ABSTRACT
Oil has been the driving force of post-Soviet Azerbaijan's economic development, as well as its foreign policy. In the first decade of the twenty-first century, as the country emerged from the collapsed economy of the war-torn post-Soviet Caucasus, it was oil that enabled Azerbaijan to experience what could be the fastest government revenue growth cycle in modern times. In this chapter, how Azerbaijan manages and utilizes its oil and gas revenues will be perhaps the chief determinant of what the nation will look like a decade from the time of writing. The Soviet Union brought industrialization, infrastructure development, and a high level of education to Azerbaijan, all important assets as the country works toward securing its future in the world economy. Integration with European communication arteries will bring Azerbaijan technical and administrative reform that will draw it closer to European standards of commerce and governance and deepen its engagement with European organizations.
