President Ilham Aliyev: Today Azerbaijan is leader in region in terms of economic potential
President of Azerbaijan Ilham Aliyev has given an interview to British The Business Year magazine, AzerTac state news agency reported.
AzerTAc presents the full transcript of the interview:
TBY: Looking back over your years as President, what developments are you most proud of?
Ilham Aliyev: The last 10 years have been an
important period of dynamic socioeconomic development and a stage
of democratic and modern state building in Azerbaijan. While
relying on strong popular support, we have made great achievements
by following the political course of our national leader Heydar
Aliyev, who established strong public and political stability and
laid the foundation of economic reforms. Numerous state programs
outlining both the general direction of the country`s development
and the specific work to be done in all areas that have been
adopted and successfully implemented. These activities have had an
important impact on the socioeconomic development of the country,
improved the well being of the population, and facilitated the
solution of other problems facing our citizens. The launch of
Azerbaijan`s new oil strategy has opened up extensive opportunities
for the implementation of all our future plans. The launch of the
Baku-Tbilisi-Ceyhan (BTC) oil pipeline in 2006, and the
Baku-Tbilisi-Erzurum gas pipeline after that, ushered in the
renewal and diversification of Caspian hydrocarbon export
infrastructure, and secured the direct access of Azerbaijani oil
and gas to world markets. These have become landmark events-not
only for the past 10 years, but also in the years of Azerbaijan`s
independence in general. Over the last 10 years we have diversified
and tripled the range of our economy, created a modern social and
economic infrastructure, and secured the dynamic development of the
non-oil sector. In 2003, our state budget was $1.5 billion, while
in 2013 we increased it to $25 billion. More than 1 million jobs
have been created in the country, while the level of unemployment
has dropped to 5.1%. Although the poverty rate in 2003 in
Azerbaijanwas 49%, we successfully brought it down to 6% in 2012.
This is one of the highest indicators related to poverty reduction
in the world. A total of $140 billion has been invested in the
Azerbaijani economy, while the country`s exchange reserves are in
excess of $46 billion.
During the 2005-2009 period, Azerbaijan was a leading country in
the world for its rate of economic development, and it completed
the period of its economic transition. Starting from 2009, our
focus has been on reducing the country`s dependence on oil, and the
dynamics of the last three years show that we have achieved this
goal. At the present time, we maintain stable oil production, and
we have secured the country`s economic development largely by means
of the non-oil sector. As a matter of fact, the Azerbaijani economy
registered 9% growth even in 2009, the year when the global
financial recession began. Although oil production in Azerbaijan
slightly declined in 2012, GDP increased by 2.2%, while the non-oil
sector grew by about 10%. The non-oil sector has expanded twice in
the last eight years, and grew by 8% in 2012. It is a well-known
fact that a number of countries in the world are currently
experiencing major financial constraints and have to borrow
extensively in an effort to prevent the trend of economic decline.
In some countries, for example Armenia, public debt is approaching
50% of GDP and this situation is expected to gradually be further
aggravated. In Azerbaijan, public debt accounts for only 7%-8% of
GDP, one of the lowest indicators of this nature in the world.
As a result of the implementation of important state programs and
large-scale infrastructure projects, the appearance of cities,
villages, and settlements across the Republic has changed beyond
recognition, while the living standards of the population have
dramatically improved. By implementing programs for the
socioeconomic development of districts, we have managed to
eliminate the gap in the level of development between the capital
and the countryside. We have achieved major progress in the social
sphere in Azerbaijan. More than 2,500 schools meeting contemporary
requirements, hundreds of healthcare institutions, and numerous
sports and social infrastructure facilities have been put into
operation in the last 10 years. Salaries and social benefits have
been regularly increased, and this policy will be continued in the
future as well. In addition, in 2012 we started a process for the
payment of compensation for deposits left in Soviet savings banks.
It is worth mentioning that Azerbaijan is the only country of the
former Soviet Union to repay these deposits over a short period of
time and with a high interest rate. As is known, 20% of Azerbaijani
territory has been occupied as a result of Armenian aggression.
