Republic of the Caucasus where tea is grown

Caucasus region, which is subdivided into the North Caucasus and Transcaucasia, is located between the Azov and Black Seas on the one hand and the Caspian Sea on the other hand and has geostrategic significance due to the fact that it not only serves as a meeting point between East and West, namely Central Asia and Europe, but more importantly, between the northern and southern regions. The North Caucasus marks the southern border of Russia and the Transcaucasian sanitary protection zone, which includes the independent republics of Armenia, Georgia and Azerbaijan.

The Transcaucasian republics of the CIS include three countries bordering on Russia: Azerbaijan, Georgia, and Armenia, which in the Soviet period constituted one Transcaucasian economic region. The largest republic in terms of area and population is Azerbaijan, the smallest is Armenia. The economic and geographical position of the Transcaucasian republics has now deteriorated. Several points of military operations in this region have caused irreparable damage to the entire economic complex. Now there is no direct rail link from Georgia to Russia through Abkhazia, the complexity of Azerbaijan's relations with the Nakhichevan Republic, which is part of Azerbaijan, is caused by the Armenian-Azerbaijani conflict over Nagorno-Karabakh.

Industry of the countries of the Caucasus. Now, as elsewhere in the CIS, industries that have their own resources have come to the fore in the Transcaucasian republics. Azerbaijan is increasing the volume of oil and gas production, attracting significant foreign investments for this. Georgia currently stands out as a major exporter of manganese ore, and is also trying to re-establish ties with Russia in terms of selling wine and citrus fruits to our market. Armenia, experiencing the most serious energy difficulties, was forced to re-launch the nuclear power plant, which was closed after the Spitak earthquake (1988). This allowed, to some extent, to restore the smelting of copper and molybdenum.

Agriculture. In Georgia, where a significant part of the plains is located in a humid subtropical climate, the cultivation of tea, citrus fruits, tobacco has developed, in the Kura and Alazani valleys, significant areas are occupied by vineyards. Wheat, barley, and corn are grown from field crops. Sheep are grazed in mountainous areas. The climate in Azerbaijan is much drier, which leads to the use of additional irrigation in agriculture for growing cotton, vegetables, and grain crops. In the northern and western regions, as well as in Georgia, grapes are grown. Large areas of semi-desert pastures are used for grazing fine-fleece and karakul sheep. Armenia differs from the other two republics in more severe climatic conditions. The grapes here for the winter have to be sheltered from severe frosts, but, due to the dry climate, the grapes in the summer gain a lot of sugar, which makes it possible to produce cognacs.Vegetables and grains are grown in the Ararat valley; there are many peach and apricot orchards on the slopes. Mineral resources include coal, oil, gas, alunites, and salts. From metamorphic and igneous ores, iron, manganese, copper, molybdenum, polymetallic ores can be distinguished, as well as deposits of marble, tuff, pumice, arsenic and barite ores.

It is believed that Armenia is an economic outsider, a “poor relative” in the Transcaucasus, especially against the background of, at first glance, more successful and enterprising neighbors:

• Azerbaijan, which constantly interests investors with its oil reserves and, thanks to this, has provided a more or less acceptable standard of living for its population;
• Georgia, whose "economic" miracle is based mainly on external "infusions" and a series of reforms.

In 2009, for the second time in modern history, Azerbaijan lost to Georgia and Armenia in terms of foreign direct investment (FDI), although it was the only one of the three states where FDI increased.

According to the Asian Development Outlook (ADO) 2010 report prepared by the Asian Development Bank (ADB), last year FDI in the Azerbaijani economy grew from $ 15 million to $ 472 million, but the country was only the third in their volume in the South Caucasus for the second year in a row. In Georgia, which remained the leader, the FDI fell from $ 1523 million to $ 765 million, and in Armenia - from $ 925 million to $ 700 million. At the same time, the population of both Armenia and Georgia is 3 times smaller than the population of Azerbaijan. In terms of per capita production, Azerbaijan's GDP does not surpass and even is somewhat inferior to Armenia. By the nature of economic development, the “Armenian model” is more preferable, since traditional industries are simultaneously developing in Armenia. In terms of the structure of the block of branches of heavy industry, Armenia is in many respects similar to Azerbaijan. However, the same industries that have developed in Armenia are either liquidated or disoriented and in decline in Azerbaijan (organic synthesis, aluminum, electrical engineering). In Azerbaijan, in essence, light industry has been curtailed, while in Armenia this industry is developing at a faster pace and is mainly export-oriented. Over the past two years, Armenia has outstripped Azerbaijan in terms of the pace of economic and industrial development. After the end of the oil boom, real foreign investments in Azerbaijan began to give way to investments in Armenia. In terms of GDP per capita based on PPP in 2009 ($ 4,500), Georgia was in 149th place out of 228, behind it from the post-Soviet states only Kyrgyzstan, Moldova and Uzbekistan. In terms of economic indicators, Georgia today falls short of half of its 1990 achievements; in neighboring Azerbaijan and Armenia, this indicator is much better.

Armenia

According to the experts of the Masterforex-V Trading Academy, the factors of the modern negative impact on the Armenian economy include:

1) Foreign policy factor - unfriendly external environmente.

• The border with Azerbaijan has long been closed due to the Nagorno-Karabakh conflict;
• the transport corridor with Turkey practically does not work due to discrepancies in the assessment of the Armenian genocide;
• access to the outside world remained only through a small section of the Armenian-Iranian border, but even here everything is not easy, as you know, international sanctions were imposed on Iran, which naturally limits bilateral relations. The main foreign policy problem of Armenia is the unsettledness of relations with Azerbaijan.
• arising from the unfriendly external environment, Armenia's dependence on Russia, which uses the Armenian-Azerbaijani conflict for its own purposes;
• contradictions between Armenia and Georgia because of the Armenian-populated Javakheti Georgia as a potential small "Karabakh".

2) Negative socio-economic factors further development of Armenia, of course, more:

• the smallest of the republics of the former USSR, smaller than the Moscow region, and also landlocked;
• not rich in natural resources. There are small reserves of copper, zinc, molybdenum, gold, lead and bauxite. Hence the great dependence on the import of oil, gas, high technologies with their market of reduced competition and on the export of metals, where competitors are even a dime a dozen. * lack of transit potential and budget revenues from this source;
• lack of transit potential and budget revenues from this source;
• the collapse of the USSR, which practically killed the country's industry, which was 90% integrated into the all-Union economy. For Armenia, the liquidation of the USSR had simply disastrous consequences. Today, enterprises (of course, those that survived) lack not only raw materials, but also sales markets.
• numerous disasters that have fallen to the share of Armenia, first of all, the earthquake of magnitude 7 in 1988, which covered almost 40% of the territory of the republic, claimed at least 25 thousand lives and reduced production by a quarter;
• the military conflict over Nagorno-Karabakh with Azerbaijan, which ended with a blockade, because of which the Armenians were left without work, and at home without electricity and heat.
• mass emigration of the able-bodied population from Armenia.
• high concentration and monopolization of production and capital;
• impossibility to receive investments from the privatization of state property, because the industry either collapsed or sold into private hands. All major enterprises in the country have been sold;
• a relatively low share of small and medium-sized enterprises in GDP, among which there are practically no manufacturing enterprises. Armenia ceases to be a country producing a product;
• a huge trade imbalance, imports significantly exceed exports, the imbalances between them increased from 2.9 times in 2000 to 4.7 times in 2009;
• the shadow economy in Armenia is, according to experts, 35-40%, and if you believe the opposition, then everything is 70%;

3) Political factor - instability of the political system.

