Category Archives: economics

European Peace Dividends, 1713

The Republic of Pirates: Being the True and Surprising Story of the Caribbean Pirates and the Man Who Brought Them Down, by Colin Woodard (Mariner Books, 2008), Kindle Loc. 1212-1228:

WITH THE END of the War of the Spanish Succession in 1713, tens of thousands of sailors suddenly found themselves out of a job. The Royal Navy, bankrupted by the twelve-year-long world war, rapidly demobilized, mothballing ships and dumping nearly three-quarters of its manpower, over 36,000 men, in the first twenty-four months following the signing of the Peace of Utrecht. Privateering commissions ceased to have any value, their owners compelled to tie their warships up and turn the crews out onto the wharves of England and the Americas. With thousands of sailors begging for work in every port, merchant captains slashed wages by 50 percent; those lucky enough to find work had to survive on twenty-two to twenty-eight shillings (£1.1 to £1.4) a month.

Peace did not bring safety to those English sailors who found work in the West Indies. Spanish coast guard vessels, the guardas costas, continued to seize English vessels passing to and from Jamaica, declaring them smugglers if so much as a single Spanish coin were found aboard. They always found the “illicit” coins because they were the de facto currency of all of England’s Caribbean colonies. Thirty-eight Jamaican vessels were so seized in the first two years of peace, costing the vessel owners nearly £76,000. When the crews resisted, the guardas costas often killed a few in retribution; the rest spent months or years in Cuban prisons. “The seas,” the governor of Jamaica would later recall, had become “more dangerous than in time of war.”

As the months passed, the streets, taverns and boarding houses of Port Royal grew crowded with angry, destitute mariners. Merchants, stung by their losses, sent out fewer vessels, further reducing the number of jobs for sailors. Those sailors who had been captured—some more than once—were physically abused by the Spanish and financially pinched by their employers, who reduced their losses by not paying them for the time they were serving in prison. “Resentment and the want of employ,” one resident later recalled, “were certainly the motives to a course of life which I am of [the] opinion that most or many of them would not have taken up had they been redressed or could by any lawful mean have supported themselves.”

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Soviet Famine Humor, 1932

From The Invisible Writing, by Arthur Koestler (PFD Books, 2015), Kindle Loc. 844-882:

Officially the famine did not exist. It was only mentioned in the terms of veiled allusions to ‘difficulties on the collectivisation front’. Trudnesty—difficulties—is one of the most frequent words in Soviet parlance; it serves to minimise disasters in the same proportion as achievements are magnified. The Soviet citizen automatically understands that a ‘gigantic victory of the revolutionary forces in Britain’ means that the Communist Party has increased its vote by one half per cent, whereas ‘certain difficulties in the health situation in Birobidjan’ means that the cholera is raging in that province.

After a week, I had incorporated into my vocabulary some of the essential household words of Soviet life such as pyatiletka (the five year plan), komandirovka (official journey), propusk (permit), nachalnik (chief), remont (‘in repair’). I learnt that valuta (foreign currency) could buy one any otherwise unobtainable goods; that si-chass meant literally ‘at once’ but was in fact the equivalent of the Spanish mañana; that a kulturny choloveik, a ‘cultured person’ was one who did not spit and swear, who used a handkerchief, and could do sums without an abacus. I learnt that Soviet watches, gadgets and machines had to ‘go to remont’ every three months; I learnt to write on the coarse, grey sheets which served as writing paper, and to wash under a kind of samovar with a drip-tap, fixed to the wall. I learnt that no map or policeman could help you to find an address because all streets had new names but were called by their old ones; and that officials and employees were permanently being moved about the country as in a game of musical chairs. All this I learnt eagerly and with a great sense of exhilaration, for I knew that everything that annoyed me was the heritage of the past and everything that I liked a token of the future. Besides, I have always had a deep longing for the primeval chaos, a nostalgia for the apocalypse; and here I found myself in the middle of both.

One of my favourite pastimes was to walk through the streets trying to guess the meaning of the mysterious abbreviations by which every institution, office or shop, was called. Thus my co-operative store was called INSNAB; the organisation that looked after me, MORP; the Institute for which Alex worked, UFTI, which was a branch of NARKOMTASHPROM (People’s Commissariat for Heavy Industries), which depended on SOVNARKOM (the Government), and was controlled by GOSPLAN (the Government Planning Committee) jointly with the CKSP(B)CS (Central Committee of the Social Democratic Party, Bolshevist Fraction, of the Soviet Union). Most difficult to remember were the initials of my publishers in Kharkov because they were not in Russian but in Ukrainian. The abbreviation ran: URKDERSHNAZMENWYDAW, and meant: Ukrainian State Publishing Trust for National Minorities. The reason for this epidemic of initials was that enterprises could no longer be called after their proprietor or trade-name; it was a symptom of the depersonalisation so typical of Soviet life.

