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The Caucasus Globalization Volume 4 Issue 3-4 2010 1 THE CAUCASUS & GLOBALIZATION INSTITUTE OF STRATEGIC STUDIES OF THE CAUCASUS THE CAUCASUS & GLOBALIZATION Journal of Social, Political and Economic Studies Volume 4 Issue 3-4 2010 CA&CC Press® SWEDEN 2 Volume 4 Issue 3-4 2010 FOUNDEDTHE CAUCASUS AND& GLOBALIZATION PUBLISHED BY INSTITUTE OF STRATEGIC STUDIES OF THE CAUCASUS Registration number: M-770 Ministry of Justice of Azerbaijan Republic PUBLISHING HOUSE CA&CC Press® Sweden Registration number: 556699-5964 Registration number of the journal: 1218 Editorial Council Eldar Chairman of the Editorial Council (Baku) ISMAILOV Tel/fax: (994 12) 497 12 22 E-mail: [email protected] Kenan Executive Secretary (Baku) ALLAHVERDIEV Tel: (994 – 12) 596 11 73 E-mail: [email protected] Azer represents the journal in Russia (Moscow) SAFAROV Tel: (7 495) 937 77 27 E-mail: [email protected] Nodar represents the journal in Georgia (Tbilisi) KHADURI Tel: (995 32) 99 59 67 E-mail: [email protected] Ayca represents the journal in Turkey (Ankara) ERGUN Tel: (+90 312) 210 59 96 E-mail: [email protected] Editorial Board Nazim Editor-in-Chief (Azerbaijan) MUZAFFARLI Tel: (994 – 12) 499 11 74 E-mail: [email protected] (IMANOV) Vladimer Deputy Editor-in-Chief (Georgia) PAPAVA Tel: (995 – 32) 24 35 55 E-mail: [email protected] Akif Deputy Editor-in-Chief (Azerbaijan) ABDULLAEV Tel: (994 – 12) 596 11 73 E-mail: [email protected] Volume 4 IssueMembers 3-4 2010 of Editorial Board: 3 THE CAUCASUS & GLOBALIZATION Zaza D.Sc. (History), professor, Corresponding member of the Georgian National Academy ALEKSIDZE of Sciences, head of the scientific department of the Korneli Kekelidze Institute of Manuscripts (Georgia) Mustafa AYDIN Professor, Ankara University (Turkey) Irina BABICH D.Sc. (History), Leading research associate of the Institute of Ethnology and Anthropology, Russian Academy of Sciences (Russia) Douglas Professor, Chair of Political Science Department, Providence College (U.S.A.) W. BLUM Svante Professor, Research Director, Central Asia-Caucasus Institute, Silk Road Studies E. CORNELL Program, Johns Hopkins University-SAIS (U.S.A.) Parvin D.Sc. (History), Professor, Baku State University (Azerbaijan) DARABADI Murad D.Sc. (Political Science), Editor-in-Chief, Central Asia and the Caucasus, Journal of ESENOV Social and Political Studies (Sweden) Jannatkhan Deputy Director of the Institute of Strategic Studies of the Caucasus, Deputy Editor-in-Chief EYVAZOV of Central Asia and the Caucasus, Journal of Social and Political Studies (Azerbaijan) Rauf Ph.D., Leading research associate of the Institute of Strategic Studies of the GARAGOZOV Caucasus (Azerbaijan) Archil Ph.D. (Geography), Senior fellow at the Georgian Foundation for Strategic and GEGESHIDZE International Studies (Georgia) Elmir Director of the Department of Geoculture of the Institute of Strategic Studies of the GULIYEV Caucasus (Azerbaijan) Shamsaddin D.Sc.(Economy), Professor, Rector of the Azerbaijan State Economic University HAJIYEV (Azerbaijan) Jamil HASANLI D.Sc. (History), professor at Baku State University (Azerbaijan) Stephen Professor, Russian and Eurasian Studies, Mount Holyoke College (U.S.A.) F. JONES Akira Ph.D., History of Central Asia & the Caucasus, Program Officer, The Sasakawa MATSUNAGA Peace Foundation (Japan) Roger Senior Research Fellow, Department of Politics and International Relations, University MCDERMOTT of Kent at Canterbury; Senior Research Fellow on Eurasian military affairs within the framework of the Eurasia Program of the Jamestown Foundation, Washington (U.K.) Roin Doctor of History, professor, academician of the Georgian National Academy of METREVELI Sciences, President of the National Committee of Georgian Historians, member of the Presidium of the Georgian National Academy of Sciences (Georgia) Fuad Ph.D. (Economy), Counselor of the Chairman of the Board of Directors of the MURSHUDLI International Bank of Azerbaijan (Azerbaijan) Alexander Professor, President of Georgian Foundation for Strategic and International Studies RONDELI (Georgia) Mehdi SANAIE Professor, Tehran University, Director, Center for Russian Studies (Iran) S. Frederick Professor, Chairman, Central Asia-Caucasus Institute, Johns Hopkins University-SAIS STARR (U.S.A.) James Professor, Director of the International and Regional Studies Program, Washington V. WERTSCH University in St. Louis (U.S.A.) Alla Doctor of History, professor, head of the Mediterranean-Black Sea Center, Institute of YAZKOVA Europe, Russian Academy of Sciences (Russia) Stanislav D.Sc. (Economy), Senior researcher, Institute of World Economy and International ZHUKOV Relations, Russian Academy of Sciences (Russia) The materials that appear in the journal do not necessarily reflect the Editorial Board and the