According to Transparency International's Corruption Perceptions Index, Armenia ranked 120th out of 180 countries.

Crisis in Armenia: Features of Fall and Rise

The government, of course, did not sit with folded hands, analysts of the Masterforex-V Trading Academy clarify:

• government investments in infrastructure, water supply and irrigation systems were increased;
• small and medium businesses were exempted from VAT and inspections;
• the main exporters were given interest-free loans.

Thanks to the measures taken, the country's economy, although slowly, entered the stage of recovery. According to the CIS Statistical Committee, the leader in industrial production growth in the first half of 2010 was Kyrgyzstan - 41.8%, while Armenia took the second place - 12.3%, while in Azerbaijan only 3.5% growth. In terms of GDP growth among the CIS countries, Armenia is in fourth place - 6.7%, while Azerbaijan has 3.7%. GDP growth is expected to be 4% this year. The volume of foreign trade turnover in January-September this year increased by 23.6% compared to the same period in 2009. Obviously, the lower I fell, the higher I bounced.

Armenia's potential for future investors

Armenia certainly has development potential. In this regard, it can be recalled that from 2000 to 2009, the country's GDP grew by about 3 times, industrial production - by 2.2 times. For several pre-crisis years, Armenia has demonstrated double-digit economic growth (in 2007, a record 13.8%). It is no coincidence that in the world ranking of unstable (failed) states (Failed States) of the American magazine Foreign Policy, Armenia took 101st place, while Georgia - 33rd, and Azerbaijan - 56th (the lower the country in the rating, the more stable).

Advantages and potential of Armenia:

• special relationship with Russia. There are 1,400 enterprises with Russian capital operating in the country, and in such strategic areas as energy, transport and communications.
• diaspora or, as the Armenians themselves say, "the national unity of the Armenian people in the world."
• geostrategic position.Armenia is located at the crossroads of routes connecting the countries of the East and West, trade routes between the Near and Middle East and Europe, therefore it is considered as a transcontinental state;
• Armenia is the only one of the 5 countries in the region to have a nuclear power plant;
• tourism. The country attracts many with its pristine beauty, which is only Lake Sevan with the famous trout, the ancient Echmiadzin monastery or the Tsaghkadzor ski resort.
• highly qualified personnel.

The most attractive sectors of the economy for investment.

Quite promising in the opinion of experts of the Masterforex-V Trading Academy are:

• gold ore projects,
• diamond processing,
• tourism,
• information technology industry,
• projects for the construction of large metallurgical plants.

The country is going to develop transport infrastructure, plans to build railways and highways to connect Iran with the ports of Georgia. In general, Armenia, with its great investment potential, can become a trade and economic bridge connecting neighboring countries, moreover, a regional financial center.

But investors should keep in mind a number of risks when making decisions:

• Armenia's dependence on global processes,
• the country is vulnerable from the point of view of internal political stability, the radical opposition, after a long break this year, has again declared itself,
• lack of liquidity in banks,
• the rudimentaryness of the Armenian stock and foreign exchange markets,
• "Oligarchic structure" of the economy. The oligarchs control imports, monopolized the most important sectors of the economy,
• the tax system in Armenia is not so much complicated as it is confusing. VAT plays a key role in Armenia's tax revenues (in January-May of this year - 50.6% of the total amount of taxes received by the state budget), and this tax is undifferentiated;
• in the tax and customs areas there are problems with transparency and a level playing field for entrepreneurs. Attempts by the government to carry out a soft tax reform in order to redirect part of the shadow capital to the state budget are still blocked,
• social orientation of the country's economy. Expenditures on the social sphere in the 2011 state budget are planned to be unprecedented - an increase in social benefits by 15%, pensions - by 10%, etc. Social expenses will amount to over 27%.

But still Armenia is a fairly liberal state, whose authorities in every possible way encourage foreign investors:

• more or less favorable investment climate,
• there are no restrictions on the movement of capital,
• sufficient stability of the banking system,
• the institution of property rights is strong.

According to the World Bank, according to the ease of doing business index, Armenia ranks 43rd (7 points higher than in 2009):

• in the field of property registration (5th place),
• founding a new business (21st place),
• in the field of obtaining loans (43rd place), although in the index "Investor Protection" - from 5th place moved to 93rd,
• in the field of taxes (153rd place). In the annual rating of economic freedom, prepared by the specialists of the Heritage Foundation analytical center, although Armenia dropped from 31st to 38th place, it is significantly higher than neighboring Azerbaijan (96th place).

And, finally, for post-Soviet investors, the geographical proximity of Armenia, the absence of visas, post-Soviet mental closeness and knowledge of the Russian language are of no small importance.

Azerbaijan

Economic overview

During the Soviet period, Azerbaijan has always been more industrialized than Armenia and Georgia, also less diversified, as a result of the slow flow of investment in the oil sector. Since then, for many months we have been hearing that the economy of Azerbaijan is getting better and better every day.

Economy of Azerbaijan for almost 70 years it has been developing as a part of the USSR economy, with a focus mainly on the Russian market.The main branches of the economy were the oil-extracting and oil-refining industry and agriculture. In the 1960s-1980s, mechanical engineering, chemical, textile, food and other industries developed in the republic. The war in Karabakh and political instability led to a significant drop in production in 1988-1994. After the conclusion of the Armenian-Azerbaijani ceasefire agreement in the conflict zone in May 1994 and the stabilization of the political situation, the economic recession was stopped. For over a century, the backbone of Azerbaijan's economy has been oil, which accounts for 10 percent of Azerbaijan's GDP in 2005 and doubled to nearly 20 percent of GDP in 2007. Now that Western oil companies are able to identify deep-water deposits untouched by the Council due to poor technology, Azerbaijan is considered one of the most important areas in the world for oil production and development. The proven oil reserves in the Caspian Basin, which Azerbaijan shares with Russia, Kazakhstan, Iran and Turkmenistan, are comparable to the size of the North Sea, although exploration is still in its early stages. Azerbaijan has signed 28 production sharing agreements with various oil companies. A new pipeline and delivery route systems for natural gas along the southern corridor to Europe are currently being considered and negotiated. In the late 1990s, in cooperation with the International Monetary Fund (IMF), Azerbaijan is pursuing a successful economic stabilization program, with an annual growth of over 10% since 2000. In 2009, the gross domestic product in Azerbaijan grew by 9.3%, with growth in 2010 estimated at 9.8%.

