Ivane Javakhishvili Tbilisi State University

Faculty of Social and Political Studies

Centre for Social Sciences

Regional Interdisciplinary Master’s Program in Social Sciences

Track: Transformation in the South Caucasus

Shahla Balakishiyeva

Evaluation of the South Caucasus from the perspective of functionalist theory: regionalization and deregionalization from above

Graduate program code: 00.03

Graduate thesis is submitted in partial fulfilment of the requirements of the Master’s Degree in Social Sciences

Graduate thesis supervisor: Dr. Rovshan Ibrahimov

Co-supervisor: Dr. Tinatin Zurabishvili

January, 2009

Tbilisi, Georgia

ABSTRACT

The thesis analyzes the regional integration and disintegration processes have emerged in the South Caucasus since the conquest of the Transcaucasian republics-Armenia, Azerbaijan and Georgia, by the Soviet empire in 1920 till the present era of independence. The paper dissects regionalization and deregionalization practices according to functionalism. It is argued that the South Caucasus experienced regionalization and could be politically and economically regarded a region as a result of this process, while it was within the Soviet empire. However, after gaining independence, the deregionalization attempts succeeded, and currently it is impossible to see regional integration both in economic and political spheres in the South Caucasus. Consequently, the main thesis suggested here is that at present, the South Caucasus is not a region any more.

Key words: a region, regional integration, regionalization, regional disintegration, deregionalization, functionalism, neo-functionalism, the South Caucasus, Transcaucasus, the USSR.

LIST OF ABBREVIATIONS

BSEC -the Black Sea Economic Cooperation

CPSU -the Communist Party of the Soviet Union

EU - the European Union

GUAM -the cooperation between Georgia, Ukraine, Azerbaijan. Moldova

NATO -the North Atlantic Treaty Organization

SU - the Soviet Union

SSR - the Soviet Socialist Republic

TSFSR - the Transcaucasian Soviet Federative Socialist Republic

TRASECA -Transport Corridor Europe Caucasus Central Asia

USSR - the Union of Soviet Socialist Republics

TABLE OF CONTENTS:

1.  Introduction...... 5

2.  Theoretical framework...... 11

2.1.  Research pattern...... 19

3.  Regionalization in the South Caucasus: 1920-1991...... 20

3.1. Regionalization in Transcaucasus: the early Soviet and Stalinist era...... 23

3.1.1. The Lenin era...... 23

3.1.2. Analysis...... 26

3.1.3. The Stalin era...... 28

3.1.4. Analysis...... 32

3.2. The paradox- continued regionalization and sparkling deregionalization in Transcaucasus: the post-Stalinist era...... 34

3.2.1. The Khrushchev and Brezhnev era...... 34

3.2.2. The Gorbachev era...... 39

3.3. Analysis...... 41

4. Deregionalization in the South Caucasus since 1991...... 43

4.1. Daglig-Karabakh conflict and its impact on regional disintegration...... 45

4.2. The political-economic relations: the broken side of triangle...... 46

4.2.1. Azerbaijan-Georgia...... 46

4.2.2. Armenia-Georgia...... 48

4.3. Analysis...... 50

5. Conclusion...... 52

6. Bibliography...... 55

1. INTRODUCTION

In the era of regionalization, the South Caucasus is accepted as one region by the international community. This fact is proved by the approaches to the South Caucasus countries by the Western countries, like the United States and the European Union. Thus, it is frequently stated that there is a need to increase regional cooperation and integration in the South Caucasus. It seems that these statements are based on the argument that the South Caucasus countries are geographically contiguous and these three countries were evaluated as regional countries in the past history. However, insufficient research was undertaken to elaborate the South Caucasus if it really fits the definition of “a region” in accordance to different approaches as well as geographic.

In that way, the thesis attempts to find an answer to the following question within the functionalist theoretical framework. Thus, it tries to explicate regional integration practice in the South Caucasus during the Soviet era and how a region emerged as a result of this practice. The thesis endeavors to explain that regional integration in the South Caucasus was the offer from above, and this process took place in this area, because it was a part of imperialism politics of the Soviet state during that time. Shortly, it was not an initiative of the regional actors to launch integration process here, as functionalists suggest, but the planned and shaped policy regulated by the centre in Moscow.