In trying to understand everyday life in a totalitarian state, one should beware of over-simplification. In the period preceding the murder of Kirov in 1934, which started the Terror, people in Russia did not live in permanent fear, but rather in a world of diffuse insecurity, of floating apprehension. An incautious remark did not, as a rule, entail immediate retribution. The citizen merely knew that his remark would remain on the record, and that the day might come, perhaps in a year, perhaps in ten years, when he would slip up on his job or get involved with a jealous woman or a neighbour coveting his flat, and on that day the G.P.U. would hold against him every dubious conversation and encounter of his past. In other words, the Soviet citizen was no more acutely frightened than a Catholic is of the Last Judgment—except that the G.P.U. operate this side of death, and that he had nowhere to turn for confession and absolution.

In 1932, it was still possible among intimate friends to pass on a joke that was politically off-colour. To understand the sample that follows, one must know that before he was exiled, Trotsky had advocated a harsh policy towards the peasants for the benefit of the industrial workers, whereas Bukharin had advocated concessions to the peasants at the expense of the workers. The story purports to list questions put to candidates for Party membership, and the correct answers thereto:

Question: What does it mean when there is food in the town but no food in the country?
Answer: A Left, Trotskyite deviation.

Question: What does it mean when there is food in the country but no food in the town?
Answer: A Right, Bukharinite deviation.

Question: What does it mean when there is no food in the country and no food in the town?
Answer: The correct application of the general line.

Question: And what does it mean when there is food both in the country and in the town?
Answer: The horrors of Capitalism.

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Central Asiatic Railway Towns, 1932

From The Invisible Writing, by Arthur Koestler (PFD Books, 2015), Kindle Loc. 1808-1830:

Soviet Central Asia was divided at that time into three Autonomous Republics: Turkmenistan, Uzbekistan and Tadzhikistan. Among these Turkmenistan is the most desolate. Its borders are the Caspian in the West, Persia and Afghanistan in the South, the Amu Darya in the East and the Autonomous Kazakh Republic in the North. It is approximately the size of Germany, but its population in 1932 was less than a million. Its surface is almost entirely desert, only habitable on its fringes, where sparse water-courses make irrigation possible. The chief product of the irrigated areas is cotton.

There are few towns. One cluster of oases lies in the North, round the mouth of the Amu Darya, where it flows into the Aral Sea. This is the former Khanat of Khiva, which in 1932 was still something of a Shangri-la, inaccessible from the South except by camel-caravans. The remaining towns are strung in a single line along the Central Asiatic Railway which skirts the Kapet Dagh hills along the Persian frontier. In spite of their picturesque names, these towns—Kizyl Arvat, Bakharden, Geok Tepe, Ashkhabad, Merv—are not oriental in character but typical Russian garrison-towns. In fact, the main feature of the towns of Turkmenistan was that they were not inhabited by Turkomans but by Russians—government officials, railway workers, soldiers, merchants, artisans and colonials; the natives were left to their semi-nomadic existence. The change only started with the industrial revolution under the Five-Year Plan. The new factories drew native labour into the towns, and the creation of a ‘class-conscious native industrial proletariat’ became a declared aim of Soviet policy in all national republics. Even so, in 1932 the Turkomans were still a minority in the towns of Turkmenistan, including Ashkhabad, the capital.

The result was a complete absence of local colour and local architecture in these Czarist garrison-towns which cover like pockmarks the noble face of Asia. The Bolsheviks completed the process which Russian Imperalism had begun. The aim of Czarist colonisation had been to keep the natives in their state of semi-barbarism and ignorance—at the time of the Revolution there were less than one per cent literates in Turkmenistan. The Communist régime took an apparently opposite line which in fact, however, completed the tragedy. The natives were drawn into the towns, educated, Russified and Stalinised by the pressure-cooker method. The children of the nomads were brought to school, processed, indoctrinated, and stripped of their national identity. All national tradition, folklore, arts and crafts, were eradicated by force and by propaganda. Everywhere in Asia primitive tribes and nations were transformed into a nondescript, colourless and amorphous mass of robots in the totalitarian State.

