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This page was last updated on 20 October, 2005
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| Introduction | Azerbaijan | Top of Page

Background: | Azerbaijan - a nation with a Turkic and majority-Muslim population - regained its independence after the collapse of the Soviet Union in 1991. Despite a 1994 cease-fire, Azerbaijan has yet to resolve its conflict with Armenia over the Azerbaijani Nagorno-Karabakh enclave (largely Armenian populated). Azerbaijan has lost 16% of its territory and must support some 571,000 internally displaced persons as a result of the conflict. Corruption is ubiquitous and the promise of widespread wealth from Azerbaijan's undeveloped petroleum resources remains largely unfulfilled.

| Geography | Azerbaijan | Top of Page

Location: | Southwestern Asia, bordering the Caspian Sea, between Iran and Russia, with a small European portion north of the Caucasus range
Geographic coordinates: | 40 30 N, 47 30 E
Map references: | Asia
Area: | total: 86,600 sq km land: 86,100 sq km water: 500 sq km note: includes the exclave of Naxcivan Autonomous Republic and the Nagorno-Karabakh region; the region's autonomy was abolished by Azerbaijani Supreme Soviet on 26 November 1991
Area - comparative: | slightly smaller than Maine
Land boundaries: | total: 2,013 km border countries: Armenia (with Azerbaijan-proper) 566 km, Armenia (with Azerbaijan-Naxcivan exclave) 221 km, Georgia 322 km, Iran (with Azerbaijan-proper) 432 km, Iran (with Azerbaijan-Naxcivan exclave) 179 km, Russia 284 km, Turkey 9 km
Coastline: | 0 km (landlocked); note - Azerbaijan borders the Caspian Sea (800 km, est.)
Maritime claims: | none (landlocked)
Climate: | dry, semiarid steppe
Terrain: | large, flat Kur-Araz Ovaligi (Kura-Araks Lowland) (much of it below sea level) with Great Caucasus Mountains to the north, Qarabag Yaylasi (Karabakh Upland) in west; Baku lies on Abseron Yasaqligi (Apsheron Peninsula) that juts into Caspian Sea
Elevation extremes: | lowest point: Caspian Sea -28 m highest point: Bazarduzu Dagi 4,485 m
Natural resources: | petroleum, natural gas, iron ore, nonferrous metals, alumina
Land use: | arable land: 19.63% permanent crops: 2.71% other: 77.66% (2001)
Irrigated land: | 14,550 sq km (1998 est.)
Natural hazards: | droughts
Environment - current issues: | local scientists consider the Abseron Yasaqligi (Apsheron Peninsula) (including Baku and Sumqayit) and the Caspian Sea to be the ecologically most devastated area in the world because of severe air, soil, and water pollution; soil pollution results from oil spills, from the use of DDT as a pesticide, and from toxic defoliants used in the production of cotton
Environment - international agreements: | party to: Air Pollution, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Marine Dumping, Ozone Layer Protection, Wetlands signed, but not ratified: none of the selected agreements
Geography - note: | both the main area of the country and the Naxcivan exclave are landlocked

