Transcaucasian countries @ru. What countries are included in Transcaucasia? Transcaucasian countries: characteristics Advantageous feature of the geographical location of the Transcaucasian countries

Geography 6th grade Lesson№ ____ Date of_________

Subject: Kazakhstan on the world map

Target: by the end of the lesson, students will be able to determine the geographical location of Kazakhstan and complete work on K/K

Tasks

They will be able to show the ATD and the capital on the map.

Will be able to describe the geographical location of Kazakhstan on K/K

Will be able to determine and evaluate geographic location

Equipment: Interactive presentation board, K/K, ATD card, A3 sheets, markers, pictures.

Expected Result:
At the end of the lesson, students will be able to:
- show the territory of the Republic of Kazakhstan;
- show neighboring countries;
- show and tell the geographical location of the Republic of Kazakhstan.
-format correctly contour maps.

During the classes

1. Organizational moment.

Good morning, guys! In order to lift your spirits, let's start with a warm-up. I ask everyone to stand in a circle. The warm-up is called “Welcome to different countries».

Greetings in different countries:

Children stand in a circle and greet each other:

In Kazakhstan, it is customary to shake hands.

In Italy - a warm hug.

In Brazil - a pat on the shoulder.

In Zimbabwe they rub their backs.

In Macedonia they greet with their elbows.

In Nicaragua they greet each other with their shoulders.

In Australia, among the Australian aborigines, they clap their palms, jump and push with their hips.

Pairing

And now I would like to divide you into pairs. I have prepared puzzle pictures, take one piece for yourself and find a pair for yourself (representatives of the Negroid, Mongoloid, European races)

Sit together those who have the same puzzle, remember the rules of working in pairs.

Introducing the Peer Assessment Sheet

Lesson stage	Criteria for evaluation	Completed not completed	grade
Survey homework
Defining Lesson Objectives
Blank board
Working with CC
Consolidation	Understanding the covered topic

Homework survey: Look carefully at your drawings and tell me why I suggested these particular pictures.

Children's answers:

Now I suggest you make a cluster based on the picture to describe a representative of the race.

Who is Miklouho-Maclay?

How do you understand the expression “Race Equality”?

More detailed information about Miklukh Maclay will be presented to you by Andrey Strymbovsky

Learning new material

Look carefully at the slide and try to name the topic of today's lesson.

Working in pairs, create lesson objectives.

Updating knowledge.

What is a geographical location?

Discuss in pairs why countries need to determine their geographical location?

Read the paragraph yourself (INSERT technique)

Now I suggest working with a blank board

2.7 million km.

552 thousand km 2

Determine the geographical location of Kazakhstan

Working with the map, fill out the table

Border	A country
North
East
Capital

Working with S/C in pairs

sign regions and regional centers

Indicate the states with which Kazakhstan borders

Working in pairs

Read part 2 of the paragraph on the history of the formation of the Republic of Kazakhstan

Build a circuit

	Feudal state

Mutual check of work between pairs

Reinforcing the material covered

Find the Arctic Circle on the map (parallel 66.60). Does it cross the territory of our state?
- In which hemisphere do we live? (in the northern hemisphere)
- The total length of the borders is 15,000 km. Of these, 12,000 km are by land and 3,000 km by sea.
- What countries does Kazakhstan border with? (students identify neighboring countries on the map)
- Which countries have the longest border?
- Which region of Kazakhstan borders Turkmenistan? Kyrgyzstan?
- With which countries does the border pass through the mountains? By sea?
- What does “sea border” mean? (sea border is 12 miles (22.2 km) from the coast)
- Determine which countries Kazakhstan borders only by sea? (Azerbaijan and Iran)
- How does the geographical location affect the nature of Kazakhstan?

Try to determine the geographical location of your village Zernograd.

Working in a table

V.Homework.

Astana is the capital of Kazakhstan (abstract, optional presentation)

Paragraph 51

Reflection

Fill

Liked
It was difficult

Application

Student Evaluation Sheet______________________

Lesson stage	Criteria for evaluation	Completed not completed (indicate with “+” or “-” signs)	grade
Homework survey	Know the races, be able to describe the external appearance of representatives of the races.
Defining Lesson Objectives	The ability to correctly determine the objectives of the lesson. (the goal must correspond to the topic of the lesson)
Definition geographical location village of Zernograd	Ability to correctly determine geographic location.
Blank board	Read carefully, memorize basic concepts.
Geographical location of Kazakhstan, working with a map, filling out a table	Be able to determine geographic location,
Working with CC	ability to work with a cash register card (ability to draw up)
Drawing up a diagram (history of the formation of the Republic of Kazakhstan)	The ability to highlight the main thing, correctly remember the chain of events.
Consolidation	Understanding the covered topic

Application

Student Evaluation Sheet______________________

Lesson stage	Criteria for evaluation	Completed not completed (indicate with “+” or “-” signs)	grade
Homework survey	Know the races, be able to describe the external appearance of representatives of the races.
Defining Lesson Objectives	The ability to correctly determine the objectives of the lesson. (the goal must correspond to the topic of the lesson)
Determination of the geographical location of the village of Zernograd	Ability to correctly determine geographic location.
Blank board	Read carefully, memorize basic concepts.
Geographical location of Kazakhstan, working with a map, filling out a table	Be able to determine geographic location,
Working with CC	ability to work with a cash register card (ability to draw up)
Drawing up a diagram (history of the formation of the Republic of Kazakhstan)	The ability to highlight the main thing, correctly remember the chain of events.
Consolidation	Understanding the covered topic

Border	A country
North
East
Capital

Border	A country
North
East
Capital

Border	A country
North
East
Capital

Reflection

Fill

Liked
It was difficult

Reflection

Fill

Liked
It was difficult

Reflection

Fill

Liked
It was difficult

Reflection

Fill

Liked
It was difficult

Reflection

Fill

Liked
It was difficult

Reflection

Fill

Liked
It was difficult

Tribal alliances long before our era	Feudal state	Unification of individual tribes, formation of the Kazakh Khanate	Invasion of the Dzungars, weakening of the Kazakh Khanate
three zhuzes accept Russian citizenship	Kazakhstan became part of the Russian Federation and the Kazakh Autonomous Republic was formed	The Republic of Kazakhstan became part of the USSR	Kazakhstan declared its independence

Tribal alliances long before our era	Feudal state	Unification of individual tribes, formation of the Kazakh Khanate	Invasion of the Dzungars, weakening of the Kazakh Khanate
three zhuzes accept Russian citizenship	Kazakhstan became part of the Russian Federation and the Kazakh Autonomous Republic was formed	The Republic of Kazakhstan became part of the USSR	Kazakhstan declared its independence

Tribal alliances long before our era	Feudal state	Unification of individual tribes, formation of the Kazakh Khanate	Invasion of the Dzungars, weakening of the Kazakh Khanate
three zhuzes accept Russian citizenship	Kazakhstan became part of the Russian Federation and the Kazakh Autonomous Republic was formed	The Republic of Kazakhstan became part of the USSR	Kazakhstan declared its independence

1. What determines the height and high seismicity of the Caucasus and the Armenian Highlands?

The height and seismicity of the Caucasus and the Armenian Highlands are due to their location in a young fold belt.

2. What are the origins of the landforms characteristic of the region?

Tectonic, glacial, accumulative, erosive.

3. What vegetation is common in the Caucasus?

On the mountain slopes there are humid subtropical broad-leaved forests of beech, hornbeam, and oak.

In Colchis there are evergreen boxwood, yew, and vines.

On the slopes of the Lenkoran lowland there are relict “Hircanian” forests of chestnut-leaved oak and ironwood.

