Between 1987 and 1988, democratic movements in the Soviet region had already started, covering mainly the Baltic States, as well as Ukraine, Moldova and Belarus. These demonstrations of independence were followed by almost all of the Soviet Republics in the following years, including Azerbaijan.
Like the other oil states created in the ruins of the Soviet Union, post-Communist Azerbaijan faced a complex legacy in the 1990s, which was formed as an outcome of the Soviet inherited trends of economic and political development. These difficulties were intensified not only by the military conflict in Nagorno Karabakh, but also by the harsh actions of the political and economic elites of post-Soviet states.
One point specific to the case of Azerbaijan was the difficulties of transporting oil in order to achieve economic growth. During his research about Azerbaijan in the 19th century, Russian geographer Pyotr Chikhachev noted the “isolation of Baku from European markets”. In order to provide democratic consolidation to the newly independent Azerbaijan, diversification of transport routes was needed, because that would lead to gain profit and to implement further projects in the country.
This essay will demonstrate that the geopolitical situation of Azerbaijan has had a negative effect on democratization and nation-building processes. A brief history of the first years of independent Azerbaijan will be analyzed in the first section, while the second section will cover post-war period and the projects and reforms implemented on the behalf of democratization. The conclusion will give a brief review of the essay and offer future implications.
A BRIEF HISTORY OF INDEPENDENCE: THE NAGORNO KARABAKH WAR PERIOD
Black January: the enlightenment
On 9 January 1990, neighboring Armenian SSR took advantage of the unrest and voted to include Azerbaijani autonomous oblast of Nagorno Karabakh in its budget and allowed its inhabitants to vote in Armenian elections. This action caused rage throughout Azerbaijan, thus disregarding Azerbaijani jurisdiction. Demonstrations started against this decision throughout the country – mainly in Baku – led by the newly formed Popular Front of Azerbaijan. On 19 January 1990, a decree issued by the Presidium of the Supreme Soviet of the USSR and signed by M. Gorbachev introduced a state of emergency in Baku and some other places in Azerbaijan SSR. Following the curfew, on the night of January 19th, some 26000 Soviet troops entered Baku from several directions, destroyed the central television station as well as radio and phone lines in order to maintain the information blockade. It was already 20 January when the Soviet troops moved inside of city and crushed the civilian population. The death toll was between 131-137, while up to 800 civilians were wounded and 5 people were missing. These actions didn’t stop the people: almost the whole population of Baku flowed to the streets to bury the dead on 22 January.
The violent authoritarian break-down on 20 January 1990 made the re-democratization process stronger – the earlier democratic failure was between 1918-1920, before Soviet troops invaded Azerbaijan Democratic Republic. On 18 October 1991, the Supreme Council of Azerbaijan finally adopted the Declaration of Independence, followed by a nation-wide referendum in December of the same year. Prior to that, Ayaz Mutallibov was elected as the President of the Republic of Azerbaijan.
The Nagorno Karabakh War
The Declaration of Independence did not create a base for democratic consolidation. The clashes between Armenia and Azerbaijan that started in 1988 intensified in 1991. On 6 January 1992, a referendum was held in Nagorno Karabakh – which was boycotted by the Azerbaijani community – resulted in the declaration of independence of Nagorno Karabakh from Azerbaijan. Thus, escalated the conflict and eliminated the ability of Azerbaijan to withstand shocks. The war itself roughly lasted 6 years, between 1988-1994, and costed for Azerbaijan 12000 dead, 50000 wounded and 4210 missing soldiers, as well as 167-763 civilian death only in 1992 and 724000 internally displaced persons (IDPs). But the war had other consequences that obstructed the democratization process. This includes fractures within the government itself and a possible military coup.
The political instability and its outcomes
The years 1992-1993 were memorable years in the political history of Azerbaijan because of the power struggle. As a result of Khojaly Massacre – according to official records, 613 civilians murdered by Armenian forces and 366th CIS regiment – in Nagorno Karabakh, Mutallibov had to resign on March 6, 1992. Yagub Mammadov replaced him as executive of presidential powers until Mutallibov regained the power on May 14. But this presidency did not last long either, thus Popular Front of Azerbaijan took control of Parliament of Azerbaijan, thereby deposing Mutallibov, who left for Moscow on May 15, 1992. Moreover, Isa Gambar elected as the chairman of the National Assembly of Azerbaijan and took the duty of acting president until the national elections. Finally, on 7th of June, Popular Front member Abulfaz Elchibay won the national elections and became the President of Azerbaijan Republic.