With two exceptions—old Bokhara and Samarkand—I have almost no visual memory of the places I visited in Central Asia. In retrospect, Krasnovodsk, Ashkhabad, Merv, Tashkent, all dissolve in the same uniform dreariness of the Russian provincial small-town, except that they were even poorer and drearier.

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From Books-internet to Television-internet

I’ve belatedly discovered that Persian-blogging pioneer Hossein Derakhshan (hoder.com) was released from prison in Tehran just over a year ago and has returned to book blogging in Persian. Last year he published a long essay on the Medium publishing platform titled “The Web We Have to Save: The rich, diverse, free web that I loved — and spent years in an Iranian jail for — is dying. Why is nobody stopping it?”

Here are excerpts from his essay about how the web has evolved:

Six years was a long time to be in jail, but it’s an entire era online. Writing on the internet itself had not changed, but reading — or, at least, getting things read — had altered dramatically. I’d been told how essential social networks had become while I’d been gone, and so I knew one thing: If I wanted to lure people to see my writing, I had to use social media now.

So I tried to post a link to one of my stories on Facebook. Turns out Facebook didn’t care much. It ended up looking like a boring classified ad. No description. No image. Nothing. It got three likes. Three! That was it.

It became clear to me, right there, that things had changed. I was not equipped to play on this new turf — all my investment and effort had burned up. I was devastated.

The hyperlink was my currency six years ago. Stemming from the idea of the hypertext, the hyperlink provided a diversity and decentralisation that the real world lacked. The hyperlink represented the open, interconnected spirit of the world wide web — a vision that started with its inventor, Tim Berners-Lee. The hyperlink was a way to abandon centralization — all the links, lines and hierarchies — and replace them with something more distributed, a system of nodes and networks.

Blogs gave form to that spirit of decentralization: They were windows into lives you’d rarely know much about; bridges that connected different lives to each other and thereby changed them. Blogs were cafes where people exchanged diverse ideas on any and every topic you could possibly be interested in. They were Tehran’s taxicabs writ large.

Since I got out of jail, though, I’ve realized how much the hyperlink has been devalued, almost made obsolete.

Nearly every social network now treats a link as just the same as it treats any other object — the same as a photo, or a piece of text — instead of seeing it as a way to make that text richer. You’re encouraged to post one single hyperlink and expose it to a quasi-democratic process of liking and plussing and hearting: Adding several links to a piece of text is usually not allowed. Hyperlinks are objectivized, isolated, stripped of their powers.

Some networks, like Twitter, treat hyperlinks a little better. Others, insecure social services, are far more paranoid. Instagram — owned by Facebook — doesn’t allow its audiences to leave whatsoever. You can put up a web address alongside your photos, but it won’t go anywhere. Lots of people start their daily online routine in these cul de sacs of social media, and their journeys end there. Many don’t even realize that they’re using the Internet’s infrastructure when they like an Instagram photograph or leave a comment on a friend’s Facebook video. It’s just an app.

But hyperlinks aren’t just the skeleton of the web: They are its eyes, a path to its soul. And a blind webpage, one without hyperlinks, can’t look or gaze at another webpage — and this has serious consequences for the dynamics of power on the web.

Even before I went to jail, though, the power of hyperlinks was being curbed. Its biggest enemy was a philosophy that combined two of the most dominant, and most overrated, values of our times: novelty and popularity, reflected by the real world dominance of young celebrities. That philosophy is the Stream.

The Stream now dominates the way people receive information on the web. Fewer users are directly checking dedicated webpages, instead getting fed by a never-ending flow of information that’s picked for them by complex –and secretive — algorithms.

The Stream means you don’t need to open so many websites any more. You don’t need numerous tabs. You don’t even need a web browser. You open Twitter or Facebook on your smartphone and dive deep in. The mountain has come to you. Algorithms have picked everything for you. According to what you or your friends have read or seen before, they predict what you might like to see. It feels great not to waste time in finding interesting things on so many websites.

But the scariest outcome of the centralization of information in the age of social networks is something else: It is making us all much less powerful in relation to governments and corporations.

Surveillance is increasingly imposed on civilized lives, and it just gets worse as time goes by.

