The International Crisis Group made a statement over Karabakh issue.

Azerbaijan has made significant progress in recent years in caring for roughly 600,000 internally displaced persons (IDPs) who were forcibly evicted from Nagorno-Karabakh and seven surrounding districts by ethnic Armenian forces nearly two decades ago. Though many still face precarious existences, the state has been investing heavily in new housing and increasing benefits. But while some IDPs have fully integrated, many more are still in limbo. The government and most of the displaced favour return to their original homes. That the stalled peace process with Armenia means this is not an immediate prospect should not preclude IDPs from being full participants in Azerbaijan’s political and economic life. Yet, their unresolved fate is one of the main reminders of the conflict – and, without a peaceful settlement, puts pressure on the Azerbaijan leadership to prepare for the possibility of a new war.

2011 was a lost year for the peace process, as seven years of talks on a Basic Principles agreement meant to lay the foundation for an eventual comprehensive peace deadlocked. Baku and Yerevan are in the midst of a major arms race and exchange increasingly militaristic statements, while sporadic clashes along the front lines kill about 30 persons annually. Beyond some possible confidence-building measures (CBMs), there is little likelihood of progress for the coming year, with Armenia, Azerbaijan and the OSCE Minsk Group co-chair countries (France, Russia, U.S.) all entering electoral cycles. Earlier Crisis Group reports have explored the threat of resumed fighting and suggested ways to move toward resolution of the conflict. A forthcoming report will again analyse the diplomatic and security situation. This briefing, however, concentrates on a too often ignored human consequence of the crisis.

The Azerbaijan government has begun to expend significantly more resources to improve the lot of the displaced, who are 7 per cent of the total population – one of the highest rates in the world. 108,000 were moved into new housing over the past two years, with space for 115,000 more slated to be constructed by 2015. Some complain, however, of poor construction and infrastructure, lack of community participation in planning and limited access to land or job opportunities in the new communities, all areas that need additional attention and improvement.

Azerbaijan’s IDPs benefit from free or low-cost education, health care and energy and have some special employment opportunities, though their ability to express their interests is limited by inability to elect municipal representatives. The some 40,000 from Nagorno-Karabakh are in principle represented as a group by the Azerbaijani Community of Nagorno-Karabakh Social Union, but its leadership is not fully popularly elected, and the 560,000 displaced from the occupied districts around Nagorno-Karabakh are not well represented. The political voice of IDPs thus remains weak. They should be more effectively integrated into decision-making about housing, services, and other community needs, as well as contingency planning for emergencies and confidence-building measures (CBMs).

This briefing includes a section on conditions for those approximately 128,000 IDPs and permanent residents living in close proximity to the 180km-long line of contact (LoC) that marks the 1994 ceasefire between the opposing forces. It does not address the plight of the Armenian refugees from Azerbaijan and vice versa who fled the initial violence in the late 1980s, as the overwhelming majority of them have been largely integrated into their respective new countries. Regular exchange of fire between trenches, snipers, mines and a lingering threat of renewed full-scale hostilities make living conditions near the LoC particularly precarious. A small (six-person) monitoring team from the Organisation for Security and Cooperation in Europe (OSCE) has virtually no resources, meaning it provides inadequate oversight and inspires little confidence among the contending sides or civilians.

To facilitate greater IDP engagement in policies relevant to their lives, the Azerbaijan government should:

– increase transparency; involve IDPs as much as possible in housing decisions; and streamline processes for reporting incidents  of corruption or violations of state law regarding IDP issues; and

– allow IDPs, while their villages and towns remain occupied, to vote for municipal councils in their places of temporary residence.

To protect IDPs and other civilians along the LoC, the Azerbaijan authorities should:

– agree with the Armenian government and the de facto authorities in Nagorno-Karabakh to an expanded interim OSCE monitoring role, to an OSCE proposal to remove snipers from the LoC and to set up an incident investigation mechanism, as well as to immediately cease military exercises near the LoC and advancing trench positions; and

– create an inter-ministerial task force, including the National Agency for Mine Action (ANAMA), to design a strategy to increase the safety of communities near the LoC, including more civil defence training, while refraining from resettling additional IDPs there.

The international community, in particular the co-chairs of the Minsk Group (France, Russia, U.S.) facilitating efforts to reach a comprehensive peace, should:

– facilitate the creation of an incident investigation mechanism, including the operation of a hotline between the sides to discuss ceasefire breaches, and otherwise protect the civilian population living near the LoC; and

– develop more on-the-ground CBMs to create an atmosphere of trust, including promoting civil society meetings between the ethnic Armenian population of Nagorno-Karabakh and the ethnic Azeri population expelled from Nagorno-Karabakh and the occupied territories.