As mentioned before, war itself brought other troubles. The retreat of Soviet troops from the region created a weapons vacuum, thus former soldiers traded their weapons for cash to either sides, sometimes even sold tanks and armored personnel carriers. Taking the advantage of situation, a commander named Surat Huseynov created his own military brigade, purchased many weapons and vehicles, opposed against the Popular Front of Azerbaijan. He was a successful commander in the war since the beginning of 1992. As a result of conflict between him and Popular front, Huseynov orders to disarm the 709th military base in Ganja, which is commanded by himself, then marches towards Baku, the capital on June 1993.
The increasing political tensions in the country and a possible military coup made Elchibay to invite Heydar Aliyev – the head of Supreme Assembly of Nakhchivan during that time – to Baku in order to solve the internal conflict. On June 15, 1993 Elchibay appointed Heydar Aliyev as the chairman of the National Assembly of the Azerbaijani Republic. After this event, Elchibay retreated to his hometown and this action deepened the political crisis in the country. Heydar Aliyev proposed Surat Huseynov as prime minister and after the approval of the National Assembly to the requested office, his supporters backed up. After another coup d’état attempt against Aliyev by Huseynov’s units on 5 October 1994, which was immediately suppressed, Huseynov fled to Russia. On 1997 Russia extradited Huseynov to Azerbaijan, where he was charged with treason and attempted coup, among other crimes. On 1997 Russia extradited Huseynov to Azerbaijan, where he charged with treason and attempted coup, among other crimes.
After Elchibay’s retreat and Aliyev’s assignment by the National Assembly as acting president, he became 3rd elected president of the Republic of Azerbaijan by a nation-wide presidential election on 3 October 1993. Up until this time Armenian forces already occupied the whole Nagorno Karabakh and 11 surrounding districts. Finally, after long discussions in Bishkek, Kyrgyzstan, a provisional ceasefire agreement was signed by representatives of Armenia, Azerbaijan, unrecognized Nagorno-Karabakh Republic and as a mediator, Russia on 5 May 1994. On the one hand Bishkek Protocol, still in effect, ended Nagorno Karabakh War, on the other hand did not solve the conflict once for all. But the ceasefire was a necessary action for a country that gained independence recently, in order to stabilize the government and strengthen democratic roots.
The first years of democratic Azerbaijan were too fragile. There was almost no democratic consolidation to enforce the regime transformation. Several events prevented democratic consolidation, including the war, internal conflicts and absence of democratic roots. Although Burnell and Rakner explain that “just as there can be political transition without transition to democracy, so there can be democratic transition without democratic consolidation”; this scenario was impossible for the case of Azerbaijan because of the above-mentioned issues. Azerbaijan needed strong democratic consolidation in order to withstand shocks, both internal and external, so that the transition period could be completed. A democratic country cannot arise just by declaring independence, it needs stronger motives and hard work.
POST-WAR PERIOD: REFORMS AND ENERGY PROJECTS UNDER THE TWO PRESIDENTS
Azerbaijan and Heydar Aliyev
Finally, in 1994, the war ended and the government was stabilized. But this was not the end, there were further challenges for Azerbaijan. As Nikolay Dobronravin mentioned, Azerbaijan also encountered issues with the transport curse, mainly because of the war with Armenia, that closed the route to Europe by dividing the country in two parts. Azerbaijan also suffered from the ongoing instability in neighboring Georgia and the conflict in Chechnya.
Azerbaijan was a natural resource rich country and during its first years of independence, there was not so much technology and investment for the allocation of resources. War was costly and the country needed investment, so the best option was involving foreign companies for oil extraction.
As a result of this, Aliyev’s government implemented 20 production sharing agreements, which concluded Azerbaijan oil strategy’s integral part. This International Contract was signed by the president and other participants on 20 September 1994 and ratified by the National Assembly on 2 December. In 1995, Azerbaijan International Operating Company (AIOC) – a consortium that included BP, Amoco, Lukoil, Pennzoil, UNOCAL, Statoil, McDermott, Ramco, TPAO, Delta Nimir and SOCAR (Azerbaijan) – was formed. Because of the volume and strategic importance for Azerbaijan, this contract was labeled the “Contract of the Century”.
