Summary

     The purpose of this essay is to identify special aspects in the sphere of the economy of the Republic of Azerbaijan. We will use several methods for our purpose.

1. Therefore, first of all, we will present a brief description of the economy of the Republic of Azerbaijan in 2003 - 2013.
2. Secondly, we will analyze all current processes in the economy of the Republic of Azerbaijan as a former Soviet country.
3. Finally, we will use economic and IR theories, as well as other examples of post-Soviet countries in the economy, in order to summarize the results and make an objective conclusion about special aspects of the economy of the Republic of Azerbaijan

As for our goal, the article raises two key questions:

• First, what are the special aspects of the economy of the Republic of Azerbaijan?
• Secondly, are there similarities between the post-Soviet countries, in the sphere of the economy, or are they too different from each other to generalize our results?

Keywords: economic policy, post – soviet republics, energy sector;

“The post – Soviet republics represent a very diverse group of countries. One unifying feature is their shares history, with most of the countries having been either part of Tsarist Russia and subsequently the Union of Soviet Socialist Republics, or having ties to Tsarist Russia. Individual states differ in terms of population, area, religion and geographical position.

The economies of the countries looked at display a high level of connection and synchronization of their economic cycles. There is a marked potential for economic co – operation between individual countries, and this can be deepened significantly if a number of tensions and conflicts in terms of politics and power which exist between the countries looked at can be solved. The countries have a population of more than a quarter of a billion available to them and their GDPs have also reached significant values. If working regional economic integration can be achieved within the region, then there is very high potential for further growth in the region’s economy.

Many of the former Soviet states are still going through a painful metamorphosis on a confusing path toward acceptance of freedom and democratic values. The idea we wish to highlight there is the impact of the Soviet moral and psychological legacy on the socioeconomic transition now under way in the East European countries that once were republics of the Soviet Union. It is important to shed light on the reasons why, after 20 years of formal independence, the region is still struggling to find its way forward.

Why do all post – Soviet countries not share the same economic conditions and problems now?

The Soviet mentality which evolved over generations, represents a promising area of research for the field of behavioral economics. Many economic decisions should be described as irrational from the point of view of classic economic theory. However taking into consideration the specific post – Soviet conditions, predominant mentality, and shared values, these choices were logical and easy to comprehend.

There are many factors that can potentially influence the direction of a country’s development after liberation from an imperial dictatorship. In fact the important question of modern economic theory is how to predict, understand and explain numerous preconditions and social behavior under these circumstances.

Similar processes are occurring in the post – Soviet countries after two decades of independence. Their experience provides grounds for as cribbing the delay in development to commonly shared Soviet – style values and assumptions. The logical conclusion is that to break through and reemerge in a viable form, it is necessary not only to improve the economic indicators but also to abandon the old mentality and change the old mindset. It is a long and difficult social process, but one that is of vital importance in bringing about a better future for these fledgling nation”.

TSU.  Ivane Javakhishvili Tbilisi State University.  CU.  Caucasus University, International Relations