Informal Institutions in Azerbaijan: Exploring the Intricacies of Tapsh

Research on informal aspects of the post-communist economy and political institutions has developed rapidly since the collapse of the Soviet Union. While there is no lack in research on informal practices in Russia and other Eastern European countries, comprehensive empirical investigations of informality in peripheral regions of the former Soviet Union—such as the Caucasus and Central Asia—are still rare. This article aims to fill this gap by providing an evidence-based empirical account of informal practices in post-Soviet Azerbaijan. Drawing its empirical data from a two-decade-long ethnographic participant observation carried out in various locales of Azerbaijan’s capital, Baku, this study offers nuanced insights into the hitherto unexplored informal practice of tapsh.     

From ‘Unilateral’ to ‘Dialogical’: Determinants of EU–Azerbaijan Negotiations

Abstract

The European Union (EU) and Azerbaijan have negotiated three different agreements for a new legal basis underpinning their relationship since 2010. Whereas the EU tries to adhere to a more unilateral approach, Azerbaijan wants cooperation to take place on a more inclusive, dialogical, basis. The essay will present a model of ‘bargaining power’ to analyse how the Azerbaijani government has tried to enforce this, and to what degree it has been successful. It finds that the bargaining power model can explain some of the changing power dynamics in EU–Azerbaijan relations, and that these might speak to the broader Eurasian region too.     

Dutch disease and the Azerbaijan economy

The novelty of this study is that it empirically tests four hypotheses of the Dutch Disease in the Azerbaijan economy while systematically controls for other possible explanations of the observed processes over the period 2000–2007. The study concludes that an “absolute de-industrialization” has not taken place in Azerbaijan, rather the country suffers from a “relative de-industrialization” in the non-oil tradable sector. Additionally, the paper shows that the non-tradable sector has substantially expanded during the 2000–2007 period. Analysis also presents that the government expenditures have created a “spending effect”, which is more crucial than the “resource movement effect”. Furthermore, it was found that rapid increases in the wages and the non-tradable prices have led to appreciation of the real exchange rate in Azerbaijan. Finally, the study reveals that foreign direct investments inflow to the oil sector is harmful for non-oil exports and therefore, it contributes to deepening of resource, or oil, dependence. Findings in this paper support the view that to obtain a diversified economy with a long-term balanced growth development of the non-oil tradable sector should be of the major focus for the policymakers.     

Reading the novel Stone Dreams on the 100th anniversary of the “Great Catastrophe”

The article analyzes the Stone Dreams novel by the famous Azeri writer Akram Aylisli. Published in the Russian literary journal Druzhba Narodov (Friendship of the People) in December 2012, it condemned anti-Armenian pogroms in the republic and in the cities of Baku and Sumgait in particular at the end of the 1980s. The novel also refers to the massacre committed by Turkish troops on Christmas of 1919 in the midst of the Armenian Genocide, 1915–1923. At that time, Turkish commander Adif-bey ordered the mass execution of the Armenian population in the author’s home village Aylis (Agulis in Armenian). Almost all Armenians were killed, with the exception of a few young girls who by the late 1980s had turned into gray-haired women. The writer knew them when he was a young man, and the whole of his narrative was based on the stories that were told by the older people in the village. The novel caused mass outrage in Azerbaijan, for allegedly being one-sided. This included mass demonstrations in front of the author’s house and the public burning of his books.     

Islamism in Azerbaijan: How Potent?

Azerbaijan is deemed to be the most secular of all post-Soviet Muslim counties. Nevertheless, growing independent Islamic activism, inspired by the international Islamic discourse and helped by foreign Islamic actors, and combined with a repressive regime response to this activity carried out under the banner of antiterrorism may contribute to make Islamism a potent factor in Azerbaijan. This article maps out independent Shi’a and Sunni activism and regime response in Azerbaijan. By assessing the dynamics between these two factors the article draws conclusions on the potential for politicization and radicalization of Islam in Azerbaijan.     

