To many around the world, Azerbaijan is considered a remote and mysterious place. If they have even heard of it. This is surprising because it borders four countries that have commanded much global attention over the past few years; Russia, Georgia, Armenia, and Iran.
This may be because, save for its conflict with Armenia over the Nagorno-Karabakh region, the country doesn’t have as much drama to offer the world. They are much more concerned about peace, security, sovereignty, and political independence; things that don’t normally dominate headlines.
Azerbaijan was the first and one of the very few Muslim-majority countries that is both truly democratic and secular. It has a separation of powers among three branches: executive, legislative, and judicial. It is one of the few Shia-majority countries. It has also proven to be very strategic geopolitically in that it has several important alliances both regionally and internationally. Turkey, a Sunni-majority country is one of these important alliances. The two are very culturally and linguistically similar and Turkey has backed Azerbaijan in all its major disputes including the conflict over the Nagorno-Karabakh region.
Strikingly, Azerbaijan has robust relations and a hearty trade agreement with Israel and still somehow has a warm relationship with Iran – even in the face of recent accusations that Israel is using Azerbaijan as a base for its military operations against Iran. There was some tension between the two countries when Ahmadinejad was Iran’s president but things have gotten much better since President Rouhani took the reins. Even though there are some issues surrounding Iran’s nuclear program and international sanctions, the border between Azerbaijan and Iran is open and they have pretty solid trade agreements. They share a lot of history, culture, ethnicity, and religion – even though Azerbaijan is much more secular and allows religious freedom. It is also much friendlier towards the West and even allows women to wear whatever they choose. There have been some minor tensions between Baku and Tehran over these issues but because Azerbaijan has been so gracious towards Iran in regards to joint exploration and production of oil in the Caspian Sea, these disagreements have not become too serious. Since most of the Caspian Sea’s deposits are either in the center or to the north of the Sea and this agreement would give Iran a more equal share, this has given them a considerable opportunity to boost their economy.
Speaking of economies, Azerbaijan’s economy is very strong due to its vast oil and natural gas reserves. The country has a complex system of trestles, pipelines, and causeways that connect the oil reservoirs off-shore in the middle of the Caspian Sea. This isn’t too surprising as they’ve been at it for a long time. In fact, Azerbaijan is the builder of the world’s first off-shore oil platform and the Baku port is the largest and busiest harbor in the Caspian Sea. Even though it has been more than a decade since the country declared its independence, the transfer of ownership of land and businesses from the state to individuals has been delayed. While most agricultural ventures are privatized, the government controls the oil and energy industries. Contrary to government track records, it is doing a surprisingly good job at it. It has paired with Western companies that will use less damaging methods and equipment to extract its natural gas and petroleum deposits. The same goes for the oil and natural gas found beneath the Caspian Sea. Azerbaijan, with the help of more than twenty companies, led by the United States and Britain, are in the process of building a three billion dollar pipeline from Baku through the republic of Georgia to the Turkish port of Ceyhan. From there, the oil will be shipped to the United States which will even further boost Azerbaijan’s economy.
In addition to Azerbaijan’s oil industry, it also has rich supplies of other natural resources, a highly profitable and diversified agricultural industry, and fisheries – another benefit from the Caspian Sea. The country is a major source of caviar, which is considered a very valuable export. Even with problems stemming from pollution and overfishing, Beluga caviar – which comes from a very particular species of sturgeon found here – still fetches a high price and contributes to the country’s economy.
The Azeris, who enjoy a very low unemployment rate by world standards, take great pride in their country and place a very high value on sovereignty. While there have been ethnic conflicts and clashes over religion, most minorities – including Jews and Christians – have lived in relative peace. With the exception of the violence that erupted in Nagorno-Karabakh, Azerbaijan has a very casual and relaxed atmosphere. In fact, despite their Islamic faith, many Azeris drink alcohol; this is forbidden in most other Muslim countries. This contradictory approach to Islam is most likely due to new ideas that are increasingly challenging the traditional ways of doing things. Their rapidly changing environment may be forcing them to make adjustments to their attitudes and way of life. And there are no doubts here that their willingness to adapt will ultimately pay off.
In fact, almost everything about the way Azerbaijan is handling their transition from a Soviet Republic to a modern, sovereign nation is admirable. From their ambitious efforts to preserve their ancient history to their desire to promote peace and stability in the region to their ability to build and maintain diplomatic relationships with key players in the Caspian Sea region (and beyond), Azerbaijan appears to have a very promising future. Their approach may have the potential to change the way the West and the Muslim world relate. After all, they were the first Muslim country to embrace theaters, operas, and modern-day universities. Now, they hold membership with 38 international organizations including the United Nations and work closely with NATO. The annual Caspian Oil and Gas Show held in Baku helps bring important visitors into the country and, even though some political activists have used the high-profile EU games event to shine a light on government corruption within the country, Azerbaijan will still gain a lot of positive visibility and will, in the near future, prove to the world it has earned the right to be recognized as – thanks to the Caspian Sea – one of the great producers of oil and natural gas. While there are of course challenges involving the fight against corruption, more equitable economic development, and continued relations in the often troubled Caucasus, on the whole there is much to praise in Azerbaijan. Though relatively small, it may just one day be able to accurately consider itself a model for civil and open interstate relations in this critical part of the world.
