The unsolved situation of Nagorno-Karabakh is one of the painful spots for Azerbaijan, the Editor-in-Chief of Vestnik Kavkaza, Alexey Vlasov believes, German newspaper Deutsche Welle cites in the article “Azerbaijan: Crown autocracy in the bosom of the petrodollar.”

In the parade that was devoted to the anniversary of the national army, the President of Azerbaijan Ilham Aliyev stated that one fifth of the state budget in the amount of $3.3 billion will be spend for the military expenses. However, disproportioned military expenses are not a reason for inspiration, Vlasov stated and added that such a huge amount could have been served for quite another reasons.

The German article mentions that income from oil and gas started to flow into Azerbaijani treasury at the end of 1990s. This allowed the state to lead in 2000s the list of post Soviet Union states on registered economical growth and face financial crises harmlessly. Azerbaijan exported about 32 million tons of crude oil in the amount of €13 billion in 2010.

However, the stores of hydrocarbon have also a negative impact on the state.

“Petrodollars conceal the problems,” believes associate professor of international law at the Caucasus (Kavkaz) University, Farhad Mehdiyev. “However, it is still a question, which sector can stand and which cannot, and makes the effectiveness of administration to weaken.”

According to the expert, another huge problem is the shortage of qualified employees in all spheres except petrochemical industry. Azerbaijan has capital, but has also a shortage in human resources, Mehdiyev added.