In early 2000s writing blogs made you cool and trendy, then around 2008 Facebook came in and then Twitter. Since 2014 the hype is all about Instagram, and no one knows what is next. But the more I think about these changes, the more I realize that even all my concerns might have been misdirected. Perhaps I am worried about the wrong thing. Maybe it’s not the death of the hyperlink, or the centralization, exactly.

Maybe it’s that text itself is disappearing. After all, the first visitors to the web spent their time online reading web magazines. Then came blogs, then Facebook, then Twitter. Now it’s Facebook videos and Instagram and SnapChat that most people spend their time on. There’s less and less text to read on social networks, and more and more video to watch, more and more images to look at. Are we witnessing a decline of reading on the web in favor of watching and listening?

[T]he Stream, mobile applications, and moving images: They all show a departure from a books-internet toward a television-internet. We seem to have gone from a non-linear mode of communication — nodes and networks and links — toward a linear one, with centralization and hierarchies.

The web was not envisioned as a form of television when it was invented. But, like it or not, it is rapidly resembling TV: linear, passive, programmed and inward-looking.

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South Caucasus Just Waiting for Europe?

From Caucasus: An Introduction, by Thomas de Waal (Oxford U. Press, 2010), Kindle Loc. 4017-4050:

It seems an almost inbuilt problem of the South Caucasus that a positive development in one place causes alarm in another. Armenian-Turkish rapprochement angers Azerbaijan, which turns to Moscow. The “reset” American-Russian relationship is seen to damage Georgia. As soon as there was talk of the Armenian-Turkish border reopening, some Georgians were heard to worry aloud that the rerouting of trade would be bad for Georgia. Zero-sum thinking prevails.

The region suffers from a lack of inclusive thinking. Most of the big ideas and regional initiatives that have emerged in the last decade and a half have excluded either one of the South Caucasus countries themselves or a key outside power. Both Iran and Turkey have proposed “security pacts” for the Caucasus that have left out the United States and the European Union. The Commonwealth of Independent States is now without Georgia. GUAM excluded Armenia. For awhile, Moscow unsuccessfully promoted the idea of a “Caucasus Four” that included it and the three South Caucasus countries. Concentrating on a “Black Sea region” is to the detriment of Azerbaijan. Focusing on the Caspian leaves out Armenia. The metaphor of a “Silk Road,” pretty though it is, implies a return to a premodern world in which Russia did not exist. The idea of a “Great Game” unhelpfully casts Russia in a reprised role of a hostile nineteen-century power.

History has meant that there have never been any successful voluntary integration projects here. The plan for an independent Transcaucasian Federation in April 1918 collapsed after only a month. The only other unions have been colonial ones imposed from above, by the Persian, Ottoman, and Russian empires and by the Soviet Union. The Soviet project is hard to defend, but it did have the effect of bringing people together in a cohesive economic structure that many people still miss. In retrospect, the South Caucasian nationalists of the late 1980s lurched from one extreme to another when they took a bulldozer to the complex Soviet system. They exchanged suffocating integration for extreme disintegration, and you could say that they threw out the Caucasian baby with the Communist bathwater. Many of the economic and cultural links from those times are still there under the surface waiting to be reexploited.

The one neighbor that could be a facilitator for voluntary integration in the South Caucasus is the region that has itself accomplished such an integration, the EU. So far, unfortunately, the EU has been very slow to act in the region. One Georgian scholar says it is “too lazy and too late.” Most of its regional projects have been very modest. Transport Corridor Europe Caucasus Asia, a European program started in 1993 for the eight countries of Central Asia and the South Caucasus, has spent less than 200 million euros since then—far less than BP, Gazprom, or USAID has spent in the region, to name three other foreign actors. The Eastern Partnership project is another laudable idea but is hampered by several constraints; the six countries involved have no membership perspective for the EU, which does not provide a strong incentive for reform. Promises of trade privileges and visa facilitation are more promising but have been watered down by European governments.

There is a widespread perception in the South Caucasus that it is “waiting for Europe” to notice its problems and pay attention to them. In the EU itself, there is caution. Partly, the EU has enough other problems to solve without having to deal with the headaches of the Caucasus. Partly, there is a perception that the governments of Armenia, Azerbaijan, and Georgia need to show a stronger commitment to democracy and reform to deserve that stronger interest. So the current period may be one of less engagement and greater realism. If that is the case, it may not be all bad news. History has been unkind to the South Caucasus, but there is no shortage of experience or talent there. If the outsider powers step a bit further away, local people may remember that they also have the skills, fashioned by the centuries, to solve their own problems.

