Azerbaijan - Where is it? The Answer!

Well, I am back on the blog and have returned to the subject of Azerbaijan. I have now been working here for 10 and a half months and still enjoying my time here. Next week we shall be moving to a new apartment in downtown Baku and looking forward to that. Right, just recently there has been some confusion in various media and in local newspapers about the Caucasus and Azerbaijan - it's specifically about where it is and its relation to neighbouring countries.
Obviously I know where it is but I decided to do a Google search and see where other websites pinpointed the country. Shown below are some examples with the location in brackets ( ).

True Knowledge - www.trueknowledge.com - (Asia)

Wikipedia - www.wikipedia.org - (Eurasia)

Wikitravel - www.wikitravel.org - (Europe or Asia) -not sure!

Nato - www.nato.int - (Europe)

Contractors Unlimited - www.contractorsunlimited.com - ????

Juggle - www.juggle.com - (Eurasia)

Capial of - www.capital-of.com - (Europe)

Travelling Luck - www.travellingluck.com - (Southwestern Asia)

Confused? Well, let me put you out of your misery once and for all. Whilst doing further research I came across old faithful, the about.com website. Somehow I knew that if I kept digging enough I'd come to a definitive answer to the question: just where is Azerbaijan officially locted?

I will hand you over to the person of Matt Rosenburg at About.com Guide, who writes:

"I was asked today why I list Georgia, Armenia, and Azerbaijan as Asian countries while some other websites list them as European countries. My answer was as follows... There’s no official definition of the boundary between Asia and Europe (nor between any continent for that matter) so the boundaries are merely traditional. The Caucasus Mountains have traditionally divided the two continents and these three countries are to the south of that boundary. I also feel that it is more appropriate to place these countries in Asia because all of Turkey east of Istanbul is customarily considered Asia and certainly their neighbor to the south, Iran, is an Asian country."

Well, Azerbaijan is, when going by physical boundaries, an Asian country. So, I am accepting it as such because when you think about it logically, Azerbaijan was part of the Soviet Union and it was classified as part of Asia. So, I am afraid Azerbaijan cannot characterise itself as European - but then it did win the Eurovision Song contest earlier this year! Still confused?

Are You Afraid of Investing Your Money?

The previous blog was aimed at those who are contemplating life as an expat. This blog is dedicated to those well-heeled (hopefully) veterans of the suitcase, airport waiting lounge, visa hang-ups and dodgy taxi drivers. What is an expat veteran? For me, he/she has to have at least 15 years of experience as an expatriate under the belt. So, bearing that in mind, we’re talking people who have built up a palpable nest egg over the years. They have money to spend, perhaps who’ve gone on lavish vacations, aren’t afraid to invest in a decent wardrobe of accoutrements, and change out the automobile every couple of years. But underlying much of this ostentatiousness can be a fear of investing.

The fear of losing money is the main reason a huge percentage of the public struggles financially. But fear isn’t the real problem. It’s how people handle fear that matters. The much-celebrated investor, Robert Kiyosaki, tells us that the primary difference between rich people and poor people is how they handle the fear of losing money. Some people, when hit with a financial loss, give up. Others transform the loss into a win. As John D. Rockefeller said, “I always tried to turn every disaster into an opportunity.” Losers are defeated by failure. Winners are inspired by it. And I must confess to having come across many winners in my travels abroad. It’s very much like a game of chess; it’s 95% in the mind and 5% in making the move!

As mentioned above, many expats do tend to go over the top with buying big houses and posh cars rather than big investments. This is down partly to the fact that the vast majority of expats are contract workers who work from one job to the next - they enjoy the money so much that they get caught up in the ‘expat trap.’ Their overheads (and debts) force them into working abroad chasing the higher salaries to keep their ‘heads above water’.

Kiyosaki goes on to say that, “The primary difference between rich people and poor people is how they handle fear.” From my own point of view, the best way out of this fear of investments and, to a certain extent, the fear of money, is to diversify. Having a financial plan for security and comfort first are important. But if you have any desire to become rich, or just simply better off, then diversify. Better you put a lot of eggs in a few baskets rather than putting a few eggs in many.

As a one-time successful sports trader, I took the attitude that if the prospect of failure inspires you to fight and win, maybe you should challenge yourself to change your financial habits. Educate yourself and take some financial risks. The more education you have, the less risk there will be. It’s all down to market research. People in general are just too lazy to be bothered with investment diversification tending to keep their money in banks and building societies. I should point out that as I write this blog the Bank of England interest rate is stagnating at 0.5%. Nothing is going to fall onto your lap. You’ve got to work for it and when you do, the burden of fear will disappear by itself. The fact that the banks are paying such a low rate should be enough to strip off the vest of fear and invest prudently and diligently.