4. *How is the specialization of the economy of the Transcaucasian countries related to their natural resources?

The specialization of the Transcaucasian countries and the presence of certain natural resources are directly related. The presence of oil reserves is associated with the development of oil production and oil refining in Azerbaijan. Ferrous metallurgy is developing on Georgia's own iron ore reserves. Non-ferrous metallurgy is developing on its own reserves of bauxite in Azerbaijan and copper and molybdenum ores in Armenia. Food and light industries based on local raw materials are developed in all countries.

5. *What are the features of the ethnic and religious composition of the population of Transcaucasia? What ethnopolitical problems exist in the region and how do they affect interstate relations?

The ethnic composition of the population of Transcaucasia is complex. Azerbaijanis, Armenians, Georgians, Abkhazians, Ossetians, Lezgins, Greeks, Kurds, Avars, Tsakhurs, Russians, Ukrainians and representatives of other nationalities live here.

All the peoples of the Caucasus belong to the southern branch of the Caucasian race, to the Caucasian, Indo-European (Armenians) and Altai families (Azerbaijanis). The long and complex history of relations between peoples and accumulated social problems have aggravated interethnic relations in the region. Having a high natural increase - in Georgia - 7%, in Azerbaijan - 21%, Armenians and Georgians are Christians. The majority of the population of Azerbaijan adheres to Islam.

As the Soviet Union began to disintegrate, it became clear that the old political structures had to give way to something new, but there was little agreement or clarity about what was to replace the old system. Under these conditions, tensions began to rise between ethnic groups that had previously managed to live side by side in relative harmony.

Nagorno-Karabakh was a bone of contention throughout the Soviet period. The Armenians both in Karabakh and in Armenia itself did not fully accept its inclusion in the Azerbaijani Soviet Socialist Republic as the Nagorno-Karabakh Autonomous Region (NKAO) in 1924, since more than 90% of its population were Armenians. When Mikhail Gorbachev's perestroika began, Nagorno-Karabakh was one of the first to take advantage of increased freedom of speech, and in 1988 the local elected body demanded that NKAO be allowed to secede from the Azerbaijan SSR and join the Armenian Soviet Socialist Republic. Azerbaijan rejected this demand, and tensions quickly grew. Moscow's clumsy attempts to keep the peace only made the situation worse, as both sides believed that Moscow was against them. By the time the Soviet Union officially ceased to exist at the end of 1991, the conflict between Azerbaijan and Nagorno-Karabakh (which Armenia tacitly supported) had erupted into full-scale conflict.

In Abkhazia, the cause of the conflict was primarily contradictions regarding the status of Abkhazia within Georgia. Abkhazia was an autonomous republic within the Georgian Soviet Socialist Republic, but when Georgia achieved independence and the radical nationalist regime of Zviad Gamsakhurdia came to power, Abkhazia began to complain that Tbilisi was encroaching on its autonomy. The Abkhaz referred to the 1925 Constitution, which they claimed gave them equal rights with Georgia, and thus demanded equal status with Georgia within a loose confederation. The Georgian side rejected these demands, fearing that they would be only the first step towards Abkhazian independence, and in August 1992, Georgian troops and paramilitary forces entered Abkhazia. Abkhaz fighters, with the assistance of the national movements of the North Caucasus and the tacit support of Russia, put up fierce resistance to them. By the end of 1993, when Russian troops were stationed in the region to enforce the ceasefire, most of the Georgian population of Abkhazia was forced to flee. The exact number of refugees is unknown, but it is believed there were more than 200,000.

IN South Ossetia the conflict began much earlier than in Abkhazia. South Ossetia for a long time harbored the idea of ​​secession from the Georgian Soviet Socialist Republic and unification with North Ossetia within the RSFSR and began to openly demand this. In response, Georgian President Zviad Gamsakhurdia abolished South Ossetia's autonomy in December 1990. When South Ossetia disagreed with this decision and began to initiate steps towards unification with North Ossetia, an invasion by Georgian troops followed, leading to fighting that left over 2,000 people killed and thousands more injured. Through mediation Russian President Boris Yeltsin declared a ceasefire in July 1992, which is monitored by the Joint Peacekeeping Force (JPKF), consisting of Russian, Georgian and South Ossetian military units. Relations between the two sides have improved in recent years, but it is still too early to talk about a final resolution of the conflict. Some residents have returned to their homes, but an estimated 50,000 people are still refugees from the conflict. South Ossetia is closely monitoring the situation in Abkhazia and is unlikely to agree to a settlement on less favorable terms, which means that in practice the resolution of these two conflicts will be closely interconnected.

Javakheti is located in the southwest of Georgia and borders on Armenia. The majority of the population of this area are Armenians. Although there has been little talk of separatist sentiment here until now, Javakheti remains a poor region with limited potential and little support from the government in Tbilisi. There are fears that calls to secede from Georgia and join Armenia will intensify if the situation continues to deteriorate. An issue that is particularly controversial is Georgian pressure for Russia to close its military base in Akhalkalaki. It is the main source of work in this region, and is also considered by the Armenian population as a guarantee against potential aggression from Tbilisi and Turkey. Therefore, any steps towards its closure are very unpopular and can greatly destabilize the situation.

After the collapse of the USSR, three independent states were formed in the Transcaucasus - the Republic of Azerbaijan, the Republic of Armenia and the Republic of Georgia. Despite their geographical proximity, each of them has its own history, they are distinguished by their national identity, they differ in natural resources and culture, and geopolitical orientation. Before the collapse of the USSR, the Transcaucasian republics in terms of economic development were at the level of moderately developed industrial-agrarian countries. They also have a lot in common in post-Soviet history.

During the years of independence, none of the Transcaucasian republics managed to avoid a total decline in production, impoverishment and migration of the population, military-political clashes both between the republics themselves (Armenia - Azerbaijan) and within each of them (Georgia, Azerbaijan). The breakdown of previous economic ties, socio-economic and political instability, a sharp stratification of the population in terms of level and quality of life, corruption and criminalization of society had an impact.

Russia is interested in building relations with integral and stable Azerbaijan, Armenia and Georgia. It is beneficial for her that these countries cope with social and economic turmoil and embarked on the path of sustainable development. Transcaucasia has been and remains closely connected with Russia geographically, historically, economically and politically. Economic leverage remains the main factor of Russia's influence in the region.

Russia will have to resolve with the Transcaucasian states not only the issue of the Russian language, the situation of the Russian and Russian-speaking population in these states, but also the problems of the numerous diasporas of the Transcaucasian peoples in the Russian Federation. We must not forget that, despite all possible shortcomings and difficulties, Russia’s peacekeeping activities have played and continue to play a key role in resolving conflicts in the Transcaucasus and in establishing a relatively stable peace in this region.

Let us briefly dwell on the development features of each of the Transcaucasian countries and their interaction with Russia.

The Republic of Azerbaijan

On October 18, 1991, the Supreme Council of the Azerbaijan Republic adopted the Constitutional Act “On State Independence of the Azerbaijan Republic”. The first post-Soviet decade became for the new state a time of socio-economic and political transformations and upheavals, and independent entry onto the world stage. The formation of the Azerbaijan Republic took place in conditions of a deep ethnopolitical crisis caused by the Karabakh conflict. As a result of the military clash between Azerbaijan and Armenia, Nagorno-Karabakh actually seceded from the Republic of Azerbaijan.

In the early 90s. XX century A situation close to political and economic anarchy has developed in Azerbaijan. Coming to power in 1993 G.A. Aliyev, who acted as a national and authoritative leader of Azerbaijan, contributed to stabilization, strengthening of statehood, and stopping the severe economic crisis.