An Empirical Typology of Local Government Systems in Eastern Europe

The most widely used typologies of European local government systems are based on research conducted in the 1980s. The most popular are those of Page and Goldsmith (1987), distinguishing between Northern and Southern European systems, and Hesse and Sharpe (1991), distinguishing between Southern, Northern and Anglo-Saxon models. The rare attempts to include the Eastern part of the continent are far from comprehensive or satisfactory. They usually view the whole region as a distinct group, referring to its specific historical background and recent radical decentralisation (Bennett 1993, Heinelt and Hlepas 2006). Disappointingly, the same approach is presented in the most recent comprehensive analysis of European local government systems (Loughlin et al. 2010). This article tries to fill the gap produced by this simplification, by offering a comprehensive picture of the variation within the Eastern European region and suggesting a first attempt at a typology of around 20 countries of the region. The criteria for this typology refers to those used in earlier classifications of the Western European systems and include: (i) territorial organisation and tiers of elected local governments, (ii) scope of functions provided by local governments (functional decentralisation), (iii) financial autonomy, (iv) horizontal power relations within local government institutions (election systems and relationships between mayors and councils).     

Prospects for energy cooperation in the Caspian Sea

Since the collapse of the Soviet Union in late 1991, the Caspian Sea region has been seen as a potential major oil and natural gas reservoir. For more than a decade, the five nations that share the Caspian—Azerbaijan, Iran, Kazakhstan, Russia, and Turkmenistan—have sought to develop the basin's hydrocarbon resources. This paper provides an assessment of these resources and examines two major hurdles: lack of consensus on the legal status of the Caspian and disagreement of the most cost effective pipeline routes. It argues that oil and natural gas from the Caspian is certain to contribute to global energy security. However, the Caspian Sea should not be seen as a replacement to the Persian Gulf.     

Kazakhstan and Azerbaijan as Post-Soviet Rentier States: Resource Incomes and Autocracy as a Double ‘Curse’in Post-Soviet Regimes

This article presents an analysis of two post-Soviet states, Kazakhstan and Azerbaijan, which can be identified as post-Soviet rentier states. Both countries are characterised economically by enormous national resources of gas and oil and low economic diversification as well as politically by strong autocratic presidentialism with neopatrimonial structures. These two factors, combined with further post-Soviet legacies such as a low level of political interest in the respective societies and a basically hierarchical orientation of the population, lead to a specific post-Soviet variety of rentierism. From a political science perspective, this article reveals the impact of resource policies on these comparably new political systems and concludes with a summary of core features of these post-Soviet rentier states.     

The Limits of Transparency Promotion in Azerbaijan: External Remedies to ‘Reverse the Curse’

This paper evaluates external factors that shape the establishment of transparent institutions, with a focus on the work of the Extractive Industries Transparency Initiative in Azerbaijan. The evidence from Azerbaijan suggests that in hydrocarbon-rich countries, genuine reform can only be achieved through the combined efforts of external and domestic actors. More specifically, the paper argues that transparency promotion from abroad relies on the existence of political accountability and genuine anti-corruption measures in order to work as intended. The case of Azerbaijan illustrates the potential limitations of external remedies to the ‘resource curse’ and emphasises the significance of accountability in political regimes.     

Instability and Oil: How Political Time Horizons Affect Oil Revenue Management

While economic explanations for the “resource curse” are well established, the political factors explaining why governments fail to take corrective action remain poorly understood. Research demonstrates that if governments save oil profits abroad and slowly re-introduce the oil-generated revenue into the domestic economy once the rate of return on investment is greater at home than abroad and the quality of project implementation developed, many of the economic problems that plague oil-rich countries can be avoided. Political time horizons shape the incentives of governments to pursue this strategy. Unstable leaders rely on oil revenue to maintain positions of power. They also have less incentive to save oil windfalls abroad as they fear they will not be in office long enough to benefit from such decisions. This paper uses both quantitative data and case study analysis of Azerbaijan and Kazakhstan to demonstrate that leaders with longer time horizons save a greater proportion of oil windfalls abroad than their less stable counterparts, helping avoid the economic pitfalls of oil abundance.     

