The New
Generation |
This is a new era, led by a new generation.
The Presidential elections held in October 2003
witnessed the election of Ilham Aliyev as new
President of Azerbaijan, thereby opening the doors
to a new vision and a new generation of leaders
in Azerbaijan.
This new era will witness major changes and face
new realities.
Energy |
Known as "the land of fires", the countryside
of Azerbaijan is illuminated by its stocks of
oil and gas, burning from the earth, which has
given its country a reputation as a strategic
oil nation. It has also helped build Azerbaijan's
economic development and international influence
in a world dominated by the search for renewable
energy.
Upstream oil field development is harnessed by
major investment projects, which will have a geo-political
importance for Europe and Asia, positioning Azerbaijan
as a key partner for oil and gas trade.
The established political stability has also
allowed economic reforms to go ahead; in fact,
since 1994 Azerbaijan has received billions of
investments in the development of its oil and
gas resources and the country now hosts the regional
offices of multinational companies like BP, Exxon,
Shell, as well as many other companies from the
USA, UK, Italy, France, Germany, Norway, Russia,
Turkey, China and Israel. One of the best-known
projects of world value is the construction of
the BTC oil and gas pipeline (Baku-Tbilisi-Jeyhan)
and the SCP (the Southern-Caucasian gas) pipeline,
which will deliver Caspian oil to world markets.
Privatization |
Plans are underway to privatize major state-owned
companies in the financial, telecom and industrial
sectors, opening the doors to new opportunities
for strategic Asian investors.
Economic programs of the European Union are helping
to move the economy in the right direction, and
a major campaign for privatization of state properties
is in the works. Shortly on auctions and tenders
the enterprises oil and a process industry will
be announced. Already, many enterprises which
are reforming themselves and bringing a stable
return on investment. The last impulse for development
of a non-oil sector of economy became the program
of regional development accepted by the president
in the beginning of 2004, which provides the state
support and the big investments. The development
of an agrarian sector and a varied road infrastructure
has also been a positive result of this growth.
Diversification |
The government also seeks the attraction of foreign
investment in non-oil sectors, thus seeking economic
diversity. Transport, tourism services and commerce
are only a few of the main sectors that will require
renewed attention in order to grow and modernize.
Azerbaijan's strategic position establishes it
as an ideal partner for Asian companies looking
to expand to the west.
This active policy of market transformation was
led by former president Heydar Aliyev, who ruled
the country during Soviet time (1969-1982) and
stayed in power for more than 10 years, effectively
winning democratic elections in 1993 and leading
the country's metamorphosis to implement a new
era of industrial development. The result was
an intensive attraction of foreign capital in
the oil sector and a strong GDP growth which did
not fall below 10% while annual inflation did
not exceed 2%.
Ahmed Jehani Country manager World Bank,
comments that, thanks to "sound economic
stability" the country has "yielded
striking results such as full stabilization since
1995, very low inflation rate, very low depreciation
of the exchange rate, annual double digit GDP
growth - and the last couple of years were also
very good in terms non-oil GDP improvement".
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Foreign
Relations |
Stability was bestowed to Azerbaijan in 1991
when it declared independence from the Soviet
Union. Ever since then, the country has flourished,
receiving a full mandate in the United Nations
Organization, and adopting a new constitution
in 1995 in which democratic principles are respected,
standards of market economy are implemented and
human rights are nurtured.
Today, accession plans to the WTO and economic
partnership with the IMF places foreign relations
on a high international level. Security is also
an important issue. From the end of 1990s, Azerbaijan
has successfully cooperated with NATO, taking
part in the program "Partnership for peace".
Azerbaijan also has joined the development programs
of various Asian countries and has become a member
of the Organization Islamic Conference, while
cooperating closely with Asian and Islamic development
banks.
Cultural
bridges |
As a main country within the Silk Route, Azerbaijan
holds strong cultural ties with Asia. It will
be looking to re-inforce these ties in order to
improve it world position, regional recognition
and to attract new partners on both political
and economic levels.
Regionally, Azerbaijan is an important player
among former republics of Soviet Union as one
of the leaders of the Commonwealth of Independent
States (CIS), the entity formed following the
break-up of the USSR.
Thanks to its favorable geographical position,
Azerbaijan was historically part of the Great
Silk Route. In the north the republic borders
on the Russian Federation, while in the south
it borders with Iran. The east of the country
is perched on the coast of the Caspian Sea, which
offers direct contact with Asia and as well as
its neighbors Kazakhstan and Turkmenistan. In
the West Azerbaijan greets the borders of Georgia
and Armenia. It must be said that there is a continuing
dispute between Azerbaijan and Armenia since the
1980s, which has led the UNHCR (United Nations
High Commission for Refugees) to maintain a presence
in the area. Due to this continuing diplomatic
conflict, Armenia is cut off from other Azerbaijan.
As a stop in the Silk Route, Azerbaijan has attracted
a multi-ethnic population that brings together
Turkish, Russian and Jewish citizens under one
flag.
Political
change |
President Heydar Aliyev has dominated the country's
politics for a full decade. Following a period
of instability that threatened civil war, President
Aliyev came to power in 1993 and was returned
to office in a controversial October 1998 election.
President Aliyev and his supporters dominated
the multiparty, 125-member parliament. An August
2002 referendum on proposed changes to the Azeri
constitution drew criticism from U.S. and international
observers, citing concerns on polling irregularities
and voter fraud. Then, throughout 2002, President
Aliyev proclaimed his intention to run in the
next scheduled presidential election in 2003,
yet concerns about the health of the 79-year old
ruler led him to appoint his son, Ilham Aliyev,
as Prime Minister in August 2003.
Finally, the mantle was passed on when President
Aliyev stepped down as Presidential candidate
and his son Ilham presented himself to the October
2004 elections as Presidential candidate and head
of the New Azerbaijan Party (NAP).
The result was a strong electoral victory by
Ilham Aliyev as the new President of Azerbaijan,
heralding a new chapter in the country's political
scene.
Managing
the Karabakh conflict |
One of the issues that President Aliyev will
have to deal with is the Karabakh conflict. At
the end 1980s and the beginning of 1990s, the
regional stage complicated itself when Azerbaijan
and Armenia entered an armed conflict. Armenia
claimed the northern territory of the country,
including a pearl of Azerbaijan - Karabakh, which
compelled immigrants to flee to the south. Since
then, several U.N. resolutions have attempted
to mediate the territorial conflict, and former
president Heydar Aliyev attempted to reach peace
in 1994 through an agreement which has set an
armistice at the border, which is still observed
by the Azerbaijan armed forces at the present
time.
Peace talks are currently managed by the Organization
on Security and Cooperation in Europe (OSCE),
and it is hoped that, with the joint work of diplomats
from the USA, Russia and France, a final process
will soon formalize a lasting peace between both
neighbors.
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