Firuza Nahmadova1; 1 Baku Research Institute, United States
Discussion
Since the recovery of the Karabakh territories in 2020, the Azerbaijani government has declared its willingness to invest in their reconstruction. But recovery does not equal the resolution of all issues. The challenges of economic reconstruction in the seven provinces are multiple, yet the focus seems to be on more frivolous spending, such as a 5-star hotel in Shusha or an international airport in Fizuli. Reviewing the current state of the infrastructure and existing economic difficulties and opportunities, this paper explores the policies and strategies that the government has implemented to support the economic recovery of the liberated territories. Do these types of investment fall under the usual scope of economic and social infrastructure? Analysis shows that much of the decision-making is driven not by economics but by politics, enabled by the high support that Aliyev enjoys. These decisions might seem unreasonable for national and regional strategy as the economy recovers from unstable oil prices. But they are relevant when analyzing such decisions under an authoritarian reconstruction perspective. A second section investigates the reasons that lead to wasteful expenditures. It is to the regime’s advantage to assert its kleptocratic power in these territories. A comparison will be made with the Russian strategy in Crimea post 2014 and the efforts to reconstruct authoritarian power in Syria to find parallels with the Azerbaijani ruling elite’s kleptocratic decisions.