Since the mid-90s. In Azerbaijan, there are positive trends towards slowing down the pace of negative processes in the economy, increasing oil production, and strengthening the national currency. Agriculture is developing, including Cotton growing, fruit growing and viticulture are traditional for Azerbaijan.

Azerbaijan has significant transport potential, which can turn the republic into one of the centers of international trade and re-export. The Republic is ahead of most CIS countries in terms of the volume of foreign investment; the lion's share of these investments is directed to oil production. At the official level, the desire to turn Azerbaijan into “ new Kuwait”, it is planned to increase oil production in 2010 to 60 million tons per year 7 .

At the same time, Azerbaijan still has many economic and social problems. For many Azerbaijanis, trade remains the only area where they can earn at least something. Migration processes are great. According to various sources, currently there are up to 1.5 million Azerbaijanis in the Russian Federation alone; about 60% of the republic's population lives from funds earned in Russia.

In foreign policy, Azerbaijan follows the multi-vector principle, but at the same time emphasizes special relations with Turkey. During a visit in February 1994, G.A. Aliyev to Turkey, the formula “one nation, two states” was used. There is an obvious trend towards expanding military cooperation between Baku and Ankara, and this cooperation is increasingly taking on the contours of a geopolitical military alliance.

The Azerbaijani leadership is developing ties with the OSCE, the Council of Europe and NATO, and intensifying relations with the United States and Western European countries.

Russian-Azerbaijani relations in the 90s. XX century were uneven, primarily due to the Karabakh problem. In recent years, Russian-Azerbaijani relations have been given a dynamic, pragmatic and mutually beneficial character. A major role in these positive processes was played by the visit of the President of the Russian Federation V.V. Putin to Azerbaijan and the visit of the new President of the Republic of Azerbaijan Ilham Aliyev to Moscow. Azerbaijani-Russian relations are not problem-free, but these problems are completely solvable, including those related to oil, gas and their transportation, as well as cooperation in the Caspian Sea.

Republic of Armenia

The Republic of Armenia is connected with the Russian Federation by ties of friendship and strategic partnership. After the collapse of the USSR, Armenia went through difficult times. There has been a sharp decline in production, and there has been an increase in the shadow economy and unemployment. According to experts, during the post-reform period Armenia lost about 90% of its economic potential, the volume of its GDP decreased 10 times, including the volume of industrial production by 80%. There was a massive bankruptcy of industrial enterprises, the curtailment of high-tech industries and scientific research.

The situation is aggravated by the limited natural resources of Armenia, as well as its transport blockade as a result of the armed conflict with Azerbaijan. The country is landlocked, which isolates it from the centers of not only global but also regional development. In addition, the Republic is forced to allocate significant funds to eliminate the consequences of the terrible earthquake of 1988. Then 25 thousand people died in the northern regions of Armenia, and tens of thousands were left homeless.

During the Soviet years, Armenia was characterized by a high level of education and culture, significant intellectual potential. Now, due to the difficult economic and social situation of the country, most of the working population, including highly qualified specialists, have emigrated, which has led to difficult-to-recover losses.

Creating a new state in difficult conditions, Armenia, among other things, relies on the powerful genetic potential and traditions of its people, who for many centuries stubbornly defended their national identity. Having adopted Christianity as the official state religion in 301, Armenia became a leading Christian outpost that successfully resisted Islamization. It gave the world outstanding educators, scientists, and cultural figures. Now it is a nation-state with an almost ethnically, culturally and religiously homogeneous people. Large, relatively rich and influential Armenian diasporas in the USA, France, and the countries of the Middle East East. The Armenian diaspora in Russia, mainly in Moscow and the Krasnodar Territory, numbers 2 million people 8 .

As for Nagorno-Karabakh, the absolute majority of the population of Armenia is in favor of its inclusion in the republic. However, the country's leadership (at least in words) does not set the task of annexing Karabakh to Armenia and speaks out for giving the people of Karabakh the right to determine their own destiny. Despite the ceasefire agreement signed in May 1994, which is being respected in principle, serious contradictions between the conflicting parties remain.

In the current geopolitical situation, Russia remains, essentially, the only country capable of providing Armenia with comprehensive support. Throughout the existence of Armenia as an independent state, there were practically no disputes in Russian-Armenian relations, unlike other Transcaucasian republics, which, for various reasons, often demonstratively distanced themselves from Russia. There are no obvious anti-Russian sentiments in the country. At the same time, in recent years there has been an obvious intensification of political forces oriented towards the West. Armenia's relations with Greece and Iran are developing.

The tragic death on October 27, 1999 of K. Demirchyan, Chairman of the National Assembly, and V. Sargsyan, the Prime Minister of the country, who adhered to a pro-Russian orientation, did not lead to a weakening of Russian positions in Armenia. Visits of the President of the Russian Federation V.V. Putin to Armenia in 2001 and 2005. confirmed the strategic partnership of the two states. Trade and economic ties and military-technical cooperation are strengthening between Russia and Armenia.

Russia's military presence in Armenia is noticeable. At military bases there are MIG-29 fighter-interceptors, a division of the S-300V air defense system - the most powerful anti-aircraft missiles in the world. The presence of Russian border troops on the territory of the republic has been legally formalized. The Armenian army is armed with Russian weapons. Russia, in essence, took upon itself the obligation to guarantee the security of the Armenian people and state.

Having close and multilateral ties with Russia and Western countries, and possessing a fairly combat-ready and effective army, Armenia is able to influence the provision of geopolitical stability in the region. In turn, Russia relies on Armenia to protect its strategic interests in the Transcaucasian region.

Republic of Georgia

Georgia is the first of the former republics of the Soviet Union to hold free parliamentary (October 1990) and presidential (May 1991) elections, which were won by Z. Gamsakhurdia. During his time in power, the Georgian leadership set a course for breaking relations with Russia, and in the national movement of the republic, from the very beginning, radicals, fighters “against imperial evil and violence,” took over.

Patriotic doping and the search for enemies overshadowed the main thing - economic, social and state building. Georgia's GDP decreased many times and at the beginning of the 21st century amounted to. 1/4 of the gross product of the Krasnodar region. Georgia, which was recently prosperous and rich, is now one of the poorest countries in the world. The population of Georgia has decreased; every fourth resident of the country has left for permanent residence in Russia 9 .

The situation in the country is seriously aggravated by conflicts with Abkhazia and South Ossetia. A distinctive feature of the events related to Abkhazia is that a people constituting less than a fifth of the population of the Republic of Georgia took the path of independence and the creation of their own state. On January 1, 1990, the population of Abkhazia numbered 537 thousand people, of which 44% were Georgians, 17% Abkhazians, 16% Russians, 15% Armenians 10 . On the night of August 13-14, 1992, units of the Georgian National Guard and regular army entered Sukhumi. A war began, which Georgia lost.

National-chauvinist forces in Georgia encouraged the South Ossetians to attempt to secede, to which the Georgian parliament immediately responded by abolishing South Ossetian autonomy. In response to the disagreement of the Ossetians in 1991, forceful methods were used. The Ossetians defeated the Georgians. In June 1993, a truce and ceasefire were declared. The result of the Georgian-South Ossetian conflict is more than 1 thousand killed, over 90 burned villages, tens of thousands of refugees.

During the reign of E. Shevardnadze, Georgia's relations with Russia were characterized by unevenness, contradictory statements and actions. With M. Saakashvili coming to power in September 2003, there was hope that there would be a turn for the better in the relations between the two countries. At first, the rhetoric changed and an interstate dialogue emerged. But then statements from Georgia regarding Russia began to sound more and more harsh and offensive.

