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casts. We know what benefi t Azerbaij an will get from the oil. Taking into ac-
count this, we established our Oil Fund a few years ago. This structure is well 
known with its transparency. International auditors control it. The Oil Fund is 
managed according to the recommendations and advice of the International 
Monetary Fund. Azerbaij an has become one of the fi rst countries to join the 
initiative of the prime minister of Great Britain on transparency in extractive 
industry. Necessary measure are taken to achieve full transparency in the oil 
and gas incomes in Azerbaij an. In a word, we do not see any serious problems 
facing our country. We must activate the regional cooperation. I am confi dent 
that upon the completion of the energy and transport projects, the world will 
become safer. Security and cooperation will increase and expand in the re-
gion.
The region needs safety. Unfortunately, the processes taking place in the 
Southern Caucasus, in particular, the aggressive separatism, events taking 
place in our countries - Georgia and Azerbaij an, threaten the regional coopera-
tion and security. Azerbaij an is a country which suff ered from the aggression 
of Armenia. As a result of this aggression, 20% of the Azerbaij ani territories 
have been occupied by the armed forces of Armenia and we have over one mil-
lion refugees and IDPs.
This is the biggest number of refugees and IDPs in comparison with the 
number of population in the world, one million out of eight million are refu-
gees and IDPs.
Unfortunately, the international community pay too much att ention to this 
issue. The aggressive separatism, breach of the norms of international law, vio-
lation of the territorial integrity are the actions which must be accused by the 
international community. And accusation isn't suffi
  cient. We must apply sanc-
tions, take some practical steps in order to put an end to the aggression.
Nowadays there are illegal zones in our territories, in the Southern Cauca-
sus. One of them is the Nagorno-Karabakh. There are also illegal territories in 
Georgia. There is not any kind of international control, international monitor-
ing, there is not any law in these lands. How can we live as neighbors close to 
such a danger? Everybody is aware of the potentials of threat in the uncon-
trolled territories. This is a very favourable territory for the criminal elements, 
and I think that in conditions when the international community has united in 
the fi ght against the terrorism, we should increase our att ention to such uncon-
trolled territories. Terrorism might have strongholds in such territories. Azer-
baij an will never reconcile with the loss of its territories. We want to achieve it 
peacefully, but unfortunately, not any serious success has been achieved yet.
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Nowadays the economic situation in Azerbaij an can't be compared with that 
in Armenia. The current economic strength of Azerbaij an exceeds that of Arme-
nia three-four times. The diff erence will be 10 times higher in the next couple of 
years. Of course, by using all our opportunities, resources, in the end, we shall 
release our territories. We do not need the territories of anyone. However, the 
Nagorno-Karabakh and seven adjacent districts in this territory are the lands 
of Azerbaij an. This is an integral part of Azerbaij an and should be returned to 
Azerbaij an.
I am confi dent that international organizations directly involved in this issue 
will double their eff orts for its sett lement. We want not only OSCE, but also the 
European Union, Council of Europe, other international organizations play an 
active role in the solution of this issue. Of course, The Minsk Group of OSCE 
has a mandate for the sett lement of the issue, and we approach it with respect. 
However, I think that it is high time for the international community to play an 
active role in the solution of this confl ict.
I am confi dent that Azerbaij an has a wonderful future. As I have already 
mentioned, we have regional cooperation at high level. We have wonderful re-
lations with all our neighbors. There is a wonderful economic potential for the 
economic growth. We are solving our social problems. Peace is required not 
only for us, but for the whole world. Azerbaij an has made its contribution to 
the establishment of peace in the whole world. We made some eff orts to bring 
peace to our region and our policy remains unchanged. I would like to assure 
you that the policy pursued by us, in particular, the policy of integration into 
the European, Euroatlantic structures, will be continued. Our country will con-
tinue contributing to the European cause. Thank you very much."
Bruce Jackson: Aft er speeches of the orators we have nearly 22-23 minutes 
for the questions and answers. Please introduce yourself prior to asking a ques-
tion. 
Question:  Michael McFall from Stanford University. I have a question to 
President Aliyev. I am teaching democratization in Stanford University. I am 
trying to explain to all the students that the term "transition to democracy" is 
wrong. Democracy in all the countries requires an ongoing, progressing work. 
If I speak about America, I name several topics, or problems, aft er their real-
ization level of democracy in America will rise. Can you name the questions 
related to your country?
Ilham Aliyev: Democratization for the whole community is a process. It is 
a process which never ends. Each country lives in its own conditions. In some 
cases these conditions and environment do not depend on the desires and strat-
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