Anti-Corruption Measures in the Energy Sector: EITI in Azerbaijan

Abstract

Azerbaijan eagerly joined the Extractive Industries Transparency Initiative (EITI) because doing so helped legitimate the election of President Ilham Aliev in 2003. Since EITI focused on transparency in government revenue, it did not harm the elite’s ability to spend state money in corrupt ways. Accordingly, the initiative failed to ensure that oil money went to society’s benefit and, as the government began to intensify its crackdown on local civil society, EITI downgraded Azerbaijan from its once exalted status. Since Azerbaijan now views itself as a rising regional power, and is less concerned about its standing within the international community, it is not clear if the EITI downgrade will influence government actions.