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Deutsche Welle, Germany
May 19, 2012 Saturday 11:17 AM EST
Azerbaijan: autocracy in an oil paradise
Oil is central to Azerbaijan. The former Soviet Republic, in which the
Eurovision Song Contest is due to take place at the end of May, is one
of the richest countries in the region - but it is also an autocracy.
If it takes a lot of money to put on a good show, then Azerbaijan is
surely well-equipped. When the Azerbaijani duo Ell & Nikki triumphed
at the Eurovision Song Contest (ESC) in Düsseldorf in 2011, it meant
this year's ESC final would take place in Baku on May 26. The event is
a welcome PR exercise for the country, which up to now is probably
best known for its oil reserves. It will be one of the most expensive
shows in the history of the contest.
Contracts with oil giants
Oil production in Azerbaijan began over a century ago when the region
was still part of the Russian czardom, and Azerbaijani oil reserves
are estimated at 14 billion barrels. Since the country gained
independence in 1991, western companies have profited massively from
these.
With the so-called "Century Contract" agreed in 1994, Azerbaijan
allowed dozens of oil companies, including giants such as BP and
Exxon, to exploit the oil fields in the Caspian Sea. According to
official figures, around $20 billion (15.7 billion euros) were
invested in Azerbaijan in 2011 alone.
"The contract was first and foremost about political aims and
attracting western firms to Azerbaijan, which was then heavily
influenced by Russia," said Alexej Vlasov, editor-in-chief of the
Moscow new agency Vestnik Kavkasa. New oil and gas pipelines would
have allowed Azerbaijan to practice independent politics in the
post-Soviet region, explained the expert.
No nostalgia
The wealth of the country, just a little larger than Austria in size,
can be seen everywhere in the capital Baku, where construction work
seems to be in progress at every street corner. The two million
residents of the city are themselves astounded at the pace of
development of its streets, bridges and new buildings.
But the lion's share of oil profits is pumped directly back into the
oil industry. In contrast, other economic sectors remain
underdeveloped, said Farhad Medijev from the Azerbaijani Caucasus
University in Baku. "We have money, but we're missing humanitarian
capital," he said.
Those in the nine-million-strong Azerbaijani population who have a job
in the oil industry can count themselves lucky. Their monthly salaries
are comparable to those in western European countries between 900 and
1,800 euros a month net ($1,100 - $2,200). But average wages in
Azerbaijan are much lower around 75 euros ($95) a month.
Young people such as Valerija see the country's development as a
positive change. The 27-year-old works as a manager for a US project
in Baku. She says that with a good education you can find a good job
and she does not want to see a return to Soviet times. Meanwhile, the
52-year-old Marat doesn't want to see Azerbaijan enter a confederation
in the post-Soviet region. "I always hated the socialist system," he
said.
But Marat is still critical of contemporary life in Azerbaijan. "Our
potential is similar to Kuwait, but our standards of living are ten
times worse," he said, blaming the political system that has dominated
Azerbaijan for decades.
Inherited autocracy
In a democracy index produced in 2011 by a number of experts from a
British publishing group, Azerbaijan came in at number 140 on a list
of 167, and was classed as an "authoritarian regime."
Azerbaijanhas been ruled by the Aliyev family for almost 20 years.
Former Soviet KGB boss Geydar Aliyev was president of the country
between 1993 and 2003. When he became sick, his son Ilham took his
place, prompting critics call to it an "inherited autocracy." Human
rights organizations such as Amnesty International have reported the
imprisonment of several opposition politicians and journalists.
In 2011 alone, 136 people were estimated to have been harassed by the
state for their political views, and three of these were murdered.
That was revealed at the end of March, when the Green Party made an
official information request to the German parliament. Meanwhile,
human rights activists want to use the Eurovision Song Contest to draw
attention to the lack of democracy in the country.
Unresolved conflict
A further important issue will be raised in conjunction with the ESC
in Azerbaijan: Nagorno-Karabakh. The small enclave in the South
Caucasus in which the majority of the population is Armenian broke
free from Azerbaijan in the early 1990s. Around 25,000 people died in
the bloody war between Armenia and Azerbaijan.
The current ceasefire is fractured, and the border to the
self-proclaimed Republic of Nagorno-Karabakh is continually under
fire. Every attempt to find a solution to the conflict has so far
failed. At the beginning of March, Armenia said it would not be
participating in the ESC, because they see Azerbaijanis as an enemy.
