Russian experts on Azerbaijan's achievements in 2010

Overcoming the global financial crisis in a relatively easy way, Azerbaijani economy demonstrated high rates of GDP growth in 2010.  

The International Monetary Fund has recognized anti-crisis policy of the Central Bank of Azerbaijan as one of the most effective in the post-Soviet area. Of course, it is hydrocarbons that mainly account for economic prosperity. But it is worth noting that not all countries with significant energy resources succeeded in overcoming the crisis seamlessly. Azerbaijan did it and now the country holds more than 80% of all currency reserves in South Caucasus.  

Azerbaijan became a major player in the global gas market once Umid gas field with reserves of around 200 billion cubic meters was discovered. However, Azerbaijan's leadership has no plans to stop there, and we hear more and more the word "modernization" which is very familiar to Russian citizens.

This coincidence of paths of development of our countries is not accidental. Azerbaijan entered a strategic path of development as soon as the so-called “Contract of the Century” was signed by Heydar Aliyev back in 1994. The country drew in foreign investors, who invested not only to develop oil and gas sector, but also to boost social programs, maintain stable national currency and design ambitious construction projects.

The path of development set by Heydar Aliyev and continued by Ilham Aliyev meant to make Azerbaijan a modern state. Heydar Aliyev understood that oil is a great help to economy of any state, but this can not last forever.

Development of the country in the long term requires a diversification of income sources. It was possible to achieve this goal only through improving the quality of human capital, developing information technology and using oil and gas sector to create new growth points in non-oil sector. From this perspective, 2010 was significant since the GDP growth rate in non-oil sector exceeded the oil segment figures almost twice.

Improving quality of human capital Azerbaijani leadership targets not only secondary and higher education, raising skills of workers in key sectors of the economy, but also raising culture of the Azerbaijani society, preserving the unique history and traditions of Azerbaijan people and its neighbors.

Integration processes in economy, politics and culture are fundamental principles for Baku which makes it possible to form an atmosphere of mutual trust in a huge geo-strategic region, which includes the South Caucasus, the Caspian and Central Asia.

Initiatives put forward by First Lady Mehriban Aliyeva, who is also a Goodwill Ambassador of UNESCO and ISESCO, have become a symbol of cultural integration. The projects implemented under her patronage saw construction of the Baku International Center Mugam and conduct of 2nd Gabala International Music Festival in summer 2010.

Baku has turned a venue where university rectors from historic CIS countries get together. Heydar Aliyev Foundation also has a reach in Russia where it implements various humanitarian and educational projects.

Thus, Azerbaijan positions itself not only as one of the leading players in the global energy market, but also as a country, which builds completely new image of a young developing nation for its close and remote neighbors. From this perspective, the presidential couple Ilham Aliyev and Mehriban Aliyeva act as a kind of brand, just as Nursultan Nazarbayev is a symbol of modern Kazakhstan. Such a positive personification is extremely important to promote a country project in a competitive global market.
 
And, of course, it should be noted that 2010 had been positive in terms of development of Russian-Azerbaijani relations, which in recent years acquired a qualitatively new level of cooperation in all key areas, ranging from the economy to humanitarian sphere. The basis of this success is the mutual positive perception of the Russian and Azerbaijani leaders. Ilham Aliyev is a politician who knows Russian culture and language very well and therefore talks with Dmitry Medvedev and Vladimir Putin, both figuratively and literally, in one language, which plays an important role in coordinating positions on such hot issues as the problem of Nagorno-Karabakh or dialogue in the energy sector.
 
President of Russia Dmitry Medvedev said at a joint press conference following Russian-Azerbaijani talks that relations between Azerbaijan and Russia are complex and include not only energy sector, but also transportation, military and technical cooperation. The two countries have signed important agreements in the field of delineation and use of water resources.

This year also saw agreements aimed to increase purchases of Azerbaijani gas by Gazprom in 2011-2012. It is no coincidence that many experts characterize bilateral relations as strategic partnership. This convergence of views on major key issues gives ground to say that a solution to the Karabakh conflict will be achieved in the near future given the active mediating role Moscow assumed in wake of the August 2008 events.
 
New risks and challenges facing post-Soviet area since the early XXI century require consolidated decisions on a whole range of issues of social, economic and information security. Russia and Azerbaijan have clearly shown that they are willing and able to solve these issues together.


Alexei V. Vlasov
Deputy Dean for Development
History School 
Lomonosov Moscow State University

/Nezavisimaya Gazeta/