportunity.

We must work not being satisfied with what we have achieved. Although these accomplishments are very important, we must look ahead into the future. We must work every day to ensure successful and sustainable development of Azerbaijan so that the people of Azerbaijan live in secure conditions. Everybody - all members of the society, all the people of Azerbaijan - should exert efforts to achieve this. This solidarity exists in Azerbaijan. Our accomplishments are impossible without the support and direct involvement of the people of Azerbaijan. I want to reiterate that the main source of our successes is activity and will of the people of Azerbaijan.

In a word, we will continue political reforms, and our achievements in the past five years now allow us to say that we will not swerve from this path.

As regards the economic reforms I want to reiterate that simultaneous conduct of economic and political reforms has brought us a great success. Since 2003 large-scale economic programs have been implemented in Azerbaijan. And today, there is no sphere in Azerbaijan that is not associated with a special, concrete program. In every direction, we act in accordance with a concrete work schedule; for every direction, there are concrete programs, funding opportunities and very effective mechanism for their implementation.

In short, all conditions have been created for overall development of Azerbaijan.

For the past four years Azerbaijan has been the world`s leader in terms of economic growth rate, that is, the growth of the Gross Domestic Product. This is a great achievement. In all, for five years Azerbaijan`s economy, the Gross Domestic Product in the country, has grown 2.7 times. I can say that this is an unprecedented achievement on the world scale. By the end of 2008 the per capita GDP will be nearly $6,000. This is a good figure, but it will be increased in the future. What gives us pleasure is that the industrial production has also grown, along with the Gross Domestic Product. While in 2003 Azerbaijan`s state budget was 1.2 billion dollars, in 2008 the consolidated budget was 15 billion dollars. The 2009 budget will be increased even more. Azerbaijan`s currency reserves have also increased significantly. In 2003, our currency reserves made up 1.6 billion dollars. According to estimations for this October, the country`s currency reserves are 17 billion dollars. This figure will increase in the future. Over the past five years, 44 billion dollars have been invested in Azerbaijan`s economy, which makes 77 percent of the total amount of investments the country saw during its years of independence. Azerbaijan has become an attractive country for foreign investors. I am greatly pleased that huge investments have been made in Azerbaijan. Of course, larger share here belongs to public investments, while the private sector, local companies also play a very significant role. It is very important as it will contribute to overall development of our country, and to establishment of a strong business class, which has already become a reality. In the years to come Azerbaijan`s overall development will be measured by these factors.

We have made great achievements in developing the non-oil sector. It is with great pride that we note that today we have the diversified economy. We meet our domestic food demand, and at the same time we export our processed products. Most of them got international, European certificates. What it means? It means that Azerbaijan`s economy will not depend only on energy resources, and it does not today. Large-scale construction work in regions, creation of new jobs, and building of new factories are practical results of the work done.

The yearly allocation of huge funds and granting of preferential loans for development of entrepreneurship; the subsidies, the equipment purchased by and other support from the government for development of agrarian sector, and in general, the moral-political and practical support provided by the President to entrepreneurs, has created a turning point in development of non-oil sector. I do not doubt that we will do even more in this direction in the next five years. Some of the work we have done in the past five years will manifest itself in the next years.

In a word, we can be proud of the achievements in economic sector. I am very happy that Azerbaijan fully ensures its economic independence. A supplementary plan of actions to ensure food security is now being prepared. Today, we have achieved 90-95% self-supply of food products. In the next years, we will supply ourselves completely.

I am very glad that our efforts and achievements in economic field are also welcomed and supported by the international financial structures. The 2008 report of the World Bank, a world leading financial structure, is an evidence of this. The report recognizes Azerbaijan as the world’s number one reformer-country.

It is a great appreciation, an appreciation of our efforts and our policy, because these reforms have been implemented in the non-oil sector. These reforms create conditions for development of business, and serve liberalization of the economy in Azerbaijan. This policy, these reforms give the people in Azerbaijan opportunities to live better. That is why we attach so great importance to that assessment.

