AZERBAIJAN

Azerbaijan Republic

Azarbaichan Respublikasy

CAPITAL: Baku

FLAG: Three equal horizontal bands of blue (top), red, and green; a crescent and eight-pointed star in white are centered in the red band.

ANTHEM: Azerbaijan National Anthem, composed by Uzeyir Hajibeyov.

MONETARY UNIT: The manat, consisting of 100 gopik, was introduced in 1992 and remains tied to the Russian ruble with widely fluctuating exchange rates. 1 manat = $0.00021 (or $1 = 4,794.15 manat) as of 2005.

WEIGHTS AND MEASURES: The metric system is in force.

HOLIDAYS: New Year's Day, 1 January; International Women's Day, 8 March; Novruz Bayrom (Holiday of Spring), 22 March; Day of the Republic, 28 May; Day of Armed Forces, 9 October; Day of State Sovereignty, 18 October; Day of National Revival, 17 November; Universal Azeri Solidarity Day, 31 December.

TIME: 4 pm = noon GMT.

LOCATION, SIZE, AND EXTENT

Azerbaijan is located in southeastern Europe/southwestern Asia between Armenia and the Caspian Sea. Comparatively, Azerbaijan is slightly smaller than the state of Maine with a total area of 86,600 sq km (33,436 sq mi). This area includes the Nakhichevan Autonomous Republic and the Nagorno-Karabakh Autonomous Oblast. Azerbaijan shares boundaries with Russia on the n, the Caspian Sea on the e, Iran on the s, Armenia on the w, and Georgia on the nw. Azerbaijan's boundary length totals 2,013 km (1,251 mi). Azerbaijan's capital city, Baku, is located on the Apsheron Peninsula that juts into the Caspian Sea.

TOPOGRAPHY

The topography of Azerbaijan features the large, flat Kura-Aras Lowland (much of it below sea level) surrounded on three sides by mountains. The Great Caucasus Mountains are to the north, the Lesser Caucasus Mountains are to the southwest, and the Talish Mountains are in the south along the border with Iran. The Karabakh Upland lies in the west. About 19% of Azerbaijan's land is arable with approximately 16% under irrigation.

The Nakhichevan exclave lies to the west, separated from the rest of Azerbaijan by Armenia. Nakhichevan also shares borders with Turkey and Iran.

CLIMATE

The country's climate is subtropical in the eastern and central parts. In the mountainous regions the climate is alpine-like. The southeastern section of the country has a humid subtropical climate. The average temperature in the capital, Baku, in July is 25°c (77°f). In January the average temperature is 4°c (39°f). Rainfall varies according to climate zones. The average rainfall for most of the country is only about 15 to 25 cm (6 to 10 in). However, at the highest elevations of the Caucasus and in the Länkäran lowlands, annual rainfall can exceed 100 cm (39 in).

FLORA AND FAUNA

The country's flora and fauna is rich and varied. There are 16 nature reserves and more than 28 forest reserves and hunting farms.

ENVIRONMENT

Azerbaijan's current environmental problems result in part from the effects of the economic priorities and practices of the former Soviet Union. General mismanagement of the country's resources has resulted in a serious threat to several areas of the environment. UN agencies have reported severe air and water pollution in Azerbaijan, which ranks among the 50 nations with the world's highest level of carbon dioxide emissions. The combination of industrial, agricultural, and oil-drilling pollution has created an environmental crisis in the Caspian Sea. These sources of pollution have contaminated 100% of the coastal waters in some areas and 45.3% of Azerbaijan's rivers. In 2001, only 78% of the total population had access to safe drinking water. The pollution of the land through the indiscriminate use of agricultural chemicals such as the pesticide DDT is also a serious problem.

Azerbaijan's war with Armenia has hampered the government's ability to improve the situation. Due to the severity of pollution on all levels, the country's wildlife and vegetation are also seriously affected. From the mid-1980s to mid-1990s, the amount of forest and woodland declined by 12.5%. As of 2000, about 13% of the total land area was forested. In 2003, about 6.1% of the total land area was protected, including two Ramsar wetland sites: Agh-Ghol and Ghizil-Agaj.

As of 2002, there were at least 99 species of mammals, 229 species of birds, and 4,300 species of higher plants. According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), threatened species included 11 types of mammals, 11 species of birds, 5 types of reptiles, 5 species of fish, and 6 other invertebrates. Endangered species include the Barbel sturgeon, beluga, the Azov-Black Sea sturgeon, the Apollo butterfly, and the Armenian birch mouse.

POPULATION

The population of Azerbaijan in 2005 was estimated by the United Nations (UN) at 8,388,000, which placed it at number 90 in population among the 193 nations of the world. In 2005, approximately 7% of the population was over 65 years of age, with another 26% of the population under 15 years of age. There were 94 males for every 100 females in the country. According to the UN, the annual population rate of change for 2005–10 was expected to be 1.0%, a rate the government viewed as satisfactory. The projected population for the year 2025 was 9,700,000. The population density was 97 per sq km (251 per sq mi).

The UN estimated that 51% of the population lived in urban areas in 2005, and that urban areas were growing at an annual rate of 1.15%. The capital city, Baku, had a population of 1,816,000 in that year. Other urban centers include Gyanja (formerly Kirovabad) with a population of about 300,000 people, and Sumgait with about 289,700. There has been an additional influx of foreign refugees to the urban centers in recent years.

MIGRATION

As a result of the war with Armenia, which started in 1988, more than one million people were forced to leave the region. The Law on Citizenship allows for the automatic acquisition of Azerbaijani citizenship by refugees from Armenia. Also, there are some 48,000 Meshketians, also known as Meskhis, who were forcibly resettled from Central Asia after bloody Soviet pogroms in 1989. The Meshketians, descendants of rural Muslim populations, were originally deported from Georgia to Central Asia under the Stalin era. Most Azerbaijani were displaced between 1993 and 1994. Since May 1994, when the ceasefire was enacted, only 60,000 persons were able to return to their homes along the front line. According to United Nations High Commissioner for Refugees (UNHCR) data, as of the end of 2004 there were 578,545 (around 7% of the total population) internally displaced persons (IDP) in Azerbaijan.

Between 1989 and 1995, there was an emigration of Slavic peoples from Azerbaijan. These included 169,000 Russians, 15,000 Ukrainians, and 3,000 Belarusians as they emigrated back to their homelands. By the end of 2004, several thousand Azerbaijan citizens sought asylum in Western Europe, mainly in Sweden and Germany.

As of 2001 there were 148,000 migrants living in Azerbaijan, with less than 1% of these being refugees. However, as of 2004, Azerbaijan hosted 40,267 other refugees and asylum seekers. Most are Azeri refugees from Armenia.

In 2005 the net migration rate was estimated as -4.64 migrants per 1000. The government views this migration level as satisfactory.

ETHNIC GROUPS

At the 1999 census, 90.6% of the population was Azeri; about 2.2% were Dagestani, 1.8% were Russian, another 1.5% were Armenian, and 3.9% were of other ethnic origins. Almost all Armenians live in the separatist Nagorno-Karabakh region.

LANGUAGES

Azerbaijani (or Azeri) is a language related to Turkish and is also spoken in northwestern Iran. It is traditionally written in Arabic script. In 1995, an estimated 89% of the population spoke Azeri; 3% spoke Russian; 2% spoke Armenian; and 6% other. In 1939, the Soviets introduced a Cyrillic alphabet, with eight special characters.

RELIGIONS

For most of the 20th century, from 1920–1991, the Azerbaijan Soviet Socialist Republic observed the restrictions in religious belief and practice common throughout the former Soviet Union. According to official figures available in 2004, the population was 96% Muslim (70% of whom were Shias, and 30% were Sunnis). However, the percentage of those who are active practitioners of the faith is believed to be much lower. Religious identity within the country tends to be primarily based on culture and ethnicity. Because of the Persian influence on Azerbaijan, most Azerbaijanis are Shiites, even though all of the other Turkic groups of the former Soviet Union are Sunni Muslims.

Islam (both Shia and Sunni), Russian Orthodox, and Judaism are considered to be traditional religions of the country. A majority of Christians live in the Baku and Sumgait urban areas. There are two main groups of Jews: the Mountain Jews, who are believed to be descendents of those who first came to the northern part of the country over 2,000 years ago, and the Ashkenazi Jews, who are the descendant of European immigrants. There are small communities of Evangelical Lutherans, Roman Catholics, Baptists, Molokans (an older branch of Russian Orthodox), Seventh-Day Adventists, Baha'is, Wahhabist Muslims, Jehovah's Witnesses, and Hare Krishnas.

The constitution specifically provides that persons of all faiths may choose and practice their religion without restrictions. There are legal provisions which allow the government to regulate religious groups. All religious groups must be registered with the government through the State Committee for Work with Religious Associations, a department of the Ministry of Justice. Proselytizing by foreigners is against the law. Muslims who convert to non-Muslim faiths often face social discrimination, and even hostilities.

TRANSPORTATION

Azerbaijan's railway system, as of 2004, was made up of 2,957 km (1,839 mi) of broad gauge (1.520-m) track, with Baku as the hub. Of that total, 1,278 km (795 mi) was electrified. In 2003, the high-way system totaled 27,016 km (16,803 mi), of which 12,698 km (7,898 mi) were paved. In that same year, there were 128 km (80 mi) of expressways. As of 2003, there were 350,559 passenger cars and 124,482 commercial vehicles registered. Azerbaijan's major port is at Baku. In 2005 the merchant marine had 81 ships (1,000 GRT or over), totaling 253,004 GRT. Ships from the Caspian fleet have called at some 125 ports in over 30 countries. In 2004 there were an estimated 50 airports. As of 2005, a total of 27 had paved runways, and there were also two heliports. There are flights from Baku's Bina Airport to more than 70 cities of the former Soviet Union. In 2003, a total of 684,000 passengers were carried on scheduled domestic and international airline flights.

HISTORY

The territory of present-day Azerbaijan has been continuously inhabited since the Paleolithic era. The first evidence of tribal alliances date to the first millennium bc, when such peoples as the Mannaians, the Medes, the Cadusiis, the Albanoi, and the Caspians appeared. In the 7th century bc, the state of Media appeared in what now is southern Azerbaijan, growing to cover large portions of the Near East. The Medians were displaced by the Persian dynasty of Achaemenids, who in turn were defeated by Alexander the Great. In the 4th century bc, another state arose which Greek sources called Atropatena, or "Land of the Fire Keepers"; it is this name, reflecting the predominance of Zoroastrianism, which may have given the present state its name. Around the beginning of the common era Atropatena was succeeded by a state called Albania, which the Romans attempted to conquer.

In the 3rd and 4th centuries ad, Azerbaijan existed with fluid boundaries between the Sassanid state in Persia and the Romans, whose battles inflicted great damage, leaving Azerbaijan open to raids by Turkic nomadic tribes from the north, including Khazars and Huns. Outside influence reappeared in the 7th and 8th centuries, when Arabs conquered much of Transcaucasia. As their influence receded, a number of small local states were established, the best known of which was the Shirvanshahs.

In the 11th century Azerbaijan was invaded by Oguz Turks, of the Seljuk dynasty. By the 13th century the gradual displacement of pre-Turkic local languages was complete, although many traces of non-Turkic predecessors remain in the Azerbaijani language. Persian, however, remained the language of art, science, and education.

In the 1230s Azerbaijan was conquered by Genghiz Khan, whose power remained in the Il-Khanid state, which at the end of the 14th century was displaced by the armies of Tamerlaine. In the 16th century, the Safawid state emerged, coming to control most of the land between the Syr Darya and the Euphrates, and reestablishing agriculture and commerce destroyed under the Mongols. In the 17th century, the Safawids became Persianized, which made present-day Azerbaijan decline in importance.

In the 18th century Azerbaijan became the intersection of the Turkish, Persian, and Russian empires, as well as the focus of British and French attempts to block Russian expansion. The northern part of the territory was incorporated into Russia in the first third of the 19th century, but the area did not become important until the 1880s, when the area's abundant oil gained commercial importance. The southern portion of what was originally Azerbaijan has remained in Iran, except for the period 1941–46, when it was occupied by Soviet troops.

When the 1917 Russian revolution came, Ottoman Turkish troops moved into Azerbaijan, and later British forces controlled the capital, Baku. The Azerbaijani Musavat, or Equality Party, established a government, declared Azerbaijan's independence, and received diplomatic recognition from several states. Azerbaijan was invaded by the Russian Bolsheviks' Red Army in April 1920, and Azerbaijan was declared a Soviet state. In 1922 it was made part of the Transcaucasian Federated Socialist Republic, along with Georgia and Armenia. That was dissolved in 1936, when the three states were each made into separate Soviet Socialist Republics.

In 1988, calls by ethnic Armenians living in Azerbaijan's Nagorno-Karabakh (NK) region to be incorporated into the Armenian republic led to open conflict, which lasted until 1994. This pre-dominantly Armenian area had been unsuccessfully claimed by the Armenians in the 1920s, at the time of the creation of Soviet Azerbaijan. Inability to solve the NK conflict was one of the problems that ultimately brought down Mikhail Gorbachev and broke apart the USSR. Ethnic and civil violence in January 1990 prompted the occupation of Baku by Soviet armed forces and Moscow's replacement of Abdulrakhman Vezirov with Ayaz Mutalibov as republic head. During this period of martial law, the legislature elected Mutalibov as president in May 1990. Independence was declared on 30 August 1991, and Mutalibov was reaffirmed as president in a popular, uncontested election in September 1991.

In December 1991, NK's Armenians held a referendum (boycotted by local Azerbaijanis) that approved NK's independence and elected a Supreme Soviet, which on 6 January 1992, declared NK's independence and futilely appealed for world recognition. Following a late February 1992 massacre of Azerbaijani civilians in the town of Khojaly in NK, Mutalibov was accused of failing to protect Azeri citizens and forced by the nationalist oppositionist Azerbaijani Popular Front (APF) and others to resign as president. His replacement, legislative head Yakub Mamedov, was also forced to resign in May 1992, in the face of further Azerbaijani military defeats in NK. Mutalibov was then reinstated by loyalists in the Supreme Soviet, but he had to flee two days later, when the APF seized power. Former Soviet dissident and APF leader Abulfaz Elchibey, was elected president in a popular contest in June 1992.

