Even if Western businessmen became interested in founding enterprises in Karabakh, the issue of its government's legitimacy would stop them
This year, the US budget deficit is record-breaking, nevertheless the country continues its financial help to Nagorno-Karabakh, and that makes the Turkish and Azerbaijani diaspora uneasy. The exact sum of this help has not yet been announced, but traditionally it amounts to 10 million dollars. Moreover, the US government plans to donate 40 million dollars to Armenia as compensation for the prolonged economic blockade by its neighbours, Turkey and Azerbaijan.
The Armenian population is considerably affected by this blockade, especially after the 'Five Day War' between Georgia and Russia that created certain difficulties in transporting cargo from Russia to Armenia via Georgian territories. Armenia is virtually isolated from all transport and energy projects of the region. A possible solution to this situation entirely depends on the government of Armenia: if the country agrees to make certain concessions to Azerbaijan in the matter of Nagorno-Karabakh, a weakened Armenian economy will be boosted by renewed trading relations with Azerbaijan and the possibility of export and import trade with Europe, via Turkey. The only way to revive the Armenian economy is to resolve peacefully the conflict over Nagorno-Karabakh, an issue that has turned Armenia into a rogue state of the South Caucasus.
As for US help to Nagorno-Karabakh, its fairness may be doubted: the US Congress has been allocating sums to help the victims of Nagorno-Karabakh conflict since 1992, however, since 2005, only the Armenian community of Karabakh has received this help, while Azerbaijani refugees are deprived of this help.
Nagorno-Karabakh is a small territory without any energy resources, so it needs considerable financial aid to recover from the war. Unlike Armenia, Azerbaijan has the resources to make proper investments in the region's economy. The world financial crisis has revealed the superior potential of the Azerbaijani economy compared to the Armenian one, and world rating agency Fitch Ratings tends to agree with this. The Armenian economy now exists only thanks to infusions from the Armenian diaspora spread all over the world and it can't maintain proper living standards in Karabakh.
That's why over these 16 years Armenia has not only failed to attract ethnic Armenians from other countries to move to Karabakh, but can't stop people from leaving the region either. Furthermore, even if Western businessmen became interested in founding enterprises in Karabakh, the issue of its government's legitimacy would stop them
Elmira Tariverdieva, Baku. Exclusively for VK.
