 There are a lot of ways that we could dive into this discussion of Eurasia, but I think that we have to talk about geopolitics And I want to set it up this way. You know there was a time with apologies to The the leaders on the stage here when the rest of the world may have considered Central Asia to be something of a of a backwater now that was never true of course But the fact of this that whatever people used to think today Nobody not even ignorant Westerners like I Like me are able to think that because the great game is back and it's come to To Central Asia the country's represented on this panel as they're by John Georgia Kazakhstan stand at the very heart of this Contest to the north of the region Russia is becoming ever more assertive to the east China has suddenly become a huge and very interested player pouring in huge resources and very interested in Extractive deals to the south Turkey and Iran have become much more assertive both on their own and in cooperation With Russia the war in Syria and the endgame of the campaign against the Islamic State is sending shockwaves Throughout the entire region and then there's the west of course Where the EU and the United States remain key players? Foreign in Eurasia and a tract of lure to some countries in the region a frustrating disappointment I think to others and an outright threat to still others now the good news for us is that we have Four outstanding panelists who are perfectly placed to help us sort through all these questions So let me quickly introduce them and then I'll ask some questions myself, and then hopefully I can get questions from the audience I'm seated to my immediate left is President Aliyev president of the Republic of Azerbaijan since 2003 We have to my right Prime Minister Kivir Kashfili of Georgia To his right is Erbil at the side of I hope I pronounced that right Fine Deputy Prime Minister of the Republic of Kazakhstan and then Johnny Charlier who is group CEO of Vian Which is one of the world's biggest telecom firms? With the sixth largest mobile phone network on the planet, and he told me just before we started 50 million subscribers in the Eurasian region, and if I'm right you also happen to have an MBA from the Wharton School of Business Something that you share with the man who will be speaking here on Friday Well-informed So my first question is going to be an obvious one for the politicians on the panel and that is As as relatively small states caught between these powerful giants Which I've just mentioned all of whom want something from you. How do you balance them without provoking them? many years ago Canada's then Prime Minister Pierre Trudeau the father the current Prime Minister said about living next to the United States that Such proximity to superpower is like sleeping with an elephant No matter how friendly and even tempered the beast is you're affected by every twitch and every grunt And if you're not careful, they may roll right over you without even noticing So President Ali have let me start with you Tell us what's your outlook for Eurasia for the year ahead? And how will Azerbaijan navigate this very tense and now quite dangerous neighborhood? Well neighborhood of course can be a problem and can be an advantage it depends on your policy and our relations with the neighbors I think for every country relations with the neighbors should be a priority especially in our region In Azerbaijan we do not have internal risks and threats Therefore we must also Guarantee security on our borders and the best way is to establish Very pragmatic and very sincere relations with your neighbors based on your national interests and Based on the understanding of the national interests of your neighbors. I Think that in Azerbaijan we managed to establish such a partnership and with all our neighbors except Armenia which continues to occupy almost 20 percent of our territories Azerbaijan has very good relations With the neighbors across the Caspian with Kazakhstan Turkmenistan with Georgia Turkey Iran and Russia and with every country of our neighborhood. We have a very special format of cooperation Our independence is young only 26 years of Independence but I think Azerbaijan managed to establish itself as a truly independent country Which can afford to conduct independent foreign policy Policy which is based on our national interest and which is not against Interest of our neighbors, so I think for a country which is smaller than most of its Neighbors important is to find this proper balance and to Get advantage of the neighborhood because big neighbors means big markets and for us The best market is the market of our neighbors therefore mutual Interests balance of interests of course non interference into internal affairs of each other's and Very pragmatic practical approach on cooperation in the neighborhood. I think one of the reasons for success of our country one of the reasons of internal stability and good prospects for the future Prime Minister, it's been ten years now since Georgia's war with Russia Tell us a bit about what relations with Moscow are like today and how you balance those with Georgia's Very long-stated desire for deeper integration with the West Thank you Unfortunately, we have a legacy of 2008 and we still have to address the issues Inherited by Georgia not only from 2008, but from the beginning of 90s occupation of two of our Historic territories is a big problem and of course We have to deal with this issue With a constructive approach, but also with a principled approach which means that Taking into account the consistent policy of Georgia's European and Euro-Atlantic integration and The policy which is based on certain values We still need to look for zones or areas with Russia Which can serve as a base point in the