Azerbaijan and international organizations

At present, Azerbaijan has trade relations with 140 countries of the world, is a member of a number of international economic organizations, including the process of becoming a member of the World Trade Organization. December 21, 1991 Azerbaijan joined the Commonwealth of Independent States (CIS). On March 2, 1992, he was admitted to the UN, and later joined other international organizations. Azerbaijan has the status of an invited member of the Council of Europe and is a member of the European Bank for Reconstruction and Development (EBRD), the International Bank for Reconstruction and Development (IBRD), the Islamic Congress Organization (OIC), the OSCE, the NATO Partnership for Peace program, the World trade organization (WTO) with observer status, etc.

Main industries of Azerbaijan

Azerbaijan is an industrial-agrarian country with a highly developed industry and diversified agriculture. The metallurgical, chemical and light industries are developing rapidly. In the beginning. 21 c. the economy of Azerbaijan acquires mainly raw materials orientation. This applies not only to industry, but also to agriculture, where the volume of cultivated areas of industrial crops (for example, tobacco, cotton) has significantly decreased.

The most important place in the economy of Azerbaijan is occupied by:

• oil and gas industry,
• oil refining industry,
• chemical industry (mineral fertilizers, synthetic rubber, car tires, etc.),
• engineering industry,
• mining industry (extraction of iron ore and alunite) and non-ferrous metallurgy,
• food industry (canning, tea, tobacco, wine-making),
• light industry (ginning, cotton, silk, woolen, carpet weaving)

Azerbaijan's oil and gas reserves are attractive to foreign oil companies.

The second most important sector is agriculture. Agricultural lands account for 46% of the total area of ​​the country (about 4 million hectares), and half of them are pastures. They grow grain, industrial (cotton, tobacco), subtropical (pomegranate, tea, citrus fruits, persimmon) crops, and grapes. Natural silk is produced.

Business environment in Azerbaijan

Azerbaijan has made efforts to modernize and reform the economy. The World Bank named Azerbaijan “a leader in reform” in its Doing Business 2009 report, reflecting its significant efforts to simplify domestic regulations. The government has enacted regulatory reforms in several areas, including significant trade policy opening, but ineffective governance in which commercial and regulatory interests converge and limit the impact of these reforms. The government has largely completed the privatization of agricultural land and small and medium-sized enterprises. Azerbaijan still suffers from arbitrary tax and customs administration, a judicial system that lacks independence, monopoly market regulation, and systemic corruption. Business registrations increased by 40% in the first 6 months. Azerbaijan also eliminated the minimum cut-off of a loan in the amount of $ 1,100, more than twice the number of borrowers are covered by the credit register. In addition, taxpayers can now apply and pay taxes online. Azerbaijan's extensive reforms have moved it far from 97 to 33 in the world ease of doing business rankings.

Investments in Azerbaijan

A certain stability in the country and a long ceasefire in the zone of the Karabakh conflict allows Azerbaijan to attract foreign investments for the development of oil production and transportation. Azerbaijan is the leader among the CIS countries in terms of growth of foreign investments (from 10 to 50% per year). Since the second half of the 1990s, there has been an increase in investment in various sectors of the economy, primarily at the expense of extra-budgetary funds. During the period from 1996 to 2000, the amount of foreign investment amounted to $ 5 billion.Up to 50% of foreign investments go to the development of mechanical engineering, communications, the food industry, the service sector, etc.

Major foreign investors. The Azerbaijani government has signed several important agreements on the development of oil and gas fields.

The most important factor of investor interest is the natural resources of Azerbaijan, the main part of which has been poorly studied due to lack of material resources and outdated technological equipment. The attraction of foreign capital is to a certain extent determined by the interest of the Azerbaijani side in the implementation of large investment projects, in this connection, it is legitimate to note the participation of large transnational corporations (TNCs) in the investment process in Azerbaijan. In general, in recent years, portfolio investments in the economy of Azerbaijan have noticeably increased; today, more than 20 large investment institutions have settled in Azerbaijan.

Main sectors for investment:

1. investments in the oil sector 51.5%;
2. Investments in industry totaled AZN 194.8 million (-25.1%);
3. investment in the electricity, gas and water sectors (AZN 50.8 million, + 5.6 times);
4. the agricultural sector (AZN 11.4 million, a 3-fold increase);
5. housing construction (24.7 million manats);

Investments in the transport sector, warehousing and communication sector (AZN 25.8 million).

The country has created stable political and economic conditions. The most important comparative advantages of the Azerbaijani economy are as follows:

• Azerbaijan is rich in natural resources, especially in hydrocarbon raw materials;
• The level of education of the population is quite high, almost half of the population of the corresponding age has a technical or higher education, the rest of the population mainly has secondary education. High level of qualifications of scientists, engineers, doctors, teachers, etc .;
• Azerbaijan has a developed infrastructure, including a developed road network, basic irrigation systems, a good rail network, significant power generation capacities, and cable telecommunications.

Legislative base of Azerbaijan

The country is continuously working to create a favorable investment climate. A number of measures are being taken to improve the legal framework. Draft laws “On investment activity” and “On special economic zones” have been prepared. The legislative base of the tax system in the country is the Tax Code of the Republic of Azerbaijan, which entered into force on January 1, 2001.

Recently, the following changes have been made in the tax system:

• Income tax for enterprises and organizations has been reduced from 35% to 25%;
• Value added tax has been reduced from 28% to 18%;
• The maximum level of taxes levied on the profits of individuals has been reduced from 55% to 35%; • Payments for social insurance reduced from 40% to 27%;
• The total number of taxes has been reduced from 15 to 9;
• Since 2001, entrepreneurs engaged in agriculture have been exempted from all types of taxes for a period of 3 years, except for the land tax;
• Since 2003, in order to further encourage the development of entrepreneurship in the regions of the country, differentiated rates of income tax have been applied.

In order to eliminate double taxation and mutual encouragement and protection of investments, Azerbaijan has signed a number of agreements with foreign states, including France, Austria, Great Britain, Norway, Turkey, Kazakhstan, Moldova, Russia, Ukraine, Georgia, Uzbekistan, and Belarus.

Until recently, foreign investment has been very successful in attracting mainly to the oil sector. In the oil sector, the most active foreign investments were made in the development of industrial and social infrastructure, urban economy. Large investments in construction were made by Turkish companies.

