New millennium, new leader: a new stage of development (2003–2020)

Ilham Aliyev’s career before the presidency and the 2003 election, the Baku–Tbilisi–Ceyhan pipeline and the Southern Gas Corridor, the non-oil sector, regional development, the referendums of 2009 and 2016.

  • Grades 9 and 11
  • 22 min
  • 12 questions
  • Lesson 62 of 72

In this lesson you will learn

  • Trace Ilham Aliyev’s career before the presidency and his path in 2003 in chronological order
  • Tell apart the Baku–Tbilisi–Ceyhan and Baku–Tbilisi–Erzurum pipelines and the parts of the Southern Gas Corridor
  • Explain the aim of the non-oil sector policy and of the regional development programmes
  • Compare the content of the referendums of 2009 and 2016

The Caspian is an enclosed sea: the oil and gas under its bed do not reach the world market by themselves. The Contract of the Century of 1994 secured production (see «Building a law-based democratic state: the 1995 Constitution and reforms (1993–2003)»), but one question remained: by which route should the oil be exported? The answer was the pipelines laid in the 2000s, and they belong to the era of the new president, Ilham Aliyev. This lesson covers 2003–2020.

The new leader: the path before the presidency

Ilham Aliyev was born in Baku on 24 December 1961. He graduated from the Moscow State Institute of International Relations in 1982 and later became a candidate of historical sciences. His career before the presidency rested on three fields: oil diplomacy (SOCAR), parliament and international contacts (Milli Majlis, PACE) and sport (the National Olympic Committee). In 2003 Heydar Aliyev’s health failed; on 4 August Ilham Aliyev was appointed Prime Minister and in the election of 15 October he won roughly 77 per cent of the votes and became President. On 12 December 2003 Heydar Aliyev died. Textbooks call the new era “New millennium — New leader”; its main line was to continue the oil strategy and the course of state-building.

DateActivity
1982graduates from the Moscow State Institute of International Relations
1994vice-president of SOCAR
1995member of the Milli Majlis
1997president of the National Olympic Committee (after his father Heydar Aliyev)
2001head of the Azerbaijani delegation to PACE (Azerbaijan joined the Council of Europe that year)
4 August 2003Prime Minister of Azerbaijan
15 October 2003elected President of the Republic of Azerbaijan
Ilham Aliyev’s path before the presidency

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A new stage of the oil and gas strategy

The first step was to bring oil to the world market by a reliable route. In the 1990s the early oil was carried by the Baku–Novorossiysk and Baku–Supsa pipelines. The foundation of the Baku–Tbilisi–Ceyhan (BTC) pipeline was laid on 18 September 2002; on 25 May 2005 oil began to be pumped into it at the Sangachal terminal, and the official opening took place in Ceyhan on 13 July 2006. The 1,768-kilometre line crosses Azerbaijan, Georgia and Turkey, bypasses Russian territory and can carry about 50 million tonnes of oil a year.

The main gas field was Shah Deniz (discovered in 1999). Its gas began to reach Georgia and Turkey through the Baku–Tbilisi–Erzurum pipeline in 2006–2007; Azerbaijan turned from a gas importer into a gas exporter. The next stage is the Southern Gas Corridor: the Shah Deniz-2 field, the expanded South Caucasus pipeline, TANAP across Turkey and TAP through Greece, Albania and Italy. The Corridor’s opening ceremony was held in Baku on 29 May 2018 and TANAP was inaugurated in Eskişehir on 12 June; at the end of 2020 gas reached Europe through TAP.

The revenue is collected in the State Oil Fund (SOFAZ), set up in 1999, and part of it goes to infrastructure and social projects. Oil output reached its record level in 2010 — more than 50 million tonnes a year.