Pipeline diversity was a further strategic objective for Azerbaijan. Firstly, northern route was used for delivering oil to Europe through Novorossiisk, Russia. The oil transport diversion started in 1999, when Baku-Supsa pipeline opened. In 2005 another pipeline – Baku-Tbilisi- Ceyhan (BTC) – was constructed for delivering Azerbaijani oil to Europe and the world. in 2007 Azerbaijan became one of the Europe’s gas exporters by building Baku-Tbilisi-Erzurum gas pipeline.
These projects developed Azerbaijan’s hydrocarbon reserves and also brought lots of ‘unearned state income’. In order to manage this money flow and overcome the resource curse, a national resource fund – State Oil Fund of the Republic of Azerbaijan (SOFAZ) – was founded in 1999. The main objective of SOFAZ was to save financial assets earned from natural resource for current and future generations.
In order to provide democratic consolidation, Aliyev held several reforms, mainly on the agrarian sector, with the privatization of the sector as the primary goal. Several laws and reforms were adopted: “the Basis of Agrarian Reform law” (18 February 1995); “Reform of state and collective farms” (18 February 1995); “Land Reform” (16 July 1996); “State land cadaster, land monitoring and structure law” (22 December 1998), “Land rent decree” (12 March 1999), “land market law” (7 May 1999). Moreover, The Land Code of the Azerbaijani Republic was adopted on 25 June 1999.
The successor: Ilham Aliyev
In 2003, after the death of Heydar Aliyev, his son, Ilham Aliyev succeeded his father. He also continued to develop the economy through energy projects, as economic development is considered one of the best guarantors of durable democracy. He reportedly stressed the importance of the Southern Gas Corridor – consists of several projects, including South Caucasus Pipeline extension (SCPx), Trans-Anatolian Pipeline (TANAP), Trans-Adriatic Pipeline (TAP) – because of the importance of this project for Azerbaijan to transport natural gas to Europe. At the time, SCPx was already completed and ran alongside BTC oil pipeline. In addition to this, presidents of Azerbaijan and Turkey inaugurated TANAP on 12 June 2018. The country’s GDP increased 5 times between 2003-2016, reaching 37.848 billion USD from 7.276 billion USD.
Aliyev, since the start of his presidency in 2003, has adopted 5 anti-corruption plans, including State Programme on Fight Against Corruption (2004-2006), National Strategy on Strengthening Transparency and Fight Against Corruption (2007-2011), National Action Plan on Fight Against Corruption and Promotion of Open Government (2012-2015) and National Action Plan on Promotion of Open Government (2016-2018). On top of these actions, the Law on Fight against corruption came into force and the Anti-Corruption Directorate under General Prosecutor Office was formed on 3 March 2004. According to Transparency International’s Global Corruption Barometer 2013, 69% of respondents say that government’s efforts are effective to fight corruption.
In general, during Heydar Aliyev’s mandate, the political stability recovered in Azerbaijan. Azerbaijan became a part of the GUAM bloc (Georgia, Ukraine, Azerbaijan, Moldova), which presented a counterbalance to Russia in the region. Under the conditions of political stability, several reforms and privatization were implemented and economic growth was observed during this time.
As a result of these democratization efforts, Azerbaijan was elected as a non-permanent member of United Nations Security Council in 2012, thus being the first country in South Caucasus and Central Asia region to take this function. In order to strengthen democratic consolidation, Aliyev implemented several reforms in the recent months, which resulted in the replacement of old ministers and government officials, who were holding office for 20-25 years, by a younger generation. Public opinion towards the president’s actions also seems to be positive as well. According to a survey conducted by Opinionway, a French research center, 85% of the people appreciate President Aliyev’s actions as positive, while 80% of those perceive that stability in the country is due to Aliyev’s positive moves.
Furthermore, one expected outcome is the creation of more democratic institutions. On 5 December 2019, President Ilham Aliyev signed a decree on the dissolution of the parliament and a new parliamentary election. The latter will be held on 9 February 2020 and results are expected to be positive as well.
One negative issue remains: Nagorno Karabakh. Despite more than 20 years of mediations through the OSCE Minsk Group, no political result to this conflict has been found yet. Sometimes escalation can be observed at the border, leading to death for both sides.
Azerbaijan’s way to democratization has been tough and even bloody at times. But lots of progress was made, especially on democratic consolidation, while Azerbaijan continues on the path of nation-building with new reforms and policy perspectives. Democratic widening has been achieved under the corporation of democratic principles in public and private areas. Under the roof of new executive and future legislative bodies, the country will show a more positive image on the basis of democratic consolidation.