The nationalist government took several moves to cut its ties to Russia, including demanding the withdrawal of Russian troops, refusing to participate as a member of the Commonwealth of Independent States, negotiating with Western firms to develop its oil resources, and improving relations with Turkey. However, military losses in NK increased. In 1993, Heydar Aliyev, who had been the Communist Party leader of the republic from 1971–85 but then was ousted and disgraced by Soviet leader Mikhail Gorbachev, began to press for Elchibey's dismissal.

An abortive attempt by the Elchibey government in June 1993 to disarm paramilitary forces in the town of Ganja precipitated the fall of the government and provided the opportunity for Aliyev to regain power. These forces were led by Suret Huseynov, formerly in charge of troops in NK, who had been fired by Elchibey. Huseynov's forces, supplied with Russian equipment, defeated an Azerbaijani Army attack and began to march on Baku. His government in chaos, Elchibey invited Aliyev to come to Baku, and on 15 June, he endorsed Aliyev's election by the legislature as its new speaker. Elchibey fled to the Nakhchiveni Autonomous Republic (NAR) on 17 June. On 24 June 1993, a bare quorum of legislators met and formally stripped Elchibey of presidential powers, transferring them to Aliyev. Huseynov demanded and was given the post of prime minister.

On 3 October 1993, Aliyev was elected president with 98.8% of the vote. The referendum and election were viewed as not "free and fair" by many international observers because of suppression of APF and other opposition participation. In late September 1994, police and others in Baku launched a purported coup attempt. Aliyev darkly hinted at Russian involvement. After defeating the coup attempt, Aliyev also accused Prime Minister Huseynov of major involvement, and Huseynov fled the country. Other coup attempts were reported in 1995 and 1999. All of the alleged coup attempts triggered mass arrests of Aliyev's opponents.

On 11 October 1998, incumbent President Aliyev defeated five other candidates and was elected to a second five-year term, receiving over 76% of 4.3 million votes cast. The major "constructive opposition" candidate running was Etibar Mamedov of the National Independence Party (NIP), who received 11.6% of the vote. Most international observers judged the vote not "free and fair," citing myriad irregularities, though also noting that the election marked some improvement in political pluralism.

The conflict with Armenian separatists over its Nagorno-Karabakh region continues to plague Azerbaijan. Azerbaijan asserts that NK forces occupy over 20% of Azerbaijan's territory both in and around NK. The conflict has resulted in about 30,000 casualties on both sides and over 840,000 Azerbaijani refugees and displaced persons (and over 300,000 Armenians). The Organization for Security and Cooperation in Europe (OSCE) began the "Minsk Group" peace talks in June 1992. A Russian-mediated ceasefire was agreed to in May 1994 and was formalized by an armistice signed by the ministers of defense of Armenia and Azerbaijan and the commander of the NK army on 27 July 1994 (and reaffirmed a month later). Moscow talks were held by the sides, with token representation by the OSCE, along with Minsk Group talks. With strong US backing, the OSCE at its Budapest meeting agreed in December 1994 to send OSCE peacekeepers to the region under UN aegis if a political settlement could be reached. Russia and the OSCE assented to merge their mediation efforts. France was nominated as a cochair in 1996. This elicited criticism from Azerbaijan that the French had appeared pro-Armenian, leading to the seating of US, French, and Russian cochairs. (Many Azerbaijanis also have voiced reservations about Russia's objectivity as a mediator, citing its defense ties to Armenia.) Direct Armenian-Azerbaijani contacts by the presidents and advisors have also occurred.

Prospects for a negotiated settlement remain elusive because the sides remain far apart on most substantive issues such as the placement and composition of a peacekeeping force and NK's ultimate political status. Personal meetings by the two presidents raised hopes that a statement of intention could be issued at the November 1999 OSCE Summit, but events such as resignations of some Azerbaijani officials apparently opposed to NK proposals, Aliyev's infirmity, and October 1999 assassinations in Armenia appeared to set back progress.

Peace talks between Armenia and Azerbaijan were held in Paris and Florida in 2001, but by December 2002, Lieutenant General Seyran Ohanian, commander-in-chief of the armed forces of NK, warned Azerbaijan that the enclave's army was "better prepared than ever before" and "ready to repulse the enemy" and carry out a successful counteroffensive should conflict begin. President Aliyev in September 2002 told representatives of the Minsk Group that "the people's mood is changing. They are starting to lose hope in a peaceful solution and are coming to the view that we have to recover our land ourselves by whatever means necessary…It has been…nearly ten years since the Minsk Group was created. How much longer can we go on talking about a peace settlement?"

In 2001, the United States lifted a ban on aid imposed during the NK conflict after Azerbaijan provided airspace and intelligence to the United States following the 11 September 2001 terrorist attacks.

In September 2002, construction began on a multibillion-dollar pipeline to carry Caspian oil from Azerbaijan to Turkey via Georgia (the Baku-Tbilisi-Ceyhan pipeline, otherwise known as the BTC).

The government held a referendum on 24 August 2002 to approve 39 changes to the constitution. Some of the major articles at issue were the abolishment of the proportional system of election of deputies to the national parliament; making the prime minister, not the speaker of the parliament, a caretaker president in case the president is not able to carry out his duties; and giving lower level courts the right to ban political parties. Opposition leaders argued that abolishment of the proportional system would damage the multiparty system in the country and further strengthen the ruling elite. In addition to this, the opposition claimed that President Aliyev intended to appoint his son Ilham prime minister and then retire, thus paving the way for his son to become the next president. President Aliyev also approved adding a provision to the Law on State Secrets, which would make editors and journalists of local mass media accountable for disseminating state secrets. The government claimed that there was nearly 100% support for the constitutional changes with 88% voter turnout, while opposition groups stated turnout was closer to 15%, which would render the vote invalid. Demonstrators called for the resignation of President Aliyev and for holding free and fair elections. Supporters of more than 30 opposition parties, including the major parties Musavat, the Popular Front, the Azerbaijan Democratic Party, and the Azerbaijan National Independence Party, held marches on 14 September 2002 urging the authorities to cancel the results of the referendum. On 27 October and again on 24 November of that year, the opposition parties marched again under the banner of the United Opposition Movement, claiming that over 50,000 people participated in the marches.

In August 2003, Aliyev appointed his son Ilham prime minister. In October, Ilham Aliyev won a presidential vote by a landslide in a poll outside observers declared not meeting international standards, which sparked opposition protests. These were met by police violence; hundreds were arrested. In December, Heydar Aliyev died in a hospital in Cleveland, Ohio, in the United States; he had been suffering from heart and kidney problems.

In March 2005, outspoken opposition journalist Elmar Huseynov was shot and killed in Baku; thousands of Azerbaijanis mourned his death. After months of preelection tension and the suppression of riots, voters cast their ballots for parliament on 6 November 2005. The ruling Yeni Azerbaijan Party declared victory, while leaders of Azadliq ("Freedom"), a three-party opposition bloc, said the official results were a sham, and the races were tainted by fraud, falsification, and police action. During the campaign, beatings of demonstrators, arrests of opposition figures, and the continued use of government resources for its candidates took place. After the elections, thousands of opposition members protested the fraudulent elections, and the Azeri government was forced—in part by intense diplomatic pressure—to undo some of the most obviously falsified results, by firing two regional governors for interfering with vote counts, annulling the results for five parliamentary seats, and dismissing several election officials and opening criminal cases against them, in addition to carrying out investigations of complaints. The official results showed the Yeni Azerbaijan Party winning 58 parliamentary seats and the Azadliq bloc only 11. The rest were scattered among small parties and independents. Tens of thousands of citizens staged peaceful protests on 26 November 2005, calling on President Ilham Aliyev to resign, and chanting "freedom"; the protests were broken up by the police, who beat many of the participants.

GOVERNMENT

Azerbaijan is a republic with a presidential form of government. Heydar Aliyev assumed presidential powers after the overthrow of his popularly elected predecessor and was elected president in 1993. Aliyev and his supporters from his home region of Nakichevan and elsewhere dominated the government and the legislature. Aliyev's son Ilham was elected president in October 2003; Heydar Aliyev died in December 2003.

The Azerbaijani constitution was approved by 91.9% of voters in a referendum held in November 1995. It establishes a strong presidency, sets up a new 125-member legislature (the Milli Mejlis), declares Azerbaijani the state language, proclaims freedom of religion and a secular state, stipulates ownership over part of the Caspian Sea, and gives Nakhchiveni Autonomous Republic (NAR) quasi-federal rights. The president appoints and removes cabinet ministers (the Milli Mejlis consents to his choice of prime minister), submits budgetary and other legislation that cannot be amended but only approved or rejected within 56 days, and appoints local officials. It is extremely difficult for the Milli Mejlis to impeach the president. The transition to democracy has been impeded by government efforts to hinder the opposition. In NK, political turmoil and war damage have slowed development, and ethnic Azerbaijanis are prevented from returning to the region and surrounding areas by the lack of a peace settlement.

In June 2002, the Constitutional Court ruled that changes to the constitution proposed by President Heydar Aliyev did not conflict with the principles of Azerbaijan's basic law. One major change in the constitution concerned what happens if the president retires or becomes incapacitated. Prior to the 24 August 2002 referendum, under the constitution's Article 105, the speaker of parliament assumed the president's duties. Under the new rule, the prime minister, who is appointed by the president and is responsible to him, not the legislature, assumes presidential powers. An amendment to Article 101 changed the threshold for a candidate to be elected president in the first round of voting, from two-thirds to a simple majority. Members of the Milli Mejlis were previously elected on the basis of majority and proportional election systems under Article 83 of the constitution. Under the new provisions, proportional party lists were eliminated and deputies are elected only through winning majorities in districts. Changes to Article 3 forbid holding a referendum on issues that fall under the scope of executive institutions, such as taxes, the state budget, amnesties, elections and appointments to executive positions.

In the November 1995 election, 25 of the seats were allocated through a proportional party list vote and 100 through single-member district balloting. Eight parties were allowed to take part in the party list voting in the legislative elections, but only the Azerbaijani Popular Front (APF) was clearly an anti-Aliyev party. These were the Yeni (New) Azerbaijan (YAP), APF, Azerbaijan Democratic Independence (ADIP), National Independence (NIP), Azerbaijan Democratic Proprietors (ADPP), Motherland, Azerbaijan National Statehood (NSPA), and Alliance for Azerbaijan parties. Aliyev's YAP won most seats in the legislative races. The elections were marred by the harassment and exclusion of most opposition parties and candidates from participation and by rampant irregularities such as the open stuffing of ballot boxes, according to international observers. Some observers stressed that the elections marked some progress in holding a multiparty vote. Heydar Aliyev's YAP candidates ran unopposed in many electoral districts because of the exclusion of opposition candidates. Campaign advertising by most parties was severely restricted on state-owned television, while Heydar Aliyev received extensive positive coverage. Legislative elections held in November 2000 saw the NAP and its allies win 108 out of 125 seats in the Milli Mejlis in elections that were criticized by international observers. The APF took the next highest number of seats with 6.

The next legislative elections were held in November 2005. Due to the 2002 changes in the constitution approved by referendum, all 125 members of parliament were elected from single mandate constituencies. Amid accusations of fraud and public demonstrations, the government's official results showed the YAP winning 58 seats; the Azadliq ("Freedom") bloc won only 11 seats, and the rest were awarded to independents and split among the smaller parties.

POLITICAL PARTIES

Some three dozen parties are registered, but some opposition parties have been arbitrarily refused registration. Some parties that are deemed explicitly ethnic or religiously based also have been refused registration. Under election legislation passed after Heydar Aliyev's accession, a party must have at least 1,000 members to be legally registered. Party membership is forbidden to government officials in agencies of the judiciary, law enforcement, security, border defense, customs, taxation, finance, and the state-run media. Six pro-Aliyev parties participated in the 1995 legislative party list vote, including Yeni Azerbaijan (YAP; formed in November 1992), Azerbaijan Democratic Independence (ADIP; broke off from NIP in late 1993), Motherland (formed in 1990), and the Democratic Entrepreneurs' Party (formed in 1994). Only the YAP gained enough votes to win seats in the party list vote (though these other parties won seats in constituency balloting). Two centrist or opposition parties participated and won seats in the party-list voting: the Azerbaijan Popular Front (APF—formed in 1988) and National Independence Party (NIP; broke off from APF in early 1992). Opposition parties excluded from the party list ballot included Musavat (formed in 1912). All parties are small; YAP is the largest. YAP, formed by Aliyev, encompasses many of his former Azerbaijani Communist Party (ACP) supporters. The APF was at the forefront of the nationalist and anticommunist movement and its chair, Abulfaz Elchibey, was elected president in 1992. With Heydar Aliyev's return to power, APF members and officials were arrested and harassed. NIP views itself as a moderate nationalist party in "constructive opposition" to Aliyev. Musavat has supported close ties with Turkey and has cooperated on some issues with the APF. The pro-Iranian Islamic Party was stripped of its registration in 1995. Preparing for the 1998 presidential race, in March 1998, 46 pro-government political parties and groups formed the Center for Democratic Elections (CDE). Five prominent opposition political leaders and others formed the Movement for Democratic Elections and Electoral Reform (MDEER) in May 1998: Elchibey (the AFP), Isa Gambar (Musavat), Lala Shovkat Hijyeva (Azerbaijan Liberal Party or ALP), former speaker Rasul Guliyev, and Ilyas Ismayilov (Democratic Party of Azerbaijan). The Democratic Party finally achieved registration in early 2000, but co-leader Guliyev remained in forced exile.

Other political parties include the Civil Solidarity Party (CSP), Civic Union Party, Compatriot Party, Justice Party, Liberal Party of Azerbaijan, and the Social Democratic Party of Azerbaijan (SDP). Opposition parties regularly factionalize and form new parties. The opposition bloc that fielded candidates in the November 2005 parliamentary election was called Azadliq ("Freedom").

Heydar Aliyev died in December 2003. Prior to his death he had appointed his son Ilham prime minister. In October 2003 Ilham Aliyev was elected president to succeed his father.