At the same time, there is transparency in Azerbaijan. It is very important factor for a country producing and exporting oil and gas. I can say that it is transparency that is one of the main directions of our successful oil strategy. Last year, the State Oil Fund of Azerbaijan was awarded by the United Nations for transparency. The people of Azerbaijan know how much the country’s revenue is and what it is spent on. In other words, we will continue this economic policy. All the concrete programs will be implemented. Our five-year experience shows that we have implemented all we had planned to, and sometimes ahead of schedule.

At the same time, in the past five years, great attention has been paid to resolving social problems, because we knew from history that during radical reforms in transition countries living standard of people may worsen. We know from old and new history that radical reforms reduce people’s standard of living. In Azerbaijan, it is just the opposite. Along with implementing economic reforms, we have done much to resolve social problems. In the past five years, minimum pension has risen 4-fold, minimum wage 8-fold and average wage 3.6-fold. Today, the number of people receiving targeted social assistance from the state has reached 600,000. The government provides support to those who need it to improve their living conditions, and will proceed with this course. I am very glad of reducing poverty in Azerbaijan.

Poverty rate in Azerbaijan fell from 49% in 2003 to 16% in 2007. According to the forecast, it will continue go down this year. What it shows? It shows that successful economic development in Azerbaijan, economic reforms and our oil strategy, first of all, serve the improvement of people`s living conditions. It shows that there is no process of stratification in Azerbaijan, which is peculiar to rapidly developing countries. On the contrary, the middle class is being formed in Azerbaijan. New jobs are being created in Azerbaijan, and I think, poverty reduction is a special part in all work done. Our economic growth is very fast, and we have grown into the leading country in the world. I am sure we will keep our lead in the years to come.

We have been implementing large infrastructure projects. Over the past five years, four international airports have been put into operation. Eight electric power stations have been built. Thousands of kilometers of roads have been laid. Provision of gas supply went successfully. While in 2003, only 62% of Azerbaijan was supplied with gas, now the figure is 85%. Water pipelines are being built. All these infrastructure projects make Azerbaijan stronger. However, improvement of people`s living conditions, plight of those living in poverty is not less but even more important for me. Our policy aims to ensure better living standards for the Azerbaijani people, strengthening of Azerbaijan.

I want to say that it is great happiness to see the results of the work done. I remember, I stated in one of my speeches on the eve of the 2003 presidential election that if people of Azerbaijan show confidence in me, then 600,000 jobs would be created in the country in the next five years, and unemployment, a social plague, would be eradicated in Azerbaijan. Now, I am proud to say that 741 thousand jobs have been created in Azerbaijan for the past five years, of which 531 are thousand permanent. These jobs serve both improvement of people`s welfare and boosting ongoing processes in the region. In some cases, some forces who are not well aware of the situation or want to cast shadow over our accomplishments, attribute our economic growth to the oil factor only. It is true, oil production increased in Azerbaijan and its share in the GDP is big. Every country has its foothold for development. For us, it is our natural resources. Just take a look at economic showings of our regions: economic growth doubled in the majority of regions over the past years. In some regions, GDP has grown 2.5 times, 2.7 times, 3 times. There is no oil production in our regions. What is the reason for the growth? The growth occurred due to new jobs, investments, new plants, factories. Today, those who want to work in Azerbaijan can find a job.

Today, we are facing the other problem - illegal migration- in Azerbaijan. The number of workers coming to Azerbaijan from other countries increases day by day. The State Migration Service has been recently set up to deal with this issue. These are today`s realities of Azerbaijan. The path we have followed from 2003 to 2008 manifests itself in all directions.

Today, I can speak about all our accomplishments. If I do, it will take several hours. I just want to let the Azerbaijani people know about major points. Over the past five years, 1600 new schools have been built in Azerbaijan. 1600 schools! Hundreds of schools have been repaired. In total, there are 4500 schools in Azerbaijan. Shabby schools buildings were taken down, and replaced by new ones, which meet modern standards. Computerization of schools with access to the Internet is underway. While five years ago there was one computer per 1000 pupils, now there is one computer per 29 pupils. It is our future. Our young generation must be educated and competent, and patriotic feelings of young generations must be nourished. Training of qualified, professional personnel loving their homeland is a priority issue for us.