One should start with investing in mutual funds and unit investment trust funds (check it out here: http://fitzvillafuerte.com/mutual-funds-and-unit-investment-trust-funds-whats-the-difference.html) and then move on to a riskier type of investment – the stock market. If you start buying and selling stocks, then you might want to progress into Forex (foreign exchange) trading. And for those who are approaching retirement, and assuming you are of that ilk, you might want to contemplate moving into the hospitality industries: pubs, bars, restaurants, eateries, small hotels/motels or guest houses.

But, as I hopefully have explained clearly, it is all about overcoming one’s fears of investing your hard-earned cash to secure one’s future security and lifestyle.

You can be young without money but you can't be old without it.
Tennessee Williams

So You Wanna be an Expat?

Here are the pluses and the minuses . . .
Are you cut out to be an expat? Expat, in case of those who came into this world from a foreign planet, is short for ‘expatriate’. Expatriates are those fine breeds of bohemian spirits who decide to work in foreign climes. And it has been my experience of the expat life that you’re either suited to it or you are not.

I recall back in mid-1980 when I was working in Saudi Arabia, our flight landed sometime around 8:00pm – it was dark and as always the heat seemed to wrap itself around you like an electric blanket as soon as you stepped out of the plane. Anyway, we moved into the immigration area, and formed orderly queues to have our passports and visas checked. Behind me was this petulant, crabby Brit who, after listening to his diatribe of discontent for the previous 15 minutes, was entering the Middle East for the first time; in fact it was his first working trip abroad. To cut a long story short, and such was the utter disdain he had for the Saudi immigration process, that he decided there and then that he was gonna try and get the return flight back to Heathrow that very night. He had only been in Saudi less than an hour but he’d had enough! He hated the place!

Okay, this is an extreme case of a budding expat who obviously wasn’t of the mindset to face working abroad and who obviously did not do his homework before leaving Blighty. But remember, this was 1980, and back then there was no Internet, no e-mail, no SMS texts, in fact very little resources to check. So, to a certain extent, one was taking an even bigger gamble back in the 80s – you were either suited to life abroad or you weren’t.

The Pluses

So why the expat life – or not? Well, there is one simple common denominator when it comes to working overseas for a living: money, tax-free money. Let’s face it, if we were not coining in two, three or four times our salary back home, tax-free, then there would be no reason to go abroad. It’s a simple as that. So, let us put money as the Numero Uno – Number One - the Big Plus. The following positives about working abroad are deemed the same whether you are on single or married status.

The next three pluses, although not in any particular order are: free flights, free accommodation and transport. With the latter, this might come by way of a monetary allowance paid monthly, or a yearly one-off payment. Added to this, some, but not all, contracts come with a per diem, a daily living allowance. As I write this blog, a decent per diem for a single status contract would be in the region of $35 – 50 per day. If you are on a married status contract with children, then perhaps the kids’ school fees will be paid. And last but not least, you are always covered by medical insurance.

Outwith the financial side of things, other pluses are the wherewithal to indulge in new cultures, meeting the locals, learning a new language and exploring the countryside. And if your expat contract takes you to say, Singapore, well you have at your disposal a richness and diversity of cultures, conventions and lifestyles that will both thrill and amaze you!

The Minuses

Okay, so what negatives should the fledgling expat be apprehensive of? Well, it depends where one ventures. It’s been my experience that there are the ‘good contracts’ and the ‘bad contracts’; if you are lucky enough to end up in Dubai working for a bank or real estate agency on single status, then the world’s your oyster: bars, discos, classy females, great eating joints, fabulous shopping. However, should you be offered a single status contract working in a remote training centre as an Instructor in deepest Nigeria, well you are entering a different world.

Ask any expat what is the biggest downside to working abroad and most, to a man (or woman), will tell you being away from family and friends and if you are married, your wife or husband (although this is not always the case)! Irrespective of your age, this is always the biggest inconvenience or stumbling block to moving abroad. Again it would depend on your marital status and home life.

Location, location, location, a mantra touted by the estate agents when buying your first property. As with buying your first or next property, deciding on your first contract location can be daunting. These days you can pop onto the Internet and do all your own research – there are countless expat websites with which to consult. But I can tell you for sure, even this cannot prepare you for the culture shock, as you step off the plane in a foreign land to take up your first expat contract. You see you have not arrived in your new country for a two-week holiday, you are here to work for a living come Hell or high water!

