Speech by President Ilham Aliyev at the opening of the Azerbaijan-USA forum “Vision for the Future” in Baku

- Dear ladies and gentlemen!

Distinguished guests!

Dear forum participants!

First of all, I would like to welcome you to our country and express my deep gratitude for participating in this event.

I see a lot of our friends here. For many years we have been working together to strengthen US-Azerbaijani relations. In addition, among our guests today there are influential politicians who have come to Azerbaijan for the first time. I am sure that your visit to Azerbaijan will be very successful and that we will have the opportunity to discuss a wide range of bilateral issues during this event.

I am confident that this forum will be an additional chance to discuss strategic cooperation between our two countries.

The agenda is very broad and covers various areas. I am convinced that sincere and open discussions will contribute to mutual understanding, define new areas of cooperation and identify certain topics in the field of strategic cooperation.

US-Azerbaijani relations have a long history. Perhaps it is not very long, but it is a very important relationship. In the very first days of our independence we established a special cooperation which eventually evolved into a strategic partnership. Our political contacts and dialogue are at a very high level – they are very active. In various spheres - economy, trade, investments, etc. - US companies are among the biggest investors in Azerbaijan. These companies have facilitated a transition of the Azerbaijani economy from a planned to a market economy. We actively cooperate in energy security. We discuss economic diversification, political reforms, issues of regional importance, etc. Regional security and cooperation are important issues.

Security is of great importance for both countries. I am glad that we are entering a new phase in this area. We work together on issues of global security. Our servicemen are taking part in peacekeeping operations in various parts of the world and serve together in Afghanistan. Azerbaijan ensures the transportation of 40 per cent of cargo sent to Afghanistan, and our route can be considered the most stable.

Our cooperation with NATO should also be evaluated from the angle of bilateral relations, and I am very pleased that this relationship is getting stronger with each passing day. Azerbaijan is a reliable partner in the region. We confirm this not just by statements, but by actual deeds. It is of paramount importance to our cooperation.

Issues of regional security will always be at the center of attention. The issue of combating terrorism is an important topic, and Azerbaijan, as a non-permanent member of the UN Security Council, attaches particular importance to this issue. The fight against international terrorism contributes to the consolidation of efforts in this area and to the peace of our citizens.

The United States also plays an active role in the settlement of the Armenian-Azerbaijani Nagorno-Karabakh conflict.

The USA is one of the OSCE Minsk Group co-chair countries. Unfortunately, nothing has been achieved in this area yet. Our lands are still under occupation. But we hope that through the efforts of the international community, particularly the Minsk Group, the conflict will be resolved and refugees and internally displaced persons will return to their homes.

We welcome the statement by the US administration about the unacceptability of the status quo. This fully overlaps with our position and is the requirement of the day. After all, the Nagorno-Karabakh conflict is not only a manifestation of violence and breach of international law. It also poses the biggest threat to regional security and stability. This region must be safe and prosperous.

It must also be integrated.

This conflict and the ongoing occupation of Azerbaijani lands play a very negative role. I would like to tell you that Armenian separatists supported by Armenia had put forward unfounded territorial claims against Azerbaijan even before the collapse of the Soviet Union - in the 1980s. Azerbaijan was faced with a very difficult situation after the collapse of the Soviet Union. Our economy was in a paralyzed state, while the rise of separatism also created a very negative picture.

The occupation of 20 per cent of Azerbaijani territory, the expulsion of more than a million Azerbaijanis from their native lands, the ethnic cleansing - these deplorable conditions created a very difficult situation. We are talking about the occupation of not only Nagorno-Karabakh, but also seven ancestral and native Azerbaijani districts. The entire infrastructure there has been destroyed. The reports of various evaluation missions of international organizations also state that the entire infrastructure, all historical monuments have been destroyed by the Armenian armed forces.

The Azerbaijani people have been subjected to genocide. As you know, innocent women and children were killed with particular cruelty in Khojaly in 1992. Several countries have recognized this tragedy as an act of genocide. Several US states have also recognized it as genocide.