LOCAL GOVERNMENT

Soviet-era Azerbaijan was subdivided administratively into one autonomous republic, Nakhichevan, an area separated from the rest of Azerbaijan by a thin strip of Armenian territory, which had its own parliament of 110 members; and an autonomous region, Nagorno-Karabakh (NK). Azerbaijan dissolved NK's status as an autonomous region in November 1991 in an attempt to reassert central control. NK has claimed an independent existence since December 1991, and a swath of territory around it has been occupied by NK Armenian forces. Azerbaijan has 59 districts (rayons ) and 11 cities, whose executive heads or mayors are appointed and dismissed by the president. Although the constitution called for the local election of legislative assemblies (councils) by the end of 1997, these elections did not take place until December 1999 (with runoffs in some municipalities in March 2000). In these races, nearly 2,700 municipal and district assemblies were formed. Some 36,000 candidates contested for 22,087 seats in these assemblies. Of these candidates, 18,000 were sponsored by 26 political parties, while others run as independents. The election was not viewed by many international monitors as "free and fair" because of government interference in the electoral process, including the stacking of territorial and precinct electoral commissions with members of the ruling party and other local government supporters, the harassment or disqualification of opposition candidates, and ballot box stuffing. Many of the local assemblies found it difficult to begin work because their roles were somewhat unclear and local executive heads, appointed by Heydar Aliyev, proved somewhat reluctant to share power.

Local elections were held once again in December 2004. In all, 38,041 candidates competed to contest 21,622 seats on 2,731 municipal councils. More than 22,000 of the candidates were registered Yeni Azerbaijan Party (YAP) members. Thirty other parties registered only 2,347 candidates. The major opposition parties, with the exception of the NIP, boycotted the vote. Voting irregularities were reported by outside observers. The YAP maintained its political monopoly in the municipal councils.

JUDICIAL SYSTEM

The old Soviet court system has been essentially retained, consisting of district courts and municipal courts of first instance and a Supreme Court which usually performs the function of appellate review. However, the Supreme Court also performs the function of court of first instance for some serious cases. District courts consist of one judge and two lay assessors and hear criminal, civil, and juvenile cases. Criminal defendants have the right to an attorney and to appointed counsel, the right to be present at trial, to confront witnesses, and to a public trial.

The 1995 constitution provides for public trials in most cases, the presumption of innocence in criminal cases, and a defendant's right to legal counsel. Both defendants and prosecutors have the right of appeal. In practice, however, the courts are politically oriented, seeming to overlook the government's human rights violations. In July 1993, Heydar Aliyev ousted the Supreme Court chief justice because of alleged political loyalties to the opposition. The president directly appoints lower level judges. The president also appoints the Constitutional Court and Supreme Court judges with confirmation by the legislature.

Prosecutors (procurators) are appointed by the president with confirmation by the legislature. The minister of justice organizes prosecutors into offices at the district, municipal, and republic levels. The constitution provides equal status for prosecutors and defense attorneys before the courts, but in practice the arrest and investigatory powers of the prosecutors have dominant influence before the courts. Judges will often remand a case for further prosecutory investigation rather than render an innocent verdict. Investigations often rely on obtaining confessions rather than on gathering evidence.

The Azerbaijan government's human rights record is poor, although some public policy debate is allowed and human rights organizations operate. The government restricts freedom of assembly, religion, and association. Numerous cases of arbitrary arrest, beatings (some resulting in deaths), unwarranted searches and seizures, and other human rights abuses are reported. Political oppositionists are harassed and arrested, and there are dozens of political prisoners in Azerbaijan. The conflict between NK Armenians and Azerbaijanis contributed to widespread human rights violations by both sides. Some opposition newspapers are allowed to exist. Ethnic Lezgins and Talysh have complained of human rights abuses such as restricted educational opportunities in their native languages.

ARMED FORCES

Azerbaijan had 66,490 active personnel in its armed forces in 2005. Reserves included 300,000 members who had been in the military within the past 15 years. The Navy numbered 1,750 active personnel, which operated 6 patrol/coastal craft, 5 mine warfare vessels, 4 amphibious landing craft, and 2 logistics/support vessels. The Army consisted of 56,840 personnel with equipment that included 220 main battle tanks, 127 armored infantry fighting vehicles, 468 armored personnel carriers, and 270 artillery pieces. The Air Force and Air Defense services had a combined 7,900 active personnel with 47 combat capable aircraft, including 37 fighters, 15 fighter ground attack aircraft, and 15 attack helicopters.

Azerbaijan also had an estimated 15,000 people serving in two separate paramilitary units: a 10,000 plus militia; and a border guard with an estimated strength of 5,000. The defense budget for 2005 was $310 million.

INTERNATIONAL COOPERATION

Azerbaijan was admitted to the UN on 2 March 1992 and serves on several specialized agencies, such as the FAO, IAEA, IFC, ILO, IMF, UNESCO, and the World Bank. The country is also a member of the Black Sea Cooperation Group (BSEC), the Asian Development Bank, Council of Europe, OSCE (1992), EBRD, Economic Cooperation Organization (Turkey, Iran, Pakistan, Russia, the Central Asian states, and Afghanistan), the Islamic Development Bank, the Organization of the Islamic Conference, and the European-Atlantic Partnership Council. The country is also a member of the CIS and has observer status in the WTO. Azerbaijan is part of the group known as GUUAM (Georgia, Uzbekistan, Ukraine, Azerbaijan, Moldova). The group was formed in 2001; Uzbekistan withdrew in 2005.

The OSCE continues to mediate in the struggle between the Azerbaijani government and the ethnic Armenians of the Nagorno-Karabakh region. While Azerbaijan claims sovereignty over the region, the predominantly ethnic Armenian inhabitants are fighting for secession into Armenia.

In environmental cooperation, Azerbaijan is part of the Basel Convention, the Convention on Biological Diversity, Ramsar, CITES, the London Convention, the Kyoto Protocol, and the Montréal Protocol.

ECONOMY

Azerbaijan is one of the oldest oil-producing regions of the world. Here in ancient times the Zoroastrians, for whom fire was a sacred symbol, built temples around the "eternal fires" of burning gas vents. At the beginning of the 20th century, as international competition increased in the first great era of economic globalization, Azerbaijan was supplying almost half of the world's oil. As a constituent republic of the USSR it was a leading supplier to the rest of the Union until the focus of Soviet oil development efforts shifted to the Ural mountains and western Siberia during the 1970s and 1980s. Remaining oil reserves are estimated in the BP statistical review of world energy for 2002 to be about 7 billion barrels. For oil, its reserve to production ratio (R/P ratio) of 64.3 is topped only by Saudi Arabia and Iran. Proven reserves of natural gas are estimated at 440 billion cu m (15.5 trillion cu ft). In addition, the country is endowed with ample deposits of iron, aluminum, zinc, copper, arsenic, molybdenum, marble, and fire clay.

Azerbaijan boasts a diversified industrial sector that accounts for approximately a third of GDP (2000 est.) up from less than a fifth in 1998, and 15% of employment (including construction), a figure that has remained unchanged. Agriculture, which employs about 40% of the labor force and accounts for 20% of GDP (including forestry), also rests on a relatively diversified base, producing cotton, tobacco, grapes, and a variety of foodstuffs. The transport sector is well developed, integrating the country's various regions and facilitating both domestic and external trade.

Despite its economic potential, Azerbaijan has been slow in making the transition from a command to a market economy. Large state companies continue to dominate the economy and below-market price controls still cover many key commodities. The war with Armenia has also slowed economic growth by disrupting trade ties and draining government revenues. In 1992, Azerbaijan implemented an economic blockade against both Armenia and the enclave of Nagorno-Karabakh, which is still in effect despite the ceasefire reached in 1994. In 1992 the United States passed Section 907 of the Freedom Support Act, restricting assistance to Azerbaijan until "demonstrable steps" were taken to lift the embargo and cease offensive actions. In January 2002, however, US president George W. Bush waived Section 907 purportedly due to Azerbaijan's support of the US-proclaimed War on Terror. In August 2002, CCC, a Greek-based construction and project management firm, won the tender for laying pipes for the Baku-Tbilisi-Ceyhan (BTC) oil pipeline officially approved September 2002 and scheduled to go into operation in 2005. Trade has traditionally been with Russia and the former Soviet republics and the economy is still greatly affected by events in those countries.

In 1994, Russia, citing its own conflict in Chechnya, closed all rail and road borders with Azerbaijan. Cut off from its major source of production inputs and main outlet for manufactured projects, Azerbaijan's industrial production fell by more than 20% in 1995. Overall, it is estimated that from 1991 through 1995 the economy declined by about 60%. Recently, Azerbaijan has begun to shift trade to Iran and Turkey and away from Russia and Ukraine. The BTC pipeline is designed to avoid Russia. Foreign investment, the majority in hydrocarbons, began a period of steady growth in the late 1990s, and in 2001 the economy registered its fifth straight year of real GDP growth. For 1999 to 2001, based on data supplied by the government of Azerbaijan, growth rates were 7.2%, 11.1% and 8.5%, respectively, with a forecast of about 9% (US State Department estimate) for 2002. Nevertheless, the country's GDP is not expected to reach its 1991 level until 2007.

Localized fighting with Armenia broke out in the spring of 1997 and in the summer of 1999, and efforts to reach a peace agreement have failed to date. The prospects for long-term economic growth have been significantly enhanced in 2002, however, by the cutting of one Gordian knot: the official sanctioning in September 2002 of the BTC pipeline from Baku to the Turkish Mediterranean, which has been pending since the country's first production sharing contract (PSC) was agreed to in 1994 with the Azerbaijan International Operating Company (AOIC). The AOIC is an international consortium of companies headed by British Petroleum (BP) as operator with a plurality share of 34.1% share. Actual construction on the BTC pipeline began in 2002. Azerbaijan's second PSC, signed and ratified in 1996, for the Shah Deniz gas pipeline involving another consortia headed by BP (with 25.5% and also designated operator) and Norway (Statoil with 25.5%) more typically failed to be sanctioned in October 2002 as planned due to problems sorting out finance. Azerbaijan's economic development will ultimately depend on the diversification of its production for export, but in the near future the prospect is for the increasing dominance of the hydrocarbon sector as a percent of GDP and as a percent of exports.

In 2004, the GDP was $30 billion, an improvement of 10.2% over the previous year. Estimates of the Economist Intelligence Unit show that the GDP growth rate will reach 21% in 2005, and a whopping 25% in 2006, as a result of increased oil and gas exports. Official unemployment has remained fairly stable at around 1.2%, but it is believed that part of the working population is "technically" unemployed or working for the gray market. Inflation has been fluctuating, but at 6.7% in 2004 it is not a major source of concern.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 Azerbaijan's gross domestic product (GDP) was estimated at $36.5 billion. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $4,600. The annual growth rate of GDP was estimated at 18.3%. The average inflation rate in 2005 was 12%. It was estimated that agriculture accounted for 14.1% of GDP, industry 45.7%, and services 40.2%.

According to the World Bank, in 2003 remittances from citizens working abroad totaled $171 million or about $21 per capita and accounted for approximately 2.4% of GDP. Foreign aid receipts amounted to $297 million or about $36 per capita and accounted for approximately 4.4% of the gross national income (GNI).

The World Bank reports that in 2003 household consumption in Azerbaijan totaled $4.51 billion or about $548 per capita based on a GDP of $7.1 billion, measured in current dollars rather than PPP. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings. It was estimated that for the period 1990 to 2003 household consumption grew at an average annual rate of 5.4%. In 2001 it was estimated that approximately 51% of household consumption was spent on food, 16% on fuel, 9% on health care, and 2% on education. It was estimated that in 2002 about 49% of the population had incomes below the poverty line.

LABOR

In 2005, there were an estimated 5.45 million workers in the labor force. As of 2001 (the latest year for which data was available), agriculture and forestry accounted for 41% of employment, industry 7%, and the services sector 52%. As of 2005, the nation's unemployment rate was officially put at 1.2%.

The constitution provides for the right to form labor unions, but in practice this right is limited and unions are generally not effective in wage negotiations. Collective bargaining is at a rudimentary level. Wages are still set by government ministries for organizations within the budget. Most major industries are state-owned and the government runs the largest industrial and white-collar unions. Uniformed police, military, and customs personnel are prohibited from forming unions, and trade unions may not participate in political activity. The use of compulsory labor is limited to certain circumstances.

The minimum wage as of 2005, was $25 per month. However, the minimum wage is below the level needed to support a worker and family, nor is it effectively enforced. As a result, many rely upon outside income sources and the structure of extended families generally, to ensure a decent living. In addition, most workers earn in excess of the minimum wage. The legal workweek is 40 hours, although workers in dangerous occupations are limited to 36 hours per week. The maximum daily work shift is 12 hours, and lunch and rest periods are also required. There is a minimum working age of 16 with exceptions for children as young as 14 to work during vacations.

Although health and safety standards have been set by law, these rules are mostly ignored and inspections by the government were ineffective and weak. Workers who leave their jobs due to health and safety hazards, do so at the risk of losing their jobs.

AGRICULTURE

Some 24% of Azerbaijan's area was cultivated or considered arable in 2002. There are currently 59 agricultural regions in 10 geographic zones; the principal crops are grapes, cotton, and tobacco. Agriculture accounted for 21% of GDP in 2002.

Wheat production in Azerbaijan suffers from a number of problems common in the former Soviet Union, including inadequate production credit and lack of inputs. Most wheat is still produced on state farms, as privatization is only beginning. Production in 2004 amounted to 1,600,000 tons from 620,000 hectares (1,530,000 acres). Seed cotton production amounted to 135,685 tons in 2004, from a harvested area of 77,700 hectares (192,000 acres). Cotton production has been stagnant due to low producer prices, lack of incentives, and a shortage of both inputs and operating capital. Tobacco was grown on about 2,100 hectares (5,200 acres) in 2004; production totaled 6,518 tons.

