World

It’s time to increase Britain’s engagement with Azerbaijan

March 18, 2011
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While it's fashionable for the media and politicians to call for the resignation of a government representative at the slightest whiff of wrongdoing, in this case the person in question has done nothing discernibly improper. The charge against the government’s trade envoy, Prince Andrew? Amongst others, forging close ties with the government of Azerbaijan. Azerbaijan’s government has been repeatedlyaccused of serious human rights violations, including suppression of opposition voices and torture. Yet for those who wish to see Azerbaijan pursue a policy of reform, political and economic engagement may be the most effective route.

Azerbaijan has thrived economically during the two decades since its independence from the Soviet Union. Indeed, thanks in part to sustained British engagement—British companies contribute 51 per cent of all energy industry investment—the country is fast becoming the success story of the region. Far from diminishing Britain’s ties with its country’s leaders and business community, or admonishing the prince for his diplomatic links, we should do the opposite: find ways to enhance and develop them further.

Rewind 40 years and Azerbaijan was the poorest Soviet state. Twenty years ago, following the break up of the Soviet Union, the country had no experience or history of representative government nor experience of a market economy. Yet over the course of the subsequent two decades, it has undergone an almost unrecognisable transformation.

The list of Azerbaijan’s achievements are astounding: economic growth by a factor of three over just six years, the world’s fastest growing economy and the top reforming country in 2008 according to the World Bank’s "Doing Business Report." It is also clear that Azerbaijan is spending its wealth more wisely than most countries blessed with such natural resources: a million new jobs in six years, mortality rates amongst the under-fives reduced by nearly 300 per cent between 1990 and 2009, and a literacy rate higher than Britain’s. Indeed, according to Unicef statistics, 20 per cent of the richest citizens of  Azerbaijan own 30 per cent of nation’s wealth. In the UK the top 20 per cent own 44 per cent.

While few can genuinely question Azerbaijan’s major strides in social and educational development, recognised as they are by organisations such as the UNDP and Unicef, the question of democratic development remains. It’s important to remember that while democratic roots may not have taken hold as fast as some in the west might like, according to international bodies whose role it is to monitor and build democracy, the story is improving. Despite criticism from Human Rights Watch, the 2008 presidential elections saw the OSCE declare that the country had “marked considerable progress towards OSCE and Council of Europe commitments.” For a country with no experience whatsoever of representative democracy only 20 years ago, this is encouraging. On one of the thoroughfares into the Azerbaijani capital, Baku, a sign says quite simply that “Democracy is our path.” We are right to continue to press for, monitor and evaluate this development over the coming years and to work to ensure they remain on this path, but the trajectory is positive.

Azerbaijan’s march to progress is not only important for our interest in promoting democracy, but also for British economic interests: having Azerbaijan as a secure and stable energy partner is crucial to our security. As our own oil and gas reserves under the North Sea dry up and as we strive to diversify our own energy supply towards renewables, we still must secure constant and robust oil and gas supplies from elsewhere in the world. Recent events in the Middle East have made it clear that many energy producing nations are unstable, and it is arguable that the UK’s policy towards these countries has ultimately fostered rather than allay this instability.

The same cannot be said for our engagement with Azerbaijan. British companies have played a critical role in generating the wealth through which Azerbaijan’s recent social advances have been possible. Yet despite this, naysayers continue to maintain that Britain should recoil from engagement with a country such as Azerbaijan until they meet some nebulous benchmark of European acceptability. I say the opposite. The more effectively we engage now, the quicker that process of reform proceeds and the more both sides in that bilateral relationship stand to benefit.

In Azerbaijan there is a saying: “A house without a guest is like a mill without water.” I am proud of the UK’s record as guests of Azerbaijan in their house, helping their economy flourish and civil society to strengthen. The British government’s trade envoy’s links to the country are a mark of the value we attach to that relationship and its importance both here at home and to the people of Azerbaijan. Long may it continue.

Edward Lord is a member of the City of London Corporation and the Deputy Chairman of the European Azerbaijan Society