So, the potential bad bits? If you are moving to a warm climate: the Middle East, S.E. Asia, sub-Saharan Africa or South America, you’re either gonna love it or loath it. Unfortunately, many of us Brits just cannot hack the kind of heat and roasting climates of, say, the Middle East. If you end up in S.E. Asia, Indonesia for instance, you have a medley of mosquitoes facing you 24/7, swarms of flies to put up with, and a mind-boggling potpourri of every kind of insect known to man.

Then maybe the workplace isn’t all that it was cracked up to be. The penthouse flat turns out to be a basement apartment in a crumbling tenement block in the worst area of the city. The transport allowance promised when you signed the contract turns out to be a ‘personal driver’ who takes you to work and back every day. The per diem doesn’t cover your daily costs. And I can add a personal word of warning here – food and other costs in many of the expat hotspots around the world are going through the roof. There was a time when it was cheap for an expat to live abroad – not any more.

There can be language barriers. For instance, here in Azerbaijan, outside of the oil industry, very few Azeris speak English and this has been and can be an on-going problem. When it comes to the social side, if it simply doesn’t exist and there are few expats of your own nationality, then life can be difficult. Part of the expat life is gelling with other expats and building a community spirit but, if you are posted on a project in the Rub al Khali desert of central Saudi Arabia, you just are not going to have a social life.

Last but not least, there are your working conditions. After your living conditions, if these are not healthy and congenial, then you will find yourself slowly slipping down the ladder of despondency. And one must always remember, you are having to commingle and integrate with, not only the local workforce, but other Western expats and sometimes this can bring unforeseen pressures.

A Word to the Wise

When deciding on the expat life I would simply ask yourself this question: do I have the motivation and the desire to further my career and provide for my and my family’s future by leaving home and work abroad. If you can definitely answer in the affirmative, then go for it. Embrace the expat life and put up with the inevitable frustrations and move forward. On the other hand, if you have the smallest doubt about what you are doing then better to stay at home. To pack up your bags and take up the expat life is a bit like having a flutter on the horses; it can be a big gamble but as long as you latch on to a firm favourite, then your quid’s in - take your winnings and run!

Libya - Then and Now

It would seem that the whole world is waiting in anticipation for the downfall of that tyrant and military dictator, Colonel Muammar Muhammad al-Gaddafi, a man who has ruled with an iron fist the North African state for 41 years.

But this blog is not really about him but my reminiscences about Libya. It was around November 1985 when my contract with Huffco Indonesia came to a premature end. Working in Badak Gas Plant in East Kalimantan, Indonesia, was one of the most memorable experiences of my life. The money was great, a fantastic job with friendly colleagues (Overseas Technical Service), a great social life and the climate, amazing. But all good things come to an end. It was when I arrived at my hotel in Singapore, where I would spend the night, before catching a flight back to London Heathrow the next morning, that I was handed a telegram at the hotel reception. And it was? My next assignment; a one year contract in Libya!

I recall flying back on that flight to the UK and wondering what it would be like in Libya. And it seemed just like days before I would be boarding a plane to Tripoli two weeks later to take up my new assignment. Me and my colleague would initially be based in a hotel in Benghazi before flying down to the Sarir oil field where most of our work would take place.

My initial perceptions of Benghazi, which was reflected throughout Libya during this time, was a society and infrastructure in dire need of repair and rejuvenation. Most of the shops were half-empty, supermarket shelves sparse, streets strewn with garbage, crumbling buildings, and innumerable motor vehicles just seemingly several days away from the scrap heap. Even back then, when Libya was a distinguished oil producer, I often wondered, “where has all this oil wealth gone?” Answer? Well, not into the pockets of the people.

So I did my first trip of six weeks and then back home for two. It was sometime during my next working trip that there were rumours that America was planning bombing Libya for a myriad of reasons, mostly to do with funding terrorist organisations. However, it wasn’t until the 5 April 1986, when Libyan agents bombed "La Belle" nightclub in West Berlin, killing three people and injuring 229 people who were spending the evening there, that the U.S. decided to act. West Germany and the United States obtained cable transcripts from Libyan agents in East Germany who were involved in the attack.

