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Azerbaijan’s response to COVID-19 related economic problems

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The spread of coronavirus (COVID-19) in Azerbaijan began in February. The first case of infection was recorded on February 28 and first death on March 12. As of April 17, Azerbaijan had 1,340 confirmed cases, 15 death and 528 people were recovered. The main source of infections was people who traveled to Azerbaijan from Iran – the epicentre of the outbreak in the Middle East. Despite the fact that Azerbaijan has border and close tourism relations with Iran, necessary measures have been taken in the early stages of the outbreak, which prevented the mass spread of the coronavirus. The first important measure was the closure of the border with Iran as of February 29 after the two Azerbaijan citizens who were returning from Iran tested positive for coronavirus.

As the the number of infections began to increase, other important and strict measures were taken. All land borders with the neighbors were closed and education and related activities have been suspended until April 20, later extended to May 4. Over 10,000 Azerbaijani citizens were evacuatedfrom other countries. Beginning from March 14, certain measures on social isolation began to be implemented, including the cancellation of large-scale events such as weddings, funerals and the closure of cinemas, museums and theaters.  

From March 24 according to the Article 25 of the Law of the Republic of Azerbaijan on sanitary-epidemiological safety the government declared special quarantine regime until May 4. Based on the rules of the special quarantine people above the age of 65 are banned from leaving home. Entry and exit to/from Absheron region which hosts Baku – the capital of the country and the second largest city Sumgayit and transportation between districts and cities was restricted (except the special-purpose vehicles). Along with these measures the operation of all shopping centers and the movement of subway trains (from March 31) in Baku was suspended.

Later, on April 5 the Azerbaijan’s government tightened quarantine rules in order to monitor movements of citizens and to encourage people to stay in their homes and apartments. According to the new rules, citizens could leave their homes only if they going to visit grocery stores, pharmacies, medical facilities and banks. For this citizens have to obtain permission by sending a text message.

Despite the fact that all taken measures are effective in preventing the mass spread of the coronavirus, it has also substantial economic implications. As the special working regime have been implemented in different sectors of economy during the quarantine, it has substantially weakened business activities and the development of different economic sectors. This situation created unemployment problems and financial risks. Taking into account the seriousness of the situation and the damage that workers and companies could face, the government stepped in to support the businesses, their employees and economy as a whole. For this purpose different economic and social measures began to be taken.

In order to coordinate all taken measures to fight COVID-19 on February 27 an operational headquarters under the Cabinet of Ministers was created. In the early March 10 million manat (5,9 million USD) was allocated to the Cabinet of Ministers to ensure that all necessary measures will be implemented on time. On March 19, President Ilham Aliyev announced the creation of the Fund to Support Fight Against Coronavirus and contributed his yearly salary to the fund. Also, additional 20 million manat (12 million USD) was allocated from the President’s Contingency Fund to the newly established fund to increase the effectiveness of the taken measures and to ensure material support to the medical workers providing relevant services. As of April 16, the total donations of different state agencies, companies and citizens to thefund have reached 112,233 million manat (65 million USD).

Also, on March 19 the President issued an order to allocate1 billion manat from the state budget to the Cabinet of Ministers for the implementation of measures to reduce the negative impact of the coronavirus pandemic on the economy, to ensure macroeconomic stability, to support employment and entrepreneurship. For the effective implementation of assigned measures the Cabinet of Ministers adopted an action plan which contains  theprogram of compensation for the damages to the entrepreneurs and their employees beginning April 8. The program covers 300,000 employees, 42,000 employers and about 300,000 private and micro-entrepreneurs. The program stipulates the allocation of 215 million manat (126 million USD) to preserve the salaries of the hired workers and 80 million manat (47 million USD) to support the individual entrepreneurs.

Along with supporting businesses the governmentallocated 400 million manat (235.2 million USD) to support social protection of citizens. Within the framework of the social package 190 manat ($112) lump-sum was planning to be paid to 200,000 unemployed citizens in April and May (then number was increased to 600,000). Another 50,000 unemployed people will get 300 manat aid per month. For the employees who had the salary higher than the monthly average the upper limit of social aid is set at 712 manat. Social protection measures also include the creation of 50,000 paid public jobs, the increase of monthly preferential electricity consumption limit for citizens by 100 kilowatts per hour in April and May, allocation of 40 million manat (23 million USD) for the training of students from low-income families and 280 million manat (164 million USD) for the vital passenger transportation. According to the taken measures in social sphere 20 million manat worth unemployment insurance payments will be expanded to 20,000 people. .