| People | Azerbaijan | Top of Page

Population: | 7,911,974 (July 2005 est.)
Age structure: | 0-14 years: 26.4% (male 1,063,731/female 1,028,684) 15-64 years: 65.7% (male 2,533,762/female 2,665,381) 65 years and over: 7.8% (male 245,758/female 374,658) (2005 est.)
Median age: | total: 27.53 years male: 26.09 years female: 29 years (2005 est.)
Population growth rate: | 0.59% (2005 est.)
Birth rate: | 20.4 births/1,000 population (2005 est.)
Death rate: | 9.86 deaths/1,000 population (2005 est.)
Net migration rate: | -4.64 migrant(s)/1,000 population (2005 est.)
Sex ratio: | at birth: 1.05 male(s)/female under 15 years: 1.03 male(s)/female 15-64 years: 0.95 male(s)/female 65 years and over: 0.66 male(s)/female total population: 0.94 male(s)/female (2005 est.)
Infant mortality rate: | total: 81.74 deaths/1,000 live births male: 83.58 deaths/1,000 live births female: 79.8 deaths/1,000 live births (2005 est.)
Life expectancy at birth: | total population: 63.35 years male: 59.24 years female: 67.66 years (2005 est.)
Total fertility rate: | 2.44 children born/woman (2005 est.)
HIV/AIDS - adult prevalence rate: | less than 0.1% (2003 est.)
HIV/AIDS - people living with HIV/AIDS: | 1,400 (2003 est.)
HIV/AIDS - deaths: | less than 100 (2001 est.)
Nationality: | noun: Azerbaijani(s) adjective: Azerbaijani
Ethnic groups: | Azeri 90.6%, Dagestani 2.2%, Russian 1.8%, Armenian 1.5%, other 3.9% (1999 census) note: almost all Armenians live in the separatist Nagorno-Karabakh region
Religions: | Muslim 93.4%, Russian Orthodox 2.5%, Armenian Orthodox 2.3%, other 1.8% (1995 est.) note: religious affiliation is still nominal in Azerbaijan; percentages for actual practicing adherents are much lower
Languages: | Azerbaijani (Azeri) 89%, Russian 3%, Armenian 2%, other 6% (1995 est.)
Literacy: | definition: age 15 and over can read and write total population: 98.8% male: 99.5% female: 98.2% (1999 est.)

