President of the Republic of Azerbaijan Ilham Aliyev has chaired a meeting of the Cabinet of Ministers of the Republic of Azerbaijan dedicated to the results of socioeconomic development of Azerbaijan in the first nine months of 2013 and objectives for the future.

The President made opening remarks at the meeting.

Opening speech of President Ilham Aliyev

- Today's meeting of the Cabinet of Ministers will focus on the social and economic results of the first nine months of this year. At the same time, we will talk about the work to be done before the end of the year. I can say that these nine months have been very successful and all the objectives have been met.

The Azerbaijani economy has developed successfully this year, and I am sure that this rapid development will manifest itself in the coming years too. The reforms conducted so far and the results achieved suggest that Azerbaijan’s successful development will be ensured in the future as well. All macroeconomic indicators are at a high level.

Economic growth in the first nine months was 5.4 per cent. I believe that at the present time, especially given the ongoing crisis in the world, this is a fairly high indicator, which allows us the opportunity to successfully implement our investment programs. The most gratifying fact is that our non-oil sector is growing rapidly and this growth has been maintained from the beginning of the year to the present day. In the first nine months of the year our non-oil sector grew by 10.4 per cent. I think that this is the highest rate in the world. This result has also been facilitated by the reforms carried out in Azerbaijan because the dependence of our economy on the oil and gas factor has been reducing every year. Thus, issues of economic diversification are also being resolved.

At the same time, this indicator is evidence that the successful development of the country’s economy will be maintained in the future too because I am sure that the investment made at the current stage, the jobs being created, the new areas ready for development and the new areas of industrial production will ensure high growth rates of the non-oil sector in the coming years. Thus, the Azerbaijani economy will completely eliminate its dependence on the oil and gas factor in the future. At the same time, the development of the non-oil sector is certainly the result of the state policy. I regularly express my thoughts on these issues and emphasize that the main priority in the economic field is the development of the non-oil sector. We have achieved that and the growth of 10.4 per cent is a clear indication of that.

There is an increase in industrial production as well. Growth in agriculture has been at around 5 per cent, and there is a great potential for further growth here too. Inflation is only 2.3 per cent, which is also a great indicator. Incomes of the population have increased by 7.6 per cent. In other words, as was the case in the last 10 years, the growth of population incomes this year has been several times faster than that of inflation. Therefore, there are additional opportunities for improving people’s well-being.

The macroeconomic situation is stable. I can say that Azerbaijan is among top ten countries of the world for this parameter. According to the recent calculations of the Davos World Economic Forum, Azerbaijan is in 39th place in the world in terms of economic competitiveness. It is a historic result and a great victory to be among top 40 countries of the world. It is the result of reforms, judicious policies and our overall success. Of course, this presents Azerbaijan in the world as a rapidly and dynamically developing country and will help us in attracting foreign investment to the non-oil sector of Azerbaijan.

The process of attracting investment is ongoing. In terms of the investment climate, Azerbaijan is a very attractive country in the former Soviet space and in the region. By attracting foreign investment, we managed to get out of a difficult situation at the beginning of the 1990s. Today, foreign investors enjoy even better conditions because the country is developing, the infrastructure is upgraded, our domestic market is expanding and access to foreign markets is created.

This being the case, the issues of attracting investment from abroad will remain a priority in the future even though Azerbaijan is now no longer dependent on foreign investment and our investment portfolio is largely made up of domestic investment. In the first nine months of this year, $17.7 billion was invested in the economy, of which $10.5 billion is domestic and $7.2 billion foreign investment. This is a very high indicator for a country such as Azerbaijan, and if can maintain this rate until the end of the year, it is expected that the country's economy will receive about $25 billion in investment this year – only in a matter of one year! If we consider that about $20 billion was invested last year and another $20 billion in previous years, it is easy to imagine how important these issues are for the economy. The attraction of investment is the result of many years of stability in Azerbaijan. Foreign and domestic investors place their money only in stable countries. The investment made in Azerbaijan is channeled into different areas. Whereas in previous years, in the 1990s, investment was mostly made in the oil and gas sector, now more emphasis is placed on tourism, services, high technology and the creation of industrial parks. Thus, the placement of domestic and foreign investment in Azerbaijan, I am sure, will give a greater impetus to the economy of the country.