More than 1 million people have become refugees or internally
displaced, living in extremely unfavorable conditions such as
tent-camps and places not suitable for habitation. In 2004, we
began to take serious steps to improve the plight of internally
displaced people. Over this period, all the tent-camps have been
eliminated, 77 modern settlements have been built, and the living
conditions of hundreds of thousands of internally displaced people
have been improved. In 2012 alone, we provided 20,000 internally
displaced persons with modern apartments and houses. Another 20,000
people will be provided with new residences over 2013. Over these
years, we have successfully implemented the country`s security
strategy. First and foremost, we have ensured the energy security
of Azerbaijan and eliminated the country`s dependence on foreign
energy. Today, Azerbaijan is a country contributing to the energy
security of both the region and Europe, and the country is an
important player in the global energy market. Azerbaijan`s
contribution to the gas market of several European countries has
increased to 40%. Starting from 2017, after the implementation of
the TANAP project, which was initiated by Azerbaijan and is being
realized jointly with Turkey, the country`s role in the natural gas
market of Europe will further increase. This project is expected to
become a major contributor to our long-term development and will
secure Azerbaijan`s economic and other interests for decades to
come. Taking into consideration the occupation of Azerbaijani
territories in the aftermath of the Armenian-Azerbaijani conflict
over Nagorno-Karabakh, we see the strengthening of the army as one
of our priority objectives. Today, the Azerbaijani army is the
strongest army in the South Caucasus in terms of its material and
technical capacity, weaponry and ammunition, discipline, and combat
readiness. We have established the Ministry of Defense Industry in
Azerbaijan, launched several military industry enterprises, and are
currently producing over 700 military commodities. Azerbaijan is
currently the leading country in the region from the standpoint of
its economic potential. Our economy accounts for more than 80% of
the South Caucasus economy. We have become a country with a
sustainable economy. It is possible to say with full confidence
that we have accomplished everything we planned in 2003. The
world`s leading economic and financial institutions are currently
giving a high assessment of Azerbaijan`s successes. We are ranked
in leading positions in all international reports. While the
world`s leading rating agencies such as Fitch, Moody`s, and
Standard and Poor`s have downgraded the credit ratings of most
developed countries, our rating has been upgraded. Azerbaijan has
advanced into the category of countries with "high human
development" according to a report from the UN Development Program.
The Global Competitiveness report from the World Economic Forum
rates Azerbaijan as the 46th country in the world and first in the
CIS. The decision was made in 2012 to hold a session of the Davos
Economic Forum in Azerbaijan in 2013. This is evidence of the fact
that the international community recognizes Azerbaijan`s economic
achievements. Obviously, the list of achievements over the last 10
years, for which our people can be proud of, is very extensive. It
was in 2011 that Azerbaijan was elected a member of the UN Security
Council for the first time in its history, despite tough
competition. In May 2012, our country presided over the
organization. I believe that this has been an international
assessment of our country`s sustainable development through our
years of independence, an indicator of the respect Azerbaijan has
earned globally, and recognition of our contribution to global
security. Azerbaijan has turned into a platform of dialogue between
civilizations, a center of multiculturalism, and a venue for the
discussion of pressing political, economic, humanitarian, and other
issues. In 2011, we organized the Global Forum on Intercultural
Dialogue, thus elevating the initiatives implemented by Azerbaijan
on the regional scale onto the global level. The Baku International
Humanitarian Forum, which is annually attended by heads of states
and governments, Nobel Prize laureates, and internationally
renowned public and political figures, has already become a
tradition. In 2011, Azerbaijan won Europe`s top music competition,
the Eurovision Song Contest, while in 2012 we successfully hosted
this competition in Baku, thus demonstrating our great potential to
the world.
