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  • BAKU: Azerbaijan Outstripping Armenia, President Says

    AZERBAIJAN OUTSTRIPPING ARMENIA, PRESIDENT SAYS

    news.az
    Oct 25 2011
    Azerbaijan

    Ilham Aliyev has told a government meeting that Azerbaijan is
    outstripping Armenia in socioeconomic development and military
    capacity.

    The president made the remarks in his opening speech to the cabinet
    meeting on Monday, held to review progress in the first nine months
    of the year.

    He said that both economic statistics and military capacity showed
    that Armenia could not compete with Azerbaijan.

    "The economic figures for both this year and previous years and
    our military capabilities suggest that the gap between Armenia and
    Azerbaijan is increasing. These two countries are incomparable. The
    difference between us is like the difference between heaven and earth,"
    the president said.

    Armenia "should finally realize that they cannot compete with
    Azerbaijan in any field. The sooner they realize this, the better
    for them."

    llham Aliyev said that Azerbaijan would not change its position that
    Nagorno-Karabakh is an integral part of Azerbaijan. "The territorial
    integrity of Azerbaijan has never been open to discussion."

    Azerbaijan's international prestige is growing, which can be seen in
    its success so far in elections for a non-permanent seat on the UN
    Security Council, Aliyev said. The final stage in the elections was
    held in the UN on Monday, after the president's speech, and Azerbaijan
    was elected to the council

    The president began his speech by looking at economic statistics.

    A fall in oil production in the first nine months of the year led
    to GDP of just 0.5%, though in the (far smaller) non-oil sector the
    economy grew 8.2%, the president said.

    He did not give figures for oil production, but according to the
    State Statistical Committee oil exports via the main export pipeline,
    Baku-Tbilisi-Ceyhan, fell by 2.611m tonnes in the reporting period.

    Industrial output overall has fallen, again because of the drop in oil
    production, the president said, but did not give a figure. Output in
    the non-oil sector increased 9.2%, while in agriculture it increased
    7.6%.

    Azerbaijan's foreign currency reserves have grown by $11bn this year
    to reach $40bn, which has prompted Baku to consider more investment
    abroad.

    "All revenues received are stored and managed transparently, reliably
    and, at this stage, are directed to projects on the development of our
    country. At the next stage, starting from next year, to diversify our
    funds, we will use these funds in the form of investments in various
    projects in different countries," the president said.

    On social issues, he said that some 900,000 pensioners had their
    pensions increased by an average of 40% this year, while pensions
    overall increased by 35%. The average wage is now $450.

    Unemployment is 5.5%, but may be lower because not everyone in work
    is registered as being so, the president said. He did not mention
    whether everyone without work was registered as unemployed.

    The president said that 74,000 jobs had been created this year,
    55,000 of them permanent.

    News.Az reprints below the president's speech in full, translated
    from state-run news agency AzerTAj.

    Opening speech

    "At today's Cabinet meeting we will discuss the results of
    socio-economic development in the first nine months of the year and
    the work to be done to year-end.

    "Two months are left to the end of the year. We can say that 2011
    has also been successful for the development of the country's economy.

    This year we have addressed key social and economic issues facing
    the country, and successfully implemented all our programs.

    Low GDP, fall in production

    "As regards statistics, we can say that dynamic development continued.

    This is despite the fact that the gross domestic product did not grow
    quite so rapidly. There were reasons for this. It is gratifying that
    thanks to the work done in the previous period and the right policy,
    we managed to diversify the development of the country's economy.

    "Though the gross domestic product has increased by just 0.5%, our
    non-oil economy has grown by 8.2%. I have to repeat that this growth
    is the result of work done in the previous period. As for the growth
    in gross domestic product of just 0.5%, the reason is a fall in oil
    production this year. As a result, the fall has not allowed for a high
    overall figure. But we do not set this as an objective at all. Our
    economy, the structure of our economy, has changed for the better.

