Azerbaijan - a nation with a Turkic and majority-Muslim population - was briefly independent from 1918 to 1920; it 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 600,000 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.
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, bauxite
Land use
arable land
20.62%
permanent crops
2.61%
other
76.77% (2005)
Irrigated land
14,550 sq km (2003)
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 pesticide, and from toxic defoliants used in the production of cotton
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
Founding of the Democratic Republic of Azerbaijan, 28 May (1918)
Constitution
adopted 12 November 1995
Legal system
based on civil law system; has not accepted compulsory ICJ jurisdiction
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 (eligible for a second term); election last held 15 October 2003 (next to be held in October 2008); prime minister and first deputy prime minister 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 6 November 2005 (next to be held in November 2010)
election results: percent of vote by party - NA; seats by party - Yeni 58, Azadliq coalition 8, CSP 2, YES 2, Motherland 2, other parties with single seats 7, independents 42, undetermined 4
Judicial branch
Supreme Court
Political parties and leaders
Azadliq coalition (Musavat, APF, and DPA); 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]; Justice Party [Ilyas ISMAILOV]; Liberal Party of Azerbaijan [Lala Shovkat HACIYEVA]; Motherland Party; Musavat [Isa GAMBAR, chairman]; Yeni Azerbaijan Party; Party for National Independence of Azerbaijan or PNIA [Etibar MAMMADLI]; Social Democratic Party of Azerbaijan or SDP [Araz ALIZADE]
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); Karabakh Liberation Organization
American Embassy Baku, US Department of State, 7050 Baku Place, Washington, DC 20521-7050
telephone
[994] (12) 4980-335 through 337
FAX
[994] (12) 4656-671
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 - 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 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. A consortium of Western oil companies began pumping 1 million barrels a day from a large offshore field in early 2006, through a $4 billion pipeline it built from Baku to Turkey's Mediterranean port of Ceyhan. By 2010 revenues from this project will double the country's current GDP. 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. Several other obstacles impede Azerbaijan's economic progress: the need for stepped up foreign investment in the non-energy sector, the continuing conflict with Armenia over the Nagorno-Karabakh region, and the pervasive corruption. 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)
$59.71 billion (2006 est.)
GDP (official exchange rate)
$14.25 billion (2006 est.)
GDP - real growth rate
34.5% (2006 est.)
GDP - per capita (PPP)
$7,500 (2006 est.)
GDP - composition by sector
agriculture
14.1%
industry
45.7%
services
40.2% (2002 est.)
Labor force
5.191 million (2006 est.)
Labor force - by occupation
agriculture
41%
industry
7%
services
52% (2001)
Unemployment rate
1.2% official rate (2006 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
36.5 (2001)
Inflation rate (consumer prices)
8% (2006 est.)
Investment (gross fixed)
44.9% of GDP (2006 est.)
Budget
revenues
$6.008 billion
expenditures
$5.804 billion; including capital expenditures of $NA (2006 est.)
Public debt
10.4% of GDP (2006 est.)
Agriculture - products
Industries
petroleum and natural gas, petroleum products, oilfield equipment; steel, iron ore; cement; chemicals and petrochemicals; textiles
Industrial production growth rate
50% (2006 est.)
Electricity - production
20.35 billion kWh (2004)
Electricity - production by source
fossil fuel
89.7%
hydro
10.3%
nuclear
0%
other
0% (2001)
Electricity - consumption
20.57 billion kWh (2004)
Electricity - exports
510 million kWh (2004)
Electricity - imports
2.15 billion kWh (2004)
Oil - production
477,000 bbl/day (2005 est.)
Oil - consumption
120,000 bbl/day (2004 est.)
Oil - exports
NA bbl/day
Oil - imports
NA bbl/day
Oil - proved reserves
589 million bbl (1 January 2002)
Natural gas - production
5.01 billion cu m (2004 est.)
Natural gas - consumption
9.94 billion cu m (2004 est.)
Natural gas - exports
0 cu m (2004 est.)
Natural gas - imports
4.93 billion cu m (2004 est.)