During the Soviet period, some 1,200 state and cooperative farms existed. Since independence, former state-owned farms have become more productive, and private fruit and vegetable farming is increasing. Of the total crop production of 2004, grapes totaled 55,000 tons; cotton (lint), 40,000 tons; tomatoes, 420,000 tons; watermelons, 280,000 tons; sugar beets, 60,000 tons; hazelnuts, 20,000 tons; garlic, 20,000 tons; sunflower seeds, 18,000 tons; walnuts, 9,700 tons; and tea, 1,048 tons.

Grapes were grown across 10,000 hectares (25,000 acres) in 2004; wine production amounted to 52,800 tons that year. Azerbaijan has an expanding wine-producing industry whose wines have frequently won awards at international exhibitions.

ANIMAL HUSBANDRY

Azerbaijan has some 2.7 million hectares (6.7 million acres) of permanent pasture. The livestock population in 2004 included 16,878,000 chickens, 6,676,000 sheep, 1,934,000 cattle, 604,000 goats, 20,000 pigs, and 68,000 horses. Meat production in 2004 amounted to 145,500 tons, almost three-fourths of which was beef and mutton. In 2004, about 1,190,000 tons of cow's milk, 46,500 tons of eggs, and 12,100 tons of greasy wool were produced.

FISHING

The Caspian Sea is Azerbaijan's principal fishing resource. Commercial fishing traditionally centered on caviar and sturgeon. The total catch was 6,937 tons in 2003, primarily Azov sea sprat.

FORESTRY

About 13% of the land area consists of forests and woodlands. Soviet-era policies gave priority to high production and rapid growth at the expense of the environment. The State Committee for Ecology and Use of Natural Resources has introduced new regulations to protect forest resources. Roundwood production in 2003 totaled 14,000 cu m (494,000 cu ft), with 23% used for fuel wood.

MINING

Besides significant reserves of natural gas and petroleum, Azerbaijan has iron ore reserves near the disputed Nagorno-Karabakh region, and lead-zinc and copper-molybdenum deposits in the Nakhichevan area. Production of metallic and industrial minerals in 2002 included alunite (no figure was available for 2002, but 23,000 tons were produced in 2000. There is no recorded production in 2001), alumina (217,000 tons in 2000 and 91,000 tons in 2002), bromine, clays, gypsum (1,039 metric tons), iodine (300,000 kg), limestone, marble, sand and gravel, decorative building stone, and precious and semiprecious stones.

ENERGY AND POWER

At the turn of the 20th century, Azerbaijan accounted for half of the world's oil production. Oil wells have been operating in Baku since the 1840s. As of the early 21st century, almost all production came from offshore in the Caspian Sea. Azerbaijan was one of only four former Soviet republics (along with Russian, Kazakhstan, and Turkmenistan) to be self-sufficient in petroleum. However, production declined following the 1991 breakup of the Soviet Union until foreign investment provided the capital for new development, turning this trend around in 1998. Production rose from 194,000 barrels per day in 1998 to an average of 318,000 barrels per day in 2004.

According to industry journals and government sources, proven oil reserves as of 2004 totaled between 7 billion and 13 billion barrels. The State Oil Company of Azerbaijan (SOCAR) has planned for joint development of the offshore fields (which are now largely untapped) and has entered into several agreements to build oil pipelines. For instance, a project with the Caspian Pipeline Consortium would carry oil from the Caspian Sea to the Russian Black Sea port of Novorossiysk. Another deal with Turkey involved the construction of a 1,760-km (1,090-mi) pipeline, the symbolic first length of which was installed in September 2002, to carry crude oil from Baku to Ceyhan, Turkey. In 1995 Azerbaijan had 17 offshore oil fields in production. Guneshli, about 60 mi (96 km) off the Azeri coast, currently accounts for more than half the annual production. By the end of 2002, 33 companies in 15 foreign countries had signed agreements to develop 21 major oil fields in Azerbaijan. As of 2003 disputes over offshore oil rights in the Caspian Sea continued to hinder development of those reserves.

Natural gas production has become more important in recent years, especially in Baku, where some of the oil wells have been exhausted. Proven reserves as of late 2004 totaled 1.37 trillion cu m (48.4 trillion cu ft). Production of natural gas in 2004 totaled 4.6 billion cu m. Ukraine and Iran are interested in running a natural gas pipeline through Azerbaijan en route to Eastern Europe.

In 2003, net electricity generation was estimated at 19.5 billion kWh. In 2003, consumption of electricity was estimated at 19.8 million kWh. Total installed capacity at the beginning of 2001 was 5.1 million kW. Eight thermal plants supply more than 80% of capacity, and the rest comes from hydroelectric plants. The main power plants (both thermal) were near Ali-Bayramy (1,100 MW) and Mingechaur (2,100 MW).

Petroleum and natural gas resources are the basis for an extensive system of refineries, which produce gasoline, herbicides, fertilizers, kerosene, synthetic rubber, and plastics.

INDUSTRY

The oil and gas industry has traditionally been pivotal to the economy; in 1891, Azerbaijan produced more than half of the world's total oil production. In 2001 refinery production accounted for over 14.9% of total industrial production, second only to the 58.6% accounted for by the extraction of crude oil and natural gas, according the Azeri government statistics. Oil refining is concentrated in the Azerineftyag (Baku) refinery, with a capacity of 230,000 bpd, and the Azerneftyanajag (New Baku) refinery, with a capacity of 212,000 bpd.

The total domestic production of oil in 2001 was 311,200 bpd of which an estimated 175,200 bpd (56%) was exported, which left the two refineries operating well below capacity, with overall utilization rates as low as 40%. Both refineries are in need of modernization, which the government estimates will cost $600 million to $700 million. The US Trade and Development Agency financed a $600,000 feasibility study, awarded to ABB Lumas in January 2002, on upgrading the refineries and the specialized oil port of Dubendi.

Failure to replace worn and outdated technology as well as falling demand in the rest of the former USSR resulted in a steady decline in the production of oil products since the early 1980s. Total output averaged 185,000 bpd in 1995, as compared to 285,000 bpd in 1987, and has declined further since. Output of refined products in 2001 included heating oil (approximately 50%), diesel fuel (28%), gasoline (10%), motor oil (7%), kerosene (3%), and other products (3%). Petroleum production is situated in 40 deposits on land and 12 offshore deposits in the Caspian Sea.

The offshore Gunashli petroleum mining operation supplies half of the country's petroleum. As of June 2002, Azerbaijan had entered into 23 production-sharing agreements (PSAs) involving about 30 companies from about 15 countries involving 13 offshore fields, and 10 onshore fields. Only six—the offshore Azeri, Chirag, and deepwater Gunashli (ACG) field being developed by the AIOC consortium for connection to the Baku-Tbilisi-Ceyan (BTC) pipeline, and five relatively small onshore fields—were actually producing measurable daily output in 2002.

In line with the historic importance of the oil sector for the Azeri economy, the fabrication of equipment related to petroleum production had been one of the country's major industries. As a source of 70% of the former Soviet Union's oilfield equipment, it also held great importance for other oil-producing post-Soviet republics in the early years of the transition from Communism. Azerbaijan's petroleum equipment manufacturing industry comprised the second-largest concentration of such industries in the world (behind that of the United States). Like most other of the country's economic sectors, however, the industry was plagued by plant obsolescence. Industrial production and export statistics for 2001 indicate no manufacturing or export of oilfield equipment. On the contrary, the US Commercial Service has issued bulletins pointing to upwards of $10 billion in procurement opportunities in Azerbaijan for foreign suppliers of oil field equipment in the period 2002–05. In August 2002, CCC, a Greece-based construction and project management firm, won the contract for laying the pipeline for the Azeri portion of the BTC pipeline.

Other important industrial sectors in the Azeri economy include electrical power production (12.1% of total industrial production in 2001), chemicals (3.4%), food processing (3.2%), cars and other transport equipment (2.9%), and tobacco goods (1.6%), as well as various kinds of light manufacturing. As with fuel and oilfield equipment production, however, output in almost all of these sectors declined or stagnated in the 1990s due to the conflict with Armenia.

In aggregate terms, the real value of total industrial production in Azerbaijan dropped 21% in 1995, following already steep declines of 31% in 1992, 8% in 1991, and 17% in 1990. In 1998 total industrial production index registered its first year-on-year increase in the decade, moving from 28% of the 1990 level to 29%. By 2001 the index stood at 34% of the 1990 level, and it is estimated that pre-transition levels industrial output will not be achieved until 2007. Manufacturing, the main component in the industrial production index, is lagging the most. In 2001 it stood at only 24% of the 1990 level, whereas other components, namely, the extraction industry and utilities (electric, gas, and water), had reached 83% and 69%, respectively, of 1990 levels of output. A structural change is evidenced in the relative weights of production and refining actives in industrial production between 1997 and 2001. Refining declined from 34% to 14.9% of the total, while extraction increased from 31.2% to 58.6% in 2001. In 2001 total industrial production rose 5.1% over 2000.

In 2004, the industrial production growth rate was 4%, and industry accounted for more than 45% of the GDP, while employing only 7% of the working population; agriculture contributed 14.1% to the GDP, and employed 41% of the labor force; services came in second in terms of contribution to the economy (40.2%), but first in terms of employed labor force (52%).

SCIENCE AND TECHNOLOGY

The Azerbaijan Academy of Sciences in Baku has departments of physical engineering and mathematical sciences, chemistry, earth sciences, and biology; as of 1997, 19 science and technology-related research institutes were attached to it. The country has numerous other institutes conducting research in agriculture, medicine, and technology.

The Azerbaijan Technical University in Baku, founded in 1920, has faculties in automation and computing technology, electrical engineering, machine-building, automechanics, metallurgy, radio-engineering, robotics, and transport. Baku State University, founded in 1919, has faculties of mathematics, physics, chemistry, biology, geology, and geography. Azerbaijan also has five higher institutes offering courses in agriculture, medicine, petroleum engineering, engineering, and technology. In 1987–97, science and engineering students accounted for 37% of college and university enrollments. The Azerbaijan Scientific and Technical Library is located in Baku.

As of 2002, there were 1,248 researchers and 197 technicians actively engaged in research and development (R&D). R&D spending in that year totaled $81.045 million, of which 54% was by the government, 24.5% by higher education, and 21.1% by business. In 2002, high technology exports totaled $10 million or 8% of manufactured exports.

DOMESTIC TRADE

Despite the government's claims that it is moving towards a free market economy, government ownership is still common among large industries. Since independence, there has been an informal privatization of the trading sector as many small shops have sprung up throughout Azerbaijan. Private traders now handle most retail sales. Private business people see trade as relatively low risk in an environment where private ownership rights do not exist. Business and retail hours can vary according to the owner's preference; however, most businesses are open from 9 am to 6 pm, Monday through Friday. Many businesses and offices also have Saturday hours. Private transactions are primarily in cash. Credit cards are not generally accepted, except in major hotels and restaurants. An 18% value added tax applies to all goods and services.

FOREIGN TRADE

Like other post-Soviet economies, Azerbaijan is highly trade-dependent; however, it is endowed with a more diversified export

structure than many other former USSR countries, especially in neighboring Central Asia. While the centrally planned state ordering system is steadily losing its place as the basis for trade in the former Soviet Union, the Azeri Ministry of Foreign Economic Relations still controls the export of all products considered to be of strategic importance to the national economy.

Key to Azerbaijan's trade future will be the development and operations of a major oil pipeline out of the Caspian Sea. Currently, the construction of a major export pipeline to the Mediterranean is under way and scheduled for completion in 2005. Exports include oil and gas (84%), chemicals, oilfield equipment, textiles, and cotton. Imports include machinery and parts (32%), consumer goods, food, and textiles.

In 2004, exports totaled $3.2 billion (FOB—Free on Board) and mainly went to Italy (26.6%), the Czech Republic (11.9%), Germany (8.1%), Indonesia (6.4%), Romania (6.2%), and Georgia (6%). Imports were slightly higher at $3.6 billion, and they chiefly came from Russia (16.1%), the United Kingdom (12.5%), Turkey (10.5%), Germany (7.8%), and the Ukraine (5.6%).

BALANCE OF PAYMENTS

The war with Armenia in and around Nagorno-Karabakh had facilitated Azerbaijan's trade deterioration, which was further exacerbated by the collapse of the local currency. Reviving ruble-related trade links with Russia was a key reason for Azerbaijan's entry into the Commonwealth of Independent States in September 1992. In 1995 inflation fell and the currency was stable until it was devalued in 1999, causing inflation of 10% to 15%. The current account deficit was over one-third of GDP in 1998.

The US Central Intelligence Agency (CIA) reported that in 2002 the purchasing power parity of Azerbaijan's exports was $2 billion while imports totaled $1.8 billion resulting in a trade surplus of $200 million.

The International Monetary Fund (IMF) reported that in 2001 Azerbaijan had exports of goods totaling $2.08 billion and imports totaling $1.47 billion. The services credit totaled $290 million and debit $665 million.

Exports of goods and services totaled $3.7 billion in 2004, slightly higher than the imports ($3.6 billion). Estimates of the Economist Intelligence Unit see the exports almost tripling by 2007, with the imports stabilizing around $4.7 billion. Obviously, the increased oil production will be the main engine of this growth. The current account balance was -$2.6 billion, but is expected to go into the positive by 2006. Reserves of foreign exchange and gold reached $875 million in 2004, covering almost three months of imports.

BANKING AND SECURITIES

The National Bank of Azerbaijan is the central bank of Azerbaijan. The central bank is charged with regulating the money supply, circulating currency, and regulating the commercial banks of the country. However, the banking system in Azerbaijan is minimal and ineffective. An estimated $1 billion is held in cash or outside the banking sector, a considerable amount in comparison with the scope of the country's entire economy.

There are approximately 70 foreign and local banks in Azerbaijan. Of the four state-owned banks, only the International Bank of

Azerbaijan (IBA) was solvent in 1999. The IBA was in the process of being privatized in that year. Major commercial banks include the Promtekhbank, Azakbank, Azerdemiryolbank, Bacobank, Gunay International Bank, Halgbank, ILKBANK, and the Universal Bank. Most businesses use the IBA, or the British Bank of the Middle East, Baku.

The central bank increased the minimum bank capital to $1.5 million in 1999, and expected to increase the figure to $3 million in 2001 (the latest year for which data was available), effectively consolidating the sector. The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $363.6 million. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $738.5 million. The discount rate, the interest rate at which the central bank lends to financial institutions in the short term, was 10%.