    Thanks to the work done in the previous period and to be done in
    future, our economy will show itself to be fully diversified.

    "This means that the projects that have been started have really made
    a great contribution to the Azerbaijani economy.

    "As for the development of industrial production, the overall figure
    is negative as a result of the fall in oil production. But growth of
    9.2% has been achieved in the non-oil economic sector. This growth
    was made possible by investments in the real economic sector and the
    development of entrepreneurship. This is the result of loans provided
    and programs for the development of entrepreneurship, as well as a
    very successful state policy.

    "The objective set several years ago, that is the objective to take
    measures to create strong industrial potential in the country, is being
    achieved successfully. Big enterprises are created and big technology
    parks are opening. The work of small and medium-sized enterprises is
    strengthening, their number is growing and I have to repeat that the
    reason for this growth is that the state provides major support to
    the private sector and loans are given. One of the reasons for this
    growth is that steps are taken to transform state companies into
    international companies. Now our state companies have become strong
    in terms of professionalism, their material and technical base and
    technical equipment.

    Agriculture

    "Agriculture has also grown in nine months, which is a positive fact
    since measures were implemented, programs on agricultural development
    executed. Bigger programs are to be implemented this year. As you
    know, the state allocates very big funds and provides concessions
    in the development of this sector. The supply of equipment, loans
    on preferential terms and subsidies constitute the development of
    agriculture. It is no fluke that in the first nine months of this
    year, agriculture has grown 7.6%. This industry also has great social
    significance, as about half the population lives in rural areas. Thus,
    the development of agriculture increases yields, expanding acreage. As
    a result of land reclamation measures in the coming years we will
    introduce even more land. From now on, measures relating to agriculture
    will be taken consecutively. Along with this, we now have to think
    very seriously and work on entering new markets. This work is being
    done. Especially given that non-traditional markets are waiting for
    our agricultural products, the products of our processing industry. We
    just need to properly carry out our policies, harmonize domestic
    production to domestic consumption and access to foreign markets,
    so that the larger volume of agricultural output to be produced in
    Azerbaijan will find a buyer.

    Reserves

    "I can say that in the first nine months of this year, our financial
    position significantly improved. This year, despite the fact that we
    are implementing major infrastructure projects, our foreign currency
    reserves have not fallen but grown. During the first nine months our
    reserves increased by about $11 billion. At present, Azerbaijan's
    foreign currency reserves exceed $40 billion. This is a very high
    figure. If you look at the performance of developed countries, you
    can see that Azerbaijan is not inferior to any of them in this sector
    and is even ahead of many countries. If we consider that we have the
    right oil and gas policy and strategy and that we are constantly
    coordinating investment with expected revenues, there is no doubt
    that we will further increase our foreign exchange reserves without
    reducing investment and social spending. This is our greatest asset.

    This gives us economic power, allows us to implement investment
    projects and, at the same time, protects and will protect us from
    all difficulties and crises. The main reason for the accumulation
    of foreign reserves to this extent is related to the creation of the
    State Oil Fund of Azerbaijan in 1999 and the transparency of its work.

    Azerbaijan to invest abroad

    "All revenues received are stored and managed transparently, reliably,
    and at this stage are directed to projects on the development of our
    country. At the next stage, starting from next year, to diversify our
    funding, we will use these funds in the form of investments in various
    projects in different countries. In short, in our country, issues
    related to economic development, are being successfully tackled. It
    is not surprising that international financial institutions highly
    appreciate the ongoing reforms in Azerbaijan in the economic and social
    spheres, the increase in Azerbaijan's credit ratings. At a time of
    crisis when the credit ratings of developed countries are falling,
    the credit ratings of Azerbaijan are rising.

