In 2016 Aliyev Strengthened Its Clan's Position and Weakened the Country's Socio-Economic Situation

• 01.05.2017, 17:54
• Greta Avetisyan
•  Region,  "Insight" Analytical Center ,  World,  Analytics

From economic problems to Aliyev’s family’s offshore scandal, from the arrests of activists to the strengthening of the positions of Aliyev clan – those were the most interesting developments in the internal political life of Azerbaiajn.

The beginning of the year for Azerbaijan was quite difficult. The economy that was artificially kept stable during 2015, faced serious problems since the beginning of the year. Only in January more than 7 banks were closed. The reason was that their financial capital did not correspond to the one required by the Central Bank, as well as the banks were unable to fulfill their obligations to creditors and manage reliable supply. This was followed by closure of the representations of world famous brands in the country. As Moody's international rating agency informs, Azerbaijan has entered a period of economic regression, and will have 3.3 percent decline in GDP.

One of the reasons for such serious problems in the economy was unpredictable and quick decline of oil prices. As mentioned, this was only one of the reasons. The publication of Panama Papers revealed the policy of Aliyev of wasting the state budget. Organized Crime and Corruption Reporting Project (OCCRP) published information about the property of the family of Azerbaijan’s President.

According to the published data, the family of President Ilham Aliyev has secret offshore companies, through which it manages real estate and other assets in London. It is noted that the Aliyev family has more than 140 million dollars worth of real estate in London, Dubai, Moscow, Karlovy Vary city in the Czech Republic and others.

Such disclosure should have raised dissatisfaction of the Azerbaijani public that is in bad socio-economic situation and made them take certain steps. However, this was also prevented...

By resorting to aggression against NKR and creating an imitation of a strong country, Aliyev not only erased the offshore scandal from the memory of its society, but also created a ground for Constitutional reforms, also arresting those talking against the reforms.

"Some of the proposed changes are contrary to democracy, human rights and the rule of law," a group of Azerbaijani human rights defenders declared, calling on the Council of Europe Secretary General Thorbjorn Jagland for legal assessment of the constitutional reforms initiated by President Ilham Aliyev. "People's Front of Azerbaijan" party called to cancel the referendum, draft constitution was criticized by the West, as well as by the Venice Commission.

However, on September 26 about 92 percent of the voters in the referendum voted for the amendments to the Azerbaijani Constitution. According to these changes, the powers of the president are expanded, positions of the first Vice-President and Vice-President are created, and the Vice-President will be appointed by the head of the state, without any coordination with any institute. The presidential term is extended to 7 years, and the President is given the power to declare early elections of the head of state.

Moreover, in order to avoid even the smallest obstacles during his reign, recently changes were introduced to the Criminal Code of Azerbaijan. From now on any attempt to discredit the honor and dignity of the President of Azerbaijan in the Internet will be fined with 500-1000 manats, or that particular person will be imprisoned for 2 years.

Thus, Aliyev and his clan enter 2017 with significantly strengthened positions, while the country and its society is entering a year full of socio-economic difficulties and restrictions.