| Government | Azerbaijan | Top of Page

Country name: | conventional long form: Republic of Azerbaijan conventional short form: Azerbaijan local long form: Azarbaycan Respublikasi local short form: none former: Azerbaijan Soviet Socialist Republic
Government type: | republic
Capital: | Baku (Baki)
Administrative divisions: | 59 rayons (rayonlar; rayon - singular), 11 cities* (saharlar; sahar - singular), 1 autonomous republic** (muxtar respublika) : rayons: Abseron Rayonu, Agcabadi Rayonu, Agdam Rayonu, Agdas Rayonu, Agstafa Rayonu, Agsu Rayonu, Astara Rayonu, Balakan Rayonu, Barda Rayonu, Beylaqan Rayonu, Bilasuvar Rayonu, Cabrayil Rayonu, Calilabad Rayonu, Daskasan Rayonu, Davaci Rayonu, Fuzuli Rayonu, Gadabay Rayonu, Goranboy Rayonu, Goycay Rayonu, Haciqabul Rayonu, Imisli Rayonu, Ismayilli Rayonu, Kalbacar Rayonu, Kurdamir Rayonu, Lacin Rayonu, Lankaran Rayonu, Lerik Rayonu, Masalli Rayonu, Neftcala Rayonu, Oguz Rayonu, Qabala Rayonu, Qax Rayonu, Qazax Rayonu, Qobustan Rayonu, Quba Rayonu, Qubadli Rayonu, Qusar Rayonu, Saatli Rayonu, Sabirabad Rayonu, Saki Rayonu, Salyan Rayonu, Samaxi Rayonu, Samkir Rayonu, Samux Rayonu, Siyazan Rayonu, Susa Rayonu, Tartar Rayonu, Tovuz Rayonu, Ucar Rayonu, Xacmaz Rayonu, Xanlar Rayonu, Xizi Rayonu, Xocali Rayonu, Xocavand Rayonu, Yardimli Rayonu, Yevlax Rayonu, Zangilan Rayonu, Zaqatala Rayonu, Zardab Rayonu : cities: Ali Bayramli Sahari, Baki Sahari, Ganca Sahari, Lankaran Sahari, Mingacevir Sahari, Naftalan Sahari, Saki Sahari, Sumqayit Sahari, Susa Sahari, Xankandi Sahari, Yevlax Sahari : autonomous republic: Naxcivan Muxtar Respublikasi
Independence: | 30 August 1991 (from Soviet Union)
National holiday: | Founding of the Democratic Republic of Azerbaijan, 28 May (1918)
Constitution: | adopted 12 November 1995
Legal system: | based on civil law system
Suffrage: | 18 years of age; universal
Executive branch: | chief of state: President Ilham ALIYEV (since 31 October 2003) head of government: Prime Minister Artur RASIZADE (since 4 November 2003); First Deputy Prime Minister Abbas ABBASOV (since 10 November 2003) cabinet: Council of Ministers appointed by the president and confirmed by the National Assembly elections: president elected by popular vote to a five-year term; election last held 15 October 2003 (next to be held October 2008); prime minister and first deputy prime ministers appointed by the president and confirmed by the National Assembly election results: Ilham ALIYEV elected president; percent of vote - Ilham ALIYEV 76.8%, Isa GAMBAR 14%
Legislative branch: | unicameral National Assembly or Milli Mejlis (125 seats; members elected by popular vote to serve five-year terms) elections: last held 4 November 2000 (next to be held NA November 2005) note: 100 members of the current parliament were elected on the basis of single mandate constituencies, while 25 were elected based on proportional balloting; as a result of a 24 August 2002 national referendum on changes to the constitution, all 125 members of the next parliament will be elected from single mandate constituencies election results: percent of vote by party - NA%; seats by party - NAP and allies 108, APF "Reform" 6, CSP 3, PNIA 2, Musavat Party 2, CPA 2, APF "Classic" 1, Compatriot Party 1 note: PNIA, Musavat, and APF "Classic" parties refused to take their seats
Judicial branch: | Supreme Court
Political parties and leaders: | Azerbaijan Popular Front or APF [Ali KARIMLI, leader of "Reform" faction; Mirmahmud MIRALI-OGLU, leader of "Classic" faction]; Civic Solidarity Party or CSP [Sabir RUSTAMKHANLY]; Civic Union Party [Ayaz MUTALIBOV]; Communist Party of Azerbaijan or CPA [Ramiz AHMADOV]; Compatriot Party [Mais SAFARLI]; Democratic Party for Azerbaijan or DPA [Rasul QULIYEV, chairman]; Justice Party [Ilyas ISMAILOV]; Liberal Party of Azerbaijan [Lala Shovkat HACIYEVA]; Musavat [Isa GAMBAR, chairman]; New Azerbaijan Party or NAP [vacant]; Party for National Independence of Azerbaijan or PNIA [Etibar MAMMADLI, chairman]; Social Democratic Party of Azerbaijan or SDP [Araz ALIZADE and Ayaz MUTALIBOV] note: opposition parties regularly factionalize and form new parties
Political pressure groups and leaders: | Sadval, Lezgin movement; self-proclaimed Armenian Nagorno-Karabakh Republic; Talysh independence movement; Union of Pro-Azerbaijani Forces (UPAF)
International organization participation: | AsDB, BSEC, CE, CIS, EAPC, EBRD, ECO, FAO, GUUAM, IAEA, IBRD, ICAO, ICFTU, ICRM, IDA, IDB, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, ISO, ITU, MIGA, OAS (observer), OIC, OPCW, OSCE, PFP, UN, UNCTAD, UNESCO, UNIDO, UPU, WCO, WFTU, WHO, WIPO, WMO, WToO, WTO (observer)
Diplomatic representation in the US: | chief of mission: Ambassador Hafiz PASHAYEV chancery: 2741 34th Street NW, Washington, DC 20008 telephone: [1] (202) 337-3500 FAX: [1] (202) 337-5911
Diplomatic representation from the US: | chief of mission: Ambassador Reno L. HARNISH III embassy: 83 Azadlyg Prospecti, Baku AZ1007 mailing address: American Embassy Baku, Department of State, 7050 Baku Place, Washington, DC 20521-7050 telephone: [9] (9412) 98-03-35, 36, 37 FAX: [9] (9412) 656-671
Flag description: | three equal horizontal bands of blue (top), red, and green; a crescent and eight-pointed star in white are centered in red band

