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Doing Business in Azerbaijan 2009 - Azerbaijan Export ...

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where a major clash with jo<strong>in</strong>t Bolshevik; Armenian Dashnak forces<br />

took place. A period of mass repression of the <strong>Azerbaijan</strong>i<br />

<strong>in</strong>telligentsia, elite and national leaders from 1920 to 1930 followed<br />

the defeat of the 1st <strong>in</strong>dependent <strong>Azerbaijan</strong>i Democratic Republic.<br />

Thus until 1990, the <strong>Azerbaijan</strong>i Soviet Socialist Republic (AzSSR)<br />

was an <strong>in</strong>tegral part of the USSR as one of the “found<strong>in</strong>g” republics<br />

of the Union and a major <strong>in</strong>dustrial and cultural centre of the<br />

Empire. The collapse of the Soviet bloc brought <strong>in</strong>dependence<br />

along with a serious economic and political crisis.<br />

The consequences of the dis<strong>in</strong>tegration of the Soviet Union were<br />

complicated by the ongo<strong>in</strong>g aggression by the Republic of Armenia.<br />

Armenian nationalists backed by the late Soviet adm<strong>in</strong>istration<br />

launched a separatist movement <strong>in</strong> Western <strong>Azerbaijan</strong> (Nagorno-<br />

Karabakh). A long last<strong>in</strong>g and bloody military conflict started <strong>in</strong><br />

1988. The conflict was further complicated by civil confrontation<br />

with<strong>in</strong> <strong>Azerbaijan</strong>. A few political groups were compet<strong>in</strong>g for power<br />

<strong>in</strong> the country. A succession of weak, largely <strong>in</strong>capable<br />

governments ended <strong>in</strong> 1993 when veteran politician and popular<br />

leader Heydar Aliyev was elected President. A decade of<br />

rehabilitation and growth started.<br />

In 1994 major oil & gas contracts with the consortia of oil giants<br />

such as BP, Amoco, Total and others were concluded. From circa<br />

1997 onwards, major political reforms aimed at br<strong>in</strong>g<strong>in</strong>g <strong>Azerbaijan</strong><br />

to <strong>in</strong>ternational standards <strong>in</strong> the areas of the rule of law,<br />

democracy, human rights and freedoms started as well.<br />

The era of Heydar Aliyev ended <strong>in</strong> December 2003 with the<br />

decease of the national leader. However, the policy decisions taken<br />

by him, <strong>in</strong>clud<strong>in</strong>g <strong>in</strong>tegration <strong>in</strong>to European common space,<br />

democratization, the creation of a liberal market economy and<br />

COUNTRY INFORMATION<br />

Under the leadership of<br />

Heydar Aliyev, the<br />

government re-<br />

established peace and<br />

stability <strong>in</strong> the country,<br />

re<strong>in</strong>forced state<br />

<strong>in</strong>frastructure and civil<br />

rule throughout the<br />

country, and launched a<br />

proactive foreign policy<br />

campaign aimed at the<br />

political <strong>in</strong>tegration of<br />

<strong>Azerbaijan</strong><br />

<strong>in</strong>ternationally.<br />

19

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