Opening speech by Ilham Aliyev at the conference dedicated to results of second year implementation of the State Program on socio-economic development in 2014-2018

Today, we will discuss the implementation of the "State Program on the socioeconomic development of regions". The third program was adopted in 2014 and was successfully implemented. We discuss the implementation of this Program every year and identify the directions of future activities. In short, the implementation of this program is a very successful step of ours. In 2004, when the first program was to be adopted, we set the task of ensuring a rapid development of Azerbaijani regions. We should implement infrastructure projects in the regions and create jobs and social institutions so that the development of our country was inclusive and sustainable.

In 2015, the global economic recession deepened further. The global economy has yet to come out of the crisis. While attending the recent Davos World Economic Forum, I witnessed again that the global economy will still remain in a difficult situation. Despite this, we in Azerbaijan resolved many issues in 2015. Everything we planned to do early in the year has been achieved. Given the difficult geopolitical situation and the global economic crisis, it is a great success, of course, because our region is still experiencing bloody clashes and wars. New pockets of confrontation are springing up. Europe is experiencing an economic crisis. At the same time, the situation with migrants is deteriorating. People who have lost their homes, loved ones and property are looking for salvation in Europe, and we all see what awaits them there. Unfortunately, the migratory crisis leads to a strengthening of radical forces in Europe. This is a big threat to Europe, to us and the whole world.

Over the years, Azerbaijan has played a role in strengthening the dialogue between religions and civilizations. Unfortunately, on a global scale we are seeing conflict, misunderstanding and hostility instead of dialogue. Such is the economic and geopolitical situation. Of course, we are very concerned about this situation in the region and the world. At the same time, we need to work even harder in such a situation in order to successfully implement our policies and resolve the problems facing the country.

I think that in 2015 Azerbaijan managed to maintain the momentum of successful development in all areas. Our international credibility has enhanced greatly. Last year, I paid 20 visits abroad – both official and working ones. Azerbaijan was visited by over 15 heads of state and government, which in itself is quite indicative. This shows that Azerbaijan is playing a very active role in the international arena and enjoys great sympathy in the world. I see it every time during my foreign visits. While attending the Davos forum this time, I saw again that our country's policies, the position of principle and achievements have earned a huge sympathy and respect. Today, Azerbaijan is a country enjoying great respect in the world.

Our cooperation with international organizations successfully continues. We are strengthening our activities within organizations we are a member of. We have built a relationship with all other organizations on the basis of mutual respect and intend to deepen these relations. I believe that in 2016 our activities in international organizations will be even more proactive.

Azerbaijan maintains public and political stability. The main reason for this is the unity between the people and the government, because our policy protects the interests of the Azerbaijani people. For me, the interests of the Azerbaijani people and the Azerbaijani state are above all else. The essence and goal of all our work is to create an even stronger state and the best conditions for our people, so that the Azerbaijani people could live and develop in prosperity and security.

Therefore, the fact that Azerbaijan provides for political stability is only natural. Let me repeat: this reality is ensured by national accord, the unity of our people around a single idea, a thought-out policy and achievements. At the same time, the situation in adjacent regions and many countries is exacerbating. There is infighting taking place. In such a situation, of course, the example of Azerbaijan is very significant for the world, and I can say that Azerbaijan's experience is studied in many places.

Last year, we took important steps towards democratic development. Azerbaijan is confidently moving along the path of democracy. This is our conscious choice. I am absolutely convinced that fundamental economic reforms and economic development can't be achieved separately from the democratic process. Therefore, political and economic reforms in Azerbaijan are and will be conducted in parallel. The parliamentary election held in Azerbaijan at the end of last year also proved again how committed we are to democracy. According to all the observers, the parliamentary election was transparent and fair. The will and desires of the Azerbaijani people were fully provided. The election results are a huge support for the policy we have pursued in recent years. This is how I see the results of this election: the Azerbaijani people have once again expressed great support for our policy. I am grateful to the people of Azerbaijan for this and want to reassure the people of our country that despite the global developments and crises, Azerbaijan will continue to develop steadily.

