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Azerbaijan Vision 2020

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After declaring its independence in 1991, Azerbaijan found itself fighting battles on multiple fronts against an economic collapse, political chaos, and an inter-ethnic conflict with Armenia over Nagorno-Karabakh. The staggering crisis within the country posed a great challenge for the Azerbaijani government under the leadership of Heydar Aliyev. However, several developmental strategies and effective policies introduced by the government helped Azerbaijan get back on its feet into time. By late 1990s,Azerbaijan was on its way to economic revival.

One of the first victories of Azerbaijan in the economic sector was brought about by the signing of “contract of the century”. New economic reforms established a favorable environment for investment and led to socio-economic development within the country. Similarly, comprehensive institutional changes allowed the government to prevent hyperinflation and regulate the macroeconomic balance. Soon, the dynamics of economic growth in Azerbaijan shifted. Through the extraction and export of natural resources, the country saw an economic boom. By 2011 Azerbaijan’s strategic country reserves reached up to 41.5 billion US dollars.

The transition was not limited to the economic sector; substantial efforts were made for the effective resolution of social problems. A new social security system was established in accordance with international standards. The quality of medical services was improved manifolds and all health-based institutions were given up to date equipment and hardware. Likewise, the educational infrastructure was also strengthened by increasing budget allocation. This allowed the government to modernize the educational system, renew the syllabus, and integrate the Azerbaijan education into the European education system. Moreover, computerizing education was one of the fundamental steps that took the education system of Azerbaijan to the next level.

Lastly, the chaos brought about due to the political transition within the country was addressed through the formation of a transparent democratic society. Political pluralism served as the basis of public progress and political parties were allowed to play a significant role in running the country’s political system and growth of the civil society. This new democratic system revolutionized the structure of the society allowing citizens to have a much active role in the politics of Azerbaijan.

The successful transition in almost all sectors of Azerbaijan was the result of a well-thought consistent state policy, strong leadership, and strategic implementation. The policy makers successfully deciphered the interconnectedness of all sectors namely: economy, health, education, and politics. Understanding this interplay between different sectors helped Heydar  Aliyev devise a policy that would help solidify the foundation of the state and this was to be done by inducing economic progress. In other words, once a strong and sound economy was established, it allowed the government to strengthen other state departments through the reallocation of budgets, thus boosting the overall progress of Azerbaijan. Soon enough the country was out of turmoil and on its way to become one of the most influential states in the South Caucasus.

Need for a New Vision

The socio-economic reforms introduced by Heydar Aliyev successfully mended various departments within the state. Once the foundation was solidified, the policy makers had a chance to dig deeper in order to resolve certain impediments that were still prevalent within the country and could hamper its progress in the future. Thus, President Iiham Aliyev soon signed a decree to approve a development concept known as “Azerbaijan 2020: A look into the future”. This concept was developed for two main reasons: to further strengthen all sectors of the country and to keep up with the rapid advancements in the world.

In the current situation, the reforms of Heydar stand short of what is required in the 21st century.The government faces new challenges that can only be addressed through the formulation of up to date policies and this development concept provides exactly that. Moreover, now the aim of the government isto not only focus on inward but outward reforms as well that would allow it to keep up with the volant spread of information and communication technologies. In addition, globalization has been affecting the socio-economic life of most countries and Azerbaijan is no exception. Thus, it needs an effectual state policy that will allow it to adapt to these changes. The Azerbaijan vision 2020 has successfully understood the challenges and provides a comprehensive outlook on how to counter them.

The principle strategic view of the concept is to avail all the current available opportunities and resources to attain sustainable economic growth, significant social welfare, supremacy of law, effectual state management and the same time ensure human rights, freedom and development of civil society[i]. The document was approved on the basis that by 2020, Azerbaijan would a competitive state that is economically and politically developed. The government wishes to increase employment, decrease poverty, develop human capital, and ensure that all citizens have access to health care and that the environment is protected. The development concept has clearly highlighted the principle agendas that Azerbaijan needs to invest its time and money into; it provides a vision of how the country should be by the end of 2020.

