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license for the import of goods into Israel.”23 The Israeli government is sure that this decision will have a positive effect on the development of trade and economic relations with Azerbaijan.
Israel is interested in developing the non-oil sector of the Azerbaijani economy. Consequently, Israeli companies are striving to establish relations with Azeri companies in tourism, telecommunications, construction, infrastructure, and agriculture.
C o n c l u s i o n
Despite the existing obstacles in the development of Azerbaijani-Israeli political and economic relations, Israel is one of Azerbaijan’s main trade partners: according to the results of 2006, it occupies fourth place after Italy, Russia, and Turkey. This fact proves once more that external factors cannot influence Azerbaijan’s foreign policy. Despite the fact that oil occupies the lion’s share of the goods turnover between Baku and Tel Aviv, the sides are taking serious steps to develop cooperation in the non-oil sphere. In particular, in February 2007, an Agreement on the Protection and Encouragement of Bilateral Investments was signed between Azerbaijan and Israel, and in May 2007, a Memorandum on Cooperation in the Transport Sphere was signed. Relations are also developing between the Azeri and Jewish diasporas, the representatives of which have recently been carrying out joint undertakings in different countries of the world. For example, in 2006, representatives of the Azeri and Jewish diasporas reached an agreement on presenting information about the Khojaly genocide at Holocaust museums throughout the world.24
So to sum up, it can be noted that the relations between Israel and Azerbaijan in recent years have stable positive dynamics that encompass essentially all vectors of their bilateral relations.
23 N. Gulieva, “Izrail’ sdelal shag k narashchivaniiu tovarooborota s Azerbaidzhanom,” Ekho, 22 July, 2004.
24 See: “Posetiteli muzeev Kholokosta uznaiut o Khodzhalinskom genotside,” Zerkalo, No. 106, 14 June, 2006.
Sudaba ZEINALOVA
Ph.D. (Hist.), senior researcher at the Bakikhanov Institute of History,
Azerbaijani National Academy of Sciences (Baku, Azerbaijan).
AZERBAIJAN-GERMANY: COOPERATION VECTORS
Abstract
This article looks at cooperation between Azerbaijan and Germany in the-context of European integration and presents a brief overview of how the polit-
ical dialog, economic relations, and cultural ties between the Azerbaijan Republic and the Federative Republic of Germany have been developing over the past 15 years.
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I n t r o d u c t i o n
On the threshold of the third millennium, the worldwide globalization, integration, and transnationalization processes related to scientific-technical progress, the breakthrough in communications, and the expansion of political, economic, and cultural cooperation between states and nations assumed greater significance. Integration, which constitutes a special stage in the internationalization of human life, is a natural result of the development of international relations, specifically the creation of political alliances, the augmentation of international trade, and the carrying out of cultural exchange.
Located at the crossroads between Europe and Asia, Azerbaijan is a rather complex geopolitical region with a strategic location and rich natural resources, making it a target of interest for both Western and Eastern states. Since the mid-1990s, after it acquired its independence, Azerbaijan has been gradually drawn into the integration processes, which was primarily manifested in the republic’s participation in international economic, energy, and supply line projects. One of the vectors of Azerbaijan’s foreign policy is its relations with the European states in the context of the republic’s integration into the European community.
The vectors and spectra of cooperation between Azerbaijan and Germany reviewed in this article are of immense importance and are a significant component of Azerbaijan’s integration into the European community. As a result, current Azerbaijani-German relations should be viewed in the light of the integration processes, mutual interests, and cooperation between the EU and Eastern states.
The Importance of Azerbaijani-German Relations in Azerbaijan’s Integration into the European Community
The European Union, which features in all the analytical systems of international relations, is at present one of the most successful integration organizations on the Eurasian continent. Today, uniting 27 states (2007), the European Union is acquiring not only an economic, but also a military-political component. After the enlargement of the EU in 2004 and 2007 when Eastern European and Baltic countries swelled its ranks, the interests of the “architects” of European integration were primarily concentrated on the East—on the countries of Central Asia and the Central Caucasus.
The EU’s main political interest in the East is focused on strengthening stable democratic regimes with a market economy and orienting them toward Western values and models of behavior. The European organizations are using different tools to achieve these goals, such as the TACIS and TEMPUS technical aid programs being implemented in these countries to support the structural and institutional reforms in the market economy, legislation, state structures, and education systems; TRACECA programs for modernizing the transportation infrastructure of the region, as well as political support. By stepping out toward the East, the EU is perceptibly augmenting its resource potential, enlarging its consumer market, and preserving the spatial dynamics of integration.
The European Union is paying great attention to the political and economic processes going on in the Eurasian space, including in the Central Caucasus, and is actively upholding its interests here. The Central Caucasus is an optimal corridor for transporting oil and gas from the energy-rich regions of the Caspian Sea and Central Asia. What is more, the Central Caucasus has the real chance of becoming a trade center between Europe and Asia. At present, the European Union is focusing its atten-
THE CAUCASUS & GLOBALIZATION
tion on several key regional issues, one of which is its becoming more involved in resolving the Central Caucasus’ problems. The resources of the Caspian Sea could become one of the main elements in diversifying energy supply to the EU countries. The development of major pipelines and transportation infrastructure and integration of the European Union’s energy systems will have a positive effect on the general development of the Eurasian supply line systems.1
One of the priority areas in cooperation between the European Union and the Central Caucasian states is relations with the Azerbaijan Republic. Its advantageous geopolitical position, Caspian energy resources, and rapid rates of economic development are all fundamental components for enhancing cooperation and relations between the European Union and Azerbaijan.
