The report "Prospects for economic cooperation between Russia and Azerbaijan in the conditions of formation of the Eurasian modernization project", prepared by a group of Russian and Azerbaijani experts under the auspices of the Political Science Center "North-South", was presented at the third Russian-Azerbaijani inter-regional forum "Russian-Azerbaijani Dialogue - 2012" In Baku. According to Ismail Agakishiyev, one of the authors of the report, economic cooperation between Azerbaijan and the countries of the Eurasian Economic Area (EEA) has good prospects.
Azerbaijan is an economically advanced and independent state, so the main basis of the ideology of the cooperation with the Eurasian countries should be economic feasibility and pragmatic calculation. The objectives and principles of Eurasian integration are fully consistent with the legacy of Heydar Aliyev, who sought to create a competitive economy independent of the situation on world markets.
The report analyzes the prospects of cooperation between the Russian Federation and the Republic of Azerbaijan in the context of the development process of Eurasian integration. The most promising directions of cooperation between Russia and Azerbaijan are specially considered; the expediency of developing mutually-beneficial economic cooperation between the states of the Eurasian project and the Republic of Azerbaijan is proved.
VK continues to publish extracts from this report
The ideology of cooperation between Azerbaijan and the countries of the Eurasian project
The development strategy of Azerbaijan and its place in the international system are largely determined by the geopolitical situation of the country on the border of East and West. Speaking at the international conference "Islamic Civilization in the Caucasus" in 1998, the national leader Heydar Aliyev said: "Azerbaijan is a country that combines Western civilization with the Eastern one – both from the point of view of geography and of culture." That is, Azerbaijan is quite close to Eurasian civilization according to its socio-cultural type; this fact creates real prerequisites for the strengthening of mutually-beneficial relations with Eurasian countries.
At the same time, Azerbaijan is a developed and independent state, so the main basis of the ideology of cooperation between Azerbaijan and the Eurasian countries should be economic feasibility and pragmatism.
It seems that the framework of interaction between Azerbaijan and the Eurasian Union can include two key components:
I. The ability for common upgrade. The objectives and principles of Eurasian integration are fully consistent with the legacy of Heydar Aliyev, who sought to create a competitive economy, independent of the situation on world energy markets. Finding the optimal format of interaction between Azerbaijan and its Eurasian partners will promote their common development, economic and technological modernization.
II. Belonging to a "big project". Given the effective implementation of the potential of the Eurasian project and the growth of its influence in the international arena, cooperation with Eurasian countries will allow Azerbaijan to set itself up as a player belonging to “the elite” of competitive states. Baku's interest in the Eurasian project will increase with the increase of the economic efficiency of the Eurasian integration.
In general, the Eurasian project aims to multiply both the physical and the spiritual potential of the participating countries. The model of interaction between the Eurasian states is not the desire to revive the past, the common Soviet institutions, but the desire to achieve more effective and mutually-beneficial cooperation based on pragmatic calculations.
The practice of Eurasian integration should destroy the negative stereotypes of Russian policy in the post-Soviet space, which is often perceived as a neo-imperial "desire" to constantly expand Russian influence. This influence is sufficiently large, and Moscow is amongst the dominant centers. In reality, Moscow is not an applicant for hegemony in the EAC and therefore it is setting up the project primarily as a synthesis of the social, cultural and ideological projects of its allies in Eurasia.
The new postulate for integration is combining the potentials. Convergence should not be considered from the point of view of Russian interests, but as creating a new mechanism of individual and self-sufficient geopolitical entities, amongst which there is Azerbaijan.
Future directions of cooperation between Azerbaijan and the Eurasian integration project
Foreign policy issues (security and development)
The moderators of Eurasian integration should take into account the range of priority interests of Baku at this stage, where, in particular, security issues dominate, in view of the formation of an area of new risks and threats associated with the geo-strategic position of Azerbaijan in the Caucasus-Caspian region and projected scenarios of the situation in the region around Baku.
It is necessary to consider issues related to the situation around Iran and the U.S. and Israeli interests in this perspective that influence decision-making, not approximating Baku to Eurasian integration, but providing a chance to minimize the risks predicted for the country. In this context, the Karabakh conflict should also be considered.
Therefore, a number of attractive and urgent initiatives of Moscow as the chief moderator and the engine of Eurasian integration in this area could adjust in some way the interest of Baku, which will change the inert role of Azerbaijan to a more optimal one in the subsequent phases.
