Opening speech by Ilham Aliyev at the conference on outcomes of the first year of implementation of the “State Program on socio-economic development of districts of the Republic of Azerbaijan in 2014-2018”

- Last year we adopted the third state program on the socioeconomic development of the regions of Azerbaijan. Last year in this hall of the Heydar Aliyev Center we discussed the results of the second state program and also raised the issue of adopting the third program. A year has passed, and today information will be provided on the progress of the work done over the year. In addition, we will talk about the work upcoming this year. Over the course of this year the world has undergone a variety of events and different processes. Tensions run high in the world because there are bloody clashes and wars both in the Middle East and Europe. In other words, the world is still going through a political crisis. A new phase of the financial and economic crisis has set in.

In Azerbaijan, however, all of the work went in a positive direction last year. Azerbaijan is confidently moving forward and has achieved sustainable development. Azerbaijan is an island of stability and a place development in the world, because there is unity between the people and the government in Azerbaijan and all our initiatives are supported by the people. All our steps serve the development of Azerbaijan. The public and political situation in our country is stable, major investments are made in the economy and very important steps are taken to diversify the economy. In other words, Azerbaijan is one of the notable countries not only in the region but also globally, and interest in us is increasing in the world. The numerous meetings I have recently held on the sidelines of the World Economic Forum in Davos and the ideas expressed there are further evidence of this, and the Azerbaijani model of development is receiving good feedback.

So these are our current realities. Despite the growing challenges in the world, the confident and successful development of Azerbaijan will be continued. The Middle East is experiencing a political and military crisis. The situation in Europe is exacerbating. The situation in Ukraine has become even more tense. The oil price has significantly dropped. So these and other factors that have taken place in the past year are, in fact, the factors going in a negative direction. I do not see anything positive in these factors. Despite that, Azerbaijan is developing and the well-being of the population is improving. The regions are developing dynamically. Azerbaijan is implementing giant energy and transport projects.

The adoption of the first program in 2004 was a historic event. I remember saying on the eve of the presidential election in 2003 that if the people showed confidence in me, I would first of all tackle the development of the regions and a program would be adopted. That is what happened. In February 2004, we adopted the first state program on the socioeconomic development of the regions, which was successfully implemented over five years. At the same time, I said that we would create 600,000 jobs. But we actually created more even though we did not have large financial resources at the time, our foreign exchange resources were extremely limited, the economy was not diversified and the oil revenues were still to come. Despite this, as a result of sound policies and with the great support of the people, we successfully completed the first program and adopted the second. Of course, by the time of adoption of the second program Azerbaijan had changed. In 2009 Azerbaijan was already firmly on its feet. We started to receive revenues. Therefore, I said in connection with the implementation of the second program in 2009 that I did not see any problems. This program has also been exceeded.

By 2018 we have to successfully complete the third program as well, even though, I want to say again, the negative developments around us have completely changed the panorama. It is not ruled out that tensions in the region will further increase in the future because there are threats that we have not seen before. It is possible that due to the economic and financial crisis, there may be even tougher tests ahead of us. But we have to be prepared and are prepared for all these challenges. We took all the measures in good time, never made populist statements and never took steps to please anyone abroad. We have only pursued a pragmatic policy, protected the interests of the Azerbaijani people and confidently managed our country. Therefore, I am sure that there should not be any problems with the implementation of the third program either. The implementation of the program should mobilize the entire society, and I am confident that we will achieve that.

Heads of executive authorities of all cities and districts, as well as heads of well-known business entities, are present in this hall today. The implementation of this program will largely depend on your activities. Of course, the government is pursuing its policy. The investment program will be implemented this year and beyond. Our thought-out policies can resolve all problems. We will continue to help entrepreneurs and ensure the implementation of creative, reclamation and infrastructure projects. But representatives of government and business organizations on the ground should work together to ensure that this is done even more rapidly.

