The Nakhchivan Autonomous Republic has a very important place in the geographical division of labor in Azerbaijan. Thus, in the autonomous republic, specialization in certain types of products has gone, and prospects for the future have been developed. In order to plan the dynamics of economic development of Nakhchivan, special attention is paid to the study of the formation and historical features of the regional economy. When looking at the history of socio-economic development of the autonomous republic, we must note two stages.
The first stage covers the years 1969-1982, and this history is written in golden letters not only in the history of Nakhchivan, but also in the history of Azerbaijan. In this history, the economy has developed in a complex way. Thus, as a result of increasing the amount of capital invested in industry and agriculture over the years, the average annual production has increased many times. It should be noted that most of the 39 industrial enterprises put into operation between 1970 and 1980, including 4 in the power industry, 10 in the building materials industry, 4 in the light industry, 17 in the food industry, and 4 in mechanical engineering. , communication, printing and other fields. During this period, the construction of a hydroelectric power plant on the Araz river minimized the energy dependence of the autonomous republic.
During this period, glassware, aluminum containers, reinforced concrete products plant, house-building plant, travertine quarry, tobacco fermentation plant, sub-knitting and sewing factories, a number of wine and canning factories were put into operation. Later, the number of wineries was increased to five. Productivity in winemaking alone increased by 4.9 times and amounted to 370,000 decalitres. By the mid-1980s, local needs had been fully met. In the late 70’s, silkworm breeding and cocooning also joined the industry. At that time, mineral water produced in Nakhchivan provided 60 percent of Azerbaijan’s needs. Production increased 4.1 times to 152,000 bottles.
The dynamics of development created in many areas developed until the mid-80s. With the collapse of the Soviet Union, the economy in Nakhchivan also stagnated. It was at this time, at a time when the economy was on the decline, that the far-sighted policy of national leader Heydar Aliyev and his forecasts for the future gave impetus to the development of the socio-economic situation in Nakhchivan. On April 6, 1992, a decision was made to privatize the loss-making collective and state farms in the Nakhchivan Autonomous Republic. The aim was both to transfer the proceeds from privatization to the budget and to encourage the rural population to engage in farming.
As a result of the work carried out and the decisions made, over the past 10 years, growth has been achieved in GDP, industrial products, fixed capital, communications, paid services and other areas. Suffice it to say that over the past 10 years, the average salary has increased by 170 percent to 484 manat. The program of socio-economic development of the regions adopted at the republican level is being developed in the programs of 2004-2008, 2009-2013, as well as in the Nakhchivan Autonomous Republic at the stage of 2005-2008, 2009-2013, as well as 2019-2023.
The Nakhchivan Autonomous Republic makes up 6.3 percent of the country’s territory and 4.5 percent of its population. Despite being an enclave, all infrastructure facilities have been created in the region. Thus, 600 km of the road surface, 360 of which are of national importance, are used in modern freight transportation. The cement plant, Nakhchivan Automobile Plant and large industrial enterprises established in the region at different intervals not only reduce the unemployment rate in the region, but also meet the needs of the population with local products.
Today, the autonomous republic is at the highest level of economic development. The new production facilities, along with minimizing the unemployment rate, have become a reliable provider of employment. At present, production and industrial enterprises operating in the autonomous republic fully meet local demand and export their products to foreign markets. The opening of new opportunities for the blockaded Nakhchivan took place with the complete victory of our country in the Patriotic War. Thus, after the victory of the 44-day Patriotic War, according to the tripartite Declaration signed on November 10, 2020, transport security between the western regions of the Republic of Azerbaijan and the Nakhchivan Autonomous Republic was guaranteed. This historic agreement will not only end the years-long blockade of the autonomous republic, but also allow it to enter a new stage of development.
The Nakhchivan corridor will play a direct role in raising the level of socio-economic development of the region. Today, Nakhchivan, an integral part of Azerbaijan, is engaged in the production of a number of processed products. Today, Nakhchivan has a fairly large market for a number of processed products, including mineral water, alcoholic beverages and other processed food products. However, for a long time, the lack of access to land and rail transport created difficulties in bringing products produced in Nakhchivan to wider markets. As a result, the commissioning of the corridor will allow Nakhchivan entrepreneurs to export their products to wider markets. This will create great opportunities for the development of entrepreneurship. In addition, one of the main benefits of the corridor is that, as with all corridors, it plays an important role in transportation. Therefore, this road is quite important in the field of both freight and passenger transportation.
The opening of the Nakhchivan corridor will play an important role not only in the economic development of the autonomous republic, but also in the economic development of the country. Thus, through this corridor, the country’s entrepreneurs will be able to export their products to Turkish and European markets through Nakhchivan without incurring additional transport costs. There will be an increase in our non-oil exports, the amount of currency entering the country, as well as an increase in the volume of international cargo transported through Azerbaijan and Nakhchivan. This will further strengthen the strategic position of our country in the region, allowing Azerbaijan to earn more from international cargo transportation.
Member of the Supreme Assembly of the Nakhchivan Autonomous Republic
Vice-rector for Teaching and Education of Nakhchivan University, Associate Professor