Reserves of growth

What is the importance of Azerbaijan's resources, market and infrastructure for the Russian economy? Azerbaijan is not only competitive and attractive for investors, but it is also a powerful state.
In September, Fitch Ratings Agency confirmed an appraisal of the long-term rating of Azerbaijan at investment rate. In May 2011, Azerbaijan’s rating was increased from stable (BB+) up to positive (BBB-). This means it is equal to Turkey’s rating. And the Turkish economy got this appraisal just this autumn. It is important that the growth takes place against the background of the financial instability in Europe and the USA.

Analysts of Western investment companies suggest launching a new group of growth into the political and economic sphere – CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey, South Africa). Azerbaijan cannot lay claim to this group due to its economic volume, but considering its economic progress and business level, appraisals of the country correlate with this group. Thus, the strategic partner of Russia in the Caspian and Black Sea region becomes a zone of stable growth. It means that Moscow and Baku need new impulses for development, new projects of bilateral cooperation.

What reserves can be used? Let’s name them. In the sphere of trade and economic relations, the efforts of interdepartmental coordination can be concentrated in several strategic positions. Among them are: signing an investment mutual security agreement and complex development of transport communication. It is necessary to build a railway bridge across the Astara River and connect Azerbaijan and Iran's main highways, which would enable the involvement of Azerbaijan in the railway part of the North-South multimodal transport corridor.

There is room for improvement of the customs service on the Russian-Azerbaijani border. Prospects for interrelations in the social, cultural and educational spheres consist of establishing a positive reputation and image of our states in the societies of both countries. In this context, preliminary consultation and development of an agreement on mutual development of cultural and business centers in Russia and Azerbaijan should be held.

In addition, development of full-scale programmes on youth exchange and mutual visits of students and pupils is necessary. Considering the fact Russia and Azerbaijan belong to the Caspian region and the growing importance of this region in international policy, it is reasonable to launch educational programmes on studying Caspian issues through regional integration in universities with CIS departments. Moreover, it is necessary to develop tourism in the Caspian region and form tourist clusters.

As for prospects of interregional cooperation of our countries, the Astrakhan region of Russia is marked by potential and unused reserves of cooperation with Azerbaijan. The governments of Astrakhan region and Azerbaijan recently signed a long-term intergovernmental agreement on trade and the economy, science and technical and cultural cooperation.

Astrakhan is an interesting example, but there are more of them. At the moment foreign trade with Azerbaijan is fulfilled by 500 enterprises and organizations situated in 71 constituent parts of the Russian Federation. Two regions (Tatarstan and Dagestan) have their missions in Baku.

Gas cooperation between Russia and Azerbaijan deserves special attention. According to the report of the International Energy Agency (IEA) in 2011, by 2035 global consumption of natural gas will grow by more than 50% in comparison with 2010 rates. The prospects for the gas industry strengthened after some EU countries stated their rejection of nuclear power plants. Experts believe that natural gas has every chance of being the main energy resource for Europe in the future. That is why gas cooperation between Russia and Azerbaijan should be considered from a long-term point of view. Growing volumes of gas development by Azerbaijan can be a part of the resource base for the Black Sea pipeline South Stream.

And in conclusion a couple of words should be said about the security sphere. Current security should be considered within the real threats existing in the region. Attention should be paid not to geopolitical risks, but to services that provide civil security. For example, interdepartmental cooperation between the Emergencies Ministry, the special services and army should be aimed at establishing multi-purpose regional forces, reacting to crisis situations. The possibility of establishing such forces can lead to a situation in which Russia and Kazakhstan will sign the Security Agreement developed by Azerbaijan regulating mutual guarantees.

New prospects for development and the unexpected risks and challenges, which Russia, Azerbaijan and the region in general will face in the second decade of the 21st Century, demand consolidated decisions in all spheres of social, economic and information policy. Effective work on development of the social and economic potential of the two countries will form more competitive social systems in our states and improve life quality.

Alexander Karavayev, Russian Gazeta – Azerbaijan.