future to start positive discussions about Political resolution of the conflict and can you give us some examples of what those those areas can be the trade tourism and of course humanitarian and cultural relations Today we have the Russian market is open for Georgia Although it's not the only market for Georgia or dominant market Georgia as our exports have been diversified But still it's very positive that we have around one million visitors from Russia every year we have unilaterally visa-free regime for Russian citizens and There is no a single Conflict on the ethnical basis with Russian tourists So which can be a very good starting point for starting political discussions about the Resolution of the conflict, but on the other side The Russia should take also into account that they should not look for a Georgian government Which will get used to the so-called reality as they like to say of the new newly independent States on our own territory So our discussions should be based on the respect of the territorial integrity Which should be a cornerstone for every discussion in our region And also based on the sovereign aspirations of Georgia. You asked what is Georgia's policy To address the challenges in our region And I can I can answer as president Ali have said Of course, neighborly relations with our neighbors is very important We have important regional projects with Azerbaijan with Turkey with Kazakhstan With other countries in the region. We have strategic relations with Azerbaijan and Turkey We have very good Neighborly traditional relations with Armenia and we have very important relations with central Asian countries And we have a vice prime minister of Kazakhstan and all the silk road and all the new projects Bringing new dynamics in our region Of course, it cannot be without Very close cooperation in the region, which can be a very good prerequisite for a sustainable peace What is stability for Georgia? Stability for Georgia is positioning a country where we are It's about values and for georgia. We set european integration and european integration As the strategic priority And step by step, we are transforming our country into a truly european democracy and country, which is Unique in terms of openness. It's trade It's free trade regimes with european union and with china simultaneously with all the neighbor countries Including with russia And of course, it's internal structural reforms deep structural reforms Which make georgia a truly democratic state This is our article five. We don't have NATO protection But partnership with the west and good neighborly relations and fighting constant Search for zones of common interests Is the formula for stability in our region now, we all know of course what happened to ukraine when it's Negotiations with europe proceeded a little more quickly than the russians would have liked I'm sure that's at the front of your mind now as you conduct Talks with brussels and and and your european partners. How do you manage that threat? Well, there are threats all over but With european union We have a very good dynamics in terms of Bringing our country standards democracy standards closer to european standards ukraine unfortunately has been challenged by russia And the territorial integrity integrity is violated. We are very supportive to ukraine's territorial integrity And again, as I said territorial integrity should be a cornerstone Of discussions in regional conflicts. This is a principle that should not be questioned Otherwise, we will come up with a We will end up with a mess not only regionally, but Also globally, I think while that's a fine aspiration It was precisely because ukraine was on the verge of signing a an association deal with with europe that The russians decided to move in So as you try to move closer to the west are there things that you can do to prevent the russians from getting to Too anxious, you know, it's uh, this is uh about Daily issues in georgia how we face threats from russia and the same is in ukraine, although Um, it may look different, but the formula is the same I would like to say that We are trying to show to our northern neighbor russia That the policy of georgia to become part of the Western community is not against anybody. It's not against our neighbors, including it's not against our russia russia should be genuinely interested to have a stable southern neighbor and of course We need to look for platforms Which can be positive where we can find common interests where we can start positive discussions about Political resolution of the problems we have inherited have the russians ever articulated what their red lines are Well, they uh, we we hear from time to time statements about georgia's NATO aspirations But this is a sovereign decision of georgian people and again, it is not against anybody in our region Prime minister deputy prime minister, um, kazakhstan is extremely good at maintaining close ties with russia But not just with russia And as some of our other panelists will attest to Moscow is not always the easiest of partners to do business with in fact. It can be very challenging um, and yet, um, you do such a good job of Keeping russia happy while also working with china while also working with the west How optimistic are you that you can maintain this balancing act? uh As mentioned before here, uh, kazakhstan has two the biggest neighbors From one side we have the longest border in the world of russia And we have this second one elephant as you mentioned before it says china and um all this uh our independent history last over the 25 years Our president, uh, son of the wife is providing external internal policy, which brought us the main value stability As you know, we have very good relations with russia and Over the two decades