Limits of Externally Backed Institutional Reform and Development in Azerbaijan

Since Azerbaijan opened itself to international markets, many regional and international actors have shown interest in its development and governance. Not only do international actors secure the oil and gas resources, they also have a stake in how the country is governed and attempt to shape its institutional framework. Regardless of the reasons that lead to these initiatives, international organizations, such as the UN or the IMF, have shown support for specific sets of reforms and institutional changes throughout the years. For example, USAID’s Country Development Cooperation Strategy 2011-2020 for Azerbaijan states three main interests: security, energy, and internal reform. As the UN and Asian Development Bank have published their most recent roadmap for institutional change in Azerbaijan, several questions arise: how likely are these to succeed, are the proposed reforms viable and relevant to the specific context of Azerbaijan, and how do they compare with previous initiatives. This paper discusses the traditional view of institutional reforms supported by international organizations in developing countries, then comparing it to the experience and evidence of success and failure in Azerbaijan.