Currently, the strategic priorities for investing in Azerbaijan are:

• Investments in the processing of growing volumes of agricultural products;
• Investments in the creation of highly efficient infrastructure, in particular in energy, telecommunications services, water and gas supply systems;
• Investments in the expansion and renovation of industries serving the oil sector;
• Taking into account the colossal possibilities of Azerbaijan in gas production, the industries based on gas are developing promisingly. The country's oil revenues are viewed as a source of long-term and stable development of the country's economic potential. Therefore, Azerbaijan's revenues from oil exports are accumulated in the Oil Fund. The government attaches particular importance to the development of the oil sector with the involvement of foreign capital. Foreign investments are viewed as a means of importing modern technologies, increasing the competitiveness of the Azerbaijani economy.

Georgia

In recent years, Georgia has become a dynamically developing country with one of the highest growth rates in the world (in the best 2007, according to the IMF, the GDP growth rate was more than 12%, of course, the starting point was practically zero). If in 2003 the state budget of Georgia was only $ 400 million, then in 2009 it was $ 4 billion. The American Agency for International Development defined these transformations as “the most extensive, deep and rapid reforms carried out by any country in the world over the past 50 years. ".

Among the most important components of Georgian changes:

1) sharp liberalization of its economy - the country has actually minimized state regulation of all spheres of life. As part of this policy:

• in a short time, 84% of licenses and permits regulating business by the state were canceled, and this process continues.They left them mainly only for important activities, for example, those related to human health.
• now property and business are registered on a one-stop-shop basis. Georgia's success in creating a favorable regulatory climate this year was noted by the World Bank, which ranked it 11th in the world ranking of ease of doing business (a few years ago it took 59th place). According to this rating, Georgia is ahead of not anyone, but Switzerland, France and Germany with Japan;
• Georgia has liquidated: the sanitary and epidemiological station, the fire inspection and dozens of other inspection bodies parasitizing on business;
• a number of taxes were abolished and the remaining ones were reduced (from 21 types of taxes, the number of taxes decreased to 6 - income tax - 20%, income tax, VAT, excise tax, real estate tax and customs duty). By the way, the number of customs tariffs has been reduced to two rates (0% and 12%), before there were 16 and they reached 30%. A zero customs tariff has been established for the import of 90% of goods. The customs there is not engaged in knocking out taxes, but controls the turnover, supporting domestic producers with moderate protectionism;
• customs procedures, open databases, and a clear standard for responding to citizens' appeals have been radically simplified. The fiscal burden on business in Georgia is 26. In general, it is no coincidence that Forbes this year, in terms of the ease of paying taxes, named Georgia the most liberal regime in Europe and the fourth in the world after Qatar, the United Arab Emirates and Hong Kong. As a result, a favorable business climate was created in the country. And today, registering a foreign company there is quick and easy - just four procedures, which take four days. The conditions for registering enterprises are the same for residents and non-residents. Foreigners can work without work permits, without restrictions on the right to repatriate capital. For foreigners, there are no restrictions on ownership of urban real estate or land;
• simultaneously and in parallel, the tax collection regime was tightened .;
• a radical and large-scale privatization was carried out. Since 2003, about 4 thousand objects have been privatized in the small country for a total of $ 1.38 billion (among investors - Arabs, Turks, Ukrainians and, of course, Russians, who are engaged, for example, in the production and distribution of electricity - RAO UES).
• tough social policy. Free medicine, housing and other social programs have been practically eliminated in the country.

2) fight against corruption:

• a total purge and reduction of the state apparatus was carried out (by 20%), which simultaneously made it possible to significantly raise salaries, for example, to a minister, by 15-20 times;
• the rights and powers of the officials of the state apparatus of Georgia have been significantly reduced and eliminated;
• hundreds of officials (mayors, governors, ministers, judges) were arrested for corruption, and this happened in public, in front of television cameras. At the same time, they were not particularly worried about the "presumption of innocence" and were simply allowed to pay off (!) From punishment;
• reforming the traffic police;
• reform of the Ministry of Internal Affairs, carried out by analogy with the reform of the traffic police. The country has become the least criminalized and corrupt in the region. Moreover, according to Transparency International, Georgia is the leading country in the post-Soviet space (with the exception of the Baltic countries).

3) authoritarian political system... The president has practically unlimited power today:

• the majority in parliament, moreover, constitutional, is controlled by the pro-presidential party "United National Movement";
• the government absolutely controls the country's judicial system;
• the opposition, hopelessly fragmented into a whole series of small parties fighting with each other and hating each other, is nothing serious;
• persecution of dissidents. The opposition claims that Georgian prisons are now overcrowded with political prisoners;
• government control over television and the media;
• harsh criminal law;
• 11% of the state budget going to the needs of the Ministry of Internal Affairs;
• and finally, amendments to the constitution have already been prepared, according to which the powers of the President in 2013 should be transferred partly to the parliament, partly to the president.

Benefits of Georgia for an investor

We have to admit that although the quality of the investment climate, the country has gone ahead in comparison with many post-Soviet countries, while investors are wary of investing serious money in Georgia. Meanwhile, the World Bank names Georgia one of the most open countries for foreign investment. According to the Index of Economic Freedom, Georgia is ranked 26th out of 183 countries. Georgian economists are confident that this year GDP will exceed 6%. These facts are an important incentive for potential investors. For their more active participation in the Georgian economy, the authorities promise:

• introduce preferential taxes for IT companies: foreign companies will pay taxes at a minimum rate;
• develop a largely forgotten, but potentially profitable source of income - tourism. Ambitious plans have already been announced - to attract five million tourists in a few years. In the meantime, dilapidated, ruined camp sites and sanatoriums need serious investments;
• draw attention to the country's favorable geographic location as an important economic asset. Indeed, arteries connecting East and West, Asia and Europe pass through Georgia, it is an important link in many transit projects - NABUCCO, transportation of liquefied and compressed gas;
• Given Georgia's significant hydro resources, the country may turn into a producer of cheap electricity.

According to preliminary data of the Georgian Statistics Service (Sakstati), which were published on December 14, the inflow of foreign direct investment in Georgia in the third quarter of 2010 decreased by 7.3% compared to the same period last year and amounted to 160.4 million US dollars. As a result, the volume of investments in January-September 2010 amounted to 443 million US dollars, which is 6.6% less than the same period last year. In the third quarter of 2010, the largest amount of direct foreign investments in Georgia came from the Netherlands - $ 27.9 million; This is followed by the United States - $ 21.6 million; Russia - $ 18.6 million, Azerbaijan - $ 16.2 million and the UAE - $ 13.5 million. Most of the FDI - US $ 49.7 million (31%) in the third quarter was attracted by the financial sector; This is followed by the spheres of the transport and communications sector - 40.5 million US dollars (25%); real estate - US $ 33.6 million (21%) and the energy sector - US $ 16 million (10%).

