AZERBAIJAN DESCENDING INTO THE THIRD WORLD AFTER A DECADE OF INDEPENDENCE

Journal of Third World Studies, Spring 2004 by Rasizade, Alec

Why would the bank close whilst Azerbaijan is experiencing an oil boom? This bank successfully works in Armenia, where no oil has been found. It becomes clear that British Bank stopped its activity in Azerbaijan as it went bankrupt. According to unofficial information, the reason for the British Bank's stopping its activity in Azerbaijan was that the $50 million worth of deposits belonging to top Azeri officials were withdrawn within two months upon the deterioration of President Aliev's health, and the simultaneous outflow of capital made the bank bankrupt.

Several international surveys have shown that Azerbaijan has become one of the most corrupt nations in the world. Corruption level indices rendered for the last years by both Transparency International organization based in Berlin and Control Risks Group based in London have consistently ranked Azerbaijan as the third most corrupt country in the world after Cameroon and Angola, and first among the former Soviet republics.19

It remains mysterious, why President Aliev, who had a splendid record of anti-corruption crusades when he was the communist boss of Azerbaijan, nowadays is not questioning the legitimacy of unconscionable fortunes, endorsing in fact the robber-baron breed of national bourgeoisie and kleptocracy. Such countenance, under the subterfuge of privatization and free market reform, has raised doubts about his commitment to open society and social justice. Opposition leaders aver that, in addition to oil export, the most successful businesses, real estate and trade monopolies (such as caviar, cotton, tobacco) are controlled by his relatives with close ties to fiscal authorities, which let them make millions in return for hefty cuts.

The Azeri press boasts today of some of the "richest men in Europe" whose sources of self-enrichment in this impoverished country remain inconceivable. The bulk of personal lucre is drawn from the access to national oil-export revenue and illegal dividends from privatization of state property. To understand the depth of despoliation, look no further than the ex-speaker of parliament Rasul Guliev, who allegedly depredated $76 million through the illegal proceeds in a state-owned oil refinery at his disposal, before jetting into a comfortable exile in New York in 1997.20

Another illustration for government-level embezzlement and the degree of impunity was presented by former foreign minister Hasan Hasanov who misappropriated a $10 million Turkish credit meant for the establishment of Azeri legations abroad, and used the funds to build his privately owned hotel and casino in Baku. After the criminal investigation directed by prime minister Artur Rasizade in 1998, the minister was merely sacked, but remained a member of parliament, and that was regarded as enough by President Aliev.

The only home-grown capitalist class able to reinvest into the national economy, thus creating new jobs, consists of the remnants of communist leader-ship, the ubiquitous KGB types, and the unbridled rural and industrial bosses, who have appropriated the most productive and profitable parts of the state property prior to its legal devolution officially aimed at creating equal starting terms for every citizen. Well organized in a vast patronage network that ensures them a stranglehold on power, they don't conceal their opulence and brazenly flout the proclaimed ideals of democratic equality, stirring up the egalitarian instincts of bedeviled masses. That discontent, in turn, prevents the "new Azeris" from making serious investments at home beyond their lavish lifestyle, luxurious villas and prestigious cars.