Moreover, the thesis argues that national revival as a result of decentralization politics of the Soviet government could encourage regional disintegration in the South Caucasus. Thus, deregionalization in this region was also a consequent of politics of the centre. As the regional countries, namely, Armenia, Azerbaijan and Georgia represent different cultures and national identities, the national awakening in the South Caucasus has drawn them to different directions, but not to integration. Despite the fact that, national identity could overlap with regionalization (Kacowicz 1998: 14-15), the revival of national sensibility stimulated regional disintegration in the South Caucasus because of the definite reasons. Firstly, because, national identity could only be recognized if it was founded on a territory and consequently, linguistic, historic and religious reasons were generally ignored starting from the Stalin era, it encouraged the counter-nationalism of the minorities living in these areas. So, it resulted with self-determination claims or irredentist movements of the ethnic minorities that worsened the relations between the core nations. The Nagorno-Karabakh conflict between Armenia and Azerbaijan can be an example. Secondly, as already mentioned, different cultures and national identities of the regional nations pushed them apart from each other, rather than drawing together, after the national revival. Thirdly, a difficult situation both in political and economic sector in the Soviet Union resulted with nationalist movements of the constituent nations who wanted to get rid of the Soviet authority, including Soviet type of regional integration in the South Caucasus.

However, the thesis does not exclude the perspective of regional integration in the South Caucasus. Thus, it suggests that historical experience of regional integration in the South Caucasus can be a draw roll and lead to regional integration if the impediments in a way of integration are eliminated. Therefore, different national identities and cultures could not be a serious hindrance in a way of regionalism in the South Caucasus, if the desire for economic and political benefits through regional integration exceeds the national sensibility in the three countries. Thus, cultural aspects are not decisive in regional integration according to functionalists.

This thesis is structured in five chapters. Chapter I presents the purpose of the research, research questions, hypotheses, research methodology and limitations of the research. Chapter II gives a theoretical framework of the thesis. As already mentioned, the chapter elaborates regional integration approaches of neo-functionalism, and its precursor of functionalism. It defines the main criteria for a region and sketches the research pattern that the analysis of regional integration and disintegration in the South Caucasus are based on.

Chapter III endeavors to support the argument that the South Caucasus experienced regional integration process, which as a result could be evaluated as political and economic region during the Soviet period. Moreover, the following chapter detects the fact that simultaneously, both regional integration and preliminary regional disintegration processes were witnessed in Transcaucasus after the death of Stalin and consequently, decentralization of power in the Soviet Union. Moreover, the chapter argues that regionalization was centrally planned and it was not happening by voluntary consent of the participating countries, but coming to deregionalization, it was also matured under the conditions offered above, which was developed by the regional actors later.

Thus, Chapter IV, in its turn, elaborates deregionalization in the South Caucasus after the second independence of the regional countries, and the main thesis is that after the revival of national sensibility in these countries, the regional states had started to move apart from each other. As the three countries are examples of different cultures and nations, the national revival did not stimulate their drawing together, but stimulated regional disintegration. Moreover, this chapter states the fact that after the collapse of the Soviet Union, all the means for regional integration were disordered and the newly established states of the South Caucasus began building national infrastructure within their territories. Besides, the war between Azerbaijan and Armenia halted regional integration in the South Caucasus, as the trilateral relations do not exist any more. Shortly, this chapter puts the argument in a way that the South Caucasus could not be regarded as a region, as a result of regional disintegration in this area.

Chapter V contains conclusions part of the thesis and the issues for further research. This chapter suggests studying an impact of the great powers on the regional integration and disintegration of the South Caucasus. Besides, it considers important to elaborate an effect of national revival in Armenia, Azerbaijan and Georgia on their attempts to regional integration and disintegration. Moreover, it is also useful to dissect the other experiences and attempts to regional integration in the South Caucasus, like the period before the Bolshevik conquest. Furthermore, the analysis of regional integration within the theoretical framework of other approaches can be also valuable.

At the end, I would like to thank my family and friends for their support and encouragement while preparation of this paper. Besides, I highly appreciate the work of my supervisors, Dr. Ibrahimov and Dr. Zurabishvili, for their valuable comments and criticizing. I would like also to thank my expert interviewees for their contribution to this thesis. Especially, Rauf Rzayev, the partner of Institute of Economic Reforms under the Ministry of Economic Development of the Azerbaijan Republic.

