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CIAO DATE: 04/04

Armenia as a Factor of Balance in the Southern Caucasus Region

Aram Harutyunyan

February 2004

Austrian National Defense Academy

Abstract

The Southern Caucasus is a crucial region situated between Central Asia and Europe. Therefore, its political stability, security and economic development are important to the West. Rich in oil and gas, the region is certainly of great interest for the energy needs of the West. But on the other hand, ethnic and religious tensions and an increasingly impoverished and embittered populace make that the South Caucasus requires sustained attention from world policymakers over the next several decades.

In recent years, three main priorities, namely a) the build-up of a democracy with market principles, b) enhancing regional stability and security and c) the exploitation of oil and gas resources have drawn the world's attention towards the region. The growing awareness of the rich hydro-carbon resources in conjuncture with regional and internal conflicts have dragged the United States into a more active role in the Southern Caucasus. This external support is badly needed as the countries of the South Caucasus have limited resources to devote to the domestic, border security and law enforcement reforms that must be undertaken. The region will also need additional assistance on military training to prevent unexpected terrorist attacks and to create functioning, professional armies.

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