The Baku Stock Exchange, known as the BSE, opened in 2001 trading short-term treasury bonds and the common stock of recently privatized state-owned enterprises. Trading volume in the first six months was just under $1 million. A regulatory framework for the new exchange is under development and is expected to conform to international transparency standards.

INSURANCE

As of 1995, at least 14 insurance companies were doing business in Azerbaijan.

PUBLIC FINANCE

Since 1996, the Azerbaijani government has emphasized privatization as a means towards consolidation of the public debt and revitalization of the economy. Over 70% of all parastatals are set to be privatized; more than 20,600 companies were privatized during 1997 and 1998. Foreign investment was encouraged, especially in the oil sector, however the diversification needed for long-term growth is lacking. The budget deficit in 2001 was a mere 0.5% of GDP.

The US Central Intelligence Agency (CIA) estimated that in 2005 Azerbaijan's central government took in revenues of approximately $31.8 billion and had expenditures of $29.8 billion. Revenues minus expenditures totaled approximately $28.8 billion. Public debt in 2005 amounted to 13.9% of GDP. Total external debt was $2.253 billion.

The International Monetary Fund (IMF) reported that in 1999, the most recent year for which it had data, central government revenues in billions of manat were 3,380.2 and expenditures were 4,260.9. The value of revenues in millions of US dollars was $1 and expenditures $1, based on a official exchange rate for 1999 of 4,120.17 as reported by the IMF. Government outlays by function were as follows: general public services, 32.3%; defense, 11.1%; public order and safety, 11.3%; economic affairs, 8.5%; health, 0.8%; recreation, culture, and religion, 1.3%; education, 3.2%; and social protection, 33.1%.

TAXATION

On 1 January 2001, a new tax code went into effect. Personal income rates remained the same, at rates ranging from 12–35%, as did the corporate tax rate, at 27%. However, as of 2005, the corporate rate was set at 24%. The revised depreciation schedule for corporate assets favors investments in high-tech equipment and oil and gas exploration. Depreciation rates are 10% a year for buildings, 25% a year for equipment and computers, 25% for geological and exploratory costs, and 20% a year for all other assets. However, accelerated depreciation is allowed for capital spending allocated for production purposes at twice the standard rates. Included in this are expenditures on the building of those facilities that are to be used in the actual manufacture of goods. The value-added tax (VAT) was reduced from 20% to 18%, while the property tax was raised from. 5% to 1% of assessed value. A. 05% Road Fund Tax on turnover was abolished, but there is a highway tax imposed on foreign-registered vehicles collected by customs authorities. There are payroll taxes paid by the employer amounting to 32%, 30% going to the Social Protection Fund, and 2% going to the Employment Fund. There are excise taxes, but excise paid for goods used in production can be offset against excise charged for the finished product. In 2001, total government revenue came to an estimated 21.4% of GDP, while total expenditures, including net lending, amounted to only 20% of GDP, producing a positive fiscal balance equal to 1.4% of GDP.

CUSTOMS AND DUTIES

Tariffs are set at 15%, 5%, 3%, or 0.5%. Most goods carry the 15% import customs duty. Capital goods and some primary goods are exempt. There is also a 20% value-added tax on certain imports. A dividend withholding tax of 15% is applicable to monies sent abroad.

In 1992, Azerbaijan signed trade agreements with all the republics of the former USSR except Armenia and Russia. Azerbaijan joined the Commonwealth of Independent States (CIS) in September 1993 and acceded to the CIS economic union treaty the same year. Azerbaijan is a member of the Economic Cooperation Organization. In 1999, Azerbaijan entered into a Partnership and Cooperation Agreement with the European Union and was seeking membership in the World Trade Organization, but as of 2003 has not yet received it.

FOREIGN INVESTMENT

Foreign investment plays a major role in financing the development of much of Azerbaijan's industrial sector, especially the oil and gas-related industries. The 1992 Law on Foreign Investment provided many basic guarantees to foreign investors, including nondiscriminatory treatment, the repatriation of profits, guarantees against expropriation, and dispute settlement. The Privatization Law passed in 1995 allowed foreign investors to acquire shares in state companies and purchase real estate jointly. Starting in 1997, foreign tax privileges were revoked. As of 1999, foreign investors were required to obtain a license and pay a fee in order to open business in Azerbaijan.

Only about 100 joint venture projects were registered by mid-1992; these were dominated by Turkish firms and involved primarily in trade and textiles. In the oil sector, preliminary agreements were signed with US, Scottish, British, and other foreign companies for the exploration and development of several major oil fields in the Caspian Sea. In 1992, Azerbaijan joined a consortium with Oman, Kazakhstan, and Russia aimed at constructing a pipeline through Armenia, Iran and Turkey, or Georgia. Little action was taken on these agreements, due to heightened political tensions. The Azerbaijan International Operating Company (AIOC), led by BP Amoco, signed an $8 billion contract in 1994 to exploit oil reserves at Azeri, Chirag, and Guneshli (ACG). Foreign direct investment leapt from only $30 million in 1994 to over $1 billion in 2002 (about 17% of GDP), with approximately 90% of FDI concentrated in the hydrocarbons sector.

Although the US government had banned public aid to Azerbaijan in 1992, US investors played a large role in exploiting Azerbaijani oil reserves, increasingly so since January 2002 when the Bush administration waived the ban on public assistance (due to Azerbaijan's trade embargo against Armenia and Nagorno-Karabakh) because of Azerbaijan's support in the War on Terror. In the energy sector, by June 2002, the government had concluded Production Sharing Agreements (PSAs) with over 30 companies representing 15 countries.

Over 90 US energy-related companies are currently resident in Baku pursing investment opportunities. Significant foreign investors in the energy sector included British Petroleum (BP)—the designated operator for both the ACG oil field and the Shah Deniz natural gas field—Unocal, ExxonMobil, Devon Energy (Pennzoil), Chevron, Conoco, Moncrief Oil, TPAO (Turkish Oil Company), Statoil (Norway), Lukoil (Russia), Itochu (Japan), Agip (Italy), and TotalfinaELF (France).

The US State Department projects that as work on the BTC pipeline proceeds and development of Azerbaijan's oil and gas resources intensifies, foreign investment should increase from levels of 15–25% of GDP to 50% of GDP. The US State Department also noted that data from Azerbaijan is not reliable, and only rough estimates can be made. On this basis, it reported that foreign investments in 2000 amounted to about $927 million, of which $546.1 million (58.9%) was in the energy sector.

Investments came in at a faster pace in subsequent years, reaching $1.4 billion in 2002, $3.3 billion in 2003, and $3.0 billion in 2004. Most of the capital inflows went to the energy sector, but there were also some investments in the transport and communications sectors.

ECONOMIC DEVELOPMENT

Rapid development of the Azeri economy in the former USSR was based on the expansion of both its industrial sector, led by oil-related industries, and its agricultural sector, led by grape, tobacco, and cotton production. With grape and wine production weakened by the effects of Gorbachev's anti-alcoholism campaign in the 1980s, and much of the country's industrial sector afflicted by technological obsolescence, overall economic growth in the republic had already begun to decline by 1989, when NMP dropped 6%. Real gross domestic product (GDP) contracted by almost 60% from 1990 to 1995. However, in the late 1990s, foreign investment in the country's oil and natural gas sectors opened a period of steady growth. Key strategies of the Azeri government to bring about economic revitalization have included both an economic restructuring program as well as efforts to expand its economic ties to countries beyond the former Soviet Union. To the latter end, Azerbaijan joined the Economic Cooperation Organization set up by Iran, Pakistan, and Turkey to promote trade among Muslim countries. It was also the first of the former Soviet republics to become a member of the Islamic Development Bank, which provides potential access to financing for programs related to agriculture, construction, training, and food aid. In 2002, economic prospects brightened considerably with progress made on its two major pipeline projects designed to connect the Caspian Sea to the Turkish Mediterranean to provide oil and gas for the European and North American markets, the Baku-Tbilisi-Ceyhan Export Oil Pipeline (BTC) and the Baku-Tbilisi-Erzrum Gas Pipeline. The BTC particularly received an important impetus when the Azeri government came out as a strong ally of the United States in its War on Terror.

The restructuring program in Azerbaijan has been similar to those of other countries in the former USSR. Its main points include stabilization measures (price liberalization, introduction of national currency, and establishment of an exchange rate stabilization fund); introduction of new legislation regarding privatization, foreign investment, and employment; fiscal and monetary reform (including introduction of a VAT and controls on government expenditures); civil service reform; and development of the banking sector. Four committees on antitrust, support for enterprises, state property, and land reform have been established to oversee the implementation of reform legislation. Privatization of the state enterprise sector is moving at a slow pace. Particular attention is being directed at modernizing those strategic sectors of the economy with the greatest potential for export growth, particularly the oil industry and, to a lesser extent, textile production; the role of foreign investment is seen as pivotal in these areas.

Since 1994, the Azerbaijan parliament has ratified 22 other PSCs, 19 of which were still operative in the early 2000s. Virtually every major oil company in the world is a player in Azerbaijan, including over 90 American companies resident in Baku in 2002. The US State Department estimates that for the period 2002–05 opportunities for sales of upwards of $10 billion will be available in association with the expansion of AIOC's offshore oil and gas production. Macroeconomic stability has also been a clear achievement with the government's tight fiscal and monetary policies producing low consumer price inflation rates in 2000 and 2001 of 1.8% and 1.5%, respectively, according to IMF staff reports, after two years of actual declines in the price level in 1998 and 1999, of -0.8% and -8.5%, respectively.

Economic reforms in Azerbaijan have come increasingly under the conservative supervision of the IMF and the World Bank, which have also taken aim at the problem of pervasive corruption in the administration of taxes and custom duties. In 2002, Azerbaijan was under a three-year Poverty Reduction and Growth Facility (PRGF) program with the IMF, the objectives of which include establishing financial discipline in the energy sector, and increasing efficiency and transparency in the operations of the Ministry of Taxation and the State Customs Committee, and developing a comprehensive anticorruption program.

In March 2002, Azerbaijan reached agreement with the World Bank for a second Structural Adjustment Credit (SAC-II) program, funded at $60 million. If implemented, the IMF and World Bank programs would greatly improve the investment climate in Azerbaijan. Azerbaijan's two privatization programs since its transition to a free market economy have faltered on the lack security and market transparency. The first, from 1996 to 1998, focused on small and medium-sized enterprises was hindered by lack of resources to properly prepare assets for privatization and insufficient information about these enterprises. A presidential decree of August 2000 opened up case-by-case sales of some of the country's largest enterprises, and in March 2001 additional decrees were issued identifying about 450 enterprises to be privatized during the second privatization program. Progress continues to be slow, however. Attempts to privatize large state enterprises, such as the Azerboru pipe facility, failed for lack of qualified bidders, although by January 2002 the government had succeeded in placing the Baku electrical distribution network under the long-term private management of a Turkish firm, Barmek Holdings. There has been no substantial progress in privatizing the important telecommunications sector. The private sector's contribution to the economy does continue to grow due to both the first privatization program and to land reform. Official statistics placed the private sector's contribution to GDP at over 70% for 2002, although independent economic observers estimate this share at closer to 50–60%, according to the US State Department.

The pursuit of development plans remains hampered by ongoing political conflicts in the country. Border disputes limit vital trade with Turkey, not to mention the overall economic benefits of a lasting peace between the Azerbaijan and Armenia. Azerbaijan's potential for economic development based on both its natural and human resources remains high, but the challenges posed by both external and internal politics which have eaten at the supporting infrastructure, tangible and intangible, remain quite formidable.

SOCIAL DEVELOPMENT

Old age, disability, and survivor benefits have been provided since 1956. Pensions are provided for men at age 62 with 25 years of employment, and at age 57 for women with 20 years of employment. Social insurance, instituted in 1997, covers all employed residents. Workers' compensation provides both short-term disability benefits and pensions. Unemployment benefits were introduced in 1991. To obtain benefits there must be at least 26 weeks of covered employment in the 12 months prior to unemployment. These benefits are suspended if the applicant refuses two acceptable job offers. Benefits amount to 70% of average gross monthly earnings but are not to exceed the national average monthly wage.

Women nominally enjoy the same legal status as men and are underrepresented in government and higher levels of the work force. Although women receive opportunities for education, work, and political activity, social traditions tend to keep them in subordinate positions. Violence against women is a serious problem especially in rural areas. As of 2004 there are no laws on spousal abuse or rape, and there are no government-sponsored programs for victims of sexual abuse. The government is committed to protecting the rights of children, however economic hardship limits the ability to safeguard children.

Ethnic tensions and anti-Armenian sentiment are still strong. Many Armenians have either been expelled or emigrated. It was estimated that approximately 20,000 Armenians, almost all of mixed marriages or mixed parentage, continue to reside in Azerbaijan in 2004. Other minorities, such as the Kurds and the Turks, also report problems of discrimination. The constitution provides for freedom of assembly, religion, and speech, but these rights are often restricted by the government. Azerbaijan's human rights record remains poor. Excessive force is used by police, and the judicial system continues to be inefficient and corrupt. Torture remains a problem, and harsh prison conditions continue.

HEALTH

As part of the former Soviet Union, Azerbaijan has had to develop and maintain its own health care system and standards. As of 2004, there were an estimated 354 doctors and 728 nurses per 100,000 people practicing in the country. Additionally, there were an estimated 26 dentists and 122 midwives per 100,000 residents. The total expenditure on health was estimated at 1.8% of GDP.

Azerbaijan's infant mortality rate for 2005 was 81.74 per 1,000 live births, which represents an enormous increase in the previous five years. Life expectancy in 2005 was 63.35 years. As of 1999, the country immunized an estimated 99% of one-year-old children against diphtheria, pertussis, and tetanus and 99% against polio.