Our foreign exchange reserves have grown during the year. This, I believe, is also a very good result, because we have a lot of expenses and our budget spending is increasing every year. I set the goal of increasing our foreign exchange reserves every year, and we have achieved this goal. During the year, our foreign exchange reserves have grown and currently constitute $49.4 billion. This is a very high figure for a country with a population of 9.4 million people. I think that in terms of monetary reserves per capita Azerbaijan is among leading countries of the world, which is the result of a deliberate and consistent policy. We, of course, allocate funds to resolve important issues facing the country. This is the goal of the state investment program, which is increasing year by year, foreign investment and funds allocated for infrastructure projects.

At the same time, we need to make efficient use of our resources and plan our budget so that in Azerbaijan’s foreign exchange reserves could grow steadily. For us, it is a security issue, a matter of economic and political security. At the same time, we need to think about future generations, and we think about them. We need to build and leave behind a strong economy, so that future generations do not experience any problems related to the future development of Azerbaijan. Therefore, the careful and balanced steps in the financial sector and economical use of the resources are strategically important. I want to reiterate that the growth of foreign exchange reserves ensures sustainable development of Azerbaijan. At the same time, our relations with foreign partners rise to a higher level. Today, there is no problem in attracting any amount of foreign financial resources to Azerbaijan. In order to avoid the increase of the foreign debt, we are conducting a very conservative policy in this area. Today, Azerbaijan is in one of the leading places in the world for this indicator too.

Our foreign debt accounts for only 7-8 per cent of the gross domestic product. In some developed countries, it is close to 100 per cent. The countries where it is 70 per cent are considered to be in a good financial situation. In Azerbaijan it is 7-8 per cent. This means that we are laying a strong foundation for the present and future, so that Azerbaijan is never – neither today nor in 10 or 20 years from now – faced with the problem of debt. The debt problem is a very serious problem. The events unfolding in some countries today are the result of this unjustified debt.

Our national debt constitutes only 7-8 per cent. In general, we can fully repay this debt at any time, but some economic and financial issues do not require that. But we can reduce our foreign debt to zero at any time. These are our main economic parameters that ensure the sustainable development of the country’s economy. Of course, all of these economic and macroeconomic figures are an indicator in themselves. But the main thing is that these parameters have an impact on people's daily lives, on the development of our country and on the implementation of infrastructure projects.

Of course, our strong social policy is underpinned by a strong economic policy. We are implementing all our social programs. Salaries and pensions were raised this year. Over the past 10 years salaries and pensions have been raised several times. This year we have also resolved the issue of repayment of the deposits left in the banks from Soviet times.

The Azerbaijani state demonstrated its social engagement and succeeded in repaying these deposits. So the implementation of social programs is constantly in the spotlight.

The establishment of the social infrastructure is also well under way. This year, we have overhauled or rebuilt about 200 schools. All the other social facilities are renovated and modernized. Azerbaijan can serve as an example in the social policy too. I want to say again that this program and these policies are underpinned by powerful economic factors.

We have been able to achieve all our goals associated with the development of the regions. This year we will complete the second program on the development of regions. This program has actually been exceeded. In the first nine months of this year alone about 90,000 jobs have been created. In general, over the last 10 years we have created more than 1,200,000 jobs, which has also led to a reduction of unemployment. According to the latest information, the unemployment rate in Azerbaijan is below 5 per cent. Poverty, which is directly related to unemployment, is also reducing. There are still two months left for the year’s end, but we can already say that the level of poverty in Azerbaijan will be below 6 per cent by the end of the year. So in the last 10 years, we have made progress in this direction and consistently reduced poverty. As I noted in previous years, the social problem of poverty should be completely eliminated in Azerbaijan. The people of Azerbaijan should live better. Of course, social programs are implemented to achieve this goal.

Very serious steps are also taken to improve the business environment. The state allocates concessional loans to entrepreneurs. Loans with great benefits are provided for agricultural development. Infrastructure projects are implemented. The state has assumed tremendous responsibilities related to the activities of large farms. Issues of irrigation and land reclamation – all these steps support and give an impetus to entrepreneurship. A comprehensive solution of economic and social issues, of course, facilitates the development of the national economy. Thus, I am sure that we will be able to maintain this positive trend in the coming years.

A special importance among social issues is attached to the problems of the IDPs. For several years now, we have been providing at least 20,000 displaced people with houses and apartments every year. Beautiful settlements and towns are built, and this process continues. These programs will be continued at the expense of the State Oil Fund in the years to come.

