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Today's Zaman, Turkey
June 21 2012
Turkey, Azerbaijan and the United Kingdom: A triumvirate of prosperity?
by Vanessa Raine*
21 June 2012 /
At a time when the Western economies face serious recession, Turkey
and Azerbaijan have emerged as the parfum du mois in terms of
attracting the attention of businesses in the UK and elsewhere -- in
large measure thanks to their increased significance as rapidly
growing emerging economies, energy producers and regional hubs as well
as their roles in achieving peace and security in Eurasia and the
Middle East.
Both Turkey and Azerbaijan enjoy a special, historic relationship with
the United Kingdom, which has become all the more important in today's
bleak world circumstances.
Indeed, this year's annual The European Azerbaijan Society (TEAS)
Business Forum, Azerbaijan and Turkey -- Diverse Investment
Opportunities, captured this theme when it took place at No.4 Hamilton
Place in London, focusing as it did on a wide range of business
sectors, including energy, project finance, investment banking, ICT,
agriculture and fast-moving consumer goods. The event featured around
40 speakers, each providing comment and opinion on their field of
expertise, and attracted more than 250 lords, MPs, diplomats,
investors and businesspersons from the UK, Azerbaijan, Turkey and
across Europe. H.E. Ã`nal Çeviköz, Turkish ambassador to the UK, and
H.E. Fakhraddin Gurbanov, Azerbaijani ambassador to the UK, were among
the prominent participants.
Azerbaijan has one of the fastest-growing economies in the world,
mainly due to its oil and gas resources, but today it is clear much of
the `fruits' of this economy will now pass through Turkey to EU
markets. Few bilateral relationships have been closer during the past
two decades than Azerbaijan and Turkey's, with strong linguistic,
ethnic and cultural ties acting like diplomatic super glue. By late
2017, the State Oil Company of the Azerbaijan Republic's (SOCAR)
investments in the Turkish economy are likely to reach $17 billion,
making it the biggest international investor.
Azerbaijan-Turkey relations have always been strong, with the two
often being described as `one nation with two states' by the
ex-president of Azerbaijan, Abulfaz Elchibey, due to a common culture
and history. During the war of 1918, the 8,000-member Caucasus Islamic
Army rescued Baku from its enemies, while 1,130 Turkish soldiers were
martyred in Azerbaijani territory. Today there are war cemeteries for
the martyred Turkish soldiers in Baku, Shaki, Shamakhi, Goychay and
Neftçala. Turkey was the first state to recognize the independence of
the Republic of Azerbaijan, on Aug. 30, 1991, and provided all
economic, political and security support in Baku's difficult times.
Since this time, there were more than 500 agreements signed between
the two countries between 1991 and 2011, forming the legal framework
of their bilateral relations. The relationship particularly flourished
under the first independent government of Azerbaijan, following the
signing of the Protocol on Trade and Economic Cooperation leading to
military cooperation and the construction of the Baku-Tbilisi-Ceyhan
(BTC) and the Baku-Tbilisi-Erzurum (BTE) gas pipelines.
There have been separate phases in the relationship, one where both
nations have recognized their similarities, another when both nations
have behaved as strategic military partners. Turkey has been a staunch
supporter of Azerbaijan in its efforts to consolidate its independence
and preserve its territorial integrity -- defending the
Nagorno-Karabakh conflict resolution -- and more recently as the
ever-present business and geopolitical partner in the region.
Azerbaijani-Turkish trade volume, including the operations of the BTC
pipeline, increased from $250 million to $1 billion during 2001`09.
Given Azerbaijan's strategic importance between Russia and Iran, huge
energy resources and the daily security concerns that it faces in that
part of the world, fostering closer links with Azerbaijan seems to be
an extremely sensible way forward for the UK. This forum came at a
pivotal moment, with statistics indicating that the UK remains the
greatest contributor of foreign direct investment (FDI) to Azerbaijan,
amounting to 52 percent.
UK companies' role in Azerbaijan's economy
H.E. Peter Bateman, recently appointed UK ambassador to Azerbaijan,
acknowledged: `Azerbaijan ... experienced the highest GDP growth in
the world in 2005 at 35 percent. It is now time for this wealth to
benefit the rural areas of Azerbaijan but, as the country is destined
for 30-40 years of considerable oil revenues, this will happen.