PipelineCarriesRouteOpened
Baku–Tbilisi–Ceyhan (BTC)oilSangachal – Tbilisi – Ceyhan (1,768 km)13 July 2006
Baku–Tbilisi–Erzurumgas (Shah Deniz)Sangachal – Tbilisi – Erzurum2006–2007
TANAPgasfrom the Georgian–Turkish border to the Turkish–Greek border12 June 2018
TAPgasGreece – Albania – the Adriatic – Italy2020
Oil and gas pipelines (comparison)

Interactive

Loading simulation…
The export routes of Caspian oil and gas. Solid line — BTC; dashed lines — the gas pipeline and the railway. TAP lies beyond the map (Greece, Albania, Italy).
  1. 1994

    Ilham Aliyev becomes vice-president of SOCAR

  2. 1997

    Ilham Aliyev is elected president of the National Olympic Committee

  3. 2001

    Ilham Aliyev heads the Azerbaijani delegation to PACE

  4. 4 August 2003

    Ilham Aliyev is appointed Prime Minister

  5. 15 October 2003

    Ilham Aliyev is elected President

  6. 2004

    The first State Programme for the regions

  7. 1 January 2006

    Redenomination of the manat

  8. 13 July 2006

    Opening of the Baku–Tbilisi–Ceyhan pipeline at Ceyhan

  9. 18 March 2009

    Referendum on amendments to the Constitution

  10. 2013

    The Azerspace-1 satellite is put into orbit

  11. 26 September 2016

    Referendum extending the term to seven years and creating the vice-presidency

  12. 21 February 2017

    Mehriban Aliyeva is appointed first vice-president

  13. 30 October 2017

    Opening of the Baku–Tbilisi–Kars railway

  14. 2018

    Opening of the Southern Gas Corridor (29 May, Baku) and TANAP (12 June)

  15. 2020

    Gas reaches Europe through TAP

The non-oil sector and social policy

Oil and gas revenue creates a risk of dependence: if prices fall, the budget and the manat are hit. So developing the non-oil sector became a goal of state policy. In 2004 the first State Programme for the socio-economic development of the regions (2004–2008) was adopted, followed by three more: 2009–2013, 2014–2018 and 2019–2023. Roads, gas, electricity and water supply improved and new jobs appeared in the provinces.

Agriculture received state support; tourism and information and communication technology (ICT) grew. In 2013 the first telecommunications satellite, Azerspace-1, was put into orbit, in 2014 the Earth-observation satellite Azersky, and in 2018 Azerspace-2. In transport, the Baku–Tbilisi–Kars railway (30 October 2017) and the port of Alat (2018) strengthened the country’s transit role. The first European Games, held in Baku in 2015, boosted tourism (see «Culture, science and sport in independent Azerbaijan»).

In the social field the main directions were poverty-reduction programmes (the first in 2003–2005), higher pensions and wages and new settlements for internally displaced people. On 1 January 2006 a redenomination was carried out: 5,000 old manats became 1 new manat. In 2014–2015 oil prices fell sharply and in 2015 the manat was devalued twice; this showed once more the need to reduce dependence on oil.

CauseResult
the Caspian is enclosed; exports depended on the Russian routeBTC (2006) and the Baku–Tbilisi–Erzurum pipeline
Europe’s interest in an alternative source of gasthe Southern Gas Corridor (2018–2020)
growing oil revenuea stronger SOFAZ, infrastructure and social projects
differences in development between regionsState Programmes for the regions (from 2004)
the fall in oil prices (2014–2015)two devaluations of the manat in 2015; more attention to the non-oil sector
Cause → result

Political reforms: elections and referendums

Ilham Aliyev was re-elected President in 2008, 2013 and 2018 (the 2018 election was held early, on 11 April). The referendum of 18 March 2009 abolished the Constitution’s limit on being elected President more than twice in a row. The referendum of 26 September 2016 extended the President’s term from five to seven years, created the posts of vice-president and made it possible to hold an early presidential election. On 21 February 2017 Mehriban Aliyeva was appointed first vice-president. Opinions on these changes differ: the official position sees them as strengthening the state’s stability, while the opposition and some international bodies criticise them.

DateReferendumMain content
12 November 1995adoption of a new Constitutionthe present Constitution of Azerbaijan
18 March 2009amendments to the Constitutionthe limit on consecutive presidential terms was abolished
26 September 2016amendments to the Constitutionterm from 5 to 7 years; vice-presidents; early presidential election
Comparing three referendums

During these years tension on the Karabakh front grew: see «The ceasefire period and the April battles (2016)». The successes of foreign policy are in «The foreign policy of the Republic of Azerbaijan».

