OFFICIAL NEWS
INTRODUCTORY SPEECH OF PRESIDENT ILHAM ALIYEV
The President, in particular, said:
“Today we shall discuss results of 9 months. And speak on the done works, as well as exchange views on the future tasks. We regularly conduct this meeting. Meeting of the Cabinet of Ministers are carried out four times a year to quarterly discuss the reached successes, and the major - the future prospects. As a whole, economic growth in Azerbaijan continues in high rates. For 9 months of this year, both economic growth, and growth of industrial production have made 27 percent. Inflation causing our concern is at a level of 16 percent, and food stuffs have risen in price approximately for 15 percent. Certainly, it very much disturbs us, and we shall try to lower the rate of inflation as much as possible.But as you know, the inflation is caused by numerous reasons: rise of oil prices in the world, and also the rise in price of the goods imported to Azerbaijan. If to pay attention to the CIS countries, it is possible to be convinced of that, as there inflation continues in high rates. For the last some months, food stuffs in some countries have risen in price even for 40-50 percent. Certainly, it does not mean, that we also should reconcile with such position. But these objective reasons exist and, certainly, render negative influence on the rise in prices in the country. Simultaneously, there are subjective reasons which it is necessary to eliminate, in particular, monopolism, unhealthy competition and, as a result of this, rise in price.
But in parallel with inflation, we have also to know that the money incomes of population have increased by 40 percent, more precisely, it makes 38 percent. Thus, growth of real incomes of people in this period makes 22 percent. This is a notable indication. And, of course, this is a token of rise of welfare of the Azerbaijani people. This shows that the conducted economic reforms yield results. Living standard in Azerbaijan goes up, and poverty reduces, and this creates remarkable conditions for all-round development of the country. During this period, the country’s currency reserve also raised. Now Azerbaijan’s currency reserves total 6,3 billion dollars, approximately. It is a great amount and enables to carry out the economic reforms more efficiently. And prevents of damage the possible world economic crisis can exert on Azerbaijan. We are witnesses that numerous crises happened in other countries’ finance markets have no influence on Azerbaijan. It has different reasons, including our strong budget resources.
We also know that in the coming years, these resources will grow. As a result of successful performance of Heydar Aliyev`s oil strategy in Azerbaijan, in the coming years we expect much more currency flow and of course, this is an important factor to strengthen our economy, and our country, as a whole. As a result of works done in these years, the analyses and economic reforms have raised our material opportunities.
We already discuss the budget of 2008 and as you know the volume of budget rises year by year. The budget expenses of 2008 will make 10 billion dollars. This is a great achievement, a great figure. Imagine, that in 2003, our state budget totaled 1,5 billion dollars, while now the budget has increased by 10 times. Probably, you cannot find such country in world that its budget raised by 10 times in 4 years. This, perhaps, is a result of successful oil strategy, and a result of deepening economic reforms and financial discipline. In whole, it is a sign of economic development.
In Azerbaijan, macroeconomic indices are at high level and have no analogue in world. Simultaneously, the budget expenses also notably rise. This enables to implement any economic project in Azerbaijan. We do this. Now we do not depend on the foreign finance structures. Perhaps, we will further benefit of the international financial structures, as it gives us extra chances. But, even if to refuse foreign credits, Azerbaijan will not suffer from this, anyhow.
The volume of investments in following year only in the frame of the state budget, exceeds 3 billion dollars. We, can successfully realize any industrial, economic, infrastructure project. For the present, the country needs much, it is necessary to make much. All infrastructures should be updated and brought to the advanced level. In Azerbaijan, all social questions should find their solution. In spite of the fact that last years in social sphere greater work have been done, nevertheless, we should pay attention to social questions constantly. The budget of 2008 also is the budget both of social and investment orientation.
The important steps are undertaken also to solve social questions. I can tell, that the monthly average wages already are in Azerbaijan at the level of 230 dollars. It is high enough parameter on the CIS space. The average pension is at the level of almost 70 dollars. However, it cannot satisfy us. However, positive dynamics testifies that we shall raise every year volume of pensions and that the level of pensions is high enough. If to consider statistics of other countries which are being on the CIS space, it is possible to be convinced that the average pension in these countries makes approximately 15,16, 20 percent of average wages. In Azerbaijan, the given parameter is close to 30 percent, and may be more. That is, it it testifies that social questions in Azerbaijan constantly are in the center of attention. Being guided by it in the further activity, we shall actively work above the solution of social problems.
Today, already 294 thousand people get address social allowances. Each family monthly get address social assistance at the rate of 80 AZN, about 100 dollars. It is, on the one hand, our support, the help to people, and on another, - the approval of social justice rules in a society. For the present, in Azerbaijan there are people living in conditions of poverty. However, this figure every year decreases. I am convinced, that on results of 2008 it will go down even more. But currently, there are such people, and the state should help them, in particular, if to consider, that today our economic opportunities allow it. There was time when extreme limitation of financial resources of Azerbaijan did not allow to carry out the address social program. Today we have such means and rationally using them, we shall do the utmost for increase of standard of living of our compatriots living in heavy conditions. Thus, solution of the social questions in Azerbaijan will be priority also in the coming years, infrastructure, various industrial projects simultaneously should be carried out.
The things are well going in regions, too. The program of regional development is successfully carried out. Here, we have been for four years engaged in realization of the program. For this period, in regions of Azerbaijan greater work has been done. The class of businessmen becomes stronger, new factories, plants are open, infrastructure projects are carried out, power stations are built, and laid water and gas mains, that is, are solved all the questions providing the life of people.
