BUILDING STRONGER ECONOMIES: HOW THE INTEGRATION WITH THE ORGANIZATION OF TURKIC STATES SHAPES AZERBAIJAN'S FUTURE

 Organization of Turkic States (then called the Cooperation Council of Turkic Speaking States - Turkic Council) was established in 2009 as an intergovernmental organization, with the overarching aim of promoting comprehensive cooperation among Turkic States. Its four founding member states are Azerbaijan, Kazakhstan, Kyrgyzstan and Türkiye. During the 7th Summit held in Baku in October 2019, Uzbekistan joined as a full member. Hungary, Turkmenistan and Northern Cyprus joined as an Observer Members to the Organization.

Organization is dedicated to strengthening peace and stability, promoting wide-ranging cooperation and disclosing the potential for common development among its member states. Although it brings together a particular group of countries, the organization does not take an exclusive approach. On the contrary, by promoting deeper relations and solidarity among Turkic speaking countries, it aims to serve as a new regional instrument for advancing international cooperation in Eurasian continent, particularly in Central Asia and Caucasus.

Constructed on four main pillars of common history, common language, common identity and common culture, the Turkic Council does not limit itself to the confines of these commonalities. Rather, it aims to broaden the existing bilateral cooperation areas such as economy, science, education, transportation, customs, tourism and other various fields among the Member States into multilateral cooperation for the benefit of the region.

At the same time, the Organization does not limit itself within the frames of its Member States and willingly cooperates with its neighboring states in order to ensure peace and stability in its region particularly in the fields such as transport, customs and tourism.

The principal organs of the Organization are the Council of Heads of State, the Council of Foreign Ministers, the Council of Elders, the Senior Officials Committee and the Secretariat. The activities of the organization are also supported by its related and affiliated organizations such as the Parliamentary Assembly of Turkic Speaking Countries (TURKPA), the International Organization of Turkic Culture (TURKSOY), the International Turkic Academy, the Turkic Culture and Heritage Foundation, the Turkic Business Council,  the Turkic University Union and the Turkic Chamber of Commerce and Industry.

Organization of Turkic States attaches great importance to economic cooperation among the Turkic States and to their economic ties with the rest of the world. Mutually beneficial economic cooperation is the sound basis and the core of Turkic cooperation at large.  The Secretariat, in close cooperation with the Ministries in charge of the Economy and other relevant institutions of the Member States, regularly organizes training and experience-sharing programs on various subjects, regularly brings together members of the private sector of the Member States by organizing technical visits for investors/businessmen, holding Business Forums and meetings of the Turkic Business Council, and Round Tables for the Businessmen with the aim of further strengthening economic ties among its members.

Membership in the Organization of Turkic States has brought numerous benefits to Azerbaijan's economy. The organization serves as a platform for economic cooperation, facilitating trade and investment opportunities among member states. Azerbaijan has leveraged its membership to strengthen bilateral relations with other member countries, which will bring increased trade volumes and mutually beneficial partnerships. The Organization of Turkic States has also provided a platform for Azerbaijan to showcase its economic potential and attract foreign investors, further fueling economic growth.

For example, at the 7th Summit of the Organization of Turkic States on the theme “Developing Small and Medium-sized Enterprises” (SMEs) held in Baku on 15 October 2019, the Heads of States reiterated their commitment to the purpose of facilitating mutual trade and investment, as well as enhancing cooperation and exchanges among the private sectors; called on the national agencies in charge of trade registry to work on potential cooperation in order to facilitate the cross-border affairs, movements and cooperation of entrepreneurs in the Member States for boosting mutual cooperation and international trade among them. They also instructed Turkic Chamber of Commerce and Industry (TCCI) member organizations to for increasing business programs and projects to increase intra-trade and ensure the socio-economic development of the Member States.

Moreover, on 16 September 2022, the "Turkic Business Forum "Shusha", devoted to the restoration and socio-economic development of the Karabakh region was held in Shusha, Azerbaijan. The Business Forum was co-organized by the Organization of Turkic States, the Turkic Chamber of Commerce and Industry, Ministry of Economy and National Confederation of Entrepreneurs Organizations of the Republic of Azerbaijan (ASK) and attended by senior officials of Chambers of Commerce and Industry as well as more than 200 business representatives from the Member and Observer States. Following the official remarks of the heads of delegations, the forum proceeded with the special session, moderated by organization, entitled the “Investment opportunities in Karabakh and East Zangazur economic region”.

