The closing dinner reception of the World Economic Forum (the Davos forum) has been held in Baku.

The working dinner reception has been joined by President of the Republic of Azerbaijan Ilham Aliyev and his wife Mehriban Aliyeva.

The host of the event, Professor at Leiden University of the Netherlands Victor Halberstadt said that the outcomes of the sessions held earlier in the day would be discussed during the final working dinner.

The founder and executive chairman of the World Economic Forum, Klaus Schwab, expressed his gratitude to the President of Azerbaijan for the excellent organization of the Baku forum. He noted that under the leadership of President Ilham Aliyev Azerbaijan had made tremendous achievements which would be continued in the future. Klaus Schwab extended the appreciation of the forum participants to the people of Azerbaijan for the warm hospitality.

The president of bp for the Azerbaijan, Georgia and Turkey region, Gordon Birrell, said that very significant discussions had been held during the World Economic Forum in Baku. Stressing that bp shares 20 years of partnership with Azerbaijan, Gordon Birrell said that this cooperation was based on effective dialogue and mutual trust. He stressed that thanks to the political stability in the country not a single change had been made to the agreements signed.

The vice-president of the Russian Direct Investment Fund, Peter Sannikov, noted that the working group of which he was a member had held an interesting discussion about what was in the way of major investment projects in the region, ways of addressing these obstacles and other pressing issues.

The Duke of York, Prince Andrew noted the importance of the exchange of views on the enhanced use of advanced technologies, in particular the use of telecommunications and broadband Internet, as well as the promotion of entrepreneurial opportunities.

The chairman of the State Customs Committee of Azerbaijan, Aydin Aliyev, noted that at the center of today’s debate were issues of expansion of the transit traffic in the region, investment in the road infrastructure and logistics, as well as the strengthening of the fight against drug trafficking and smuggling.

President of Azerbaijan Ilham Aliyev also addressed the meeting.

Remarks by President of the Republic of Azerbaijan Ilham Aliyev

- Dear Professor Schwab.

Ladies and gentlemen, dear guests! I want to welcome all of you to our country again. Welcome to Azerbaijan! I would like to express my special thanks to Professor Schwab for the decision to conduct the World Economic Forum in Baku and for the kind words and comments about the development of Azerbaijan.

Today’s panel sessions had very interesting discussions. We have received information that the topics discussed have aroused tremendous interest. I am confident that the results of these discussions will create a better understanding in the business community, among political leaders and representatives of the region. The regions of Central Asia, the Caspian and Black Seas, and the South Caucasus have great potential. We have been able to show only a part of this potential. But I am sure that in the coming years we will pay more attention to these discussions. At the same time, they form the ideas and create an environment for expressing the opinions and expectations, including the issues that are causing concern and at times disappointment. However, the major trend observed in the region is one of integration and cooperation.

All the issues we have raised today are linked to Azerbaijan. When it comes to the energy resources of the Caspian Sea, it is clear that at the present stage in the development of the energy resources of the Caspian region Azerbaijan and bp are at the forefront. This company is our main strategic partner. This partnership has lasted for more than 20 years. This company leads the oil and gas consortium where energy companies from many regions around the world are well represented. There is a favorable investment climate and the necessary legal support. As the head of “bp-Azerbaijan” has mentioned, not a single contract has been revised. In fact, not even a single clause of these contracts has been reconsidered. Because all the contracts are adopted by the parliament and signed into law by a decree of the President. No-one can change them. This creates confidence, predictability and stability.

In the early 1990s, the only way for Azerbaijan to develop and strengthen its independence was through political and economic reform and investment. We are very grateful to our friends and partners who were with us in the most difficult times for our country, made investment in Azerbaijan and showed their confidence in us. Today they keep on supporting our country.

Based on the very positive experience we have gained in the oil and gas industry we can say that, having carried out the changes in Azerbaijan, we have created a non-energy sector. I said a few words about that in the morning.

The support provided for the private sector and entrepreneurs, the encouragement of local and foreign investment are among our top priorities now.

Twenty years ago, when Azerbaijan had just gained independence, the share of the market economy in the GDP was equal to zero. Today this figure constitutes 83 per cent. This is a good result of the reforms in the area of the market economy. In other words, the period of transition from a planned to a market economy has ended. At present, extensive opportunities are opening up in the non-energy sector of Azerbaijan, in the areas of construction, high technology, agriculture, petrochemicals.