The government of Azerbaijan also began to implement the credit and guarantee support program which enables businesses to get loans with preferential terms. The total amountof funds allocated for this program is 1,5 billion manat (882,3 million USD). Through this program the government will provide state guarantee for 60% of new issued loans which amounts to 500 million manat (294 million USD). The highest percentage for the guarantee loans will be 15% and half of the percentage payments will be subsidized through the budget funds. The program will also support entrepreneurs with the existing loan portfolios who work in the coronavirus affected sectors. The government will subsidize 10% of the interest expenses of these loans for one year and for this purpose 1 billion manat (588 million USD) were allocated. All the measures related to the provision of preferential loans to businesses also support stability of the banking sector as without the government’s support the banking sector have risks to lose revenues that they acquire from the operations of these businesses. 

The economic support program of the government also envisages tax benefits, privileges and holidays for businesses entities. The tax payers engaged in catering activities will have simplified tax reduction and exemption from income tax. The import and sale of the products necessary for food and medical security and the raw materials that used in the production of these products will be temporarily exempt form Value Added Tax (VAT). Zero rate of the VAT will be applied to the services provided for the prevention of the pandemic. Tax concessions also include the extension of the deadline of income tax payments of 2019, provision of simplified tax exemptions to the micro-enterprises, the exemption from the property and land taxes until the end of the year, the exemption from the current tax payments for the specific industries, the exemption of the taxpayers from income tax for the relevant amount and period.

With the implementation of all these economic and social programs Azerbaijan became the country that allocated the biggest share of GDP to eliminate pandemic related economic problems among the post-soviet countries. All the budgetary funds that were allocated to support economic development, businesses and social protection of citizens reached 3 billion manat (1.8 billion USD)which is  12% of the state budget revenues and 3,5% of GDP. Creating favorable economic condition in the post-pandemic period is as important as supporting the economy in the period of the pandemic. Therefore, all programs under implementation and the huge amount of government funding will support the stability of economic development in the long-term period. 

Orkhan Baghirov is a leading research fellow in Baku based think tank named Center of Analysis of International Relations. He is PHD candidate in Public finance and fiscal policy. His areas of research include regional and international economic relations.

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Eastern Europe

Azerbaijan is to open an embassy in Israel: timely or little late?

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Image source: twitter @GeorgeDeek

Time to open that bottle!” tweeted with joy George Deek, Israel`s Ambassador in Azerbaijan on November 18, by posting a photo of wine flanked by the flags of the two countries. What lit him up was the decision of the Azerbaijani parliament to (finally) open an embassy in Israel.

The joy was shared by Israeli officials and media outlets: for instance, Prime Minister Yair Lapid praised the decision, calling Azerbaijan “an important partner of Israel and home to one of the largest Jewish communities in the Muslim world”. The Jerusalem Post, in its turn, referred to Azerbaijan as the first Shiite country to open an embassy in Israel.

The two countries have established and been successfully leading one of the unique, if not strange, case of partnership since the early 1990s: a Shiite Azerbaijan plays an incredible role in the energy security of the Jewish state surrounded usually by antagonistic states: according to some estimates, Israel receives 40-50% of its oil imports from Azerbaijan.

Another, no less important, director of the bilater relations is security-oriented. Israel has managed to become the largest supplier of weapons to Azerbaijan. SIPRI estimates that some 60% of Azerbaijan’s defense imports in 2015-2019 originated in Israel, while in 2020, that number jumped to almost 70%. This partnership benefited Azerbaijan, who successfully used the Israeli-manufactured state-of-the-art military technology during the 2020 Karabakh war to defeat its arch-nemesis Armenia and liberate the formerly occupied territories. The contribution of Israel to the historic triumph was acknowledged both by political elite and general society in Azerbaijan: seeing Israel flags, along with Azerbaijani and Turkish ones, across the entire country is therefore not uncommon nowadays.

Last May, amid regional tensions with Iran, reports emerged on Azerbaijan buying Iron Dome missile defense batteries. Then in October 2021, Azerbaijan reportedly considered buying Israel’s Arrow-3 missile defense system. Neither Israeli authorities nor Israeli defense firms commented on the news.

Another sign of deepening ties and mutual trust came to light lately when the Israeli government approved an emergency plan to receive Jews fleeing from Russia. The plan involves possible transition camps for Russian Jews in Finland and in Azerbaijan ahead of their arrival to Israel.