M. Saakashvili, as a politician, strives to play on a large geopolitical field. He is inclined to consider himself a kind of prophet of “color” revolutions in the post-Soviet space. In fact, the geopolitical ambitions of the leader of the “Rose Revolution” clearly do not correspond to his real capabilities.

The President of Georgia has repeatedly made unfounded accusations against Russia, including at the 61st session of the UN in September 2006. At the same time, he constantly emphasizes his orientation towards the United States and special relations with them. This is confirmed by his desire to join NATO, speed up the process of withdrawing Russian military bases from Georgian territory, and strengthen and train the armed forces with the help of the Americans.

There is constant pressure on the breakaway territories, and provocations against Russian peacekeepers do not stop. Russia's patience was overflowing with the demonstrative arrest in Tbilisi of several Russian officers who were in Georgia legally. The Russian Federation followed with retaliatory actions regarding economic relations, transport links, and illegal migration. At Russia’s initiative, in the fall of 2006, a resolution was submitted to the UN Security Council and unanimously approved, condemning the belligerent rhetoric and unlawful actions of the Georgian side in the zone of the Georgian-Abkhazian and Georgian-South Ossetian conflicts, and extending the mandate of the Russian peacekeeping forces.

The precedent of the separation of Montenegro from Serbia, the obvious contradiction between such principles of international law as the principle of territorial integrity and the right of a nation to self-determination, the course taken by the Georgian leadership to resolve territorial problems using force - all this further aggravates the situation around Abkhazia and South Ossetia, which are internationally recognized conflict zones.

In 2006, Russia for the first time officially recognized the legitimacy of South Ossetia's aspirations for self-determination. In a statement, the official representative of the Ministry of Foreign Affairs of the Russian Federation noted: “We respect the principle of territorial integrity. But for now, this integrity in relation to Georgia is more of a possible state than a political and legal reality. And it can only be created as a result of complex negotiations, in which the initial South Ossetian position, as we understand, is based on a principle no less recognized in the international community - the right to self-determination.” 11 .

Restoring the territorial integrity of Georgia in the foreseeable future seems to be a difficult task. The Russian side continues to pursue a line of restraint and prudence in relation to the Georgian-Abkhaz and Georgian-South Ossetian conflicts, emphasizing that it will act in accordance with international law and the will of the people. Russia is not going to include new territories; it has no such plans, emphasized Russian President V.V. Putin at a meeting in Novo-Ogarevo with the heads of news agencies of the G8 countries and repeating this in television answers to questions from Russian citizens on October 25, 2006. At the same time, he noted that “not only the residents of South Ossetia or Abkhazia will find it difficult to explain why the Albanians in Kosovo they can secede from the country in which they are formally now located, but they are not allowed.” 12 .

Russia does not shirk the responsibility that mediation and peacekeeping duties place on it. The Russian Federation stands for the territorial integrity of Georgia, but pushing Abkhazia and South Ossetia towards Tbilisi means encouraging a state that openly opposes itself to Russia geopolitically. In addition, Russia cannot fail to take into account that most of the residents of Abkhazia and South Ossetia are Russian citizens (the process of actively accepting Russian citizenship occurred in 2000–2004).

Ultimately, it is not in Georgia's interests to aggravate relations with Russia. One can agree with the opinion of those who note that “Russia is Georgia’s first trading partner, the first buyer of its products, the main market for its labor force, the largest source of its foreign exchange earnings, the main supplier of gas, etc.” 13 . Russia is certainly not interested in escalating tensions. The Russian Federation and the Republic of Georgia are historically, geographically, economically, and culturally connected by incomparably more than what currently separates them.

Objectively, Russia and the Transcaucasian countries are destined to live side by side and together. Therefore, the main task is to find optimal ways and forms of cooperation in all areas, skillfully matching and taking into account the national and geopolitical interests of the Russian Federation and the post-Soviet states of Transcaucasia.

Transcaucasia includes Georgia, Abkhazia, South Ossetia, Armenia and Azerbaijan. All these states are presidential unitary republics. Georgia includes Adjara, and Azerbaijan includes Nakhichevan and Nagorno-Karabakh, which actually seceded from Azerbaijan. Armenia and Azerbaijan are part of the CIS, and Georgia, in response to Russia's recognition of the independence of Abkhazia and South Ossetia, left the CIS.
Territory and population of the Transcaucasian countries
Table 32

Transcaucasia is located in the southwest of the CIS. In the west, Transcaucasia has access to the Black Sea (Abkhazia and Georgia), and in the east it is washed by the Caspian Sea-lake (Azerbaijan). In the north, the Transcaucasian countries (Abkhazia, Georgia, South Ossetia and Azerbaijan) border with Russia, and in the south with Turkey and Iran. South Ossetia, Armenia and Azerbaijan have an inland geographical location. A special feature of Azerbaijan is the presence of an enclave - the Nakhchivan Autonomous Republic. Transcaucasia has a favorable economic and geographical position, but due to the large number of “hot spots” both within the region (for example, the Abkhaz-Georgian, Ossetian-Georgian and Armenian-Azerbaijani conflicts) and in neighboring Russia (Chechnya, Ingushetia and Dagestan) Transcaucasian countries have an extremely dangerous geopolitical position.
Transcaucasia is well provided with various natural resources. The mountainous regions of the Greater and Lesser Caucasus and the Armenian Highlands alternate with the plains of Colchis and Kura. However, in general, the entire region is characterized by increased seismic hazard.
The subsoil of the Transcaucasian countries is rich in various mineral raw materials. Abkhazia (Tkvarcheli) and Georgia (Tkibuli) have coal reserves, Georgia (Akhaltsikhe) also has brown coal reserves, Azerbaijan has oil and natural gas reserves (Artem-Ostrov, Neftyanye Kamni and Siazan). A small oil field is also located in Georgia (Mirzaani). Deposits of iron ores are located in Azerbaijan (Dashkesan), manganese ores in Georgia (Chiatura), copper ores in Armenia (Alaverdi and Kafan), polymetallic ores in South Ossetia (Kvaisi), aluminum ores in Azerbaijan (Alunitdag). There are large reserves of building stone: marble in Georgia, tuff and pumice in Armenia. Transcaucasia is famous for its mineral water sources: Borjomi (Georgia), Jermuk (Armenia) and Istisu (Azerbaijan).
Among non-mineral resources, agroclimatic, hydropower and recreational resources: resorts of the Black Sea coast (Gagra, Pitsunda, Gudauta, Sukhum, New Athos in Abkhazia, Batumi, Kobuleti in Georgia) and mountain resorts (Bakuriani).
In terms of population, the Transcaucasian states are classified as small countries: largest country The region is Azerbaijan with about 8 million people, less than 5 million people live in Georgia, and about 3 million in Armenia, just over 215 thousand in Abkhazia, and just over 70 thousand people in South Ossetia. Despite its small population, Armenia is distinguished by very high average population density (more than 100 people per 1 km2). As in all mountainous countries, the population is distributed extremely unevenly. Lowland areas and intermountain basins are very densely populated, while in high mountain areas the population density is less than one person per 1 km2.
All countries of Transcaucasia belong to countries with a modern type of population reproduction, and Georgia is currently experiencing a demographic crisis. In addition, all Transcaucasian countries are characterized by active emigration of the population, as a result of which the population in all countries of the region is declining.
Transcaucasia is complex national composition. The titular peoples (Abkhazians in Abkhazia, Georgians in Georgia, Ossetians in South Ossetia, Armenians in Armenia and Azerbaijanis in Azerbaijan) constitute the majority of the population in each country. In all countries of the region, part of the population (especially in the capitals) is Russian. Georgians, Armenians, and Greeks also live on the territory of Abkhazia; Adjarians, Armenians, and Meskhetian Turks also live in Georgia; Georgians live in South Ossetia; Kurds live in Armenia; Armenians and Talysh live in Azerbaijan.
In Azerbaijan, the dominant religion is Shiite Islam, in South Ossetia - Orthodoxy, in Armenia - the Armenian Gregorian Church (Monophysite Christians). A more complex religious composition is typical for Georgia and Abkhazia: Georgians, Greeks and Ossetians, like Russians, profess Orthodoxy, and some Abkhazians and Adjarians profess Sunni Islam.
The share of the urban population is relatively high only in Armenia (64%), while in Abkhazia, Georgia, South Ossetia and Azerbaijan it is significantly lower - about 50%. Tbilisi, Yerevan and Baku are millionaire cities. The largest cities in the region are Rustavi, Kutaisi, Batumi in Georgia, Sukhum in Abkhazia, Yerevan, Gyumri and Vanadzor in Armenia, Baku, Sumgait and Ganja in Azerbaijan.
A special feature of the employment of labor resources in Transcaucasia is the large share of agriculture, especially in Abkhazia, South Ossetia, and Georgia.
Population employment structure
Georgia, Armenia and Azerbaijan
Table 33

