Taking stock for the future: the southern Caucasus at a crossroads

The people of the Southern Caucasus are coming to a crossroads and a moment for choices. Thirteen years after gaining independence from the Soviet Union, nearly half of the population of Armenia, Azerbaijan, and Georgia (collectively referred to as 'the Southern Caucasus' in this note) are still living below respective national poverty lines. The provision of basic services has virtually ground to a halt in some regions, unemployment is high, and for many it is hard to find even a day's work. During the last 10 years, the enormous human and natural resources of the Southern Caucasus have been wasted by conflict and the collapse of social services. Despite relatively steady economic growth, benefits have been unfairly distributed between rich and poor people, with widespread corruption and the abuse of power leading to instability.