before My president hasn't initiated this to establishing the economic union and already we have We have no more In custom barriers We have this free floating of the working force for capital and everything and exactly We are looking to russian market much more biggest in ours As you know the population of kazakhstan just 80 million people And so we're looking around this on to now neighbors markets. It's i'm talking about central asia. I'm talking about russia it's a western part of the china And um, I guess russian economic union are in the beginning, but we see some benefits from there same time we'll have very Intensive negotiation of our economic partners and I hope We're doing well And if you're asking me about the perspectives for our cooperation It's looking good because Uh, statistics are showing us means how we're growing up. I was a state volume of our partners there If you look at two our statistics, they're main our partner european union second one, it says Russia in china and third place by this way, uh, if We'll discuss about this our relation of china kazakhstan is first Affront staying country on the new silkway and as you know the The new initiative and mega project which we're providing in life and implementing One belt one road initiative bearer initiative began in astana sometimes before because President sigin bernie's has announced in astana only in time is his visit and already we have signed it The main the miu principles for the new project in kazakhstan Which we're covering more than 40 projects investment new projects for the amount about this 26 billion dollars It's something like the it's a best benefit which we can get from such cooperation. And I think uh as We discussed before I mentioned by prime minister quickly It's trans ksp and transport corridor, which we have right now Begin from the coast of eastern china, which are going from china kazakhstan Caspian sea and from azerbaijan and georgia We have now access to the european markets and they have new world New railroad, which was open last year from this Bakut will see cars to tokyi right now. We have access to the midi trancy with this way, I guess Total policy which are providing more the two decades By prison survive once again brought this really this the best value Which I have that's such country in kazakhstan, you know, we're the biggest landlock country in the world The nearest port for us. It's a 3300 kilometers around And we're trying to use exactly all the opportunities and we'll see the old challenges which we see before us I wonder if china's growing role and interest in kazakhstan. It makes your Relationships with easier with russia easier in the following way that it's showing moscow that it can no longer pretend that it's the only Great power that it Whether it likes it or not. It doesn't own central asia anymore It may like to think of it as it's near abroad But now there are other big players who are also very interested as well And in a sense it needs to compete with your affections rather than for your affections rather than simply assert its dominance you know We can't stand it. So kazakhstan became the really independent state And we're providing our the sovereign policy with our neighbors. It's not just about the neighbors and from this view Exactly, uh, we're feeling Some pressure from side because it's uh, if there's your neighbors size economy 10 times bigger than yours exactly you have some negative Incomes which are coming time to time, but it's I guess by way of the negotiation Intensively, and so we are using all these measures which you can use We are the members of wto for example or inside of your ration economic union We can use this all the instruments for that to negotiate and to solve such problems And I hope we will do that in later Jean-Yves, um help us now Pivot to economics As the leader of this huge international telecom What do you see as the Eurasian region's? Greatest challenge as it seeks to develop and fully join the global economy I think let me first maybe talk about the prospects because we continue to be as an investor and as an industrial investor Encouraged by the prospects in the region. We serve over 50 million consumers every day in this part of the world We see more opportunities to connect these consumers to the internet more opportunities to Help them embark on a digital lifestyle and also access new services such as Banking services and mobile financial services. So overall we're encouraged about the prospects in the region I think we're also encouraged with the reforms that we've seen in the region We've talked about georgia the openness of the reforms in georgia where we operate the stability that we've seen in kazakhstan has been An important element in terms of our prospects there But recently the liberalization in uzbekistan is also where we operate Important factor for an international investor And we haven't yet debated about the policies that most of the Eurasian countries are introducing in terms of digital economies Which are very important For the future of the telecoms industry So I think there are quite a number of areas where we're quite encouraged about what we see in the last few years I think what's important for an industrial player for as ourselves is to translate These reforms these visions Into regulations day-to-day regulations that offers In telecom stability. So we know exactly where we're going We invest several hundreds of millions of dollars every year in this part of the world The return on investment is not since six or 12 months time. We're investing five 10 years out ultimately So having not only modern Regulation but stable Regulation is absolutely critical For our sector as it's highly regulated overall And can you help in the actual development of