Add to this, Azerbaijani-Jewish diaspora who naturally forges the warm relations between the two countries. While the Jews were persecuted, oppressed and driven out both in Christian and Muslim worlds in the Middle Ages, Azerbaijan always served as a safe haven for them: an all-Jewish town just outside of Baku, Azerbaijan`s capitol city, Red Town is home to at least 4,000 people and is sometimes referred to as Jerusalem of the Caucasus. This fact also boosts the image of Azerbaijan as a reliable and amicable land in the Jewish perception. According to historians, the indigenous Mountain Jews have been living in geography for at least 2,000 years. A unique sub-group of the Jews, they now protect the interests of both Azerbaijan and Israel.

Despite the nearly perfect ties between the two countries, Azerbaijan had for decades avoided opening an embassy in Israel, although the latter has been diplomatically represented in Azerbaijan since 1993. The reason could be related to the assumption that such a move could alienate the huge Muslim world, most of whose members had been quite hostile towards Israel. However, things started changing with the signing of the Abraham Accords. The thaw between some Gulf countries and Israel heralded a new era in the Middle Eastern geopolitics and Azerbaijan had to rethink its relevant policies.

The signs of Azerbaijan`s intention to finally set up a mission in Israel had been observed for some years until when Baku opened Trade and Tourism Representative Offices in Tel Aviv in the summer of 2021.

While elevating its diplomatic presence in the Jewish state, Azerbaijan, known for its skillful balancing, did not forget Palestine and passed a parliamentary resolution on opening a representative office in Ramallah as well.

Yet, Azerbaijan`s historic decision amid its tensions with Iran and the comeback of Netanyahu, who is expected to resume Israel`s assertive policy especially in the Iran direction could not be only a coincidence. Intriguingly, in early October Israel`s Defense Minister Benny Gantz paid a visit to Azerbaijan, where he met not only his counterpart but also Azerbaijan`s president Ilham Aliyev. This visit overlapped with the attempts of Israel and Turkey to finally overcome their past disagreements and open a new chapter in the relations, something the Azerbaijani side had for years desired for and worked on.

It can be predicted that Azerbaijan`s foreign policy priority for the next period will be focusing not only on cementing bilateral ties with the Jewish state, but helping to establish what some Azerbaijani experts see as Azerbaijani-Israeli-Turkish triangle, a geopolitical constellation, which would also determine the regional picture in the coming years.

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Kiev is not interested in preventing war crimes

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Image source: war.ukraine.ua

The video of the execution of Russian prisoners of war by Ukrainian troops, which circulated in the media and social networks, is far from the only video recording of war crimes by Ukrainian army. Since the beginning of the Russian-Ukrainian conflict, videos of beaten and stripped prisoners of war and civilians suspected of collaborating with the Russians have appeared on the network. Records of torture also circulated widely.

At the same time, experts admit that there is a lot of cruelty on both sides, during the clashes almost no prisoners are taken, only Moscow does not promote violence, and Kyiv does not care about the promotion of war crimes. What are the reasons for such “public violence”, which can greatly compromise both the Ukrainian military and President Zelensky himself?

We could assume that the Russians commit many more war crimes, but due to the large number of military police and counterintelligence officers, they simply do not film them. It would seem that the answer lies on the surface – Russia is an authoritarian state, where phones are taken away from soldiers, and Ukraine is democratic. However, the reality is different, there is no democracy in the war, smartphones of military personnel in the conflict zone are trying to remove both sides. Moreover, as we have already pointed out, it is precisely in “totalitarian” Russia in the war zone that there are dozens of war correspondents who freely visit military units and could shoot such videos. It is true that a significant part of those journalists is under the control of the Russian army, however, they cannot control all of them. This is evidenced by the fact that more than once, due to journalists filming and revealing the positions of the Russian army, there have been losses of men and equipment in the Russian army.

But Russians are not characterized by cruelty. The main difference between Ukrainian nationalists and Russian fighters is different cultural traditions. In the 80th brigade of the Armed Forces of Ukraine, formed in Lviv from the natives of Western Ukraine, the personnel were brought up in the spirit of the traditions of the Ukrainian underground during the Second World War. Recall that then the supporters of Stepan Bandera shot back pro-Soviet and pro-Polish activists, including doctors and teachers sent to western Ukraine, and also massacred entire Jewish and Polish villages.

