THE YEAR OF INDUSTRY

The custom introduced a few years ago by President Ilham Aliyev of devoting the year to one of the spheres that is socially important to the country's population has fully justified itself. A tangible surge in development was observed in almost all  spheres of public life and the economy mentioned in the memorable year declared to honour youth, the child, the ecology, tourism, sport and information and communications technologies.

The head of state has declared 2014 to be a year of industry. Although extensive efforts have been undertaken to boost industry in Azerbaijan's economy, in the next few months we can definitely expect to witness the launching of major new projects that will markedly boost the dynamic growth of the country's GDP in the future. GDP is moreover, at 6 per cent, on a sufficiently high level at the present time. "If we take into account that GDP growth in most countries is 0.5 per cent, 1 per cent, and 1.5 per cent, this result looks even better.

It is particularly gratifying that our non-oil sector has grown by 9.8 per cent, Ilham Aliyev noted in his speech at the Cabinet of Ministers' sitting dedicated to the results of Azerbaijan's socio-economic development in 2013 and to the forthcoming tasks to be tackled in 2014.

But the past year will not just be remembered for the stable level of macro-economic development, but also for the historic events, the milestones attained, the opening of new enterprises and tourist complexes, the decisions affecting society and so forth.

Record and stable figures 

As Finance Minister Samir Sarifov remarked during the sitting, the successes in pursuing an economic policy aimed at diversifying the country's economy can be seen from the dynamics of the macro-economic figures for 2013. At the present time, serious programmes are being implemented to ensure the further development of the non-oil sector and these have been producing real results.

At the same time, the fact that the macro-economy has remained stable and there has thrice seen a growth in the population's cash incomes (by 8 per cent) above inflation (2.4 per cent), is a highly positive sign.

This has happened precisely in 2013 when the return of the money outstanding from the Soviet period has been completed. In what is a record time on the territory of the CIS [Commonwealth of Independent States, former Soviet republics - tr.) - 19 months - 597m manats have been returned simultaneously to approximately 1,623,000 savings accounts. "Azerbaijan's experience in repayment of these accounts in the form of compensation is a leading one in the CIS. We have paid this money back to the population at the highest possible rate," Ilham Aliyev noted.

Wages, pensions and benefits have also risen. The minimum wage has gone up 13 per cent, the core of workers' retirement pensions has risen by 17.6 per cent, and there has been a 10 to 67-per-cent rise in all forms of social benefits. In total, these decisions have benefited three million citizens, according to S. Sarifov.  

What is most important is that a record sum of 28bn dollars has been invested in the country's economy, of which 17.5bn dollars consisted of domestic investments. State capital investment has also reached its highest level of 7bn manats. In brief, the amount of money injected into the country's economy is impressive and would have caused a considerable rise in the consumer price index. Thanks to the experience accumulated in managing the economic policy over the last few years, inflation has been kept in single digits and sufficiently low. Against this backdrop the savings of the population in the banks have grown by 34 per cent. 

The country's currency reserves have reached a record high of 50bn dollars, which is 70 per cent of GDP, so that Azerbaijan ranks among the top countries world-wide in this index.

Finance Minister S. Sarifov has noted that, according to operational data, state budget incomes have surpassed estimates by 1.8 per cent, amounting to 19,495bn manats. Submissions by the non-oil sector have gone up 13 per cent compared with 2012, which is another plus for the financial contribution achieved by diversifying the economy.

In a nutshell, last year may definitely be regarded as a successful one for the economy. If we recall the large scale of events that have taken place over that time, ranging from the launching of Azerbaijan's first satellite at the start of the year, thereby joining the space club at the beginning of the year, to the signing of the "XXIst Century Contract", the investment agreement on the "Shah-Deniz-2" gas field, then we can also regard it as a historic one too. 

Continuing what we've started…

What are the main aims and tasks this year? President Ilham Aliyev noted that these are to maintain macro-economic stability and keep down inflation. "Implementing an investment programme, attracting foreign investments, ensuring macro-economic stability and maintaining it are all factors that provide for the successful development of our country," the president stressed.

Naturally, there will be continuing support for all parts of the economy, especially for private businesses and the subsidising of them on a concessionary basis. 

A third programme of socio-economic development for the country's regions will be adopted this year. The head of state noted that the previous two programmes had made it possible to achieve a serious breakthrough. "The regions have been invigorated and provided with good facilities, and a modern infrastructure has been created. An infrastructure of public premises is being constructed on a broad scale," he said. At the same time, the implementation of a new programme for upgrading Baku and the suburban settlements is to start this year, which is called upon to resolve all the problems being experienced by the villages around Baku. 

