Navigating the Crossroads: The EBRD Conference in Yerevan and the Shifting Geopolitical Sands of Armenia

Prof. Joseph Shahbazian
In a convergence of geopolitical tides and economic discourse, the European Bank for
Reconstruction and Development (EBRD) orchestrated a seminal conference in the historic city of
Yerevan, Armenia from May 14-16th. Against the backdrop of the partial removal of Russian troops
from Armenian territory, this gathering served as a crucible for probing the intricate interplay
between neoliberal economic doctrine, globalization imperatives, and the geopolitical chessboard of
the South Caucasus region.
The EBRD, an institution ostensibly dedicated to fostering post-Soviet economies towards
market-oriented reforms, found itself at a crossroads as delegates from across the globe convened to
scrutinize its role in shaping economic development. While the bank has long espoused the virtues
of neoliberal policies – deregulation, privatization, and marketization – the partial withdrawal of
Russian troops cast a sobering light on the geopolitical undercurrents that inform its operations.
The EBRD, serving as a vanguard of neoliberal orthodoxy, has long championed these
policies as pathways to economic prosperity and global integration. However, the event in
Armenian territory provides a stark reminder of the geopolitical dimensions that underpin the
EBRD’s operations.
Armenia, with its tumultuous history of Soviet influence and geopolitical maneuvering,
provided a poignant backdrop for these deliberations. For decades, the presence of Russian troops
on Armenian soil had been emblematic of the country’s strategic alignment with Moscow, a
relationship that intersected with its economic trajectory in profound ways. As the troops withdrew,
questions abounded about Armenia’s geopolitical recalibration and the implications for its
relationship with regional power dynamics.
At the heart of the conference lay a critical examination of neoliberalism – an economic
ideology that has underpinned the EBRD’s operations since its inception. While proponents tout
neoliberal policies as catalysts for economic growth and global integration, critics highlight their
role in exacerbating inequalities and vulnerabilities, particularly in transitioning economies like
Armenia. The withdrawal of Russian troops served as a catalyst for reevaluating the balance
between economic imperatives and geopolitical exigencies.
Moreover, the conference provides a platform for grappling with the complexities of
globalization – a phenomenon propelled by institutions like the EBRD. While globalization
promises economic interdependence and cross-border investment, its consequences are often
unevenly distributed, with marginalized communities bearing the brunt of economic dislocation. As
Armenia contemplates its place in the global economy, the current events in the country raised
questions about the country’s vulnerability to geopolitical shocks and the need for a more nuanced
approach to economic development.
As the conference unfolds, divergent perspectives emerges on the path forward for Armenia.
Some viewed the partial removal of Russian troops as an opportunity for the country to assert its
sovereignty and diversify its economic partnerships. Others expressed concerns about Armenia’s
geopolitical isolation and the potential repercussions for its economic stability. Against this
backdrop, the EBRD found itself at a crossroads, grappling with the tension between its neoliberal
mandate and the geopolitical realities of the region.
In the crucible of Yerevan, amidst the convergence of economic discourse and geopolitical
realities, the EBRD conference serves as a microcosm of the challenges facing Armenia and other
transitioning economies.
As the country navigates the shifting sands of geopolitics and globalization, a landscape
fraught with uncertainty, the lessons gleaned from the conference will serve as a testament to the
interconnectedness of economic and geopolitical forces – forces that will shape the country’s future
trajectory in ways both profound and unpredictable.