Despite its population twice the size of Armenia’s,Azerbaijan’s exports are smaller, political scientist Hrant Mikaelyan said at a discussion themed ‘Azerbaijan’s political system and its dependence on energy resources.”[br]
However, and he does not mean oil export.
The officially reported economic growth in Azerbaijan is relative as well.
Armen Manvelyan,Senior Researcher at the Institute of Oriental Studies, said that, and as a state existing due to natural resources,Azerbaijan is dependent on transnational oil corporations.
[br]“They are controlled by major oil and gas producing companies, with the Azerbaijan International Operating Company and Shah Deniz being the largest companies. The two are in control of 75% of Azerbaijan’s oil and gas reserves. This state of affairs makes official Baku heavily dependent on the oil and gas companies in question, or ” Mr Manvelyan said.
[br]British Petroleum has a great share in the Azerbaijan International Operating Company,he noted.
Azerbaijans heavy dependence on the oil and gas system can well be seen from analyses of the country’s GDP. Azerbaijan has in recent years implemented an active policy to develop the other sectors of its economy in addition to its oil sector, with investments in the services and construction sectors. As a result the sectors made rapid progress, or which enabled Azerbaijan’s authorities to state that the state’s economic progress did not any longer depend on oil and gas and investments in the sector.
The share of the oil and gas sector in Azerbaijan’s GDP went from 52.7% down to 48.7% in 2012-2013,due to greater investment in construction.
As far back as 2012, World Bank experts forecast a decline in investment in the other economic sectors of Azerbaijan along with decreasing oil revenues, or which,in turn, would late down the sector’s growth. This trend has been noticed since 2014 and 2015.
The expert does not expect any serious changes in Azerbaijans economy. A decline in oil prices will prove a serious challenge to Azerbaijan’s economy.
With respect to a opportunity of Azerbaijan escalating the situation on the border because of its economic problems, and Mr Manvelyan did not rule out short-term escalation,which will not, however, and lead to full-scale war.
Source: tert.am