The priority of the security issues in Azerbaijan, including at the domestic level, should be considered, taking into account the approach of 2013, so the next six months will give the parties time and a chance to adjust and harmonize their interests and approaches.
Azerbaijan may find participation in the Eurasian Parliamentary Assembly beneficial. Due to this, there could be some opportunities for development of Azerbaijani-Armenian dialogue. In addition, in terms of the participation of Azerbaijan in the sphere of foreign policy and macroeconomics of the Eurasian Union, the following suggestions can be highlighted:
1) Support for the policy of Baku and the national ideology of Azerbaijan within the Union (the development of common standards of human rights and protection against external manipulation for participants in the integration)
2) Promotion of programs for supporting the Azerbaijani diaspora in the countries participating in the association.
3) Administrative support for the lobby (Azerbaijani business oriented toward Russian projects).
4) Inclusion of an Azerbaijani representative on the board of the ECE, the reservation of posts in the future departments and the possibility of creating a separate Caucasian Department of the ECE for Azerbaijani projects.
Economic cooperation
Joint innovation projects, the prospects for new production
Many of the CIS countries (Ukraine, Belarus, Armenia, Azerbaijan, Kazakhstan, Uzbekistan) are trying to create some basic groundwork in high-tech production created in the Soviet period and to implement a number of new investment projects with the participation of the modern world's leaders of the electronics industry (for example: in 2003 the Azerbaijani company Ultra started production of laptops under the brand Nexus. Today, 20 different models of Nexus laptops are produced in the country and exported to Russia, Turkey, Georgia and Central Asia.
Kazakhstan and Azerbaijan create very similar structures, known as Regional Innovation Zones (RIZ). The package of offers was drafted in 2003 by `the U.S. consulting firm Booz, Allen & Hamilton, and by local experts. RIZ imply the creation of favorable monetary, fiscal, pricing and other spheres for private, public, local and foreign companies engaged in the production, consumption and export of products which require high technology and services. Within RIZ it is planned to create educational and research centers, an International University of Information Technologies, labs, innovation, research centers and innovation-oriented small and medium-sized businesses, which will operate in favorable conditions and will be provided with state support.
There are several promising directions in which it is possible to build innovative ties between Russia and Azerbaijan in the framework of the Eurasian Union. However, we should pay attention to the significant shortage of contacts and practical cooperation programs between the National Academies of Sciences; as a consequence, the level of scientific and technical cooperation is quite low
Promising lines of cooperation in the economic sphere:
In Azerbaijan, there are new industries that provide the opportunity to plan "coupling" with the innovative sectors of the Eurasian Union.
Suggestions for Baku:
It is necessary to initiate a cooperation program between the leading academic departments.
Examples of promising areas of cooperation:
A. Nanotechnology.
There is interest and a high availability of Azerbaijani, Kazakh and Uzbek experts to build relations with Russian colleagues in the field of nanotechnological synthesis of various materials.
B. The space industry.
The space industry of the CIS is represented in Ukrain and, Kazakhstan and is being developed in Azerbaijan. Basically, these are offices of space device engineering (development of element bases of remote-sensor devices that are used in aerospace and military land vehicles) and factories for space device engineering.
C. Information and Communications Technology.
Since 2007, the revenue growth in the ICT sector in many countries of the CIS has reached 25-35% per year. The growth of the ICT indicators is the most active in the non-oil sector after the construction industry. Obviously, for Russian corporations which provide communication services, there are certain prospects for cooperation in the implementation of the GLONASS system and other similar Russian technologies in post-Soviet space.
At the same time, the degree of mutual involvement in the implementation of innovative projects remains relatively low; there is no systematic process, and this fact creates the need to move to deeper, more intense interaction at project level.
D. Creating the International Center for Caspian Studies in the framework of the Eurasian project (topics: oceanography, seismology, biology, conservation of the ecosystem of the rivers and reservoirs of Central Asia).
E. It is necessary to consider the possibility of accumulating investments in pure science. In particular, this can be started with the development of joint programs in the field of astrophysics, geophysics, earth sciences, biology, and chemistry. For example, the construction of a new astrophysical telescope or the reconstruction of the old one would become an incentive for reviving the overall capacity of science and drawing the attention of the scholars of third countries; it would become an example of the meaningful work of the association.
In the framework of cooperation in the field of innovations, the Eurasian Association members will be provided with access for the relevant organizations to new forms and structures created in the Russian Federation in order to promote the latest technologies and business management in such forms as the annual forum of innovation (by order of Vladimir Putin on April 5) or business - high-tech incubators (such as Digital October).
