From the grassroots: NATIONAL REPORTS - Social Watch

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AZERBAIJAN The demise of the extractive economic model One of the world’s most industrially polluted territories, the country needs to change its old resource-dependent extraction economy into a sustainable one, and also a better dialogue between Government and civil society is needed. Also, abuses against freedom of speech are frequent, as the Government systematically tries to silence political dissidents and protesters. Elections do not fully meet international standards; the Parliament is under the control of the ruling party and the courts are not independent. NGOs have been closed or denied registration. Public Finance Monitoring Centre Kenan Aslanli 1 Environmental Law Centre “Ecolex” Samir Isayev 2 Basic Capabilities Index (BCI) Gender Equity Index (GEI) BCI = 93 100 GEI = 64 100 92 Children reaching 5th grade Empowerment The country faces a number of hurdles in moving towards more sustainable development, none of which are likely to be jumped soon. The country’s reliance on oil and petrochemical industries continues to cause grave environmental damage, ranging from soil contamination to water and air pollution. While the Government has taken some positive steps to address these problems, it is not clear how long these will last in the absence of serious regulatory measures. Other aspects of sustainability, primarily related to human rights, are more challenging since the ruling party controls both the Parliament and the courts, civil society is heavily controlled and political dissent and protest continue to face strong sanctions. Serious environmental challenges Azerbaijan also faces diverse and very serious environmental challenges. In some regions, the soil is heavily contaminated by pesticides such as DDT and defoliants used in cotton crops. Water pollution is very high; only one quarter of polluted water is being treated. Nearly half of the population has no access to sewer facilities. 3 The cities of Sumgayit and the capital, Baku, are listed among the world’s most polluted. 4 Baku, particularly, ranks at the world’s lowest levels for health and sanitation. 5 An extractive economy is not alien to this state of affairs. Being one of the birthplaces of the oil industry, Azerbaijan has a long history of economic dependency on petroleum extraction. There 1 Senior economist. 2 Senior research fellow 3 Instituto del Tercer Mundo, Guia del mundo 2011-2012, (Madrid: 2010). 4 Super Green Me, Sumgayit, Azerbaijan: The Most Polluted City in 2007, ; Nationmaster, Environment Azerbaijan, . 5 T. Luck, “The world dirtiest cities”, Forbes, (New York: 2008), . 0 100 100 100 100 89 97 98 Births attended Surviving under-5 Education Economic activity is evidence that petroleum was used for trade in the 3 rd and 4 th centuries AD, and refining activities in Baku are mentioned in the writings of 17th century Turkish scientist and traveller, Evilya Celebi. A proper oil industry was established in the late 19th century with the emergence of the so-called “oil barons,” who mastered the extraction processes and contributed to the modernization and industrialization of Baku. Currently the petrochemical industry remains the country’s most prominent although in 2010 it had already reached its historical production peak of 1.12 million barrels per day. Some predictions show there will be a massive drop in production levels from 2015 to 2025 (see Figure 1). Oil production, however, has proven not only unsustainable itself but also for the environment. Azerbaijan’s long history as an oil producer has led to high levels of pollution. During the Soviet era, residential districts of Baku, for example, were built among oil fields and industrial operations located inside the city limits with minimal or no environmental concern. In many cases the Soviet era oil industry created huge petroleum lakes which literally destroyed all of the surrounding biomass. In the last 150 years, the shores of the Caspian Sea, especially on the Abershon peninsula, have been turned into an ecological disaster with an ever-increasing amount of chemical and biological toxic waste from the Volga River. Switching models This murky scenario has made apparent an urgent need to protect the environment. Thus, in 2009, the World Bank issued a report pointing out the importance of diversifying the Azerbaijani economy 0 in order to reduce dependency on oil and gas revenues and to develop long-term sustainability. 6 This conclusion was echoed by the Asian Development Bank in its 2010 annual survey of member states 7 and also by the Executive Board of the International Monetary Fund (IMF). According to the IMF, “given that oil production will no longer be the main source of growth, there is an urgent need to accelerate economic diversification.” However up to 2010 non-oil sectors have not demonstrated significant growth. The growth rate in non-energy related sectors decreased from 16% in 2008 to 13% in 2010, and non-oil exports make up only 5% of the country’s overall exports. To counter this trend, the IMF exhorted President Ilham Aliyev’s administration to support the private sector through trade facilitation, tax and customs modernization and the reduction of State monopolies. 8 The Government’s answer was to invest in a new shipbuilding plant and telecommunications projects. It also issued a decree reducing the number of inspections of private business. In July 2010, while addressing the Cabinet of Ministers, Aliyev declared that apart from the need to maintain oil production rates, the economy was developing in a 6 World Bank, Country Brief 2009 Azerbaijan, (Baku: November 2009), . 7 News.az, Asian Bank Urges Azerbaijan to Develop the Non-oil Sector, (23 April 2010), . 8 S. Abbasov, “IMF: The Party’s Over for Azerbaijan’s Oil Sector,” Eurasianet, (24 May 2010), . 32 64 National reports 66 Social Watch