Azerbaijan has a very serious stance and an independent approach to the regional situation and the developments unfolding in the region. We always have an independent position. Our position is based on international law and justice. I can say that thanks to such an approach, the number of our friends in the world is on the increase.

Unfortunately, there has been no progress in the settlement of the Armenian-Azerbaijani Nagorno-Karabakh conflict in recent months. But over these months, as was the case in previous years, we have significantly strengthened Azerbaijan.

Today, the gap between Armenia and Azerbaijan is deepening further. Azerbaijan is a rapidly developing and strong state, while Armenia is becoming weaker and poorer every year. The recent events have shown once again that Armenia is not capable of living at its own expense and is in a dependent position. Even high-ranking Armenian officials recognize that Armenia can’t provide for its own security. This actually means recognition of a collapse. In essence, this is recognition of defeat because if a country which has been trying for 22 years to introduce itself as an independent state admits that it can’t provide for its own security, it can’t exist as an independent state. It simply takes time, and I am sure that the processes taking place in the region, the strengthening Azerbaijan and the completely changed balance of powers will lead us to success and Azerbaijan will restore its territorial integrity. I have no doubt that this will be so. We simply need to continue our policy. Our policy is based on historical justice. At the same time, international law protects our position.

Economically, we are at least 10 times stronger than Armenia. We have gained an edge in the military sphere too. The geopolitical situation and the processes taking place in the region simply call for peace talks for the time being. We hope that these talks will be productive and Armenia, having seriously analyzed everything and understood the real situation, will vacate our lands and the territorial integrity of Azerbaijan will be restored without bloodshed.

However, we also know that international legal norms are often grossly violated and ignored, and that there are double standards. In some cases, UN Security Council resolutions are executed in a matter of a few hours. In our case, however, the resolutions adopted over 20 years ago are not fulfilled and no-one forces Armenia to fulfill them. Here too, we are faced with double standards. This is no longer a secret. It is certainly not a secret for us. I am sure that the people of Azerbaijan are also well aware of these issues and understand that double standards, in some cases a biased attitude towards Azerbaijan and unreasonable kindness towards Armenia are the biggest obstacles to the settlement of the Armenian-Azerbaijani Nagorno-Karabakh conflict. But we will continue our efforts. We have to be even stronger. We must and we will continue to keep Armenia in isolation – diplomatically, politically, economically and in terms of regional initiatives. There is rapid depopulation in Armenia. Every year its population shrinks by 80,000-90,000 people, and if things go on like this, then in five to 10 years there will be less than a million people there and the demographics will decide many issues.

Meanwhile, our demographic situation is very positive. The population is growing. In fact, the population is made up mainly of young people, who are very active. So the resolution of the conflict is inevitable.

Azerbaijan will restore its territorial integrity. The Azerbaijani flag will be raised in Nagorno-Karabakh, Shusha, Khankandi and all other occupied lands. As I mentioned in my earlier speeches, the Azerbaijanis should be able to live not only on the occupied but also on all other historically Azerbaijani lands. This is our sovereign right. Our compatriots were driven out and deported not only from Nagorno-Karabakh, but also from our historical lands of Erivan, Zangezur and Goycha – first in the 1940-1950s and then in the 1980s. This is a huge injustice. We will go back to these lands too. We will definitely go back there. The younger generation should live with this dream and with these thoughts. There will come a time when we will live there. In general, the Azerbaijanis should be able to and will live on all the historically Azerbaijani lands. To do this, we are already conducting our policies.

Therefore, Azerbaijan, which has grown stronger in the developments unfolding in the region, has become an international factor. I do hope that this will send a strong message to the Armenian leaders that the early settlement of the conflict is in everyone’s interest, including themselves.

We have successfully addressed other issues of foreign policy. My numerous contacts throughout the year and meetings with colleagues show once again that the number of Azerbaijan’s friends in the world and countries interested in working with us is growing. Azerbaijan is known worldwide as a reliable partner. The visits of senior state and government officials to Azerbaijan in the last quarter are further evidence of the successful steps Azerbaijan has taken in its foreign policy. There was a successful visit of Prime Minister of Italy to Azerbaijan last quarter. Italy is one of the leading countries of Europe and the world. We have a great relationship. An Italian Prime Minister has paid a visit to Azerbaijan for the first time ever. The results of the visit were very positive. A few days later the President of Russia paid a visit to Azerbaijan. That visit was also very successful. It was very important to the development of Russian-Azerbaijani strategic relations. The agreements reached on all the issues will ensure the successful development of Russian-Azerbaijani relations in the future. I am sure that there will be excellent results both in the political and economic spheres in the future. A few days after that Azerbaijan hosted a summit of Turkic-speaking states. Presidents of Turkey, Kazakhstan and Kyrgyzstan came to Azerbaijan. So all of these visits took place over the course of one week to 10 days. In fact, this is an indicator of the fact we have very close relations built on mutual respect and trust with Europe, with our neighbors and with Turkic states. The fact that these relations will continue to develop is beyond doubt.