Editors’ opinion Editorial Office: THE CAUCASUS & GLOBALIZATION © The Caucasus & Globalization, 2010 98 Alovsat Guliyev, AZ1009 © CA&CC Press®, 2010 Baku, Azerbaijan © Institute of Strategic Studies of WEB: www.ca-c.org the Caucasus, 2010 4 Volume 4 Issue 3-4 2010 THE CAUCASUS & GLOBALIZATION THE CAUCASUS & GLOBALIZATION Journal of Social, Political and Economic Studies Volume 4 Issue 3-4 2010 CONTENTS GEOPOLITICS THE CENTRAL CAUCASUS— REFORMS AND THE ROAD TO EUROPE Nodar KHADURI 6 THE SOUTHERN CAUCASUS: IN SEARCH OF A BALANCE Gulshan BETWEEN RUSSIA AND THE WEST PASHAYEVA 15 THE CAUCASUS IN THE CONTEMPORARY Elena GEOPOLITICAL DIMENSION PROKOPENKO 24 ON CERTAIN GEOPOLITICAL ASPECTS OF Sabina THE U.S.’S CASPIAN STRATEGY GARASHOVA 29 AZERBAIJAN IN THE GEOPOLITICAL STRATEGY OF Farkhad THE EUROPEAN UNION HUSEYNOV 34 GEO-ECONOMICS SOCIAL AND ECONOMIC ASPECTS OF Evgeni EU-GEORGIA RELATIONS UNDER BARATASHVILI, THE EUROPEAN NEIGHBORHOOD POLICY Alexander SICHINAVA, Lasha BULIA 46 ECONOMIC THOUGHT Avtandil IN FEUDAL GEORGIA SILAGADZE 57 Volume 4 Issue 3-4 2010 5 THE CAUCASUS & GLOBALIZATION THE ROLE OF ASYMMETRIC INFORMATION IN THE FINANCIAL SYSTEM: Vasif THE CASE OF AZERBAIJAN ABIYEV 66 OPPORTUNITY COST OF THE CRISIS: Bahruz CRISIS LOSS RANKING FOR THE CIS COUNTRIES AHMADOV 76 THE TOURIST INDUSTRY IN ECONOMIC DEVELOPMENT: Faik AN AZERBAIJAN CASE STUDY GURBATOV 88 GEOCULTURE POLITICAL, ECONOMIC AND RELIGIOUS REPERCUSSIONS OF THE ARAB CONQUESTS Nargiz IN THE CAUCASUS AKHUNDOVA 105 SOME ASPECTS OF THE RESETTLEMENT POLICY OF Abbas THE ARAB CALIPHATE IN AZERBAIJAN QURBANOV 114 GEOHISTORY KARABAKH: LOOKING INTO THE PAST Jamil IN SEARCH OF THE TRUTH HASANLI 120 LITTLE-KNOWN PAGES OF THE HISTORY OF GEORGIAN-BALTIC RELATIONS Nikolay IN THE 10TH-18TH CENTURIES JAVAKHISHVILI 147 ON CHRISTIANITY Sara IN MEDIEVAL AZERBAIJAN KASUMOVA 154 GEORGIA IN ANTIQUITY: Guram CHOOSING BETWEEN THE WEST AND THE EAST LORDKIPANIDZE 161 INDEX THE CAUCASUS & GLOBALIZATION Vol. 4, 2010 169 6 Volume 4 Issue 3-4 2010 THE CAUCASUS & GLOBALIZATION GEOPOLITICS Nodar KHADURI Ph.D. (Econ.), Full Professor at Ivane Javakhishvili Tbilisi State University (Tbilisi, Georgia). THE CENTRAL CAUCASUS REFORMS AND THE ROAD TO EUROPE Abstract he author examines the economic and tention on an analysis of the role and place T political reforms in the Central Cauca- of these countries in world geopolitics and their sian countries. He focuses particular at- integration into the European community. I n t r o d u c t i o n Three independent states, the Azerbaijan Republic, the Republic of Armenia, and the Repub- lic of Georgia, were established in the Central Caucasus after the disintegration of the Soviet Un- ion.1 Unfortunately, the last years of the Soviet era were marked by an aggravated situation in the Caucasus in general and in the Central Caucasus in particular, along with the emergence of centrif- ugal processes. The disintegration of the Soviet Union (and its collapse, in the case of the Caucasus) took place against the background of serious problems. The hostilities in the Northern Caucasus and between 1 In the opinion of Professor Eldar Ismailov, the term “Central Caucasus” covers the three independent states locat- ed beyond the Greater Caucasus, while the term “Southern Caucasus” covers that part of the Caucasus which is located to the south of the borders of these states and also constitutes part of Iran and Turkey (see: E. Ismailov, V. Papava, The Cen- tral Caucasus: Essays on Geopolitical Economy, CA&CC Press, Stockholm, 2006). Volume 4 Issue 3-4 2010 7 THE CAUCASUS & GLOBALIZATION Armenia and Azerbaijan, as well as the conflicts in Georgia’s two breakaway regions, proved that the Caucasus was at war. Whereas in the past there had been a lot of discussion about various forms of Caucasian integration (such as the establishment of the United States of the Transcaucasus, a Com- mon House of the Caucasus, and so on),2 now the hostilities have postponed the integration process for a long time to come, if not forever. Today, new cooperation opportunities are emerging in the Central Caucasus that are mostly based upon economic rather than political principles. The unfortunate reality remains, however, that it is impossible to engage the entire Central Caucasus within common economic principles and create a uniform economic area. Nevertheless, the key trends of the reforms are analogous in the three states of the Central Cau- casus and the declared principles of each of them are quite similar despite their tactical differences. The reforms in both the political and economic systems, however, are currently being implemented by means of different methods. Furthermore, those economic capabilities which distinguish the states of this region from one another should be kept
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