  1. Increasing the Competitive Power of the Economy

One of the first agendas of the concept is to ensure that the economic system of Azerbaijan is effective enough that it can compete globally. Statistics show that a state’s economic growth can increase manifolds through state regulations within the market and continuous improvement of these regulations in accordance with the market requirements. Thus, Azerbaijan must strengthen the states regulatory and administrative functions in order to improve the business environment, maintain macroeconomic stability and at the same time be able to carry out large infrastructure projects and ensure free competition. In the light of the current pandemic, the government has created four working groups that are to build special proposals to curtail the negative effects of coronavirus on the country’s economy, employment issues, macroeconomic stability and business entities thus ensuring that the country does not lose sight of the 2020 vision.

The document further states that an appropriate monetary policy will be conducted with the target to keep inflation in check and guarantee the stability of the financial sector. The development of fiscal disciple will be given special attention to increase the efficiency of expenses and the efficiency of fund distribution. Similarly, passive taxation policies are to be transformed into active taxation policies and the tax rates are to be improved to create an environment that is favorable for business activity. According to the 2019 World Bank Doing Business report, Azerbaijan reached the 24th position up from the 57th position in 2018.This brought the country one step closer to achieving its 2020 vision.

Furthermore, efforts are to be made by the Azerbaijani government to enhance and simplify foreign trade and support entrepreneurs to increase their competitiveness in the foreign market. Preferential loans given to businesses by the state will increase, the government will help small and medium size businesses to expand and strengthen their export capabilities. One of the most crucial steps taken to support small businesses was to restrict monopoly and strengthen anti-monopoly laws. This ensured that the markets had a fair competition. In addition, efforts will be made to eliminate factors that may put the local businesses at risk. In accordance with these policies in the year 2018, Azerbaijan exported goods worth $19.9 billion and imported goods worth $11.9 billion thus, resulting into a positive trade balance of 8.01billion dollars.

All the economic objectives set out in the development concept aim to modernize the economic system of Azerbaijan. It is clear that with these policies, Azerbaijan is leaning towards the west and wishes to inculcate their policies within its own sectors. The country is trying to move further away from Russian influence and wishes to abolish any major policies that were once a part of their economic system during the pre-independence era. At the same time, they want to launch their markets internationally which have been for long limited to the oil sector only.

1.1 Decreasing Dependency on the Oil Sector

While continuous work is being done on the oil sector by restructuring and modernizing the systems of extracting, transporting, and refining the oil, the government is also making efforts to develop the non-oil sector. New enterprises are to be created, other industries such as aluminum, cement and fertilizer will be developed. Alongside the development in non-oil processing industries, the main sphere of the state investment policy will be to stimulate the formation of industrial estate infrastructure in the economic districts. Similarly, foreign, and local investments in non-oil sector will be intensified through stimulating mechanisms. Creative and intellectual activities will be supported and encouraged. Special attention will be given to the agricultural sector by increasing production capability, banks will be encouraged to give out loans to farmers and modern equipment will be made available to them.

The Azerbaijani government seems ambitious and eager to reduce its dependency on the oil sector and while these reforms look promising, their proper implementation and outcomes are bound to take a lot of time. Azerbaijan for long has been generating its revenues through the export of oil and, thus a sudden shift is not only impossible but may also shake the economy. While some progress has been made in the recent years, studies show that the oil sector is still the primary economic driver as it directly makes up 44% of the country’s GDP and more than 90% of the exports however, only employs 5% of the total population of the country. Therefore, while Azerbaijan does not to strengthen other enterprises, businesses and industries, the shift must occur gradually and systematically.

  • Balanced Development and transport infrastructure

If Azerbaijan wishes to turn itself into a regional trade hub, it must make use of its geostrategic location by establishing effective transport and transit services and develop logistical centers in various regions throughout the country. This will not only lead to foreign and local investment, but also help give out employment opportunities. The development concept states that the government will take measures to integrate the national transport system of Azerbaijan with the international transport system. To stand out in the North-South and European-Caucasus-Asia transport corridors, the time of export and import operations will be reduced, the procedures will be made simpler and the cost of sending a cargo to Azerbaijani territory will be reduced. The country’s road in these corridors will be brought in line with the international standards. Similarly, new roads will be developed, and the railway system will be restored and modernized; same goes for air transport. Special development projects will be carried out to improve the infrastructure in rural areas and villages.

