Azerbaijan - A Brief Profile

Overview

A country of rugged mountains and river valleys bordering the Caspian sea, Azerbaijan has been renowned for its oil and natural gas reserves since ancient times. By the beginning of the last century, Azerbaijan was supplying almost half the world's oil.

But despite its sought-after natural resources, Azerbaijan remains one of the seven lowest-income countries in Europe and Central Asia, and poverty continues to be a major challenge.

After more than 70 years as part of the Soviet Union, Azerbaijan regained its independence from

Moscow in 1991. Already among the poorer of the former Soviet republics, Azerbaijan quickly plunged into economic decline and institutional instability.

The situation was exacerbated by the Nogorno-Karabakh conflict and by the displacement of 800,000 people. Currently, internally displaced persons account for 10 per cent of Azerbaijan's total population.

Although per capita GDP has increased in Azerbaijan, it is estimated that 40 per cent of the population lives in poverty and an additional 17 per cent in extreme poverty. The damage caused by the economic crisis is still being felt institutionally -- in the run-down healthcare and education systems -- as well as on the environment.

Oil remains the dominant feature in Azerbaijan's political and economic life. Since 1994 western companies have invested millions of dollars in the development of Azerbaijan's oil and gas reserves. However, the benefits of this investment have not been as widely felt as many had hoped -- and corruption is perceived as a widespread problem.

Population - the basics

Total population: 8,265,700
Young People: women – 328,700, men – 294,700
Women: 4,058,500
Life expectancy: women – 75, men - 70
Population growth rate: 0,59% (2005)
Fertility rate: 1,9
Percentage of people living below the poverty line: 40,2%
Most recent census: 1999

Economy

Oil is by far Azerbaijan's dominant export, with foreign firms committing tens of billions of dollars to long-term oil-field development. But the comparative lack of investment in the non-energy sector is an obstacle to more widespread economic progress and more diversification will be needed to create jobs and encourage long-term growth.

The volume of trade with Russia has reduced, but increased with neighbouring Turkey and Europe. After the oil and gas sector, farming on Azerbaijan's fertile agricultural land contributes about 14 per cent to GDP.

Aside from oil and gas (90 per cent of national exports), Azerbaijan exports machinery, cotton and foodstuffs. Its main export partners are Italy, the Czech Republic, Germany and Turkey.

Azerbaijan imports machinery, oil products, food, metals and chemicals. Its main import partners are Great Britain, Russia, Turkey and Germany.

Administration

The capital of Azerbaijan is Baku. There are 59 administrative districts known as "Rayons", 11 cities, and one autonomous republic.

Azerbaijan's head of state is the President, who is elected for five years by popular vote. The current President is Ilham Aliyev, who has been in office since October 2003.

The Prime Minister is appointed by the President and confirmed by the National Assembly. The current Prime Minister is Abbas Abbasov - since November 2003

The one-chamber National Assembly or Milli Mejlis has 125 seats. MPs are elected by popular vote for five year terms.

The last election was held in October 2003. The next is due in October 2008.