All countries of the Transcaucasus are currently experiencing an excess of labor resources due to the protracted severe economic crisis, therefore many citizens of the countries of the Transcaucasus are emigrating to other countries and, above all, to Russia.
The economic crisis and the collapse of the USSR dramatically changed the economic structure of the Transcaucasian countries. In terms of economic development, these countries were thrown back decades. In terms of economic structure, the countries of the region have turned into agrarian and raw material countries with weak development of the manufacturing industry. In Georgia and Armenia - once the industrialized republics of the Soviet Union - the importance of the agro-industrial sector has sharply increased, and in Azerbaijan the share of the fuel and energy complex has increased even more (see table 34).
Many sectors and centers of the economy of Georgia, Armenia and Azerbaijan can only be spoken of in the past tense.

Sectoral structure of industry in Georgia,
Armenia and Azerbaijan
The extractive industry still plays a significant role in the economy of the region: in Azerbaijan - the oil industry, in Georgia - the mining of coal, manganese and polymetallic ores, in Armenia - the mining of copper, molybdenum ores, tuff and pumice.
Georgia is distinguished by the development of ferrous metallurgy - on its territory there is the only metallurgical plant in the Caucasus in the city of Rustavi, and Azerbaijan is distinguished by the production of pipes (Sumgait).
Among the branches of non-ferrous metallurgy, aluminum production in Armenia (Yerevan) and Azerbaijan (Sumgait and Ganja) and copper production in Armenia (Alaverdi) developed in the past.
Mechanical engineering in the region has been almost completely curtailed. Once upon a time, the automotive industry was developed in Georgia (production of Kolkhida trucks in Kutaisi) and Armenia (production of off-road vehicles in Yerevan), production of electric locomotives (Tbilisi), aircraft manufacturing (Tbilisi), machine tool manufacturing (Tbilisi and Yerevan), electrical industry (Tbilisi, Yerevan, Baku).
Among the branches of the chemical industry, the production of mineral fertilizers (Rustavi and Sumgait), the production of resins, plastics and synthetic rubber (Yerevan), polymer processing (Yerevan and Baku), and household chemicals (Tbilisi) were developed. Large centers oil refineries are Baku and Batumi.

Light industry, which was developed in the past, is experiencing a period of decline. The region developed cotton (Gori, Gyumri, Ganja), silk (Kutaisi), wool, knitwear and leather and footwear industries (Tbilisi, Yerevan, Baku).
The importance of the food industry has sharply increased, where winemaking is a branch of international specialization (Tbilisi, Yerevan), and the fruit and vegetable industry (Kutaisi, Yerevan, Khachmas) and oil-processing industry (Tbilisi and Yerevan) are also developed.
A significant portion of the GDP of the Transcaucasian countries comes from agriculture. In all the republics of Transcaucasia, the production of grain crops (wheat, corn, barley), vegetable growing, horticulture, viticulture, meat and dairy cattle breeding, sheep breeding and sericulture is developed. Rice and cotton are grown in Azerbaijan. In Abkhazia, Georgia and Azerbaijan, subtropical agriculture - citrus fruit production and tea growing - has developed. Azerbaijan and Armenia specialize in growing tobacco.
In the countries of the Transcaucasian region, all types of transport have developed, and the region as a whole has a fairly dense transport network. The largest seaports in the region are Sukhum, Poti and Batumi in Georgia on the Black Sea, and Baku in Azerbaijan on the Caspian Sea. At the same time, due to the events of August 2008, railway communication between Georgia and Russia was almost completely stopped; due to the Armenian-Azerbaijani conflict, Armenia found itself in a transport blockade.
The most important foreign economic partners of the Transcaucasian countries are Russia, other CIS countries, as well as Turkey and Iran. The main exports of Transcaucasian countries are oil (from Azerbaijan), non-ferrous metals (especially from Armenia), wine, fruits, vegetables, tobacco (from Abkhazia, Georgia, Armenia and Azerbaijan). Imports are dominated by fuel, except Azerbaijan), machinery, equipment, consumer goods (in all countries of the region).
Questions and assignments Give an economic and geographical description of the countries of Transcaucasia. Name the factors influencing the formation and development of the economy of the Transcaucasian countries. Describe the problems of regional development. Give the economic and geographical characteristics of Georgia. Give the economic and geographical characteristics of Armenia. Give the economic and geographical characteristics of Azerbaijan.

Caucasus region, which is divided into North Caucasus and Transcaucasia, is located between the Azov and Black Seas on the one hand and the Caspian Sea on the other and has geostrategic importance due to the fact that it not only serves as a meeting place between East and West, namely Central Asia and Europe, but also more importantly, between the northern and southern regions. The North Caucasus marks Russia's southern border and the Transcaucasian sanitary protection zone, which includes the independent republics of Armenia, Georgia and Azerbaijan.

The Transcaucasian republics of the CIS include three countries bordering Russia: Azerbaijan, Georgia, and Armenia, which during the Soviet period made up one Transcaucasian economic region. The largest republic in terms of area and population is Azerbaijan, the smallest is Armenia. The economic and geographical situation of the Transcaucasian republics has currently worsened. Several points of military action in this region caused irreparable damage to the entire economic complex. There is no direct right now railway communication from Georgia to Russia via Abkhazia, the complexity of Azerbaijan’s ties with the Nakhchivan Republic, which is part of Azerbaijan, is caused by the Armenian-Azerbaijani conflict over Nagorno-Karabakh.

Industry of the Transcaucasian countries. Now, as elsewhere in the CIS, in the republics of Transcaucasia, industries that have their own resource supply have come to the fore. Azerbaijan is increasing its oil and gas production, attracting significant foreign investment. Georgia currently stands out as a major exporter of manganese ore, and is also trying to re-establish ties with Russia in terms of selling wine and citrus fruits to our market. Armenia, experiencing the most serious energy difficulties, was forced to restart a nuclear power plant that was closed after the Spitak earthquake (1988). This made it possible to restore, to some extent, the smelting of copper and molybdenum.