If Azerbaijan is successful in carrying out these plans, it will stimulate balanced socio-economic growth within all regions of the country. Inequality and sharp differences in the rural and urban areas will be reduced. Moreover, the burden on city centers will decrease and less people will migrate from the rural areas in search of jobs. Furthermore, once the time for exports and imports is reduced, more trade will be carried out using Azerbaijani territory hence, leading to greater revenue generation.

  • Development in Social Spheres

Social Developments must go by side the economic developments; thus the 2020 concept puts special emphasis on how social sectors in Azerbaijan will be upgraded.

      3.1 Health Sector

 Azerbaijan wishes to increase its funding to the health care system and aims to construct, reconstruct, and refurbish health institutions throughout the country. The extreme centralization of management will be abandoned, and the power will be distributed among various management entities. The state will work on fighting diseases and implement preventive measures. Educational programs will be carried out against smoking alcoholism and drug addiction. There will be mass health examinations and preventive checkups for children and teachers. Above all, the government will make sure that medicines are physically and economically available to the entire population and ensure that all medicines are licensed and of high quality.

3.2 Educational system

Reforms have been made to increase the quality of education; programs have been drafted and implemented to rationalize general education institutions. Systemic measures will be taken to encourage the intellectual thought process of students. Furthermore, electronic education technologies will be made available to schools in order to create a virtual yet, effective learning environment for students. The aim is that every classroom must have laptops, projectors, and an electronic table. Most importantly, teachers must be trained to specialize in interactive teaching technologies. Internationally speaking, the government wants to increase the participation of educational institutions especially higher education institutions in international programs.

One of the main objectives of these reforms is to integrate the Azerbaijani education system with the European system. Once the reforms are implemented in their full essence, the standard of their education will be enhanced, more international students are likely to enroll in Azerbaijani universities and take part in cultural exchange programs that will in turn help promote and secure the cultural heritage of the country. Increased international recognition of higher education in Azerbaijan will without doubt prove to be fruitful for their education system.

3.3 Social Security System

A new state program 2016-2020 has further deepened the current pension reforms. As a result of this, not only the state social system will improve, but in fact a saving mechanism for state pension will be established. Access to information about the social insurance fee present in an individual’s account will be made easy. Next, the process of registering insurers will be completely automated, these insures will automatically be registered in the insurance system. Unlike before, the citizens will not need to come up any documents to receive pensions. Moreover, the pensions will be appointed to citizens in an automatic way through a single center. Furthermore, the system that selects which families are in need for social aid will improve, rehabilitation centers will be created for the homeless, young displaced persons will be helped and work will be done to improve the conditions of labor that has migrated to foreign countries.

  • Protection of environment

One of the fundamental targets of this development concept is to carry out socio-economic development while keeping ecological factors in mind. For this reason, effective monitoring and supervision systems are to be developed. Measures will be taken to control deforestation and desertification. Land that has become unusable as a result of industrial activates will be restored. Progressive methods will be introduced in the waste management sector and the percentage of recycling will be increased. During construction projects the environment will be prioritized and most importantly the negative effect of extraction of oil and gas will be neutralized.

One of the biggest contributors of pollution in Azerbaijan is its oil industry; however, little attention has been given in the development concept to curtail its effects.No clear policy has been introduced to monitor the activities of oil industries that continue to degrade the air, land, and soil of the country. The Caspian Sea as a result of oil drilling has been severely contaminated thus killing the habitat of sea life. Special attention must be given to limit the devastating effects of oil industry on Azerbaijan in the long term. 

  • Strengthening legislation and government institutions

In order to achieve all the reforms mentioned above, consistent measures should be taken to improve and strengthen the legislation and governmental institution of Azerbaijan; only then will the vision of 2020 truly be achieved.

The objective of the 2020 concept in this case is to update the law enforcement agencies and bring them in line with the international standards. The infrastructure of the court must be improved, this means electronic services will be introduced and citizens will have a greater chance at getting justice. The potential of the institutions will be nourished for the effective implementation of laws and new reforms. The state will fight against corruption in all sectors, the transparency of the government will be increased, and citizens will be given greater access to state information.

