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11

The Caucasus Ecoregion stretches across the Greater

and Lesser Caucasus Mountains, running between

the Black and Caspian Seas and encompassing

part or all of six nations.

4

This unique region is

diverse in its culture, landscape and biodiversity. It

is recognized as one of the World Wide Fund for

Nature’s (WWF) top 35 “priority places”. With some

of the richest and most endangered biodiversity on

Earth, Conservation International classifies it as one

of the world’s 34 Biodiversity Hotspots (Zazanashvili

2012). The South Caucasus represents the central

part of this ecoregion, extending across Armenia,

Azerbaijan, and Georgia.

Following the collapse of the Soviet Union in 1991,

the economies of the three South Caucasus countries

experienced dramatic economic declines. Previously,

they were highly developed republics of the Soviet

Union but after the collapse of the USSR, they found

themselves with dilapidated industries and diminished

administrative infrastructure. Now the region has

grown in its importance, serving as a geopolitical

bridge between East and West. It serves as a transit

corridor for energy and benefits from the economic

opportunities associated with that. All three countries

have shown a significant macroeconomic recovery

and in 2014, gross domestic product reached US$ 10.8

billion in Armenia, US$ 75.2 billion in Azerbaijan, and

US$ 16.5 billion in Georgia (national statistics).

Despite encouraging economic signs in the

region, these are still fragile states that continue to

Introduction

undergo administrative reforms, suffer from the

unsustainable use of natural resources, and lack

economic diversification. The natural heritage of the

South Caucasus faces serious threats from increasing

human activities. Geopolitical tensions are also

Lake Sevan, Armenia

hampering the regional cooperation necessary for

environmental action and sustainable development.

Exacerbating these threats are the growing impacts

from climate change on the region.