TODAY.AZ / Analytics

President Ilham Aliyev’s vision: Transforming Azerbaijan into global infrastructure hub

13 February 2025 [08:30] - TODAY.AZ
By Nazrin Abdul

A delicate balance often defines global politics and economics, and achieving this balance is key to exerting influence on the world stage. Under President Ilham Aliyev's leadership, Azerbaijan has managed to navigate this intricate landscape with remarkable success. Through a combination of strategic foresight and pragmatic diplomacy, Azerbaijan has established itself as a formidable player in both regional and international affairs.

One significant testament to this growing influence occurred recently, from January 20-24, when President Aliyev attended the prestigious Davos Forum, a key gathering for global leaders to discuss economic and political issues. During this event, he met with influential figures from around the world and participated in discussions that underscored Azerbaijan's growing importance.

An important highlight from these engagements was President Aliyev's interview with China Global Television Network (CGTN), which aired on February 11, 2025. In this interview, he offered valuable insights into Azerbaijan’s foreign policy, its economic strategies, and its vision for deeper global integration. From the country’s ongoing efforts to secure membership in the World Trade Organization (WTO) to its prominent role in regional projects like the Middle Corridor and its involvement in global organizations such as the Shanghai Cooperation Organization (SCO) and BRICS, the interview provided a deeper understanding of Azerbaijan's evolving position on the world stage.

Economic stability as a pillar of foreign policy

One of the key themes of President Aliyev's interview was the robust and self-sufficient nature of Azerbaijan's economy. He emphasized that the country’s low foreign debt, standing at only 6.9% of GDP, has allowed Azerbaijan to embark on significant projects that foster connectivity and regional integration. By maintaining fiscal prudence and ensuring economic self-reliance, Azerbaijan has shielded itself from global economic volatility, positioning its economy as one of the most stable in the region.

Azerbaijan’s economic model is based on careful diversification, with a focus on expanding infrastructure projects that enhance regional connectivity, such as the Southern Gas Corridor and the Baku-Tbilisi-Kars railway. President Aliyev’s mention of these initiatives underscores the country’s broader vision: to serve as a regional hub for energy, trade, and logistics. The country’s natural resources, including fossil fuels, continue to play a major role in its export strategy, but efforts to diversify into non-oil sectors like agriculture and information technology are also underway.

This economic strength serves as a foundation for Azerbaijan’s foreign policy, providing the country with leverage in international negotiations. As Aliyev points out, Azerbaijan’s low foreign debt and strong foreign currency reserves are indicative of its resilience in the face of global economic pressures, which allows the country to pursue its political and diplomatic goals without being overly reliant on external support.

Balancing global interest: The case of WTO members

One of the more nuanced discussions in the interview was Azerbaijan’s pursuit of membership in the World Trade Organization (WTO). Aliyev acknowledged the complexities of joining the WTO in a time of rising global protectionism, citing tariffs and trade barriers as challenges that may undermine the core principles of free trade. While Azerbaijan has been negotiating its accession for nearly two decades, the president emphasized that the country is carefully weighing the pros and cons of full membership.

The president noted that, while Azerbaijan is self-sufficient economically, opening up to global competition could pose risks to local producers, particularly in the context of its reliance on fossil fuel exports. However, Azerbaijan is not just passively waiting for WTO membership; it is actively negotiating with key partners, including China, to secure favorable terms that would ensure the country’s long-term economic interests are protected. This pragmatic approach to WTO accession reflects Azerbaijan's ability to balance the demands of international integration with the realities of its domestic economic structure.

Strengthening ties with China: A strategic partnership

A key aspect of Azerbaijan's foreign policy, as outlined by President Ilham Aliyev, is its growing strategic partnership with China. The two countries officially became strategic partners in 2024, following a summit between Ilham Aliyev and Chinese President Xi Jinping. This partnership is particularly significant given Azerbaijan's geographic position and its role in China's Belt and Road Initiative (BRI).

As a critical transit point in the Middle Corridor, Azerbaijan plays a pivotal role in facilitating trade between China and Europe. The country's modern transportation infrastructure, including ports, railways, and highways, positions it as a key player in the BRI. This infrastructure is set to expand further, with Azerbaijan investing in the modernization of its trade ports and railway networks to meet growing demand. Aliyev's mention of the projected increase in the trade volume from 15 million tons to 25 million tons within the next five years is a clear indication of Azerbaijan's commitment to becoming a leading logistics hub in the region.

Furthermore, Azerbaijan’s close collaboration with China on projects related to connectivity and infrastructure is mutually beneficial. While China finances many of these initiatives, Azerbaijan stands to gain from increased trade, enhanced regional influence, and greater access to global markets. This partnership also contributes to regional stability, as the interconnectedness of infrastructure projects fosters economic cooperation and political trust among participating countries.

Bridging the Global South and North: A vision for inclusive growth

Azerbaijan’s active engagement with international organizations such as the SCO and BRICS reflects its commitment to promoting cooperation between the Global South and the Global North. As the host country for the upcoming COP29 climate conference, Azerbaijan is using its diplomatic platform to address the concerns of developing nations while fostering stronger ties with the Global North. Aliyev’s emphasis on bridging the divide between these two blocs highlights Azerbaijan's role as a mediator in global conversations on climate change, trade, and security.

The president’s remarks on Azerbaijan’s support for the Global South demonstrate the country’s diplomatic maturity and its desire to play a constructive role in addressing global challenges. By advocating for increased cooperation between developed and developing nations, Azerbaijan is positioning itself as a leader in the promotion of sustainable development and global stability.

The Middle Corridor: An alternative to fragmentation

Finally, President Aliyev highlighted the importance of the Middle Corridor in offering an alternative to a world increasingly concerned with fragmentation and geopolitical divisions. As global supply chains face disruptions, Azerbaijan’s strategic location along this critical trade route, connecting China to Europe, offers new opportunities for economic cooperation and trade. The president’s vision is not just to be a transit country but to build infrastructure along the route that can benefit both Azerbaijan’s private sector and its international partners.

The Middle Corridor is more than just a logistical pathway—it is a symbol of the interconnected world that Azerbaijan is helping to build. With China’s involvement in financing infrastructure projects, Azerbaijan is poised to become a central node in the global economy, contributing to regional stability and prosperity.

President Ilham Aliyev’s interview with CGTN provides a comprehensive look at Azerbaijan’s evolving role in global politics and economics. Through a balanced approach to foreign policy, economic self-sufficiency, and strategic partnerships, Azerbaijan has positioned itself as a key player on the world stage. The country’s commitment to regional connectivity, active participation in international organizations, and careful negotiation of global trade frameworks reflect its vision for a stable, prosperous future.

As Azerbaijan continues to navigate the complexities of global diplomacy, its leadership under President Aliyev ensures that the country remains a vital and dynamic force in the geopolitics of the South Caucasus, Central Asia, and beyond.

URL: http://www.today.az/news/analytics/256968.html

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