Annual conference on execution "Poverty Reduction and Economic Development Program" held in Baku

The head of the state Ilham Aliyev, ministers, deputies, representatives of the international organizations, representatives of the embassies of the foreign countries in out country participated in the conference.

The 10-minutes film devoted to the execution of the "Poverty Reduction and Economic Development Program" was displayed at the beginning of the conference. After the film was demonstrated, President Ilham Aliyev made a comprehensive speech about the works being conducted in the direction of reducing poverty level, the obtained results and intended plans. He mentioned that the "Poverty Reduction and Economic Development Program" was accepted in 2003 and also said that the works realized since that period, would be analyzed and the existing problems would be discussed in the conference.

"A lot of works have been carried out in direction of decreasing the poverty level since that period. At the same time, there are still many people in Azerbaijan living under the poverty conditions. At present approximately half of the world's population is living under the poverty conditions. When the program which results we are discussing now was accepted, half of the population lived under the poverty conditions. As a result of the economic reforms conducted in Azerbaijan the number of the people living under the poverty conditions is decreasing from year to year. The poverty limit is 40 % in the country today. The development speed of Azerbaijan and the attention paid to the social field shows that the number of the people living in poverty limit will fall sharply in Azerbaijan recently. There must not be a poor man in Azerbaijan". The president informed that the gross domestic product formed 11 % in the first term of the 2005 year. "According to the results of the 4 months, the growth of the industrial potential was 15 %. In the indecency period such a high speed of the industrial growth never registered in Azerbaijan. All these economic indicators show the correctness of the chosen path".

Ilham Aliyev informed that 200 milliard dollars were allocated for distributing the preferential credits to the owners that year. "Due to the distributed preferential credits a lot of works have been already realized in the regions. We decided to raise the amount of the non-installment credits distributed to the owners up to 1 million dollars. There are positive development indicators in the development of the agrarian sector as well. The people living in the villages will feel these changes recently due to the action of the newly formed "Agroleazing" company. New mechanisms brought by the "Agroleazing" company will be given to the farmers and villagers".

The president stressed that as a result of the conducted works more than 200.000 job places had been opened recently. "Most of the newly opened workplaces are permanent. It is very gratifying case that these job places is opened in the regions and in the non-oil sector. If we want to develop our economy, then we must also develop the non-oil sector".

The state head informed that serious measures are being realized in direction of eliminating the energy supply problems in the country. "Building of two big electric stations began in Azerbaijan. Working of these stations will give us additional electric energy at the power of 1.000 megawatts. However, building these stations takes too much time. To solve this problem urgent measure should be realized in this direction and the electrical stations of less power must be bought. It is already intended to build such stations in the northern region of Azerbaijan. In 2006 such stations will be constructed in all regions of Azerbaijan and I am sure that keen problem in the electric energy supply of Azerbaijan will not occur. Our main objective is to eliminate all energetic problems in Azerbaijan rich with oil".

The president also stated that the war factor also affected the growth of the poverty level. "We are carrying out works in order to eliminate the bitter results of the war. At present a new refugee camp is being constructed for the refugees in the territory of Aghdam region, we intend to form a modern infrastructure there. It must be noted that the first repayments from the State Oil Fund were directed to improve the living conditions of the refugees and the Internally Displaced Persons. I am loyal to my promise given in the eve of the president elections and inform that even one refugee campus will not remain in Azerbaijan. I ordered the government and State Committee on Work with Refugees and Internally Displaced Persons to tackle with the problems of the refugees living in the city closely. Most of the refugees settled in the hostels, we also intend to repair these hostels".

The president informing that the attention to the education and health fields grew also said that the expenses allocated for the education system were increased 25 %, and the expenses allocated the health system were increased 44 %.

He informed that realizing for decreasing the poverty level increasing of the minimum salary twice more than for 2003 year can be treated as a result of the works realizing for reducing the poverty level. President stressed that the minimum salary will be raised again. He valued passing of middle monthly salary over 500.000 manats as a high indicator of the economic development. Ilham Aliyev valuing positively the fall of the poverty limit from 49 % to 40 % during the short period noted that implementing works in that direction would continue.

Then the Minister of Economic development Farkhad Aliyev informed the conference participants about the works being conducted in connection with the execution of the "Poverty Reduction and Economic Development Program".

During the conference a joint declaration was signed between the Azerbaijan government and the World Bank, International Monetary Fund, Asian Development Bank, European Reconstruction and Development Bank for the purpose of preparing the durable development program for 2006-2015 years. Then the conference continued its work on economic and social sections.