Speech by Ilham Aliyev at the official opening of Crans Montana Forum

Dear Mister President:

Excellencies:

Ladies and gentlemen:

First of all, I would like to thank Mister President Jean-Paul Carteron for invitation to participate at the session of Crans Montana Forum. It is very important for our country in the year when we celebrate the twentieth anniversary of our independence to present ourselves here broadly at such important international forum.

Twenty years of independence are important milestones in our history. Azerbaijan is the country of great traditions, history and culture. But, the history of independence is very short. As a result of the collapse of the Soviet Union in 1991, we gained independence. Everything depended on our will, our political will, our courage and vision. How we wanted to see our country and what should be the targets for our development? Today, twenty years later, we can proudly say that all the major important targets have been met.

Azerbaijan transformed from the country with one hundred percent planned economy into a country with eighty percent of our economy is produced in private sector. Azerbaijan transformed from a country where democratic principles were not common into a country with democratic principles, political system, strong connections with international organizations and strong commitment to continue political reforms. In each area of our life, we see progress but it does not mean that we should now relax and enjoy the situation. We need to work hard and more in order to develop Azerbaijan as a modern, democratic and prosperous country.

I think that we have all the possibilities to do it. The most important thing is that we have the political will to develop our country and create a modern society. Political reforms are very important. Azerbaijan is the member of the Council of Europe for already ten years and implements all the obligations which we have undertaken upon the adoption in this organization.

Now, our relations with the European Union are entering into a new stage. It will cover also the area of political reforms and democratic process. Yesterday, I had very fruitful and constructive and very friendly meetings with leaders of the European institutions – the President of the European Commission Mr.Barroso, the President of the European Council Mr.Rompuy and the President of the European Parliament Mr. Buzek and Commissioners. These meetings show once again that we have a strong and mutual will to develop relations and cover as many areas as possible.

We have great expectations that the Program of Eastern Partnership will lead to much closer ties between Azerbaijan and Europe. It will allow us to use the positive experience of the European Union in our country in bringing the criteria of our life close to the criteria of the European Union. As a part of Europe, though Azerbaijan is situated at the border of the European continent, but its important role is seen in many areas.

Along with political reforms, we concentrate our attention on economic transformation. It was also a challenge because we needed to have a strong diversified economy. We needed to attract investments and restore the country. A major tool in this respect and especially in early years of the independence starting from 1993, was to attract foreign investments. We needed to create good investment climate and show to potential investors that Azerbaijan is a right place to invest. I think that we managed to achieve this goal.

From 1995 when the major foreign investments have started to come to our country until today, almost one hundred billion US dollars were invested in our economy. Of course, the locomotive of this investment was the energy sector. We managed to use this big advantage of natural resources to diversify the economy of Azerbaijan, reduce dependence on energy sector. I think that we managed to do it. One example is explained by the fact that during the years of economic crisis when oil prices dropped four-five times in 2008 and 2009, our economy was still growing mainly because of non-energy sector.

During last several years, the economic development in Azerbaijan was very rapid. From 2004 to until today, our economy tripled. GDP grew 300 percent. Industrial production augmented almost three times. One of the most important achievements we consider that we managed to create the conditions to open more than 900,000 new jobs mainly in the regions and reduce the difference between the capital and the regions. The reduction of poverty from 49% in 2003 to 9% in 2010 shows that our economic reforms and also energy policy and fair distribution of wealth generated from sales of energy resources were done in correct way.

Economic development in Azerbaijan in the coming years will mainly concentrate on the sectors of economy which are important for the development of our country. It is primarily agriculture, IT development. Azerbaijan is creating now the space industry. Next year, the first Azerbaijani telecommunication satellite will be launched to the orbit. It will be the start of creation of space industry. We invest a lot in education, healthcare and social infrastructure. We have a special program to educate young Azerbaijanis at the leading Universities of the world. This program is funded by the state.

The modernization of our country cannot be limited only to the economic transformation. Though today, as I already mentioned, we do not have any serious problem in economic sector. We need to modernize each aspect of our life to create a modern and dynamic country. Therefore, close connections with European institutions and again I would like to mention that the experience of the European Union in all areas is very attractive for us.