Altogether, more than 150 UK companies are present in Azerbaijan, not
just in hydrocarbons, but in the retail and financial services
sectors, amongst others. The Azerbaijani middle-class is in its
ascendance, and there is also a huge construction boom taking place
across Baku.'
Let's not forget that Azerbaijan was the first secular democracy in
the Islamic world, created in 1918. It gave the vote to women before
women in the UK or the US had the vote, which is a tremendous history.
However, Azerbaijan's development was halted when it was annexed by
the Soviet Union back in 1920. Of course, Azerbaijan was under the
Soviet yoke for 71 years before its battle for independence began.
Today the key issue in relation to Azerbaijan's economy is energy
supplies. The country sits on the Caspian Sea, which has huge deposits
of oil and gas, which are strategically important. Azerbaijan is the
only country that can guarantee a gas supply through the southern
corridor without going through Russia. A pipeline exists to take gas
through Azerbaijan, bypassing Armenia, and then through Georgia into
Turkey and on to Europe. BP is investing billions in Azerbaijan's
hydrocarbon economy. At a time when the UK economy is slipping back
into recession, Azerbaijan is becoming an economic force to be
reckoned with in addition to its hydrocarbon resources: There are a
great many opportunities in financial services, agribusiness and
construction.
Relations between the UK and Turkey go right back to the early 16th
century when the first strong contacts between Britain and the Ottoman
Empire developed as trading interests in Britain sought new market
outlets in the East. The two nations have been at war several times,
such as in World War I. They have also been allied several times,
however, such as in the Crimean War. The UK is the second biggest
importer of goods from Turkey, after Germany. Turkey exports around 8
percent of its total goods to the UK. Around 2,000,000 Britons take
holidays in Turkey every year, while 100,000 Turks travel to the UK
for business or pleasure.
For Turkey, the UK was the 12th largest source of imports in 2011,
behind Italy and Spain as well as France and Germany among EU member
states. Overall, the UK has tended to fall in the ranking of Turkey's
import sources since 2000, as Turkey's energy demand has boosted the
position of Russia and Iran and emerging economies such as India have
made inroads. UK Trade & Investment (UKTI) described competition in
the Turkish market as `fierce.' However, as a destination for Turkish
exports, the UK has consistently ranked second or third in recent
years.
London wishes to strengthen UK-Turkey relations in large part because
it sees Turkey as an emerging economic power of significant potential.
In Ankara in July 2010, the UK prime minister described Turkey as
`Europe's BRIC' (referring to the Brazil-Russia-India-China group of
major emerging economies). Turkey has maintained a solid position as
the world's 16th largest economy since the mid-2000s. This means that,
in comparison to the economies of EU member states, Turkey is larger
than Belgium, Poland and Sweden and is advancing most immediately on
the Netherlands. Prime Minister Recep Tayyip ErdoÄ?an wants Turkey to
be in the global economic top 10 by the centenary of the republic in
2023 (something that might involve overtaking Indonesia, South Korea
or Mexico, or possibly Italy or Spain).
UK support for Turkey's accession to the EU has not diminished for the
last 30 years. Even in May 2008, Queen Elizabeth II said during a
visit to Turkey, `Turkey is uniquely positioned as a bridge between
the East and West at a crucial time for the European Union and the
world in general.' In 2010 Prime Minister ErdoÄ?an said, `This is the
golden age of Turkey-United Kingdom relations.' Referring to economic
and commercial relations, Erdogan said: `There are around 2,000
British investors in Turkey. More than 2.5 million British tourists
visited Turkey in 2009. Some 30,000 Britons have purchased real estate
properties in Turkey.'
The trilateral relationship between the UK, Azerbaijan and Turkey will
likely enhance commercial and political opportunities and benefit what
represents a triangle of prosperity in the region. If we add the EU
dimension to this strategic partnership, it will become even stronger
and expand the EU's outreach to the borders of Central Asia and Iran.
*Vanessa Raine has served as the business coordinator of TEAS,
www.teas.eu, for the past three-and-a-half years. Prior to that
position, she worked as a headhunter in the energy, telecom and
banking sectors as well as in strategic communications. The views
expressed in this feature are her own and do not necessarily reflect
those of any organization she is associated with.