Last year, our economic development was secured. It is true that as compared to previous years, the gross domestic product has not grown a lot – it grew by only 1.1 per cent. But in the current situation when oil prices have plummeted fourfold, I think it is a positive result. The most positive result is that our non-oil industry grew by 8.4 per cent. This is the main indicator, as it shows that the industrialization policy ongoing in our country is bearing fruit.

Growth in the agricultural sector – this area has also been given special attention in recent years – has accounted for 6.6 per cent. These are our key indicators. They show that we are developing and will continue to develop even in the years of crisis. The projects to be implemented this year – we will talk about that today – will enable our economy to grow in 2016, create new jobs and industrial enterprises, and we can not only maintain but also accelerate this trend.

Year 2015 was a memorable one in the energy sector. We have been taken very important steps in implementing the Southern Gas Corridor. As you know, earlier this year Baku hosted the first meeting of the Advisory Council of the Southern Gas Corridor. The event was attended by senior officials of the countries participating in the implementation of this corridor. A specific program was approved. The Declaration was adopted, stating a special and leading role of Azerbaijan in the implementation of the corridor. The Southern Gas Corridor is a project of energy security of Europe. For us, the realization of this corridor will provide additional political, financial and economic opportunities. It will give us the opportunity us to export our ample gas resources to world markets for decades. And this will bring us economic profit, provide the inflow of foreign currency, and our sustainable development will become even stronger.

This year, additional measures will be taken to implement the Southern Gas Corridor. As you know, the Southern Gas Corridor consists of four projects - Shah Deniz, the South Caucasus Pipeline, TANAP and TAP. Work on each project is well under way.

Last year, Azerbaijan asserted itself in the world as a very strong transit country. As you know, these opportunities are created by investment in the transport infrastructure. Today, the roads from east to west and from north to south pass through Azerbaijan. This is also a novelty for the world. We created it. By investing and creating an excellent business environment, we turn Azerbaijan into a unique transport hub. Last year and this year, we have taken very important steps in this direction. Cargo not only from Central Asia but also from China and South Korea are now passing through the territory of Azerbaijan.

At the same time, we are restoring the historic Silk Road for the first time in history. Along with this, first cargoes from Europe to Asia, i.e. from Ukraine to China, are also transported through the territory of Azerbaijan. The cargo that was transported from Turkey to Central Asia through Georgia and Russia in previous years now go to Asia through Azerbaijan, across the Caspian Sea.

So all of these opportunities have been created by us. If we didn't do this work, could Azerbaijan become a transit country today? If we had not taken the initiative and signed the TANAP project with Turkey in 2012, could anyone talk of the Southern Gas Corridor today? Could anyone ensure the energy security of Europe without us? We are doing that. Why? Because it is necessary for our people. This strengthens our state and country, and serves our interests.

All social programs were implemented in 2015. I want to reiterate that although our financial situation is not the same as in previous years, not a single social program will be reduced. On the contrary, this year we have raised wages, pensions and social benefits. And this forms the basis of our social policy.

In short, I believe that last year was successful for our country. The world economy is in a state of stress. The price of oil has fallen fourfold. We tried to keep the exchange rate of the manat stable till the end and managed to achieve this to a certain extent. However, the falling of the oil price fourfold and the depreciation of national currencies in neighboring countries by more than 100 per cent did not let us keep the exchange rate of the manat at the desired level. However, it is also true that we live in a market economy and can't artificially keep our national currency at the desired level.

However, the social security package resulting from the measures taken, price controls, as well as very deep economic reforms, will enable us to successfully come out of this situation. 2016 should and will be a year of very serious economic reforms. Relevant decisions have already been made and changes introduced to the legislation. I have signed several decrees and orders. Additional orders will be signed, so that we could further strengthen our economy this year. The main goal of these reforms is to make the Azerbaijani economy as transparent as leading economies of the world. I am confident that we can do that together.

I would like to say that the State Program of socioeconomic development of regions adopted in 2004, in general, is a historic event and a historic achievement. Over these years, our country has developed rapidly. We have implemented infrastructure projects. Over these years – from 2004 to the present day – 25 power plants have been built in our country. The total number of power plants is 34, of which 25 were built in the last 12 years.

