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A Fork In The Silk Road

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  • A Fork In The Silk Road

    A FORK IN THE SILK ROAD
    By Borut Grgic And Alexandros Petersen

    Georgiandaily
    http://online.wsj.com/arti cle/SB122522752774177399.html?mod=googlenews_wsj
    h ttp://georgiandaily.com/index.php?option=com_conte nt&task=view&id=7949&Itemid=132
    Oct 29 2008
    NY

    Generally considered to be a small, booming post-Soviet petro-state,
    Azerbaijan is a country on the maps of oil men but on the margins
    of Europe and the greater Middle East. Russia's August invasion of
    Georgia, however, has caused Western decision makers to take another
    look at the region, and Azerbaijan in particular.

    There is an increasing realization among Western strategists and
    energy producers that Azerbaijan -- nexus of the Black Sea and Caspian
    regions, neighbor of Russia, Iran and Turkey, and bottleneck for
    Western links to the rich resources and growing markets of Central
    Asia -- is a pivotal point in Eurasia. And, as this month's elections
    there showed, it is a country on the brink. Partly as a function
    of its geographical position, but also due to shifting dynamics of
    influence in the region, the leaders and population of Azerbaijan
    are being enticed to move in one of two general directions: toward
    Western integration or Russian-dominated "Eurasianism."

    Until now, Azerbaijan's leadership has pursued a canny "all options
    open" foreign policy, but one that was firmly oriented toward Europe
    and the broader West. Its former president, Heydar Aliyev, daringly
    challenged Russia's self-proclaimed sphere of influence long before
    Georgia did, by building the Baku-Tbilisi-Ceyhan oil pipeline and a
    parallel line for natural gas that directly reach Western markets. Baku
    actively lobbied for U.S., NATO and EU involvement in the region to
    provide for Caspian maritime security and to help solve its "frozen"
    conflict with Armenia over the territory of Nagorno-Karabakh.

    But Azerbaijanis were disappointed by the West's reaction to this
    summer's events in next-door Georgia, and the growing inclination in
    many European capitals to capitulate to Russia in the broader Black Sea
    region. While Russian tanks menaced Tbilisi, Baku began exporting oil
    through Russia and Iran. Now Moscow, a longtime friend of Armenia's
    in the Karabakh conflict, has begun quietly supporting Azerbaijan's
    position in the hopes of securing a deal for all of Azerbaijan's
    available natural gas exports. In the absence of incentives or
    even attention from the West, Baku is seriously considering a major
    foreign-policy reversal.

    This shift comes at exactly the wrong time for European and
    broader Western interests. This month, a British auditing company
    confirmed that the country across the Caspian from Azerbaijan,
    Turkmenistan, has the world's fourth-largest natural gas field and
    probably enough total reserves to meet export commitments to Russia,
    China and Europe. Kazakhstan is also stepping up its westward oil
    exports. The only route for these supplies to reach Europe passes
    through Azerbaijan.

    Western attention has lately been focused on governance in Azerbaijan,
    with election monitors from the Organization for Security and
    Cooperation in Europe giving Baku a balanced progress report on
    democratic development. The Oct. 15 election -- which the incumbent
    president, Ilham Aliyev, won handily with over 90% of the vote -- for
    the first time met most international standards and marked a genuine
    improvement in election conduct. There were missing elements too,
    namely the lack of a competitive campaigning climate. But Western
    preoccupation with the election process misses the full picture
    of governance in Azerbaijan and, more importantly, ignores the
    geopolitical imperatives of the region.

    In the past year, Azerbaijan was the world's fastest reforming country,
    according to the World Bank. It is a global leader in energy-sector
    transparency and sustainable development. Both the World Bank and the
    OSCE report that it has made significant strides in building viable
    institutions and bolstering the independence of its judiciary --
    claims that its democratic neighbor, Georgia, cannot make.

    But it is Azerbaijan's role as a regional weather vane that draws
    the most Western focus. The leaders of Kazakhstan, Turkmenistan,
    Uzbekistan and even Armenia look to Baku for signals of where they
    should take their multivector foreign policies. Should Azerbaijan let
    itself be wooed by Russia at the expense of its links to the West,
    a strategic chunk of Eurasia would likely follow suit.

    Western leaders must not only realize the geopolitical importance
    of Azerbaijan, but take action to strengthen ties that reflect
    that understanding. Above all, the EU must seek to foster conflict
    resolution in the Caucasus and build links across the Caspian --
    with Azerbaijan as a central partner in those efforts. After the
    conflict in Georgia, the key to doing so is Turkey, Azerbaijan's
    traditional cultural and linguistic friend, and the only NATO
    country to produce a serious and comprehensive plan for stability,
    cooperation and development in the region. Western capitals would do
    well to support Ankara's Caucasus Stability and Cooperation Pact in
    providing a workable forum for peace between Azerbaijan and Armenia,
    and a resolution of tensions in Georgia which menace energy, transport
    and trade links with broader Eurasia.

    Despite preoccupations with U.S. presidential politics and the global
    financial crisis, the West must engage Azerbaijan now. The geopolitical
    fate of the Eurasian continent is at stake.

    Mr. Grgic is chairman of the Institute for Strategic Studies in
    Ljubljana. Mr. Petersen is adjunct fellow with the Russia and Eurasia
    Program at the Center for Strategic and International Studies in
    Washington.
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