    "An influential international organization - the World Economic
    Forum - in its latest report on the competitiveness of countries
    praised the activities of Azerbaijan and ranked it 55th. In terms of
    the competitiveness of its economy, Azerbaijan occupies first place
    and is a leader in the CIS. It preserves and I'm sure will continue
    to preserve the lead, since the foundation of our success includes
    well-targeted reforms, the right, independent policy. The energy
    factor no longer plays a major role in our success. As you know,
    in recent years, we've done a lot to reduce our dependence on the
    energy factor. Despite this, today and in the future our oil and gas
    potential will ensure our political and economic interests.

    Social policy

    "Remarkable events have occurred in the social sphere in 2011. These
    events, these steps show also that our policy is socially oriented. We
    are committed to the principles of a market economy. But at the same
    time, we are taking concrete steps to better protect the low-income
    section of the population. These steps are not limited to the adoption
    of programs or statements, these programs are specific.

    "This year, some 900,000 pensioners had their pensions increased
    by an average of 40%. In the first nine months, pensions overall in
    Azerbaijan have increased by 35%. This is a very high figure, a great
    achievement, a very serious step, a timely, fair and very right step
    to better ensure the material well-being of the older generation.

    "The average wage also grew. The average pension in Azerbaijan is
    now 190, while the average wage is $450. This is a good level, but
    it should be even higher. We will strive to take further measures
    to address social issues and to ensure that pensions and salaries
    grow constantly; we will strive to improve living standards and to
    eliminate the social evil of poverty in Azerbaijan. The government has
    initiated a special program of targeted social aid for the poorest
    people. Currently, this program covers 113,000 families. More than
    500,000 people per month receive funds from the state. On average,
    each family receives state aid of AZN 102 which is about $130.

    "This is also the right step. This is a just step. As long as these
    people live in poverty, the Azerbaijani government will lend them
    assistance. When they emerge from poverty and improve their financial
    situation, then this assistance will be suspended, since the main
    issue is the principle of social justice. We have been living for 20
    years in a market economy, our economy is regulated on the basis of
    these principles. That is, the market adjusts both demand and supply.

    But there are cases when people have no opportunities, when they are
    out of work or have a low income. We must not remain indifferent to
    their plight. The main objective of the social assistance program is
    to take measures to improve the financial situation of the poor.

    Unemployment and jobs

    "As for unemployment, I can say that overall Azerbaijan has done
    a lot on this and now the unemployment rate is about 5.5%. If we
    look at the developed countries, we can see that this is a very good
    figure. In some developed countries, unemployment is at 20, 15, 10%
    and we have 5.5%. This may not reflect the real situation, as we know
    that, unfortunately, in this area, we still do not have a detailed and
    precise mechanism. Sometimes there are cases when registration is not
    done. In some cases, people are paid not officially, but in envelopes.

    We have raised this question. I can say that in recent years we have
    adopted effective measures to normalize the situation in this area,
    and they should be continued. But if we take into account this factor,
    we can see that the unemployment rate in Azerbaijan is below 5.5%. It
    is likely that the level of poverty is also not 9.1% but lower. But,
    of course, in the coming years as a result of specific administrative
    steps and institutional measures, we will have an absolutely real
    picture of the economic situation. The innovations introduced,
    the principles of 'electronic government' and other progressive
    initiatives will provide the public with a picture fully reflecting
    the real situation.

    "This year, we again implemented successful investment projects and
    took additional measures to create jobs in the regions; 74,000 new
    jobs, 50,000 of them permanent, have been created in nine months. In
    the past eight years about 950,000 new jobs have been created in
    Azerbaijan.

    Development of the regions and suburban Baku

    "The program of regional development is being successfully
    implemented. We have periodically made additions and changes to
    this program. During the year, the President's Reserve Fund has
    allocated sufficient funds to the regions. These funds are channelled
    to socio-economic and infrastructure projects. In particular, in
    the recent period we have been seriously engaged in the repair and
    construction of rural roads. Major programs are already under way. In
    the coming years, this area should be given more attention. In short,
    the Regional Development Program is being implemented, there is no
    reason to worry.