The overall death rate in 2002 was estimated at 10 per 1,000 inhabitants. Thousands of lives were lost between 1989 and 1992 when the country was at war with Armenia. Diphtheria, tuberculosis, hepatitis A, and diarrheal and acute respiratory infections have been serious public health problems. There have also been outbreaks of anthrax, botulism, cholera, tetanus, and malaria. Measles and tuberculosis still remain in this country despite a high incidence of vaccination for one-year-old children. The incidence of tuberculosis was 62 per 100,000 people. The HIV/AIDS prevalence was 0.10 per 100 adults in 2003. As of 2004, there were approximately 1,400 people living with HIV/AIDS in the country. There were an estimated 100 deaths from AIDS in 2003.

HOUSING

As of 1996, over 1.3 million people were living in houses that were considered to be structurally dilapidated and dangerous. About 67% of current dwellings were built within the period 1981–96. In the period 1991–95, construction of new housing fell by nearly 50% due to poor economic conditions and the government estimated that a total of about 107,000 homes had been lost due to the conflict over Nagorno-Karabakh.

The government keeps statistics on the square meters of living space available. In 2003, the total dwelling stock was estimated at about 1,000,400 square meters of available living space. About 94% of the population has access to piped water (cold), but only 19.2% have access to hot piped water. About 92% have access to appropriate sewage systems and 76% have central heating systems. About 21% of the population are living in apartment buildings and about 14% live in private houses. Most private homes are located in rural areas.

EDUCATION

Education is compulsory for students between the ages of 6 and 15. In 2001, about 23% of children ages three to five attended some type of preschool program. Primary school covers a program of four years, followed by a five-year basic program and a two-year secondary program. Secondary students might choose to attend a three-year technical program instead. The usual language of instruction is Azerbaijani, although Russian, Armenian, Georgian, and English are also offered by some schools. The academic year runs from September through May. The Ministry of Education and the Council of University Presidents are the primary national administrative bodies. As of 2003, public expenditure on education was estimated at 3.2% of GDP.

Primary school enrollment in 2003 was estimated at about 80% of age-eligible students; 81% for boys and 79% for girls. The same year, secondary school enrollment was about 76%; 77% for boys and 75% for girls. The student-to-teacher ratio for primary school was at about 15:1 in 2003. The ratio for secondary school was about 9:1.

Azerbaijan's most important institutes of higher learning are the Azerbaijan Polytechnic Institute, located in Baku, with seven departments and an enrollment of 12,000 students; and the State University, also located at Baku and founded in 1919. It has an enrollment of over 15,000 students in 11 departments. Other institutions include the Medical University, Technological University, the Economic Institute, and the Oil and Chemistry Academy. Russian is more commonly used as the language of instruction at higher-level institutions, but this is slowly changing with a growing demand for the use of Azerbaijani. In 2003, about 16% of the tertiary age population were enrolled in some type of higher education program; 19% men and 14% women. The adult literacy rate is at about 97%.

Baku is sometimes referred to as an "oil academy" because of its ongoing research in the areas of turbine drilling, cementation of oil wells, and the development of synthetic rubber from natural gas.

LIBRARIES AND MUSEUMS

The Mirza Fatali Akhundov National Library of Azerbaijan is in Baku and contains about 4.4 million volumes. Other public libraries in Baku include City Central Library, the Kocharli Azerbaijan State Children's Library, and Jafar Jabbarly Republican Youth Library. The country has about 4,000 public libraries that are administered by the Ministry of Culture. Academic libraries include a library of Russian language and literature at the Azerbaijan Pedagogical University and a scientific library at Baku State University. The Azerbaijan Library Development Association was founded in 1999.

There are 115 recognized museums in the country, 27 of which are art museums, and there are 20 theaters. The country also has 6,571 monuments and historic sights. The Ichari Shahar, or Old Town, in Baku has the Shirvanshah Palace, an architectural monument from the 15th and 16th centuries which has been restored and is now a museum. Other museums are the Museum of History of Azerbaijan (1920), which exhibits archeological, ethnographic, and other relics; the Rustam Mustfayev Azerbaijan State Arts Museum, displaying works of Azerbaijani, Russian and West European artists from the 15th–19th centuries along with the works of modern Azerbaijani artists; the State Museum of Azerbaijani Carpets and Folk and Applied Art; and the Nizami State Museum of Azerbaijani Literature, depicting the stages of literary development. The Gobustan Museum features prehistoric dwellings and cave paintings over 10,000 years old. Baku, the capital, remains an important cultural and intellectual center in Transcaucasia.

MEDIA

Azerbaijan is connected to other former Soviet republics by landline or microwave and to other countries through Moscow. Phone service is said to be of poor quality and inadequate. Most telephones are in Baku and other industrial centers. There are about 700 villages still without public telephone service. In 2003, there were an estimated 114 mainline telephones for every 1,000 people; about 55,400 people were on a waiting list for telephone service installation. The same year, there were approximately 128 mobile phones in use for every 1,000 people.

In 2004, there were over 40 independent newspapers and magazines. There were 10 state newspapers and 80 newspapers funded by city or district-level officials. Most newspapers and magazines are printed in government publishing houses or on private printing presses owned by individuals close to the government.

Major newspapers include Azarbaycan, a government daily, and Ekho. Zerkalo is a published in Russian and English and the Baku Sun is a popular English paper. Weeklies include Ekspress and 525 Qazet. Ganjlari (Youth of Azerbaijan ) had a circulation of 161,000 in 2002. Over 100 other periodicals are published, more than half in Azerbaijani.

A majority of radio and television broadcasting sources are controlled by the government, but some private stations have begun to flourish. In 2004 there were 15 television stations and 9 radio stations in operation. The public broadcasting station ITV was launched in 2005. Domestic and Russian television programs are received locally, while Iranian television is received from an Intelsat satellite through a receive-only earth station. In 2003, there were an estimated 22 radios and 334 television sets for every 1,000 people. In 2003, 37 of every 1,000 people had access to the Internet. There were three secure servers in the country in 2004.

The constitution of Azerbaijan specifically outlaws press censorship; however, it is said that the government does not always respect freedom of the press in practice.

ORGANIZATIONS

The Azerbaijan Republic Chamber of Commerce and Industry is based in Baku. Azad Istehlakchilar Birliyi is an independent consumers' union. Important political associations in the Republic of Azerbaijan include the Helsinki Group, a human rights group, the National Democratic Movement, and Musavat (Equality). The Committee of Democracy and Human Rights in Azerbaijan, founded in 1993, is made up of both individuals and organizations focusing on promoting respect for human rights. The group publicizes human rights abuses and offers legal assistance to victims.

The Azerbaijan Medical Association promotes the rights of both physicians and patients and serves as a networking organization for a number of associations in specialized fields of medicine.

A number of groups promote and protect civil rights and humanitarian and development needs for women and children. These include: the Association for the Defense of Rights of Azerbaijan Women, the Azerbaijan Women's Association, Azerbaijan Women and Development Center, Azerbaijan Women's Intelligence Organization, Azerbaijani League for the Defense of the Rights of Children, and the Mothers Outcry Society.

There are over 20 youth organizations united and coordinated in part by the National Assembly of Youth Organizations of Azerbaijan (NAYORA), which was established in 1995. The Azerbaijan Union of the Democratic Youth (AUDY), established in 1994, is an independent group seeking to unite youth of all languages, religions, and nationalities into a single cause of patriotism for an independent and democratic Azerbaijan society. A scouting organization is also present. There are several athletic associations representing particular sports, including skating, weightlifting, handball, and track and field. There is a National Olympic Committee, a Paralympic Committee, and a chapter of the Special Olympics.

There are national chapters of the Red Crescent Society, UNICEF, World Vision, and Caritas.

TOURISM, TRAVEL, AND RECREATION

The capital city of Baku is one of the prime tourist destinations of the Caucasus region. Its Old Town, with the Shirvanshah Palace dating back to the 15–16th centuries, is especially popular with sightseers. Other attractions include the Museum of History and the State Arts Museum, as well as museums of folk art and literature. Elsewhere in Azerbaijan, the Gobustan Museum displays prehistoric dwellings and cave paintings, and the village of Surakhani attracts visitors to the Atashgah Fire-Worshipper's Temple. Visitors are also welcome at the carpet-weaving factory in the village of Nardaran, the Wine-making State Farm in the Shamakhi area, the Fruit and Vegetable State Farm around the town of Guba, and the Mashtagha Subtropical Fruit State Farm.

There were 1,013,811 tourist arrivals in Azerbaijan in 2003, with about 73% of visitors coming from Europe. Tourism receipts that year reached about $70 million. Hotel rooms numbered 5,034 with 10,068 beds.

In 2004, the US Department of State estimated the cost of staying in Baku at $328 per day.

FAMOUS AZERBAIJANIS

Heydar Aliyev (1923?–2003) was president from 1993 until 2003, when he was succeeded by his son Ilham Aliyev (b.1961). The poet Nizami Ganjavi (1141–1204) is celebrated for his Khamsa, a collection of five epic poems. Muhammed Fizuli (1438–1556) based his poems on traditional folktales, and his poetic versions provide the basis for many 20th century plays and operas. Satirical poet Sabir (1862–1911) was openly critical of the clergy at a time when their influence controlled much of society. Abul Hasan Bakhmanyar, an 11th century scientist, wrote respected books on mathematics and philosophy. Hasan Shirvani wrote a book on astronomy.

The composer Uzeyir Hajibeyov (1885–1948) wrote the first Azerbaijani opera, and also founded the Azerbaijani Symphonic Orchestra and composed Azerbaijan's National Anthem. Other famous composers from Azerbaijan include Gara Garayev (1918–82), Haji Khannmammadov (b.1918), Fikrat Amirov (1922–84), and Vasif Adigozal (b.1936). Vagif Mustafa Zadeh (1940–79) is considered the founder of the Azerbaijani music movement of the 1960s that mixed jazz with the traditional style known as mugam. His daughter, Aziza Mustafa Zadeh (b.1969), is a noted jazz pianist.

Prominent modern Azerbaijani scientists include Lotfi Zadeh (b.1921), pioneer of the "fuzzy logic" concept, and Ali Javan (b.Iran, 1928), inventor of the gas laser.

DEPENDENCIES

Azerbaijan has no territories or colonies.

BIBLIOGRAPHY

De Waal, Thomas. Black Garden: Armenia and Azerbaijan Through Peace and War. New York: New York University Press, 2003.

Elliot, Mark. Azerbaijan with Georgia. Cincinnati, Ohio: Seven Hills, 2001.

Leeuw, Charles van der. Azerbaijan: A Quest for Identity. New York: St. Martin's Press, 2000.

Liberman, Sherri. A Historical Atlas of Azerbaijan. New York: Rosen, 2004.

Streissguth, Thomas. The Transcaucasus. San Diego, Calif.: Lucent Books, 2001.

Swietochowski, Tadeusz. Russia and Azerbaijan: A Borderland in Transition. New York: Columbia University Press, 1995.

Terterov, Marat (ed.). Doing Business with Azerbaijan. 2nd ed. London, Eng.: Kogan Page, 2005.

Transcaucasia, Nationalism and Social Change: Essays in the History of Armenia, Azerbaijan, and Georgia. Ann Arbor: University of Michigan Press, 1996.

Azerbaijan

History & Background

The Azerbaijan Republic (Azarbaycan Respublikasi or Azerbaijan) is the largest of the three Transcaucasian republics of the former Soviet Union, located in southwestern Asia. Bordered by the Caspian Sea to the east, Iran to the south, Armenia (and nine kilometers of Turkey) to the west, Georgia to the northwest, and Dagestan of the Russian Federation to the north, Azerbaijan measures 86,600 square kilometers. Slightly smaller than the U.S. state of Maine, Azerbaijan includes the non-contiguous autonomous enclave of Naxçivan to its southwest as well as 500 square kilometers of water. About 20 percent of the country, including the Nagorno-Karabakh region in the southwest, is occupied by Armenian forces who came into violent conflict with Azerbaijanis starting in 1988.

While a cease-fire was declared in May 1994, the final peace settlement with Armenia had not yet been reached by early 2001 and hundreds of thousands of Azerbaijani citizens were still displaced from their home communities. In 1998 the total number of Azerbaijani refugees and internally displaced persons (IDPs) living within Azerbaijan was about one million; the refugees included about 230,000 Azerbaijanis who fled Armenia when the armed conflict began and 50,000 Meshetian Turks who fled from Uzbekistan in 1989. The IDPs are primarily from Nagorno-Karabakh, an internationally recognized part of Azerbaijan occupied by Armenian troops and separatist fighters since the early 1990s. In 1998 13 major refugee camps existed in Azerbaijan; in addition, numerous, overcrowded public buildings, many of them in almost complete disrepair, housed Azerbaijani refugees. (About 300,000 Armenians who previously lived in Baku and other Azerbaijani cities are now living outside of Azerbaijan due to the unresolved conflict.) Certain European nations and international organizations, like the Organization for Security and Cooperation in Europe (OSCE), have worked steadily to help Azerbaijan settle its conflict with Armenia, but with incomplete success.

Azerbaijan has often been the battleground for contesting forces over the centuries. Three centuries before Christ the land now occupied by Azerbaijan was ruled by the Sassanid dynasty of the Persian Empire. During the Middle Ages the land was divided into several khanates that eventually were united by Shah Ismayil, the founder of the Safevid dynasty. Two-thirds of what used to be known as Azerbaijan in historic times is now in present-day Iran, and 20 million or more Azeris now live in Iran's northern region. Over the centuries Azerbaijan's territory was the object of fighting by the Persian, Arab, Seljuk, Mongol, Ottomon, and Russian empires. The territory that currently is Azerbaijan came from areas relinquished by Persia to Russia in 1828.

Annexed to the fledgling Soviet Union when the "Red Army" invaded the Caucasus region in April 1920, Azerbaijan remained under communist rule for 70 years as part of the Transcaucasian Soviet Federative Republic, which also included Georgia and Armenia. Azerbaijan declared its independence from the Soviet Union on 30 August 1991; soon after, it was recognized by the international community as an independent country. Azerbaijan joined the UN Organization and OSCE in 1992. It also became a member of NATO's "Partnership for Peace" programs, one of the first of the former Soviet republics to join.