diversified manner and underscored that the development of the non-oil sector was a major priority. 9 Already in 2004, the Government had instituted a programme focused on further diversifying the economy, placing the stress on sectors other than oil as well as improving population living standards. The results up to 2011 have been positive, despite a slowdown of economic growth after the start of the global crisis in 2008. For example, the State Customs Committee reported in March 2011 that agricultural exports rose 1.38 points from 20.1% in 2010 to 21.38% in January-February 2011. 10 In fact, nowadays the Government is also showing a modest commitment towards protecting the environment. The greatest challenge for both the Government and the private sector is to discard the old extractive model and favour investments and research in environmentally friendly technologies. The Government designated 2010 as “The Year of Ecology” and launched programmes that have included tree planting, water purification and the development of alternative and clean energy sources. Another encouraging effort was the reshaping of refining complexes outside Baku to reduce carbon dioxide emissions near populated areas. There has also been work on rehabilitating contaminated sites. The Government power company, Azerenerji, for example, has received funding from the European Bank for Reconstruction and Development (EBRD) to rebuild the Azdres Thermal Power Plant, thus allowing it to work under the Clean Development Mechanism (CDM) under the Kyoto Protocol. A disheartening record on human rights Several human rights associations warn that Azerbaijan is facing important challenges regarding basic freedoms, human rights and democracy. Elections still fail to meet international standards, and there is an insufficient division of legislative and executive power with the Parliament being under the control of the ruling New Azerbaijan Party. A civil rights organization, Article 19, issued a report in September 2010, which outlines some key findings related to freedom of speech in Azerbaijan. Among other alarming trends, the report identified acts of violence against journalists, harassment or persecution of Government critics and misuse of criminal law for political purposes, including the imprisonment of dissidents on charges of disorderly conduct and drug possession. By 2009, FIGURE 1 Azerbaijan long-run Production Profiles 1870-2024 1400 1200 1000 800 600 400 200 0 1870 1875 Mstb/d Small scale exploitation of oil and gas seeps since prehistoric times 1872 - First data in government archives 1847/8 - First well drilled in Azerbaijan 1880 1885 1890 1895 1900 1905 1910 1915 WW1 1920 1925 1930 1935 1940 1945 more than 50 people were considered political prisoners. 11 Violent attacks against media representatives are frequent. In 2005, the editor-in-chief of a local magazine was shot dead by unidentified attackers following the publication of several articles that heavily criticized the authorities. Since then, a climate of violence against journalists, impunity for their attackers and harassment and imprisonment of Government critics has emerged. 12 The use of torture and ill treatment in police stations and detention facilities have also been reported. These incidents are not properly investigated, and law enforcement officers suspected of being responsible for acts of torture are not prosecuted. The Government also has deployed violence against protesters. The police violently dispersed demonstrations in the aftermath of the 2003 presidential elections and 2005 parliamentary elections, and none of the officers involved were punished. Since 2005, in fact, the Government has severely restricted people’s right to freedom of assembly. Civil rights organizations and other NGOs have been closed or denied registration. Amendments to a 2009 law have allowed the Government to put WW1 1950 1955 1960 1965 1970 1975 Chirag online November 1997 ACG peak 2010 (1120 Mstb/d) 1980 1985 1990 1995 2000 2005 Phase 3 online 2008 Azeri online 2005 Future decline for other fields assumed 3% annual 2010 2015 2020 Source: Wikipedia NGOs under close control. 13 In April 2011, Amnesty International exhorted the authorities to halt their crackdown on freedom of assembly after the violent repression of protesters in Baku. The Public Chamber Committee, which organized the rally, claimed that at least 150 people had been arrested on the streets as they attempted to demonstrate against the Government. With all access leading to the rally site blocked, hundreds of riot police were mobilized to stop the protest, which had been organized by opposition parties through Facebook. Several journalists were forbidden to photograph or film the events, and many activists were abducted from their homes in the aftermath of the protests. At least seven people were convicted and sentenced, their trials taking place behind closed doors with the defendants having no access to legal representation. 