Strategic Pathways for the Revitalization of Karabakh and East Zangazur: A Comprehensive Assessment of Post-Conflict Reconstruction, Resource Utilization, Smart Regional Development, and Socio-Economic Transformation in Azerbaijan’s Newly Liberated Territ

Abstract

This study provides a comprehensive and multidimensional analysis of the revitalization pathways for the Karabakh and East Zangazur economic regions of Azerbaijan—territories liberated during the 44-day Patriotic War of 2020. The research examines the strategic, economic, infrastructural, and socio-cultural dimensions of post-conflict reconstruction while assessing the resource potential and development prospects of these newly established economic zones. Special emphasis is placed on the efficient use of natural resources, the modernization of agriculture, and the introduction of high-tech and “smart” solutions aligned with contemporary sustainable development demands. The article highlights the significance of new state policies aimed at rebuilding transport, social, cultural, and production infrastructures destroyed during nearly three decades of occupation. It evaluates alternative investment mechanisms, such as industrial parks, free economic zones, agricultural parks, and public-private partnership (PPP) models, which are designed to accelerate regional development. The study underscores the competitive advantages of key sectors—agriculture, water resources, livestock, viticulture, cotton production, renewable energy, tourism, and the cultural economy—identifying their potential for driving long-term economic growth. Overall, the study argues that Karabakh and East Zangazur have the potential to emerge as leading innovation-driven and sustainable economic regions, contributing significantly to Azerbaijan’s national development model and regional competitiveness under modern global challenges.