Zakavkazye (Armenian Անդրկովկաս, English Transcaucasia, Azeri Cənubi Qafqaz, cargo სამხრეთი კავკასია), or South Caucasus - part of the Caucasus, a geopolitical region located on the border of Eastern Europe and South-West Asia, lying south of the Main, or Dividing Range of the Greater Caucasus.

The Transcaucasia includes most of the southern slope of the Greater Caucasus, the Colchis Lowland and the Kura Depression, the Lesser Caucasus, the northeastern part of the Armenian Highlands, the Talysh Mountains with the Lankaran Lowland. The states are located within the Transcaucasus: Armenia, Azerbaijan and Georgia. In the same region, there are partially recognized states: the Republic of Abkhazia and South Ossetia, whose independence is recognized by Russia and several other countries, as well as the unrecognized Nagorno-Karabakh Republic. Transcaucasia is bordered in the north by the Russian Federation, in the south by Turkey and Iran, in the west by the Black Sea, in the east by the Caspian Sea. The area of ​​Transcaucasia is 190 thousand square kilometers.

Name

The formation of toponyms with the prefix "for" has become widespread in Russian and, as a rule, reflects the territory from a known geographic object in an already developed area (for example, Trans-Volga, Trans-Urals, Transbaikalia when moving from west to east, or Transcaucasia - from north to south , Transcarpathia - from east to west). This approach understands the vector of movement from central Russia, and from a geographic point of view, it is not neutral because Transcaucasia can also be understood as the territory of the North Caucasus with geopolitical movement from south to north.In 1918, on the ruins of the Russian Empire, the Transcaucasian Democratic Federal Republic was formed, which was located on the territory of five provinces - Tiflis, Kutaisi, Erivan, Baku, Elizavetpolskaya; one region - Kars; and one district - Zakatalsky. In 1922, the Transcaucasian Socialist Federative Soviet Republic appeared, covering the territories of Georgia, Armenia and Azerbaijan. In 1935, the Transcaucasian Military District of the USSR was formed in these territories.

In turn, the concept of "South Caucasus", as a synonym for "Transcaucasia", became widely used after the collapse of the Soviet Union, although the first attempts to use this term refer to the period of the outbreak of the First World War and the collapse of the Russian Empire. It, like the concept of "Azerbaijan" for the Eastern Transcaucasia (within the former Russian Empire), was proposed by the British and taken up by Turkey. For example, in 2007 the South Caucasus gas pipeline was opened. But if the concept of "Azerbaijan" for the Eastern Transcaucasia was preserved in the Soviet period and in the Soviet Union, then the concept of "South Caucasus" could not supplant the traditional concept of "Transcaucasia".

Borders

Traditionally, the Great Caucasus Range was considered the northern border of Transcaucasia, and the state border of the USSR between the Black and Caspian Seas (Transcaucasian Border District) was considered the southern border. The modern southern border on the Turkish section was determined by the Moscow and Kars treaties of 1921. Since the state border is conditional (the Kars region either entered the Transcaucasia or left it), there are attempts to oppose the Armenian Highlands from which it is separated by the Colchis and Lankaran lowlands with Transcaucasia in the south, but this approach excludes Armenia from the Caucasus in general and Transcaucasia in particular.

Historical sketch

Transcaucasia is a region that since ancient times was a connecting link between the countries of the East and West and was located at the crossroads of trade routes between the Near and Middle East and Europe, migration waves, armies of conquerors seeking to seize the ancient and medieval states of the Caucasus. Trade and cultural ties of these states were widespread among themselves and with neighboring countries of Europe and the East - Iran, India, China, etc.

Here in the IX-VI centuries BC. NS. there were some of the most ancient states in the world - Urartu and the Scythian Kingdom. In the second half of the 1st millennium BC. NS. - Ervandi Armenia, Great Armenia, Colchis kingdom, Caucasian Albania, Abkhazian kingdom. From ancient civilizations, there are masterpieces of architecture, outstanding literary monuments.

In the Early Middle Ages (VII-XI centuries), the local population consisted of three main ethno-linguistic groups: Armenians, Caucasians and Iranians. The Armenians dominated the central and western regions, and were the largest and most important non-Muslim people. The Caucasian peoples lived to the north of them and consisted of many different tribes. The most important of the Caucasian peoples were the Georgians (in turn, consisting of Abazgs, Lazes and Iberians), who lived between the Black Sea and the upper Kura valley around Tbilisi, and the Albanians, a product of an ancient confederation, inhabiting the region between the Caspian Sea and the lower Kura valley, as well as adjoining from the west there are hills. By the 7th century they were already heavily Armenianized and over the next four centuries were absorbed by neighboring peoples (Christian and Muslim). Iranian peoples settled mainly in the southeastern regions of the Transcaucasus, historical Azerbaijan lying south of the Araks River, and, most likely, they were mainly Kurds. In addition to these main ethnic groups, there were centers of Arab and Greek populations, as well as settlers from the north of the Caucasus.

The presence of fertile lands, water resources and a mild climate contributed to the creation of a developed agriculture - irrigated agriculture, pasture animal husbandry.Trade led to the development of crafts, the construction of cities, and the development of transport.

On the other hand, the rich lands constantly attracted the attention of strong and warlike neighbors - at first it was the Roman Empire, then Byzantium, Parthia, the Sassanian Empire, and the Arabs. In the XIII-XV centuries - the Mongols, Tamerlane. Then Transcaucasia became an object of rivalry between the Safavid Empire and the Ottoman Empire. The Middle Ages was a time of endless wars, feudal strife and devastating campaigns of various conquerors.

After the collapse of Safavid Iran, in the middle of the 18th century, khanates were formed on the territory of Transcaucasia, mainly led by the Azerbaijani Turkic-speaking dynasties.

Transcaucasia within the USSR

“Here I don't like our border,” Stalin said and pointed to the south of the Caucasus (Molotov's testimony, post-war period).

Over the past two centuries, the historical destinies of the Caucasian peoples were closely linked with the Russian Empire, and then with the USSR. The Soviet period in the history of Transcaucasia was marked by a significant rise in industry in the region, the strengthening of economic ties within the USSR, the leveling of the level of socio-economic development of the Transcaucasian republics, an increase in the educational level of the population, and the creation of a large national intelligentsia.

At the all-Union level, the economic advantages that the Transcaucasia possesses were used - a high hydropower potential, the presence of deposits of iron and polymetallic ores, oil, opportunities for the development of resort and sanatoriums, fruit growing and viticulture, winemaking, tea growing, and grazing.

At the same time, the level of development of the productive forces remained insufficient for the full use of human resources, especially in rural areas, which led to an outflow of the population to cities and beyond the Transcaucasus. A significant part of the local economy was the shadow economy, which led to an extremely high level of corruption in the local Soviet, party and economic nomenklatura, law enforcement and judicial authorities. A system of clans was cultivated, distributing posts among themselves in the Soviet and economic hierarchy; there was a significant property stratification among the population.