those policies? Absolutely and we work with each of the governments in question Working on these policies. I think that's a very important part We're generally the number one or number two telecommunication operator in these countries. So I think that's first dimension regulations stable modern Benchmarkable as absolutely critical. It's also translating some of the digital Visions into practical realities also from a regulatory point of view Uh In several countries. We're still behind in terms of specific policies to introduce new mobile financial services, for example So we need to see the connection and the speed of connection between On one hand new visions and policies and the regulations On the ground fiscal matters are also Very important for us and the predictability of fiscal policies The telecom industry is generally one of the top three contributors in terms of income tax And we need to see stability In the fiscal policies that are really linked to long-term investments because If our networks are going to come to rule parts of eurasia if we're going to connect more of the population to the internet It's absolutely crucial That we have fiscal reforms that allow for long-term investments to be viable For international investors and the last point that I'd make also that's absolutely critical for us Are the reforms from an education point of view? Particularly as we focus on new digital Platforms new digital services. It's critical for us to see that the talent pool Is available In areas such as software development and data scientists and each of the governments and questions is really focusing on that But that you know remains for me a few of the key challenges That still need to be better addressed potentially for more foreign investment And for the prospects of renewed growth Mr president tell us a bit about Azerbaijan's attempt to diversify its economy away from oil and gas and whether now that prices are going back up again That will threaten the attempt to to move away And diversification of economies our main objective, and I think that we achieved a good success in that direction when we Experience a dramatic drop of oil prices. I said in Azerbaijan That for us it's already post oil period have started and we should forget about oil forget about gas Of course, we must Implement completely the projects which we are now Implementing but as far as the Source of major income. We should look at technology innovation industry entrepreneurship and Agriculture therefore we introduced the very serious reforms which already brought good results And the non oil sector of our economy grew almost three percent last year and non oil industry almost four percent Uh, therefore, I should say that the process of diversification Is already here and we have no plans to slow down now the price of oil goes up, but it will just increase our reserves we managed to optimize our expenses And last year still the price was low, but we Earned 4.5 billion dollars more to our reserves That means that even with low price. We will be on the safe side Our budget of this year is based on 45 dollars per barrel Therefore, whatever is more than that will go again to the sovereign fund But at the same time we should all understand that oil and gas will continue to be the main part of our economy Though already today Non oil sector is about 70 percent of our GDP So our target is to diversify our export To increase Level of non oil products in our export portfolio As far as energy projects are concerned once again, they are important for us the important for the region And the projects which we initiated actually change the energy map of the region Uh, the first pipeline we built to george and port of supza connected caspin and black sea And then the second pipeline Uh for crude oil from bakut bilisi jehan connecting caspin and mediterranean Then on the same route, we built a gas pipeline. Therefore, we already Have a diversified Export routes for our hydrocarbons at the same time providing Substantially energy security of our partners including those in europe Some countries of european union get biggest part of their oil supply from azar bhajan And after we successfully complete the southern gas corridor project In uh, two three years time, they will also get access to our natural gas The same I can say about our transportation project, which mr Vice prime minister referred to bakut bilisi cars change the transportation map of the region It is now the shortest route from china to europe Which will take you about two weeks instead of 30 35 days before that So this is a new map of transportation the new map of energy diversification and Azar bhajan being a landlocked country Managed I think already to transform We still have to work but already into regional transportation hub So future will be not in oil and gas oil and gas will come to an end one day futures innovation efficiency good governance management transparency And state support to entrepreneurship And do you feel that the uh, the public is already ready to take advantage of these opportunities whether it's Through education or or other measures? Definitely because one of our main objectives several years ago was to reduce poverty and unemployment And that was done successfully level of poverty in azar bhajan is 5.4 percent And level of unemployment is 5 percent in the last 15 years our population grew 1.5 million people Therefore creating jobs for us is a permanent process Last year we created 177 permanent jobs and This demonstrates our Policy also oil and gas they do not create many jobs in order to Have unemployment low. We need always to look at education Management agriculture tourism services Therefore population is ready for reforms and our reforms were very positively received