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INTRODUCTION
Context
It has been more than a decade since the collapse of the Soviet Union and the transition process that it triggered in the South Caucasus. Its population has experienced war for nearly half this time. Poverty is widespread, and the rise of patronage politics continues. The region is struggling to attract foreign investment and, despite hopes for continued investment in oil and gas extraction, remains isolated from the global economy. However, there are signs of change. The new Georgian government has pledged to combat corruption. If managed well and considered in the context of the overall political economy of the region, oil in Azerbaijan could be used as a resource to support development. The half-constructed Baku-Tbilisi-Ceyhan (BTC) oil pipeline could be a lever for building confidence throughout the region. Ongoing talks between Armenia and Turkey over the opening of the border between Kars and Gyumri suggest both a step towards improved relations between the two countries and the possibility of a more integrated economic system in the South Caucasus region that cuts across traditional geopolitical fault lines.
The Economy and Conflict Research Group Project
New political forces and international dynamics mean that prospects for peace in the South Caucasus remain unpredictable. However, it is clear that there cannot be a sustainable peace without economic opportunity for its people. From War Economies to Peace Economies in the South Caucasus is the product of a 18 month period of research and analysis that aimed to explore how a better understanding of the region’s current economic dynamics might contribute to the resolution of its conflicts. It is the first book to examine this topic from the perspectives of those living in the region - the authors are members of the Economy and Conflict Research Group; a pool of experts from throughout the South Caucasus, covering Armenia, Azerbaijan, Georgia, Turkey and including Abkhazia, Nagorno-Karabakh and South Ossetia. The research project, facilitated by the conflict transformation NGO International Alert, aimed both to examine the nature of economies in the region with a view to exploring economy-related peacebuilding opportunities and to promote dialogue and cooperation between the researchers themselves. Working relationships between ECRG members fostered by the project were an important component as they all hail from different sides of the conflict divides and have different perspectives on the issues.