The events of the late 1980s - early 1990s also demonstrated the failure of the national policy of the CPSU, aimed at leveling the level of socio-economic development of the Soviet nations and the formation of a new community - the Soviet people. The liberalization of political life and the development of glasnost led to a sharp rise in nationalism, for which the leadership of the republics was not ready. A chain reaction began: the emergence of nationalist organizations and parties, Popular Fronts - the advancement of political demands, including demands for independence - attempts to appease, arrests, trials of nationalist leaders - protest demonstrations - the use of armed violence by the authorities to disperse demonstrations (Tbilisi) - the introduction of troops in order to stop the riots in (Baku) - presentation of demands for the exercise of the right to self-determination declared in the constitutions - thousands of flows of refugees and displaced persons (Armenia - NKAO - Azerbaijan) - national pogroms, robberies, murders (Sumgait, Baku, Gugark, Nagorno-Karabakh) - the use of armed forces to suppress pogroms - numerous casualties among the civilian population - the elimination of national autonomies (Abkhazia, South Ossetia, NKAO) - claims by local parliaments against the central leadership and accusations of inaction and / or support of one of the parties to the conflict - accept f decisions on secession from the USSR.

Transcaucasia after the collapse of the USSR

The events in the Transcaucasus played an important role in the collapse of the Soviet Union.By this time, power in the Transcaucasian republics was already in the hands of radical nationalist leaders, and after gaining independence, they gained access to weapons stocks in warehouses and military bases of the Transcaucasian Military District. The units of the Soviet armed forces stationed here mainly consisted of the local population. Mercenaries, including from Russia and Ukraine, were urgently recruited to control complex military equipment (aviation, air defense, tanks). Everything was ready for regional conflicts. 1992-1993 were marked by bloody conflicts between Azerbaijan, Armenia and the unrecognized NKR, Georgia and Abkhazia, Georgia and South Ossetia.

Azerbaijan

The main export pipeline Baku-Tbilisi-Ceyhan has been built, which provides Azerbaijan with an alternative access to world hydrocarbon markets. Part of the territory of Azerbaijan is controlled by the unrecognized, but actually independent Nagorno-Karabakh Republic, part - by Armenia (exclaves of Kyarki, Barkhudarly, Upper Askipara). Azerbaijan, in turn, controls part of the territory of Armenia (the Artsvashen exclave). The National Army of Azerbaijan is the largest army in the South Caucasus. Also, Azerbaijan's economy ranks 76th in the world in terms of GDP (as of 2010).

Armenia

During the first years of independence Armenia experienced difficulties in connection with the 1988 Earthquake, which claimed 25,000 lives, left about 500,000 inhabitants of northern Armenia homeless and destroyed the entire infrastructure of the region, also due to the war in Nagorno-Karabakh, as well as the blockade of borders from neighboring Azerbaijan and Turkey.

Georgia

Georgia has to solve a whole tangle of interrelated problems - problems with the economy, the resort Black Sea coast of Abkhazia is inaccessible, in internal Georgia social tension is intensified by the presence of several hundred thousand refugees from Abkhazia and South Ossetia. The Georgian leadership accuses Russia of supporting the separatist aspirations of the new state entities on its territory. On August 8, 2008, a military conflict began in South Ossetia, after which, on August 26, 2008, Russia recognized the independence of Abkhazia and South Ossetia. This move was condemned by the military allies of the Georgian government (the United States and most of the NATO member states). Almost all countries of the world did not recognize the independence of Abkhazia and South Ossetia, except Nicaragua, Nauru, Venezuela and Vanuatu.

Nagorno-Karabakh

Abkhazia

South Ossetia

Russian military facilities in Transcaucasia

• Armenia
  • 102nd Russian military base in Gyumri.
• Abkhazia
  • 7th Russian military base
• South Ossetia
  • 4th Russian military base

Notes (edit)

1. ↑ Transcaucasia // Brockhaus and Efron Encyclopedic Dictionary: in 86 volumes (82 volumes and 4 additional). - SPb., 1890-1907.
2. ↑ Transcaucasia // Great Soviet Encyclopedia: / Ch. ed. A.M. Prokhorov. - 3rd ed. - M.: Soviet Encyclopedia, 1969-1978.
3. ↑ Transcaucasia // Great Encyclopedic Dictionary / Ch. ed. A.M. Prokhorov. - 1st ed. - M.: Great Russian Encyclopedia, 1991. - ISBN 5-85270-160-2.
4. ↑ Transcaucasia // Great Russian Encyclopedia: / Ch. ed. Yu.S. Osipov. - M.: Great Russian Encyclopedia, 2004-2017.
5. ↑ Transcaucasia, Russian Zakavkazye Britannica
6. ↑ Caucasus
7. ↑ Khalatov V. Yu / Ethno-territorial changes in the South Caucasus for 1914-2014 / Proceedings of the V international conference on historical geography. - SPb. : Leningrad State University. A. S. Pushkin, 2015 - S. 92-96.
8. ↑ Armenian Highlands and Transcaucasia
9. ↑ ARMENIANS ARE THE ARMENIAN MOUNTAINS, NOT THE CAUCASUS
10. ^ Mark Whittow The Making of Byzantium, 600-1025 University of California Press, 1996, p. 195.
11. ↑ Stalin believed that a major war was impossible in the near future.
12. ↑ The USA and Russia will play a new "Caucasian gambit". Now - in Azerbaijan (inaccessible link)

see also

• Black Sea coast of the Caucasus
• Nagorno-Karabakh

Links

• Newspapers write about the demographic situation in the countries of Transcaucasia = Arman Hakobyan: Ethno-demographic changes in Transcaucasia. "EADaily", May 3, 2017 // Demoscope Weekly: website. - May 1 - 21, 2017. - No. 727-728.
• Gusterin P.V.From the social history of Dagestan and Transcaucasia
• Bagirova I. Integration processes in the South Caucasus and the policy of the great powers in the historical retrospective of the XX century // The Caucasus & Globalization. 2007. No. 2.S.102-113.
• Mansurov T.Z.Features of the formation and development prospects of political integration processes in the South Caucasus region // PolitBook. 2012. No. 3. P.83-96.

After the collapse of the Soviet Union, the republics that were part of it made their choice, and most of them emerged from the influence of the Russian Federation, forming separate states. Transcaucasia did the same. The countries that were part of this region in 1990 became independent powers. These are Azerbaijan, Armenia and Georgia. The characteristics of the countries of the Caucasus are presented in the article.

History of the region

The countries that existed in ancient times on the site of modern Transcaucasia were well known outside its borders. For example, in the 9th century BC. NS. on the territory of Armenia there was a strong and rich Urartian kingdom. The unification of the tribes in this region began as early as the 13th century BC. e., as evidenced by the Assyrian sources during the reign of King Ashurnatsirapal II. Previously nomadic, they settled along the shores of Lake Van, becoming artisans, farmers and pastoralists.