Recommendations

The 2020 Azerbaijan development concept is a comprehensive and versatile understanding of the impediments currently hindering the progress of Azerbaijan and at the same time, it has successfully drafted policies that will help the government counter these impediments in order to secure and strengthen the socio-economic conditions of Azerbaijan in the long run. However, a few steps must be kept in mind for the successful and through implementation of the entire concept:

  • A new government agency must be created that determines through statistical analysis which sector should be prioritized first and how its improvement effects the other sectors
  • A special mechanized system must be established that monitors the implementation of all new reforms and finds out how they can be improved
  • Data regarding the progress in all sectors should be collected on a yearly basis
  • The reforms should not be limited to the 2020 development concept; new reforms should be introduced in accordance with the requirements as the world moves towards greater advancement
  • A special anti-corruption force should be created which keeps a check on the implementation of the reforms in their true essence

[i] Government of Azerbaijan,Azerbaijan 2020: Look into the Future” Concept of Development,(Baku, 2012),9.

A student at the National Defense University, Islamabad pursuing a bachelor's degree in International Relations.

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Eastern Europe

Relations between Azerbaijan and the European Union

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The crises, revolutions, and wars of the first half of the 20th century led to serious geopolitical upheavals, economic crises, and serious violations of social justice. Formally formed after the end of World War II in 1945, liberal economic organizations such as the United Nations, GATT and the European Union focused on the formation of liberal internationalism in international relations and the transition to a global system of government (Dower & Williams, 2002). The failure of the liberal steps taken by the League of Nations in 1920 led to major economic crises in the second half of the 20th century. As a result of these economic crises, the end of socialism in international relations with the USSR in the 1990s, the emergence of independent states and liberal internationalism’s efforts to reach a global level reshaped both geopolitical positions in international relations and global economic forces and the system of international relations (Christopher S. Browning, 2013). After the degradation of the left ideology with the USSR, the emergence of independent states moving towards liberal values made the role of international organizations formed in the post-World War II period even more important. This article also provides information on the liberal relations between the Republic of Azerbaijan, which gained independence in the 1990s and the European Union.

General introduction to relations between Azerbaijan and European Union

The wave of democratization that began in 1974 began to radically change international relations. This democratization mainly covered the former USSR states; namely, the former communist states, geographically. After leaving the USSR, these states entered a very difficult process of democratization. Because for many years they lived in a totalitarian political system, as well as in a communist-planned economy. This directly prevented their transition to liberal multi-party democracy as well as to the “laissez faire” capitalist economy. Because, initially, the reforms were carried out with instructions from abroad. (namely, with instructions from global organizations, such as the International Monetary Fund, the World Bank, etc.). Second, these countries did not have a strong economic base that would suddenly transition to market capitalism. Third, a culture of respect for individual freedoms was not ingrained in the policies of these states (Heywood, 2013). Therefore, after the collapse of the USSR, the newly independent states began to work closely with the European Union to accelerate the transition to globalization and democratization. Azerbaijan, one of these states, also became an active participant in international relations and international politics in 1991, building its relations with the West and the European Union on the principles of mutually beneficial cooperation, good neighborliness and peaceful coexistence.

The prospects of Azerbaijan’s relations with the European Union were mainly based on internal and external factors. Unlike other countries in the South Caucasus, Azerbaijan’s relations with the European Union are mainly in support of economic and political reforms, the establishment of the East-West transport and communication corridor, infrastructure development, etc. (SAM, Main directions of Foreign Policy of the Republic of Azerbaijan, 2017). Azerbaijan’s strategic transit position in the South Caucasus region, its location at the crossroads of land and air routes between Europe and Asia, and its role as a major distribution hub in Eurasia are of great importance to the European Union (Azerbaijan’s gas policy: challenges and dilemmas, 2009). One of the main tools for the European Union to interact with the countries of the South Caucasus was the European Neighborhood Policy. The inclusion of the Republic of Azerbaijan in the ENP program in 2004 enabled Azerbaijan to implement many of its economic, political, legal and administrative reforms within the ENP, and for this purpose Azerbaijan received financial and technical support from the European Union (SAM, Main directions of Foreign Policy of the Republic of Azerbaijan, 2017). It should be noted that in addition to the European Neighborhood Policy program in its relations with the European Union, the Azerbaijani state joined the Eastern Partnership project at the 2009 summit in Prague. As the Eastern Partnership is an initiative of Poland and Sweden to improve relations with the CIS countries within the framework of the European Union’s neighborhood policy, it initially played a very important role in Azerbaijan’s foreign policy (EEAS – European External Action Service, 2018).