    "This year we have adopted a very extensive and specific program for
    the development of the villages and settlements around Baku. I can
    say that the program was launched in the shortest possible time. We
    are already seeing the initial results of this program. Earlier in
    2005, we adopted a three-year program for the development of the Baku
    suburban villages which has ended. There was a need for a new program.

    We adopted one and can say that major creative, rehabilitation and
    improvement work is under way in the regions. Infrastructure is
    being upgraded, new gas, water and sewer lines are being laid, the
    electricity supply is being improved and schools, hospitals, medical
    facilities are clinics are being built. That is, for every village
    there are specific proposals which are reflected in the program.

    "This program has been published in the press. In drafting the
    program we received the main information from the ground, that is,
    villagers made their proposals, which were compiled, and eventually
    adopted in the program. There are specific proposals about employment
    for villagers. We have also begun issuing loans to the settlements,
    and in some areas we already have specific programs and proposals. I
    am pleased that the program for Baku and the suburban villages has
    been stepped up. This rate of implementation allows us to say that
    all the villages will see their social and economic issues resolved
    in two or three years.

    "In the first nine months of this year, we have systematically built
    our work in all areas. This is a wonderful tradition. For each area
    there are specific programs. There are almost 50 targeted programs
    in Azerbaijan, which have clearly indicated funding, implementation
    mechanisms and time-frames. All our actions are specific, which is
    the guarantee of our success.

    Karabakh

    "In tackling our most difficult problem - the Armenian-Azerbaijani
    conflict over Nagorno-Karabakh - unfortunately, there is no progress
    there. I've informed the public about this issue fairly well. At the
    event to mark the 20th anniversary of our independence, I provided
    extensive information and there is probably no need to repeat it. I
    just wanted to say that Azerbaijan has a principled position, which
    is based on historical truth, and the norms of international law. We
    will not step back from this position. The territorial integrity of
    Azerbaijan has never been open to discussion.

    "We will strive to restore our territorial integrity. I repeat that
    although there have been no results in recent months, the opinions of
    international mediators, particularly about the unacceptability of the
    status quo, give some hope. That is, the status quo is unacceptable,
    it should be changed, the conflict is not 'frozen' and changing the
    status quo, of course, demands the withdrawal of occupying forces from
    the occupied lands. A solution to the conflict is possible this way.

    The occupying forces must be withdrawn from the occupied lands.

    International law should be the basis for any issue, especially
    issues related to the conflict. We will strive to make use of every
    opportunity to resolve this issue in our favour based on international
    law. At the same time, of course, all these figures I have cited today
    including economic development, economic potential, demographics and,
    of course, military potential play and will play a role in the fair
    resolution of the issue as soon as possible.

    Gap increasing between Armenia, Azerbaijan

    "Extensive measures have been taken in this direction, too. An exact
    policy is being pursued. The economic figures for both this year and
    previous years and our military capabilities suggest that the gap
    between Armenia and Azerbaijan is increasing. These two countries are
    incomparable. The difference between us is like the difference between
    heaven and earth. Everyone knows it - the international community,
    the parties and entities directly involved in this matter.

    "Most likely, this reality is the reason for recent statements about
    the status quo, that is, to change the status quo. As we know, every
    impartial observer knows that Azerbaijan is growing stronger while
    Armenia is growing weaker. The Azerbaijani population is increasing
    while the population of Armenia is decreasing.

    "With regard to military matters, economic statistics clearly show
    who is who. As they say, it is enough to take just one unbiased look
    at cities to see the reality: Azerbaijan has travelled a great path
    and our country is growing stronger day by day. As for the military
    balance, I can say that until recently international agencies
    and observers did not see the difference in this area, namely, the
    difference in our favour, perhaps due to Armenian propaganda. However,
    the recent parades in Azerbaijan and Armenia clearly demonstrated
    the current state of affairs.