Since the establishment of the Organization, a total of 11 ministerial and 13 working group meetings on economic cooperation have been organized under the umbrella of the Organization of Turkic States since its establishment. Close cooperation in this field resulted in the signing of several concrete Memoranda of Understanding on facilitating trade relations among the Member and Observer States.

Beside the working groups and meetinigs several leverages and tools are initiated to promote cooperation and foster closer ties among its member states like Turkish Business Portal, Turkic Investment and Development Fund, Turkic Chamber of Commerce and Industry and Turkic Trade Houses. Turkic Trade Houses was prepared based on the Azerbaijani practice and model, the Secretariat, with the close collaboration of the Azerbaijan Export and Investment Promotion Foundation (AZPROMO) currently works on establishment of the first “Turkic Trade House” pilot project in Baku.

The Organization of Turkic States has recognized the importance of infrastructure development and connectivity in promoting economic growth and regional integration. Organization of Turkic States has placed a special emphasis on bolstering transport linkages among the Member States across the Trans-Caspian International East West Middle Transport Corridor (Trans-Caspian Corridor). Eradicating the existing obstacles to efficient, stable and seamless transport and establishing new mechanisms to streamline transport operations in all modes have constituted the basics of cooperation in this area.

Azerbaijan has been actively involved in infrastructure development projects initiated by the organization. These projects include the construction of transportation networks, such as roads, railways, and pipelines, to enhance connectivity within the Turkic region. Improved infrastructure will not only facilitated trade and investment but has also opened up new opportunities for economic cooperation and cultural exchanges.

Development of connectivity will bring the working mechanism for improving the infrastructure of land border crossing points and for ensuring convergence of customs rules and procedures with international standards. The necessity to enhance the competitiveness and attractiveness of the Trans-Caspian International East-West Middle Corridor by providing uninterrupted operation of customs-border checkpoints is affecting to the custom practices of Azerbaijan as well as other members of member states.

In the near future, one of the main areas of cooperation facing the Turkic states will be the effective use and diversification of existing transport corridors. In particular, the consequences of the military actions between Russia and Ukraine and the resulting Western sanctions have created a number of difficulties for Turkic-speaking states. In this tough period and in the future, the importance of the International Trans-Caspian Corridor is expected to increase. There will also be an opportunity to launch the Zangezur transport corridor proposed by Azerbaijan. The opening of the Zangezur corridor is very important, as it will connect Nakhchivan with other Azerbaijani territories, and restore transport and rail links between Türkiye and Azerbaijan and other Turkic republics. The corridor is also vital in terms of reviving the historic Silk Road, China’s Belt and Road Initiative, and in stimulating regional cooperation and trade development. 

While the integration with the Organization of Turkic States has brought and continuing to bring significant benefits to Azerbaijan's economy, there are also challenges and potential obstacles to consider. Differences in economic structures, regulations, and policies among member states can pose hurdles to seamless integration. Additionally, geopolitical tensions and external factors may impact the pace and extent of economic cooperation. However, the Organization of Turkic States has recognized these challenges and continues to work towards overcoming them through dialogue, cooperation, and the formulation of common strategies.

The integration with the Organization of Turkic States presents promising future prospects for Azerbaijan's economy. The organization's focus on economic cooperation, trade facilitation, and infrastructure development aligns with Azerbaijan's development goals. As the country continues to diversify its economy and attract foreign investment, membership in the Organization of Turkic States provides a valuable platform for expanding economic opportunities. Azerbaijan's strategic location, coupled with its membership in the organization, positions it as a key player in regional economic integration and fosters greater economic prosperity for the country and its people.

In conclusion, the integration with the Organization of Turkic States has significantly shaped and will continue to shape Azerbaijan's future. The organization is playing a vital role in promoting economic cooperation, trade, and investment among member states. While challenges exist, the Organization of Turkic States presents promising opportunities for Azerbaijan's economy to thrive and contribute to the overall development of the region.