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Home : Russia

Azerbaijan's Economic Collapse

March 2000

In Azerbaijan up to now there continues a total economic slump.Besides oil there stands idle practically the whole sphere ofindustry. Even the extraction of oil in 1999 in comparison with theprevious year also. The Bakinsky oil refineries are working at onethird of their capacity - there are not enough raw-materials.Azerbaidzhan today not only is not in a state to export oil, but itcan not even provide its own needs in oil products. The ballyhooaround new oil products - this is only "noise", since even theexisting oil branches are working with stoppages.

Already since 1993 all over the republic with the exception ofBaku, electricity is cut 3 - 4 hours per day. Since the 25th ofJanuary this routine has been introduced in the capital. A countryrich in resources has been plunged into gloom. The rural economy isin complete disintegration. Many inhabitants of the province aremoving either to Baku or over the border. They are abandoning therepublic with their families; only the old remain there to live outthe rest of their days. Because of destitution 60% of children ofschool age don't go to school. The sole source of existence is trade.Therefore before an article reaches consumption, it passes throughthe hands of 7 - 8 middlemen, and prices in Baku are 2 - 3 timesdearer than in Moscow or Turkey.

During the last year (1999) Azerbaijan has dropped from 62nd to103rd place in living standards. (Belarus to 70, Russia to 71). Buton the other side of the coin is the prosperity of the Azerbaijanbureaucrasy and oil kings. For example G. Aliyev the president(ex-secretary of the Central Committee of the CPSU and member of thepolitburo) travels for treatment all the way to Turkey - more exactlyhe flies in the presidential plane. This says it all.

Article translated from the March 2000 edition of the RussianMarxist Paper Workers'Democracy
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