Azerbaijan has an advantageous geostrategic position, which is awakening the political interest of various countries of the world in the republic. Azerbaijan’s economy has high indices and occupies a leading position in terms of economic growth rates among the developing countries of the world, the republics of the region, and the CIS. Whereas in 2005, the GDP in Azerbaijan amounted to 12,522,500 manats, in 2006, it was 17,735,800 manats. In 2006, personal per capital income amounted to 1,189,500 manats, and per capita GDP to 2,120,300 manats.2 In 2006, the country’s GDP rose by 34.5% (one of the highest indices in the world), compared with the previous year.3 The growth in Azerbaijan’s economy was primarily related to the increase in oil production and development of the energy sector. Azerbaijan’s integration into the world economy is playing an important role in this development. Azerbaijan’s stickiest problem is objective settlement of the Armenian-Azerbaijani Nagorno-Karabakh conflict, as a result of which more than 20% of the republic’s territory is occupied by Armenian armed formations, more than one million Azeri refugees have been forcefully deported and exiled from their historical homeland, cities, villages, historical and cultural monuments, natural resources and preserves have been destroyed, and moral and material damage has been inflicted on the Azeri people. This problem forms the cornerstone of Azerbaijan’s political position on the international arena.
Today, when Azerbaijan is taking steps to reinforce its position on the world arena and is participating in various international projects, one of the priorities of the republic’s foreign policy is developing relations with Euro-Atlantic and European international structures, in particular with the European Union, NATO, the Council of Europe, and the OSCE. Azerbaijan has joined and is participating in NATO’s programs and the discussions at the Parliamentary Assembly of the Council of Europe. The steady course being steered toward integration into the European structures is regarded as an important step toward developing and strengthening the republic’s position in the world community.
At present, one of the most important vectors in Azerbaijan’s foreign policy is active cooperation with the European Union. Today, relations in the EU-Azerbaijan format have become more dynamic and qualitative. The EU, which is trying to diversify the deliveries of energy resources to Europe, is not only interested in Azerbaijan as a producer and supplier, but also as a transit state. This interest is in turn spreading to the entire region. Cooperation is mainly being manifested in the implementation of projects and agreements in the energy sphere. However, continental transport and communication projects are becoming equally important and pivotal. One of the basic elements of integration is bringing the products manufactured in Azerbaijan into compliance with European standards. Azerbaijan’s relations with the European Union are developing within the framework of such international programs as TACIS, TRACECA, and others.4
1 See: A. Burkhanov, “The EU Strategy in Central Asia: Successes and Failures,” Central Asia and the Caucasus, No. 3 (45), 2007, pp. 15-25.
2 See: Azerbaijan in Figures for 2007, Baku, 2007, pp. 11, 61 (in Azeri).
3 See: “Sotsial’no-ekonomicheskoe razvitie Azerbaidzhanskoi Respubliki v 2006 g.,” available at [http://www. economy.gov.az/Catalogs/files/file118457 6682902.doc]; Central Eurasia 2006. Analytical Annual, CA&CC Press®, Sweden, 2007, pp. 71, 80.
4 See: A. Gasanov, Azerbaijan's Current International Relations and Foreign Policy, Baku, 2005, pp. 494-497 (in
Azeri).
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Talks between the European Union and Azerbaijan are being held on a permanent basis. Several key questions feature on the talks agenda: future cooperation prospects within the European Neighborhood Policy, including carrying out the Action Plan adopted between Azerbaijan and the EU; human rights and democratization; and cooperation in energy and transport. With respect to regional peace, security, and stability, the Azerbaijani side has repeatedly noted the need for rapid settlement of the Armenian-Azerbaijani Nagorno-Karabakh conflict based on the principles of international law, including the territorial integrity, state sovereignty, and immunity recognized at the international level of borders.5
The development of cooperation with the EU’s European member states is the most important step toward Azerbaijan’s integration into the European community. The interrelations that have developed between the Azerbaijan Republic and the Federative Republic of Germany are one of the most important aspects in the European vector of foreign policy. Germany is a country located in the very center of Europe and integrated into the world economy. It occupies one of the leading places in the world in terms of economic power and trade turnover. German foreign policy has been pursuing the goal of sustainable global development. Today, the FRG is one of the leading countries in the European Union, Council of Europe, the G-8, NATO, the U.N., and many other international organizations. The main vectors in Germany’s foreign policy are promoting the development of the European Union, strengthening cooperation within the OSCE, enhancing the North Atlantic Alliance, increasing the role of international organizations, and expanding partnership relations in the West-East and North-South vectors.6
The political relations between the Azerbaijan Republic and the Federative Republic of Germany, which began in the 1990s, have been consistently ascending in several main political vectors: stronger bilateral political relations; the role of the Azerbaijan-Germany political dialog in the integration of this Central Caucasian republic into the European community, particularly into the European Union; and Germany’s support of Azerbaijan in the settlement of the Karabakh conflict at the international and regional level.