Agriculture. In Georgia, where a significant part of the lowland areas is located in a humid subtropical climate, the cultivation of tea, citrus fruits, and tobacco has developed; in the Kura and Alazani valleys, significant areas are occupied by vineyards. Field crops include wheat, barley, and corn. Sheep are grazed in mountainous areas. In Azerbaijan, the climate is much drier, which leads to the use of additional irrigation in agriculture for growing cotton, vegetables, and grain crops. In the northern and western regions, as well as in Georgia, grapes are grown. Significant areas of semi-desert pastures are used for grazing fine fleece and Karakul sheep. Armenia differs from the other two republics in its more severe climatic conditions. The grapes here have to be protected from severe frosts during the winter, but due to the dry climate, the grapes gain a lot of sugar in the summer, which makes it possible to produce cognac. Vegetables and grains are grown in the Ararat Valley; there are many peach and apricot orchards on the slopes. Among the minerals found here are coal, oil, gas, alunites, and salts. Among the metamorphic and igneous, one can distinguish ores of iron, manganese, copper, molybdenum, polymetallic, as well as deposits of marble, tuff, pumice, arsenic and barite ores.

It is believed that Armenia is an economic outsider, a “poor relative” in Transcaucasia, especially against the backdrop of seemingly more successful and enterprising neighbors:

• Azerbaijan, which constantly interests investors for its oil reserves and, thanks to this, has ensured a more or less acceptable standard of living for its population;
• Georgia, whose “economic” miracle rests mainly on external “infusions” and a number of reforms.

In 2009, Azerbaijan for the second time modern history lost to Georgia and Armenia in terms of foreign direct investment (FDI), although it was the only one of the three countries where FDI increased.

According to the Asian Development Outlook (ADO) 2010 report prepared by the Asian Development Bank (ADB), last year FDI into the Azerbaijani economy increased from $15 million to $472 million, but for the second year in a row the country was only third in terms of volume in the South Caucasus. In Georgia, which remained the leader, FDI fell from $1,523 million to $765 million, and in Armenia - from $925 million to $700 million. At the same time, the population of both Armenia and Georgia is 3 times smaller than the population of Azerbaijan. In terms of average per capita GDP production, Azerbaijan does not exceed and is even somewhat inferior to Armenia. Based on the nature of economic development, the “Armenian model” is more preferable, since traditional industries are simultaneously developing in Armenia. The structure of the block of heavy industry sectors in Armenia is in many ways similar to Azerbaijan. However, the same industries that have developed in Armenia have either been liquidated or disoriented and are in decline in Azerbaijan (organic synthesis, aluminum, electrical industry). In Azerbaijan, light industry has essentially been curtailed, while in Armenia this industry is developing at a faster pace and is mainly export-oriented. Over the past two years, Armenia has surpassed Azerbaijan in terms of economic and industrial development. After the end of the oil boom, real foreign investment in Azerbaijan began to give way to investment in Armenia. In terms of GDP per capita according to PPP in 2009 ($4,500), Georgia was in 149th place out of 228, behind it from the post-Soviet states only Kyrgyzstan, Moldova and Uzbekistan. In terms of economic indicators, Georgia today does not reach half of its achievements in 1990; in neighboring Azerbaijan and Armenia this indicator is much better.

Armenia

According to experts from the Masterforex-V Trading Academy, the factors of the current negative impact on the Armenian economy include:

1) Foreign policy factor – unfriendly external environment e.

• The border with Azerbaijan has long been closed due to the Nagorno-Karabakh conflict;
• the transport corridor with Turkey practically does not work due to differences in the assessment of the Armenian genocide;
• access to the outside world was only through a small section of the Armenian-Iranian border, but even here everything is not easy, as you know, international sanctions have been imposed on Iran, which naturally limits bilateral relations. The main foreign policy problem of Armenia is the unsettled relations with Azerbaijan.
• the dependence of Armenia on Russia arising from the unfriendly external environment, which uses the Armenian-Azerbaijani conflict for its own purposes;
• contradictions between Armenia and Georgia over Georgia’s Javakhetia, populated by Armenians, as a potential small “Karabakh”.

2) Negative socio-economic factors further development Armenia, of course, has more:

• the smallest of the republics of the former USSR, smaller in size than the Moscow region, and also without access to the sea;
• poor in natural resources. There are small reserves of copper, zinc, molybdenum, gold, lead and bauxite. Hence the great dependence on the import of oil, gas, high technologies with their market of reduced competition, and on the export of metals, where competitors are a dime a dozen. * lack of transit potential and budget revenues from this source;
• lack of transit potential and budget revenues from this source;
• the collapse of the USSR, which practically killed the country's industry, which was 90% integrated into the all-Union economy. For Armenia, the liquidation of the USSR had simply catastrophic consequences. Today, enterprises (of course, those that have survived) lack not only raw materials, but also markets.
• the numerous disasters that befell Armenia, first of all, the magnitude 7 earthquake in 1988, which affected almost 40% of the territory of the republic, claimed at least 25 thousand lives and reduced production by a quarter;
• a military conflict over Nagorno-Karabakh with Azerbaijan, which ended in a blockade, which left Armenians without work and at home without light and heat.
• mass emigration of the working population from Armenia.
• high concentration and monopolization of production and capital;
• impossibility of obtaining investments from the privatization of state property, because the industry has either collapsed or been sold into private hands. All major enterprises in the country have been sold;
• a relatively low share of small and medium-sized enterprises in GDP, among which there are practically no manufacturing enterprises. Armenia ceases to be a country producing a product;
• huge trade imbalance, imports significantly exceed exports, imbalances between them increased from 2.9 times in 2000 to 4.7 times in 2009;
• the shadow economy in Armenia, according to experts, is 35-40%, and if you believe the opposition, then the whole thing is 70%;

3) Political factor– instability of the political system.

According to Transparency International's Corruption Perceptions Index, Armenia ranked 120th out of 180 countries.

The crisis in Armenia: features of the fall and rise

The government, of course, did not sit with folded arms, analysts from the Masterforex-V Trading Academy clarify:

• government investment in infrastructure, water supply and irrigation systems was increased;
• small and medium-sized businesses were exempted from VAT and inspections;
• the main exporters were given interest-free loans.

Thanks to the measures taken, the country's economy, although slowly, entered the recovery stage. According to the CIS Statistical Committee, the leader in the growth rate of industrial production in the first half of 2010 was Kyrgyzstan - 41.8%, but Armenia was in second place - 12.3%, while in Azerbaijan there was only 3.5% growth. In terms of GDP growth among the CIS countries, Armenia is in fourth place - 6.7%, but Azerbaijan - 3.7%. GDP growth is expected to be 4% this year. The volume of foreign trade turnover in January-September of this year increased by 23.6% compared to the same period in 2009. Obviously, the lower it fell, the higher it rebounded.

Armenia's potential for future investors

Armenia certainly has development potential. In this regard, we can recall that from 2000 to 2009, the country’s GDP grew approximately 3 times, industrial production - 2.2 times. For several years before the crisis, Armenia demonstrated double-digit economic growth (in 2007, a record 13.8%). It is no coincidence that in the world ranking of unstable (failed) states (Failed States) by the American magazine Foreign Policy, Armenia took 101st place, while Georgia was 33rd, and Azerbaijan was 56th (the lower the country in the ranking, the more stable).

Advantages and potential of Armenia:

• special relations with Russia. There are 1,400 enterprises with Russian capital operating in the country, in such strategic areas as energy, transport and communications.
• diaspora or, as the Armenians themselves say, “the national cohesion of the Armenian people in the world.”
• geostrategic position. Armenia is located at the crossroads of routes connecting the countries of the East and West, trade routes between the Near and Middle East and Europe, therefore it is considered as a transcontinental state;
• Armenia is the only one of the 5 countries in the region that has a nuclear power plant;
• tourism. The country attracts many with its pristine beauty, such as Lake Sevan with its famous trout, the ancient Etchmiadzin monastery or the Tsakhkadzor ski resort.
• highly qualified personnel.