The Seventh UN Forum on Internet Governance was held in Baku in
2012. The fact that this forum was held in Azerbaijan was no
coincidence, as the ICT sector is rapidly developing to become the
most promising segment of our economy. In fact, 2013 was declared
"The Year of ICT" in Azerbaijan. On February 8, 2013, Azerbaijan
launched its first telecommunications satellite into orbit. It was
a very significant and historic day, and a major achievement for
our country. The decision to put an Azerbaijani satellite into
orbit was made in 2008. In 2009, we adopted a relevant state
program, Azerkosmos JSC was established in 2010. The results we
have achieved show that Azerbaijan is indeed a rapidly and
comprehensively developing country today. Two more satellites will
be launched into orbit in 2015 and 2016, which will create
excellent opportunities for the development of the space industry
in Azerbaijan. The development of new technology, in particular the
ICT sector, has become a hallmark of Azerbaijan and will facilitate
our successful development in the future. Over past decade,
Azerbaijan has successfully hosted a number of globally important
political, economic, cultural, sporting, and other events. In
addition to that, the European Olympic Committee`s decision to
conduct the inaugural 2015 European Olympic Games in Azerbaijan is
not only a historic achievement and a huge success for our country,
but it is also evidence of Azerbaijan`s growing international
authority and a recognition of our extensive opportunities on the
part of the international community. In parallel with this,
democratic reforms are being continued and a strong civil society
has emerged in Azerbaijan. Today, Azerbaijan is a country where
freedom of expression, speech, and the media are guaranteed. People
and the prosperity of our nation are at the heart of all our
policies. All of our steps and work serve the interests of the
people of Azerbaijan. Of course, we could not implement such
gigantic plans without the confidence and support of our
people.
TBY: Regarding the upcoming election, what can you say about the future of the country and the key policies you intend to implement?
Ilham Aliyev: More than 20 years ago, Azerbaijan freed itself from a totalitarian system and has been on the path of democratic state building ever since. At the sensitive time when our Republic had just regained its independence, it was vitally important for our people who and what force would come to power in Azerbaijan. The bitter experience of the early 1990s shows that the rise to power of completely accidental people, unaware of their responsibility for public administration, can lead to tragedy and expose the state to serious problems. The people of Azerbaijan are very wise and have always been able to make the right decision at crucial times in their history. When our statehood was faced with the imminent threat of destruction in 1993, our people stood up and invited national leader Heydar Aliyev, who had tremendous experience in public administration, to power. The consistent implementation of the development strategy laid down by Heydar Aliyev for over 20 years has secured our dynamic development and transformed Azerbaijan into a modern and democratic country on the world map. There are certain unchangeable principles of building a modern and democratic state, a system of values that are consistently secured, and main strategic goals that are always protected. I am absolutely convinced that the course toward building an independent state, democratic development, social prosperity, and civil society laid down by Heydar Aliyev must continue in Azerbaijan. Of course, the top priority of this policy is that Azerbaijan should stand among the most developed countries of the world, be competitive, restore its territorial integrity, and be an independent, strong, and democratic state.
TBY: Given the important geostrategic location of Azerbaijan, how would you describe the country`s relations with Russia, Turkey, and other neighboring nations?
Ilham Aliyev: Azerbaijan is a reliable partner that has its own position on any issue and pursues a completely independent policy. With the exception of Armenia, we build our relations with countries in the region and the world on the basis of the principles of effective cooperation, mutual respect, and non-interference in each other`s affairs. It was on these principles that Azerbaijan joined the Non-Aligned Movement (NAM) in 2012, thus identifying new vectors of the country`s foreign policy. As with any other country in the world, we are currently working to strengthen our relations with African and Latin American countries and establish new partnerships. The development of relations with regional countries remains a priority direction of our foreign policy. Turkey is a friendly and brotherly country and a strategic ally for Azerbaijan. The transnational projects implemented by Azerbaijan`s initiative in recent years, as well as mutual investment projects, have brought our countries even closer together. We are currently implementing a project on the construction of a petrochemical and refinery complex in Turkey worth $17 billion. Azerbaijan`s major energy projects enhance the importance of Turkey as a transit country and a contributor to European energy security. As was the case in previous years, our relations with Russia are also rapidly developing. Our relations have assumed the nature of a strategic partnership. Political dialogue, humanitarian cooperation, the strengthening of economic relations, and collaboration on other issues form the core of our bilateral agenda. Russia is in first place for the volume of imports to Azerbaijan. At the same time, Russia is an important market for our agricultural produce. We have recently started to invest in real estate and the shares of major commercial entities in Russia. Azerbaijani companies are also implementing projects in the area of agricultural produce processing in Russia, for example. Furthermore, Azerbaijan is developing friendly and sincere relations with other countries in the region. We are guided by the interests of the Azerbaijani people and the state in bilateral and multilateral relations.
