Volume 4 Issue 1-2 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 1-2 2010 CA&CC Press® SWEDEN 2 Volume 4 Issue 1-2 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 1-2 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 1-2 2010 THE CAUCASUS & GLOBALIZATION THE CAUCASUS & GLOBALIZATION Journal of Social, Political and Economic Studies Volume 4 Issue 1-2 2010 CONTENTS GEOPOLITICS THE CASPIAN REGION IN THE INTERNATIONAL GEOPOLITICAL SYSTEM OF Parvin THE EARLY 21ST CENTURY DARABADI 7 ALGORITHMS OF DEMOCRATIZATION IN A TOTALITARIAN SOCIETY Paata (A CASE STUDY OF GEORGIA) LEIASHVILI 18 RUSSIA AND AZERBAIJAN: THE SPECIAL FEATURES AND MAIN VECTORS OF INTERSTATE COOPERATION Stanislav IN THE POST-SOVIET PERIOD CHERNIAVSKIY 26 GEORGIA IN A NEW WAVE OF TRANSFORMATION Marina MUSKHELISHVILI 35 AZERBAIJAN: STRATEGY OF ETHNOPOLITICAL SECURITY Kenan IN THE MODERNIZATION CONTEXT ALLAHVERDIEV 43 GEO-ECONOMICS CURRENT FINANCIAL AND Avtandil MONETARY TRENDS IN GEORGIA SILAGADZE 51 ON THE ECONOMIC COMPETITIVENESS OF Ruzi AZERBAIJAN MAMEDOV 65 Volume 4 Issue 1-2 2010 5 THE CAUCASUS & GLOBALIZATION REGIONAL FACTORS OF Vakhtang EMPLOYMENT GROWTH AND BURDULI, THEIR INFLUENCE ON ECONOMIC DEVELOPMENT Nanuli (GEORGIAN CASE STUDY) AREVADZE 82 EMPLOYMENT PROBLEMS AND SHORT-TERM ECONOMIC BENEFITS IN POST-COMMUNIST COUNTRIES Iza (GEORGIAN CASE STUDY) NATELAURI 93 THE COMPETITIVENESS OF HUMAN RESOURCES: George EVIDENCE FROM GEORGIA BERULAVA 98 THE MIDDLE CLASS: Itai A NEW CONCEPTUAL FRAMEWORK AND SENED, A BRIEF APPLICATION TO THE CAUCASUS Marshal THOMPSON, Robert WALKER, Ron WATSON 106 FACTORS AFFECTING THE SCALE AND Nurali PATTERN OF GENERATION YUSIFBEYLI, CAPACITY EXPANSION AND Valekh AZERBAIJAN’S ENERGY SECURITY NASIBOV, Rena ALIZADE 117 GEOCULTURE TRUST AND DEMOCRACY Rauf IN THE CENTRAL CAUCASUS: GARAGOZOV, DIFFERENT TRAJECTORIES, Rena DIFFERENT DIMENSIONS KADYROVA 124 THE RUSSIAN STATE AND CIVIL SOCIETY: A DIALOG OF RELIGIONS Irina IN THE NORTHERN CAUCASUS BABICH 137 ON MODERNIZATION IN AZERBAIJAN: THE SECULAR AND THE RELIGIOUS Elmir IN CONTEMPORARY SOCIETY KULIEV 144 GEOHISTORY SOVIET STATE TERRORISM IN AZERBAIJAN Eldar R. ISMAILOV 163 6 Volume 4 Issue 1-2 2010 THE CAUCASUS & GLOBALIZATION ABKHAZIA’S STATUS AS PART OF GEORGIA: Mariam HISTORICAL PERSPECTIVE LORDKIPANIDZE, Georgi OTKHMEZURI 172 THE GOLDEN AGE OF AZERBAIJAN’S TOWNS Elmira MURADALIEVA 184 SOVIET RUSSIA AND THE FORMATION OF BORDERS BETWEEN THE CAUCASIAN STATES (BASED ON A CASE STUDY OF Sitara AZERBAIJAN AND ARMENIA) MUSTAFAEVA 196 RUSSIAN-TURKISH RAPPROCHEMENT AND Vasif AZERBAIJAN’S INDEPENDENCE (1919-1921) GAFAROV 205 Volume 4 Issue 1-2 2010 7 THE CAUCASUS & GLOBALIZATION GEOPOLITICS Parvin DARABADI D.Sc. (Hist.), Professor at the Chair of International Relations, Baku State University (Baku, Azerbaijan). THE CASPIAN REGION IN THE INTERNATIONAL GEOPOLITICAL SYSTEM OF THE EARLY 21ST CENTURY Abstract he author investigates the main inter- United States, the European Union, Turkey, T national-geopolitical and geoeconom- Iran, and China). He makes an attempt to ic issues of the first decade of the 21st look into the region’s geopolitical and geo- century related to the Caspian region. He economic future and surmise the impact analyzes the positions of the major geopo- that regional developments might have on litical players, that is, the world and regional the geopolitical situation in the Greater powers involved in the region (Russia, the Middle East. I n t r o d u c t i o n In the post-Soviet period, the Caspian region has gradually been gaining geopolitical and ge- oeconomic weight. It is no longer seen as closed and static, but as an element of dynamic global ge- opolitical interaction. At the same time, however, it can be described as a fragment or a center of ten- sion in the system of the current worldwide geopolitical processes. In the early 21st century, the number of countries with geopolitical and geoeconomic interests of their own in the Caspian increased substantially, which has inevitably affected the entire region. The combination of the region’s geographic location and the increasing value of its energy resources 8 Volume 4 Issue 1-2 2010 THE CAUCASUS & GLOBALIZATION has made the Caucasus and the Caspian even more important for world, and European, security.1 It comes as no surprise that in 1997 Xavier Solana, speaking in Baku, deemed it necessary to point out that Europe would never achieve security while the Caucasian countries remained outside its security system.2 France, Germany, China, Japan, Pakistan, Saudi Arabia, Israel, and several other countries are already involved in the region’s political and economic sphere, where they have joined the traditional geopolitical players—Russia, the U.S., U.K., Turkey, and Iran. This