To ensure sustainable development of our country there is a state strategy aimed at attracting investment to the areas that are experiencing a need for that. We all know that oil and gas are temporary.
Not only are we preparing for a post-petroleum era even though it is at least 100 years away. We are also using the oil and gas revenues for the development of the non-energy sector, human capital and education. The younger generation is benefiting from that. Today, the young people receiving good education in Azerbaijan and abroad and dealing with important business activity in the country are making a contribution to the sustainable development of Azerbaijan.

Among the issues raised today there was the sphere of transportation. It is also very important. We have a favorable geographical location. But without the infrastructure it does not really matter. Therefore, investments in the transportation infrastructure, in pipelines, roads, ports and airports of the region create a special environment. Thus, Azerbaijan is becoming not only a geographical but also a logistics hub of the region. The railway project initiated by us and the pipeline infrastructure are serving the welfare of our country and our neighbors.

The main idea expressed at the forum today was to promote regional cooperation. We are very interested in the development of regional relations and cooperation because without the regional cooperation we can not achieve anything. Our country does not have access to the open sea, but it has ample reserves of hydrocarbons. If it hadn’t been for pipelines, these reserves would have remained under the water for another century. Without the regional cooperation, the support of our neighbors and our own support it would have been impossible to achieve any success. The same applies to the field of transportation.

This regional cooperation enables us to invest in reform. As a result, our economy is changing and the foundation is laid for sustainable development. This is the most important thing. A market economy, a strong political system, stability, investment, investment in human capital, sustainable development - all this is highly important. Today we are talking a lot about sustainable development. We are talking about change.

I think that Azerbaijan can serve as an example of how this can occur. The results are obvious. Yes, a lot remains to be done in the future. We need to pay even more attention to the reforms, to the development of political institutions, to the legal framework, and the rule of law.

With the support of our friends in the world, of the World Economic Forum which is considered forum number one in the world and brings together politicians, world leaders and the business elite, we can achieve great successes.

I want to once again express my gratitude to Professor Schwab for inviting Azerbaijan to participate in Davos seven years ago, for giving us the opportunity to introduce ourselves and to establish contacts, for creating a special atmosphere of cooperation and for deciding to hold the World Economic Forum in Baku.

Dear friends, thank you very much again. I wish you a pleasant evening.

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The President stressed that political leaders and representatives of the business community held working discussions during the forum. Along with this, President Ilham Aliyev stressed the importance of the forum in terms of informing the participants about the processes under way in Azerbaijan and the production and transportation of the energy resources of the Caspian Sea. Briefly reviewing the history of the independent Azerbaijan, the President said: "In 1993, we turned to friendly states to invest in our country, and thanks to their help Azerbaijan began to capitalize on its oil and gas potential. After that the oil revenues were channeled into the development of the non-oil sector."

President Ilham Aliyev said that while in the first years of independence the share of the private sector in the economy was equal to zero, now it has reached 85 per cent. The head of state spoke about the role in the development of the country of major projects implemented in Azerbaijan thanks to the effective cooperation with bp and other major companies of the world, stressing that the revenues obtained are spent on developing the human capital – youth and education. Significant investment is made in the air, sea and railway transport of the country, which has a favorable geographic location. Noting that, in general, these projects are aimed at the welfare of the peoples of the region, President Ilham Aliyev reiterated that Azerbaijan gives preference to regional ties.

Minister of Foreign Affairs of Mongolia Luvsanvandan Bold pointed to the great importance of the World Economic Forum. Touching upon the issue of economic diversification in his country, he noted that Azerbaijan's experience in this area deserves attention.

Prime Minister of the Republic of Lithuania Algirdas Butkevičius expressed his gratitude to the organizers of the forum and touched upon the relevance of the topics discussed. Noting that he was honored to participate in the forum, the Prime Minister of Lithuania said that Azerbaijan had organized the event excellently.

Having thanked President Ilham Aliyev for the high level of organization of the event and hospitality, Albanian Prime Minister Sali Berisha said that he had great respect for the fact that Azerbaijan had implemented important regional projects in spite of the lack of stability in the region where the country is located. Sali Berisha stressed the important role of Azerbaijan in the global energy security.

A member of the board and executive director of the World Economic Forum, Borge Brende, stressed that very important information about the economy of the region was shared during the forum. Speaking about Azerbaijan’s economic success, Borge Brende said they that it had been achieved thanks to the political leadership of President Ilham Aliyev. He expressed his confidence that the Baku forum would contribute to the economic prosperity of the regions of the South Caucasus and Central Asia.