Speech by Ilham Aliyev at the opening ceremony of the 28th regional conference for Europe of the UN Food and Agriculture Organization

- Dear Director General!

Dear ladies and gentlemen!

First of all, I would like to welcome all of you to Azerbaijan – welcome to our country!

The fact that a regional conference for Europe of the UN Food and Agriculture Organization (FAO) is being held in Azerbaijan is a remarkable event. It is a very important event for our country.

The relations between FAO and Azerbaijan already have a long history. We are an active member of this authoritative international organization. Various projects and programs are implemented. The FAO support for Azerbaijan is very important to our agricultural reform.

I am sure that this cooperation will continue to rapidly develop and Azerbaijan will further expand its activities in FAO.

Thus, this collaboration will enter a new phase.

The essence of this conference is also very important. The conference agenda includes some very important issues. Of course, we would like to provide complete information about Azerbaijani realities, the reforms carried out in our country in recent years and their results.

Azerbaijan’s agricultural reforms began in the mid-1990s. Very serious and I can even say radical reforms were launched on the initiative of President Heydar Aliyev. I would also like to note that the agricultural reforms may have given a impetus to other sectors. The overall reforms in Azerbaijan began in the mid-1990s.

In 1991 we regained our independence. The early years of independence were very difficult for our country. Our country was faced with great difficulties and disasters in both economic and political spheres. The economic sector, the economy as a whole were paralyzed. Industrial production was in decline and inflation was measured by thousands per cent.

In general, further development of our country, in particular our economic development, was in jeopardy. The agricultural reforms started at that crucial time, in the mid-1990s, and successfully ongoing to the present day led us out of that predicament.

Today, these reforms are continuing. As Mr. Director General has said, agriculture is a priority area for us, especially at this stage, because we are diversifying our economy.

Azerbaijan is an ancient oil region. At present, Azerbaijan's rich oil and gas resources are providing for our own energy security and the energy security of our friends. We use the obtained revenue rationally. The state has invested extensively in the non-oil sector.

In general, I can say that the process of investment is powering ahead in Azerbaijan. Last year $15 billion was invested. I think this year's investment will further increase. Domestic investment already exceeds foreign. A major portion of the investment goes into agriculture, into our districts. We are continuing the reform. The state currently provides farmers with great help. The representatives of Azerbaijan will probably speak about this at the conference. Farmers are provided with subsidies, fuel and fertilizer on favorable terms. A state-owned company “Agroleasing” has been set up. The process of purchasing equipment and leasing it out to farmers is improving. Agricultural services are established. I can say that there is a very positive experience here because there are both public and private agricultural service companies. The public and private partnerships facilitate further agricultural reforms.

We are importing the world's most advanced technologies to Azerbaijan. These technologies are introduced to all sectors, including agriculture. I want to reiterate the importance of cooperation with international organizations, especially FAO. Because we are modernizing our country. Azerbaijan is conducting a policy of extensive modernization. Agriculture is one of the most important sectors for us. During a meeting with Mr. Director General earlier today, we exchanged views about this, and I said there are two priority areas for us in the non-oil sector – one is information and communication technologies and the other is agriculture.

Agriculture is very important for everyone. Azerbaijan is no exception because almost half of its population lives in rural areas, in villages. The establishment of a modern infrastructure in the villages and the provision of advanced services are also a priority for us. In 2004, we adopted our country’s first program on the development of districts. It was successfully implemented. As a result, more than a million new jobs were created in Azerbaijan. The vast majority of these jobs were created in the agricultural sector.

In general, the pace of economic development in the country is very high. Over the past eight years, our gross domestic product has tripled, budget expenditure have risen nearly 20 times and poverty reduced five times. Eight years ago, 49 per cent of our population lived in poverty. Currently, this figure is 7.6 per cent. Of course, most of the poor lived not in the capital, but in the districts. Therefore, our economic reforms and major investment in the districts had a positive impact on several issues. We have achieved several goals. First of all, creation of jobs, poverty reduction, suspension of migration from districts and villages to cities, especially the capital. Also progressing very fast has been the process of creation of local industries with their import-substituting products. We set the goal of becoming self-sufficient in staple foods. Very serious steps were taken in this direction. Currently, we have substantially, by almost 80-90 per cent, achieved self-sufficiency with staple foods. At the same time, we are generating a strong export potential. We are now using a variety of stimulating factors and accessing new markets in order to further improve it. I can say that all new processing plants in Azerbaijan meet international standards, which enables us to export our products to any markets.