Working with a source

The end of the line

More than a year earlier, oil had begun to be pumped into the pipe from a terminal on the Caspian shore. Now the oil has reached a port on the Mediterranean and a ceremony is under way. The line, which crosses three countries, is more than seventeen hundred kilometres long. The idea of the project was simple: to bring Caspian oil to the world market without depending on the territory of another country. The speeches stressed that this route mattered politically as well as economically: countries were drawing closer around a joint project. Tankers were already lining up in the port.

Source (adapted): written for this lesson on the facts of the official information about the opening of the Baku–Tbilisi–Ceyhan pipeline.

Source tasks

Problem

1) Name the project (not named in the text), the port where it ends and the year of its opening.
2) Explain one political and one economic reason for carrying out the project.
3) Give two consequences that are NOT stated in the text.

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Solution

1) Clues: a Caspian terminal, a Mediterranean port, three countries. Answer: the Baku–Tbilisi–Ceyhan oil pipeline, the port of Ceyhan, 2006 (13 July). Marks: 3 elements — 1; 2 elements — ⅔; 1 element — ⅓.
2) Political: to reduce dependence of exports on the Russian route and strengthen co-operation with the West. Economic: to bring oil from the enclosed Caspian to the world market in large volumes and earn revenue. Marks: both — 1; one — ½.
3) For example: the revenue of the State Oil Fund and economic growth rose; Georgia and Turkey received transit income; the line later served as experience for projects such as the Southern Gas Corridor. Marks: two consequences — 1; one — ½; «countries drew closer» is in the text and earns nothing.

Exam task: chronology

Problem

Put the events in chronological order:
1. Azerspace-1 is put into orbit
2. The opening of TANAP
3. Ilham Aliyev is elected President
4. The referendum creating the vice-presidency
5. The opening of the BTC pipeline at Ceyhan

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Solution

Step 1: The election comes first — 2003 (3), then the oil pipeline — 2006 (5).
Step 2: The satellite — 2013 (1), the referendum — 2016 (4).
Step 3: TANAP comes last — 2018 (2).
Answer: 3, 5, 1, 4, 2.

Exam task: «similar, different»

Problem

The referendum of 2016 was similar to that of 2009 and different from that of 1995. What is this feature?
1. Amending the existing Constitution
2. Extending the President’s term to 7 years
3. Adopting a new Constitution
4. Creating the post of vice-president

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Solution

Step 1: Features 2 and 4 belong to 2016 only; nothing like them happened in 2009, so they give no similarity.
Step 2: Feature 3 belongs to 1995 only: that referendum adopted a new Constitution.
Step 3: In 2009 and 2016 the Constitution was amended, but not in 1995.
Answer: only 1.

Remember

  • Ilham Aliyev worked at SOCAR from 1994, in the Milli Majlis from 1995 and at the National Olympic Committee from 1997; he became Prime Minister on 4 August 2003 and President on 15 October 2003.
  • The BTC oil pipeline (Sangachal–Tbilisi–Ceyhan, 1,768 km) was opened on 13 July 2006.
  • The gas line: Shah Deniz → Baku–Tbilisi–Erzurum (2006–2007) → the Southern Gas Corridor (Shah Deniz-2, TANAP 2018, TAP 2020).
  • The non-oil sector: State Programmes for the regions (2004–2008, 2009–2013, 2014–2018, 2019–2023), satellites (2013, 2014, 2018), the Baku–Tbilisi–Kars railway (2017).
  • The 2009 referendum abolished the limit on consecutive presidential terms; the 2016 referendum extended the term to seven years and created the vice-presidency (Mehriban Aliyeva — 2017).
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Question 1 / 12

Question 1 / 12. Choose the statements that relate to Ilham Aliyev’s activity before the presidency:
1. He worked as a vice-president of SOCAR
2. In 1997 he became president of the National Olympic Committee
3. In 2001 he headed the Azerbaijani delegation to PACE
4. In 1993 he was elected chairman of the Supreme Soviet
5. He was the speaker of the Milli Majlis