    "I believe the military parade in Armenia was a great mistake on their
    part. Until the parade they could somehow claim that the Armenian army
    is the most combatant army through myths and fantasies. But after the
    military parade everyone understood the deplorable condition of the
    Armenian army. I and the entire public saw for the first time that the
    military equipment could not move. They demonstrated the equipment in
    the parade on trailers and trucks. There can be several reasons for
    this. These military vehicles were either out of order or there was no
    fuel or both. Most likely, both factors played a role in this regard.

    This parade showed once again that Armenia is not an independent state,
    but an outpost. High-ranking officials have stated this before, but
    the picture we saw at the parade once again confirms that Armenia is
    an outpost.

    "In addition, this event in Armenia, perhaps, will mark a first in
    history. The participation of religious figures in it was, to put
    it mildly, surprising. The priests were marching like soldiers. It
    is hard to put into words. We understand that Armenia is facing a
    demographic disaster due to its aggressive policies, but we had no idea
    that religious leaders there are also drafted in to military service.

    "It is equally ridiculous and tragic. I think that they need to
    realize as soon as possible that resolution of the Armenian-Azerbaijani
    conflict over Nagorno-Karabakh will serve their interests.

    International prestige

    "Finally, the recent vote at the UN demonstrated our country's
    possibilities and its growing prestige in the international arena.

    "As you know, Azerbaijan is seeking to become a member of the UN
    Security Council. Our diplomacy has done huge work in the past few
    months to achieve this goal. This vote has an interesting history.

    Perhaps the Azerbaijani public does not know about it. Armenia had
    also put forward its candidacy along with us at the preliminary stage.

    However, a few months ago, probably thinking that they were not able
    to compete with Azerbaijan, they withdrew their candidacy very quietly
    in the diplomatic arena.

    "This showed that they are helpless before Azerbaijan and they
    admit it. They know that their aggressive policies pursued against
    Azerbaijan, their dirty deeds and evil plans can never be supported
    by the international community. On the contrary, the international
    community condemns and will condemn it. As a result, Armenia withdrew
    its candidacy very quietly, I repeat, so that many people and countries
    will not find about this disgrace.

    "I hope that they will display the same approach in resolution of
    the Armenia-Azerbaijan conflict over Nagorno-Karabakh and they will
    re-think things and weigh them up. They should finally realize that
    they cannot compete with Azerbaijan in any field. The sooner they
    realize this, the better for them. It is possible that their political
    and diplomatic failure, the failure in elections to the UN Security
    Council will not be limited to the diplomatic arena. Azerbaijan is
    a strong state and neighbours of strong states usually want to be
    friends with them.

    "As for the elections, they are still under way. Several rounds have
    already been held. Azerbaijan was the first in the first round.

    Azerbaijan was also ahead by a wide margin in the second and subsequent
    rounds. The next rounds will be held today, 24 October, but we can
    already say that this is our great victory. Regardless of the outcome,
    I can emphatically say, and am absolutely confident that this is a
    historical result, as 113 countries supported Azerbaijan. This is a
    historic achievement.

    "This is a sign of the attitude of the international community towards
    Azerbaijan and evidence of the country's development. I have repeatedly
    noted in my speeches that Azerbaijan is a trusted partner.

    There is great sense in this sentence. Maybe those who hear it now,
    as they say, cannot adequately imagine how much sense this statement
    contains. It is a very great responsibility and a great achievement
    to be a reliable partner.

    "We really are reliable partners. Some may like our policy while some
    may not. We are just pursuing our policy. Azerbaijan is a reliable
    partner. There is no discrepancy between our words and deeds. There is
    no discrepancy between our words and signature. It is not easy at all
    to win trust, especially for a young independent state. We recently
    celebrated the 20th anniversary of our independence and spoke about
    the great successes and future plans.

    "I can say that the support of 113 countries for Azerbaijan is
    a logical result of those 20 years. In short, we have specific
    programs, plans, policies related to the situation in the country,
    reforms carried out domestically, as well as our foreign policy. This
    policy allows our country to develop rapidly and successfully."


    From: Baghdasarian
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