In the Russian mentality, mockery and mistreatment of prisoners is unacceptable. You can kill the enemy, but not torture. Russians in their ideology have always opposed themselves to the German Nazis with their concentration camps and gas chambers. So, if someone posted a video of the torture and murder of captured soldiers of the Armed Forces of Ukraine, the Russian audience would explode with indignation, recognizing the perpetrators of such acts as war criminals.

However, the true reason for the appearance of such videos lies not even in the different mentality of Ukrainian nationalists and Russians. In fact, Kyiv propagandists deliberately give the green light to such videos. This is primarily done to scare Russian soldiers and reservists. And official Kiev does not pay much attention to these crimes.

Take for example the recent Ukrainian war crime in Makiivka. The Ukrainian army immediately began to claim that the video was staged and fake. However, it was the Western experts who confirmed the authenticity of the video and the Western media exerted pressure to launch an investigation.

However, such video propaganda of cruelty actually has a much more serious purpose. Its main task is to form a stable feeling of hatred between Russians and residents of Ukraine. EU residents have little idea of ​​the mentality of the average Russian. The fact is that many in Russia sincerely consider the current war to be a civil one. Almost all Russians treat Ukrainians either as a very close people or as southwestern Russians. Half of the inhabitants of Ukraine have Russian surnames, relatives in Russia and use Russian as their main language. However, each such video should, according to the plan of Kiev radical propagandists, change the mentality of Russians more and more. They must hate all the inhabitants of Ukraine, stop treating them as “their own” and recognize that reconciliation with Ukraine and a new reunification with it is impossible. Peace will come sooner or later, but a steel wave of hatred will fall between the future Ukraine and Russia. At the same time, Russia’s desire to punish the killers of defenseless prisoners of war and civilians will also prevent the settlement of relations between Moscow and Kyiv for many decades.

The line of military contact between Russia and Ukraine is lengthening, fresh troops and new weapons are coming to the front from both sides. Obviously, the execution in Makiivka will not be the last video demonstrating the complete disregard of Kyiv, for “democratic values”, the Geneva Convention and human rights. The question involuntarily begs itself, does a united Europe need such a Ukraine, proud of the massacres?

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Eastern Europe

The Lying Propaganda-Phrase “Russia’s illegal invasion of Ukraine”

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photo:© Vitaly Nevar/TASS

Here is why Russia’s invasion of Ukraine on 24 February 2022 was actually legal under international law:

No one maintains that U.S. President John F. Kennedy lacked international legal authorization to invade the Soviet Union if the Soviet Union were to place American nuclear-warheaded missiles in Cuba 1,131 miles from Washington DC. Everyone recognized that if the Soviet Union and Cuba were to do that, it would constitute an act of aggression against the United States, because those missiles would be so close to America’s command-center in DC as to enable a blitz nuclear attack by the Soviet Union so fast as to possibly prohibit America’s strategic command to recognize the attack in time to launch its own, retaliatory, missiles.

This is the principle, that any major world power possesses the national self-defense right to prohibit any bordering nation from allowing weaponry and forces of a major world power that is hostile to this major world power to be placed in that bordering nation.

Whereas Cuba is 1,131 miles away from DC, Ukraine is only 300 miles away from The Kremlin.

JFK demanded from both Cuba and the Soviet Union that there will NEVER be Soviet missiles placed in Cuba, and the Soviet Union then promised that they would comply with that national-security demand by the U.S.; thus, WW III was averted.

This time around, the aggressors were America and Ukraine; and Russia imposed the same demand as JFK did, but its enemies were/are determined and clear aggressor nations — refused to comply.

Why does ANYONE allege that allowing the United States to place its missiles only 300 miles (a 5-minute missile-flight away) from The Kremlin would not constitute aggression by the U.S. and Ukraine against Russia? Allowing Ukraine into NATO would grant the Governments of U.S. and Ukraine a right to place U.S. missiles 300 miles from The Kremlin — something that no rational Government of Russia would ever allow to happen.

The Cuban-Missile-Crisis precedent acknowledged that Russia now has a national-defense right to demand that Ukraine NEVER be allowed into NATO.

On 17 December 2021, Russia demanded from both the U.S. and its anti-Russian military alliance NATO, promises in writing that Ukraine WILL NOT BE ALLOWED INTO NATO. On 7 January 2022, America and its NATO aggression-alliance both said no.