By the 8th century, the inhabitants of the kingdom had not only their own language and writing, but also religion, and the division of the country into regions with local government and subordination to the central authority in the person of the king and government.

Thanks to military campaigns on the territory of modern Syria and the advancement to the countries of the Caucasus, Urartu significantly expanded its possessions. Fortress cities, irrigation canals and aqueducts were built on the conquered territories, state granaries were created in case of a siege.

The history of Colchis, located on the territory of modern Georgia, is no less famous. The people who inhabited it were famous for their jewelers, blacksmiths and metallurgists. Their skill and wealth of the land itself formed the basis of the myth of the golden fleece, for which the Argonauts went, led by Jason.

What is surprising in the history of these ancient states that make up the Transcaucasus? The countries of which it is today were able to form their own languages ​​and customs, leave a rich architectural and cultural heritage, under constant pressure from outside.

Georgia

This country occupies the central and western part of the region and borders with Azerbaijan, Russia, Armenia and Turkey.

The countries of the CIS, Transcaucasia, including Georgia, faced changes in the economy and the development of international relations, which had to be rebuilt after the collapse of the Soviet Union. Since during the Soviet era, industry was not developed in the entire region, Georgia, for example, had to start developing its own minerals, including:

• Coal deposits, which are estimated at more than 200 million tons.
• Oil reserves - 4.8 million tons.
• Natural gas - 8.5 billion m3.
• Manganese deposits occupy more than 4% of the world's reserves of this ore and amount to 223 million tons, which puts Georgia in 4th place on the planet in terms of its production.
• Among non-ferrous metals, the leaders are copper, of which there are more than 700,000 tons in the country, lead (120,000 tons) and zinc (270,000 tons).

In addition to the above, the country occupies a leading place among the CIS countries in deposits of bentonite clay, there are deposits of gold, antimony, cadmium, diatomite and other minerals. The main asset of the country is 2000 mineral springs, among which the most famous are Borzhomi, Tskhaltubsky, Akhaltsikhe and Lugelsky.

Another pride of the Georgian people is the wines produced in the country. They are well known in the post-Soviet space and abroad. The national cuisine is not far behind in popularity, which, according to the results of a special international jury, takes 5th place in the world.

Today Georgia is a prosperous country with the most developed tourism and resort business, winemaking, citrus and tea growing.

Armenia

This country has the least favorable geographical location, since it does not have an outlet to the sea, which somewhat affects its economy.

Nevertheless, if we take the Transcaucasia, the countries included in it, then it is Armenia that leads in mechanical engineering and the chemical industry. Most of the industry is engaged in the production of electronic and radio devices, machine tools and automobiles.

Non-ferrous metallurgy is not inferior to them, thanks to which copper, aluminum, molybdenum concentrate and precious metals are produced in the country.

Wine-making and cognac products of Armenia are well known abroad. In agriculture, figs, pomegranates, almonds and olives are grown for export.

A highly developed network of railways and highways allows the country to trade not only with its neighbors, but also with far abroad.

Azerbaijan

If we take the countries of Transcaucasia and Central Asia, then Azerbaijan occupies one of the leading places in the production and processing of oil products and gas.

This country has the richest deposits:

• oil on the Absheron Peninsula and the shelf of the Caspian Sea;
• natural gas in Karadag;
• iron ore, copper and molybdenum in Nakhichevan.

Most of agriculture belongs to cotton growing, and viticulture occupies half of the gross turnover, which gives the entire Transcaucasia. The countries of this region grow grapes, but it is Azerbaijan that leads in this industry.

Despite the differences in economic development, culture, religion and population, parts of this territory have something in common. This is the geographical position of the Transcaucasian countries, due to which their natural resources and climate have similar features.

Climatic zones of Transcaucasia

This region leads the world in the diversity of landscapes in such a small area. This is due to the fact that a significant part of the land in these countries is occupied by mountains (the Greater and Lesser Caucasus), and only a third is lowland. In this regard, land suitable for agriculture is extremely limited.

The Suram ridge divides the region into 2 climatic zones. So, this territory is subdivided into dry subtropics in the east and wet subtropics in the west, which affects the irrigation system and crops: in some regions there is an abundance of water for irrigation, in others it is sorely lacking. Nevertheless, this did not prevent Georgia, Armenia and Azerbaijan from uniting in the Commonwealth of a subtropical economy for the cultivation of tea, citrus fruits, bay leaves, tobacco, geraniums and grapes.

Population

If we take the Transcaucasia as a whole (which countries are included in it, you already know), then Armenians, Azerbaijanis, Georgians, Abkhazians and Adjarians will make up 90% of the region's population. The rest is represented by Russians, Kurds, Ossetians and Lezgins. Today, more than 17 million people live in this region.

The composition of the territory. Natural conditions and resources. The countries of Transcaucasia - Georgia, Azerbaijan and Armenia - are located within the mountain systems - the Caucasus and the Armenian Highlands. In terms of height, these mountains are comparable to the Alps: in the Caucasus, Kazbek reaches 5033 m (the highest point - Elbrus - 5642 m is located on the territory of Russia); in the Armenian Highlands - Mount Aragats - 4090 m (the highest point of the highland - the Big Ararat volcano - 5165 m is located in Turkey) (Fig. 139). Peaked peaks covered with glaciers, deep valleys, gorges, lava plateaus and volcanic cones, karst caves and lakes make the alpine relief especially diverse. The ridges of the Caucasus adjoin the Armenian Highlands from the north. The trough dividing the Caucasus into the Big and Small, near the Black Sea expands and passes into the Colchis lowland, and at the Caspian depression - into the Lankaran and Kura-Araks lowlands.

Rice. 140 Kura

Rice. 140 Araks

The region is characterized by high seismicity: the strength of the earthquakes that destroyed the Armenian city of Spitak in 1988 and destroyed villages in northwestern Iran in 1990 exceeded 7 points.The ridges of the Caucasus, framing the highlands from the north, tend to rise (more than 10 mm per year), and the lowlands separating them tend to sink. The Colchis Lowland sinks especially quickly (up to 1.3 mm per year).

The relief and geographic location contribute to the diversity of the climate.

In the west - on the Black Sea coast and in the Colchis lowland - the climate is humid subtropical. About 1800 mm of precipitation falls annually. Summer is hot (+ 24 ° С). Heavy showers are typical for the whole year, but especially for warm (+ 4 ..., + 6 ° С) winter.

The subtropical climate of the eastern Caspian slopes and the protected Kura-Araks lowland is dry: up to 400 mm falls here, and less than 200 mm of precipitation in the south. In winter - about +2 ° С, in summer it is hot - up to +28 ° С.