| Economy | Azerbaijan | Top of Page

Economy - overview: | Azerbaijan's number one export is oil. Azerbaijan's oil production declined through 1997 but has registered an increase every year since. Negotiation of production-sharing arrangements (PSAs) with foreign firms, which have thus far committed $60 billion to long-term oilfield development, should generate the funds needed to spur future industrial development. Oil production under the first of these PSAs, with the Azerbaijan International Operating Company, began in November 1997. Azerbaijan shares all the formidable problems of the former Soviet republics in making the transition from a command to a market economy, but its considerable energy resources brighten its long-term prospects. Baku has only recently begun making progress on economic reform, and old economic ties and structures are slowly being replaced. One obstacle to economic progress is the need for stepped up foreign investment in the non-energy sector. A second obstacle is the continuing conflict with Armenia over the Nagorno-Karabakh region. Trade with Russia and the other former Soviet republics is declining in importance while trade is building with Turkey and the nations of Europe. Long-term prospects will depend on world oil prices, the location of new pipelines in the region, and Azerbaijan's ability to manage its oil wealth.
GDP (purchasing power parity): | $30.01 billion (2004 est.)
GDP - real growth rate: | 9.8% (2004 est.)
GDP - per capita: | purchasing power parity - $3,800 (2004 est.)
GDP - composition by sector: | agriculture: 14.1% industry: 45.7% services: 40.2% (2002 est.)
Labor force: | 5.09 million (2004 est.)
Labor force - by occupation: | agriculture and forestry 41%, industry 7%, services 52% (2001)
Unemployment rate: | 1.2% (official rate) (2004 est.)
Population below poverty line: | 49% (2002 est.)
Household income or consumption by percentage share: | lowest 10%: 2.8% highest 10%: 27.8% (1995)
Distribution of family income - Gini index: | 36 (1995)
Inflation rate (consumer prices): | 4.6% (2004 est.)
Investment (gross fixed): | 65.1% of GDP (2004 est.)
Budget: | revenues: $2.715 billion expenditures: $2.801 billion, including capital expenditures of NA (2004 est.)
Public debt: | 18.9% of GDP (2004 est.)
Agriculture - products: | cotton, grain, rice, grapes, fruit, vegetables, tea, tobacco; cattle, pigs, sheep, goats
Industries: | petroleum and natural gas, petroleum products, oilfield equipment; steel, iron ore, cement; chemicals and petrochemicals; textiles
Industrial production growth rate: | 4% (2004 est.)
Electricity - production: | 17.55 billion kWh (2002)
Electricity - consumption: | 17.37 billion kWh (2002)
Electricity - exports: | 505 million kWh (2002)
Electricity - imports: | 1.558 billion kWh (2002)
Oil - production: | 312,800 bbl/day (2004 est.)
Oil - consumption: | 140,000 bbl/day (2001 est.)
Oil - exports: | NA
Oil - imports: | NA
Oil - proved reserves: | 589 million bbl (1 January 2002)
Natural gas - production: | 5.72 billion cu m (2001 est.)
Natural gas - consumption: | 6.72 billion cu m (2001 est.)
Natural gas - exports: | 0 cu m (2001 est.)
Natural gas - imports: | 1 billion cu m (2001 est.)
Natural gas - proved reserves: | 62.3 billion cu m (1 January 2002)
Current account balance: | $-2.899 billion (2004 est.)
Exports: | $3.168 billion f.o.b. (2004 est.)
Exports - commodities: | oil and gas 90%, machinery, cotton, foodstuffs
Exports - partners: | Italy 26.6%, Czech Republic 11.9%, Germany 8.1%, Indonesia 6.4%, Romania 6.2%, Georgia 6%, Russia 5.3%, Turkey 5.2%, France 4.1% (2004)
Imports: | $3.622 billion f.o.b. (2004 est.)
Imports - commodities: | machinery and equipment, oil products, foodstuffs, metals, chemicals
Imports - partners: | Russia 16.1%, UK 12.5%, Turkey 10.5%, Germany 7.8%, Ukraine 5.6%, Netherlands 4.9%, US 4.1%, Italy 4% (2004)
Reserves of foreign exchange and gold: | $875 million (2004 est.)
Debt - external: | $1.832 billion (2004 est.)
Economic aid - recipient: | ODA, $140 million (2000 est.)
Currency (code): | Azerbaijani manat (AZM)
Exchange rates: | Azerbaijani manats per US dollar - 4,913.48 (2004), 4,910.73 (2003), 4,860.82 (2002), 4,656.58 (2001), 4,474.15 (2000)
Fiscal year: | calendar year