In February 1992, diplomatic relations were established between Azerbaijan and Germany, and the same year they opened their embassies in each other’s country. The Azerbaijani embassy in Germany was one of the republic’s first diplomatic representative offices abroad.7 Germany was one of the first European states to support Azerbaijan in the difficult years of the Karabakh war and recognize its territorial integrity.
Since the beginning of the 1990s, bilateral Azerbaijani-German relations have been dynamically developing in the context of Azerbaijani-European relations, which became an important priority of the republic’s foreign policy. During 1993-1996, relations between Azerbaijan and Germany became noticeably more active. For example, during this period several important visits and meetings took place that gave bilateral contacts between the Azeri and German sides a positive boost. In December 1995, the following documents were signed: a Joint Statement between Azerbaijan and Germany on the Fundamental Principles of Their Interrelations, an Agreement between the Governments of Azerbaijan and the FRG on Cultural Cooperation, an Agreement between the Governments of Azerbaijan and the FRG on the Care of Military Gravesites, a Treaty between the Azerbaijan Republic and the Federative Republic of Germany on the Encouragement and Mutual Protection of Investments, and a Memorandum between the Governments of Azerbaijan and the FRG on Financial Cooperation. These documents, which regulate the interrelations between the
5 See: M. Mirzoev, “Dialog razvivaetsia. Azerbaidzhan i Evrosoiuz obsudili voprosy dvustoronnego sotrudnichest-va,” Azerbaidzhanskie izvestia, 7 June, 2008, available at [http://www.azerizv.az /article.php?id=11365].
See: Germany. Facts, Frankfurt-on-Main, 2000. See: F. Sadykhov,
Adilogly, Baku, 2004, p. 159
6 !
7 See: F. Sadykhov, Diplomaticheskaia sluzhba Azerbaidzhana: politicheskie prioritety, etapy, formirovania,
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two countries in economic, cultural, and humanitarian spheres, formed the foundation of bilateral cooperation.8
Germany plays a significant role in the integration course Azerbaijan is steering toward the European community and cooperation with the European Union. In particular, the German leadership has repeatedly declared its support of the initiatives in the integration process, energy strategy, and republic’s participation in transcontinental energy and transport projects. As an architect of the European Union that holds a leading position in implementing European policy and strategy, the FRG supported Azerbaijan’s inclusion and participation in the EU’s European Neighborhood Policy. And the German side openly espoused this position at the talks between Ilham Aliev and Angela Merkel.
We will note that in 2007 Germany took the chair in the European Union and G-8. Energy security was a priority issue during Germany’s chairmanship in the EU. The following tasks were formulated in the chair’s program: “final formation of the internal electricity and gas market, greater efficiency, increased use of renewable energy resources, consolidation of cooperation with manufacturing countries and transit states, and formulation of energy policy oriented toward development.”9 The development prospects in transcontinental trade promise direct benefit for the EU. There are plans to build a hub of the energy corridor linking the East and West when creating more direct routes for delivering Caspian and Central Asian energy resources to Europe. The first steps toward this were taken with the launching of the Baku-Tbilisi-Ceyhan oil pipeline and the Baku-Tbilisi-Erzurum gas pipeline from Azerbaijan to Turkey, where they meet up with the European pipeline network.10 Germany is expressing an interest in the economic resources of the Caspian Region, particularly of Azerbaijan. Within the framework of European Union, Germany is rendering financial support to Azerbaijan and participating in joint international projects. Germany accounts for thirty percent of the 330 million euros allotted by the European Commission to Azerbaijan in the last decade.11
As chairman of the EU, Germany supported reinforcement of the European Neighborhood Policy. As German Chancellor Angela Merkel noted, Brussels will not be able to accept any new members into the EU in the near future. The EU has currently exhausted its enlargement potential after its most recent infusion. So the European Union is currently concentrating on building good-neighborly relations. Germany focused particular attention during its EU chairmanship on relations with the countries of the Black Sea Region, Central Asia, and the Central Caucasus. Specific steps were taken to assist democracy and modernization in the EU’s neighboring countries.12 Germany also initiated extending the EU’s policy toward the Black Sea and Caucasian regions as a regional element of the European Neighborhood Policy. These regions are not simply a strategically important transit corridor, particularly for energy, they also have untapped economic potential. By strengthening regional cooperation, the EU is also hoping to make a positive contribution to settling the frozen conflicts in the Central Caucasus.13
8 See: Nezavisimyi Azerbaidzhan: novye orientiry, in two volumes, Vol. 2, ed. by E.M. Kozhokin, Russian Institute of Strategic Studies, Moscow, 2000, p. 165; A. Mekhtiev, “Azerbaijan-Germania,” Consulting & Business, No. 7-8, 1999, pp. 7-8; A. Gasanov, Azerbaijan's Relations with the U.S. and European States (1991-1996), Baku, 2000, pp. 91-113 (in Azeri); idem, Azerbaijan's Foreign Policy: European States and the U.S. (1991-1996), Baku, 1998, pp. 75-94 (in Azeri); I. Guseinova, Azerbaijan in the Integration System into Europe, Baku, 1998, pp. 221-224 (in Azeri).
