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3 Caucasus Journal of Social Sciences The University of Georgia 2008 4 UDC (uak)(479)(06) k-144 5 Caucasus Journal of Social Sciences Editor Julietta Andghuladze Editorial Assistants Edward Raupp Ken Goff Erica Zaiser Editorial Board Edward Raupp, The University of Georgia Giuli Alasania, The University of Georgia Ken Goff, The University of Georgia Korneli Kakachia, The University of Georgia Michael Vickers, The University of Oxford Manana Sanadze, The University of Georgia Marina Gvelesiani, The University of Georgia Marina Meparishvili, The University of Georgia Mark Carper, The University of Alaska Anchorage Natia Kaladze, The University of Georgia Oliver Reisner, The Humboldt University Sergo Tsiramua, The University of Georgia Tamar Lobjanidze, The University of Georgia Tamaz Beradze, The University of Georgia Timothy Blauvelt, American Councils Tinatin Ghudushauri, The University of Georgia Ulrica Söderlind, Stockholm University Vakhtang Licheli, The University of Georgia, Tbilisi State University Caucasus Journal of Social Sciences is published anually by The University of Georgia. Georgia, Tbilisi, 0175. M. Kostava Street 77, Building V. Tel: (+995 32) 36 46 65, 36 53 59 E-mail: [email protected] [email protected] Copyright © 2008 Caucasus Journal of Social Sciences ISSN 1512-3677 6 7 Caucasus Journal of Social Sciences Volume 1, Issue 1, 2008 Content The Role of the Caspian Energy Game in Central Asian History Savas Genc ................................................................................................................................................. 8 Investment Climate in Georgia and Attracting Foreign Direct Investment Faruk Gursoy ......................................................................................................................................... 18 Child Poverty In Armenia Gohar Jerbashian..................................................................................................................................34 The European Union and Transcaucasus (South) Countries: On a Cross-road Munir Hussain.........................................................................................................................................52 Three Imperatives for Economic Growth: US and Georgia Edward Raupp .......................................................................................................................................81 Priorities of Small Business Management Temur Khomeriky................................................................................................................................94 Scenario Logic and Probabilistic Models of Bribes E. D. Solojentsev..................................................................................................................................119 Mass Media Effects and News Items Natia Kaladze....................................................................................................................................... 142 Covering Religion-Related News and Conflicts in the Caucasus: A Case Study of a Western “Christian Initiative” News Service Eric Freedman, Kuang-Kuo Chang, Richard Shafer..................................................150 New Light on a Complex Sight from the Early Modern Time on the Åland Islands. Ulrica Söderlind, Nikoloz Tskvitinidze .............................................................................176 Tbilisi According to Foreign Sources Giuli Alasania...................................................................................................................................... 200 The First Sovereign of Achaemenids, Cyrus, and “Life of Kartli’s” Nimrod Manana Sanadze.................................................................................................................................244 Precious Metal Revetments on Georgian Medieval Painted Icons: Some Observations on a Devotional Practice Nino Chichinadze...............................................................................................................................259 Statement of the Problem (Task) of Optimization of Mode Irrigation Elizabeth Asabashvili .....................................................................................................................280 8 The Role of the Caspian Energy Game in Central Asian History Savas Genc Istanbul Fatih University Abstract One significant geopolitical consequence of the demise of the Soviet Union was the rise of intense political and commercial competition for control over the vast energy resources of the newly independent and vulnerable states of the Caucasus and Central Asia. Following the collapse of Communism, the ex-Soviet republics of Central Asia, particularly Azerbaijan and Kazakhstan, have been trying