Azerbaijan – the rage of the people

The dramatically deteriorating economic situation in Azerbaijan caused a wave of spontaneous protests which have been ongoing since 12 January 2016. The people were protesting against price rises and demanding that the unemployment problem be resolved. The government reacted to the protests chaotically, hoping that the protests will at least temporarily be extinguished. Thorough reforms are impossible in Azerbaijan due to the corrupt government system which is limited by clan bonds, where any changes in the system are viewed as a threat to the positions of the ruling groups. Oil prices were likely to remain low, and this contributed to the escalation of the protests for social reasons, which translated into a higher risk of internal crisis. Dwindling financial reserves also added to the likelihood of a conflict between the main groups in the government elite within the inner circle of President Ilham Aliyev. Concern was also growing that the conflict in Nagorno-Karabakh would be rekindled and that Azerbaijan would become more susceptible to pressure from Russia, which had been rebuilding its position in the Caucasus.

ESO: Background Information: As oil prices remain low, Azerbaijan makes openings to investors, tourists http://www.europeansources.info/record/as-oil-prices-remain-low-azerbaijan-makes-openings-to-investors-tourists/

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