However, neither the European Neighborhood Policy nor the Eastern Partnership promised security guarantees for Azerbaijan’s foreign policy in the next stages of Azerbaijan’s foreign policy, so Azerbaijan did not sign the Association Agreement and began negotiations with the EU for a new comprehensive agreement such as the Strategic Partnership Agreement (Shahin Abbasov, Jan18, 2011). Because in the foreign policy of Azerbaijan, there were economic and political reasons for not signing the Association Agreement of the European Union. Initially, the Association Agreement was not successful on the example of Azerbaijan. Because both sides had different requirements and needs. Secondly, this agreement was of no economic or political benefit to official Baku. However, Azerbaijan has been pursuing numerous projects with the European Union since the 1990s in many areas (energy, transport, education, culture, agriculture, regional development, economic, political and institutional reforms). As oil and gas from the Caspian Basin play an important role in ensuring the EU’s energy security, the European Union itself understands the geopolitical realities of Azerbaijan and acts accordingly (Elkhan Suleymanov. EU-Azerbaijan relations, 2011). Azerbaijan has existed with the European Union not only in the energy and economic spheres, but also in the social and political spheres. However, the relations within this framework have gradually weakened and lost their value. Although the European Union has taken an open position on Azerbaijan’s territorial integrity, IDPs, Armenia’s occupation policy and existing UN resolutions, and has even adopted declarations, these principles have subsequently weakened. The first reason is that since both Azerbaijan and Armenia are parties to the Eastern Partnership, the European Union’s inaction in the conflict has affected the activities of the Eastern Partnership. In addition, although Azerbaijan itself is a modern and secular country, it often faced double standards of the European Union.

Historical and legal basis of Azerbaijan-EU relations

After gaining independence in 1991, Azerbaijan began to take an active part in building relations with Western countries and in international politics on the basis of the protection of statehood and national interests, as well as the principles of mutually beneficial cooperation, good neighborliness and peaceful coexistence. The fundamental requirements of state-building after the collapse of the USSR created a good basis for building relations between Azerbaijan and the European Union member states at both bilateral and multilateral levels. Due to its geographical proximity, important geostrategic location, availability of significant energy resources, Azerbaijanis a country of traditional interest to European countries (Sadigov R. The South Caucasus factor in the Eastern policy of the European Union. Politicale.ü.fddissertation, Baku, 2011, p.52). In general, in the first years of independence, the prospects of Azerbaijan’s relations with the European Union were based on internal and external factors. Internal factors included the continuation of reforms in the political, economic and social life of Azerbaijan to achieve the standards of the European Union, the full liberalization of the domestic market, production and services, and the completion of the country’s democratic transformation. External factors included the settlement of the conflicts in the South Caucasus, including the settlement of the Armenian-Azerbaijani Nagorno-Karabakh conflict, joint cooperation between the countries of the region, security cooperation, the formation of a unified legislative, executive and judicial authorities in all three countries (Mammadov N, p.285). In general, the Republic of Azerbaijan declared in 1993 that Azerbaijan was interested in establishing relations with the EU. By signing the “Partnership and Cooperation Agreement” with the European Union, Azerbaijan began official relations with the EU. The European Union sent its first representative to Azerbaijan in 1998, and in 2000 the Permanent Mission of Azerbaijan to the EU was opened in Brussels. The Representation of the EU Commission in the Republic of Azerbaijan has been operating in Baku since February 4, 2008. This body was later renamed the Delegation of the European Union to the Republic of Azerbaijan. The appointment of the EU Special Representative for the South Caucasus on 7 July 2003 was a step towards increasing the organization’s activity in the region (Ahmadov E, p. 227).

The European Union has developed a “Technical Assistance to the CIS” program to provide financial assistance to countries belonging to the new group of democracies, such as Azerbaijan, to implement democratic reforms, create a market economy, develop interstate trade and transport relations and improve the customs system. In 1992-2006, more than 414 million euros in humanitarian, technical and food assistance was provided to Azerbaijan within the framework of the EU’s TACIS and other assistance programs (E. Ahmadov, 241). In addition, serious steps have been taken between Azerbaijan and the European Union in the field of human rights and politics. The Partnership and Cooperation Agreement between the European Union and the Republic of Azerbaijan was signed in Luxembourg on 22 April 1993, providing for cooperation in trade, investment, economy, legislation, culture, immigration and the prevention of illicit trade and laying the legal basis for bilateral relations. This agreement can be considered as one of the most successful pages in foreign policy, as it is the legal basis for expanding relations between Azerbaijan and EU institutions. The EU-Azerbaijan Partnership and Cooperation Agreement entered into force in 1999 after ratification by the Azerbaijani Parliament.