to exploit their natural resources, since they consider oil to be the prime means of securing their economic and political independence. This article is an independent analysis of the main issues facing the oil and gas sector developments in the countries of the former Soviet Union gifted with major petroleum resources: Kazakhstan, Turkmenistan, Uzbekistan and Azerbaijan in Transcaucasia. Will Caspian oil redraw the global energy map? What is the importance of the Caspian oil for the world market? And what is Caspian energy potential in Central Asian history? kaspiis energo-TamaSis mniSvneloba centraluri aziis istoriaSi savaS genC stambolis faTihis universiteti sabWoTa kavSiris daSlis erT-erTi mTavari geopolitikuri mniSvnelobis Sedegi iyo kavkasiisa da centraluri aziis axlad damoukidebel da daucvel saxelmwifoebSi, energo resursebis kon- trolze politikuri da komerciuli konkurenciis zrda. komunis- turi wyobis rRvevis Semdeg, centraluri aziis, yofili sabWoTa kavSiris qveynebi, gansakuTrebiT azerbaijani da yazaxeTi, Seecadnen TavianTi energo resursebi maqsimalurad gamoeyenebinaT, ramdenadac navTobSi ekonomikuri da politikuri usafrTxoebis garantias xedavdnen. naSromi warmoadgens damoukidebel kvlevas yofili sabWoTa kavSiris, navTobiT mdidar qveynebSi gazisa da navTobis sferoSi mimdinare movlenebis ganviTarebis Sesaxeb: yazaxeTi, TurqmeneTi, uzbekeTi da azerbaijani. ZiriTadi sakiTxebi, rasac naSromi ganixilavs aris Tu ra cvlilebebs Seitans kaspiis navTobi globalur energo rukaze? ramdenad mniSvnelovania kaspiis navTobi msoflio bazrisTvis da ra potenciali gaaCnia kaspiis energo resurss centraluri aziis istoriaSi? 9 The Central Asian-Caspian region maintains some of the world's richest energy resources. The collapse of the Soviet Union resulted in the emergence of eight independent states in Central Eurasia and shifted control of the Caspian Sea basin from the Soviet Union and Iran to Russia, Iran, Azerbaijan, Kazakhstan and Turkmenistan. The oil and natural gas reserves of the five Caspian Sea states make up about 14.6 percent of the world's total proven oil reserves, and almost 50 percent of the world's total proven natural gas reserves (British Petroleum, 2002). The Caspian region is reemerging on the world's energy scene. Commercial oil output began in Baku in the mid-19th century, mak- ing Transcaucasia one of the world's first oil provinces. In Central Asia, on the other side of the Caspian Sea, commercial production began in the early part of the 20th century. This article is an independent analysis of the main issues fac- ing the oil and gas sector developments in countries of the former Soviet Union gifted with major petroleum resources: Kazakhstan, Turkmenistan and Uzbekistan and Azerbaijan in Transcaucasia. Will Caspian oil redraw the global energy map? What is the importance of Caspian Oil for the World Market? Most of the Caspian littoral states are inclined to entertain quite positive views of the region's potential oil and gas production, and rarely compare the Caspian Sea to “a different Persian Gulf.” For the new independent states of the Caspian Sea, Azerbaijan, Kazakhstan and Turkmenistan, energy resources presented the best chance for sovereignity after the dissolution of the Soviet Union. The collapse of the Soviet Union and the end of the Cold War led to an impressive change in the landscape of Central Asian geopol- itics. The strategic geopolitical significance of Central Asia and the Caspian Sea region are evident. Established oil reserves are pegged at between 15 billion and 31 billion barrels- about 2.7 percent of total world proven oil reserves. The Caspian Sea region's natural gas potential is more important than its oil potential. Turkmenistan holds large reserves of natural gas, but its distance from key consumer markets may mean those reserves will be commercially difficult to develop. Confirmed natural gas resources of the Central Asian States are 230 to 360 trillion cubic feet represent about 7 percent of total world proven gas reserves (Emerson, 2000, pp. 174, 178, 184). 10 Proven Oil Reserves (billion barrels) Proven Oil Reserves Total Low High Possible Low High Azerbaijan 7.0 12.5 32.0 39.0 218.8 Iran 0.1 0.1 15.0 15.1 15.1 Kazakhstan 9.0 17.6 92.0 41.0 49.6 Russia 0.3 0.3 7.0 7.3 7.3 Turkmenistan 0.5 1.7 38.0 32.5 33.7 Uzbekistan 0.3 0.6 2.0 32.3 32.6 Total Caspian Sea Region 17.2 32.8 186.0 167.2 182.8 Source: US Energy Information Administration Table 1 Natural Gas Production (trillion cubic feet per annum) 1992 2000 2003 2010 Azerbaijan 0.28 0.20 0.20 0.60 Kazakhstan 0.29 0.31 0.49 1.24 Turkmenistan 2.02 1.89 1.89 4.24 Uzbekistan 1.51 1.99 2.04 3.53 Total Caspian Sea Region 4.10 4.39 4.62 9.61 Source: US Energy Information Administration The expansion of oil and gas resources in
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