The Industrial Revolution is usually identified as the turning point that transformed the global economic system in the late eighteenth century, ushering in a new, irreversible phase of profound structural transformation. Yet, in a similar vein, the contemporary world is undergoing an equally significant shift with an accelerated technological transformation, as artificial intelligence signals a new chapter in world history: the Fourth Industrial Revolution. This IDD Analytical Policy Brief will survey the new dynamics introduced into the modern Azerbaijani policy landscape by the emergence of digital transformation.

A decade ago, it would have been unimaginable to think of a South Caucasus where the region’s central transit state, and historically its most Western-oriented, would find itself increasingly detached from regional developments. Yet this is precisely the trajectory now confronting Georgia. Not through exclusion, but as a consequence of its own disengagement as perceived by those same Western powers.

The South Caucasus today is a space where the interests of major powers intersect. Against the backdrop of ongoing conflicts, sanctions, and crises of trust around the world, foreign policy models based on flexibility, pragmatism, and strategic autonomy are attracting particular attention. In this context, Azerbaijan’s experience as a state seeking to shape its own course of action and vision of regional architecture in a complex environment of major-power rivalry—while maintaining the ability to influence broader processes—is especially relevant.

The approaching first anniversary of the Azerbaijan-China Comprehensive Strategic Partnership offers a useful opportunity to take stock of achievements so far and assess the possibilities ahead.

Azerbaijan’s engagement with the Gulf Cooperation Council (GCC) has expanded significantly over the past decade, evolving into a multidimensional partnership encompassing both bilateral relations with individual member states and broader multilateral cooperation. While the two sides have long been connected through shared historic and religious ties, despite decades of separation during the Soviet period, cooperation today is taking a new strategic form that cultural factors alone cannot account for.

On 28 February 2026, with the launch of the U.S-Israeli military operation, the crisis around Iran transformed into open war. As the major armed confrontation centered on Iran escalates now in a wider geography and sends its shockwaves to the Gulf, the Eastern Mediterranean, the South Caucasus, the Indian Ocean, and beyond, it is essential to make an initial assessment. This IDD paper analyzes the course of action of the first ten days, the strategic objectives of the three most involved sides, the preliminary lessons, and the potential future effects of the war.

In this IDD Analytical Policy Brief, we argue that the decline of multilateralism is real and that it reflects a structural shift back to how states have traditionally pursued security, economic stability, and political influence. Drawing on observations from the most recent annual sessions of the World Economic Forum in Davos (January 2026) and the Munich Security Conference (February 2026), statements by political leaders, and contemporary geopolitical developments, we contend that states are increasingly moving away from the U.S.-led “rules-based liberal international order” that arose in the post- Cold War unipolar era toward bilateral, trilateral, and regional arrangements among “like-minded” partners. While this shift may offer short-term pragmatism and strategic autonomy, it also risks deepening fragmentation and instability in the international system if it does not result in an agreement on “new rules.” The brief concludes by outlining policy implications for small and middle powers navigating this evolving order.

Over the past thirteen years, the Organization of Turkic States (OTS) has substantially finalized its formation, institutional consolidation, and expansion. Through sustained and close coordination among the institutions and agencies of its member states, the organization has fostered a robust communication network and cultivated a cooperative administrative culture across national bureaucracies.

One consequence of the end of the U.S.-led (and EU-supported) “rules-based liberal international order” is the increasing adoption of pragmatism in the foreign policy practice of major powers, emerging keystone states, and lesser actors alike. The conflict over Ukraine—a manifestation of the end of the aforementioned order—has accelerated the redefinition of strategic priorities, forcing states to recalibrate their external engagements around a concept of national interest that favors strategic autonomy, diversification, and a greater emphasis on sovereignty rather than ideology, normative preferences, or bloc loyalty.

The contemporary digital age is reshaping societies worldwide, generating significant opportunities for economic growth and social development. Yet access to information and communication technologies (ICTs) remains deeply unequal. This disparity— commonly referred to as the digital divide—has far-reaching economic implications at the global level and within individual countries, including Azerbaijan. The digital divide affects productivity, innovation, and social equity, making it a central concern for policymakers.