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Rise and Fall of Baku as Oil Capital

From Caucasus: An Introduction, by Thomas de Waal (Oxford U. Press, 2010), Kindle Loc. 2945-2989:

Oil was first exploited commercially in the mid-nineteenth century. The industry took off in 1871 when the Russian government allowed in private enterprise and the first wells were drilled. Two of the Swedish Nobel brothers, Robert and Ludwig, invested in the new industry and by the end of the decade had the biggest refinery in Baku and were shipping barrels of oil across the Caspian Sea to the Russian port of Astrakhan in the world’s first oil tanker, the Zoroaster. By the 1880s, oil fields such as Balakhany had sprouted hundreds of brick wells extracting the oil from the ground, and Baku’s new northern industrial suburb was nicknamed the Black Town because of the clouds of dark oil smoke hanging over it from two hundred refineries. In one generation, Baku turned from a forgotten desert citadel into a modern metropolis. The population skyrocketed from 14,000 in 1863 to 206,000 forty years later. “Baku is greater than any other oil city in the world. If oil is king, Baku is its throne,” wrote the British author J. D. Henry in 1905. You could become a millionaire literally overnight if an “oil gusher” appeared on your land. One man who got lucky was Haji Zeynalabdin Tagiev, the illiterate son of a shoemaker, who turned into one of Baku’s most famous businessmen and benefactors after a gusher appeared on his land. Tagiev was unusual in being a native Azeri. Most of the businessmen were European, Russian, or Armenian. Tensions between Armenian bourgeoisie and Azeri workers were an underlying cause of the brutal “Tatar-Armenian” war in Baku in 1905 in which hundreds were killed and thousands of oil wells destroyed.

Henry asked rhetorically, “Why is Baku rich? The answer is simple—because it produces a commodity which has a market wider than the civilised world, for it is carried on camels into the innermost parts of the Asian Continent, and on yaks into the wild regions of the Himalayas.” But camels and yaks were insufficient to export a major new world community to the wider world. Baku faced the same problem as it would a century later—how to export the oil from the land-locked Caspian basin to consumers. In the 1870s, the geography of the Caucasus was such a barrier that Tiflis imported more American kerosene by ship than it did Baku oil. The Caspian Sea was stormy and dangerous for several months of the year, limiting how much could be sent to Russia. So in 1883 the new oilmen, with financing from the Rothschild family, built the first cross-Caucasian railway from Baku to Batum on the Black Sea. In 1906, Baku oil made another leap forward when the world’s longest “kerosene pipeline” was completed, running for 519 miles along the same route to Batum.

In the years 1914–21, oil wealth was a major factor in the international scramble for the Caucasus. In 1918, German commander Erich von Ludendorff saw Azerbaijani oil and its route via Georgia as a key reason to move into the South Caucasus. In the end, the British took control of Baku, and in 1919 British foreign secretary Arthur Balfour identified its oil as Britain’s major priority in the region. He said, “I should say we are not going to spend all our money and men in civilizing a few people who do not want to be civilized. We will protect Batum, Baku, the railway between them and the pipe-line.” When the British had gone, the oil-starved Bolsheviks made Baku their first target in the Transcaucasus. Having captured the city in April 1920, Trotsky declared that the new oil resources would win the Reds the Civil War and would be “our hope for restoring the economy, for ensuring that old men and women and children do not die of cold in Moscow.”

Only in the late 1920s did Baku oil production climb back to its prewar levels, but in 1941 Baku was vital to Stalin’s war effort against Germany and produced around three-quarters of the Soviet Union’s oil. When Hitler’s Germany invaded the Soviet Union, the Germans again identified Baku oil as a vital asset. In August 1942, the Germans occupied the western side of the North Caucasus and planned a push south to Azerbaijan. Saying “Unless we get the Baku oil, the war is lost,” Hitler diverted divisions away from the battle for Stalingrad toward the Caucasus. That summer, Hitler’s staff famously had a cake made for him that had the shape of the Caspian Sea in the middle. Film footage shows a delighted Hitler taking a slice of the cake, which had the letters B-A-K-U written on it in white icing and chocolate made to look like oil spooned over it.