[email protected]
http://www.todayszaman.com/news-284262-turkey-azerbaijan-and-the-united-kingdom-a-triumvirate-of-prosperity-by-vanessa-raine*.html
From: Baghdasarian
June 21 2012
Turkey, Azerbaijan and the United Kingdom: A triumvirate of prosperity?
by Vanessa Raine*
21 June 2012 /
At a time when the Western economies face serious recession, Turkey
and Azerbaijan have emerged as the parfum du mois in terms of
attracting the attention of businesses in the UK and elsewhere -- in
large measure thanks to their increased significance as rapidly
growing emerging economies, energy producers and regional hubs as well
as their roles in achieving peace and security in Eurasia and the
Middle East.
Both Turkey and Azerbaijan enjoy a special, historic relationship with
the United Kingdom, which has become all the more important in today's
bleak world circumstances.
Indeed, this year's annual The European Azerbaijan Society (TEAS)
Business Forum, Azerbaijan and Turkey -- Diverse Investment
Opportunities, captured this theme when it took place at No.4 Hamilton
Place in London, focusing as it did on a wide range of business
sectors, including energy, project finance, investment banking, ICT,
agriculture and fast-moving consumer goods. The event featured around
40 speakers, each providing comment and opinion on their field of
expertise, and attracted more than 250 lords, MPs, diplomats,
investors and businesspersons from the UK, Azerbaijan, Turkey and
across Europe. H.E. Ã`nal Çeviköz, Turkish ambassador to the UK, and
H.E. Fakhraddin Gurbanov, Azerbaijani ambassador to the UK, were among
the prominent participants.
Azerbaijan has one of the fastest-growing economies in the world,
mainly due to its oil and gas resources, but today it is clear much of
the `fruits' of this economy will now pass through Turkey to EU
markets. Few bilateral relationships have been closer during the past
two decades than Azerbaijan and Turkey's, with strong linguistic,
ethnic and cultural ties acting like diplomatic super glue. By late
2017, the State Oil Company of the Azerbaijan Republic's (SOCAR)
investments in the Turkish economy are likely to reach $17 billion,
making it the biggest international investor.
Azerbaijan-Turkey relations have always been strong, with the two
often being described as `one nation with two states' by the
ex-president of Azerbaijan, Abulfaz Elchibey, due to a common culture
and history. During the war of 1918, the 8,000-member Caucasus Islamic
Army rescued Baku from its enemies, while 1,130 Turkish soldiers were
martyred in Azerbaijani territory. Today there are war cemeteries for
the martyred Turkish soldiers in Baku, Shaki, Shamakhi, Goychay and
Neftçala. Turkey was the first state to recognize the independence of
the Republic of Azerbaijan, on Aug. 30, 1991, and provided all
economic, political and security support in Baku's difficult times.
Since this time, there were more than 500 agreements signed between
the two countries between 1991 and 2011, forming the legal framework
of their bilateral relations. The relationship particularly flourished
under the first independent government of Azerbaijan, following the
signing of the Protocol on Trade and Economic Cooperation leading to
military cooperation and the construction of the Baku-Tbilisi-Ceyhan
(BTC) and the Baku-Tbilisi-Erzurum (BTE) gas pipelines.
There have been separate phases in the relationship, one where both
nations have recognized their similarities, another when both nations
have behaved as strategic military partners. Turkey has been a staunch
supporter of Azerbaijan in its efforts to consolidate its independence
and preserve its territorial integrity -- defending the
Nagorno-Karabakh conflict resolution -- and more recently as the
ever-present business and geopolitical partner in the region.
Azerbaijani-Turkish trade volume, including the operations of the BTC
pipeline, increased from $250 million to $1 billion during 2001`09.
Given Azerbaijan's strategic importance between Russia and Iran, huge
energy resources and the daily security concerns that it faces in that
part of the world, fostering closer links with Azerbaijan seems to be
an extremely sensible way forward for the UK. This forum came at a
pivotal moment, with statistics indicating that the UK remains the
greatest contributor of foreign direct investment (FDI) to Azerbaijan,
amounting to 52 percent.
UK companies' role in Azerbaijan's economy
H.E. Peter Bateman, recently appointed UK ambassador to Azerbaijan,
acknowledged: `Azerbaijan ... experienced the highest GDP growth in
the world in 2005 at 35 percent. It is now time for this wealth to
benefit the rural areas of Azerbaijan but, as the country is destined
for 30-40 years of considerable oil revenues, this will happen.
