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8671. Currency market in Azerbaijan: Challenging environment for the national currency

Author:
Rashad Hasanov
Publication Date:
09-2016
Content Type:
Research Paper
Institution:
Center for Economic and Social Development (CESD)
Abstract:
In August, the exchange rate of national currency of Azerbaijan-“Manat” beat all historical records. That is to say, the exchange rate was 1 USD= 1.61 Manat in previous month . It should be noted that, the exchange rate hit 1 USD= 1.6 Manat in March, 2016. Since the second half of 2014, due to the fall of oil prices in the world markets there is a visible pressure on the national currency ‘Manat’. Overall, the Azerbaijani “Manat” lost 49.6% of its value in 2015 and in addition, a depreciation of more than 3% in the first 8 months of 2016, the losses could reach 52.2%. Although the occurring rapid dollarization and the observed stagnation in the business environment especially in imports in the first months of 2015 and 2016 resulted in short-term reduction in foreign exchange demand in the March-May period of this year and strengthening the exchange rate of USD/Manat at the level of 1.49, the process of depreciation proceeded again afterwards.
Topic:
Economics, International Political Economy, and Finance
Political Geography:
Azerbaijan

8672. Feasibility study on the Deep and Comprehensive Free Trade Area (DCFTA) between Azerbaijan and the European Union

Author:
Cristina Juan Carrion and Leman Orujova
Publication Date:
09-2016
Content Type:
Research Paper
Institution:
Center for Economic and Social Development (CESD)
Abstract:
The trade relations between Azerbaijan and the European Union are a substantial part of enhancing economic and political relations among both parties. Recent years have been characterized by an expansion of the trade volume between two parties; the EU turned out to be Azerbaijan’s biggest trade partner, in terms of both imports and exports. Moreover, trade in services and foreign direct investment relations were also on rise. On the other hand, Azerbaijan is one of the main energy suppliers of the European Union among European Neighborhood countries and is a key partner to guarantee energy security.
Topic:
International Trade and Finance
Political Geography:
Azerbaijan

8673. Currency market in Azerbaijan: Why the national currency is losing its value?

Author:
CESD Research Team
Publication Date:
08-2016
Content Type:
Working Paper
Institution:
Center for Economic and Social Development (CESD)
Abstract:
It has already been three month since the national currency of the Republic of Azerbaijan continuously loses its value. Since the second half of 2014, due to the fall in oil prices on the world markets, the resulting pressure on the national currency – ‘Manat’ is ongoing nowadays. Overall, Manat lost 49.6% of its value in 2015 and in addition, with more 3% depreciation in the first 7 months of 2016, the losses could reach 52.6%. Although the occurring rapid dollarization and the observed stagnation in the business environment especially in imports in the first months of 2015 and 2016 resulted in short-term reduction in foreign exchange demand in March-May period of this year and strengthening the exchange rate of USD/AZN at the level of 1.49, the process of depreciation proceeded again afterwards. As a result, the national currency increased its annual losses to the level of 3% in June-July, by depreciating 7% against the US dollar again.
Topic:
Finance
Political Geography:
Azerbaijan

8674. Why Azerbaijan needs a Strategic Reform of its foreign policy towards the European Union?

Author:
Cristina Juan Carrion
Publication Date:
04-2016
Content Type:
Research Paper
Institution:
Center for Economic and Social Development (CESD)
Abstract:
During the course of 2015 Azerbaijan suffered the impact of two devaluations of the national currency, Azerbaijani Manat (AZN), due to the decrease of the world oil prices. Given that oil and natural gas accounts for more than 90% of Azerbaijani exports, continued low world oil prices had a critical negative impact on the Azerbaijani economy. The current situation has led Azerbaijan to establish new priorities that could help restructure the financial system at this critical moment. The drastic change in the economic outlook of the country has created the need to open a wider window to the European Union (EU) in order to overcome the current economic downturn.
Topic:
Finance and Financial Markets
Political Geography:
Azerbaijan

8675. Youth in the Middle East

Author:
Center for International and Regional Studies
Publication Date:
12-2016
Content Type:
Special Report
Institution:
Center for International and Regional Studies: CIRS
Abstract:
During the second half of the twentieth century, the Middle East and North Africa (MENA) was hit by a demographic wave that saw its youth population grow at an unprecedented rate. This youth bulge spurred national and international debate regarding the challenges and opportunities that the youth cohort brings to the region. The potential that young people have—either as agents of positive change or instability—was illustrated during the Arab uprisings. In the wake of the unrest, there is a need to expand our collective understanding of the lives of young people in the MENA region, and to examine factors that affect their normative transitions to adulthood. The narrative around Middle Eastern youth often centers on their social, political, and economic exclusion and marginalization. Living through decades of authoritarian rule and political instability, youth in the Middle East have struggled to fulfill their aspirations related to citizenship, livelihood, and social and political participation. Given the continued jobs crisis in the Middle East, where youth generally experience high rates of unemployment and where labor market activity, particularly among young women, remains strikingly low, understanding the economic exclusion of youth and the various means by which to redress it remain significant.
Topic:
Political Theory, Youth Culture, and Global Political Economy
Political Geography:
Middle East