European Neighborhood Policy

One of the main tools for the European Union to interact with the countries of the South Caucasus was the European Neighborhood Policy. In 2004, the Republic of Azerbaijan was included in the ENP program. The central element of the ENP is the Action Plan agreed between the EU and each partner country, which sets out a number of short- and medium-term priorities for the country. The “Azerbaijan-EU Action Plan” was adopted at the meeting of the Azerbaijan-EU Cooperation Council held on November 14, 2006 in Brussels (E. Ahmadov, p. 240). The action plan identifies a number of priority areas of cooperation between the European Union and Azerbaijan. These are: mainly the peaceful settlement of the Nagorno-Karabakh conflict; strengthening democracy; strengthening the protection of the rule of law, human rights and fundamental freedoms; improving the business and investment climate; improving the work of the customs service; support for balanced and sustainable economic development; improvement of economic legislation and administrative practice; Deepening energy and transport cooperation between the European Union and Azerbaijan; strengthening cooperation in the fields of justice, freedom and security, including border issues; strengthening regional cooperation (Mammadov N. Foreign policy: realities and vision for the future. Baku: QANUN, 2013, p.212).The cooperation carried out within the ENP allows Azerbaijan to establish economic relations with EU countries, establish preferential trade and credit regimes, labor, market relations and migration, fight against drug trafficking and organized crime, promote investment, attract new financial sources, etc. opened up opportunities such as (N. Mammadov, p. 287).

Eastern Partnership

The Eastern Partnership initiative was launched by Poland and Sweden at a meeting of EU foreign ministers in Brussels on 26 May 2008. The initiative covers Azerbaijan, Georgia, Armenia, Ukraine, Moldova and Belarus. A joint declaration was adopted at the EaP Summit in Prague on May 7, 2009, and the EaP officially began operations. The EaP intends to raise relations between the European Union and the member countries of the program to a higher level, to continue and expand existing cooperation in bilateral and multilateral formats. Azerbaijan also joined the Eastern Partnership program at the 2009 summit in Prague. The EaP program was a different framework from the Partnership and Cooperation Agreement. Thus, in order to establish closer ties with each partner country within the EU, the signing of new association agreements instead of existing partnership and cooperation agreements within the bilateral format, the establishment of a Deep and Detailed Free Trade Zone with a partner country in the WTO, as well as gradual visa requirements. liberalization, deeper cooperation to strengthen the energy security of partner countries and the EU, etc. planned. In other words, the EaP program did not promise the prospect of EU membership, but only a free trade agreement and associative political cooperation with this body, which provided for deep economic integration. However, neither the ENP nor the EaP did not sign the Association Agreement and began negotiations with the EU for a new comprehensive agreement, such as the Strategic Partnership Agreement, as Azerbaijan did not promise EU membership or any security guarantees. Because both the ENP and the EaP were programs that reflected the interests of the EU and the political and economic interests of the partner countries. On the other hand, the signing of the Association Agreement was not economically attractive for Azerbaijan. Because Azerbaijanis not a member of the World Trade Organization, which is one of the main requirements for signing the “Deep and Comprehensive Free Trade Agreement”. On the other hand, the Association Agreement would not give a significant vote to Azerbaijan within the EU Customs Union. In addition, membership in the association would not reduce the share of oil and gas exports, which account for more than 90% of Azerbaijan’s exports, in the short and medium term. In general, Azerbaijan views the entry into any customs zone from three perspectives: political independence, economic efficiency and the Nagorno-Karabakh conflict.