Natural gas - proved reserves
849.5 billion cu m (1 January 2005 est.)
Current account balance
$2.737 billion (2006 est.)
Exports
$12.51 billion f.o.b. (2006 est.)
Exports - commodities
oil and gas 90%, machinery, cotton, foodstuffs
Exports - partners
Italy 30.1%, France 11.7%, Czech Republic 10.1%, Germany 7.9%, US 7.7%, UK 4.4% (2006)
Imports
$5.176 billion f.o.b. (2006 est.)
Imports - commodities
machinery and equipment, oil products, foodstuffs, metals, chemicals
Imports - partners
Russia 19.6%, UK 12.6%, Turkey 9.9%, Germany 8.7%, Singapore 6.2%, China 4.9% (2006)
Reserves of foreign exchange and gold
$1.8 billion (2006 est.)
Debt - external
$2.483 billion (2006 est.)
Economic aid - recipient
ODA, $140 million (2000 est.)
Currency (code)
Azerbaijani manat (AZM)
Currency code
AZM
Exchange rates
Azerbaijani manats per US dollar - 0.8934 (2006), 4,727.1 (2005), 4,913.48 (2004), 4,910.73 (2003), 4,860.82 (2002)
note: on 1 January 2006 Azerbaijan revalued its currency, with 5,000 old manats equal to 1 new manat
Fiscal year
calendar year
Telephones - main lines in use
1.091 million (2005)
Telephones - mobile cellular
2.242 million (2005)
Telephone system
general assessment
inadequate; requires considerable expansion and modernization; teledensity of 14 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; satellite earth stations - 2 (2005)
Radio broadcast stations
AM 10, FM 17, shortwave 1 (1998)
Radios
175,000 (1997)
Television broadcast stations
2 (1997)
Televisions
170,000 (1997)
Internet country code
.az
Internet hosts
880 (2006)
Internet Service Providers (ISPs)
2 (2000)
Internet users
678,800 (2005)
Airports
36 (2006)
Airports - with paved runways
total
27
over 3,047 m
1
2,438 to 3,047 m
7
1,524 to 2,437 m
13
914 to 1,523 m
4
under 914 m
2 (2006)
Airports - with unpaved runways
total
9
914 to 1,523 m
2
under 914 m
7 (2006)
Heliports
1 (2006)
Pipelines
gas 3,190 km; oil 2,436 km (2006)
Railways
total
2,957 km
broad gauge
2,957 km 1.520-m gauge (1,278 km electrified) (2005)
Roadways
total
59,141 km
paved
29,210 km
unpaved
29,931 km (2004)
Merchant marine
total
84 ships (1000 GRT or over) 405,395 GRT/436,666 DWT
by type
cargo 26, passenger 2, passenger/cargo 8, petroleum tanker 43, roll on/roll off 2, specialized tanker 3
registered in other countries
4 (Georgia 2, Malta 2) (2006)
Ports and terminals
Baku (Baki)
Military branches
Army, Navy, Air and Air Defense Forces
Military service age and obligation
men between 18 and 35 are liable for military service; 18 years of age for voluntary military service; length of military service is 18 months and 12 months for university graduates (2006)
Manpower available for military service
males age 18-49
1,961,973
females age 18-49
2,033,186 (2005 est.)
Manpower fit for military service
males age 18-49
1,314,955
females age 18-49
1,676,408 (2005 est.)
Manpower reaching military service age annually
males age 18-49
82,358
females age 18-49
78,067 (2005 est.)
Military expenditures - percent of GDP
2.6% (2005 est.)
Disputes - international
Armenia supports ethnic Armenian secessionists in Nagorno-Karabakh and since the early 1990s has militarily occupied 16% of Azerbaijan; 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; Organization for Security and Cooperation in Europe (OSCE) continues to mediate dispute; Azerbaijan, Kazakhstan, and Russia have ratified 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 continue to discuss the alignment of their boundary at certain crossing areas
Refugees and internally displaced persons
refugees (country of origin)
2,800 (Russia)
IDPs
580,000-690,000 (conflict with Armenia over Nagorno-Karabakh) (2006)
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