9 “Germaniia stanet predsedatelem ES i “Bol’shoi vosmerki,” available at [http://www.gzt.ru/world/2006/12/24/ 220025.html].
10 See: N. Norling, “EU’s Central Asia Policy: The Adoption of a New Strategy Paper 2007-2013,” Central Asia and the Caucasus, No. 3 (45), 2007, pp. 7-15.
11 See: Azerbaijan, No. 69, 4 April, 2007 (in Azeri).
12 See: “Angela Merkel nazvala prioritety Germanii kak predsedatelia ES,” available at [http://www.annews.ru/ news/detail.php?ID=69602&print=Y].
13 See: Publikatsia doklada Germanii kak predsedatelia ES ob ukreplenii Evropeiskoi politiki sosedstva, available at [http://soderkoping. org.ua/page15078.html?template=print].
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So today Germany is a European state with reliable political power and a developed economy that has immense clout in the European community and in European policy. What is more, Germany is the main European donor for the Central Asian and Central Caucasian countries. As a result, cooperation between Azerbaijan and Germany is extremely conducive to Azerbaijan’s integration into the European community. Germany supports Azerbaijan’s territorial integrity and peaceful settlement of the Nagorno-Karabakh conflict, which is repeatedly noted in official Berlin’s statements. A graphic example of this support was the humanitarian aid rendered to the Azeri refugees in the difficult war years. Germany understands that the participation of Azerbaijan and the other Central Caucasian republics in international projects, European integration, internal democratization, and the formation of a healthy social atmosphere directly depends on the settlement of the frozen conflicts and the establishment of stability in the Caucasian Region.
Azerbaijan-Germany: Economic Relations
Cooperation in the economic sphere is one of the most important vectors in Azerbaijani-German relations. Beginning in the 1990s, after diplomatic and political relations were established between Azerbaijan and Germany, economic cooperation became one of the highest priority vectors in bilateral relations. One of the first and important steps in this direction was the visit to Baku in May 1995 of a delegation headed by Federal Minister of Economic Cooperation and Development Carl Spranger. The minister said that the German government would allot 5 million DM to Azeri refugees, 1.8 million DM to support the democratic reforms in the republic, and 13 million DM to finance joint Azeri-German economic projects. The opening of the international takeoff runway at Baku’s Bina airport in May 1995 confirmed the efficacy of implementing joint projects in economic cooperation. In particular, Germany’s Wirtgen and Siemens companies participated in providing the Baku airport with state-of-the-art equipment.14
The Treaty between the Azerbaijan Republic and the Federative Republic of Germany on the Encouragement and Mutual Protection of Investments and the Memorandum between the Governments of Azerbaijan and the FRG on Financial Cooperation signed in 1995, and the Agreement on Financial Cooperation in Urgent Assistance to the Baku Airport Project signed in 1996 laid the foundation for economic Azerbaijani-German cooperation at the state level. Heydar Aliev’s visit to Germany in 1996, which indicated Azerbaijan’s willingness to cooperate in various branches of the economy, opened up broad and long-term prospects for the activity of German businessmen in the republic and for the infusion of German investments.
During the second half of 1990s, the number of Azerbaijani-German joint economic projects and German investments into the republic noticeably increased. In particular, Germany broadened its participation in developing the republic’s oil fields. The Deminex Company began cooperating with Azerbaijan in sea shelf development and oil production. Under a contract entered in 1997, Germany’s Deminex Company (now Wintershall) obtained the right to participate in developing the promising Lenkoran-Deniz and Talysh-Deniz oil fields.15
By the beginning of 1998, the total amount of funds Germany allotted to Azerbaijan amounted to 121,800,000 DM, including 93 million DM in soft loans and 28.8 million DM in gratuitous aid. The allotted funds were spent on improving the aviation security system at the Baku airport and Baku’s energy supply system, restoring and reconstructing the water supply system in several cities of the republic, implementing a program of assistance to the republic’s small and medium businesses, carry-
14 See: A. Gasanov, Azerbaijan's Relations with the U.S. and European States (1991-1996), p. 100.
15 See: I. Guseinova, op. cit., p. 221; Ezhegodniy spravochnic. Vostochnaia Evropa i SNG—ekonomicheskie sviazi v 2000 godu, Moscow, 2002, available at [www.polpred.com].