In resolving this conflict, it is first of all necessary to restore the principles of international law. The UN Security Council has adopted four resolutions requiring an immediate and unconditional withdrawal of Armenian troops. I think that the settlement of the conflict can ensure regional security and well-being. The post-conflict South Caucasus will be better able to integrate into the international community. Azerbaijan's experience shows that if there is a predictable and forward-looking policy, then you can be successful.

Another important area of our relations is energy security. We have worked closely with the United States in this area since 1994. The USA was actively involved in various projects in Azerbaijan at the time. As you know, Azerbaijan was the first country, I would say, a pioneer in the supply of Caspian resources to international markets. In 1993-2003, the USA was actively involved in all processes. If it hadn’t been for the strong support of the US Administration and the USA, we could not have achieved success.

We have seen very strong support, and the US-Azerbaijani partnership has ensured the implementation of these important strategic projects.

We managed to attract investment, create favorable conditions for investment and provide for their legal protection. Azerbaijan has a favorable business environment, which also serves the diversification of our economy. Our energy revenues were channeled into the development of the non-oil sector. The Baku-Tbilisi-Ceyhan oil pipeline has been built and put into operation with the support of the US Administration.

The construction of the oil pipeline was the opportunity to deliver resources to international markets not only for Azerbaijan. It was a new corridor, a new direction, a new route. While realizing this project, we could not see all of its positive features. But today we are witnessing the fact that this project has changed the energy map of the continent. We are now able to export all our crude oil. This pipeline is used not only by Azerbaijan, but also by our partners. This corridor has served to bolster regional security and played a crucial role in improving the business environment.

We have already implemented a number of major energy projects. These projects serve the transportation of oil in different directions. Together with our European partners we are working on the Southern Gas Corridor project. This project was initiated by Azerbaijan. The European Union sees Azerbaijan as a major supplier of oil and gas to the continent, and Azerbaijan plays an important part in this project. We have signed a memorandum with the European Union. A number of specific measures have been taken to build the Southern Gas Corridor. This project will facilitate the transportation of Azerbaijan’s vast gas resources to Europe. It will also strengthen the economic cooperation and serve European energy security. Finally, Azerbaijan’s export potential will significantly increase.

In addition, we actively cooperate with consumer and exporter countries. As you know, this gas does not go to the United States, but the USA supports this strategic project. This is a project that serves economic and energy diversification. This is a project serving regional energy cooperation. This is a project brining Azerbaijan and Europe closer together. It will enhance our diversification opportunities because we are not talking about diversification of routes but of sources.

Azerbaijan is a new source. We have discovered huge gas reserves in the Caspian Sea, and Azerbaijan is now taking the necessary financial and technical measures to implement the Southern Gas Corridor project.

I am certain that US-Azerbaijani relations are as significant today as they were in the mid-1990s.

Speaking of that, we make more effort to diversify our economy and reduce the economy's dependence on the energy sector. We strive to ensure the sustainable development of the country and the economy. Oil and gas are exhaustible. As for Azerbaijan, we have enough resources to last for 100 years. But despite this, we aim to turn the "black gold" into the human capital.

We have already begun this work. We invest in leading and advanced technologies, in the non-oil sector. The growth of our non-oil sector in the first four months of this year was 11 per cent. This is an indication that we have largely achieved our objectives and managed to diversify our economy.

Of course, the use of modern technologies in this field and education are important. In the mid-1990s, we also needed modern and progressive technology because the resources lying at a depth of over 150 meters were not accessible to us in Soviet times. The information and communication technology and innovation have played a very important role in diversifying our economy today. The cooperation between our countries here is of paramount importance.

Clear evidence of our collaboration was the launch into orbit of Azerbaijan’s first satellite in February of this year. The satellite is called “Azerspace-1”. This indicates that more satellites will be built in the future. We intend to develop a space industry in Azerbaijan. This is a mutually beneficial cooperation. This enables us to invest in modern technology, education and human capital. At the same time, it contributes to the expansion of cooperation between our two countries.