by the People They were not painful because when you do radical reforms in the first stage it is painful for populations So we introduced a very substantial social package to those who still need that state support Therefore, this was a smooth process and basically in the coming years We need only to continue what we have started two years I mean the very deep and comprehensive economic reforms policy Prime minister obviously no country will succeed in developing Unless it gets corruption under control Georgia has become a star in the region for its efforts in recent years Tell us briefly. What were the keys to your success? And then if you will what are the lessons you think that georgia can teach other countries still struggling with deep-seated corruption Thank you. First of all corruption cannot be Viewed as a standalone challenge Among many other challenges. This is about the full complex of reforms Undertaken by georgian government. This is about openness of economy. This is eliminating trade barriers Not not only tariff barriers also non-tariff barriers This is a constant improvement of border crossing procedures And also deep reforms inside the country We georgia has become a chair Country of the open governance partnership last year. We received it from france We undertake deep reforms I was listening to mr. charlie and as It was mentioned. It's like an agenda of georgian government. You said predictability, for example, I can echo Every item you mentioned We created the investor council where we have all major representatives of business community business association leaders IFI representatives and several ministers We meet once in a quarter to discuss all the upcoming changes to regulations and legislation So that there are no negative surprises for business community Everything is transparent digital economy we are creating Unified front office project Which is called business house project. It's digital and physical both We are detaching existing front offices from government agencies Merging them in one unit And placing them in in one place physically in the capital of georgia and also regionally in regional centers In parallel with that we are creating digital unified front office where we will render All the services not only for individuals, which we already have in georgia, but also for legal entities It means further improvement of transparency It means further decreasing any chances for corruption as all the services will be located physically and digitally in one space so fiscal policy during 2017 georgian economy grew by 5 4.9 percent. It's preliminary data Our tourism grew by 28 percent Our exports grew by 29 percent and our Current account deficit decreased from 12 to 7 percent our budget deficit decreased from 4.9 to 3 percent. So all the data There is very prudent macroeconomic environment And uh, of course, it is reflected in international rankings. Let me give you several examples During last five years, according to all the economic forums global competitiveness index macroeconomic environment Improved by 89 positions from 137th position to 48th position In extent of market dominance our rankings According to world economic forum Improved by 45 positions during the last five years From 112 to 67th position, and we are one of the leading Countries in the region why it happened because we demonopolised several important industries In the property rights category very key for business environment We had 120th position just five years ago 2012 74 position improvement We are 46th right now according to world economic forum ranking. We are number nine According to world bank in doing business and in corruption anti-corruption efforts according to In transparency international heritage foundation all major international institutions Constant improvement from 10 to 15 percentile every year in georgia. So why it happens? This is about political will dedication of the whole team And of course, this is not the end of the road We consider this dynamism Not only consistency, but also pace of the reforms as the key for the success of the country and international Projects geographic location Is of course the basic and at the same time added value to everything Fundamental what we do in our country Bakut Bili Sikar's railway project it changed the transport map of the of the of the country New deep seaport construction an ugly a port on the Blexi shore Engagement of central Asian countries as a stand Azerbaijan georgia turkey and europe Starting from china It took nine days for a direct train From china to georgia. And this is a Big achievement not only for of one country, but of all the countries engaged So let's return to corruption specifically for a moment. It's obvious as we said that no country can become rich Unless it tackles corruption But I wonder if it works the other way around as well, which is that no country can effectively tackle corruption while it remains Very poor. Is that a challenge for georgia as well? Well, this is a challenge, of course today The the level of democracy in georgia can be challenged by the The social Wellness actually well-being level in georgia. This is a big challenge, of course and this is a economic Development and tackling the poverty issue generally in the country is the biggest challenge for the development of the country This is why For us the biggest priority is to come up with special state projects aimed at decreasing poverty Eliminating poverty and this is why we are Specially focused on the startup entrepreneurs on the special economic projects in rural areas This is micro grants projects. This is a project produced in georgia Supporting startup enterprises, especially in rural areas in several ways In the startup period, we are subsidizing bank loans But only