THE CAUCASUS & GLOBALIZATION
ing out agrarian reform, raising the qualifications of public health employees, and so on. In the summer of 1998, Germany announced it was issuing Azerbaijan a loan of 40 million DM to reform its economy. Another 7 million DM were allotted as scientific-technical aid. The loans were intended for privatizing agricultural enterprises, developing small and medium production units, and developing the necessary legal base for working in market conditions.16
Germany is one of the countries actively participating in rendering humanitarian and technical aid to Azerbaijan. In particular, during the difficult years of combat action and Armenia’s occupation of Azerbaijani territory, the German government built residential settlements for refugees by way of humanitarian aid in Barda, Imishli, and Naftalan, and made regular deliveries of food and medication. Under the agreements reached, Germany issued Azerbaijan loans to continue building an international airport, restore power transmission, and develop small and medium businesses. In particular, in 1995, the German government issued a soft loan of 10 million DM to Azerbaijan for 40 years to create a state-of-the-art security system at the Baku international airport, and 11.4 million DM in gratuitous aid for training the relevant staff. The FRG also allotted Azerbaijan 20 million DM within the framework of the European Union, including the TACIS program, as humanitarian aid for implementing specific projects and carrying out technical reconstruction.17
In subsequent years, economic relations between Azerbaijan and Germany became even more dynamic. Intergovernmental discussions have been held for the past few years at the official level on various questions of economic cooperation, as well as joint economic forums. On 23 December, 2003, the Agreement on Financial Cooperation between the Government of the Azerbaijan Republic and the Government of the Federative Republic of Germany was ratified on ensuring the participation of the German Organization of Investments and Development (DEG) in the authorized capital of the Azerbaijani Bank of Micro Financing signed in Baku on 5 November, 2003.18
Adoption of the Law of the Azerbaijan Republic of 1 March, 2005 on Approval of the Agreement on Cancellation of Double Taxation with Respect to Profit and Property Tax between the Azerbaijan Republic and the Federative Republic of Germany was also of great importance in enhancing trade relations between Azerbaijan and Germany. This law greatly facilitated trade relations, property shipment, and the business activity developing between the countries.19
On 16 February, 2007, an Azerbaijani-German business forum was held at the German House of Economics in Berlin attended by more than 30 Azeri and approximately 200 German businessmen. New bilateral agreements were signed at the forum on cooperation in the non-oil sector.20
The annual increase in the volume of German investments into the Azerbaijani economy and the increase in goods turnover and export-import operations are important indices of bilateral economic relations. Between 1993 and the end of 2006, the German government sent 165 million dollars to Azerbaijan in investments, 30.7% of which were invested in the oil and gas sector and 69.3% in the non-oil sector. During the years of independence (until 2004), the German government sent a total of
300,500,000 euros to Azerbaijan, 160,500,000 euros of which were allotted as financial and technical aid, and 140 million euros via the European Union.21
16 See: Nezavisimyi Azerbaidzhan: novye orientiry, pp. 166-167; Legislation Code of the Azerbaijan Republic, Book 1, 2007, pp. 243-251 (in Azeri).
17 See: A. Gasanov, Azerbaijan's Relations with the U.S. and European States (1991-1996), p. 104; A. Mekhtiev, op. cit., p. 8.
18 See: Legislation Code of the Azerbaijan Republic, No. 12, 2003, p. 2442 (in Azeri).
19 See: Legislation Code of the Azerbaijan Republic, No. 3, 2005, pp. 563-584 (in Azeri).
20 See: Bakinskiy rabochiy, No. 31, 17 February, 2007; [http:// president.az/jsp/PShowArt.jsp?lang=ru&id=1024]; [http://www.day.az/view.php?id=70767]; [http://www.day.az/news/economy/70706.html]; [http://capital.trend.az/ ?show=news&newsid=807192&catid=505&subcatid=463&lang=RU]; [http://abc.az/cgi-bin/wnews_one.cgi?nid=12154]; Azerbaidzhanskie izvestia, No. 30, 17 February, 2007; Azerbaidzhan i mir, No. 2, 2007, p. 19.
21 See: Azerbaijan, No. 34, 16 February, 2007; No. 69, 4 April, 2007 (in Azeri); Businessman, Informational-analytical journal, December 2004, pp. 16-18.
Export-import operations and the volume of goods turnover between Azerbaijan and Germany are increasing with each passing year. For example, in 2005, goods turnover between Azerbaijan and Germany amounted to 291,127,100 dollars, import to 256,325,500 dollars, and export to 34,801,600 million dollars.22 Goods turnover between Azerbaijan and Germany for 2006 amounted to
412,700,000 dollars, import to 403,700,000 dollars, and export to 9 million dollars, while trade turnover for January-March 2007 amounted to 199,700,000 dollars.23 If expressed in percentages, in 2004 export-import operations between Azerbaijan and Germany amounted to 3.3%, in 2005 to 3.4%, and in 2006 to 3.5%.24
Table 1
Foreign Trade Relations between Azerbaijan and Germany25
Years Import Export
|| in thou. dollars ||
1998 46,706 5,572
1999 46,254.1 7,623.2
2000 67,552.3 8,293.0
2001 72,840.3 12,864.2
2002 83,453.9 28,773.3
2004 198,477.8 37,596.5
2005 256,325.5 34,801.6
2006 403,699.7 9,004.7
The conclusion can be drawn from an analysis of the data presented in the tables that in recent years the volume of goods turnover has increased between Azerbaijan and Germany, the volume of German goods imported into the republic has grown, and the export indices are also gradually increasing. Petroleum products, raw cotton, canned goods, hazelnuts, etc. are the main commodities exported from Azerbaijan to Germany, while Azerbaijan imports transportation means and spare parts, heavy industry production, medical equipment, etc. from Germany. Between 2005 and 2006, the volume of German investments in different segments of the Azerbaija-
22 See: Azerbaijan in Figures 2006, Baku, 2006, p. 111 (in Azeri).
23 See: “Reference on the Dynamics of Trade Relations between the Azerbaijan Republic and the Federative Republic of Germany,” available at [http://www.economy.gov.az/Catalogs/files/file1187606153084.doc] (in Azeri); Trends in Azerbaijan's Economic Development, Analytical Bulletin, 2006, p. 38 (in Azeri); 2007, first quarter, p. 34; “Reference on the Development of Foreign Trade of the Azerbaijan Republic for 2006,” available at [http://www.economy. gov.az/ Catalogs/files/file1187240417363.doc]; [www.day.az/print/news/economy/89630.html] (in Azeri).
