"Dear ladies and gentlemen,

Dear participants of the Conference,

It was exactly one year ago, on February 11, 2004, the "State Program of Social and Economic Development of Regions of the Azerbaijan Republic" has been accepted. Today, we shall sum up and analyze the work done during this year, and we shall consider available problems. All the work done for this year in the regions will be analyzed.

Work of the Conference will consist that after the sessions will be discussed various questions in sections. I should also note that for participation in the Conference, we have called heads of the local authorities, and today they are present here. At the same time, the businessmen are present here. Thus, I believe, results of the done work will be brought, and also free, open exchange of views on the forthcoming work be carried out.

On the whole, 2004 was successful for Azerbaijan. The tasks the country faces in all areas, have found their solution. Azerbaijan successfully develops in all directions, and the short video-film shown today here testifies that our economic parameters are at very high level. At the same time, our country freely carried out the policy in all other spheres, has achieved solution of the put questions. It is available successes in the field of foreign policy, solution of social questions, improvements of living condition of our citizens and, certainly, in the field of economic development. I would not want to repeat here the figure. They have already sounded, and the growth observed in 2004 is very high.

Today our primary goal consists in construction of work within the framework of the established program, in particular, in active work in the field of opening in regions of new workplaces, creations of new infrastructure.

As you know, one year ago we faced very difficult task and at the same time honorable task - creation in all regions of Azerbaijan of the new infrastructure, new workplaces, say, reduction of differences between regions and the capital. I think, that the done work allows speaking that we could achieve the target. In 2004, positive tendencies in our economy have even more amplified, that has allowed us to open about 170 thousand new workplaces, 90 thousand of which are permanent.

As a whole, the economy of Azerbaijan last ten years moves ahead with big steps, and develops in high rates. If to pay attention to the statistical data, it is possible to be convinced of quick growth of GDP, other important economic parameters. Strengthening, continuation of positive tendencies is the major task we face. Not secret, that in a basis of all our economic successes is the policy of economic reforms started in 1995 by the nationwide leader of our people Heydar Aliyev. Reforms have brought nice results in various areas, and today we continue them.

The life does not stop, and there are new tasks before us. We should solve and we shall solve all these tasks. For this purpose, there are all opportunities. The Government of Azerbaijan has an economic strategy, program, and management, will and support of people. At presence of all these factors any question can find its solution.

I think that 2005, as a whole, becomes extremely important and significant for development of Azerbaijan. In 2005, the Baku-Tbilisi-Ceyhan oil pipeline making a basis of oil strategy of Heydar Aliyev will be put into operation. This, as a whole, renders very serious influence on economic, political and on all other questions in region. Successful continuation of construction of the BTC MEP was one of the major tasks we faced. It is very glad, that the management of Azerbaijan together with the next states, foreign investors has adequately coped with the task, and the project is successfully executed.

In 2005, it is necessary to undertake extremely important steps in the field of development of our economy. It is necessary to continue execution of the program of regional development, should find their solution other programs. Higher growth will carry out the infrastructure projects. As you know, all factors are necessary for all-round, dynamical development of Azerbaijan. First of all, the infrastructure should develop. In this sense, the work done in 2005 will allow us to achieve development of infrastructure. It is necessary to lay roads, begin construction of new power stations, should find their solution other infrastructure projects.

Thus, it will be possible to achieve all-around development of Azerbaijan. At the same time, in 2005, the volume of aid to entrepreneurship will increase. If in 2004 by means of National Fund for Entrepreneurship Assistance, the credit has been allocated at the rate of 100 billion manat, in 2005, this amount will be doubled and reach 200 billion manat. And it is not the limit - today before coming here, in this hall, I have familiarized with the exhibition and was once again convinced that due to credits, huge work has been done.

Production presented at the exhibition has been produced due to the enterprises created or constructed due to credits, given only for last year, to open workplaces. In 2005, we shall double increase of volume of assistance to entrepreneurship and, certainly, we shall wait for higher result.