1.1. Purpose and Research Question

This paper attempts to define if the South Caucasus fits the criteria of a region offered in functionalism and neo-functionalism theory. As the following theory is regarded more comprehensive study of regional integration, the thesis endeavors to evaluate regional integration and disintegration in the South Caucasus, and find an answer to the question whether the South Caucasus is a region as a result of regional integration in this area according to the mentioned theory.

With this aim, the paper puts the research questions as following:

§  What are the criteria to be considered a region from the perspective of functionalist/neo-functionalist theory?

§  Is the South Caucasus a region for functionalists?

o  if yes, what are the stimulating factors to consider the South Caucasus a region? (regionalization)

o  if not, what are the halting factors to consider the South Caucasus a region? (deregionalization)

1.2. Hypothesis

The following hypotheses will be tested based on the research:

For the preliminary research it was found out that, for functionalists the main criteria remain geographical proximity, transactions, and a perception of belonging to a definite community and having a collective regional identity in order to be a region. (Russet 1967: 7; Haas 1970: 101). As functionalists state, the process of ‘spill over’ is commenced from the initial non-disputed areas and expands into the other areas. Thus, common features are critical in regionalization.

Implying the mentioned assumptions, the hypothesis can be developed in a way that currently, the South Caucasus lacks to be a region according to functionalism. Although, geographic vicinity exists among Armenia, Azerbaijan and Georgia, but it is hard to define the trilateral transactions, and a perception of common regional identity in the South Caucasus. Besides, there are the other factors that hinder regionalization process in the south Caucasus like the conflict between Armenia and Azerbaijan, which will be elaborated during the research as well.

Furthermore, as a case study it is noteworthy to stress that “Transcaucasus” in the Soviet period could be regarded as a region in accordance to the functionalism/neo-functionalism theory, as it possessed the features like regional transactions, regional institutions, social and political traditions, as well as a common regional identity like “Kavkazsi”-Caucasians. However, after the break up of the Soviet Union, the regional infrastructure was disrupted, as well as eruption of the war between Armenia and Azerbaijan halted regional integration processes in the South Caucasus.

1.3. Research methodology

The research is based on the qualitative research method, including case studies. Thus, different literature and works are explored in the thesis. Moreover, traditional methodology is used that takes up different periods of the South Caucasus as a case in order to explain and analyze the different phases from the perspective of functionalism/neo-functionalism. So, inductive methodology is used to evaluate the concrete geographical area-the South Caucasus, from the perspective of general functionalism/neo-functionalism theory’s specific regional approaches. Furthermore, some expert interviews are also conducted and are elaborated and stressed in the thesis as well.

1.4. Limitations of the research

The thesis limits its theoretical approach with one single theory-functionalism and even does not go into deep elaborating the details of the following theory, but only basing on the specific approaches about regional integration and the definition of a region. Furthermore, the presented research comprehensively analyzes the economic and political interstate relations in the South Caucasus from the conquest of Armenia, Azerbaijan and Georgia by the USSR in 1920 till present and explains its impact on both regional integration (in the Soviet period-the past) and disintegration processes (the present). The paper limits its analysis with the following period, as this period witnessed with the critical changes in the history of regional integration, as well as disintegration in the South Caucasus.

Besides, it would be critical to analyze a role of the great powers in the regional integration and disintegration processes of the South Caucasus, however the research takes up only interstate relations and their effect on regional integration and disintegration. However, it should also be mentioned that while discussing regional integration in Transcaucasia in the Soviet period, the impact of the Soviet state on regional integration, is comprehensively discussed, as the thesis argues that it was a part of the imperialism policy of the Soviet state and regulated from above, not by the local governments themselves.

Moreover, as the theoretical framework of the research is based within functionalism and neo-functionalism theory, the interstate relations are elaborated from political and economic aspects. Thus, functionalists argue the importance of economic factors on formation of regional integration, which lead to political integration at the end as well.

Furthermore, while researching it was found out that the nationalist movements played an important role in regional disintegration in the South Caucasus. It would be very useful to conduct a comprehensive research on correlations between nationalism and regional integration in the South Caucasus, despite the thesis slightly touches upon this issue, but does not go into deep, as it is not an object of the paper.