I want to say again that Azerbaijan’s relations with all foreign partners are based on mutual respect, noninterference in each other's affairs and mutual interest. I believe that the experience gained in this area in the years of independence could be a model for other countries. We are protecting our national interests and doing so effectively. At the same time, we are open to cooperation with all countries. Our foreign political approach is based on cooperation. We do not interfere in the internal affairs of any country. When we see someone trying to interfere in our internal affairs, we certainly issue a harsh response and do not allow this to happen. The experience of the last 10 years shows that such efforts are futile. Whereas earlier someone thought that it would be possible to exert pressure on Azerbaijan and influence it in addressing certain issues, now most countries, foreign and international agencies realize that it is impossible to talk to us in the language of force because there will be an appropriate response. The most important thing is that Azerbaijan is a completely self-sufficient country. It does not depend on anyone, is not indebted to anyone, goes and will continue to go its own way, the way of independence and development. We build our relations with any country on this basis. I believe that our experience in this field, as I said, can be very interesting for some countries.

For nine months we have conducted a successful policy in other areas as well. Very important events have taken place in the energy sphere. The Trans-Adriatic Pipeline project was launched earlier this year. The implementation of this project will be a historic matter. It will be a historic project. Such opportunities have emerged thanks to the signing of the TANAP project between Turkey and Azerbaijan last year. All the doors have been opened. Today, there are new opportunities for delivering Azerbaijan’s natural resources to Europe and world markets. I believe that the Trans-Adriatic Pipeline, TAP, will be a historic project that will enable Azerbaijan to deliver its resources to world and European markets by safe routes for decades to come.

Gas contracts related to the "Shah Deniz-2" project have also been signed recently. We have already identified our partners and export destinations. We have not deviated from our path and have adhered to our course in the energy policy. We have created a situation where these projects will serve the people of Azerbaijan for at least 100 years. This is where our vision for the future lies. We need to look 30, 50, 100 years ahead, be able to predict Azerbaijan’s development and properly analyze the developments unfolding in the region. We should and we make the right decisions.

Issues related to our energy policy are important not only for our country and the region, but also for the world. A lot depends on the position of Azerbaijan, on the decisions made in Azerbaijan and Baku. This is clear both to us and the organizations collaborating with us on these issues. Under such circumstances, mutual interest and the principle of noninterference in each other's affairs should certainly provide an even greater advantage.

This year we have taken serious steps related to industrialization. I stated my thoughts on these issues earlier too. We have consistently pursued efforts to create a powerful non-oil industrial complex in Azerbaijan. This year we have already implemented a number of significant projects. Therefore, I am sure that the successful industrial development of Azerbaijan will manifest itself in the coming years too. Issues related to job creation and increase of non-oil exports will also be resolved. The Takhtakorpu water reservoir and the Valvalachay-Takhtakorpu and Takhtakorpu-Jeyranbatan water utilities have been commissioned lately. This is a great historic achievement. We have created an artificial lake in the mountains. For comparison, I want to say that it is about twice as big as Lake Jeyranbatan. It will significantly improve irrigation, land reclamation, agricultural development and provision of our population with drinking water. At the same time, a shipyard has been commissioned in Baku. This is also a historic achievement. Although we did have shipyards before, we had never had shipbuilding plants. This plant is based on the latest technologies. It can build all types of vessels, which will reduce the need for purchasing ships abroad. I am not saying that it will be completely eliminated because our needs exceed the capacity of the plant. But most issues will be resolved in Azerbaijan. A few days ago, we laid the foundation of a chemical industry park in Sumgayit. This is also a historic event. An industrial estate will be set up on an environmentally clean area, i.e. an area of 200 hectares that is free of any pollution. Thousands, tens of thousands of jobs will be created. New enterprises – roughly about 40 large enterprises – will be established. Investments worth tens of billions will be made. The products to be manufactured there will also be worth billions. This

is very important for the development of our non-oil industry and the country’s economy.

