Local Elites meet Foreign Corporations : The Examples of Iran and Azerbaijan
Oil companies have jumped on the bandwagon of promotion of democracy and human rights, but without sufficient expertise in local conditions. What works in one country may backfire in another. Azeri democrats want the oil industry to stop propping up the Aliev regime and talk to them instead, but for an Iranian democratic politician, support from Western oil companies is the kiss of death. However, in both countries democrats call for more transparency.
Elite perceptions of ethical problems facing the Western oil industry in Iran
The hybrid of democratic and theocratic institutions of revolutionary Iran is now over twenty years old, and is undergoing challenge. An elected president with popular legitimacy but no control of the means of coercion is endeavouring to open up and liberalise, but is being opposed by the conservatives with theocratic vetoes, newspaper closures and street violence. Part One of this report looks at the diarchy of President Khatami and Supreme Leader Khamenei, their legitimacies, their ‘minimalist’ strategies, and their common interest in restraining their wilder supporters from provoking chaos or civil war. The report then considers the elements of ‘civil society’ resulting from deep structural change in Iran: demography and education, the role of women and the free press. Finally, this part considers the journalistic comparison of Khatami with Gorbachev, and finds that although both are/were attempting limited reform of a faltering system of which they were themselves a part, no Iranian Yeltsin has yet emerged. Part Two of the report is the results of in-depth interviews with 14 prominent reformers. They are optimistic about the prospects for long-term change; all the conservatives can do is postpone change or perpetrate a bloodbath, they cannot put the clock back. Our sample tended to consider the oil companies a bad influence. However, they made a sharp distinction between American companies, which they thought more ethical and transparent, and the secretive European, Arab and Japanese companies. Asked what the oil companies should do to promote democratic developement, the interviewees emphasised transparency above all.
Corruption in former USSR countries and international oil business in Azerbaijan
This research report presents an analysis of corruption in Azerbaijan. We have mainly relied on secondary sources. Since data on observed corruption are scarce and unsystematic, we had to give much emphasis on background data that have important impact on corruption levels in general and for which quantitative observations exist: The relative size of the underground economy, the rate of tax collection and the degree of poverty. We draw background data from a sample of countries that belonged to the former Soviet Union, the FSU countries. The countries chosen we consider to be the most relevant for a study of corruption in Azerbaijan, either because they are the largest among the FSU countries or because they are at similar economic level as Azerbaijan, share borders or language. Practical considerations, such as available statistics also play a role.