I flew back to the UK during the last week in March - my colleague came up from Sarir to stay in the hotel in Benghazi - there was much paperwork to sort out befoe he went on leave in mid-April. I was sat having my dinner one evening, which must have been April 14, and watched news footage of American fighter bombers returning to their UK bases after bombing Tripoli and Benghazi. I recall the doom and gloom, fearing for the worst, and I was due to fly back to Tripoli several days later. Anyway word soon got out that there would be no more air strikes unless Gadaffi did something stupid. He never did. So, my company gave me the go-ahead to return to Libya. I will never forget getting off the plane at Tripoli airport. One couldn’t get moving for stern-faced security guards and dozens of armed troops patrolling every quarter of the airport.

Security guards and even local Libyans looked at us (mostly British oil workers) with disdain. They knew we weren’t American because Americans were banned from working in Libya. So they figured we were British and here the problem was because Maggie Thatcher gave Ronald Reagan the go-ahead to use British airbases for the attacks on Libya.

So getting through the airport was one of the scarriest of experiences but once outside, our driver was there to pick us up and drive us to Benghazi. It was then that many of us decided that the time was right to get out of that country.

And here we are, mid-August 2011, and what for Libya now? Watch out for another post soon, when things die down a bit.

So You Need an Azerbaijan Visa?

As most Europeans know, Azerbaijan won the Eurovision Song Contest last month. Okay, it wasn't the World Cup, nor was it the Euro Champions' League, but at least it put the country on the map. So, from what I gather, the country is going to be investing big money in the hosting of the song contest, what with upgrading the airport (which is pretty dire to be honest) and beefing up the city's infrastructure. However, this oil-rich state is going to have to do something about its mixed-up, archaic visa processing procedures.

Just before I arrived here back in November 2010 Azerbaijan had just recently changed its visa regulations for non-ex-CIS state citizens, meaning Europe, Britain, the Americas and the rest of the world. When I enquired as to why the change, no-body could answer this simple question. It is still to be answered. Anyway, I got my work visa and then started the process of acquiring visas for my wife and daughter. This process started in late December 2010 and, exactly 16 weeks later, their visas eventually came through - I'll repeat that, 16 weeks!

Okay, this is not the time or place to delve into what was a morass in terms of dealing with the Azeri embassy in London, but I feel it is warranted to report on where this country stands with issuing visas. There was an attempt earlier this month (June 2011) to introduce an e-visa system but this great innovation fell apart. It was discovered that nobody at the Azeri Embassy in London new what was happening and that nobody knew how long it would take to resolve the problem.

The authorities have made it clear that they want to attract more tourists to Azerbaijan; in fact they have named 2011, The Year of Tourism. But there's one main problem with this, to get a visitor's visa to enter the country, you need a LOI, a Letter of Invitation. But wait for it . . . this will set you back 400 manats (about £450.00), and this is a cost you won't read about on Internet websites. So be warned. Now, should you go ahead with this extravagant cost, here is another warning. The LOI only lasts for 30 days. Now, should there be some disruption in processing the LOI, and it runs over 30 days, then you will require another one and that will cost you another 400 manats.

So, unless you are coming here to work, in which case your company will take care of everything, then think twice and good luck!

Eurovision Song Contest - and the Winner is?

Azerbaijan! Who - where? I hear you say. I did not see the Eurovision Song Contest here in Azerbaijan as I had more important things to do and, looking back over the years, this awful mockery of the music genre has left me stone cold and feeling totally desparate for the human race. Let's put it this way, it's not on my favourite top 1000 TV programme listings.

I actually heard the news the next day while watching BBC World television. I must admit, I was astounded, in that I thought Azerbaijan, one of the least sexier countries in the West (is it in the West?) to win such a competition. So I will take my hat off to Ell and Nikki for a brash, nippy performance which I glimpsed on some Azeri television programme. But, let’s get real - this is the Eurovision Song Contest - a cornucopia of garishness, tastelessness and musical destitution. If you win this competition, where do you go from there? Did anyone, the day before the competition, remember last year’s winner? Did anyone even know what country hosted last year's competition? On both counts, I scored zero!

And anyway how can one call this the Eurovision Song Contest when they allow Israel to take part? Israel is firmly a Middle Eastern country. Russia, correct me if I’m wrong, is in Asia, so why was it in the contest? It is my understanding that those other two Caucasian countries, Georgia and Armenia are NOT European, yet they took part.

So admitting these countries just makes a bigger mockery of what is already a banal event, embarassing to watch, hazardous to the ear.

I will end with a quote from Eldar, the male vocalist of the duo, who said backstage later: "We want to bring Europe together with our song." Well, Eldar, if you wanna bring ‘Europe’ together, then you’d better start by getting your country to sort out your problems with Georgia and Armenia, but specifically the enclave of Nagorno-Karabakh. This daft stand-off has been going on for 23 years with no signs of abating.

