4.

Two reviews to the economic appropriation (exploitation) of

South Caucasus
After the conquest of the Northern Azerbaijan as the colony of Russia two views on the
economic exploitation of Azerbaijan were formed. The first vision was suggested by
Griboedov and Zavileysky and they the main part of economy in the creation of “Russian –
Transcaucian Trading Company”. This project considered the development of main branches
of agriculture and creation of the factory production like wine – making, leather, sugar and
glass production, based on the local raw materials. The government took this project with
displeasure, because it would create conditions to the development of local industries. They
said that in this case Northern Azerbaijan could become the next USA, which firstly was the
colony of Britain but gained independence. As result, this view on the economy was rejected
and the second view was formed, which based on the using the raw materials of South
Caucasus without actually building companies and factories here. The Minister of Finance of
Russia called the Caucasian country very profitable colony for Russia as it would provide raw
materials and selling market. Thus, the raw materials would be taken from South Caucasus,
developed in Russia and then again would be sold in Caucasus which profited the Russia in
every way. This exploitation continued till the transition to factory production was made. In
the first half of the 19th century the manufactory production was established. Despite the
increasing development of new capitalist relations, the economic potential was still mainly
focused on the providing the raw materials, which defined the colonial character of the
economy of Azerbaijan.

 The first large silk manufactory was build in the territory near Shaki in 1829.
 See 7th question (Tagiyev)