Azerbaijan plays its role in intercultural dialogue. For centuries, our country was the area or the place where peoples of different ethnic origins and different religions lived side by side in peace and friendship. We are very proud that during the independence period this positive tendency even strengthened. As a result of that, today Azerbaijani society is multicultural and multiethnic society. All people of different nationalities and religions live in Azerbaijan in peace and friendship. We become also a place for various international events dedicated to intercultural dialogue. This year we had a very important conference on intercultural dialogue with broad participation of important international organizations and politicians. Our friends like Mr.Carteron and Mr.Altuwaijri were among the contributors to the success of this conference. Last year, we held the World Religious Leaders Summit also with broad participation. We are planning to continue these activities because we are convinced that at this stage of development of the world, we need to talk more. We need to communicate more on the issues of intercultural dialogue.

I think that now it has a great importance at this moment. I am absolutely sure that multiculturalism has not failed. The multiculturalism has a great future. The multiculturalism is the only way for future development of mankind. Though Azerbaijan is not a big country, but our experience, our past and the present situation show that it can work. It can work successfully. This positive experience today is important I think also for our friends and for those who do want also contribute to this noble cause.

Azerbaijan’s geographic location as a crossroad of civilizations and at the same time, its political priorities, policy are important. We are members of the Council of Europe. But at the same time, we are members of the Organization of Islamic Conference. It creates a special atmosphere in our country. We will continue our efforts in order to contribute to the cause of intercultural dialogue.

We pay a big attention to the issues of regional security. One of the biggest problems and challenges and frankly speaking, one of the biggest threats to the region is the situation of neither war nor peace between Armenia and Azerbaijan. For many years, Azerbaijani territories are under Armenian occupation. Armenia conducted the policy of ethnic cleansing against Azerbaijanis. As a result of this policy, one million of Azerbaijanis became refugees and internally displaced persons on their own land. Almost 20 percent of our internationally recognized territory is under Armenian occupation. Unfortunately, for almost two decades this situation continues. Nagorno Karabakh conflict is not only the biggest injustice, but also the biggest threat to the regional security and stability. Therefore, the soonest resolution of the conflict based on the international law norms is important not only for us, but also the whole region. International organizations, United Nations Security Council and other organizations adopted several resolutions and decisions demanding unconditional and immediate withdrawal of Armenian troops from our territory. But unfortunately Armenia does not pay any attention to these resolutions and continues to violate international law norms. The soonest resolution of the Nagorno Karabakh conflict will be in the interests of all the countries of the region and the countries which participate in the process as mediators are trying to do their best to help in finding the solution.

We were very encouraged by the recent statements of the leaders of OSCE Minsk Group Co-chairing countries – the leaders of the United States, France and Russia – saying that the status quo is not acceptable. The status quo must be changed. Yesterday, the same statement was made in our joint press conference by President Barroso. He said also that the status quo must be changed. The change of status quo means the beginning of liberation of the occupied territories. We were always advocating for the change of status quo while Armenia was always trying to keep the status quo as long as possible. Now, it is time to start liberation of the occupied territories of Azerbaijan. It is time for peace in the region.

Nagorno Karabakh problem is the biggest problem for us. One can only imagine how Azerbaijan could develop if we would not have such a problem. Even with this problem and one million of refugees which is the highest per capita in the world and twenty percent of lands under occupation, we managed to transform into the country which is now self-sufficient, dynamic, developing country with strong economic background by transforming the political system and having a very clear vision for our future. Therefore, the soonest resolution of the conflict will lead to the regional co-operation, stability, predictability and then, the region of South Caucasus can integrate with European institutions more rapidly.

One of the important elements of our development is connected to energy sector, of course. I would like to say that the only proper use of our resources was the only way how to establish a modern country and create a strong economy for our country. I am very glad that we took advantage of this situation wisely. We used revenues from energy projects in a fair way. Today, Azerbaijani State Oil Fund is one of the most or may be the most transparent sovereign fund in the world according to the assessment of international organizations. It is one of the most efficient institutions of this kind in the world. It was the main reason for diversification of economy because the Fund is internationally audited. All the revenues which are coming to the Fund and are being spent are made in transparent way. Information about assets is published on regular basis. We never made a secret on how much money we have in the Fund. This information is open. I can say that today, the total reserves of Azerbaijan are more than 35 billion USD which creates for us additional opportunity to develop the country, invest in social infrastructure, modernize the country and spend this money to the benefit of people, increase living standards of our population. I think, the reduction of poverty five times in seven years is the best indicator of proper use of these assets.

