Azernews.Az

By Aynur Karimova

Azerbaijan, the only Caucasus country with significant prospects for comprehensive development, is keen on diversifying its national economy, the non-oil sector in particular.

Azerbaijan is the third-largest oil producer in the former Soviet Union after Russia and Kazakhstan. Oil and gas make up 95 percent of Azerbaijan’s exports, over 65 percent of its state revenues, and 40 percent of its GDP.

Despite the fact that the oil prices in the world markets are fluctuating around $50 per barrel, and thus, oil-exporting countries are taking strict measures to decrease the impact of this global challenge to their economies, Baku is not afraid of lowering oil prices.

The government of energy-rich Azerbaijan has long been searching for alternatives to petrodollars received from the export of oil and gas. In this regard, the government pays special attention to the diversification of the national economy and the development of the non-oil sector.

As Azerbaijani President Ilham Aliyev said at a September 8 meeting on economic issues and the preparation of the state budget for 2016, the steps to diversify and develop the non-oil sector helped Azerbaijan endure the drop in world oil prices with minimal loss.

“Over this period, the oil price dropped sharply,” he noted. “The steps to diversify and develop the non-oil sector taken so far have helped us to live through this situation with minimal losses, despite that our incomes have shrunk considerably, which is natural.”

Last year, the price of oil was higher than $100 per barrel, whereas now it is less than $50, decreasing by over half.

“But we are trying and will try for the people of Azerbaijan not to suffer because of this,” President Aliyev said. “All the social programs are being realized, the social infrastructure projects are being implemented, and the security and social protection of people are provided.”

Despite the difficult economic situation in the world, Azerbaijan’s economy developed rapidly in 2015. According to the results from the first six months, the GDP has increased by about 6 percent, the non-oil economy has grown by over 9 percent, inflation is at a very low level, agriculture production has increased by 7.3 percent, and the non-oil industry has grown by 14 percent.

President Aliyev believes that these are the achievements in the crisis year, and it is very difficult to find such high indices on a global scale.

“And again, why? First, we have a strong political will. We have created our policy only by taking into account the interests of Azerbaijani people,” President Aliyev said, adding that the second reason is related to the thought-out economic policy and reforms carried out throughout many years.

“Today, these reforms are highly appreciated by international financial organizations,” he noted. “I should note that this year, Fitch Ratings international rating agency confirmed Azerbaijan’s stable rating again. Our rating is at the BBB- level. It is a very big achievement. Perhaps the general public doesn’t know this, and it was presented in the form of short news in the press, whereas it is a very big achievement."

It is a fact that the credit ratings of other countries have fallen, while the ratings in Azerbaijan are stable.

"Why? Previously, envious persons and detractors were associating our successes with oil, saying that Azerbaijan produces oil, that's why it is developing. Well, oil production in Azerbaijan doesn’t increase but decrease. The price of oil has fallen by more than half. We are developing anyway. They don’t want to accept that a considered policy is the basis of our development,” President Aliyev said.

Anti-Azerbaijani forces try to cast shadow country's development

Unfortunately, anti-Azerbaijani forces that do not want to accept the country's independence have always tried to cast a shadow over Azerbaijan's successful development.

“Today, a sordid campaign continues against us -- in the run-up to the European Games, during the European Games, and now. Why? Because we are defending our country, we don’t allow and won’t allow the fifth column and traitors to dictate their conditions. That is the overall political and economic picture today,” said the president.

President Aliyev also said that Azerbaijan is prepared for the nefarious scenarios that are being witnessed in the Middle East today as well.

"Some foreign circles were talking about the “Arab Spring” in Azerbaijan in 2011 and then in 2012 and were stating that it is unavoidable," Aliyev noted. "They wanted to create ‘Maidan’ in Azerbaijan, involve the youth in these nefarious activities and made them miserable."

However, all this was revealed by the country’s law enforcement agencies, and "the Azerbaijani people said ‘no’ to all these nefarious intentions, supported the Azerbaijani authorities and today, this support is the main source of our power,” said Aliyev.

“Unity between the people and authorities is a guarantor of stability in Azerbaijan and let those who cast dubious glances at our success know that,” he said. “We openly look into the eyes of everyone; we express and will express our position and ensure Azerbaijan’s independent life.”

Economic crisis is serious in Eurasia

President Aliyev also spoke about the deep economic and financial crisis that pervades the world, and which has become more serious especially on the Eurasian landscape.

“An economic decline is being observed both in Europe and in Asia,” he said, adding that there are various objective and subjective reasons for it.

“Those reasons are of course being examined and will be examined by analysts,” President Aliyev noted. “That’s not our job to do. Our job is to protect our country and its economy from negative processes going on in the world to the maximum extent possible. We are able to do this, we do it successfully, we protect our country, and we ensure our country’s security, stability and economic development."

President Aliyev also noted that Azerbaijan is a country that has own stance on all international issues, "and we express our stance not shunning anyone. That is why we have gained great authority and respect in the world,” he said.

The president further said that Azerbaijan’s stance is fair in all matters and Azerbaijan can’t put up with any practices that undermine its domestic and foreign policy.

“In short, changes are taking place today on the world map, and it isn’t ruled out that they will continue in the future,” President Aliyev said. “As for Azerbaijan, against the backdrop of this entire negativity, the country’s economy is developing, the country’s stability is enhancing, our international positions are increasingly strengthening, and the number of those cooperating with us is increasing day by day."

“Azerbaijan is one of the valuable, much respected members of international community, the processes in the country are going in a positive direction, the people support our policy, and even in the years of crisis our economy develops successfully,” said President Aliyev.

"Once again I would like to say that before the end of the year we will conduct all the necessary activities for the economic development to continue. Of course, the government should work more actively and flexibly next year so that our economy would grow in the future as well," he added.

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Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova

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