The most attractive sectors of the economy for investment.

Quite promising, according to experts at the Masterforex-V Trading Academy, are:

• gold mining projects,
• diamond cutting,
• tourism,
• information technology industries,
• projects for the construction of large metallurgical plants.

The country is going to develop transport infrastructure, plans to build railways and highways to connect Iran with the ports of Georgia. In general, Armenia, with its great investment potential, can become a trade and economic bridge connecting neighboring countries, moreover, a regional financial center.

But investors should keep a number of risks in mind when making decisions:

• Armenia’s dependence on global processes,
• the country is vulnerable from the point of view of internal political stability, the radical opposition, after a long break, has reasserted itself this year,
• lack of liquidity among banks,
• the infancy of the Armenian stock and currency markets,
• "oligarchic structure" of the economy. The oligarchs control imports, monopolize the most important sectors of the economy,
• Armenia's tax system is not so much complex as it is confusing. VAT plays a key role in Armenia’s tax revenues (in January-May of this year - 50.6% of the total taxes received by the state budget), and this tax is undifferentiated;
• in the tax and customs areas there are problems with transparency and equal conditions for entrepreneurs. The government's attempts to carry out a soft tax reform in order to redirect part of the shadow capital to the state budget are currently blocked.
• social orientation of the country's economy. Expenditures on the social sphere in the 2011 state budget are planned to be unprecedented - an increase in social benefits by 15%, pensions by 10%, etc. Social expenses will amount to more than 27%.

But still Armenia is a fairly liberal state, whose authorities strongly encourage foreign investors:

• more or less favorable investment climate,
• there are no restrictions on the movement of capital,
• sufficient stability of the banking system,
• The institution of property rights is strong.

According to the World Bank, according to the ease of doing business index, Armenia ranks 43rd (7 points higher than in 2009):

• in the field of property registration (5th place),
• founding a new business (21st place),
• in the field of obtaining loans (43rd place), although in the “Investor Protection” index it moved from 5th place to 93rd,
• in the field of tax payment (153rd place). In the annual ranking of economic freedom prepared by specialists from the Heritage Foundation analytical center, although Armenia dropped from 31st to 38th place, it ranks significantly higher than neighboring Azerbaijan (96th place).

And finally, for post-Soviet investors, it is of no small importance geographical proximity of Armenia, lack of visas, post-Soviet mental proximity and knowledge of the Russian language.

Azerbaijan

Economic review

During the Soviet period, Azerbaijan has always been more industrialized than Armenia and Georgia, but also less diversified, as a result of the slow flow of investment into the oil sector. Since then, for many months we have been hearing that the economy of Azerbaijan is getting better and better every day.

Economy of Azerbaijan For almost 70 years, it developed as part of the USSR economy, focusing mainly on the Russian market. The main sectors of the economy were oil production and oil refining industries and agriculture. In the 1960-1980s, mechanical engineering, chemical, textile, food and other industries developed in the republic. The war in Karabakh and political instability led to a significant drop in production in 1988-1994. After the conclusion of the Armenian-Azerbaijani ceasefire agreement in the conflict zone in May 1994 and the stabilization of the political situation, the economic decline was stopped. For more than a century, the backbone of Azerbaijan's economy has been oil, which accounted for 10 percent of Azerbaijan's GDP in 2005, doubling to almost 20 percent of GDP in 2007. Now that Western oil companies are able to identify deep-sea deposits untapped by the Council due to poor technology, Azerbaijan is considered one of the most important areas in the world for oil production and development. Proven oil reserves in the Caspian Basin, which Azerbaijan shares with Russia, Kazakhstan, Iran and Turkmenistan, are comparable to the size of the North Sea, although exploration is still in the early stages. Azerbaijan has concluded 28 production sharing agreements with various oil companies. New pipeline and delivery route systems for natural gas along the southern corridor to Europe are currently being considered and negotiated. In the late 1990s, in cooperation with the International Monetary Fund (IMF), Azerbaijan pursued a successful economic stabilization program, with annual growth of more than 10% since 2000. In 2009, Azerbaijan's gross domestic product grew by 9.3%, with growth in 2010 estimated at 9.8%.

Azerbaijan and international organizations

Currently, Azerbaijan has trade relations with 140 countries of the world, is a member of a number of international economic organizations, including the process of becoming a member of the World Trade Organization. On December 21, 1991, Azerbaijan joined the Commonwealth of Independent States (CIS). On March 2, 1992, it was admitted to the UN, and later joined other international organizations. Azerbaijan has the status of an invited member of the Council of Europe and is a member of the European Bank for Reconstruction and Development (EBRD), the International Bank for Reconstruction and Development (IBRD), the Organization of the Islamic Congress (OIC), the OSCE, the NATO Partnership for Peace program, the World War II trade organization (WTO) with observer status, etc.

Main industries of Azerbaijan

Azerbaijan is an industrial-agrarian country with highly developed industry and diversified agriculture. The metallurgical, chemical, and light industries are developing rapidly. In the beginning. 21st century Azerbaijan's economy is becoming mainly focused on raw materials. This applies not only to industry, but also to agriculture, where the acreage of industrial crops (for example, tobacco, cotton) has significantly decreased.

The most important place in the economy of Azerbaijan is occupied by:

• oil and gas industry,
• oil refining industry,
• chemical industry (mineral fertilizers, synthetic rubber, car tires, etc.),
• mechanical engineering industry,
• mining industry (extraction of iron ore and alunite) and non-ferrous metallurgy,
• food industry (canning, tea, tobacco, wine),
• light industry (cotton ginning, cotton, silk, wool, carpet weaving)

Azerbaijan's oil and gas reserves are attractive to foreign oil companies.

The second most important sector is agriculture. From total area The country's agricultural land accounts for 46% (approx. 4 million hectares), and half of it is pasture. They grow grains, industrial crops (cotton, tobacco), subtropical crops (pomegranate, tea, citrus fruits, persimmons), and grapes. Natural silk is produced.

Business environment of Azerbaijan

Azerbaijan has made efforts to modernize and reform the economy. The World Bank named Azerbaijan a “leader in reform” in its Doing Business 2009 report, reflecting its significant efforts to simplify domestic regulatory requirements. The government has adopted regulatory reforms in some areas, including significant opening up of trade policy, but poor governance in which commercial and regulatory interests are conflated and limiting the impact of these reforms. The government has largely completed the privatization of agricultural land and small and medium enterprises. Azerbaijan still suffers from arbitrary tax and customs administration, a judicial system that lacks independence, monopolistic market regulation, and systemic corruption. Business registrations increased by 40% in the first 6 months. Azerbaijan has also eliminated the minimum loan cutoff of $1,100, more than doubling the number of borrowers covered by the credit registry. Additionally, taxpayers can now file and pay taxes online. Azerbaijan's extensive reforms have taken it far from 97 to 33 in the global ease of doing business rankings.

Investments in Azerbaijan

A certain stability in the country and a long-term truce in the Karabakh conflict zone allows Azerbaijan to attract foreign investment to develop oil production and transportation. Azerbaijan leads among the CIS countries in terms of growth rates of foreign investment (from 10 to 50% per year). Since the second half of the 1990s, there has been an increase in capital investment in various sectors of the economy, primarily through extrabudgetary funds. During the period from 1996 to 2000, the amount of foreign investment amounted to $5 billion. Up to 50% of foreign investment goes to the development of mechanical engineering, communications, the food industry, the service sector, etc.

