AZERBAIJAN ARMS RACE LEADER IN REGION

news.am
March 17 2010
Armenia

The military expenses of Armenia and the Nagorno-Karabakh Republic
(NKR) are at least U.S. $600m, writes Nezavisimaya Gazeta.

Thus, despite a 7% GDP decrease in the post-Soviet countries, their
military expenses (in USD terms) increased by 5% against 2009 and by
almost 15% against 2008.

Among the arms race leaders are Georgia (4.56% of GDP), Armenia
(4.07%), Azerbaijan(3.95%), Uzbekistan and Ukraine (3.5% each). It is
to be noted that only Azerbaijan and Uzbekistan registered economic
growth last year, other countries registering a decline. Specifically,
the most dramatic decline was registered in Armenia -nearly 15%. The
data do not include the foreign military assistance to a number of
states, as well as the expenditures on supporting allies.

As regards Armenia, "it is clear, as the Nagorno-Karabakh peace process
does not show any progress. The Azerbaijani leaders, who think Armenia
is controlling 20% of Azerbaijan’s territory, have recently made
repeated statements on a military solution to the conflict."

Petrodollars, the formation of Azerbaijan’s military industry,
as well as the recently formed mobilization reserve, enable the
Azerbaijani Government to increase the country’s military budget,
which presently totals U.S. $3-4, the newspaper writes.

The OSCE seems to be concerned over the problem. OSCE Special
Representative for Nagorno-Karabakh Goran Lenmarker stated recently
that Azerbaijan must reduce its military budget, which might be an
element of the Nagorno-Karabakh peace process.