Azerbaijan, Kazakhstan to drive Caspian region growth

Azerbaijan’s economic growth and diversification have played a pivotal role in enhancing stability and security across the South Caucasus and Central Asia regions since the disintegration of the Soviet Union. In recent years, its principal partner in this project has been Kazakhstan.

Initially focused on their oil and gas reserves, both countries have been shifting toward agriculture and trade as key sectors.

These sectors are not only vital for the countries’ respective economic security but also for that of the wider Caspian Sea region.

Faced with Armenia’s military occupation of Karabakh and eight adjacent administrative districts for a quarter-century, now ended, Azerbaijan has shown impressive resilience. Official Baku’s goal for the next decade is first of all to develop the non-oil sector, with the goal of doubling its economic output.

Karabakh’s contribution

As mentioned, Azerbaijan has been rebuilding its economy in Karabakh since 2020, focusing on integrating the area into the national economy. An early-2021 decree set up the Karabakh Revival Fund for this work. Key projects include fixing the regional economy, rebuilding cities, and building infrastructure.

After the 44-day Second Karabakh War, ambitious projects in energy, roads and airports were set in motion, with more than US$3 billion spent so far on these efforts. Azerbaijan has showcased its economic strength with rapid and self-reliant reconstruction in Karabakh as well as formerly occupied East Zangazur.

Karabakh’s development is set to boost Azerbaijan’s economy through resource exploration and investments. The region’s riches in such natural resources as gold, copper, and other valuable minerals will help to spur growth in the region, and