In the highlands of the Caucasus and the Armenian Highlands, the climate is subtropical continental - severe, with cold winters (down to –15 ° C). In summer - no higher than +20 ° С. On the slopes of the ridges, especially in spring and early summer, there is a lot of precipitation (1000 mm). In the depressions in summer there is intense heat (+ 24 ... + 30 ° С), little precipitation: in the west - 500-750 mm, in the east - 300-500 mm. The peaks are covered with caps of snow and ice. Glaciers are mobile, there is a great danger of avalanches. With the rapid melting of snow and heavy showers, mudflows are formed. Glacial waters are fed by numerous turbulent rivers, the largest of which are the Kura and Araks (Fig. 140). There are many lakes - tectonic, volcanic, karst. The basin of the largest lake - Sevan - is formed in a fault, dammed by lava flows (Fig. 141).

Rice. 141 Sevan

The vegetation of the Caucasus is diverse and unique. The slopes of the mountains in the west are covered with humid subtropical deciduous forests of alder and beech, hornbeam and oak. In Colchis, they are mixed with evergreen boxwood, yew, tree trunks are entwined with vines. On the slopes of the Lankaran lowland, unique relict "Hirkan" forests of chestnut oak and ironwood have been preserved. The arid Kura-Araks lowland is occupied by semi-deserts of wormwood and ephemeral tulips and bluegrass. The high-altitude slopes of the Armenian Highlands are covered with grass-grass and feather-grass steppes.

The fauna of the Caucasus is diverse. If the same animals live in the foothills as on the adjacent plains, then a significant number of endemic or relict species appear in the highlands. Of the large animals, this is the Caucasian mountain goat - a tour (found only here), a bearded, or bezoar, goat, chamois. Among insects, up to 30% of all species are endemic, and among terrestrial mollusks - almost 75%. Many mountainous regions of the Caucasus can be regarded as a nature reserve, where nature itself has created good conditions for the preservation and reproduction of many large animals and birds.

Population the countries of Transcaucasia is heterogeneous. In terms of its number, Azerbaijan is the leader, where natural growth is high. The population of all states was greatly influenced by migrations associated with interethnic conflicts. The low birth rate, which has dropped to the death rate, is due to the stability of the population of Georgia. Life expectancy in the countries of the Caucasus is about 72 years. The level of urbanization is low: in Armenia - about 65%, in Azerbaijan and Georgia - about 54%. The largest cities are capitals; each of them has more than a million inhabitants (Fig. 142, 143). Transcaucasia is characterized by a fairly high population density. High, especially in Georgia - 52% - the share of people employed in agriculture. The titular ethnic groups make up 90% in Armenia and Azerbaijan, in Georgia - less than 70%. Armenians and Georgians are Christians. The overwhelming majority of Azerbaijanis adhere to Islam. Adjarians living in Georgia are Muslims.

Rice. 142 Yerevan

Rice. 143 Baku

Household. In Azerbaijan, the basis of industry is oil production and oil refining (Fig. 144).The service sector dominates in Georgia and Armenia, with agriculture and the related food industry being the leading industries.

Rice. 144. Oil production on the shelf

Agriculture Beyond the Caspian Sea, the Caucasus has plant growing specialization. The structure of land is dominated by pastures, mainly mountainous (Fig. 145). The development of agriculture is constrained by the lack of suitable land for cultivation. Lands need reclamation - irrigation or drainage (in the Colchis lowland). The largest cultivated areas are in Azerbaijan. Grain (wheat) and industrial (cotton) crops are cultivated on them. They grow tobacco, tea, citrus fruits, grapes and fruits (pomegranates, figs, quince, etc.). Azerbaijan is the largest supplier of early vegetables to the markets of the CIS countries. Tea and citrus fruits are grown in the Black Sea regions of Georgia. In the east of the country and in Armenia, the main industries are vines. 145. Alpine pasture, gardening and gardening. IN animal husbandry Meat and dairy cattle breeding and meat and wool sheep breeding dominate in Georgia and Azerbaijan. Livestock breeding in Armenia specializes in breeding dairy and meat cattle and sheep breeding. The branch of specialization of the Caspian regions of Azerbaijan is fishing. Sericulture is developed in Georgia and Azerbaijan, pig breeding in Armenia, and poultry farming in all countries.

Rice. 145 High Mountain Pasture

Specializes in the processing of crop production food industry countries of the region. Armenia produces wines and cognacs, mineral water, canned fruit. In Georgia and Azerbaijan, in addition to fruit canning, tea and tobacco production, winemaking and fish industry are developed. It is based on local raw materials and easy industry. It is based on textile, producing cotton, silk and woolen fabrics. Leather and footwear production is widely represented, in Azerbaijan and Armenia - the production of carpets, including by hand.

The fuel and energy industries are of exceptional importance in the economies of all countries. industry. In Azerbaijan, where they provide about 70% of the cost of industrial products, the bulk of electricity is produced by thermal power plants, working on fuel oil and natural gas. In Georgia and Armenia, the role of hydroelectric power stations is great. The only Armenian nuclear power plant in the region operates in Armenia. All countries have metallurgical production. Ferrous metallurgy developing in Georgia. Non-ferrous metallurgy in Azerbaijan it is represented by the aluminum industry, in Armenia - by the copper-molybdenum industry. Mechanical engineering manufactures vehicles, industrial equipment, agricultural machines. The leading centers in Azerbaijan are Baku and Ganja, in Georgia - Tbilisi, Kutaisi and Batumi, in Armenia - Yerevan. Chemical the industry is represented by petrochemical enterprises in Azerbaijan and Armenia. The variety of raw materials is due to the development of industry building materials... Marble is mined and processed in Armenia and Azerbaijan. Armenia exports colored tuffs.

Transport. In all countries, in domestic passenger traffic, the main role belongs to automotive transport, in international - aviation... The importance of the Transcaucasian Railway, which connects Baku with Sukhumi and the entire region with Russia. They pass through all the Transcaucasia pipeline Baku - Batumi and gas pipeline Karadag - Agstafa. An oil pipeline is being built through the territory of Georgia to Turkey and further to the Mediterranean Sea.

Political instability in Transcaucasia affected the functioning of the unified transport system of the region. Interstate railway communications through the territory of Abkhazia and Nagorno-Karabakh are limited.In the cargo transportation of Georgia and Azerbaijan, the importance of sea and pipeline transport has increased.

Foreign economic relations each of the countries have their own characteristics, but they also have common features. The largest foreign trade turnover is Azerbaijan. The most important partners of all states are their neighboring countries. In the structure of exports of all countries, the role of mineral raw materials, agricultural products and food is great. Imports are dominated by mineral fuels, mechanical engineering and chemical products. Tourism is a traditional branch of the economy. There are numerous resorts - climatic seaside and balneological, built near mineral springs.

Bibliography 

1. Geography grade 9 / Textbook for grade 9 institutions of general secondary education with the Russian language of instruction / Edited by N. V. Naumenko / Minsk "Narodnaya asveta" 2011