It is already more than 10 years since the Caucasus region has been in the pool of problems. Many attempts have been made to solve these problems (war, political unrest, economic development, corruption, etc.) somehow. But so far the desired results there haven't been achieved.
If we look at the world map, the entire Caucasus is one small place. But the region is full of natural, cultural and economic resources. The Caucasus region consists of three independent countries - Azerbaijan, Georgia and Armenia. All three countries have a lot in common in culture and history. And this region can prosper if all three countries of the Caucasus can benefit from their resources as effectively as possible.
After the ruin of the Soviet Union in 1991, all three countries experienced an economic crisis.ÿReal GDP dramatically declined.ÿWithin a short period, high inflation had eroded real incomes, the exchange rates had declined, and financial reserves were depleted.ÿ This situation was aggravated by the collapse of traditional trade links between the republics of the former Soviet Union.
Despite the efforts of United Nations, European Union and Commonwealth of Independent States, the Caucasus region hasn't gotten free from its problems. But all three countries try to solve their own problems. We must know that, if our neighbor is in trouble, we shouldn't make it even worse! The only solution for the problems of the Caucasus is that all three countries must come together in order to solve the problems of this region. These problems are barriers to the growth of the region. And in order to get rid of these problems, these three countries must combine their power together.
My suggestion to solve these problems is regional integration. First of all, the countries must achieve regional security. And they have to do it themselves without the help of any third parties. This is because the future of all three countries is in their own hands! The next step is to stabilize the political situation in the Caucasus. As we know, the Caucasus region currently faces problems like Nagorny Karabakh, Abkhaziya, Osetiya, etc. And these problems have existed for more than 10 years.
As a matter of fact, solving the Nagorny Karabakh conflict in a peaceful manner could solve one of the biggest problems in the Caucasus, and give Azerbaijan, Georgia and Armenia an opportunity to develop regional communication and a transportation system. Economic development in Georgia could persuade Abkhaziya and Osetiya to combine with Georgia. Many foreign investors are willing to invest in the Caucasus region, but they won't due to political unrest.
The next step is to create a common market, like the European Union. This common market is very essential for integration. Countries will win economically from this integration. Reducing tariffs among these three countries could create tax benefits. And in the future, the countries could create a common currency in order to facilitate export/import operations (why the European Union created Euro).
Due to their geo-strategic location, all three countries have taken an active role in the Transport Corridor Europe Caucasus Asia project run by the EU, which will enhance trade and economic relations, and establish more confidence and cooperation across the region connecting Europe, the Caucasus and Central Asia.
In the long run, all three countries could think about becoming members of important organizations like the World Trade Organization. Besides, this regional integration will help to successfully integrate toward the European Union.
Education is also playing an important role. In order to succeed, all three countries need to send their government officials to highly developed countries so they can observe the economic and political situation in those countries and apply their theoretically gained knowledge to the Caucasus. Also, more and more student exchange programs should be encouraged between Caucasus and other highly developed countries, like the United States, Germany, England, France and Italy.
In conclusion, I want to say that,there is always an exit from any problem. But it requires a lot of hard work and effort to find that way. I think that the time has come, all three countries must make up their minds. There is no need to lengthen the current bad situation. Regional integration will be their key to success!
Emin Teymurovsky is a master's student in the Kogod School of Business.