But as a Britsh expat living and working in Baku, I feel the winning of this competition will bring some cheer to a city that has witnessed several ugly anti-government demonstrations of late.

As per the Eurovision custom, the winner of the current year’s contest is invited to host the following year's - so will I be going? The answer? Nyet! (No!)

North Africa - Middle East Unrest

Regarding Libya - well I saw this coming many years ago in the early part of 1986. I had been working in Libya at a refinery in the Sirir oilfield, smack dab in the centre of Libya. Even back then, I heard rumours that the people hated Gaddafi and that he did nothing to help them, instead spreading the wealth amongst old cronies and other entities loyal to him. Even some ‘intellectuals’, middle-class petroleum professionals, echoed the same opinion of the hated dictator, but retained a ‘noble silence’ when it came to any criticism of their leader. Libya even back then was a human timebomb ready to go off at any minute. And yet here we are, a quarter of a century later, and the people have revolted against this weird, repulsive maniac. The thing is, is civil war around the corner?

Well, Tunisia has been liberated from the tyrant, Ben Ali and Hosni Mubarak has been deposed. The question about the latter is, where has he fled? Some news reports tell of him being accepted by the Saudi regime. If that is true, then does that not put the Saudi royal family on a par with him? Answer? Yes!

If one looks at the other Gulf countries: Kuwait, Qatar, Bahrain, Oman and the UAE, one can see similar trends to that of their North African counterparts: unelected, undemocratic regimes ruled by sheiks, princes and sultans. But even in the most lauded Abu Dhabi, a report in 2009 describes Issa bin Zayed al Nahyan, the half-brother of the Manchester City owner, Mansour bin Zayed al Nahyan, participating in the torture of an Afghan grain dealer with whom he had had a disagreement. That’s just one instance of how these rulers - although I call them dictators - suppress the people and treat many like shit!

In the past four years I have worked on short-term contracts in Kuwait, Qatar and Oman, and have visited Bahrain twice. Although Qatar, Oman and Bahrain could be said to be more liberal societies to that of Kuwait and Saudi Arabia, one still senses an undercurrent of unrest. Before coming here to Azerbaijan to work, I did an extended contract in Oman. I found the Omanis a very peaceful, caring people, but I also was told about low wages, no social welfare and rising food prices. Even as a well-paid expat, I found food prices to be on a par with the UK - yep, nothing was cheap in Oman - well the petrol was cheap!

But I read with unbounded horror the other day that two demonstrators were killed on Saturday (26th February) in Oman’s second largest city, Sohar. The police also fired rubber bullets and tear gas at the demonstrators. And yet nearly every Omani I talked to during my time there raved that they had steadfast respect for the Sultan bin-Said Qaboos. However, there have also been several demonstrations in Muscat, the capital city ministries district that was keenly monitored by the ROP (Royal Oman Police).

So what does all this mean for the expat? Well, as I write this blog, hundreds of British expats have been evacuated from Libya. How many are still there, no-one really knows as most European embassies have shut up shop and left. The fear is, and I know this for a fact, should Bahrain descend into chaos, then the rest of the Gulf, including Iran could implode. This would affect oil prices, leading to a titanic economic earthquake the likes of which we have haven’t seen since World War 2. And amongst the chaos is Israel. The last thing the Jewish state wants, paradoxically, is turmoil amidst its neighbours. Israel has had its hands full in recent years dealing with Palestine and Hamas. So the Israelis are keeping a close eye on developments.

As for expats working in these countries, my advice to them is simple - start looking for another job because I personally feel that if Libya falls next, then the Middle East might totally collapse leading to God knows what. Better to act now. Even if I was working in the relative security of Dubai, I would still not feel at ease. We look at the Dubai landscape with all those glittering towers and infrastructure, the tourism, Emirates airlines, et al, and muse that this tiny emirate is a startling example of modern-day civilisation. However, this economic miracle was only achieved by importing thousands of migrant labour from the Indian sub-continent. These were/are paid something in the region of $20 a day, working a 10-hour day, in sweltering heat whilst their rulers bathe in air-conditioned palaces and rake in the profits from property sales.

Anyway, I shall end this blog by saying only this, if the rest of the Arab states deteriorate into tumult like Libya, then they will only have themselves to blame. After all, these sheiks and sultans were never elected and could be characterised by one word: dictators!