ASSA-IRADA,
11, February 2008

Azerbaijani President Ilham Aliyev has pointed to existing hurdles for entrepreneurial activity in the country.

"At times officials put forth baseless demands to entrepreneurs, and I am aware that such negative instances have yet to be fully eliminated," he told a conference on Monday dedicated to the four-year outcomes of the state program on socio-economic development of the regions.

The head of state instructed mayors and heads of relevant bodies attending the event not to impede the work of local businessmen.

"Entrepreneurs should operate transparently, while officials should provide suitable conditions for them," he said.

Aliyev emphasized that entrepreneurs were enjoying political support in the country.

The president went on to say that the Azerbaijani economy has been growing at an unprecedented rate in the past four years. The Gross Domestic Product (GDP) has doubled in this period. Per capita GDP has been on the rise as well - from $3,700 in 2007 to $4,500 predicted in 2008. Azerbaijan's currency reserves are rapidly increasing as well. The figure already amounts to $7.3 billion and is expected to at least double this year.

Aliyev said implementation of the state program has been successful. "98% of the work that was envisioned for five years under the program has been completed in just four years." He reminded that the key objective of the program was to eliminate unemployment in the country and to reduce poverty, saying the goal had already been accomplished. 650,000 jobs have been opened in the past four years, including 450,000 permanent positions. The poverty level has gone down from 49% to 16% in this period.

"I am pleased with the work done as part of the program," Aliyev said.

He noted that Azerbaijan was directing considerable revenues received from its oil to the development of other sectors. Moreover, a fair distribution of wealth from energy proceeds has been ensured.

"As a result of this, the process of division into classes inherent to some oil exporting countries is not going on here," the president said.

He noted that after the state program is completed, another five-year program reflecting all issues of concern for Azerbaijani citizens will be drafted.

Head of the World Bank office in Baku Gregori Yedzherchak told the conference that the bank was ready to take part in the execution of the next state program on socio-economic development of Azerbaijani regions. "We will submit our proposals concerning the new program to the government."

The WB has already contributed to financing the current program envisioned for 2004-2008.