If we look at 2004, we can see that over the past 11 years Azerbaijan has been the fastest growing country in the world from economic and social points of view. This is confirmed by all indicators. I would like to mention just a few figures. From 2004 to this day, our gross domestic product has increased 3.4 times. This is a record figure in the world. Industrial production has grown 2.7 times. In 11 years, the country's economy has received $180 billion in investment. Whereas in 2004 our foreign exchange reserves stood at $1.8 billion, today they exceed $50 billion. Look how much we have accumulated despite the fact that our investment programs have been large-scale in recent years. But we have increased our foreign exchange reserves every year. First of all, it gives us a lot of confidence. At the same time, it increases our credit rating. Also, it is a kind of insurance against any major unpleasant events. Our foreign exchange reserves are working today. This is not just an abstract concept. Everyone feels it in their daily lives because the rate of the manat remains stable. Despite the fact that oil prices have dropped, our large foreign exchange reserves and sound macroeconomic policies allow the citizens of Azerbaijan not to feel the crisis.

Over these years we have created 1.36 million jobs, of which 1 million are permanent. This, too, should become an ongoing process. I have repeatedly spoken about that. Population growth requires job-creation to become an ongoing process. As a result of the measures related to reducing unemployment, it has dropped to 5 percent. Poverty is also at the level of 5 percent. Leading credit rating agencies of the world have raised the sovereign rating of Azerbaijan. The Davos World Economic Forum ranks our country 38thin the world in terms of economic competitiveness. These are our key macroeconomic indicators. Inflation is also at a very low level. The value of the manat increases every year.

So by looking at these statistical figures everyone can see the long road we have covered. I can say that no-one has helped us. Even developed countries of the world want to use foreign aid now. Without foreign aid their economy declines and ends up in default. They knock on every door and beg for money. Perhaps they do not feel confident enough these days.

Azerbaijan has achieved this success alone. Sometimes we were subjected to unjustified pressure. Sometimes campaigns were and are conducted against us. Perhaps some circles are not very impressed with the fact that Azerbaijan is an independent country, that everything is fine in Azerbaijan, that Azerbaijan is thriving and growing day by day. This has become an eyesore, so to speak. We know that.

Of course, economic power enables us to speak our word on the political scene without fear of anyone and protect our national interests. We are doing and will continue to do that. Therefore, economic power gives us such opportunities. I remember saying back in 2003 that if we do not achieve economic independence, our political independence will be half-hearted. Today we see the situation in neighboring countries. Look at the impoverished and poor Armenia. Armenia is not even a colony, it is not even worthy of being a servant. Their national dignity has been trampled by the criminal junta, and the latest developments once again confirm this. Look at the helpless situation they are in now – they can’t even put forward legitimate demands. This country has already proved that it can’t exist as an independent state. It can exist as a colony. There are so many peoples that have no independence. If Armenia does not give up its dirty policies, the Armenians will be one of such peoples.

It is economic power that has given us these opportunities, and we are independent today. We do not depend on anyone in economic and political terms. No-one can talk to us in the language of dictate. Some may want to do that, but they never will. We speak our word with restraint and very coolly. We can’t be blamed by anyone. We manage our country with dignity.

Therefore, the economic factor creates these opportunities. At the same time, serious economic reforms should be complemented by a serious social policy. Without that reforms will not receive broad public support. Therefore, we have chosen the social sphere as a priority. We are well aware that the social sphere can only develop when there is a strong economy. Or we could develop the social sphere with foreign loans. We would have been in the same boat with countries in default. We should also note the responsible conduct of leaders. Some countries can’t exist without foreign aid. Their leaders gave a lot of promises before coming to power – we will raise the wages10 times, reduce the retirement age, etc. And people believed and voted for them. They should have kept these promises after coming to power but there were no resources to do that. And what did they do? They borrowed from foreign markets and put themselves in a dependent position. Then there were new debts. They repaid one debt and borrowed another, thus creating a pyramid. Pyramids are created not only by fraudsters. Sometimes they are created by governments. One day this pyramid collapsed and these countries were in a very dire situation. Therefore, political responsibility is also very important.