Altogether, more than 150 UK companies are present in Azerbaijan, not
just in hydrocarbons, but in the retail and financial services
sectors, amongst others. The Azerbaijani middle-class is in its
ascendance, and there is also a huge construction boom taking place
across Baku.'
Let's not forget that Azerbaijan was the first secular democracy in
the Islamic world, created in 1918. It gave the vote to women before
women in the UK or the US had the vote, which is a tremendous history.
However, Azerbaijan's development was halted when it was annexed by
the Soviet Union back in 1920. Of course, Azerbaijan was under the
Soviet yoke for 71 years before its battle for independence began.
Today the key issue in relation to Azerbaijan's economy is energy
supplies. The country sits on the Caspian Sea, which has huge deposits
of oil and gas, which are strategically important. Azerbaijan is the
only country that can guarantee a gas supply through the southern
corridor without going through Russia. A pipeline exists to take gas
through Azerbaijan, bypassing Armenia, and then through Georgia into
Turkey and on to Europe. BP is investing billions in Azerbaijan's
hydrocarbon economy. At a time when the UK economy is slipping back
into recession, Azerbaijan is becoming an economic force to be
reckoned with in addition to its hydrocarbon resources: There are a
great many opportunities in financial services, agribusiness and
construction.
Relations between the UK and Turkey go right back to the early 16th
century when the first strong contacts between Britain and the Ottoman
Empire developed as trading interests in Britain sought new market
outlets in the East. The two nations have been at war several times,
such as in World War I. They have also been allied several times,
however, such as in the Crimean War. The UK is the second biggest
importer of goods from Turkey, after Germany. Turkey exports around 8
percent of its total goods to the UK. Around 2,000,000 Britons take
holidays in Turkey every year, while 100,000 Turks travel to the UK
for business or pleasure.
For Turkey, the UK was the 12th largest source of imports in 2011,
behind Italy and Spain as well as France and Germany among EU member
states. Overall, the UK has tended to fall in the ranking of Turkey's
import sources since 2000, as Turkey's energy demand has boosted the
position of Russia and Iran and emerging economies such as India have
made inroads. UK Trade & Investment (UKTI) described competition in
the Turkish market as `fierce.' However, as a destination for Turkish
exports, the UK has consistently ranked second or third in recent
years.
London wishes to strengthen UK-Turkey relations in large part because
it sees Turkey as an emerging economic power of significant potential.
In Ankara in July 2010, the UK prime minister described Turkey as
`Europe's BRIC' (referring to the Brazil-Russia-India-China group of
major emerging economies). Turkey has maintained a solid position as
the world's 16th largest economy since the mid-2000s. This means that,
in comparison to the economies of EU member states, Turkey is larger
than Belgium, Poland and Sweden and is advancing most immediately on
the Netherlands. Prime Minister Recep Tayyip ErdoÄ?an wants Turkey to
be in the global economic top 10 by the centenary of the republic in
2023 (something that might involve overtaking Indonesia, South Korea
or Mexico, or possibly Italy or Spain).
UK support for Turkey's accession to the EU has not diminished for the
last 30 years. Even in May 2008, Queen Elizabeth II said during a
visit to Turkey, `Turkey is uniquely positioned as a bridge between
the East and West at a crucial time for the European Union and the
world in general.' In 2010 Prime Minister ErdoÄ?an said, `This is the
golden age of Turkey-United Kingdom relations.' Referring to economic
and commercial relations, Erdogan said: `There are around 2,000
British investors in Turkey. More than 2.5 million British tourists
visited Turkey in 2009. Some 30,000 Britons have purchased real estate
properties in Turkey.'
The trilateral relationship between the UK, Azerbaijan and Turkey will
likely enhance commercial and political opportunities and benefit what
represents a triangle of prosperity in the region. If we add the EU
dimension to this strategic partnership, it will become even stronger
and expand the EU's outreach to the borders of Central Asia and Iran.
*Vanessa Raine has served as the business coordinator of TEAS,
www.teas.eu, for the past three-and-a-half years. Prior to that
position, she worked as a headhunter in the energy, telecom and
banking sectors as well as in strategic communications. The views
expressed in this feature are her own and do not necessarily reflect
those of any organization she is associated with.
[email protected]
http://www.todayszaman.com/news-284262-turkey-azerbaijan-and-the-united-kingdom-a-triumvirate-of-prosperity-by-vanessa-raine*.html
From: Baghdasarian