I have listed only a few projects. There are many such projects. Their implementation shows that we have achieved our goal. These results have been achieved thanks to the industrialization policy pursued over the last 10 years. I am confident that all of these positive trends will be further intensified until the end of the year and in subsequent years, and Azerbaijan’s successful development will be continued.

Closing speech by President Ilham Aliyev

- The figures mentioned at the meeting today are further evidence of a very successful economic development of Azerbaijan. The solution of social issues in our country also serves the well-being of our people. The economic reforms, of course, improve the social situation. And that is the way it should be. What sets us apart is that economic and social issues are addressed together in Azerbaijan.

Our policy is centered on citizens of Azerbaijan. The improved well-being of Azerbaijani citizens requires strong economic fundamentals, and we are creating them. We are developing the country's economy. All our initiatives, the initiatives concerning investments, programs associated with the creation of new industrial estates, pursue one and the same goal: for citizens of Azerbaijan to live better.

I am very glad that tremendous work has been done in this area in recent years. We must do our best to maintain this positive momentum. I believe that we will achieve that. The work done so far suggests that we will successfully continue our development in the future.

With regard to the issues related to the socioeconomic development this year, with less than three months left for the end of the year I am convinced that all our programs will be fulfilled with a surplus. We will successfully complete 2013.

The state investment program must be fully implemented by the end of the year. I am sure that there will not be any problems with that because our investment portfolio is fairly broad. As I said in my opening remarks, in nine months we have made investment in the amount of $17.7 billion. And this process continues. We must make sure that there are no delays in the implementation of the state investment program.

Salaries, pensions and social benefits have been increased this year. The deposits left over from the Soviet era have been fully repaid. Despite this, inflation is at 2.3 per cent. This is a manifestation of a successful macroeconomic policy carried out in Azerbaijan. We must try to keep inflation at this level until the end of the year. Azerbaijan is one of the leading countries of the world in terms of inflation. The success of our thought-out policy in this area is important because we are implementing very large social and infrastructure projects.

The crisis that has engulfed some countries at the present time is leading to job losses. The infrastructure projects have practically been stopped. Investment has significantly reduced. Under such circumstances, it is certainly easier to keep inflation at an acceptable level. But Azerbaijan is also carrying out social programs, implementing projects of social infrastructure, increasing wages, pensions and social benefits. We are investing in large-scale infrastructure. We keep inflation at 2.3 per cent. This is a truly great achievement.

Macroeconomic stability should always be in the spotlight in the coming years. We should not allow for artificial price hikes. I think that control over prices on the consumer market in Azerbaijan is exercised at the best level. This process should be permanent. Of course, control, private enterprise development and responsibility of entrepreneurs are of great importance. By preserving macroeconomic stability we can successfully continue our economic development in the future.

This year we will complete the second program on the development of regions. The adoption of these programs has played a crucial role in improving the situation in the regions. The creation of jobs, the establishment of new enterprises, the implementation of regional infrastructure projects, including the social infrastructure, has contributed to the solution of a number of important issues. Jobs have been created in the districts. The regions have been revived. The trend of migration from the regions into cities, especially Baku, has slightly decreased. Of course, all-round development of our country has been ensured, because the majority of our population lives in regions of Azerbaijan. The creation of normal conditions in the regions remains our priority. The realization of two state programs, I think, has been the most important step in this regard.

Next year we need to adopt the third state program. The program also needs to be precise and specific. It should reflect all relevant issues for every single village. We already know very well what problems there are in a particular region, district and village. Given the fact that our financial and economic power will continue to grow, the solution to these problems will also be possible. The political will, as always, is there. Over the next five years, we have to resolve all of the social and economic issues in the regions. I am confident that we will achieve this.

We are successfully implementing infrastructure projects, water projects. In many districts and cities, drinking water and sanitation projects have already been completed. These projects are implemented in other districts as well. Gasification, power lines, rural roads, irrigation issues – we have actually revitalized the regions. Today, the situation in the regions is very positive.

At the same time, as you know, the state program on the socioeconomic development of suburban settlements of Baku is under way. It is a short-term program covering two years. At the end of this year it is coming to an end. I can say that very much has been done in the suburban settlements of Baku in the course of two years. But there is still much to do.

Next year we will probably continue this program because the construction of schools and drinking water lines must go on.

