A recent, little-noticed news item covered an event that will have big economic repercussions for Europe and the U.S., but will have a costly impact on two frequently-hostile tyrannical countries, Iran and Russia.

Armenia and Azerbaijan are two small, previously unimportant countries that lie between Russia and Iran.  

Since breaking away from the Soviet Union (Russia) thirty years ago, Armenia and Azerbaijan have had frequent disputes and fighting.  

One big issue (as shown on the map) is that the country of Azerbaijan is broken into two parts, separated by Armenia, and travel between the main part of the country and its separate province is problematic.

But now that may all be history.

Azerbaijan exports oil from its wells near the Caspian Sea.  Until now, its only means of exporting that oil has been through Iran, which of course charges a price for transporting that oil – oil that competes with Iran’s own oil export business, but which also brings Iran a steady supply of much-needed cash.

President Trump recently brokered a deal between Armenia and Azerbaijan:  a corridor has been established along Armenia’s southern border (see map) that will make possible the exporting of Azerbaijan’s oil through Armenia, then through Azerbaijan’s western province, and then through Turkey to Europe.

That new oil transport will reduce Europe’s dependence on Russian oil.  Russia, like Iran, is already on the verge of bankruptcy.  The loss of income will hurt the economies of both countries, which in turn will reduce their ability to promote terrorism and support other tyrannical governments.

Roads, railways, and telecom networks will also be built in the “Zangezur Corridor”, as it will be named, facilitating travel, commerce, and communications.  The corridor will be built by American companies, which will supervise the corridor’s construction and subsequent operation. The U.S. has been granted a 99-year lease for the corridor’s operation.

The corridor ends three decades of conflict with a change that will improve the economies of both countries, while also bringing in billions of dollars into the U.S.

A bonus is that the corridor will also give the U.S. a strategic foothold along Iran’s northern border.  Expect U.S. military bases to be established on the corridor.  

Capitalism is Freedom

The hallmark of Capitalism per se is a financially-beneficial, economically-oriented solution that was arrived at through everyone’s self-interest.

Capitalism by its nature is not served by its imposition by force.  Capitalism is freedom, applied to commerce and trade.

The agreement was arrived at peaceably.  Capitalism by its nature is not served by war and threats; in fact, war and civil destruction are harmful to the operation of a capitalist system.  The only reason for the U.S. military’s presence is defensive:  to prevent destruction by outsiders intent on seizure and dictatorial imposition – the use of force.

The Zangezur Corridor is a classically capitalistic solution to a problem.  It is a solution that only a businessman like President Trump could have imagined.  It is a solution that politicians like Presidents Biden, Obama, and Bush never considered or pursued.

Now that President Trump has established the precedent, perhaps future Presidents will follow this example.

Capitalism is by definition part of freedom.  And freedom always works better than tyranny.  With a corridor of blatant capitalism running through their countries, perhaps a toe-hold has been established for the growth of freedom in America’s new West Asian allies, Armenia and Azerbaijan.

See  https://www.foxnews.com/world/trump-delivered-strategic-blow-iran-regime-bold-azerbaijan-armenia-pact  for more news about the Zangezur Corridor.

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