That left Russia either to capitulate to America and its NATO, or else to invade Ukraine in order to prevent that aggressor — America — from doing essentially what JFK had gotten the Soviet Union to do: to agree to the defending major world power’s extremely reasonable (actually necessary) demand and so promise NEVER to allow Ukraine into NATO.

America (and its NATO) forced Russia to invade Ukraine, in order to prevent nuclear “Checkmate!” by the U.S. regime.

All of the U.S.-and-allied propaganda organs (including academic ones) that use the lying phrase “Russia’s illegal invasion of ukraine” must therefore be recognized as being the liars that they actually are. (Otherwise: they must declare JFK to have been violating international law by threatening Khrushchev with an American invasion if Soviet missiles would be placed in Cuba.)

What the Cuban-Missile-Crisis example displays is a more detailed statement of the Westphalian Principle or “Westphalian State System” as Oxford Reference defines that:

OVERVIEW

Westphalian state system

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Term used in international relations, supposedly arising from the Treaties of Westphalia in 1648 which ended the Thirty Years War. It is generally held to mean a system of states or international society comprising sovereign state entities possessing the monopoly of force within their mutually recognized territories. Relations between states are conducted by means of formal diplomatic ties between heads of state and governments, and international law consists of treaties made (and broken) by those sovereign entities. The term implies a separation of the domestic and international spheres, such that states may not legitimately intervene in the domestic affairs of another, whether in the pursuit of self‐interest or by appeal to a higher notion of sovereignty, be it religion, ideology, or other supranational ideal. In this sense the term differentiates the ‘modern’ state system from earlier models, such as the Holy Roman Empire or the Ottoman Empire.

Richard Coggins

RTC

From:  Westphalian state system  in  The Concise Oxford Dictionary of Politics 

That cites two “Empires” — Holy Roman, and Ottoman — but actually ALL empires violate Westphalianism. That includes today’s American empire.

During WW II, the advocates of Westphalianism were FDR and Stalin, and the opponents of Westphalianism were Churchill, Hirohito, Mussolini, and Hitler. Truman and his personal hero Eisenhower became FDR’s successors, and both of them were opponents iof Westphalianism. This was the reason why the Cold War started: both of the first two American Presidents after FDR were imperialists. They created today’s military-industrial-complex-controlled America, the international American dictatorship that now exists and which has replaced FDR’s democracy.

An interesting sidelight to this is that whereas Sunni Islam, and the passion that some of them have for establishing an international “Caliphate,” accept imperialism or even advocate it (as Caliphate-proponents do), Shiite Islam opposes imperialism, and this has been one of the major reasons why Shiite Iran is rejected by all imperialistic Governments. Here is how Iran’s Ayatollah Khamenei phrased this in his 21 October 2006 “Leader’s Speech in Meeting with Soldiers and Commanders of the Sacred Defense Era”:

There are two major differences between a defensive and an offensive war in terms of meaning and content. One difference is that an offensive war is based on transgression and aggression, but this is not the case with a defensive war. The second difference is that a defensive war is a place where zeal, courage and deep loyalty to ideals emerge. These ideals may be related to one’s country or … one’s religion. …. This does not exist in an offensive war. For example, when America attacks Iraq, an American soldier cannot claim that he is doing it for the love of his country. What does Iraq have to do with his country? This war is at the service of other goals, but if an Iraqi person resists this military invasion and presence inside his country, this means showing resistance and defending one’s country, national identity and those values that one believes in. …

Since the day the regime of Saddam attacked Tehran and struck the airport until the day Imam (r.a.) accepted the resolution – was a glorious era. And it continued to be a glorious era until Saddam attacked again and our revolutionary and mujahid people took over the entire desert. Basiji youth from throughout the country participated in the war and they put in an astonishing performance. This time – the second time that Iraq had attacked – they managed to make it retreat.

Between 1953 and 1979, Iran had been part of (i.e., a vassal of) the then-growing American empire, and Khamenei in that speech made a principled repudiation of THAT America. But that America is now bipartisan in both of America’s political Parties, and is at war against the anti-imperialist nations of today, mainly Russia, China, and Iran — but also against any nation that is friendly toward any of those three. The anti-imperialist nations are pro-Westphalian; the imperialist nations are (and always have been) anti-Westphalian.

Today’s international law doesn’t mention the Westphalian Principle, because FDR had died and the U.N. (which he invented and named) became created in Truman’s image, not in FDR’s; and so it accepts imperialism (which FDR passionately despised and loathed). That’s part of the gutting of FDR’s envisioned U.N., which has resulted.

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