Press-release, 16 May 2005

Participation of the delegation of the Republic of Azerbaijan at the 61st session of the Economic and Social Commission for Asia and the Pacific (ESCAP)

BANGKOK - Delegation of the Republic of Azerbaijan participated at the 61st session of the Economic and Social Commission for Asia and the Pacific (ESCAP) held at United Nations Conference Centre (UNCC) in Bangkok, Thailand, from 12 to 18 May 2005.

Considering that reducing poverty is one of the main priorities of the United Nations and ESCAP and is also one of the main issues for discussion during the 61st Session, it is necessary to inform that Annual conference dedicated to execution of the State Program on poverty reduction and socio-economic development held in Baku, capital of the Republic of Azerbaijan, May 12, 2005. H.E. Mr. Ilham Aliyev, President of the Republic of Azerbaijan took part in that conference and made an important speech. The full text of the speech is attached to the press-release.

During the conference "Joint Declaration on Preparing a Long-term Poverty Reduction and Sustainable Development Strategy to Acheive the MDG's in Azerbaijan by 2015" has been signed between the Government of the Republic of Azerbaijan and Asian Development Bank, European Bank for Reconstruction and Development, International Monetary Fund, United Nations Development Programme and the World Bank.

SPEECH OF THE PRESIDENT OF AZERBAIJAN ILHAM ALIYEV AT THE ANNUAL CONFERENCE DEDICATED TO EXECUTION OF THE STATE PROGRAM ON POVERTY REDUCTION AND SOCIO-ECONOMIC DEVELOPMENT

May 12, 2005

Dear ladies and gentlemen, Dear friends, As is known, in 2003, we have approved State Program on Poverty Reduction and Socio-Economic Development. Today, in this Conference, we shall analyze the done work and of course, the existent problems should be in focus.

The short documentary demonstrated here showed that great works have been done in the field of poverty reduction. However, we all know that there are still more people living in poverty condition. True, should we approach the question form the point of view of world scale, we shall see that approximately half of the world population lives in poverty. The same situation was in Azerbaijan when we adopted this program. As a result of the done works, the conducted reforms in Azerbaijan, number of the people living in poverty downsizes every year, and today is makes some 40 percent.

I have no doubt in the coming years this figure will come down notably. There is ground for this. Rate of growth of the Azerbaijan economy, the attention rendered to the social sphere prove that number of the population living in poverty level, will certainly come down. And finally, there should not be poor in Azerbaijan. It is the task of all of us. I count that we all should serve this goal.

I am very pleased that the structures engaged in this problem work hard. The government and entrepreneurs, the NGOs and international organizations, as well as global finance institutions - we all work together. This is our nationwide question, one of the greatest problems of Azerbaijan. Numerous programs, socio-economic, regional development programs adopted last years in Azerbaijan, just pursue this goal. The key goal of these programs is to improve welfare of the Azerbaijani people, achieve creation of strong economy in Azerbaijan.

Should we achieve this, the poverty level will of course be reduced in Azerbaijan. Today, Azerbaijan is increasing the rate of its economic growth. In the 1Q of 2005 these trends have even intensified, and the GDP has reached some 11%. The results of the last four months show industrial potential growth making up 15%. Over the last decade, our industrial growth rate has not exceeded 5-6%, but the figure has reached 15% just for four months of 2005. This means that all the economic showings indicate we are on the right path, the only one following which we could achieve all-round development of Azerbaijan.

Our economic policy has a variety of direction. Quite a lot have been said about that. I want to note once again however that we can reach our goal only by combining all these factors. The Government, for its part, is doing its best to improve business environment, intensify development of entrepreneurship in Azerbaijan.

As you know, the volume of Government's loans increases every year. This year the lax credit to the entrepreneurs will make up 200 billion manats. We can see the results of the loans provided to date. Much work has been done in the regions due to these funds. At the moment, up to $1 million loans can be offered. The Government is engaged in the entrepreneurs' other problems, as well. Our goal is to form a strong class of entrepreneurs in Azerbaijan. They play a key role in economic development of any country. Azerbaijan is also following this path. It has chosen the way of integration to the global community. The Azerbaijan economy is built on the market principles, and of course, much will depend on activities in this direction.

On the other hand, as you know, a half of the Azerbaijan's population are living in villages and working in agrarian sector. Positive trends can be observed in this sector, as well. I confident, thanks to the company Agrolising founded under the resolution we had adopted, the villagers will experience positive changes very soon. The Agrolising will assist in supplying peasants and farmers with new equipment that along with the lending funds will allow to achieve intensification of the agrarian sector's development.