In addition, the European Union must accept that both sides have different requirements and needs. Therefore, before the EA Summit in Riga in 2015, Azerbaijan submitted a proposed document on the Strategic Partnership Agreement to the EU. Azerbaijan, like Georgia, Moldova and Ukraine, did not sign the Association Agreement, so it preferred to sign an agreement that has a separate legal force and reflects the national interests of the country. On 14 November 2016, the EU Council of Ministers mandated the European Commission and the High Representative for Foreign Affairs and Security Policy to begin negotiations on behalf of the EU member states on the signing of an agreement between the EU and Azerbaijan. It should be noted that the new agreement will replace the 1999 TES and will be a new large-scale agreement with a legal obligation. Unlike other framework documents, the STS will address the common problems and goals facing Azerbaijan and the EU and will create a new basis for mutually beneficial cooperation and political dialogue between the two sides. The STS is a practical example of the “difference” approach outlined in the context of pursuing Azerbaijan’s interests in relations with the EU and in the updated version of the ENP (SAM, Main Directions of Foreign Policy of the Republic of Azerbaijan, pp. 324-326, 2017).

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Eastern Europe

Fundamental Reform Can Secure Armenia’s Long-Term Future

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In the past year, the world has changed an unfathomable amount; every country has faced new challenges in the face of the Covid-19 pandemic and the subsequent economic recession. The new global situation presents not only challenges but also the opportunity to think about new ideas, to work out how our energy and focus can be used to create a better future for individuals across the world.

Armenia is one country that has faced existential crisis in the past year; the pandemic, the economic crisis and of course the war in Artsakh. The war has exacerbated socio-economic issues, aggravated social division and resulted in ongoing political instability –all factors that have raised questions about Armenia’s future as a nation and on the global stage. Despite the pain of the last year, it has also given us the opportunity to reflect and rethink our model for fundamental reform in Armenia.

I have long argued that for Armenia to be truly successful, we need to unite and focus on the country’s future. We have a historic responsibility to our ancestors, those who faced persecution, to heal from the past and build a successful country for our children. By building on our unique identity and historic experiences, we can use them to guide our future. However, first we must face up to serious questions on how we would like Armenia to look in twenty to thirty years’ time.

Currently, lack of opportunity is causing Armenians to vote with their feet and leave the country, with an estimated 200,000 intending to leave Armenia this year. To stop this, we must together provide a future of opportunity and belief in success stemming from a change in mindset.

I do not believe that all of the problems we face can be solved by the Armenian state. Instead, both the Armenian authorities and the diaspora should leave political disputes aside in order to consolidate and, alongside international specialists and humanitarian organisations, assist in the building of new institutions, good governance and the development of the country. Engaging with international partners is critical to raising standards and finding effective solutions.

So far, attempts at developing Armenia have been blighted by a failure to unite and mobilise both the nation and diaspora. It is not an easy task, currently there are roughly 10 million Armenians living in over 100 nations. However, we must transform the relationship to one of interdependence and trust.

Until now, members of the diaspora have largely been viewed as a source of charitable aid – this causes disconnect and indifference. Instead of charity, which I believe is detrimental to Armenia’s future as it prevents organic, conducive reforms, the diaspora should invest in long-term projects with meaningful impacts. I believe a shared vision and hope for Armenia can be created through collaboration and the implementation of impact investment. However, a strong Armenian diaspora must become more aware of their responsibility in helping the Armenian nation develop, and by updating and strengthening their institutions, enhance and ensure the preservation of Armenian worldwide heritage.

Commitment and shared responsibility will encourage desire for success and provide a crux for wider development. A blend of commercial, social and philanthropic projects will help build a better more sustainable future for Armenia. Multi-purpose anchor projects – breakthrough projects used to serve the interests of the nation and its people – will help societal evolution.  Anchor projects in the education, technological, scientific and tourism sectors will serve as a way to unite a fragmented nation, by drawing people together through communication and exchange of ideas. Long-term investment and visionare necessary, as social impact investments slowly manifest themselves over 20-25 years. Therefore, close working relationships are essential, investors need to want to be part of the conversation and want to see the projects evolve to impact the wider community.

Re-establishing Armenia as a hub of excellence in education would not only aid development and attract investment, it would attract others to the country. Investment into educational projects is investing in Armenia’s future, and promotes talent, trust, collaboration and multiculturalism –in doing so educational projects have wide-ranging personal, local and global impact. Armenia has already shown it has the potential for success in the educational sphere; with the Tumo Centre, American University in Armenia, Russian-Armenian University, French University and United World Colleges movement all having centres in Armenia. We must utilise the opportunities we have for the implementation of further educational projects.

