Succession in politics: 26 years that changed Azerbaijans' fate and face

The road from the Contract of the Century to the New Contract of the Century

The national leader signed the Contract of the Century, which was the turning point of the country’s economy, while his political successor Ilham Aliyev signed the New Contract of the Century, which promised greater dividends for Azerbaijan. If we draw parallels between these two historical events, what can we see?

Azerbaijan was considered to be a very risky country in 1994. It was required to convince foreign investors that investing in the oil fields of the Caspian Sea was not useless. Trust and confidence in the personality of Heydar Aliyev played a decisive role in this issue. The foundation of economic and social growth was laid with the Contract of the Century. The State Oil Fund was set up to use oil revenues efficiently for the interest of the people and the future of the country. Comfortable and wide roads and bridges were built, settlements for refugees and internally displaced persons were constructed and opportunities were created to carry out some other measures for the well-being of the people at the expense of the revenues accumulated in the Fund.

A contract on the extension of the mentioned contract until 2050 was signed on September 14, 2017. Azerbaijan was not that country which existed 23 years ago and was recognized as a stable country and a reliable partner. Therefore, it became possible to substantially change the provisions of the contract in our favor; SOCAR’s share in the Azeri-Chirag-Gunashli fields was brought from 11,65 per cent to 25 per cent, moreover, the partner companies made a commitment to pay a bonus of 3,6 billion US dollars to the State Oil Fund.

At this point, we can remember one idea national leader Heydar Aliyev articulated at his oath taking ceremony 26 years ago. Mentioning that the economy of the country had been totally destroyed and the situation of the people had deteriorated, Heydar Aliyev was saying wisely: Azerbaijan’s geographic and political location and natural resources allow the republic to get out of this heavy crisis.

The oil strategy, which was designed with great sagacity at that time, has been enriched with a new content in line with the challenges of the time thanks to the political will of President Ilham Aliyev and it is serving the well-being of our people.