A land consisting mainly of mountains and valleys due to the Caucasus Mountains passing through the north of the country, Azerbaijan has a wide range of climates, ranging from the cold weather of the mountainous north to the temperate weather of the Kura River's plain and the subtropical climate of the Lenkoran lowlands along the Caspian coast. The country's average temperature is 27 degrees Celsius in July and 1 degree Celsius in January. Baku, the capital city, has more days of fair weather than any other place in the Caucasus. It is moderately warm, subtropical, and dry but quite windy throughout the year. The highest elevation in Azerbaijan is Bazarduzu Dagi at 4,485 meters.

In 2000 the ethnic composition of Azerbaijan's population was about 90 percent Azeri, 3.2 percent Dagestani, 2.5 percent Russian, 2.3 percent Armenian, and 2 percent other, with most of the Armenians living in the Nagorno-Karabakh region. At that time about 93 percent of Azerbaijan's population was Muslim (mainly Shiite); the rest of the population was Russian Orthodox or Armenian Orthodox (each about 2.3 percent) or other. Approximately 57 percent of Azerbaijan's population lived in urban areas in 1999 when the country's population density was 92.2 persons per square kilometer. By the year 2000 approximately 99 percent of Azerbaijan's male population age 15 and older was literate, as well as 96 percent of the female population in that age range.

In 1999 the population of Azerbaijan was estimated to be 8 million and had a growth rate of only 0.9 percent, in part because difficult economic conditions in the 1990s caused many young Azerbaijanis to delay starting their own families. The total fertility rate in 1999 was 2.0 (i.e., a woman bearing children for her entire childbearing years at the current fertility rate would produce two children). Approximately 30 percent of Azerbaijanis in 2000 were 14 years old or younger while nearly two-thirds of the population was between 15 and 64 years of age and only about 7 percent were 65 or older. Azerbaijan had an infant mortality rate of 16.2 per thousand live births in 1999 and an under 5 years child mortality rate of 21.0 per thousand. The life expectancy at birth of Azerbaijanis in 2000 was 62.9 years, 58.5 years for men and 67.5 years for women.

World Bank analysts noted the degree of poverty in Azerbaijan in their November 2000 Country Assistance Report for the country and remarked on the changes that had occurred during the 1990s: "Azerbaijan had strong social indicators before independence. Basic food and consumer needs were met and access to health and education was universal. Since independence [in 1991], however, social indicators have deteriorated, partly because of the large number of displaced people. About 60 percent of Azerbaijan's population are considered poor, compared with around 40 percent in other Central Asian countries."

The Gross Domestic Product (GDP) at market prices in 1999 was four billion in current U.S. dollars. Widespread corruption and patronage had interfered with the transition to a well-functioning, free-market economy in Azerbaijan in the transition period of the 1990s. The Azerbaijani workforce in 1997 was composed as follows: 15 percent of the labor force was employed in industry, 53 percent in service jobs, and 32 percent in agriculture and forestry. (The comparable figures for the value added by each sector expressed as a percent of GDP were the following: industry, 35.4 percent; service, 41.3 percent; and agriculture, 23.3 percent.) By 1999 the Azerbaijani economy had an annual growth rate of roughly 7.4 percent, which further improved to an annual rate of about 8.5 percent by the first 6 months of 2000. However, Azerbaijan's annual per-capita income (measured as GNP per capita) in 2000 was about $550 in current U.S. dollars, representing a significant drop in per-capita income since the early 1990s. Azerbaijan's poverty rate of 60 percent at the turn of the millennium was due in large measure to the effects of the government's attempts to shift the economy from a centralized, state-controlled economy to a free-market economy; to falling oil revenues in the early 1990s; and to the war with Armenia, which had produced streams of refugees and thousands of displaced persons in the country. As the World Bank analysts noted in November 2000, about 75 percent of the IDPs were living below the poverty level. In 1999 about 20 percent of the population in Azerbaijan was classified as very poor. Sparked mainly by the richly promising oil opportunities in the country, foreign direct investment in Azerbaijan in 1999 was $510.3 million in U.S. dollars, while the country's debt value was $744.3 million. About 70 percent of the export commodities in the year 2000 were oil and gas. Other natural resources in Azerbaijan include iron ore, nonferrous metals, and alumina. The primary agricultural products are grains, wine, cotton, fruit, vegetables, tea, tobacco, crude sheepskin, and livestock (cattle, pigs, sheep, and goats), but only 18 percent of the land is arable.

Azerbaijan joined the World Bank and the International Development Association in 1992 and received its first loan from the Bank in 1995 for financing advisory services and setting up a framework to attract foreign private investment in Azerbaijan's burgeoning petroleum industry, in the amount of $21 million in U.S. dollars. A credit of the same amount also was provided that year to improve the water supply in the capital city of Baku, where about 25 percent of Azerbaijanis live. Other World Bank projects have followed, including an Educational Reform Project developed for Azerbaijan in 1999.

In 1997 Azerbaijanis had about 170,000 televisions and 175,000 radios. In 1998 10 AM radio stations, 17 FM stations, and 1 short-wave radio station broadcast programs in Azerbaijan. Computer and Internet access was growing by the end of the 1990s, when Azerbaijan had two Internet service providers.

Constitutional & Legal Foundations

Azerbaijan is a parliamentary republic with a strong-presidential form of government. The governing structures were established by the Constitution of 1995, which was adopted by referendum. All Azerbaijanis, men and women alike, are allowed to vote beginning at age 18. Azerbaijan's elected chief executive and head of state, the president, serves a five-year term of office. Since 1993 Heydar Aliyev has been the President of Azerbaijan, having overthrown the previous democratically elected president in 1993. The executive branch of the national government also includes a prime minister as well as a Council of Ministers appointed by the president and confirmed by the National Assembly (the Milli Mejlis ), Azerbaijan's national unicameral legislature of 125 members who are elected for five-year terms by popular vote. As of the November 2000 parliamentary elections, the legislature continued to be dominated by the New Azerbaijani Party whose chairman was incumbent President Aliyev. (In that election, substantial vote fraud was protested, and the competition of opposition parties initially was somewhat limited by the government, who eventually relented closer to the time of elections and sought to correct some of its previous measures taken to discourage political competition). The Constitution accords the national legislature the power to approve the national budget and to impeach the President of the Republic. The third branch of Azerbaijan's national government is the judicial branch, consisting of a Supreme Court. While the judiciary supposedly is independent of the other two branches of the national government, in the year 2000 the judiciary continued to be influenced by the executive branch and was rife with corruption and inefficiency. Subnational governance is effected through a system of 59 rayons (rayonlar ), 11 cities, and 1 autonomous republic (Naxçivan Muxtar Respublikasi ) attached to Azerbaijan.

The police, together with the Ministries of International Affairs and of National Security, are responsible for the internal security of the country. However, in the year 2000 the police allegedly were committing numerous human-rights abuses against Azerbaijanis, such as conducting searches and seizures without warrants, arbitrarily arresting and detaining people, and torturing and beating persons in custody. In general, the government reportedly failed to intervene; though in a few cases, police accused of abusing the rights of others were prosecuted. Harsh prison conditions led to the deaths of some prisoners in 2000, pre-trial detention was sometimes illegally extended, and freedom of expression and of the press was actively limited by the government, despite the participation of opposition parties in the November elections.

Laws Affecting Education: Education in Azerbaijan has long been valued by many of the people, and before the economic and political problems of the late 1980s and early 1990s arose, the general level of education in the country and literacy rates among many segments of the population were relatively high. In 1992, shortly after independence was declared, legislation establishing a new educational system for Azerbaijan was passed: "The Law of the Republic of Azerbaijan on Education." Educational reforms were also proposed in the late 1990s by the World Bank in consultation with Azerbaijani educational authorities, researchers, and other experts. The World Bank's Education Reform Project was approved by the President of Azerbaijan in June 1999 and was being implemented in three phases: 1999, 2000-2003, and 2004. The decision was made to concentrate on improving the first several grades of general, compulsory education, although it was also clear that higher education institutions needed attention, too. However, because a number of private efforts already were being made by the late 1990s to increase quality educational offerings at higher levels in Azerbaijan, the Bank and the Azerbaijani government chose to focus the initial Education Reform Project on measures that would strengthen basic education.

To transform Azerbaijan's educational system from the inefficient, heavily burdened system of the Soviet era, the Education Reform Project had the following goals: 1) upgrading curricular content and developing improved processes for creating new curricula; 2) improving teacher education as well as teaching and learning methods by making teachers knowledgeable of modern teaching methods and making learning a more-active, engaging, and individualized experience for each student; 3) increasing financial resources for educational materials and programming and encouraging the state to dedicate more resources for education; 4) improving methods of education budgeting, creating a better balance between expenditures for educational staff salaries and other educationrelated expenditures, and allowing greater flexibility across line items within the same fiscal year; 5) providing support to build and repair educational facilities and to equip school programs with freshly developed textbooks that correlate well with current curricular needs; and 6) decreasing inequities in education—e.g. between rural and urban students and between impoverished students and those coming from better circumstances. To meet the goals of the Project, the Bank outlined several main areas of activity: 1) creating in-service teacher-education institutes (TEIs) in five pilot districts (Baku, Sumgayit, Lenkoran, Genje, and Nakhichevan) which would pilot the training of more-modern teaching methods involving active learning and projects, support new in-service teacher-education courses, increase linkages between schools and TEIs, train trainers who could replicate the training of other teachers in new teaching methods, and develop small teacher resource centers as part of the pilot TEIs; 2) establish pilot schools (4 in each of the 5 pilot districts, for a total of 20 pilot schools) and involve local community members more actively in the schools; and 3) monitor and evaluate the effectiveness of the project interventions by answering specific questions related to the effectiveness of the measures taken in the Education Reform Project. In conjunction with working toward accomplishing the above-outlined goals, the Project was designed to bring about reforms in educational policy-making and in the performance of educational institutions.

Vocational education schools and programs already had received special attention from the Azerbaijani government in 1996, when the Cabinet of Ministers adopted Presidential Decision #16, "On the Measures for Improvement of the Vocational Education System in the Republic of Azerbaijan," on 23 August 1996. This Decision gave vocational education institutions newly recognized status as vocational schools and vocational lycées, and a list of specific professions for which vocational training would be provided was approved. According to the Ministry of Education, new vocational-education initiatives were being promoted by the President in the late 1990s that included developing vocational education according to strategic guidelines, creating new opportunities for the continuing education of workers (especially to manage new technology), and democratizing education.

Educational System—Overview

Compulsory Education: In the 2000-2001 school year, 1,591,000 Azerbaijani students were enrolled in a total of 4,486 general education schools operated by the Ministry of Education covering grades 1 through 11, the years of compulsory education where most fees are covered by the government. Gross enrollment in the primary classes (grades 1 through 4) and the main classes (grades 5 through 9) averaged 97 percent for boys and 96 percent for girls that year (with net enrollment rates of 89 percent for boys and 90 percent for girls). At the secondary level gross enrollment rates were 73 percent for boys and 81 percent for girls. General education in Azerbaijan is divided into three stages: 1) four years of primary education, where students in each class are taught by a teacher who progresses with them each year up through the four primary grades, 2) main education, consisting of five years of schooling, and 3) secondary education, where students receive their final two years of state-provided schooling.

The violent conflict in the late 1980s and early 1990s exacted a heavy toll on Azerbaijani students and the education system in Azerbaijan. 616 general education schools reportedly were captured and destroyed by Armenian forces. This led to the displacement of over 100,000 pupils and 10,000 educational staff members, according to the government of Azerbaijan, with 85,000 displaced children served by 707 schools established in the densest areas of refugee and IDP concentrations.

Although schooling at the secondary level is free in Azerbaijan, by the late 1990s parents of primary students were increasingly asked to pay a certain proportion of the school fees and to purchase textbooks for their children. This is attributable apparently to the economic problems the country was experiencing at that time. With the educational support provided by the World Bank Education Reform Project begun in 1999 and other international donors to the education sector, as well as the gradually improving economic conditions in the country at the turn of the millennium, this trend toward parents' paying increasingly for their children's basic education hopefully would be turned around. It should be noted, however, that improvements began to be seen by the year 2000 in the national economy due to proceeds from a major oil-pipeline project in the country and the development of the petroleum industry through foreign investment. These are not anticipated to immediately change the bleak economic picture prevailing in the country in the 1990s. It is expected that an additional five to eight years of continuing economic improvements would be needed before oil revenues would have a positive impact on government funding in the education sector.

Private Schools: While government-supported schools were the norm for students in basic education at the turn of the millennium, increasing efforts were being made by international organizations and other private funders to create private educational opportunities in the country, especially at upper levels. Statistics on the number of private schools operating in Azerbaijan in 2001, however, are not readily available.

In the 2000-2001 school year, 17,000 pupils attended boarding schools and 10,000 very-talented students attended 39 new kinds of educational institutions—lycées and gymnasiums—some of which may have been privately funded. Special education was provided for about 6,000 mentally and physically handicapped students through 21 boarding schools, 3 "subsidiary schools," and 2 "home-schools," although again it is unknown to what extent these schools were publicly or privately funded.

Textbooks—Curriculum Development: With the World Bank's Education Reform Project begun in 1999, special attention was directed toward revising and improving Azerbaijani textbooks and the curricula used in Azerbaijani schools. As already indicated, significant problems existed with the textbook situation in the 1990s. Textbooks were neither sufficiently plentiful nor of adequate quality to provide students with the necessary instruction in subjects that would have direct applicability in their lives, nor were students given the type of instruction that would enable them to transfer school learning to everyday situations or to competently solve problems in the real world. For this reason, the World Bank education project concentrated heavily on developing new norms for the production and improvement of texts and curricula in the country. A leftover from the Soviet era, two state-sponsored publishing houses essentially had complete control over the production of texts, a situation that demanded reform so that teaching materials could be made more responsive to the needs of contemporary Azerbaijani students preparing for jobs in a globalizing labor market no longer dominated by the Soviet-style centralized economy of the past.

