Jeffrey Sachs: South Caucasus can become key connector in a multipolar world

Jeffrey D. Sachs, an economist, public policy analyst, Columbia University professor, and UN advisor, said Azerbaijan and the wider South Caucasus could become one of the world’s key strategic connectors in an emerging multipolar order.

South Caucasus as a strategic bridge

Speaking to AnewZ in Baku during the World Urban Forum (WUF), Sachs described the region as a natural bridge linking East and West, as well as North and South.

He said initiatives such as Europe’s Global Gateway and China’s Belt and Road Initiative could converge in Baku, strengthening the region’s role as a connectivity hub.

“In the new order that I would like to see - a peaceful, multipolar, and cooperative world - Azerbaijan and the South Caucasus would be natural key connectors,” Sachs said.

He stressed that Eurasia should become an integrated and peaceful economic region stretching from the Atlantic to the Pacific, arguing that cooperation, trade, investment, and tourism are more beneficial than geopolitical confrontation.

Azerbaijan’s energy and connectivity role

Sachs also highlighted Azerbaijan’s growing role in connectivity through energy and transport routes, but warned against turning energy and trade into geopolitical weapons.

While describing Azerbaijan as an important hydrocarbon power, he said the region also has major renewable energy potential, particularly in solar energy.

Regional cooperation after conflict

Discussing relations between Azerbaijan and Armenia, Sachs said neighbouring countries naturally benefit from economic cooperation and infrastructure development once conflict ends.

He argued that countries in the South Caucasus share a common interest in preserving their sovereignty and avoiding becoming battlegrounds for major power rivalries.

“The worst thing for countries is to become the site of a proxy war between major powers,” he said.

U.S.-China relations and the multipolar order

On global politics, Sachs described the United States and China as “roughly co-equal powers,” saying China had strengthened its position through investment, manufacturing, technology, and by staying out of wars.

He said the recent Trump-Xi summit in Beijing showed that both sides were interested in maintaining responsible competition rather than escalating into a new Cold War.

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Criticism of economic weaponisation

Sachs also criticised the increasing use of sanctions, tariffs, and financial systems as geopolitical tools, arguing that countries are rapidly developing alternatives to reduce dependence on the U.S. dollar and Western-controlled systems.

“The idea of economics as a weapon is very strong in American rhetoric, but to my mind, it is already outdated,” he said.

Concerns over regional escalation

Speaking about tensions involving Iran, Sachs strongly opposed further escalation, describing conflict in the region as dangerous for stability, trade, and energy security.

He warned that a wider confrontation could have serious consequences for neighbouring regions, including the South Caucasus and the Caspian area.

Urbanisation and the future of cities

He also addressed the issue of rapid urbanisation, saying housing has become not only a social challenge but also an issue of political and economic stability. Sachs noted that more than half of the world’s population now lives in cities, with the figure expected to rise to around 70% by 2050.

“These cities should be decent places to live. They should be healthful. They should be productive. They should have jobs,” he said.

According to Sachs, future cities should focus on sustainable infrastructure, public transport, walkability, digital innovation, and reduced dependence on private car ownership.

New UN advisory council on sustainable cities

During the World Urban Forum in Baku, Sachs said the UN Sustainable Development Solutions Network and UN-Habitat would launch a new advisory council focused on the future of cities and sustainable urban development worldwide.

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