The decisions adopted in the field of agriculture, will allow achieving that our farmers could work even more effectively. Creation of "Agro-leasing" Company proves that this sector also is paid big attention. In 2005-2006, by means of "Agro-leasing", will be purchased agricultural machines for amount of 250 billion manat. As you know, it is one of the major questions for development of agriculture. Shortage, deterioration of techniques or its failure condition creates big difficulties. Purchase of new technical equipment and granting to farmers as the credit, certainly, will lead to significant revival in agriculture.

In a word, on the one hand, the state solves and will solve the tasks assigned to it, and the businessmen in private sector solve the tasks assigned to them. I want to note today, that activity of businessmen is a huge contribution to development of Azerbaijan. Not secret, that free business successfully develops only in those countries where the state shows attention and care for businessmen, for the class of businessmen. I think all businessmen feel this care.

Evident confirmation to that are numerous meetings, which I have carried out with entrepreneurs lately. And not only meetings, open support of entrepreneurship, I think, as they say, ease their work. Though there is a lot of problems, various bodies still carry out inappropriate checks, interventions in work of businessmen continues, that very much disturbs me. I repeatedly openly declared, that this should be put an end. In particular, local authorities should not hamper to entrepreneurs. On the contrary, they should help them. The President helps, it means, representatives of the President on places also should carry out this policy. Unfortunately, in some places the attention to the given question still is not up to the mark. We, certainly, shall arrange. As a whole, administrative measures are undertaken. People not capable adequately to carry out the duties, certainly, will say goodbye to their posts. If we shall face such position and in the further, that, undoubtedly, we shall take strict measures.

Successful work of entrepreneurs is our general success. In this direction, on this way, there is development of Azerbaijan and we have other way. Azerbaijan is devoted to market economy. Principles of market economy start up deep enough roots in Azerbaijan, experience of the advanced countries show that there is no other way of development. We have also seen other ways. We lived at other system and were convinced that it does not have future and there was no prospect. Therefore, the increase in share of business, in private sector in the GDP almost up to 74-75 percent and it is very pleasant. If to take into account, that the basic direction, the basic branch of our economy is the oil sector being state-owned, then, not including it, the share of private sector, as a matter of fact, makes, probably, about 80-90 percent.

I think that in 2005, in 2006, as a whole, till 2008, within the framework of execution of the State Program of Social and Economic Development of Regions, we shall solve all questions we face. I think, that 2004 serves in this sense as a good example. It testifies that we do not put before ourselves impracticable plans. We never intended and we do not begin to deceive the people with populist promises. One of the major questions for development of each country consists in a high level of trust between authority and people. It is very important question. We have gained this trust, we feel it and, certainly, we do not want to lose it. To not lose this trust, it is necessary to work well and adequately. We should fulfill all given promises, successfully execute the programs put forward.

In 2004, we had programs in various spheres. All questions put forward in the field of foreign policy, have found their solution. I do not want to speak for a long time about it and all is available. Have found their reflection in life all the promises given in humanitarian sphere. I always declared that despite of our adherence to the principle of market economy and development of Azerbaijan in this direction, at the same time, constant attention will be given to social questions. Programs of social orientation constantly are in the center of attention, and confirmation to that are numerous increases in the minimal wages, pensions, and other social benefits.

Certainly, all measures taken in the field of development of regions followed one purpose: all questions stipulated in 2004, should find their solution. Certainly, there were both difficulties, and problems, and lacks. It is natural. In life, all is possible. But as a whole, analyzing 2004, we see that all questions we face have found their solution.

I think, that today's conference becomes a remarkable contribution to our further activity. Here, are present the heads of local authorities, businessmen, government officials, heads of departments, ministries directly engaged in economic development. I think, it is necessary to have completely open, free and fruitful discussion.

On this, I finish my opening address and I want that we went to the agenda.

• Speech of the UN Resident Coordinator, UNDP Resident Representative