ABSTRACT
This chapter focuses on the conflict-laden process of political and economic transformation in post-socialist Azerbaijan. It argues that the country has been in a state of permanent social, political and economic crisis, conceptualised as a “post-socialist crisis”. Its root causes go back to the fact that both formal and informal politics are largely driven by the particularistic interests of the ruling elite, which aims to promote its business interests and rent-seeking by retaining power and preserving the constellation beneficial to it. Until recently, the availability of petrodollars has helped the ruling elite stave off the immediate effects of the crisis. With the reduced inflow of petrodollars, signs of crisis have recently begun to resurface, manifesting themselves in socio-economic dislocation and tensions within the informal political system.
In order to shed light on this constellation, this chapter deals with the role the ruling elite has played in political and economic transformation as well as the strategies they employ to preserve their power.