TBY: The year 2012 was declared "Year of Sports." Reflecting on Azerbaijan`s achievements at the Olympic Games in London 2012, the hosting of the FIFA U-17 Women`s World Cup, and the election of Baku to host the inaugural European Olympic Games in 2015, how would you evaluate this past year?
Ilham Aliyev: Our achievements in the field of sports in 2012 give us the opportunity to talk about the results of the "Year of Sports" with a sense of great pride. When making this decision at the beginning of 2012, we wanted our athletes to win and to succeed, and they have lived up to our expectations. Our athletes have successfully represented our country in international competitions, winning a total of over 700 medals in various tournaments, including 255 gold medals. About 300 international sports events have been held in Azerbaijan in the last 10 years. Of these, I want to particularly highlight the FIFA U-17 Women`s World Cup, because it was a new and very successful experience for us. Both FIFA and UEFA have given a very high assessment of the organization of the World Cup in Azerbaijan. In 2013, we marked the 20th anniversary of the National Olympic Committee. Azerbaijan has been a member of the international Olympic family for 20 years now. The historic results of our athletes at the London Olympic Games in 2012 are further evidence of the fact that our country is already a full-fledged member of this family. Our athletes have won 10 medals at the Olympics, including two gold, two silver, and six bronze. We finished in 30th place in the world, in 15th among European nations, and in third among Muslim countries. Finally, on December 8, 2012, a session of the General Assembly of the European Olympic Committee held in Rome decided to conduct the inaugural European Olympic Games in 2015 in Baku. I believe that this is a historic decision. Historically, the Olympic Games originated in Europe, but the European Olympic Games have never been held before. The decision to conduct the first European Olympic Games is in itself a very serious step, a watershed in the Olympic movement. It is a tremendous responsibility for us to host Europe`s first Olympics, but it is also a high assessment on the part of the international and European Olympic movement of the work being done in our country, including our achievements in the field of sports. The ever-growing international authority of Azerbaijan, the country`s economic power and dynamic development, the modern social, economic, and cultural infrastructure, the existing public and political stability, and the popular support for the reforms being implemented have played an important part in the adoption of this decision. However, we had started to create a modern sports infrastructure suitable for conducting important international competitions in Azerbaijan long before the decision was made. In 2012, these activities were continued and two more regional Olympic centers were commissioned, bringing the total number of Olympic centers in the country to 35. Eight other centers are currently under construction and there are plans to build several more. New sports facilities have been built and put into operation in Baku. The country`s central stadium has been renovated in accordance with international standards. Another stadium has also been commissioned. The construction of a large Gymnastics Center and an Aquatic Palace is currently under way. In 2012, we laid the foundation for the Olympic stadium, which will be the largest stadium in the region. I am absolutely sure that the infrastructure and technical and organizational issues will be successfully resolved for the inaugural European Olympic Games in 2015. I would also like to note that host countries are usually allowed six to seven years to prepare for the Olympic Games, but we have only two years to go. This is why we have already started to take the necessary actions. On January 17, 2013, we established the Organizing Committee for the First European Olympic Games, which held its first meeting on February 2, and discussed future objectives and tasks. I am sure that all relevant organizations will do their best to conduct the Games at a high level and we, as ever, will demonstrate the power of our country, the hospitality of our people, and the dynamic development of Azerbaijan to Europe and the world.