24 See: Socioeconomic Development, January 2004, p. 70; January 2005, p. 70; January 2006, p. 82 (in Azeri).
25 See: Azerbaijani's Statistical Indices 2000, Baku, 2000, p. 517 (in Azeri); Azerbaijan in the 20th Century, Part 2, Baku, 2001, p. 582 (in Azeri); Azerbaijan's Statistical Indices 2003, Baku, 2003, p. 635 (in Azeri); Statistical Annual of the South Caucasian Countries, 2002, p. 269; Azerbaijan in Figures 2005, Baku, 2005, p. 110 (in Azeri); Azerbaijan in Figures 2007, Baku, 2007, p. 115; Sh.G. Gajiev, Azerbaidzhan na puti k mirovomu soobshchestvu: strategiia vneshneeko-nomicheskogo razvitiia, Kiev, 2000, pp. 199, 471; R.M. Jabiev, Sotsial'no-ekonomicheskoe razvitie Azerbaijanskoi Re-spubliki za gody nezavisimosti, Baku, 2005, p. 38; “Reference on the Dynamics of Trade Relations between the Azerbaijan Republic and the Federative Republic of Germany.”
Table 2
Germany’s Investments in the Azerbaijan Republic (in mill. dollars)26
1995 1.2
1996 4.2
1997 16
1998 2.1
1999 6.2
2000 1.7
2001 1.2
2002 1.7
2003 0.5
2004 2.1
2005 21.5
2006 17.4
ni economy increased. Most of the joint Azerbaijani-German projects are related to the oil and gas sphere, electric power (including alternative energy sources), transport, and construction. There are also stronger business ties in the banking sector, information technology, agriculture, machine-building, the chemical and light industries, and trade. Keeping in mind the Azerbaijani-Germany business forums, meetings at the official level and in business circles, as well as the results achieved, it can be ascertained that the development of interstate economic relations, the increase in goods turnover indices, investments, and the increase in joint economic projects in recent years bode well for the future.
Today there are many large German companies operating in Azerbaijan in various spheres and segments of the economy. In 2004, approximately 100 enterprises functioned in Azerbaijan with the participation of German capital. The activity of these enterprises encompasses such spheres as oil production, infrastructure and power plant construction, transport, supply lines, services, trade, the manufacture of construction material and food products, and other sectors.27 Particular mention can be made of German companies such as Lufthansa, Siemens, which is engaged in programs for restoring electric conduits in Azerbaijan, building sub-stations for supplying electricity to the Sangachal oil terminal, delivering medical equipment for the republic’s medical centers, technical work on the lighting system at the Baku Heydar Aliev international airport, communication services, and so on, the Wintershall Company, which is engaged in oil production at fields close to Lenkoran, the German
26 See: Azerbaijan's Statistical Indices 2000, Baku, 2000, p. 274 (in Azeri); Azerbaijan in the 20th Century, p. 313; Azerbaijan's Statistical Indices 2002, Baku, 2002, p. 379 (in Azeri); Azerbaijan's Statistical Indices 2003, p. 372; Statistical Annual of the South Caucasian Countries, p. 237; Azerbaijan in Figures 2005, p. 120; Azerbaijan in Figures 2007, p. 126.
27 See: Businessman, Information-Analytical Journal, December 2004, pp. 14-15.
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Technical Support Society (GTZ), which assists Azerbaijan in developing small and medium businesses, the German Bank of Reconstruction KfW, and others.28
The German-Azerbaijan Business Association (DAWF), which has been operating in Baku since 1998, is one of the most important organizations taking direct and active part in expanding Azerbaijani-German economic relations. DAWF’s activity unites approximately 70 German and Azerbaijani enterprises. The Association forms a link in the development of economic ties between Azerbaijani and German economic and business circles. DAWF’s goal is to assist German-Azerba-ijani economic cooperation and invest German capital in Azerbaijan. In order to achieve this goal, the Association carries out the following work: assisting the establishment of business contacts between German and Azerbaijani enterprises, organizing trips of delegations to Germany and Azerbaijan, providing consultation services, organizing general and thematic meetings of members and guests, helping to establish contacts between the Association’s members and friends,
and so on.29
Based on the above, it can be concluded that Azerbaijani-German economic relations are being built on mutually advantageous cooperation and have been consistently on the up and up since the 1990s. The development of Azerbaijani-German economic relations is having a positive influence on Azerbaijan’s economic integration into the European community, its access to the European markets, its ability to attract European investors to the republic’s economy. German officials have repeatedly underscored their interest in Azerbaijan’s economic, particularly energy resources and their delivery to Europe. As an active participant in European policy, Germany is supporting Azerbaijan’s participation in international economic, energy, and supply line projects. On the other hand, within the framework of the European Union, Germany accounts for large part of the funds allotted by the EU to Azerbaijan.
