Profiting from prestige: the political economy of mega-events in Azerbaijan

Abstract Why do rentier states seek out hosting rights for major international events? This article investigates this question through a qualitative case study of mega-events programs in Azerbaijan. Since gaining independence from the Soviet Union in 1991, hydrocarbon exports have formed the backbone of the country’s economy and the main source of rents for ruling elites. Focusing on the development of Azerbaijan’s events industry in the 2000’s and 2010’s, the article uses available evidence and process tracing techniques to develop the hypothesis that Azerbaijan’s elites sought out hosting rights, at least in part, to diversify their sources of private rents. By problematising the direction of causality between mega-events and rent-seeking behaviour, this analysis expands current theories on states’ motivations for hosting these events and contributes to existing understandings about how these proceedings serve to support and sustain rentier regimes.