Major foreign investors. The Azerbaijani government has signed several important agreements on the development of oil and gas fields.

The most important factor of investor interest is the natural resources of Azerbaijan, the main part of which has been poorly studied due to a lack of material resources and outdated technological equipment. Attracting foreign capital to a certain extent is determined by the interest of the Azerbaijani side in the implementation of large investment projects, in connection with which it is right to note the participation of large transnational corporations (TNCs) in the investment process in Azerbaijan. In general, portfolio investments in the Azerbaijani economy have increased noticeably in recent years; today more than 20 large investment institutions have settled in Azerbaijan.

Basic industries for investment:

1. investments in the oil sector 51.5%;
2. Investments in industry amounted to 194.8 million manats (-25.1%);
3. investment in the electricity, gas and water sectors (AZN 50.8 million, +5.6 times);
4. agricultural sector (11.4 million manat, an increase of 3 times);
5. housing construction (AZN 24.7 million);

Investments in the transport sector, warehousing and communications sector (AZN 25.8 million).

Stable political and economic conditions have been created in the country. The most important comparative advantages of the Azerbaijani economy are the following:

• Azerbaijan is rich in natural resources, especially hydrocarbons;
• The level of education of the population is quite high, almost half of the population of the corresponding age has technical or higher education, the rest of the population mainly has secondary education. High level of qualifications of scientists, engineers, doctors, teachers, etc.;
• Azerbaijan has a developed infrastructure, including a developed road network, major irrigation systems, a good railway network, significant power generation capacity, and cable telecommunications.

Legislative framework of Azerbaijan

The country is continuously working to create a favorable investment climate. A number of measures are being taken to improve the legislative framework. Draft laws “On investment activity” and “On special economic zones” have been prepared. The legislative basis of the tax system in the country is the Tax Code of the Republic of Azerbaijan, which came into force on January 1, 2001.

Recently, the following changes have been made to the tax system:

• The income tax of enterprises and organizations has been reduced from 35% to 25%;
• Value added tax was reduced from 28% to 18%;
• The maximum level of taxes levied on the profits of individuals has been reduced from 55% to 35%; Social insurance payments have been reduced from 40% to 27%;
• The total number of taxes has been reduced from 15 to 9;
• Since 2001, entrepreneurs engaged in agriculture have been exempt from all types of taxes for a period of 3 years, with the exception of land tax;
• Since 2003, in order to further encourage the development of entrepreneurship in the regions of the country, differentiated income tax rates have been applied.

In order to eliminate double taxation and mutual encouragement and protection of investments, Azerbaijan has signed a number of agreements with foreign countries, including France, Austria, Great Britain, Norway, Turkey, Kazakhstan, Moldova, Russia, Ukraine, Georgia, Uzbekistan, and Belarus.

Until recently, foreign investment was very successfully attracted mainly to the oil sector. In the oil sector, foreign investments were most actively carried out in the development of production and social infrastructure and urban services. Large investments in construction were made by Turkish companies.

Currently, the strategic priorities for investing in Azerbaijan are:

• Investments in processing of increasing volumes of agricultural products;
• Investments in the creation of highly efficient infrastructure, in particular in energy, telecommunications services, water and gas supply systems;
• Investments in the expansion and renewal of industries serving the oil sector;
• Considering Azerbaijan’s enormous gas production capabilities, gas-based industries are developing promisingly. The country's oil revenues are considered as a source of long-term and stable development of the country's economic potential. Therefore, Azerbaijan's income from oil exports accumulates in the Oil Fund. The government attaches particular importance to the development of the oil sector with the attraction of foreign capital. Foreign investment is seen as a means of importing modern technologies and increasing the competitiveness of the Azerbaijani economy.

Georgia

In recent years, Georgia has become a dynamically developing country with growth rates that are among the highest in the world (in the best year of 2007, according to the IMF, the GDP growth rate was more than 12%; of course, the starting point was practically zero). If in 2003 the state budget of Georgia contained only $400 million, then in 2009 it was $4 billion. American Agency international development defined these transformations as "the most extensive, deep and rapid reforms undertaken by any country in the world in the last 50 years."

Among the most important components of Georgian changes:

1) sharp liberalization of its economy– the country has really minimized state regulation of all spheres of life. As part of this policy:

2) fight against corruption:

• a total purge and reduction of the state apparatus was carried out (by 20%), which simultaneously made it possible to significantly increase salaries, for example, for the minister, by 15-20 times;
• the rights and powers of officials of the state apparatus of Georgia have been significantly narrowed and eliminated;
• hundreds of officials (mayors, governors, ministers, judges) were arrested for corruption, and this happened publicly, in front of television cameras. At the same time, they were not particularly worried about the “presumption of innocence” and allowed them to simply buy their way (!) out of punishment;
• reform of the traffic police;
• reform of the Ministry of Internal Affairs, carried out by analogy with the reform of the traffic police. The country has become the least criminalized and corrupt in the region. Moreover, according to Transparency International, Georgia is the leading country in the post-Soviet space (with the exception of the Baltic countries).

• the majority in parliament, moreover, a constitutional one, is controlled by the pro-presidential party “United National Movement”;
• the government is absolutely in control judicial system countries;
• the opposition, hopelessly fragmented into a number of small parties fighting each other and hating each other, does not represent anything serious;
• persecution of dissidents. The opposition claims that Georgian prisons are now overcrowded with political prisoners;
• power control over television and media;
• harsh criminal laws;
• 11% of the state budget goes to the needs of the Ministry of Internal Affairs;
• and finally, amendments to the constitution have already been prepared, according to which the powers of the President in 2013 should pass partly to the parliament, partly to the president.

Benefits of Georgia for investors

We have to admit that although the country has moved ahead in terms of the quality of the investment climate compared to many post-Soviet countries, investors are still wary of investing serious money in Georgia. Meanwhile, the World Bank calls Georgia one of the most open countries for foreign investment. According to the Index of Economic Freedom, Georgia ranks 26th among 183 countries. Georgian economists are confident that this year GDP will exceed 6%. These facts are an important incentive for potential investors. For their more active participation in the Georgian economy, the authorities promise:

• introduce preferential taxes for IT companies: foreign companies will pay taxes in the minimum amount;
• develop a largely forgotten but potentially profitable source of income – tourism. Ambitious plans have already been announced - to attract five million tourists in a few years. In the meantime, dilapidated, ruined tourist centers and sanatoriums need serious investments;
• draw attention to the favorable geographical location of the country as an important economic asset. Indeed, arteries connecting East and West, Asia and Europe pass through Georgia; it is an important link in many transit projects - NABUCCO, transportation of liquefied and compressed gas;
• Given Georgia's significant hydro resources, the country can turn into a producer of cheap electricity.

According to preliminary data from the Georgian Statistics Service (Sakstati), which was published on December 14, the influx of foreign direct investment into Georgia in the third quarter of 2010 decreased by 7.3% compared to the same period last year and amounted to 160.4 million US dollars. As a result, the volume of investments for January-September 2010 amounted to 443 million US dollars, which is 6.6% less than the same period last year. In the third quarter of 2010, the largest amount of foreign direct investment in Georgia came from the Netherlands - $27.9 million; Next comes the USA - 21.6 million dollars; Russia – $18.6 million, Azerbaijan – $16.2 million and UAE – $13.5 million. The majority of foreign direct investment – ​​USD 49.7 million (31%) in the third quarter – was attracted by the financial sector; This is followed by the transport and communications industry - 40.5 million US dollars (25%); real estate – US$33.6 million (21%) and energy sector – US$16 million (10%).