| Communications | Azerbaijan | Top of Page

Telephones - main lines in use: | 923,800 (2002)
Telephones - mobile cellular: | 870,000 (2002)
Telephone system: | general assessment: inadequate; requires considerable expansion and modernization; teledensity of 10 main lines per 100 persons is low (2002) domestic: the majority of telephones are in Baku and other industrial centers - about 700 villages still without public telephone service; satellite service connects Baku to a modern switch in its exclave of Naxcivan international: country code - 994; the old Soviet system of cable and microwave is still serviceable; a satellite connection to Turkey enables Baku to reach about 200 additional countries, some of which are directly connected to Baku by satellite providers other than Turkey (1997)
Radio broadcast stations: | AM 10, FM 17, shortwave 1 (1998)
Television broadcast stations: | 2 (1997)
Internet country code: | .az
Internet hosts: | 586 (2004)
Internet users: | 300,000 (2002)

| Transportation | Azerbaijan | Top of Page

Railways: | total: 2,957 km broad gauge: 2,957 km 1.520-m gauge (1,278 km electrified) (2004)
Highways: | total: 28,030 km paved: 25,890 km unpaved: 2,130 km (2002)
Pipelines: | gas 4,451 km; oil 1,518 km (2004)
Ports and harbors: | Baku (Baki)
Merchant marine: | total: 81 ships (1,000 GRT or over) 253,004 GRT/318,922 DWT by type: cargo 26, passenger 2, passenger/cargo 8, petroleum tanker 41, roll on/roll off 2, specialized tanker 2 registered in other countries: 3 (2005)
Airports: | 50 (2004 est.)
Airports - with paved runways: | total: 27 over 3,047 m: 2 2,438 to 3,047 m: 6 1,524 to 2,437 m: 15 914 to 1,523 m: 3 under 914 m: 1 (2004 est.)
Airports - with unpaved runways: | total: 23 2,438 to 3,047 m: 1 1,524 to 2,437 m: 1 914 to 1,523 m: 6 under 914 m: 15 (2004 est.)
Heliports: | 2 (2004 est.)

| Military | Azerbaijan | Top of Page

Military branches: | Army, Navy, Air and Air Defense Forces
Military service age and obligation: | 18 years of age for compulsory and voluntary military service; law passed December 2001 raises maximum conscription age from 28 to 35 (December 2001)
Manpower available for military service: | males age 18-49: 1,961,973 (2005 est.)
Manpower fit for military service: | males age 18-49: 1,314,955 (2005 est.)
Manpower reaching military service age annually: | males: 82,358 (2005 est.)
Military expenditures - dollar figure: | $121 million (FY99)
Military expenditures - percent of GDP: | 2.6% (FY99)

| Transnational Issues | Azerbaijan | Top of Page

Disputes - international: | Armenia supports ethnic Armenian secessionists in Nagorno-Karabakh and since the early 1990s has militarily occupied 16% of Azerbaijan - Organization for Security and Cooperation in Europe (OSCE) continues to mediate dispute; over 800,000 mostly ethnic Azerbaijanis were driven from the occupied lands and Armenia; about 230,000 ethnic Armenians were driven from their homes in Azerbaijan into Armenia; Azerbaijan seeks transit route through Armenia to connect to Naxcivan exclave; Azerbaijan, Kazakhstan, and Russia ratify Caspian seabed delimitation treaties based on equidistance, while Iran continues to insist on an even one-fifth allocation and challenges Azerbaijan's hydrocarbon exploration in disputed waters; bilateral talks continue with Turkmenistan on dividing the seabed and contested oilfields in the middle of the Caspian; Azerbaijan and Georgia cannot resolve the alignment of their boundary at certain crossing areas
Refugees and internally displaced persons: | IDPs: 571,000 (conflict with Armenia over Nagorno-Karabakh) (2004)
Illicit drugs: | limited illicit cultivation of cannabis and opium poppy, mostly for CIS consumption; small government eradication program; transit point for Southwest Asian opiates bound for Russia and to a lesser extent the rest of Europe

This page was last updated on 20 October, 2005