Germany is one of the leading European countries in granting soft loans for implementing specific economic projects and gratuitous assistance, including humanitarian, as well as investments in the non-oil sector. In recent years, there has been an annual increase in the goods turnover indices and German investments into the republic. As of today, Azerbaijani-German economic relations are developing in different spheres—oil, chemical, energy, machine-building, construction, food, services, banking, etc.
Azerbaijan-Germany: Cultural Relations
Cultural relations between the Azerbaijani and German people, which have historical roots, are actively developing at the current stage and are supported both at the state level, which is demonstrated by the holding of culture days, scientific conferences, student and researcher exchanges, and at the level of public and private initiatives—concerts, exhibitions, film festivals, and so on.
The development of bilateral Azerbaijani-German relations has had a direct influence on strengthening cultural relations and cultural exchange. In 1995, an Agreement between the Govern-
28 See: Ibid., p. 40; Professional jurnah, 2007, p. 57; Businessman, January 2006, pp. 14-30; [http://www. caspenergy.com/31/2005_31_21.html]; Businessman, December 2004, p. 44; Professional jurnah, 2007, p. 56; Bakinskiy rabochiy, No. 92, 22 May, 2007; [http://www.gtz-legalproject.az]; Germany, Journal of the FRG Embassy, 2003, pp. 18-
19 (in Azeri); [http://www.gtz.de/en/weltweit/europa-kaukasus-zentralasien /5466.htm]; “Ronald Siller, pervyi vitse-prez-ident KfW po Evrope i Kavkazu: “Nasha tsel—uluchshit kreditovanie srednego i malogo biznesa v Azerbaidzhane” // Az-erbaidzhanskie izvestia, 24 October, 2007, available at [http://www.azerizv.az/article.php?id=11432].
29 See: Businessman, January 2006, p. 32; [http://www.dawf.com/azeri/frontend/index.php?uin=&id=1]; Professional jurnah, No. 2, 2007, pp. 44-54.
THE CAUCASUS & GLOBALIZATION
ments of Azerbaijan and the FRG on Cultural Cooperation was signed in Baku, which officially confirmed and helped to establish a cultural dialog between Azerbaijan and Germany. In recent years, the number of meetings, cultural programs, and scientific undertakings supported at the official level of both countries has increased.
A vibrant example of cooperation in this sphere at the government level was the Azerbaijani Culture Days held in the FRG. In honor of Azerbaijan’s 15 th anniversary of independence, in October 2006 Ten Days of Azerbaijani Culture were held in the German cities of Berlin, Mainz, Stuttgart, and Frankfurt-on-Main. During the festival, Azerbaijani books were exhibited for the first time at the world-renowned Frankfurt Book Fair and cultural events were held—an exhibition of young Azerbaijani artists at the Berlin Art Gallery and concerts of Azerbaijani performers at the Berlin Philharmonic, in Stuttgart, and in Mainz.30
In compliance with the agreement reached between the governments of Germany and Azerbaijan, 2008 was declared the Year of Azerbaijan in Germany. As the Azerbaijani minister of culture and tourism noted, during 2008 there are plans to hold various cultural events and organize tours and exhibitions of Azerbaijani artists and performers in Germany in order to enhance the awareness of Azerbaijan’s rich culture and historical heritage abroad.31
Cultural contacts are maintained between individual Azerbaijani and German twin cities, for example, Baku-Mainz and Sumgayit-Ludwigshaven.
Relations between Azerbaijan and Germany are also maintained in education and the exchange of scientific achievements and researchers. Azeri students and young researchers are very interested in studying and taking practical research courses at Germany’s prestigious higher education institutions and scientific-research centers. Cooperation in education is being pursued through the German embassy, the DAAD organization (German academic exchange service), and the Goethe Institute.32 There is an interest in Azerbaijan in learning the German language, which is taught as a foreign language in secondary schools, higher education institutions, and other educational centers; there is a German department at the Azerbaijani University of Languages that trains specialists in German studies. A German Information Center-Library, which receives technical support and literature from Germany, was opened on the basis of this department with the support of the Goethe Institute.33
Many German researchers are showing a great interest in studying the history, rich cultural heritage, natural resources, and economic potential of Azerbaijan, cooperating with the scientific research institutes of the Azerbaijani National Academy of Sciences, and participating in the international scientific conferences being held in the republic. In particular, conferences on the history of Azerbaijan’s German heritage, at which Azeri and German scientists presented speeches and engaged in mutual scientific research, were held with the support of the Academy of Sciences.34
Azeris are showing an interest in German culture and attending the concerts of German classical music and exhibitions of German artists held periodically in Baku. Kapellhaus is one of the centers of
30 See: Halg newspaper, No. 234, 14 October, 2006 (in Azeri); Republic newspaper, No. 226, 6 October, 2006 (in Azeri); Azerbaidzhanskie izvestia, No. 28, 15 February, 2007.
31 See: “V 2008 godu budet proveden God Azerbaidzhana v Germanii,” available at [www.day.az/news/society/ 65509/html]; Azerbaidzhan i mir, No. 2, 2007, p. 14.
