Page 40 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.74, # 1, 2017, pp. 34-47

resources and unique geostrategic location. Energy rich Azerbaijan is situated at the
crossroads of Southwest Asia and Southeast Europe. With an esthetic blending of
East and West and the easily found traces of Ottoman, Russian and Prussian
Empires make Azerbaijan‘s historical and cultural heritage highly affluent.
Azerbaijan is a highly secular Muslim country, characterized with a pluralistic
society and exemplary spirit of tolerance. Safe and secure domestic environment
coupled with the stable political dispensation shapes Azerbaijan as an ―island of
peace in a burning region.‖ Primarily, Azerbaijan‘s economy is propelled by oil
revenues; however the recent initiatives of Azeri Government to diversify the
economy particularly in the non-oil sectors merit due recognition. Concurrently,
efforts are being put in to project ‗Brand Azerbaijan‘ globally through persuasive
nation branding endeavours.
A fine interplay of geo-strategic location and energy riches makes Azerbaijan a
key player in the regional and global matrix. While the appreciable fiscal space and
peaceful domestic milieu helps in attracting foreign direct investment, mesmerizing
beauty and traditional hospitality of Azerbaijan makes it an ideal destination for the
tourists. Comprehensive economic reforms, economy diversification efforts,
liberalization of trade regime, simplified visa procedures and state patronage of
indigenous industrial production blend well with the nation branding effort.
Political Context of Brand Azerbaijan. Azerbaijan pursues a relatively
independent foreign policy with no major favorites. Balancing out of regional
obligations and global compulsions becomes quite challenging at times. It seems
like walking a tight rope every day. However, Azerbaijan exercises a delicate
balance in its relations with global, regional and Islamic powers. The country
maintains good relations with Russia and USA, Iran and Israel, Turkey and Europe,
China, Trans Caspian Central Asian States, Pakistan and other countries of Islamic
Ummah. Unresolved conflict of Nagorno Karabakh and liberation of 20% Azeri
lands from Armenian occupation governs the foreign and defence policy objectives
of Azerbaijan. Year 2016 was declared as the ―Year of Multi-Culturism‖
[http://www.azernews.az/nation/91533.html], and year 2017 is being celebrated as
the ―Year of Islamic Solidarity.‖ [―Speech at 13th Summit of Economic Cooperation
Organization (ECO)‖ http://en.president.az/articles/23020 -]. Due to its unique geo-
strategic location, Azerbaijan provides a safe conduit for transportation of Central
Asian and Eurasian energy riches from Caspian Sea to Europe, without having to
pass through Russia or Iran. This aspect of Azeri geography helps European Union
(EU) in improving the diversity and security of Energy supply from the East. Taken
into account the geographical proximity, cultural heritage, historical and ethnic

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