8676. Water Management in the Nile Basin: A Fragmented but Effective Cooperative Regime

Author:
Bart Hilhorst
Publication Date:
12-2016
Content Type:
Research Paper
Institution:
Center for International and Regional Studies: CIRS
Abstract:
Ongoing expansions of hydro-infrastructure in the Nile basin, combined with infrastructure completed in the past decade, are increasing the capacity to regulate the Nile as well as the benefits accrued to the Nile waters. No longer reliant on funding from the World Bank and Western donors alone, Nile water development is accelerating in a number of upstream riparian states. Hence, the river Nile upstream of the Aswan High Dam is gradually being transformed from a natural to a regulated river. Hydro-infrastructure projects represent a strong driver for issue-based cooperation among the most affected riparians, but it is noted that the basin- wide perspective is not considered in these ad hoc arrangements. This paper describes the emerging cooperative regime in the Nile basin and analyzes its effectiveness. It presents an inventory of where cooperation among Nile riparians is needed, and discusses the required level of cooperation. It looks at the benefits of cooperation that are not related to a specific geographic area. The paper then identifies four distinct sub-basins that have substantial autonomy in managing their water resources. It concludes that the emerging cooperative setup is logical and for now quite effective, and does not lock in arrangements that may prove inconsistent—at a later point in time—with the overall objective of reasonable and equitable use of the Nile waters by each riparian state. Hence, the emerging cooperative regime arguably represents a positive step in the evolution from a basin without cooperation to a basin managed to optimize the use of the Nile waters for the benefit of its people.
Topic:
Environment and Climate Finance
Political Geography:
Africa and Egypt

8677. Yemen’s Forgotten War: How Europe Can Lay the Foundations for Peace

Author:
Adam Baron
Publication Date:
12-2016
Content Type:
Policy Brief
Institution:
European Council On Foreign Relations
Abstract:
After years of conflict Yemen is on the verge of absolute collapse. Institutions across the country are falling apart, while a plethora of armed groups have taken advantage of the power vacuum to claim leadership over key territories, leading to even greater fragmentation of the country. The conflict, and the accompanying Saudi-led intervention, has brought about the Middle East's most severe humanitarian crisis, with 86 percent of the population in need of humanitarian assistance. Yemen is facing a lost generation, as hundreds of thousands of Yemeni children grow up without an education or enough food to eat. The EU and its member states have a moral and strategic interest in ending the conflict. Failure to act could result in Yemen becoming a new hub for globally oriented terror groups, and could spur a new wave of refugees into Europe. The EU should make the most of its comparatively neutral position in Yemen to pave the way for post-conflict stabilisation and reach out to groups that have, to date, been marginalised in the ongoing peace process. The EU can complement UN efforts and may be faced with the responsibility of filling in for an increasingly isolationist United States.
Topic:
War and International Security
Political Geography:
Yemen

8678. Heavy Metal Diplomacy: Russia’s Political Use of its Military in Europe since 2014

Author:
Mark Galeotti
Publication Date:
12-2016
Content Type:
Policy Brief
Institution:
European Council On Foreign Relations
Abstract:
Since 2014, Russia has mounted an extensive, aggressive, and multi-platform attempt to use its military and the threat of force as instruments of coercive diplomacy, intended to divide, distract, and deter Europe from challenging Russia’s activities in its immediate neighbourhood. The main elements are threats of potential military action, wargames which pointedly simulate such operations, the deployment of combat units in ways which also convey a political message, and intrusions close to and into European airspace, waters and even territory. The actual impact of these policies is varied, sometimes counter-productive, and they depend on coordination with other means of diplomacy and influence. But they have nonetheless contributed to a fragmentation of unity within both NATO and the European Union. ‘Heavy metal diplomacy’ is likely to continue for the immediate future. This requires a sharper sense on the part of the EU and its member states of what is a truly military move and what is political, a refusal to rise to the bait, and yet a display of convincing unity and cross-platform capacity when a response is required.
Topic:
International Relations and Diplomacy
Political Geography:
Russia

8679. China’s investment in influence: the future of 16+1 cooperation

Author:
Angela Stanzel, Agatha Kratz, Justyna Szczudlik, and Dragan Pavlićević
Publication Date:
12-2016
Content Type:
Working Paper
Institution:
European Council On Foreign Relations
Abstract:
China faced hard times in 2016 – at least when it comes to promoting its investment in Europe. The European Union is one of its most important economic and trading partners and the final destination of China’s flagship initiative, the New Silk Road. However, some EU member states have recently become increasingly critical of China’s push for more investment in Europe. Beijing has invested significant effort in building a new entry point into Europe through the central and eastern European (CEE) countries – in particular, through the 16+1 framework. As reflected in Agatha Kratz’s article in this edition of China Analysis, the CEE region is attractive to China thanks to its strategic geographical position for the New Silk Road project, its high-skilled yet cheap labour, and its open trade and investment environment.
Topic:
International Political Economy and International Affairs
Political Geography:
China

8680. Big is beautiful? State-owned enterprise mergers under Xi Jinping

Author:
Wendy Leutert and François Godement
Publication Date:
11-2016
Content Type:
Special Report
Institution:
European Council On Foreign Relations
Abstract:
It is merger season again in China, as evidenced by the sources drawn on in this special issue of China Analysis. But who really knows why? Our contributor Wendy Leutert points out how the government’s goals have shifted within the last year alone. In September 2015, new guidelines emphasising the importance of separating state suppliers of public goods from more commercial state firms suggested a possible shift towards the latter having to play by the rules of the market. Today, the more traditional goal of mopping up excess supply and inefficient companies seems to have taken over.
Topic:
International Political Economy
Political Geography:
China