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  • How To Spend A Billion Dollars

    HOW TO SPEND A BILLION DOLLARS
    by Dzhasur Mamedov
    Translated by Pavel Pushkin

    Source: Voenno-Promyshlenny Kuryer, No. 47, December 06-12, 2006, p. 3
    Agency WPS
    DEFENSE and SECURITY (Russia)
    December 13, 2006 Wednesday

    Azerbaijan does not have a well considered strategy for spending the
    defense budget

    AZERBAIJAN: HOW WILL THE INCREASED DEFENSE BUDGET BE DISTRIBUTED?;
    In 2007, military expenditures of Azerbaijan will reach a level
    unprecedented for the South Caucasus.

    In 2007, military expenditures of Azerbaijan will reach a level
    unprecedented for the South Caucasus. According to statements of
    various official sources, defense budget of the country will amount
    to 907 million manats ($1.039 billion). According to Ziyafet Askerov,
    deputy speaker of the parliament and chair of the permanent commission
    for defense and security issues, in 2007 defense expenditures will
    grow 27.9% and the military components will account for 16% of the
    budget for 2007.

    >>From the sums allocated for military needs the Defense Ministry will
    receive 796 million manats ($912.8 million) and 110.2 million mantas
    ($126 million) will go to the Ministry of Defense Industry. According
    to Doktrina center of military studies of journalists, if the budget
    of the country reaches this level Azerbaijan will confirm its first
    place in the South Caucasus with regard to defense expenditures per
    capita. In 2007, defense expenditures of Azerbaijan will amount to
    $105 per capita. In Armenia this parameter amounts to $70 per capita
    (the national military budget amounts to $220 million) and in Georgia
    it will amount to $65 per capita.

    Stockholm-based SIPRI points at a 51% growth in defense expenditures
    of Azerbaijan between 2005 and 2006, and a 23% growth in defense
    expenditures of Armenia. It is believed that Azerbaijan as an oil
    producing country actively uses revenues from oil sale for purchase of
    armament. According to SIPRI, the speed of growth of the Azerbaijani
    defense budget is faster than the average international statistical
    parameters.

    Colonel General Safar Abiev, Defense Minister of Azerbaijan, also
    connects increase of the defense expenditures with growth of economic
    might of the state.

    Although Azerbaijani independent experts welcome the growth of the
    defense budget, they express concern about its wise spending. Hence,
    even a small poll was held among military experts as a result of
    which it was found out that they would like to receive answers to
    the following seven questions related to the budget:

    1. What are the exact reasons for annual growth of defense expenditures
    in circumstances of absence of a strategy of armed forces buildup
    in the country, which representatives of the state substantiate
    dramatic increase of the military expenditures and what are their
    arguments? Incidentally, up to date, the state of war of Azerbaijan
    against Armenia was the pretext for growth of military expenditures.

    2. Which part of the money allocated for the army will be spent on
    money allowances for servicemen, for food and for uniforms?

    Incidentally, according to various sources 70% of the money allocated
    for the armed forces was spent on the aforementioned goals. Such
    distribution of money is recognized as being far from international
    standards.

    3. Will increase of the sums allocated for defense result in
    improvement of social guarantees for personnel of the armed forces?

    4. Which part of the defense budget will be spent on purchase of
    modern armament and combat hardware? In circumstances of absence of
    a military doctrine, concept of national security and strategy for
    buildup of the army from which countries will Azerbaijan buy armament
    and combat hardware and with which standards will they comply, those
    of NATO or those of Russia?

    5. Which role will increase of defense expenditures play in the future
    development of the armed forces? What will be the difference of the
    army of 2007, spending $1 billion from the army of 1991-2003 existing
    with $100-200 million?

    6. What is it planned to do for improvement of authority of the
    armed forces in society, specifically, for increase of prestige of
    the military profession?

    7. Are there guarantees of correct spending of the money allocated
    for defense and non-appropriation of this money by private
    individuals? Which tasks will be set for the law-enforcement agencies
    because of this?

    Answers to these questions are necessary. The government increases
    military expenditures at its own discretion but evades reporting
    in any form to society and to parliament. That is why there appear
    presumptions of appropriation or possible appropriation of the money
    allocated for defense.

    It is also necessary to mention the stance of NATO towards increase
    of the military expenditures by Azerbaijan. Brussels presumes that
    increase of the defense budget along with growth of revenues is
    normal. However, Brussels simultaneously advocates transparency of
    the military budget to parliament and to society. Representatives of
    NATO announced their readiness to help the government of Azerbaijan in
    this aspect. The Individual Partnership Action Plan for partnership
    between NATO and Azerbaijan (IPAP) clearly outlines goals of defense
    planning. According to the document, Partnership Action Plan on Defense
    Institution Building (PAP DIB) being a vehicle for implementation of
    reforms in the field of defense and security makes democratic control
    over the Armed Forces and budget transparency necessary. Incidentally,
    for this goal Azerbaijan will form an expert group for implementation
    of the plan of defense strategy and will make some aspects connected
    with military expenditures open for discussion.

    That is why it is possible to presume that in the near future
    informing society about defense expenditures will be inevitable
    for the government of Azerbaijan. This requires intensification of
    relations with NATO. The final evaluation of cooperation between
    Azerbaijan and NATO according to IPAP is expected between March and
    April 2007. Official Baku will likely have to inform NATO officials
    about fulfillment of provisions of the document entitled "Transparent
    financing of the defense sector."
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