I am confident that this forum will consider not only the political and security aspects of our relations. At the same time, we must attach importance to economic cooperation. We should be more active economically. We are very pleased that numerous American companies operate in Azerbaijan. But I am sure the potential is greater. Azerbaijan’s opportunities are expanding. In terms of economic reforms Azerbaijan has excellent indicators. This is confirmed by international financial institutions. Therefore, we believe that the successful development of Azerbaijan will be continued. We will invest in the sectors of the economy where there should be greater progress. We will turn to American companies, so that they could explore new areas of cooperation.

Some experts link the development of Azerbaijan to energy. Of course, it is no secret that energy has played a major role in the transformation of Azerbaijan. But if we analyze, we will see that this is not quite the case. We have managed to wisely use our oil revenues. We channeled these revenues into various industries and implemented infrastructure projects. I would say that we have carried out drastic economic reforms. This is part of our strategy. Political and social reforms should be carried out simultaneously with economic reforms because if one area falls behind, we can’t achieve long-term growth and success.

We also need political reforms. We are doing that. We are developing our democratic institutions. All freedoms are provided for in Azerbaijan. We are proud that Azerbaijan is a country of absolutely free media and the Internet. Not every country has free Internet. In Azerbaijan, the number of Internet users constitutes 70 per cent of the population, and this figure is growing. Therefore, political reform and democratic process are constantly on our agenda. These reforms should be complemented by the economy, by successful economic and social reforms.

We take into account our historical heritage. Back in the mid-1990s, we made a specific decision to build a secular, modern and democratic country. We are a country that seeks to establish close cooperation with friendly and partner countries, Europe and Euro-Atlantic institutions. Cooperation with NATO and the European Union is the main issue on our international agenda. Our position in foreign policy is open and clear. We openly and transparently express our position in the UN Security Council. In October 2011, we marked the 20th anniversary of independence and, at the same time, with the support of the overwhelming majority of UN members, were elected to the Security Council - the most powerful organization in the world.

We enjoy great authority in the Muslim world. We have many partners. At the same time, we are a member of the Council of Europe. We are a country that in some ways acts as a natural political, economic and cultural bridge.

Tomorrow we will host another event on intercultural dialogue. We are a state serving as a model of good neighborliness, peaceful coexistence and tolerance. Therefore, economic and political reforms have helped the transformation of the country. I can tell you that our reforms are highly appreciated by international financial institutions.

During the financial crisis, Fitch, Moody's and S&P upgraded the credit rating of Azerbaijan.

According to the Davos forum, Azerbaijan is among the top 50 most competitive economies in the world. This is due not only to oil. There are countries exporting much more oil than Azerbaijan. But they could not achieve such success. This is an indicator of diversification in Azerbaijan, business opportunities, a strong social policy, investment in science and education. I would like to assure you that we have undergone great development. We have tripled the gross domestic product, reduced poverty from 50 to 6 per cent. And this, of course, is an indication of the proper application and use of our opportunities.

At the heart of our development lay revenue generation and transparency of the process. Our Oil Fund is the most transparent oil fund in the world. We have reduced the unemployment rate to 5.2 per cent. If we consider the important investment, this figure will reduce further. Our economy is stable. Our strategic currency reserves account for 70 per cent of the gross domestic product. Therefore, there is a political and economic stability. 83 per cent of our economy is provided by the private sector.

At the same time, our openness to cooperation and all of these conditions will serve the development of our economy. I want to say quite sincerely that a lot was done for our cooperation during my previous activities and in the current presidential term. This cooperation is very important.

The USA has always been close to Azerbaijan, been our closest partner in the implementation of reforms and in strengthening regional security. I think that this forum is clear evidence of that. I am confident that very sincere and interesting exchange of views will be held during this forum. This will be continued in the name of further success of our collaboration and partnership.

Thank you.