Editor’s note: This article is part of an ongoing WPR series on the impact of falling oil and commodities prices on resource-exporting countries.
In mid-January, protests in Azerbaijan against price hikes and a collapse in the country’s currency were broken up forcefully by security forces, resulting in the arrest of 55 people. In an email interview, Richard D. Kauzlarich, the co-director of the Center for Energy Science and Policy at George Mason University who also served as the U.S. ambassador to Azerbaijan from 1994 to 1997, explains the impact of the collapse of global energy prices on Azerbaijan’s economy.
WPR: How important are commodities for Azerbaijan’s economy, and what effect have falling commodities prices had on public spending and, by consequence, political stability?