14 “The current Azerbaijani regime has a history of preventing and obstructing public gatherings,” said John Dalhuisen, Amnesty International’s Deputy Director for Europe and Central Asia. “Their reaction to today’s protest and the demonstrations back in March this year starkly reveals the complete refusal of the authorities to tolerate any form of visible public protest.” 15 n 9 I. Alizex, Opening Speech at a Meeting of the Cabinet of Ministers on the Result of Socioeconomic Development in the First Half of 2010, (13 July 2010), . 10 Freshplaza, Azerbaijan increased exports of fruits and vegetables by 21%, (31 March 2011), . 11 Article 19, Dissident Kimi Yaşamaq, . 12 Ibid. 13 Human Rights House, A Common Statement on Human Rights in Azerbaijan, . 14 Amnesty International, Azerbaijan Protests Broken up as Riot Police Move in, (April 2011), . 15 Ibid. Social Watch 67 Azerbaijan
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Page 3 and 4: Education and gender equality Accor
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Page 7: FIGURE 1 GDP - Real growth rate (%)
Page 11 and 12: was re-opened shortly afterwards wi
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Page 15 and 16: “Europe is alone with its unilate
Page 17 and 18: into the atmosphere, with emissions
Page 19 and 20: The Kyoto Protocol includes an anti
Page 21 and 22: However, the Government has not tak
Page 23 and 24: One egregious example is the offici
Page 25 and 26: The grim face of militarized develo
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Page 29 and 30: Unemployment According to a 2009 st
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Page 39 and 40: FIGURE 1 Unemployment in Croatia me
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Page 49 and 50: Taking a broad view, even though in
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TablE 1 Trends in Forest Cover in G
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union and research groups and other
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underlying factors that generate la
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Energy consumption declining In the
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te Mitigation Action Plan for low c
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nance of an exclusionary culture in
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In terms of development cooperation
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State shall (…) ensure sustainabl
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trial effluents have caused water p
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has been a high priority, efforts a
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ment protection agency. There have
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concerning the La Parota dam since
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droughts and by modifications to na
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The question of transparency was hi
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sustainable development. Realizing
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The Coordinadora Civil taxation pro
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Beach of the Atlantic Ocean. 10 Riv
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direction, implement a system for t
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lacked access to continuous water s
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According to ANAM’s Environment I
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• To promote the active participa
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is almost twice that of Latin Ameri
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The conflict in Mindanao is instruc
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postcolonialism, he writes, “The
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them. Initially this was a wide-bas
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and environmental hotspot clean-up
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the employer is not obliged to pay
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try. Research has shown that this m
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eflected in Parliament by the progr
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Asia’s longest civil war The Sri
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TABLE 1 Summary of general educatio
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Agriculture and food security Chall
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damage and destruction to the fishi
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FIGURE 1 Increase in after-tax inco
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which unemployment decreased, since
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emissions. It is important that emi
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3%, is due not only to its small si
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The national biomass (above and bel
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