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352
ECONOMIC ROLE OF BTC (BAKU-TIBILIS-CEYHAN) AND RAILWAY PROJECT
FOR AZERBAIJAN, GEORGIA AND TURKEY
Ayhan GUNEY
Qafqaz University.
Baku / AZERBAIJAN
aguney@qafqaz.edu.az, ayhang79@hotmail.com
INTRODUCTION
The increasing energy demand of world is
shaping and changing the economic and strategic
policies of all countries during the globalization
process and raises a number of questions in terms
of environmental, security, political issues.
Energy is the most important factor and input for
industrialized countries and for the developing
countries all over the world in terms of the
sustainability of technological development, the
standards of living, and economic and politic
powers. The shortage of energy resources such as
oil, natural gas etc., is causing the big economic
crisis , conflicts and wars internationally and, also
threatening the future of countries.
This study is to demonstrate how the BTC
pipelines and other SCP(South Caucasus Pipeline)
Projects based on energy resources in this region,
have, and will effect the economic developments
in the Caucasus region, particularly in Azerbaijan.
BTC and SCP are playing very significant role by
increasing the strategic and economic significance
of Azerbaijan, Georgia, and Turkey.
The BTC project is making those South
Caucasus countries (Azerbaijan, Georgia) and
Turkey big energy actors in the world. Meanwhile,
Turkey and Georgia have not the proven big oil and
gas resources but their geo-strategic and geo-
political positions are making them significant as
the only outlet countries for a Landlocked Region
which Caucasus energy resources can be safely
transported through into international markets.
These pipelines will also lead to creating
possibilities for joining together the transportation
systems of The Black, Caspian, Adriatic, and
Mediterranean Seas.
1
I am especially trying to
focus on what kind of the possibilities of joining
together might be available for those countries.
There are ongoing bilateral problems between
countries but nowadays they are seeking some
economic and strategic cooperation without
mentioning the problems, which is needed for the
economic development and stability of region.
1
Viladimer Papava, Georgia’s Economic Role in the South
Caucasus, Problems of Economic Transition, vol.48, no.4,
August 2005, pp88,
BTC is opening doors for economic coope-
ration in transportation for Azerbaijan, Georgia
and Turkey in terms of a pipeline and railway
projects which is considered a revival of the
historical Silk Road projects merging East-Central
Asia to West. The possibilities for joining together
and strategic, economic partnership for Azer-
baijan, Georgia and Turkey on the occasion of the
mega-dream project BTC (Baku-Tibilisi-Ceyhan)
pipeline begun being built in 2002 and activated in
2006, is getting stronger through the Sahdeniz
gas-pipeline, and railway project, and might be
developed through the other possible bilateral
economic agreement by means of the revitaliza-
tion of goods and services trade and factor mobi-
lity such as labor and capital for those countries.
These three projects are significant steps for
tightening the economic cooperation in transpor-
tation between regional countries as well as the
important means in transportation of Caspian
region oil and gas reserves into international
markets. The future economic development of the
entire South Caucasus, particularly for Azerbaijan,
depends on setting up the big transportation arteries
between this region and the West via Turkey and
Georgia, and implementing social development
investments in non-oil sectors in Azerbaijan.
The Caspian region is one of the largest
potential resources of crude oil and gas in the
world. Azerbaijan is the most important country in
Caucasus in terms of rich oil reserves and natural
gas resources. In this regard, I want to examine the
economic importance of the Caucasus region and
energy resources and pipelines for Azerbaijan and
western countries. Particularly, I am proposing to
focus on the vital importance of the Baku-Tibilis-
Ceyhan Pipeline considered as a 21
st
centuries
mega project that will change the region energy
resources’ map, which was concluded in 2005 and
was made functional in 2006. The BTC project is
making those South Caucasus countries (Azer-
baijan, Georgia) and Turkey big energy actors in
the world. Meanwhile, Turkey and Georgia have
not the proven big oil and gas resources but their
geo-strategic and geo-political positions are making
them significant as the only outlet countries for a
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