The fight against corruption and bribery should become even more serious. I can say that we have good results in this area. I would like to reiterate what I said at the opening of a new office building of the Anti-Corruption Department under the Prosecutor-General. There should be no corruption in Azerbaijan. We need to eradicate this social evil. Corruption undermines the principles of social justice and hinders the successful development of society. Thanks to the efforts of society and public policy, we will fight corruption even more seriously. I am confident that Azerbaijan will be among leading countries in the world in this respect in the coming years.

The main condition for a successful fight against corruption is the political will, which is there. I believe that the decisions we have passed, the progress made in terms of the legislation, the adoption of new laws and the development of e-services, and the systemic measures have already contributed to a serious change in this area. The international organizations analyzing the corruption index have studied peoples’ attitude to the issue by conducting surveys in Azerbaijan. And they have found out that government policies on fighting corruption are supported and approved. I am sure that this will be the case in the future too. We have a very strong political will. There is also a very strong trend in society to fight corruption. We have to make sure that Azerbaijan, as I noted, reaches the level of advanced countries in this area.

The development of e-services in Azerbaijan and the world in recent years has been a great help to us, and we are applying the most progressive experience in Azerbaijan. The experience of developed countries is worthy of approval. We need to apply this experience in Azerbaijan. At the same time, we have put forward our own initiatives in this area. The establishment of “ASAN xidmət” centers, which have earned great sympathy in society in a short time, is a manifestation of our political will. At the same time, it shows how ready Azerbaijan is for innovation in this area. In the first nine months of the year more than 500,000 citizens have approached “ASAN xidmət” centers. In the coming years “ASAN xidmət” centers will be set up in every region. In the meantime, we are providing mobile services. But the investment program for the next year should provide for the establishment of at least one “ASAN xidmət” center in each region, so that we could systematically provide services to the regional population as well.

Of course, punitive measures, as in any country, should and do play a role. But I believe that the combination of these factors will help us in the fight against corruption because the successful development of Azerbaijan and the recognition of Azerbaijan in the world as a dynamic, evolving and modern country are a reality. Today, we are the example in many issues. And we need to be an example in the fight against corruption as well.

In the months left until the end of the year, we will take additional measures related to power generation. Today we have sufficient generating capacity. But in some districts transmission lines are in disrepair. When visiting the districts I always enquire about these issues. Sometimes they can’t withstand even a weak wind. As soon as the wind picks up, these lines are cuts off and power supply stops. So we have given the necessary instructions. Before the end of the year and particularly next year, the lines that are in the worst condition need to be updated. Work is now under way. We have sufficient generating capacity. But the power generation industry must also be at a high level. I am confident that this issue will soon be resolved.

I should say that in the last 10 years we have built 14 power plants in Azerbaijan. We are using both traditional sources of energy and, at the same time, alternative ones. The gasification level in Azerbaijan is approaching almost 90 per cent.

Over the past few years we have gasified all our cities. And this, I think, is a historic achievement because some of our districts and towns were not supplied with gas even in Soviet times. There were districts which never had gas supply.

And now there is no city without gas supply. Work on gasification has been organized in most villages. But there are still villages that do not receive gas. I regularly check on these issues. I am sure that most of our villages will be supplied with natural gas within a year or two at the latest.

Oil production has stabilized. This is a positive development. We must maintain oil production at a high level, so that it remains at this level for many years to come. Gas production in Azerbaijan is growing and will continue to grow. New wells are drilled using our own resources. At the same time, foreign partners are making serious investments. As I noted, Azerbaijani gas will play a role in Europe. Issues of European energy security will be addressed, inter alia, by means of the Azerbaijani gas. As a result of the implementation of the TANAP and TAP projects, Azerbaijan will assert itself as a major gas nation in the world.

We are addressing issues of industrialization. In my opening speech I mentioned that the foundation of a chemical industry park has been laid. This is a historic event. But now we have to make sure that this park becomes fully operational in a short time. The companies whose activities are of strategic importance to the national economy should become residents of the chemical industry park. As a result of their operation, our dependence on imports will be reduced. Their investment will be measured by large numbers. Thus, at the first stage we will ensure the operation of an allocated area in a short time and dozens of new enterprises will be established there. Thanks to the activities of this industrial estate and the Sumgayit industrial park set up earlier, we will have a very large industrial potential. As in any other area, we must reduce our dependence on imports in this field and access new markets with our own products. Of course, the products to be manufactured there can be exported to any country.