Author: Roman Goncharenko / hw
Editor: Ben Knight
May 19, 2012 Saturday 11:17 AM EST
Azerbaijan: autocracy in an oil paradise
Oil is central to Azerbaijan. The former Soviet Republic, in which the
Eurovision Song Contest is due to take place at the end of May, is one
of the richest countries in the region - but it is also an autocracy.
If it takes a lot of money to put on a good show, then Azerbaijan is
surely well-equipped. When the Azerbaijani duo Ell & Nikki triumphed
at the Eurovision Song Contest (ESC) in Düsseldorf in 2011, it meant
this year's ESC final would take place in Baku on May 26. The event is
a welcome PR exercise for the country, which up to now is probably
best known for its oil reserves. It will be one of the most expensive
shows in the history of the contest.
Contracts with oil giants
Oil production in Azerbaijan began over a century ago when the region
was still part of the Russian czardom, and Azerbaijani oil reserves
are estimated at 14 billion barrels. Since the country gained
independence in 1991, western companies have profited massively from
these.
With the so-called "Century Contract" agreed in 1994, Azerbaijan
allowed dozens of oil companies, including giants such as BP and
Exxon, to exploit the oil fields in the Caspian Sea. According to
official figures, around $20 billion (15.7 billion euros) were
invested in Azerbaijan in 2011 alone.
"The contract was first and foremost about political aims and
attracting western firms to Azerbaijan, which was then heavily
influenced by Russia," said Alexej Vlasov, editor-in-chief of the
Moscow new agency Vestnik Kavkasa. New oil and gas pipelines would
have allowed Azerbaijan to practice independent politics in the
post-Soviet region, explained the expert.
No nostalgia
The wealth of the country, just a little larger than Austria in size,
can be seen everywhere in the capital Baku, where construction work
seems to be in progress at every street corner. The two million
residents of the city are themselves astounded at the pace of
development of its streets, bridges and new buildings.
But the lion's share of oil profits is pumped directly back into the
oil industry. In contrast, other economic sectors remain
underdeveloped, said Farhad Medijev from the Azerbaijani Caucasus
University in Baku. "We have money, but we're missing humanitarian
capital," he said.
Those in the nine-million-strong Azerbaijani population who have a job
in the oil industry can count themselves lucky. Their monthly salaries
are comparable to those in western European countries between 900 and
1,800 euros a month net ($1,100 - $2,200). But average wages in
Azerbaijan are much lower around 75 euros ($95) a month.
Young people such as Valerija see the country's development as a
positive change. The 27-year-old works as a manager for a US project
in Baku. She says that with a good education you can find a good job
and she does not want to see a return to Soviet times. Meanwhile, the
52-year-old Marat doesn't want to see Azerbaijan enter a confederation
in the post-Soviet region. "I always hated the socialist system," he
said.
But Marat is still critical of contemporary life in Azerbaijan. "Our
potential is similar to Kuwait, but our standards of living are ten
times worse," he said, blaming the political system that has dominated
Azerbaijan for decades.
Inherited autocracy
In a democracy index produced in 2011 by a number of experts from a
British publishing group, Azerbaijan came in at number 140 on a list
of 167, and was classed as an "authoritarian regime."
Azerbaijanhas been ruled by the Aliyev family for almost 20 years.
Former Soviet KGB boss Geydar Aliyev was president of the country
between 1993 and 2003. When he became sick, his son Ilham took his
place, prompting critics call to it an "inherited autocracy." Human
rights organizations such as Amnesty International have reported the
imprisonment of several opposition politicians and journalists.
In 2011 alone, 136 people were estimated to have been harassed by the
state for their political views, and three of these were murdered.
That was revealed at the end of March, when the Green Party made an
official information request to the German parliament. Meanwhile,
human rights activists want to use the Eurovision Song Contest to draw
attention to the lack of democracy in the country.
Unresolved conflict
A further important issue will be raised in conjunction with the ESC
in Azerbaijan: Nagorno-Karabakh. The small enclave in the South
Caucasus in which the majority of the population is Armenian broke
free from Azerbaijan in the early 1990s. Around 25,000 people died in
the bloody war between Armenia and Azerbaijan.
The current ceasefire is fractured, and the border to the
self-proclaimed Republic of Nagorno-Karabakh is continually under
fire. Every attempt to find a solution to the conflict has so far
failed. At the beginning of March, Armenia said it would not be
participating in the ESC, because they see Azerbaijanis as an enemy.
Author: Roman Goncharenko / hw
Editor: Ben Knight