As to the social sphere, the social reform is underpinned by a strong economy. I would like to mention some figures in this field. Whereas in 2004 the average monthly salary in Azerbaijan was $100, now it is $565. Whereas the average monthly pension was $24, at the present time it is $221. Over the past 11 years Azerbaijan has successfully implemented projects of social infrastructure. We have built or renovated 2,900 schools and 560 health facilities. In the regions alone we have established 41 Olympic and 30 youth centers. This is a testimony of our investment in social services and of the attention we pay to social infrastructure.

Over these years we have always treated our fellow citizens who are in the most difficult situation from a social point of view, the IDPs, with permanent attention and care. Over the past 11 years 84 settlements have been created for the IDPs. A total of 210,000 IDPs have moved into new and beautiful homes and apartments. For this purpose we allocated 2 billion manats or $2.6 billion. It is not easy to resettle 210,000 people in the course of 11 years. These settlements are about the size of a big city. We are doing and will continue to do that. So far we still have IDPs living in dire conditions. This year fairly large funds are earmarked for the solution of their problems both in the state budget and the State Oil Fund.

Over these years we have renovated all our major historical, cultural and religious monuments and built new ones. Theaters and museums – this area is given a lot of attention not only in Baku, but also everywhere, in all our regions. After all, it is our history and culture. We must preserve it for future generations to ensure sustainable and long-term development of Azerbaijan. We must always be attached to our historical roots, and the younger generation should be brought up in this spirit. The process of globalization is under way now, though the word "globalization" tends to be mentioned less frequently of late. But the process is ongoing. Some countries are simply trying under the guise of globalization to expand their sphere of influence, to separate people from their national roots in some way and to break their historical ties. That is the main idea behind that. Of course, some people talking about globalization try to present it as integration or a new model of the world. Perhaps there are some positive aspects about it – I do not want to deny that. But it is also clear that by pursuing this policy they try to gain more space, expand their clout, separate people from their roots, make them forget their ancestors and history and simply turn them into an amorphous and cosmopolitan mass to be able to send them into any direction. Therefore, being brought up in the national spirit is the duty of every young person. And it is the duty of the older generation to continue this tradition and educate young people in the national spirit. Therefore, our historical and religious monuments and our culture are not only architectural monuments. They are also a means of education. This is how Azerbaijan should develop. Today, Azerbaijan is a modern and developing state and society which, however, is closely attached to its roots. This should always be the case. As long as our government is in power, this will be the case. But it should always be the case. It is the basic condition for the independent existence of our country.

A lot of attention has been paid over these years to infrastructure projects, and the work we have done is obvious. Sometimes people tend to forget about this work. It seems to some that things have always been like that. But when old footage is shown on television now, everyone remembers the previous situation. In recent years, the implementation of infrastructure projects was a high priority both in Baku and all our regions because no regional development programs can be implemented without it. How can it be fulfilled? How can an enterprise be created if a given region and district has no electricity or roads!

Therefore, it is first necessary to implement infrastructure projects - I talked about it in 2003. We need power supply and roads. Following this in the order of priority are gasification, water and land reclamation. This is the sequence we operate in. Therefore, we first allocated major funds for the establishment of power plants. Over the past 11 years we have built 23 power plants with a total capacity of 2,400 megawatts. For comparison, I can say that the total energy potential of our country is 6,300 megawatts, and 2,400 megawatts of that have been created over the past 11 years. If we had not done that, a third of the country would be without electricity now. Development would be out of the question and not a single enterprise would have been set up. As for enterprises, we have created 64,000 of them over the past 11 years. Therefore, the supply of electricity was ensured.

Gasification is at the level of 100 per cent in all cities. This is also a historic achievement. This has never been the case. Even in Soviet times there were no gas lines in some areas. Today, all our cities and houses have 100 per cent natural gas. This process is also under way in the villages. Once a quarter I am informed about the progress of gasification in villages. We have done a great job. Gasification in Azerbaijan should be at least at the level of 90-95 per cent. At the end of the program, in 2018, we will achieve this goal.

