Environment and Security: Transforming risks into cooperation

Eastern Caspian

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Environment and Security

The break-up of the Soviet Union introduced four new actors to the region: Azerbaijan, the Russian Federation, Kazakhstan and Turkmenistan. With Iran they all now border on the Caspian Sea. The legal status of bor- ders on the Caspian Sea and its shelf re- sources have been under negotiation ever since, accompanied by a build-up in military forces in the region. Over the last 25 years the Caspian has at- tracted increased global attention. The pres- ence of significant oil and gas deposits and the lack of thorough geological exploration before 1991 fuelled hopes of unproven re- serves capable of rivalling the Persian Gulf, according to the most optimistic estimates 9 . In a period of growing demand, and world- wide decline in oil and gas reserves and cor- respondingly high prices for hydrocarbon derivatives, these hopes have done much to encourage interest in the region, focusing in particular on the size of its hydrocarbon reserves, its geopolitical influence and the route taken by export pipelines. The transition from a planned to a market economy has built largely on the extrac- tion and export of hydrocarbon resources, a situation that is now changing the national importance of coastal areas, the structure of national economies and the livelihoods of people living in the region. The development of the oil and gas sector is also a challenge

for the distribution of wealth and benefits generated by this sector, and strengthens the dependence of the local economy and job market on the energy sector. The most vulnerable local communities, in addition to the crisis in the system as a whole, faced severe environmental prob- lems: the rise in the Caspian Sea level be- tween 1978 and 1996 flooded pasture and other land and destroyed infrastructure. Flooding also contributed to the salinization of the areas affected. Overfishing, pollution and the invasion of external species con- tributed to a significant drop in fishery out- put, while damage to water supply networks and interruption of service (in some cases regional networks crossing borders) led to lower drinking water availability and quality. Coastal provinces in the eastern Caspian became increasingly dependent on the sea for their water supply by desalination. Such challenges and in many instances hardships caused an overall reduction in the quality of life, especially in rural areas, prompting outward migration from such ar- eas. The declining biological resources of the sea combined with pollution, often inher- ited from the past, and recent environmental changes, made it increasingly difficult for the local population to live in a healthy environ- ment, produce food, and generate sufficient income outside of the energy sector.