| Speech of the UN Resident Coordinator, UNDP Resident Representative Mr. Marco Borsotti
Mr. President,
Using the opportunity, I want to bring to your attention several questions, which I think are important for the future of the Regional Development Programme. Previous speakers have already clearly indicated the goal of the programme and the present progress made. I am invited here to speak on behalf of the international community. I think it would be interesting for all present to hear our thoughts on how we see the future.
I believe there are three fundamental directions that are making up the strategy of regional development. These are the continuation of the decentralization process, the creation of conditions for diversification of the economy and the improvement of the management of the programme to bring it closer to the areas and people where this programme is being implemented.
I should also mention that the creation of the modern market economy in Azerbaijan as an instrument for economic activity rejects central planning. Obviously the regional development programme is not like the plans that most of you faced during the Soviet period. This is a plan that reflects the economic framework, its general laws, that are to be implemented. Thus a regional development plan should be considered as part of the country's development plan. In this case Azerbaijan could be an example of how a regional development programme is clearly defined within the State Programme for Poverty Reduction and Economic Development. This plan aims to create the basis for a stable macro-economic environment in Azerbaijan.
It is very encouraging that the target groups for this initiative are the most vulnerable layers of population: women, the elderly, orphans, minority groups and IDPs. One of the main reasons of the high level of poverty in the country is unsatisfactory functioning of certain fields of economy. The necessity for diversification of the economy of Azerbaijan and its expansion beyond oil production is indisputable. This would create opportunity for job creation for many people. The issue was raised as one of the main ones in the Presidential election campaign a year and a half ago.
I would also like to share my views regarding impressive successes reached in pension system reforms area as well as in the new model employment strategy.
You have pointed out success and progress in area of education and I totally agree with your opinion. At the same time I would like to note the importance of wider reforms in this sector as well as in the public health sector. Furthermore I would like to mention the necessity of reforming the social sector, the fiscal system, the conditions for the development of economy and public administration.
No doubt there is a necessity to revitalize the industrial sector of the economy. Yesterday I participated in a presentation of a "Study of Azerbaijan's Current and Potential Comparative Advantage" Report. This research was conducted by the Centre of Economic Reforms under the Ministry of Economic Development. It is not surprising that for the time being Azerbaijan possesses considerable advantage in oil production and agriculture. These fields are very important and obviously contribute a lot to the economic development. But this is not enough. I would like to suggest some other fields that could be useful for regional development.
Speakers before me called tourism an "area with a bigger potential of development". They also mentioned the necessity of investment in infrastructure. I would like to suggest investment in information technologies. Reform carried out in this area gives hope. We believe that this sector can bring important contributions to the economy.
One of the main issue on the agenda is the creation of a proper banking system in Azerbaijan. Small and middle-sized enterprises are in need of an effective banking system in the country. At the same time, the economy should be more transparent. Creating conditions for monopoly will hardly help in the future development of the country. And also we should be resolute in combating corruption and illegal interference of government officials.
Mr. President, I have to say, that your extremely serious speech was very positively taken by the people present and by us. We will take it into account. I would like to finish my speech by mentioning that issues included in the global agenda for this year are very important. As you know, this started recently and calls for reaching Millennium Development Goals at the global level.
Using the opportunity I would like to inspire Azerbaijan to integrate into the global economy and hope this will be reached in the framework of the strategy for development of regions and in the upcoming work.
Thank you for your attention.
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