Currently, the main export markets for us are neighboring countries. This is a traditional market. But we are also accessing European Union countries with our goods. I am sure this work will go even faster in the near future.
The reforms are ongoing. I want to reiterate that these reforms serve the development of our country and economic diversification.

Today, Azerbaijan has extensive financial resources. These resources are channeled into the development of the non-oil sector. Thus, our economic sustainability is ensured.

Food security issues hold an important place on the global agenda. Azerbaijan has already become a donor country. In the first years of independence we received assistance from international organizations and are grateful for it. That assistance enabled us to develop our country.

We are now becoming a donor country in various fields, including the area FAO is dealing with. We want to work with FAO in this area, work in a coordinated manner. Because I think Azerbaijan's experience is very useful. We have moved from a planned to a market economy in a very short time. When we regained independence in 1991, the share of the market economy in our GDP was equal to zero. Now, the private sector accounts for more than 80 per cent of our economy. We have the experience of partnership between the government and the private sector. In a short period of time we covered a very difficult journey from poverty to development. As I said, in the last eight years our GDP has tripled, i.e. increased by 300 per cent. But we have even more ambitious plans and goals for the next decade. I have already stated that our GDP should further double over the next decade. And this has to happen primarily due to the non-oil sector.

So I believe that we have a positive experience, these reforms must be carried out. First and foremost, they must be conducted in the field of agriculture. We have given the land back to the farmers. For many years we were part of the Soviet Union. As you know, everything, including the land, was owned by the state. The courageous reforms have yielded excellent results. In Soviet years Azerbaijan imported staple foods from other republics. Now we mostly provide ourselves and have even created an export potential. So I think this positive experience might be useful. Also, we are interested in deepening the cooperation with FAO in various projects.

We are ready to play an even more active role in fighting famine because famine is the biggest calamity of the 21st century. It is unacceptable for people to die of famine today, at this very moment. We must join our efforts and wage a serious fight against this calamity. Azerbaijan is ready for that. I think that we, as a respected member of FAO, are ready to take concrete steps in this area. I am sure that this issue will also be discussed at this conference.

I want to draw your attention to another issue. Of course, in recent years we have conducted major reforms in agriculture and we will continue them. New lands are also included into the circulation. The soil is taken care of at a modern level. A lot still remains to be done in this area. I don’t think we have achieved everything we wanted. There are shortcomings, problems and difficulties and we know ways of resolving them. But a certain part of our territory has been under occupation for nearly 20 years. Armenian aggression and the policy of ethnic cleansing against Azerbaijan has led to the occupation of our lands, i.e. 20 per cent of Azerbaijani lands recognized as such by the international community.

The entire infrastructure has been destroyed there. At the same time, the lands suitable for agriculture are left without use. If an end is put to the conflict, if Armenia fulfills four UN Security Council resolutions and withdraws from the occupied lands of its own accord, the lands currently under occupation will be included into the circulation. This will provide even better opportunities for agriculture and normal life.

We will continue to cooperate with all international organizations, including FAO. The positions of FAO in the world are strengthening. This organization enjoys a great authority and is noted in the UN family for its specific programs.

Azerbaijan is also an active member of the UN. In October 2011, when we celebrated the 20th anniversary of our independence, Azerbaijan was elected a member of the UN Security Council. I think this is our greatest victory, the biggest diplomatic success in the years of independence. It is a great achievement for a young republic to become a member of the world's number one body. It is gratifying that our candidacy was supported by 155 countries. This shows that over the past 20 years Azerbaijan has managed to gain recognition in the world as a reliable partner, a friend, a country defending justice. We have now begun to work in the UN Security Council and are noted for a principled position.

Next month we will take over presidency in the world's number one institution. We will continue to uphold international law and justice in the Security Council. For a complete triumph of justice in the world there should not be famine.

Famine, I repeat, is perhaps the biggest injustice.

I want to say again and am absolutely sure that Azerbaijan will achieve further progress in these reforms, that our cooperation with international organizations, with FAO will be even deeper.

Dear friends, in conclusion I would like to express my hope that our guests and friends will be able to see our city. This is a very important conference. This conference is being held in Baku. Its agenda includes some very important issues. But most of you have come to Azerbaijan for the first time. So I hope you will have the opportunity to see our Baku, get acquainted with its culture, learn more about Azerbaijan and become our friends.

I would like to wish you success again. Mr. Director General, I want to thank you and all your colleagues and wish your conference every success. Thank you.