Before the end of this year and afterwards, we must also increase our foreign investment. Today Azerbaijan is known in the world as an investor country. We act as donors to provide funds to foreign financial institutions. At the same time, we make sure that major funds are invested. Both our investment portfolio and the geography of our investment are expanding. Today, Azerbaijani investments are made in Turkey, Georgia, Russia, Ukraine, France, Great Britain, Romania, Greece and other countries in large volumes. The biggest investment, of course, will be made in Turkey. The Turkish economy will receive $17 billion in Azerbaijani investment, and Azerbaijan will become the biggest investor on this respect. Our investment portfolio should be allocated so that we could protect ourselves from risks to the maximum extent possible. At the same time, our bilateral relations with the countries we invest in must rise to an even higher level.

The world is currently engulfed by the financial and economic crisis even though it has been five years. It is still not known when it will end.

There is a great need for foreign investment in the world. In this area Azerbaijan pursues a very precise, thought-out and wise policy. Of course, first of all we invest and will continue to invest at home, and the state investment program for the next year will be quite broad. We are open to foreign investment aimed at the development of the areas we need, and this investment is being made. We are also investing in foreign countries. In other words, these processes do not substitute for each other, they are not in conflict. This is a manifestation of our economic policy. In the economic sphere, Azerbaijan carries out a very precise and thought-out policy.

Work will also be continued in the transport sector for the rest of the year. Currently, we are implementing two major transport projects. The construction of the Baku-Tbilisi-Kars railway is ongoing. I am hopefully that it will be completed in the near future. For certain reasons it has slowed down a bit. But now all the issues have been resolved and the project should be implemented in the near future. The second major project is the Alat sea port. This port is also scheduled for commissioning in 2015. It will be the largest commercial port in the Caspian Sea. Thus, Azerbaijan, as a transportation hub of the region, will expand its capabilities. Azerbaijan is already a regional logistical and transportation center. Over the past 10 years, seven airports have been built and renovated in Azerbaijan. The construction of a new passenger terminal of the Heydar Aliyev International Airport, a whole new infrastructure and runways is under way in Baku. This airport will be one of the most comfortable and beautiful airports in the world. We are renovating railways and building highways. Around 10,000 kilometers of roads have been built in the past 10 years.

Food security issues are also constantly in the spotlight. It has already been mentioned here that agriculture is developing. Large farms are set up where yield is twice above the average level. We will be engaged in the development of large farms in the coming years too. The commissioning of the Takhtakorpu water reservoir this year and the Shamkir reservoir next year will enable us to improve irrigation and include an additional 250,000 hectares of land in the circulation.

Of course, we already need to have specific proposals on what exactly should be done on the newly irrigated lands which will be included in the turnover. It is clear that farmers themselves decide what they will plant. But by providing government subsidies, state benefits and incentive mechanisms, we can guide farmers into the necessary directions in order to fully provide ourselves with main products. We are approaching this task and this goal. On some foods we have already reached 100 per cent and on others we are very close. Where there is still a dependence on imports, it must be completely eliminated.

In recent years, the demographic situation in Azerbaijan has also been very positive. The fact that we have a good demographic situation is one of the biggest advantages, one the most significant accomplishments. As we continue this positive momentum, Azerbaijan will strengthen further. Over the past 10 years the Azerbaijani economy grew 3.4 times.

No other country in the world has achieved a similar result in the last 10 years. This is our achievement. In the past 10 years, including the current year, investment in the amount of $150 billion has been made. So much investment is made only in stable countries. So much investment is made only in countries whose future is predictable.

Over the past 10 years, our foreign exchange reserves have increased almost 30 times. What does this mean? We are increasing our foreign exchange reserves, we are protecting them. We approach these issues with great sensitivity. This area is absolutely transparent. There is ample opportunity for public oversight in it. The revenues and expenditures of the State Oil Fund are published and discussed when there are transfers into the state budget. Foreign exchange reserves of the Central Bank are no secret either. This information is in the public domain. In other words, we have ensured complete transparency in this area, and I think that this is the way it should be. The citizens of Azerbaijan should be able to know what the financial situation of the country is and how the state and the government protect their resources. I can say that this wealth is protected in Azerbaijan at the highest level. We will continue increasing our foreign exchange reserves in the following years too.

Over the past 10 years our budget expenditure has increased almost 20 times. The budget growth of almost 20 times has allowed us the opportunity to do a great job. Over the past 10 years we have created more than 1,200,000 jobs, including 910,000 permanent jobs. In the end of the day, unemployment is expected to drop to 4.8 per cent by the end of the year. In 10 years poverty was reduced 10 times and is now less than 6 per cent.

