Like Bosnia, Nagorno-Karabakh, an Armenian-majority enclave deep in Az
erbaijan, has seen civil war, ethnic cleansing, and a million people m
ade refugees. Living without a peace agreement, this statelet no one r
ecognizes is mired in communal grievances and nationalism, as is the e
ntire region. One almost longs for a return of the Soviet Union and it
s rhetoric of friendship between peoples. Karabakhis are discovering t
hat nationalism cannot power an economy and that ethnic identity is a
poor foundation for a state.