The debacle at Stalingrad in the winter of 1942–43 meant that Germany never invaded the South Caucasus, but even the threat of attack was a death-sentence for the Baku oil industry. Stalin, who knew the Baku oil fields from his revolutionary days of 1905, had the oil wells shut down so they would not fall into German hands. Almost the entire Azerbaijani oil industry and its experts were transferred to the oil wells of the Volga and the Urals. After the war, Russia’s oil fields received the major investment, and Azerbaijan suffered. The on-land fields had dried up, and in order to reach the trickier offshore fields, a small town named Oily Rocks was built thirty miles out in the sea—reached across a causeway built on sunken ships. Cramped and polluted, Oily Rocks eked out what could still be drilled of Azerbaijan’s oil within the capacity of Soviet technology. But increasingly, the existing expertise was not up to the challenge. By the time the Soviet Union ended, Azerbaijan was producing only 3 percent of the Soviet oil output.

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Origins of Georgia in Russia

From Caucasus: An Introduction, by Thomas de Waal (Oxford U. Press, 2010), Kindle Loc. 638-643, 826-852:

The different parts of Georgia only came together in the nineteenth century with Russian rule, the coming of the railways, and a generation of patriotic intellectuals keen to foster a new national consciousness. The churches of the Golden Age, the rediscovery of ancient manuscripts, and the poetry of Shota Rustaveli were important cultural treasures in this process of national reinvention and discovery. The dilemma has been that anyone seeking to forge, or reforge, a “Georgian national identity” does so at the risk of suppressing the country’s great natural diversity. President Mikheil Saakashvili has faced this challenge as he has sought to build a modern Georgian state out of the country weakened by centrifugal tendencies he inherited in 2004.

Tiflis (officially called by its Georgian name Tbilisi only in the twentieth century) had long been the largest city in the region. When King David IV reconquered the town from the Arabs in 1122, he invited Armenian traders and artisans to settle there, and they became its largest community. For centuries the Armenians ran the city, as Georgians tended to be either rural nobility or peasantry. After the Russian takeover in 1801, Tiflis became the seat of imperial rule. In the 1840s, Prince Vorontsov finally cleared away the last ruins of the 1795 Iranian assault and transformed the main part of the city into a European-style capital. He laid out a new central boulevard that became the main artery of the city.

The first theatre and public library were built; newspapers were opened. The viceroy invited an Italian opera company to come and perform Rossini, Bellini, and Donizetti and was pleased to hear them instead of the “semi-barbarous sounds of Persian music” that had filled the town a few years earlier.

In 1899, Tiflis had 172,000 inhabitants. Armenians were just over a third of the population; Georgians and Russians each formed a quarter. The remainder included Ossetians, Azerbaijani “Tatars,” Persians, Greeks, Poles, Germans, and Jews. Caucasian towns were not melting pots, and each community had separate places of worship, different holidays, and special trades. The Armenians dominated business, trade, and municipal government, running the hotels, restaurants, cafes and taverns, wineshops and caravanserais. Wardrop said the Armenians were called “Shylocks” and like the Jews were disliked by other ethnic groups for their alleged sharp practices: “A local proverb says ‘A Greek will cheat three Jews, but an Armenian will cheat three Greeks.’” This kind of racial stereotyping caused tensions between Armenians and Georgians but generally did not spill over into street violence.

The same was not true in the other major city of the Caucasus, Baku. Here, social and political tensions eventually caused mass bloodshed. Situated on a peninsular overlooking the Caspian Sea, Baku was a small ancient desert fortress, home to a powerful dynasty, the Shirvanshahs, in the Middle Ages. The commercial exploitation of its oil wells in the 1870s changed it virtually overnight into the world’s foremost oil city. In 1883, the British writer Charles Marvin noted, “what was ten years ago a sleepy Persian town is to-day a thriving city. There is more building activity visible at Baku than in any other place in the Russian Empire.” Old houses were being pulled down while the “wretched booths of the Persians were being replaced by spacious Russian shops.” As in Tiflis, Armenians had a leading role in both business and municipal government, while tens of thousands of Muslim peasants, many from Iran, immigrated to earn a wage in the oil fields.

The third main urban center of the region, the Black Sea city of Batum (called by its Georgian name Batumi after 1936), became the Caucasus’s window on the world after the Russian takeover in 1878. Within a generation, it had a string of foreign consulates and a British yacht club and cricket pitch. Again, this all depended on Baku oil, sent to Batum first by railway and then through the world’s first oil pipeline. It was refined in a factory built by the Rothschilds—to which the young Stalin set fire in 1903. Like Baku, although smaller (its population in 1897 was twenty-eight thousand), it was a place of commerce and intrigue.

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