Additionally, investment into the science and technological space would have wide reaching effect. The development of science and technology is both tangible and lucrative.It will also drive explosive growth in the health, environment and knowledge economies. The FAST Foundation is leading the way in innovation in Armenia, numerous projects support budding scientists, technologists and innovators in Armenia and the global stage. It will amplify and empower scientific advancement in the country, aiming to position Armenia as the technical and scientific hub of the region.

By fostering a competitive economy in Armenia, we can attract further foreign direct investment and also immigration. Additionally, we need to encourage good governance by developing effective and accountable governmental and societal institutions, which commit to excellence and professionalism. Impact investment and the championing of good governance will create an attractive Armenia, where not only Armenians want to live, but also the diaspora, international students and businessmen and women. This would bolster demographic security by dampening the desire for emigration and creating the social and economic atmosphere needed to raise the birth rate in the country. A growing population would mean a larger workforce, which would allow Armenia to become a self-sufficient global player, one that can build regional and global alliances.

Whilst our geographical location at the crossroads of civilisations brings many benefits, we also face regional security threats, which was painfully evident during last year’s 44-day war. In order to bolster Armenia’s position regionally, we must first acknowledge our security situation and construct a more effective and forward-looking defence system. This will take a shift in thinking and a significant increase in spending, but more modern military thinking is needed to protect our borders and people. A reinforced and innovative security system will allow us to look forward and act to guarantee Artsakh’s physical freedom and security.

Armenia faces many challenges, but it also has a number of strengths and competitive advantages – which we must use; not only do the diaspora provide resources and experience of other systems, we are bilingual nation and a nation located at the cross-roads of four civilisations. Armenia’s geography between the Middle East, Europe and the Caucasus means we can take advantage ofa working relationship with the European Union through the Eastern Partnership whilst being a member of the Eurasian Economic Union and Commonwealth of Independent States. Russia in particular is interested in Armenia being competitive, and at the same time is the right ally to ensure regional security.

If we build on these advantages and focus on inter-dependency and responsibility, Armenians and the Armenian diaspora, in collaboration with international partners and humanitarian institutions, can build a successful country. By developing on a local level, we can look to eradicate inequality and push for a fairer more open society, one that is beneficial for all Armenians.

A strong Armenia with modern institutions and a well-educated society will improve the country’s position regionally and on a global scale; allowing Armenia to become a bridge between cultures and organisations.

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Eastern Europe

Shocking results of survey in Lithuania

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Lithuanian authorities in recent future could face harsh criticism from society and disagreement with current foreign and domestic policies.

The recent opinion poll has become the clear indicator of people’ dissatisfaction with government’s policy which resulted in loss of sovereignty of the country.

Lithuanian analysts were very confused with the results of the latest survey. On November 7-30, 2020, a representative survey was conducted by the company Baltijos tyrimai: 1004 residents of the country participated in it, the error of the results does not exceed 3.4%. The results of this survey shocked the researchers.

The study called “Lithuanian society’s susceptibility to disinformation. Narrative analysis.” (“Lietuvos visuomenės paveikumas dezinformacijai Naratyvų analizė”) made by Vilnius Institute for Policy Analysis was presented by one of its author – Gintaras Šumskas.

In an interview with Delfi, he admitted that this time the respondents were not given prepared statements with which they had to agree or not, they were not asked questions so that they could be interpreted ambiguously.

The analysis revealed the following narratives: COVID-19 destroyed the health care system in Lithuania, COVID-19 is used to manipulate and rule the society, Lithuania does not have an independent foreign policy, the Lithuanian educational system lays down the wrong values, the collapse of the USSR did not bring anything good, NATO takes away from members states money that would be better spent on the social sphere.

According to the results, it could be said that Lithuanians not only observe the situation but they analyse and make conclusions.

In time when COVID-19 pandemic almost seriously interfered with the normal daily life, the government wastes money conducting military exercises, deploying foreign troops and even increase military expenditures. The more so, in time when people have no money to burn their relatives who died from coronavirus, Lithuanian authorities declare that military threat is stronger than COVID-19.

The most surprising are the general answers. For example, 66% of the survey participants agree with the statement that “Lithuania is in vain to quarrel with Belarus and Russia, since bad relations will bring economic damage”, and more than half (54%) are convinced that “Lithuania does not have an independent foreign policy – everything is dictated by Brussels (EU) “, and 32% believe that Washington is in charge of Lithuania’s foreign policy.

There is nothing to add. Everything is said by ordinary people during survey.

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