As a result of economic reforms, performance of regional programs, in the last four years, 610 thousands of work places have been opened in Azerbaijan, of this, 430 thousands are permanent. Thus, the promises given in 2003 today have become reality. I am confident that as a result of done works and the granted credits, we have crated a fine business environment, so that in the coming year the number of the new workplaces will increase and the problem of unemployment will be solved.
The state programs are implemented in numerous fields. These programs cove all spheres of our life - in the field of education, these programs include construction of 1200 schools and the reforms carried out in higher educational institutions, construction of public health structures, improvement of health care, creation and restoration of now scientific research centers.
In the field of sports - construction of 13 sports complex and continuation of 18 others. In future, many sports complexes will be built in the country. In the field of culture - the historical monuments are restored, and great reconstruction works are carried out in museums, theaters. The historical monuments are restored.
Ecological programs are being implemented and I am hopeful that in Azerbaijan, especially, in the Absheron Peninsula the ecological problems will find resolution. We shall purify the oil-polluted territories and create nice conditions. As protection of environment should be priority of each country, especially in the countries with unfit ecological conditions. We are able to do this. We already have allotted enough means both from the state budget and the President Fund. Both purification activities and lying drinkable water pipes, especially, in hundreds of villages with heavy ecological conditions, are also being solved.
It can be spoken much about all these. As there is no any field in Azerbaijan without economic development, without plan of development. We have plans for all spheres and we implement them successfully. All-round development of Azerbaijan will serve welfare of people in the coming years, strengthen Azerbaijan’s international positions, in a word, the country will enter the number of developed countries. I believe in this and sure, we will achieve this.
Simultaneously, we are seriously engaged in army building, and every year increases our military expenses. Current year, the military expenses have increased at level of one billion dollars. In the next year, they will be increased up to the level of 1,2-1,3 billion dollars, approximately. We do and should do it as Azerbaijan lives in conditions of war, our lands are under occupation, insincere behaviour of the aggressor, the tightening of process of negotiations and creation of artificial obstacles, certainly, compel us to give more attention to army questions. We shall do it, and nobody can reverse us from the this way. It is our sovereign right, and Azerbaijan should be ready to release the lands from occupational forces by any means. For this purpose, the powerful economy and strong army are necessary. We create this strong army, last years the army potential in Azerbaijan has considerably become stronger. We shall continue this policy also in forthcoming years. On the one hand, preparation, a professional level, purchase of new machines, the weapon and ammunition, and on another - creation of local military complex. We work in this direction. In near future, we shall see the first military product of Azerbaijan. Azerbaijan should and will create strong military-industrial complex. In basis of all these successes, certainly, lays our oil strategy begun in the middle of 1990s by great leader Heydar Aliyev. We have done greater work in this direction. Azerbaijan has successfully finished, it is possible to tell, all oil-and-gas operations. We have finished all projects. Projects which provide, and will provide steady development of Azerbaijan, where already function oil pipelines and gas mains. In our deposits, oil and gas are produced and transported. In a word, we will and in the coming years continue our oil strategy.
Of course, in the coming years, before Azerbaijan, may appear new opportunities. Despite the fact, that, we have solved our oil-gas problems at 100 percent, nevertheless, we continue to take part in numerous projects. Today, Azerbaijan becomes a country producing and exporting gas in huge volume. The factor of gas for energy safety in the world, currently, may be, plays more important role than the oil factor. We should be ready for this. According to latest estimations, the reserves of natural gas in Azerbaijan are at level of about 2 trillion cubic meters. This is enough for us at least about 150 years. Of course, we shall provide gas export to other countries, too. More exactly, we already do this. The Azerbaijani gas is exported to markets of Georgia and Turkey, and in future will be delivered to the markets of other countries, too. This, on one hand, opens for us extra economic opportunities, will notably strengthen regional cooperation, and on another, perhaps, will raise political weight of Azerbaijan. We already witness it.
Azerbaijan’s successful foreign policy, our economic, political, energy and transport initiatives are accepted and depending on our will, these initiatives strengthen Azerbaijan much more and transform it to a strong center. I have several times stated this and reiterate, that any project cannot be realized in region without participation of Azerbaijan. This truth shows that Azerbaijan becomes the strongest country of region. If the regional cooperation issues depend on this country, id any other country’s energy safety depends on this country, if the political processes depend on this country, then, of course, this country becomes the leading country of region. That is our real achievements, our results, our policy and activity, strengthening of stability both in country and abroad, perfection of socio-political environment, successful solution of the questions. This is global treatment to the questions.
The major question is to strengthen our country, cement our independence, our positions, and solve the key problem of Azerbaijan - restore territorial integrity of Azerbaijan. All these factors, including strengthening of our military potential serve this goal. All our activity, our efforts should serve this goal. The political and economic reforms, our foreign policy and army building and strengthening of patriotism in Azerbaijan serve just this goal and should do that.
The country, already, for its economic potential, has gone beyond the region. If to take budget expenses per capita, then, Azerbaijan is at one of the leading positions. By the end of this year, in Azerbaijan, GDP will make 3,5 thousand dollars per capita, which is a remarkable indices. Especially, for the CIS space and other regions. We expect, as a result of continuation of economic reforms in 2008, this figure will reach 4,5 thousand dollars. And this is a level close to the highly developed world countries. In the coming years, we shall increase this. Our oil strategy, economic reforms, creation of the new industrial fields, strengthening of economic potential - all these will create necessary chances for us.
Thus, I would stress once again, that all these questions do not concern only the last 9 months, they are results of our reforms carried out last years. But, all these positive tendencies were reality in the last nine months, too. That is, it shows that development of Azerbaijan goes ahead constantly, continually, without any hindrance and delay. No erroneous decision was adopted, and no incorrect step was made. All the steps we made serve strengthening of Azerbaijan. We shall have exchange of views around these questions.