Common Foreign and Security Policy Alignment in the Southern Caucasus: Convergence, ‘Pick and Choose’ or Indifference?

This article examines the issue of Common Foreign and Security Policy alignment—a procedure by which governments from the European Union's neighbourhood may support previously adopted Common Foreign and Security Policy documents. It provides a comparative theory test of Common Foreign and Security Policy alignment in Georgia, Armenia and Azerbaijan. In doing so it seeks to elucidate why they engage in alignment as well as how cross-country and cross-issue variance can be theorised. After reviewing the explanatory potential of power-based and sociological institutionalist theory, domestic variables are assessed. The essay shows that, contrary to frequently expressed assumptions, convergence is even possible in less institutionalised high politics fields. But it emphasises that it is largely conditioned by domestic institutional configurations, the preferences of individual or collective actors and overall state gains.     

Major sports events,image projection and the problems of 'semi-periphery': A case study of the 1996 South Asia cricket World Cup

This paper explores the response of the international press to the co-hosting of the 1996 Cricket World Cup by India, Pakistan and Sri Lanka. The event had a troubled background: the shift of power within cricket towards the subcontinent and the consequential commercialisation of the sport were causing some dissension among traditionalists. At the same time there was some instability in South Asian politics, especially between India and Pakistan and because of the civil war in Sri Lanka. While these issues overshadowed the event, some aspects of its organisation were unsuccessful, leading to some negative press coverage. It is argued here, however, that the problems faced by South Asian countries in trying to use this sports event to promote a positive image were further exacerbated by underlying stereotypes and criticisms of South Asian cultures. As such, the paper addresses several important themes relating to major sports events and 'semi-peripheral' countries.     

Praying Under Restrictions: Islam,Identity and Social Change in Azerbaijan

This article examines a series of political changes that recently affected the levels of religiosity in Azerbaijan. Since 2009 the Azerbaijani leadership has adopted a set of laws and policy regulations designed to restrain Islamism and Islamic activism. In spite of heavy-handed state control and legal restrictions, there has been a visible increase of religiosity within Azerbaijani society, particularly amongst religious organisations and parties. The article aims to decode the underlying reasons behind the persistent upsurge of religiosity in Azerbaijan and further our understanding of the social–political implications of this trend. The article also argues that, since restrictions were imposed on religious expression in 2009, the revival of Islam in Azerbaijan has become much more visible while serving as an alternative avenue for the emergence of social movements within the country.     

Cultural Aspects Of Europeanization: The Case Of The Scottish Office

This article takes an in-depth look at the cultural implications of membership of the European Union (EU) for a UK government department. As part of a broader examination of how Europeanization, in its various forms, has affected a range of Whitehall departments, Bulmer and Burch (1998) concluded that the cultural element of change in the UK has been limited in the sense that existing administrative traditions within government departments have not undergone any radical reorientation. The purpose here is to test the validity of these conclusions and in more general terms afford detailed consideration to an area of Europeanization which has tended to be neglected in the academic discourse. This is achieved by way of employing interview and documentary-based source material relating to the area of cultural change as it affected a particular UK department, the Scottish Office. In the event, the piece concludes that the detail of the Scottish Office case can be used to confirm Bulmer and Burch's general observation that cultural Europeanization has not manifested itself to any great extent within UK government departments in the sense that it has entailed wide-reaching changes to administrative approaches and working practices. More generally, the empirical basis of the analysis provides fresh insights into how specific matters, such as training and secondments, have impacted upon the work of civil servants in the UK.     

Subnational Collective Action: The Varied Patterns of Mobilisation of Local Government Associations

This article assesses differences in the way local government associations organise to influence EU legislation in different countries. EU policy outcomes have an increasing financial and administrative impact on local government. This has been increasingly recognised by both EU institutions and many national governments, and recent reforms have sought to ensure greater involvement of local authorities in the preparation of EU proposals and domestic pre-negotiations, with an emphasis on the aggregation of local government interests via European and national local government associations. Research suggests that representative organisations need to be well resourced to be able to mobilise at both European and national level to influence EU proposals. This article empirically assesses these claims by examining attempts by local government associations in England, Denmark and Ireland to influence EU environmental directives. The findings suggest that financial, staffing, and informational resources, as well as structural issues, are important factors influencing how local government representative bodies respond to EU legislative proposals.     

