This review paper will first explore the overall contemporary state of developments in South Caucasus countries. Providing the overall assessment of both economic and political transformations on the basis of cross-country situation analysis, it serves the need to identify the role of economic factors with regard to security in the South Caucasus. The security might be at risk of being further undermined in response to the continued global financial crisis and therefore, the paper is an attempt to foresee the potential threats and suggest a relevant course of actions in the South Caucasus.
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