Ilqar Mamedov: "Azerbaijan does not need cheap labor of foreigners. It should be forced out of the country and business should be freed"

- How do you explain the fact that official Tehran has called back its financial assets in the amount of about $75 bln from Europe and isn't it a proof that Iran is preparing for the Iraq script for itself?

- The information has not been confirmed. Initially, Iranian officials rebutted the information and then it was revealed that in the fourth quarter of 2007 Russian customers withdrew record $55 bln from the accounts in the European banks. It can possibly mean similar movement was observed among Iranian capitals, but it was caused by the real estate crisis in the United States, which also affected the European financial markets.

- You have recently returned from the United States. Therefore, it would be timely to ask: how do the United States assess possible military operations against Iran?

- Everyone is busy with the United States. Last year the people only compared the announcements of Obama and McCain's spouses about patriotism. The last question to ask to people was whether they want war. As for opinions of those, who define US policy towards Iran, it was only connected with economic issues, important for our country, during my stay in New York.

- By the way, let's touch upon it. It is obvious now that inflow of oil revenues to the country is growing, the country is becoming richer. Can it be said that Azerbaijan uses these revenues rationally?

- Unfortunately, no. Last year I made a desparate step by offering to create a Public Council, at least under the President.

It would discuss and informally confirm both the concept of oil revenues utilization and definite projects. In this role, it would replace the parliament, which, like any separate branch of our state power, does not have political or other qualities to manage such task of historical concern. The authorities, like the majority of citizens, thinks erroneously that the key factor in oil revenues management should be justice. Meanwhile, everyone have different understanding of justice. It is different and depends on whether a man is an official or a deputy or a minister or an ordinary citizens. I think "justice as a category should be excluded from the treatment of the problem. The main criteria should be the rationality of any decision considering interests of the country's long-term development. In particular, investment projects should aim at changing human capital and but noy on non-obsolescent buildings and facilities. It astonishesme that the fate of the air conditioners' plant also built owiong to oil boom of the 1970s has not become a lesson for us.

- Well, it seems like a theoretic basis. What happens in the practice?

- Any investment project should be discussed transparently with the public representatives from among professional economists, sociologists, political scientists and others, who have no personal economic interests in these enterprises.

Today we wake up every day and hear that another multi-million project has been adopted. The society is filled with rumors that all projects are built on backwashes, flowing to some pockets. Even if these rumors are wrong, along with practical results of current policy, they undermine democratic grounds of the political system, which are shaky anyway, and lead to strongest social upheaval.

- You speak about social upheavals, but we live in conditions of a dead calm. How can "wrong" strategy in oil profits management undermine stability?

- For example, authorities refuse to liberate business climate and on the other side monetary inflows to the economy cause price hike. But prices on labor forces are also rising. This is an economic rule. Then authorities do not find anything else, except for starting to prepare public opinion to inflow of cheap foreign work force. We have already received first official statements of the kind. Instead of lowering prices by establishing competition, monopolists want to buy cheap labor forces and sell their goods for high prices.

I am sure that Azerbaijan does not need cheap labor force. It should be forced out of the country and business should be freed. Or, take inflation. Initially the National Bank rejected that inflation is caused by mass expenses of the government. Now it can not conceal it. All are ready for the 30% inflation this year and this is not the top. No one can manage the economic laws. Such inflation, added to other destabilizing factors, will bring the boiling point in the Azerbaijani society closer.

By the way, if budget is raised by over 10 times through 5 years, 30% inflation is an indirect proof of misappropriation and export of most part of funds of investment projects by definite officials. If money have stayed in the country, inflation would be even higher.

- Have you raised this issue in New York at regular meetings of Revenue Watch-an organization, observing profits of the countries, rich in natural resources?

- As a member of the consultative council, I spoke on some of these issues. Yet, it seems to me that we should settle these problems personally. Revenue Watch is a wonderful organization, which is successfully fulfilling its role on the global level. Bur global relations mean a kind of clumsiness. Until anyone in the world notices fundamental mistakes of our strategy of oil reserves utilization, time will come when we will have nothing to utilize. International organizations are satisfied with Azerbaijan's execution of the extractive industries transparency initiative.But it is more necessary for oil companies to defend their reputation, while the expense list of the issue does not attract the companies' interest. This is an issue of Azerbaijani people's reputation and we should make efforts for it.

/Day.Az/