for startup period not to distort the competitive environment. This is about Sharing collateral obligations in commercial banks for startup companies. This is about Financing bringing of foreign experts in the areas, which is new for georgia. It's hydroponics. It's Different manufacturing directions. So this is a complex of steps undertaken by the government in order to Mitigate risks coming from the general poverty in the country. So I don't want to Yeah, I just wanted to intervene and We're very encouraged as an industrial player in georgia by the reforms and the quality of the reforms that the prime minister and his government have Undertaken in the past few years and we see clearly today The ease of doing business for an international investor are clearly there in georgia We see that the region in fact is reforming itself more and more on these matters And I think the point on corruption is absolutely a critical point that there would be zero tolerance That's certainly our policy And we've seen the progress made on these matters also in In georgia so I can only echo what's Been said by the prime minister and just to return to the last part of my question first question on corruption Are there ways in which georgia can or is already helping its neighbors? Using its expertise to to teach lessons to those that are have made less progress on corruption Let me not say helping but we have a very good cooperation with our neighbor countries Under the open governance partnership platform. We have an excellent cooperation with all our neighbor countries So it's sharing experience and this cannot be a one one way initiative. It's always Mutual benefits that we look for and We should not look at other countries that you know, we are different. This is we are saying the same region There are areas where we perform. Maybe better. There are areas where we may lay behind So this is not something that we can become teachers for everyone That was very modest answer. I was giving you a chance to brag if you want to And also let me echo the education point, you know Several years I served in the government Being an economic minister also They as a prime minister. I have been meeting entrepreneurs who had problems When they import new technology? When they start a new project There's always been a problem to find qualified workforce So I I have been hearing these complaints I have a problem of finding a feeding specialist for new cows imported from netherlands or germany. I have a problem of The software specialist when we have a new software player IT company coming to georgia We came up with an initiative Of co-financing professional education together with private companies and this has become number one priority for our country And generally changing the very unhealthy proportion between higher education and professional education And to make professional education more prestigious in the country. This is the primary goal for us We took germany as an excellent example of dual education model This model exists in switzerland in austria, so We are drawing this experience and building a very successful Professional education model in the country co-financing it and the private public private partnership schemes together with private company Responding to immediate needs of the private sector and at the same time Directly giving a channel to young generation and not not only young generation To everyone for immediate employment after the professional education I'd love to take some questions now from the audience if there are any There have to be some I can't believe that we've already covered everything to do with the region No, well as you're thinking about your questions, which I know will come Oh, do I have one behind me? Please If you just tell us who you are as well Hello, my name is ron emitter. I'm director of the china center at oxford university, which informs my question Um, I'd love to hear a bit more from any members of the panel about the way in which china's changing role And also organizations such as the shanghai cooperation Organization are affecting the connections between security economics trade and also perhaps Less tangible more cultural links between different parts of the eurasia region Do you want to say? Shanghai cooperation organization is you know mcstandard and Two new members journeyed last year. You know, uh, pakistan andy And historically it's brought maybe more stability in the whole region. I'm not talking about about central Asia only We're talking about all the coverings of all the Eurasian region plus it may be south Asia and I think it's all such measures or maybe such international institutions in new form Can bring us maybe that's really this not just about the political or maybe economical value I'm talking about this. It's We're feeling better even we should be much more closer to each other If you're talking not just about the b era initiative, for example, but it's a kazakhstan is looking for, for example, the new markets And for us any new economic partners, which we can get Inside of such organizations will be very useful for kazakhstan economy, first of all And same as will be useful for whole the central Asia because we are not trying to keep everything only for kazakhstan because If you're looking to was bigistan and to kazakhstan Total population will be around the 50 million people. It's a huge market for the future But today it was bigest on just opening But we hope in next maybe five years We'll have the good chance to cooperate much more deeply And we will use such opportunity for our future development movement And by this way, I guess I fully support once again any cooperation in our region because Situation is afghanistan is not so far from us Sometimes the people is trying to say