Over the past 11 years we have laid 10,000 kilometers of roads, built trunk and local roads, 340 bridges and tunnels. The Baku-Tbilisi-Kars railway project, which represents strategic international importance, was initiated by Azerbaijan. Currently its construction is drawing to a close. In the districts we have built six airports, including four international. A new terminal of Heydar Aliyev International Airport has been built. International flights are now operated even from the regions. Some of these airports have been reconstructed, others did not even exist in the past, they have been built. When this work began, some believed that these additional expenses were unnecessary. But look how many people from the southern and north-western regions fly to different countries. They no longer have to come to Baku for that.

Among these infrastructure projects the priority, of course, is on those of drinking water. In recent years this area has been given a lot of attention. All our cities will be provided with drinking water conforming to World Health Organization standards on a round-the-clock basis. In some cities these projects have already been completed. I personally attend ceremonies marking completion of each project, and the information from the field makes me very delighted. This is also a historic event, because domestic sources of water in Azerbaijan are limited. Our main sources are rivers that originate abroad. Therefore, there was a process of rational use of waters from these rivers, the construction of sewage treatment plants and identification of domestic sources. The Oguz-Gabala-Baku water main was built. And it has a symbolic character.

The proceeds from the Baku-Tbilisi-Ceyhan pipeline have been invested in the construction of the water line. This is our policy. It is well known that the money invested in this area will never pay off. In other words, these projects are purely social in nature. Whereas the various activities carried out in connection with power supply and road construction will yield fruit after a long time, the funds invested in the water sector will not pay off. We have invested hundreds of millions and even billions in the water sector. Currently, water supply in Baku is 78 per cent, while in 2004 the figure was 29 per cent. I am talking about round-the-clock water supply of the city. Across the country this figure exceeds 60 per cent, but 11 years ago it was probably at 10-15 per cent.

Quite important among infrastructure projects are land reclamation ones. We have ensured their implementation. We have implemented two ambitious mega-projects –the Shamkirchay and Takhtakorpu water reservoirs, as well as canals and power plants. In the future it will serve Azerbaijan. So these water reservoirs and canals will serve the development of agriculture for decades and centuries. At the same time, these projects are of great importance in addressing water management issues. This project also requires large funds. But we have done it. I want to reiterate that it is necessary to invest in infrastructure and the real sector. At the same time, as I have already noted, it is necessary to collect resources. And this is what we did. On the one hand, we have expanded our resources and, on the other, we have invested. Countries that did not invest in the real sector and infrastructure in good time regret it today. They are beginning to do it today, but it is already too late. Today, when the oil price has dropped, it is not so easy to invest a lot. We had to do everything on time, and we did. Therefore, when we speak about the existence of the Azerbaijani model today, we are not mistaken. Such a model exists and it is of interest to others. I have not mentioned energy projects yet. The Baku-Tbilisi-Ceyhan, the Baku-Tbilisi-Erzurum, "Shah Deniz", TANAP, TAP, the Southern Gas Corridor - these projects are changing the energy map of the region and Europe. Each of them is a unique and historic project. These projects have been implemented in the last nine years. The Baku-Tbilisi-Ceyhan oil pipeline was commissioned in 2006. A corridor was created. This corridor is already functioning. There are new projects. Azerbaijan demonstrates its leadership again. If we had not assumed the leadership role, the Southern Gas Corridor would never have been realized. I personally took part in at least 10 international events related to the Nabucco project. There was nothing more than discussion there. Statements, speeches, adoption of resolutions – that was all. After that, everyone left and the work remained undone. I took part in at least 10 events and every time I said that there must be a leader. How can this project be implemented? What are its main elements? This is not a particularly difficult question. But it was all useless. Then we saw that the project was simply at a standstill. We put forward the initiative again and proposed the TANAP project. We gave it a name and we were the initiators. In 2012 we signed this project with Turkey. After that opportunities were ushered for the Southern Gas Corridor. What would have happened if we hadn’t done that?! It would have remained unchanged. Or let’s look at the Baku-Tbilisi-Kars project. This issue was discussed a decade ago, but did not go any further than discussions. If we had not taken the initiative, made a tangible proposal and provided financial resources, we would still be talking about it today. And ministers would still be holding conferences here and there. We are doing concrete things. Real things are reflected in life. So there is an Azerbaijani model today. After all, we are not engaged in idle talk, we do real things, serve and will continue to serve the people.