At the same time, our energy policy played and continues to play may be even more important role for energy security issues in the region and Europe. When we started the construction of the main oil export pipeline in the beginning of 2000 and successfully completed it in 2005, it was not only the pipeline to transport large volumes of Azerbaijani oil to world markets. It was the opening of a new corridor. The corridor will bring also the resources of gas in international market in the future. And, it happened. In 2005, Baku-Tbilisi-Ceyhan oil pipeline was inaugurated and in 2007, the same corridor was provided for the construction of gas pipeline from Azerbaijan.

Azerbaijan was a country which for the first time in the history brought resources of the Caspian sea to international markets. Today, we managed to create the diversified supply chain of our oil and gas and we have in total seven pipelines which transport oil and gas to all directions. We export our hydrocarbons to all neighboring countries. In the future, I am sure that activities in this area will generate more wealth. The projects that we are discussing now will lead to the broad regional co-operation. As Mr.Oettinger mentioned today we discuss seriously the project of Southern Gas Corridor. During President Barroso’s visit to Azerbaijan in January, the important declaration was signed. The joint working group was established. This working group in a very short period of time – for less than a half of year – produced already good results. We are planning to work actively by the end of year to finalize all remaining issues, particularly transit agreements, agreements between the companies to start a new stage of development of huge gas reserves of Azerbaijan.

The corridor which was created by us for oil, it is serving now for gas transportation. It serves also to the purpose of communication. We are building now the railroad which will connect Asian and European continents through Azerbaijan. By the end of next year, this railroad must be inaugurated already. It will allow us to provide transportation opportunities for millions or may be tens of millions of additional cargo from East to West and vice versa. Therefore, energy strategy of Azerbaijan and energy initiative and projects which were initiated by us today lead to the regional co-operation and in the future, will lead to the continental co-operation. We are in the process of negotiations with our partners in Europe, countries and governments as well as companies. Azerbaijan showed already it is the reliable partner and the country which can support the policy of diversification. The policy of diversification is important equally for producers and consumers. As a producer, we made already all what is necessary and now we are working also to support consumers to have a diversified supply route.

The diversification does not only mean a new supply route. Actually, it means even more a new source. In this respect, Caspian Azerbaijani resources are the new source for diversification because Caspian reserves and those which are in the Azerbaijani sector of the Caspian sea particularly gas reserves they are basically untouched. Minimum proven gas reserves of Azerbaijan today are 2.2 trillion cubic meters and we expect new discoveries during this and next years. So, I am absolutely sure that this figure will grow and it will allow us to transform into one of the important suppliers as Mr.Oettinger has said in the declaration which signed in January in Baku between President Barroso and myself. Azerbaijan is mentioned as supplier and enabler. We are ready to support our neighbors and friends in this process. I am sure that the successful story of energy policy in Azerbaijan will continue. One project leads to the creation of another one.

I do not want to take much of your time. I can talk a lot about our country, history and today’s situation. Some of the achievements in non-energy sector were presented on some photos here. Tourism infrastructure is exhibited. Only this year, six five star hotels will be inaugurated in Baku. This is also the reflection of our policy of open doors, investment climate and also, the trust from investors to Azerbaijan, our future. Without political stability, predictability and stable social and political as well as economic situation, of course, it will be very difficult to imagine such a big interest to Azerbaijan.

In its turn, our country becomes also an investor. Our investments outside the country are already close may be to three four billion USD. We are planning to invest more. As the investor, Azerbaijan has also a good reputation.

I would like to conclude my speech by expressing the gratitude here in the center of Europe to all Europeans who supported our young singers in Eurovision Song Contest. That was a very important sign of friendship. Of course, first of all, it was the attitude of Europeans towards the performance, the singers. They like singers. They like the song. But at the same time, we in Azerbaijan consider it as a sign of friendship from Europe to Azerbaijan. It shows that Europeans, European public opinion and people in different countries of Europe consider Azerbaijan as part of Europe. It is true. In order to become closer, we need to work harder. Yesterday, the meeting with leaders of European institutions showed once again that we have a very strong will to develop our partnership and continue friendly relations.

Thank you very much. I would like to use this opportunity to invite all of you to Baku next year we will have Crans Montana Forum in Azerbaijan. Eurovision Song Contest will be in Azerbaijan. We will have a lot of events. We will be very glad to see you all in Baku.

Thank you for your attention.