where from kazakhstan is the same the pakistan and afghanistan Yes, we don't have this one border of them, but we have this great influence and kazakhstan is a very active participant for different types of sponsoring programs We're right now the way of establishing kazate is a special organization who will support such countries like this afghanistan And so we have already a special program for bilateral cooperation between us But we are invite all the countries who can be part of this process And maybe shanghai the cooperation organization can be very supportive for such idea And what about the cultural element of the question are there links there that can be built on between kazakhstan and china? Yes, because it's one of the main target of this initiative. I guess it's some more this Be closer on the cultural level because If you look at historical this ancient silkway, they brought something many thing to europe Beginnings of from paper, etc, etc And I guess it's maybe this new silkway it will bring it's maybe some new level of under Equal understanding what's happening in china or in other countries same in central asia because For example, kazakhstan is looking more as a beach between our one third is located in europe And two third and located in asia and we are really erasing country Thank you Are there more questions? well, I have another johnny Tell us about how The countries in the region can use new technologies to leapfrog ahead. You've mentioned it already in your opening remarks, but i'm I'd like to hear more and be as specific as you can Well, I think that one of the prospects of the region is in fact A population that's growing a population that is accessing more and more of the internet and hence it's just at the beginning of digital lifestyles and I think that Georgia going back join as a prime example of using at the government level The digital economy to really open up services for the population for investors such as ourselves And so I think that these new technologies can not only You know bring advantages to the government level, but obviously To the economic growth in certain parts of the region. There are excellent software development capabilities We develop software for example in areas such as ukraine We use kazakhstan as a hub to provide services to other parts of the region So we think that these new technologies and the digital economy can really help The whole of the region leapfrog in certain areas Making the unbanked banked more quickly Bringing you know the internet to rural areas all these are host of opportunities that The internet and digital technologies bring to the region Yes, please Hello, my name is Andrew Wilson. I'm the managing director of the center for international private enterprise And my question is for uh, well, we heard from our georgian Prime minister here about all the the policy elements and things that Georgia is doing to help promote private sector development In particular small business development in the region I would like to hear from the other leaders from the region to to get a sense of what They think the role of small businesses in diversification of their economies and what they're doing to promote that We in Azerbaijan have a special fund to support entrepreneurship And through that fund During the last decade or more Almost two billion dollars have been delivered to private sectors on a very preferential basis low interest loans With recommendations with state support to private sector Especially we pay attention to regional development. We implement now the third Regional development program which allowed us to create conditions for Small enterprises to do business what the conditions were first infrastructure We built in 15 years more than 12,000 kilometers of roads including village roads Which allow not only easy access To services, but also which allow farmers to bring their products to the market The level of gasification in Azerbaijan is 93 percent taking into account the mountainous region I think it's very high We transform from importer to exporter of electric energy Therefore we have extra capacity and extra source Also Every year Around hundred thousand hectares of land Are irrigated by the state Above from that our farmers do not pay any taxes except land tax and Pay only 30 percent of fertilizers And 50 percent of fuel So this is a state support to business And uh, this is substantial support also the subsidies to farmers And very good investment climate in Azerbaijan. We attracted 230 billion u.s. Dollars of investments half foreign half local in the last 15 years So all that created conditions for private sector To to develop at the same time Referring to the beginning of conversation Very good relations with the neighbors allow us to have easy access to the neighboring markets And which is our main market for our non oil production Therefore the policy of support to a private sector will continue The level of Small enterprises in our GDP is still very low Therefore our main target for the coming years will be to create additional Relations for them in order to Generate jobs and generate more profit There's an ongoing global competition in creating norms And the european union is one of the norm generating organization in the world Georgia clearly has made the choice of getting as close as possible to the norms of the eu I think it'd be interesting to see From the region How influential they see european norms what the europeans could do better to Have their norms Become more dominant in the region. Do you want to be any more specific when you're referring to norms? Well, there are norms in For instance in telecoms there are norms I mean the number of norms that govern more and more the trade and services That are critical to the development