In 2004, there was almost no gas in the districts. During my visits to the regions people mostly asked to provide them with gas. However, we could not provide for ourselves. Until 2007, we bought gas abroad. Today, gasification in Azerbaijan is approaching 90 per cent, and all cities in the districts are supplied with gas by 100 per cent. We have built gas lines even to places that had been received gas in Soviet times. Today, gasification in the regions is close to 80 per cent.

Over the past 12 years, more than 10,000 kilometers of roads have been laid. We did not have a single highway before. Many people will probably remember the condition of our roads. Today, we have built and are still building highways – roads connecting cities and other countries. Our rural roads are tens of thousands kilometers long. I believe that this year we should allocate additional funds for the construction of rural roads, so that we do not put off this program.

Projects of drinking water have already been implemented in many cities. Clean drinking water meeting international standards, the standards of the World Health Organization, is supplied on a round-the-clock basis. These projects are under way and will be continued. The population of all our cities should be supplied with clean drinking water around the clock. Along with this, treatment plants have been built in villages located along the rivers. These opportunities have benefited half a million people. They used to drink water from rivers and canals before.

Such is the work we are doing. Huge work has been done in the social sphere. A whole new social infrastructure has been created. Over 12 years, we built and renovated about 3,000 schools and nearly 600 hospitals. In total, we have about 5,000 schools, of which 3,000 have been built in the last 12 years. We built 41 Olympic Centers in our districts. I am not even talking about Baku. Baku has hosted the European Games at the highest level.

Salaries have been raised almost five times and pensions seven times. We have built 89 settlements for the displaced persons and 225,000 people have moved into new homes and apartments. This is equal to a large city.

There are very positive results in other areas. We have provided great support for the development of entrepreneurship. Loans amounting to 1.7 billion manats have been provided on favorable terms. If we consider this year too, this amount will reach 2 billion manats. Azerbaijan has received investment of 200 billion manats. Half of this is foreign. If we hadn't created stability, development and excellent business and investment environment, what foreign company would be interested in investing here? Look at the countries where stability has been disrupted. Does anyone invest there? No, and this is natural. Who would want to risk! Although we have the resources today, would be want to invest in a country where there is no stability? Of course not.

Therefore, we had to create all this. The Azerbaijani people are happy that great leader Heydar Aliyev came to power at the request of the people in 1993, put an end to all the negative processes and civil war, initiated political and economic reforms, and in 1996 our country began to gradually develop. Until 1996, there was a period of stabilization. Look what the former leadership of Azerbaijan had done. Even great leader Heydar Aliyev took about three years to stabilize the situation and enable the country to enter a period of development.

Today, Azerbaijan is one of a handful of countries on a global scale, a worthy country conducting an independent policy. The source of our strength is the people of Azerbaijan and a powerful economy. If we hadn't provided for economic independence, we would be dependent on other countries. This is what is happening to certain countries today. If they are not self-sufficient, there is no other way – they should obey the will of others.

We are self-sufficient. It is true that last year was challenging. But what to do – we have to deal with these difficulties. There wasn't a more difficult period than the 1990s. It happens, the global economy is cyclical. For many years, we were on an upward trend. Today, for reasons beyond our control, the world economy is undergoing a recession. We, too, are part of the global economy. We have not isolated ourselves from the international community and economy. We are integrated and conduct open market policies, a liberal economic policy. Therefore, it is having a toll on us. But we will still develop confidently. We must meet all our objectives.

I want to say again that in the last 12 years we have come a long and glorious way. We have implemented the Baku-Tbilisi-Ceyhan oil and Baku-Tbilisi-Erzurum gas pipelines. The Baku-Tbilisi-Kars project will be completed this year. Over these years, Azerbaijan has become a space-faring country. Just imagine – Azerbaijan is turning into a space-faring nation. The development of the space industry, information and communication technologies is one of our top priorities.

Over these years, Azerbaijan has made an enormous contribution to the development of multiculturalism in the world. It is no coincidence that Baku will host the Seventh Global Forum of the Alliance of Civilizations this year. This is a global forum and it will be held under the auspices of the UN. These are our achievements, our contribution and our realities. I am sure that we will achieve successful development this year. Although we have created 1,500,000 jobs in the last 12 years, there is still a need for more jobs. We will talk about that. I am sure that the State Program on the socioeconomic development of regions will be successfully implemented in 2016.