OCT. 14 2010 (The Conway Bulletin) — Fuelled by oil and gas exports, Azerbaijan’s economy grew by over 800% between 2000 and 2009. Its defence spending nearly, but not quite, kept up. The Stockholm International Peace Research Institute (SIPRI) estimated that over the same period, Azerbaijan’s defence budget grew by 500%.
But in June this year, Azerbaijan said it would boost defence spending in 2010 by 30% and now finance minister Samir Sharifov has said that in 2011 it will rise by nearly 90% to $3.13b.
SIPRI said that in 2000 Azerbaijan spent $251m on defence. By 2011, then, its annual defence spending will have increased by more than 1200% since 2000, outstripping economic growth.
In terms of government spending, Mr Sharifov said in 2011 Azerbaijan will spend nearly 1/5 on defence. As a proportion of its GDP it will be around 6.5%. The world’s top spenders spend up to 8% of their annual GDP on defence.
But if Mr Sharifov was explicit on the numbers, he was less explicit on how the extra cash would be spent. He said that half of it would go on buying new equipment directly and the rest on special projects. Azerbaijan’s main military concern is tension with Armenia around the disputed Nagorno-Karabakh region. Azerbaijan and Armenia are still officially at war.
Armenia-backed forces have controlled Nagorno-Karabakh since a ceasefire in 1994 after a war in which around 30,000 people died. Soldiers from both sides still die each year in skirmishes around the mountainous region and the EU has warned the situation could deteriorate.
ENDS
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(News report from Issue No. 11, published on Oct. 14 2010)