32 See: “DAAD—sodeistvie molodomu pokoleniiu kak budushchei elite v sferakh nauki i kul’tury, ekonomiki i politiki,” Zerkalo, 15 November, 2007, available at [http://www.zerkalo.az/rubric.php?id=28107].
33 See: E. Emir-Iliasova, Geopolitika vo vneshneekonomicheskikh sviaziakh Azerbaidzhanskoi Respubliki, Elm, Baku, 2003, pp. 108-109; Germany, Journal of the FRG Embassy, pp. 38-41, available at [http://www.auswaertiges-amt.de/diplo/en/Laender/Aserbaidschan.html#t1]; [http://www.baki.info/russian/clients/kapellhaus.php]; Azerbaijan, No. 146, 6 July, 2007 (in Azeri).
34 See: Papers from the First International Scientific Conference “Caucasian Germans—Germans in the Caucasus before World War I,” 22-25 September, 1997, Baku-Ganja, Elm, Baku, 2001.
THE CAUCASUS & GLOBALIZATION
German culture in Azerbaijan. In 1997, the Kapellhaus German-Azerbaijani Culture Society was organized with the support of the embassy of the Federative Republic of Germany in Azerbaijan. After reconstruction of its building in 2000, Kapellhaus has held many cultural events, German language courses, art exhibitions, concerts, film shows, and scientific conferences. The members of the Voz-rozhdenie National Cultural Society of Germans of Azerbaijan also gather and hold cultural events there.35
One of the symbols of German cultural heritage are the German kirks—churches built by the Germans in Baku, Hanlar, and Shamkir in the 19th-beginning of the 20th centuries and preserved as architectural and cultural monuments to this day. Today the German kirk in Baku is an organ hall for the philharmonic where concert programs are held. Projects are currently being considered for reconstructing and restoring these German cultural monuments, as well as German colonial homes preserved in Hanlar and Shamkir. Keeping in mind the picturesque countryside at these sites, the German side is confident that successful implementation of this project will help to develop tourism in the
region.36
Germans take a lively interest in Azerbaijani music, particularly mugham. This is shown by the concerts of world-renowned Azerbaijani composer Franghiz Alizadeh that are periodically held in large German cities and throughout Europe, whose creative work expresses both the Eastern philosophy of mugham and the European classical symphonic music genre.37
The Azeri diaspora in the FRG is playing an important role in presenting Azerbaijani culture in Germany and expanding Azerbaijani-German cultural contacts. According to the Azerbaijani embassy in the FRG, there are 120,000-140,000 Azeris living in Germany, among whom are representatives of science, art, and specialists in various fields. At present, there are more than 10 Azerbaijani societies in Germany. In 1996, a union of Azerbaijani communities was created. In 2004, a congress of Azeris living in Europe was founded. Azerbaijani societies function in almost every large German city.38 The Azeri diaspora engages in social work aimed at popularizing the history, current situation, and reality of the Nagorno-Karabakh conflict and the cultural heritage of the Azeri people in Germany.
As a result, Azerbaijani-German cultural relations supported at the state level are annually expanding. On the one hand, stronger cultural ties are promoting a mutual bilateral cultural exchange and mutual enrichment by acquainting Germans with the history, present day, and cultural heritage of Azerbaijan, while on the other, they are assisting the republic’s integration into the European community by acquainting Azeris with European cultural values. As a result, all the events, meetings, and research being carried out in different areas of culture are bringing the Azeri and German people even closer together and helping to broaden the cultural dialog between Azerbaijan and Germany, as well as the dialog between the cultures of the West and East.
C o n c l u s i o n
Thus, today the vectors of cooperation between Azerbaijan and Germany are expanding. The accent is placed on cooperation within the EU, as well as bilateral political and economic relations,
35 [http://www.baki.info/russian/clients/kapellhaus.php]; Germany, Journal of the FRG Embassy 2003, pp. 47-48; Businessman, December 2004, p. 50.
36 See: “Baku-Berlin: os’ vzaimoponimaniia i sotrudnichestva,” Azerbaidzhanskie izvestia, 24 August, 2004, available at [http://www.azerizv.az/article.php?id=209]; “Nemetskie tserkvi ‘reanimiruiut’,” Zerkalo, 11 July, 2007, available at [http://www.zerkalo.az/rubric.php?id=20394&dd=11&mo=7&yr=2007].
37 See: “V Berline sostoialsia avtorskiy kontsert Franghiz Alizadeh,” Zerkalo, 15 November, 2007, available at [http://www.zerkalo.az/rubric.php?id=26516&dd=15&mo=11&yr=2007].
38 [http://www.azembassy.de/]; [http://www.diaspora.gov.az/].
and cultural ties. Germany regards Azerbaijan as a state with an important geostrategic position in the Caucasus, rich natural resources, and good prospects in global integration. This is confirmed by the republic’s active participation in international energy and transport projects, which are an important aspect of ensuring the energy security of the European Union countries. In turn, Azerbaijan regards Germany as a strategic partner and leading EU member state, which supports the republic’s position in many problems of international policy, including with respect to fair settlement of the Armenian-Azerbaijani Nagorno-Karabakh conflict, and is assisting Azerbaijan’s integration into the European community.