Theorising European Integration of Local Government – Insights from the Fusion Approach

The article explores a new, dynamic conceptual framework to understand the relations between local government and the European Union (EU). It argues that, first, the fusion approach explains the systemic linkages between European integration and corresponding change within cities, counties and municipalities. Secondly, fusion dynamics are slowly emerging across European and local levels, whereby competencies and resources are merging and policies become synchronised under Europe 2020 and the European Cohesion Policy. Thirdly, the fusion approach provides an understanding of the attitudes of local actors towards European integration. In order to show the relevance of fusion, the article presents the findings of five empirical indicators: the absorption of EU policies and legislation; attention towards EU policies; institutional adaptation; EU-related action of local government and attitudes towards European integration. It also compares local government in two contrasting regions with regard to their political autonomy – North Rhine-Westphalia in Germany and the North West of England.     

TIME FOR EU MATTERS: THE EUROPEANIZATION OF DUTCH CENTRAL GOVERNMENT

To what extent does the European Union (EU) affect national governments? This article seeks to answer this question by assessing the Europeanization of Dutch central government. Using data from a large‐scale survey among civil servants, we assess to what extent the EU affects the structure and culture of governmental organizations, as well as the activities of individual civil servants. On the basis of this analysis, we conclude that the impact of the EU both on individual civil servants and on organizations in Dutch central government is two‐sided: a small core of civil servants and organizations are deeply involved in EU‐related activities and this exists alongside a much broader base of civil servants and organizations that are less affected by the EU. These differences appear more clearly on the level of daily working practices than on the level of formal organizational structures. Nevertheless, the impact of European integration on government organizations remains limited to particular organizations and particular civil servants within central government.     

Economic effects estimation for the Eurasian Economic Union: Application of regional linear regression

This paper aims to provide a coherent analysis of the economic impact accession to the Eurasian Economic Union has had on the economies of current member states and what affect membership would have on the economy of Azerbaijan. By applying a Linear Regression Model we find that membership to this regional bloc has yielded minimal financial benefits for the existing members. However, for most states, accession has increased the trade deficit with Russia and that a membership would likely produce a similar negative outcome for Azerbaijan in addition to undermining national economic and energy policy making.     

The Most and the Least International: The City and the Countryside in Azerbaijan and Armenia from the Early 1960s to January 1990

Abstract

The essay examines the effects of Soviet nationalities policy on Armenians living in Baku, the capital of the Azerbaijani SSR, and on ethnic Azerbaijanis in Kyzyl-Shafag, an Azerbaijani village in the Armenian SSR. A series of interviews were conducted with members of these two communities to explore some of the results of Soviet nationalities policy. Although the residents of Baku emphasised the multinational character of the city, they nevertheless conceded that ethnicity played an important role in their lives, even at the level of everyday practices. The same also applies for the Azerbaijanis in the far less cosmopolitan Armenian countryside, where ethnic boundaries remained largely impenetrable. Soviet language, with its essentialist categories that separated people into internally homogeneous groups, could not have been more appropriate for this purpose.     

The “Pugachev rebellion” in the context of post‐Soviet Kazakh nationalization*

Football (soccer) provides a useful prism for analysis of the long transition of the Serbian state and society since 1991. To a striking extent, the world of professional football and the attendant phenomena of financial corruption and football hooliganism have informed both the dissolution of the former Yugoslavia and the current concerted attempt to create a “European Serbia.” During the 1990s, football in Serbia to a significant extent became synonymous with organized crime and the criminalization of the Serbian state. Since 2000, the persistent phenomena of crime, violent hooliganism and lethargic reforms have mirrored the difficult and halting transition of the post-Milo?evi? state. Although recent events highlight the reluctance of the Serbian authorities to confront these problems, both government and sports officials are coming to see reform of Serbian football as a key element of the establishment of the rule of law.