of trade and you you see The norms the us generated norm the european generated norms There is a convergence, but there are also Differences and so it'd be interesting to to see how Various countries see that issue and also the perspective of business on that. Who wants to start? Well, just very briefly. I will say that In Medium or maybe a little bit longer prospect. Georgia Sees himself as a full member of european union So we decided for ourselves to embrace all the regulations and norms of the european union But we have a gradual approximation agenda and action plan which envisages Implementation implementation of european norms According to a schedule we have Now we came up with even a rigorous more rigorous agenda to go Beyond the schedule and be ahead of the schedule for 2020 in terms of Implementing european norms so far. We have only observed positive dynamics Accompanied by implementing european norms as it opens New opportunities for us for exports to european market not only goods, but also services So according to our association agreement deep and comprehensive Free trade area agreement We are able to sell our products and services Tariff free to european market Why is it so important because it cannot be Important if we consider it as a standalone free trade agreement In addition to that We have free trade agreements with after countries with switzerland and other after countries We have free trade agreement with all the neighboring countries And with china I remember when we started negotiations with china of free trade agreement Degree of skepticism and fear Inside the country among the local business Representatives that it may ruin the prospects of industrial development in georgia. It did not happen We have a quite opposite trend in georgia Chinese companies are eager to consider georgia As a base or platform for manufacturing at least partial manufacturing of goods To to sell the goods to european market and vice versa We had number of meetings today with indian companies Indian companies are interested to open branches in georgia for business outsourcing Which means that There are more prospects from opening up for international trade Than drawbacks This is what georgia's experience shows And this is an absolutely empirical evidence of the benefits of free trade based on the example of georgia Thank you President ali of let's talk about another type of european norm which has to do with political participation and human rights It's argued by many that these are critical not only to To the individual human experience but also to economic development and that you can't have one without the other How is that playing out in azerbaijan which has been criticized on issues like press freedoms? Yeah, I think that this criticism has no grounds because if you look to the substance all the basic freedoms in azerbaijan are provided Including freedom of press which is absolutely free And about 80 percent of the population of azerbaijan are internet users And when internet is free without any censorship An absolute majority of population are using internet. It's difficult to talk about restriction of of press But then how then explain for me so I can understand why does azerbaijan get a Ranking of 162 from the world press freedom and that is I think based on Political grounds. It has nothing to do with reality Again, all the fundamental freedoms are provided And our government is implementing a very important project of bringing broadband internet to every village therefore this Classification is based on a very biased approach sometimes very hostile approach It is generated in some political centers In the west and more specific. Where does this hostile? Well, I would not prefer to talk more Precise about that. I think it's clear where it comes from. Why it comes. Why? And the reason is very simple because azerbaijan is a country which is implementing independent policy Policy based on our national interests. We do not join any adventure Which is risky and which can create complications for our country? As I said before we do not have internal risks We have a stable political and economic situation All the potential risks which we may face may come from outside There have been a lot of attempts to drag azerbaijan into kind of campaign against Some countries we were always very neutral. We do not play against anyone And we are not part of any campaign which is risky and which is not in line with our national interests therefore main reason for attacks Is that some may consider azerbaijan to be too independent for not a very big country And these kind of ratings of some NGOs Are aimed to discredit our reputation to damage our reputation to present azerbaijan as non-democratic country, which is not true And again, we are talking today about political development and economic development You cannot separate one from another and in the country which according to world economic forum Economist competitiveness is number 35th. I think it's a good indicator that the country is free Davos also issued recently a rating of the public trust in politicians An azerbaijan he is number 20 And the inclusive development Index among developing countries azerbaijan is number three if all these ratings which Some NGOs are trying to you know Introduce with true. We wouldn't have achieved that success therefore We need to look to the substance to the real situation and separate political agenda or some expectations Towards azerbaijan from the reality So the world economic forum tells its moderators at the end. We're supposed to summarize everything that's been discussed There's absolutely no way that I could do that because our panelists have done such a good job themselves So just please join me in thanking them and thanks to all of you