The emphasis on projects vital to the public will continue this year. At the present time only 55 per cent of the republic's entire population is provided with drinking water round-the-clock, and this, Ilham Aliyev stressed, is a very low figure, although the daily provision of water to the residents of the capital has been improved.

The sewerage system in Baku and the regions is not up to modern standards either. These problems will be dealt with in stages, since major investments are required to do this. 

"At the present time, 78 per cent of Baku's residents are supplied with drinking water round-the-clock. This is major progress. When we started these projects, the figure was less than 50 per cent. But in a fine city like Baku every resident should have water 24 hours per day. In Baku and all our towns and villages the population must be supplied with high-quality clean water corresponding to World Health Organisation standards," the president noted.

In this case, the installation of a modular water treatment systems in villages situated on river banks, which is being sponsored by the Ministry of Ecology and Natural Resources is greatly helping to bolster this effort. In future, when the necessity arises, the waters of the Caspian Sea may be desalinated for drinking. We can recall that last year the first pilot project was implemented to desalinate water from the Caspian for irrigation purposes. 

Incidentally, last year the implementation of two major projects aimed at improving the melioration of agricultural lands was completed; new areas of agricultural land have been sown with crops, and this is to continue this year. As a result, a 5-per-cent growth was achieved in agricultural output in 2013. However, the available potential and the demands for food security to be ensured point to the need to improve this figure. Nevertheless, Ilham Aliyev noted, that, as the demographic situation in Azerbaijan is a very positive one, we occupy first place in Europe with regard to this figure.  

…and the start of something new

As mentioned above, 2014 has been declared the year of industry and, in this connection, large-scale operations are to be rolled out to create new industrial sites, primarily in the non-oil sector of the economy. "Industrial parks, new industrial enterprises, the manufacturing of export goods, the setting up of refineries and major industrial complexes will all boost the further development of our country, further reduce our dependence on oil and gas and determine the stable development of the country's economy," President Ilham Aliyev stressed.

There will primarily be an emphasis on industrial parks, the first outcome of which is the operation of the Sumgait industrial park; a new chemical industry and technology park is to open soon, and the Balaxani and Mingacevir industrial parks are under construction. It is also planned to focus on the metallurgical industry, which has major development prospects, and, in this connection, the construction of a state-of-the art metal combine may be regarded as desirable. 

Along with this, our attention is drawn by the fact that, besides defining the targets aimed at boosting the country's industrial potential, President Ilham Aliyev particularly dwelt on the damage being done to the environment by industrial activity. He gave instructions for rigorous checks to be made on enterprises polluting the atmosphere and for a list of them to be drawn up. The bottom line here is that the owners of these enterprises, no matter whether they are state or private structures, should either install the requisite purification equipment or the enterprises will have to be closed down. The fact is, Ilham Aliyev noted, that the system of levying fines is not working in this case, since the process of getting them is extremely complicated. And at the moment the amount of the penalties is not sufficiently large to deter enterprises from their polluting activity. "Therefore, either purification equipment has to be installed or the enterprise will be closed down, without any hesitation whatsoever. I think that this will be a major boost to improving the environment," the head of state stressed. 

Besides this, he set the task of upgrading the existing petroleum refineries and building a new complex in Qaradag district of Baku. 

"According to the information that has been given me, the main factor (the polluted atmosphere) is caused by cars. Last year more than 100,000 cars were imported into Azerbaijan. Therefore we have gradually stopped imports of cars which do not meet environmental standards or technical requirements.

I think that this year the Ministry of Ecology and Natural Resources, other associated structures and the Cabinet of Ministers as a whole need to examine this issue again. We must not allow cars to be imported into Azerbaijan that pollute the environment," the president noted, adding that on the whole the transfer to "Euro-3", "Euro-4" and "Euro-5" [car emissions] standards needed to be speeded up. 

It is most likely that these policies will be reflected in the State Programme for the Development of Industry in 2015-2020; the president has charged the Cabinet of Ministers with drawing up this programme based on his instructions that 2014 should be declared a Year of Industry in Azerbaijan.

So, the development of strategically important spheres of the country's economy should be pursued, while tackling the important problems affecting the public. For, as the head of state has repeatedly stressed, the state's policy is being carried out solely for the sake of the people, in the interests of the country's citizens. This is the only way that we can talk about comprehensive progress.

AT FIRST HAND

"Our economy continued to develop in 2013. GDP increased by almost 6 per cent, which is a very high figure. If we take into account the fact that today the GDP in most countries only grows by 0.5 per cent, 1 per cent or 1.5 per cent, then when  GDP increases by approximately 6 per cent, that is a great result. It is particularly satisfying that our non-oil sector has grown by 9.8 per cent, a result which has been achieved over the last few years of reform."

Ilham ALIYEV, President of Azerbaijan