Azerbaijan's foreign debt amounts to only 7.8 per cent. In recent years we have increased pensions and salaries several times: pensions almost 10 times and salaries about six times. Defense spending has risen more than 20 times.

In the last 10 years, in fact even in a shorter period of time, Azerbaijan has established a defense industry which had never existed in the country before. Over the last seven to eight years we have created dozens of military enterprises. At present, Azerbaijan produces military products of 750 denominations. The creation of local production means a significant reduction in dependence in this field. Today Azerbaijan can and does export arms.

Over the past 10 years, 2,708 schools and 500 health facilities have been built or renovated, 35 Olympic sports centers have been built, and their total number is approaching 40 now.

Over these years we have made historic achievements in our energy policy. In 2006, we commissioned the Baku-Tbilisi-Ceyhan oil pipeline and in 2007 the Baku-Tbilisi-Erzurum gas pipeline. If it hadn’t been for these pipelines, our economic and political situation could be completely different now. These are the projects that required a strong political will. These projects provide for the present-day and future development of Azerbaijan. We have been able to take the oil and gas resources of the Caspian Sea to the world market for the first time in history. We do not have a direct access to world markets. To obtain such an access, we had to build these pipelines. These pipelines were laid in a very complicated geopolitical situation, due to the hard work and courage, and thanks to the implementation of the great leader’s oil strategy. Over the past 10 years we have made great strides in implementing this strategy.

These projects alone have led to the implementation of new projects. If the Baku-Tbilisi-Ceyhan oil pipeline hadn’t been commissioned in 2006, this energy corridor would not be there today. If it hadn’t been for the energy corridor, no-one would want to invest in Azerbaijan’s gas fields. Thanks to the implementation of these two historic projects, we have been able to create a new energy corridor. And we have created it. Azerbaijan has created it together with its partners and friendly countries. But it was our initiative. The main financial burden, of course, fell on Azerbaijan.

In subsequent years, as a result of the effective operation of these pipelines, new projects emerged. Last year, Azerbaijan and Turkey signed a contract on the implementation of the TANAP project. This is also a historic project. The TANAP project is of historic significance. Less than a year afterwards agreement was reached on the Trans-Adriatic Pipeline, the TAP project. This is a project that aims to ensure that we access Europe with large volumes of gas. Afterwards, contracts for the "Shah Deniz-2" project were signed. Azerbaijan is building large rigs and platforms, although we did not have such opportunities before.

This in itself will bring foreign investment of tens of billions of dollars to Azerbaijan in the years to come. Now our private sector is more ready for this investment. In the early 1990s, contracts were concluded mainly with foreign companies. And now we have a strong technical capacity and professional companies. Most of the contracts will be implemented by Azerbaijani companies. Look how much our businesses will benefit, how much investment will me made in our economy. So the work done in the energy sector over the past 10 years is historic. No-one can deny that. It is our great achievement, a great success.

Along with this, we have ensured the development of other sectors. In these years, we entered the club of space-faring countries. Today, Azerbaijan has its own satellite. We have a satellite Azerspace-1, which is already serving the Azerbaijani people and state. This is also a historic achievement. The satellite is called Azerspace-1, which means that there will be Azerspace-2 and Azerspace-3, and this industry will develop in Azerbaijan.

Over these years we have managed to achieve the biggest success in foreign policy. Two years ago, with the support of 155 countries, we were elected a member of the UN Security Council. For two years, we acted with dignity and courage in the Security Council and expressed our position on every issue. I believe that the support provided to us in the UN has further increased. More and more countries recognize Azerbaijan as a reliable partner and a friendly country. At the present time, in October, we are chairing the UN Security Council. Azerbaijan, which has been living in real independence for only 20 years, has become a member of the world’s top organization, the Security Council, and currently chairs it. This makes every citizen of Azerbaijan feel proud. We are rightly proud of the fact that our country has been making such progress.

Over these years our cities have become developed and beautiful. Over these years, Baku has become one of the most beautiful cities in the world. Baku is one of the most comfortable and beautiful cities in the world indeed. Our capital is a reflection of the creative work, development and improvement ongoing in the country. It embodies the successful development of Azerbaijan.

It will take several hours, maybe even days, to describe the work done in 10 ten years. I have only highlighted the main achievements. There will be a presidential election after a few days. I am confident that the election will be conducted fairly and transparently. This election will fully reflect the will of the Azerbaijani people.

Thank you.