I want to mention the work done in the sphere of healthcare. Over the past five years, more than 240 medical centers have been built, and greater part of them meets the highest world standards. World class medical services offered not only in Baku but also in provinces contribute greatly to protection of the Azerbaijani people`s health.

We are successfully solving the problem of drinking water. Installation of special water purification plants, laying of water pipelines will improve the quality of people`s life and their health. We have to pay a particular attention to our gene pool. We must ensure that people of Azerbaijan be healthy, young generation be healthy both physically and morally.

Over the past five years, 14 modern Olympic and sport complexes have been constructed in Azerbaijan. About 20 sport complexes are now under construction. Children have every condition for doing sports in all of the sport complexes, including outdoor and indoor grounds, swimming pools. Here is the future of Azerbaijan. Azerbaijani youth must take advantage of every opportunity.

All-round development of Azerbaijan, successful development is already a reality. I do not doubt that we will reinforce these positive tendencies in the coming five years and lead Azerbaijan to new achievements.

Energy security issue was solved to successfully pursue our domestic and foreign policies. We have fulfilled all tasks we set to ourselves. Azerbaijan has achieved a 100% solution to the energy security problem. You know, it is a topic of huge talks and a matter of concern. The oil strategy started in early 90s in Azerbaijan at the initiative of national leader Heydar Aliyev and successfully pursued today has brought great accomplishments to our country. All tasks planned have been fulfilled while it was not so easy to do this.

Today, the Baku-Tbilisi-Ceyhan oil pipeline is operating at its full capacity. Construction of the pipeline was accomplished during the past five years. Today, the Baku-Tbilisi-Ceyhan is successfully operating too. In the past five years, Azerbaijan transformed from the gas importing to gas exporting country, and today, we not only supply ourselves with gas but also export it to other countries.

As a logical continuation of the Baku-Tbilisi-Ceyhan and Baku-Tbilisi-Erzurum oil and gas pipelines, we started construction of the Baku-Tbilisi-Kars railroad. This project is of historic significance both for us, for our neighbors, for the region and for the whole world. We have launched this project at our own initiative, at the initiatives of and thanks to joint efforts by the participating countries. There was a time when the Baku-Tbilisi-Ceyhan, Baku-Tbilisi-Erzurum and Baku-Tbilisi-Kars projects existed only on the paper. It was just an intention, an idea. Some used to call it a legend. This legend however has already become a reality. Who has done it? We have. We have taken these successful steps thanks to our policy, within regional cooperation and with active participation of neighboring states. These projects will ensure long-term successful and sustainable development of Azerbaijan.

Production of oil and gas in Azerbaijan has substantially increased in the past five years. While, in 2003 oil production was 15.4 million tons, this year it is going to exceed 50 million tons. In 2003, Azerbaijan was producing 5.5 billion cubic meters of gas, while by the end of this year the amount will exceed 20 billion cubic meters. It is a great growth in a short time. We had mobilized all our possibilities - political, economic and technical - to achieve this, and have always pursued a purposeful policy.

We set a goal to ourselves, and have been moving towards it successfully. Today, we have ensured diversity of oil export routes. Azerbaijan has 7 oil and gas pipelines. All of them are under operation, and can be used to export our natural resources in any direction. Our energy policy gave us economic independence, enabled us to succeed in realization of infrastructure project and other improvements. Today’s accomplishments and history have shown us that we - we are certain - will continue to live and succeed as an independent state. Independence is our biggest wealth, biggest value. But to gain independence is much easier job than to preserve and strengthen it. Today, Azerbaijan is an independent country in the full sense of the word. We are persuing independent policy both inside and outside the country. Our policy serves interests of the people of Azerbaijan.

My main task, main objective - I know, every citizen of Azerbaijan - is to defend interests of the Azerbaijani people, make the Azerbaijan state more powerful and strengthen state independence of Azerbaijan.

Dear friends, at the inauguration ceremony today, I once again express gratefulness to my people for the support and confidence shown to me over the past five years.

I want to assure the people of Azerbaijan that I will continue to serve my people and exert every effort for the progress of my motherland, for the flourishing of Azerbaijan.

Long live the people of Azerbaijan!

Long live Azerbaijan!

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