Agriculture has a great potential. There is economic potential, which is certainly of a social significance as the final objective of the work being done is better living standards of the Azerbaijani people. To do so, we have well-thought concept, and the anti-poverty programs are part of the general concept.

I am glad the program on development of regions we adopted in February last year is being successfully implemented. Since then, over 200 thousand new jobs have been opened in Azerbaijan overwhelming majority of which are permanent. It is gratifying that the workplaces are opened in provinces, in non-oil sector. If we do not provide branching of our economy but build it on the oil sector only, we'll not achieve much success. Experience of the oil producing countries shows this is a wrong way. What we need is just to use the oil sector as effectively as possible, and we will do so to reach all-round economic growth I Azerbaijan for the generations to come not to depend on the oil factor.

Certainly, the poverty reduction requires modern infrastructure. We are taking important steps in this direction as well. International financial structures are assisting us in implementation of road projects; new roads are constructed, the work on creation of other infrastructure is in progress.

Electric power and gas supply is what people are concerned about most. I am sure the work done in this sphere will yield fruit very soon. Construction of two large electric power stations is about to start. This will provide additional 1000 MW power. But as you know it will take some time. That's why to solve the problem sooner there is a need to acquire small stations. Assembling such stations is envisaged this year in southern regions of Azerbaijan. In 2006, they will be constructed in all regions of Azerbaijan. I don't doubt this will dramatically increase electricity supply in Azerbaijan. This goal is that the oil-rich Azerbaijan never has energy problems. I am sure we'll reach this.

Future economic prospects of Azerbaijan are also very promising. According to the International Monetary Fund, in 2005 Azerbaijan will become the world's leading country in GDP growth rate. This is a great success. This is embodiment of the great work.

Poverty in Azerbaijan is aggravated by the hard aftermath of the Armenian aggression against our country. Over million of our fellow countrymen have become refugees and internally displaced because of the ethnic cleansing committed by the Armenian leadership. We are trying to improve their situation. As you know the primary payments from the State Oil Fund were spent exactly on improvement of social conditions of the refugees and IDPs. The process is going on today: new large settlement with modern infrastructure is being built in Aghdam region. I am devoted to the word I gave before the presidential elections, and repeat no a single tent camp will remain in Azerbaijan.

Recently I have charged the Government and the State Committee for Refugees and IDPs with being particularly engaged in the problems of refugees and IDPs having hard living conditions.

The spheres of education and healthcare are also in the focus of particular attention. As you know, the first years of Azerbaijan's independence were extremely hard. Our economy was completely destroyed, we were experiencing economic crisis. It was difficult to focus on social problems under such conditions because of lack of financial resources. Today, as Azerbaijan strengthens its economic potential, more and more attention is paid to the most important spheres of life. It is not accidental that in 2005 budget education and healthcare expenditures have increased by 25% and 44% respectively.

Although, it's of course high rate but I have to mention it's not satisfactory for us. However, the possibilities are so far limited to this. As the possibilities widen, more funds will be spent on these spheres. Investments to education and healthcare have not been made for years, for decades. That's why our schools, medical establishments do not meet due standards. The situation is like this not because of lack of enough attention is paid or indifferent attitude is shown to these spheres. Just there is lack of possibilities. I am sure much more investments will be made in these areas in Azerbaijan for them to meet international standards.

Environment protection is another extremely important issue. In particular, purification of oil-polluted lands, restoration of forestry should be implemented. A number of relevant resolutions have been adopted, executive orders issued and national parks created. In the past, no due attention used to be paid to environment problems. If you remember, when Azerbaijan was part of the Soviet Union, we didn't hear the world "ecology" at all. Today, we need to focus on this field for the young generation to be healthy and for the all-round development of Azerbaijan on the whole.

Finally, the issue of strengthening social protection is on the agenda. Today, the minimum wage in Azerbaijan is 125 thousand manats. Of course, this amount cannot provide the people with the normal standard of living. Looking back however we can see that a year and a half, this sum was 60 thousand manats. Both minimum and average wage should be higher. Where there is no production or it is badly organized, increase in wages is impossible. This is why we concentrate our efforts on development of our economy. On one hand government increases the amount of investments, loans help us, and on the other hand, entrepreneurs should also make their presence felt.

I believe the measures to be further taken to reduce poverty will allow us to see more gratifying picture at the next conference. Anyhow, the work done to date and to be done in the future allow us to say so. Reduction of poverty from 48 to 40 percent is very good showing in itself. But the task is also clear. Nobody should live in poverty in Azerbaijan. Hope all related parties - government, international organization, world financial structures, entrepreneurs and non-governmental organizations - we all will serve this purpose. I am sure that we will reach the goal. I wish all of us every success in this path.

Thank you.

Site Designed by Flexible Solutions