Curriculum—Development: The teaching style in Azerbaijan emphasizes passive learning and generally speaking is not adequately individualized to the needs of each student. Although in some schools, administrators and teachers were ready to implement a more student-focused and active-learning style of teaching by the late 1990s, a lack of appropriate resources on contemporary teaching methods hindered progress in updating teaching methodology in the country. Emphasis during the Soviet era had been placed on learning facts rather than the skills needed to solve problems and apply school-based learning to real-life situations. Consequently, one of the major reforms attempted by the Azerbaijani government in tandem with the World Bank starting in 1999 centered on training and retraining teachers in more child-focused, active styles of teaching involving student projects and activities.

Foreign Influences on Educational System: While Azeri, the main language spoken in Azerbaijan, is the country's official language, only 89 percent of the population spoke Azeri in 1995. Three percent of the population spoke Russian, 2 percent spoke Armenian, and 6 percent spoke other languages at that time. The Azerbaijani language, part of the south-Turkic group of languages, originally was written using the Arabic script, but the Latin alphabet was introduced in 1929. Cyrillic script became compulsory in 1939 when Azerbaijan was well enmeshed in the Soviet system. After independence in 1991, the Russian language was phased out by the Azerbaijani government, and Latin was reintroduced in 1992. Nonetheless, Russian is still commonly used in urban areas such as Baku and Sumgayit and understood in most parts of the country.

By the year 2000 Azerbaijan was cooperating on a regular basis with over 30 countries in the area of higher education and had been admitted to both the Asian and Pacific Basin Regional Committee of UNESCO on higher education and UNESCO's European Regional Committee on higher education. Azerbaijan also acceded to the Conventions on Mutual Recognition of Higher Education Institution Diplomas, Scientific Titles and Degrees and Educational Programs pertaining to the countries of those two regions. Azerbaijani educators were becoming increasingly involved with a growing number of international organizations such as the European Union, UNESCO, and the Soros Foundation, whose programs and projects provided necessary financial supports and technical assistance to Azerbaijani educators and the country's educational institutions.

About 5,000 Azerbaijani students were studying outside of Azerbaijan in about 40 countries in the second half of the 1990s. Key areas of specialization for these students were economics, international relations, business, tourism and the hotel industry, finance, the customs business, and banking. In the late 1990s students from about 50 countries were studying in Azerbaijani schools and universities, focusing in particular on law, medicine, construction, and the oil industry.

Role of Education in Development: Aware of the key role education plays in a country's socioeconomic development, Azerbaijan's government was actively collaborating with many international organizations and donors by the late 1990s to improve the country's education system and training institutions in order to develop the human resources necessary for the country's economic and social development. Unfortunately, problems of poverty and population displacements during the 1990s further exacerbated existing disparities in school attendance across the country. For 6- to 16-year-olds from very poor households in 1999, for example, 97 percent of those living in Baku and Apsheron were attending school but only 75 percent of children from very poor families in the near southwest were enrolled in school.

Preprimary & Primary Education

Kindergarten attendance in Azerbaijan during the 1990s had declined due to the economic and political problems the country was experiencing. In 1990 about 19 percent of children between the ages of 3 and 6 were enrolled in kindergarten, but in 1997 only 13 percent of this age group was enrolled (19.1 percent in cities and 7.1 percent in villages). In the 2000-2001 school year 1,854 preschools—1,659 of them operated by the Ministry of Education and the other 195 operated by other Ministries and organizations—educated 116,100 young children with 101,700 of the children attending Ministry of Education preschools. The preschoolers were taught by 16.1 thousand educational staff, three-quarters of whom were mid-level or higher professionals. Primary education and compulsory schooling in Azerbaijan begins at age six, and the primary grades (grades one through four, as noted above) represent the first of three stages of required general education.

Secondary Education

As previously noted, grades five through nine form the "main education" stage of general education in Azerbaijan. Grades 10 and 11 are considered the upper-secondary grades in the country and represent the third stage of compulsory schooling. As with schooling overall in the country during the troubled times of the 1990s, the second and third stages of education suffered from the violence of the Armenia-Azerbaijan conflict and the economic problems that beset Azerbaijan as the country shifted from a centralized economy to a free-market economy and came to rely, perhaps too heavily and prematurely, on oil revenues to finance the national budget. Whereas 34 percent of the relevant age group of 15 to 18 year olds had attended upper-secondary school (the final 2 grades of compulsory schooling) in 1990, only 28 percent of the age-relevant group was enrolled in upper-secondary education in 1996. Many students had been displaced or had become refugees during the early part of the 1990s, and the difficult economic conditions led a larger share than normal of secondary school students to drop out of school or be absent for extended periods in order to find work to help support their families.

Vocational Education: Special importance came to be attached to improving the quality of vocational education in Azerbaijan in the transition years of the 1990s, and as already mentioned, the government had begun special initiatives to improve the quality of vocational training with new legislation in 1996. In 1999 over 23,000 Azerbaijani students were enrolled in a total of 108 vocational institutions (including 61 vocational schools and 47 vocational lycées) that provided training in 120 professions. The number of educational staff in these institutions was 5,136 of whom 1,990 were teachers and 1,806 were production training masters. In addition to the vocational schools and lycées already mentioned, 11 evening correspondence schools, plus correspondence groups and 2,137 evening classes given at day schools, provided continuing education opportunities for more than 40,000 youth in their late teens at the start of the new millennium.

Higher Education

Types of—Public & Private: In the mid-1990s about 17 percent of the age group appropriate for tertiary studies was enrolled in higher-education programming in Azerbaijan. Since 1993 Azerbaijan has been reshaping its college and university level training programs to match European multi-stage standards for Bachelor's and Master's level courses. By the late 1990s, higher education in Azerbaijan was provided through a network of 48 educational institutions (30 government-supported and 18 privately funded) that encompassed a total of twenty universities, 8 academies, and 20 other types of educational institutions (institutes, higher colleges, higher seminary, and higher-education institutions for professional improvement and retraining). Through this network of 48 institutions, training was provided in more than 90 fields (related to 390 professions) at the Bachelor's level and in 80 fields (related to 580 professions) at the Master's level. Over 110,000 students were enrolled in highereducation institutions in Azerbaijan, taught by about 15,000 professors and teachers (about 1,000 of them professors and over 8,000 assistant professors and senior lecturers). Over 15,000 additional staff members were employed as managers, logisticians, teaching assistants, service staff, and the like in institutions of higher education.

Admission Procedures: Admission to university-level training in Azerbaijan is through competitive examinations taken at the end of secondary education. More than 20,000 students—about 20 to 25 percent of secondary school graduates—were being admitted annually to higher-education institutions by the end of the 1990s. Professors or teachers of higher education were each responsible for 5.2 students at that time, when attendance at higher-education institutions cost about US$100 per student for the academic year.

Administration: Responsibility for higher education in Azerbaijan falls principally to the Ministry of Education, composed of a carefully structured array of departments, divisions, and offices. Higher education in the sciences and at the doctoral level is the responsibility of an entirely separate department in the Ministry of Education, the Science Department, which supervises training and research, including pedagogical training and research, and provides leadership and planning for doctoral programs and post-graduate training and credentialing in the sciences and the arts.

Administration, Finance, & Educational Research

Government Educational Agencies: Responsibility for developing and implementing educational policies and programs rests primarily with the Ministry of Education, which collaborates directly with the World Bank-funded Education Reform Project. Under the Minister of Education is the Central Administration, which includes the Ministry of Education's assistant, secretary, jurist, licensing office, press, and Refugee Affairs bureau. Also directly under the Minister are the Economy and Finance Department (which in turn supervises the Division of Planning and Finance, the Division of Accounts, the Payroll office, and the office of Capital Construction and Procurement), the Human Resources Department, and the Higher Education Department (which in turn supervises two other departments: one for higher education and one for vocational education). Three Deputy Ministers are also directly under the authority of the Minister of Education. One of the Deputy Ministers supervises the Preschool and General Education Department, the Division of Textbooks, Press and Publications, and the Education of Children with Special Needs, Social Care and Rehabilitation Programs Section. Another Deputy Minister oversees the Science Department, the Analysis and Prognosis Department, and the Vocational-Technical Education Department. The third supervises the International Relations, Information and Coordination Department (which oversees Study Abroad and Overseas Students' Affairs), Patriotic Education, and the Office Management Department (whose responsibility includes supervising the offices in charge of Protocol, Service Staff, Logistics, and Archive).

Education Budgets: In 1997 Azerbaijan spent less than 4 percent of its GDP on education, a sizable drop from the nearly 7 percent of GDP spent on education in 1992. In 1999 over 50 percent of all non-defense-related budgetary expenditures on employment went to salaries for educational staff. Educational staff accounted for more than 10 percent of all employment—rates that were considerably higher than other countries in the region. Due to the decline in government revenues during the 1990s, funding for education fell and in 1997 public expenditures on education were only one-third of what they had been in 1992.

Summary

As oil revenues begin to be generated at an increasing rate and international donor agencies continue to provide significant aid for education, Azerbaijan's currently rather difficult economic situation in the education sector hopefully will be remedied. Through the World Bank-funded Education Reform Project, educational conditions in the country should improve, if only gradually at first. One of the most promising initiatives in the World Bank project appeared to be that of improving teacher-training institutes through a set of five pilot programs that include training of trainers who will be able to replicate the teaching of newer, more-appropriate methods of engaging students in the learning process. In addition, international nongovernmental donors, such as the Soros Foundation that is interested in promoting ethnic conflict resolution, democratization, and human rights in Azerbaijan, should have a very positive impact over time on the political and social climate in the country, as they work collaboratively with Azerbaijanis in schools and community programs to plan and implement programming meant to encourage the development of a strong civil society and greater democratic participation. As the culturally rich and historically experienced people of Azerbaijan continue to further their country's progress through imaginative solutions to educational problems and the dilemmas of sustainable development at the start of the new millennium, Azerbaijan should be able to return to its previously highly regarded status as a center of culture and learning where education is prized and made available to all segments of the population, regardless of their economic status.

Bibliography

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—Barbara Lakeberg Dridi

Azerbaijan

Culture Name

Azerbaijani, Azeri

Alternative Names

Azerbaijani Turkish, Azeri Turkish. The country name also is written Azerbaidzhan, Azerbaydzhan, Adharbadjan, and Azarbaydjan in older sources as a transliteration from Russian. Under the Russian Empire, Azerbaijanis were known collectively as Tatars and/or Muslims, together with the rest of the Turkic population in that area.

Orientation

Identification. Two theories are cited for the etymology of the name "Azerbaijan": First, "land of fire" (azer, meaning "fire," refers to the natural burning of surface oil deposits or to the oil-fueled fires in temples of the Zoroastrian religion); second, Atropaten is an ancient name of the region (Atropat was a governor of Alexander the Great in the fourth century b.c.). The place name has been used to denote the inhabitants since the late 1930s, during the Soviet period. The northern part of historical Azerbaijan was part of the former Soviet Union until 1991, while the southern part is in Iran. The two Azerbaijans developed under the influence of different political systems, cultures, and languages, but relations are being reestablished.

Location and Geography. The Azerbaijan Republic covers an area of 33,891 square miles (86,600 square kilometers). It includes the disputed Nagorno-Karabakh region, which is inhabited mostly by Armenians, and the noncontiguous Nakhchivan Autonomous Republic, which is separated from Azerbaijan by Armenian territory. Nakhchivan borders on Iran and Turkey to the south and southwest. Azerbaijan is on the western shore of the Caspian Sea. To the north it borders the Russian Federation, in the northwest Georgia, in the west Armenia, and in the south Iran. Half the country is covered by mountains. Eight large rivers flow down from the Caucasus ranges into the Kura-Araz lowland. The climate is dry and semiarid in the steppes in the middle and eastern parts, subtropical in the southeast, cold in the high mountains in the north, and temperate on the Caspian coast. The capital, Baku, is on the Apsheron peninsula on the Caspian and has the largest port.

Demography. The population of the Azerbaijan Republic has been estimated to be 7,855,576 (July 1998). According to the 1989 census, Azeris accounted for 82.7 percent of the population, but that number has increased to roughly 90 percent as a result of a high birthrate and the emigration of non-Azeris. The Azerbaijani population of Nagorno-Karabakh and a large number of Azeris (an estimated 200,000) who had been living in Armenia were driven to Azerbaijan in the late 1980s and early 1990s. There are about one million refugees and displaced persons altogether. It is believed that around thirteen million Azeris live in Iran. In 1989, Russians and Armenians each made up 5.6 percent of the population. However, because of anti-Armenian pogroms in Baku in 1990 and Sumgait in 1988, most Armenians left, and their population (2.3 percent) is now concentrated in Nagorno-Karabakh. Russians, who currently make up of 2.5 percent of the population, began to leave for Russia after the dissolution of the Soviet Union. The number of Jews decreased as they left for Russia, Israel, and the United States in the late 1980s and early 1990s. Numerous ethnic groups (up to ninety) of the former Soviet Union are represented in small numbers (Ukrainians, Kurds, Belorussians, Tatars). Other groups with a long history of settlement in Azerbaijan include the Persian-speaking Talysh and the Georgian-speaking Udins. Peoples of Daghestan such as the Lezghis and Avars make up 3.2 percent of the population, with most of them living in the north. Fifty-three percent of the population is urban.

Linguistic Affiliation. Azeri (also referred to as Azeri Turkish) or Azerbaijani is a Turkic language in the Altaic family; it belongs to the southwestern Oguz group, together with Anatolian Turkish, Turkmen, and Gagauz. Speakers of these languages can understand each other to varying degrees, depending on the complexity of the sentences and the number of loan words from other languages. Russian loan words have entered Azeri since the nineteenth century, especially technical terms. Several Azeri dialects (e.g., Baku, Shusha, Lenkaran) are entirely mutually comprehensible. Until 1926, Azeri was written in Arabic script, which then was replaced by the Latin alphabet and in 1939 by Cyrillic. With the dissolution of the Soviet Union, Azerbaijan and other Turkic-speaking former Soviet republics reintroduced the Latin alphabet. However, the main body of modern Azeri literature and educational material is still in Cyrillic, and the transition to the Latin alphabet is a time-consuming and expensive process. The generations that learned Russian and read Azeri in Cyrillic still feel more comfortable with Cyrillic. During the Soviet period, linguistic Russification was intensive: although people referred to Azeri as their native tongue, the language many people in the cities mastered was Russian. There were both Azeri and Russian schools, and pupils were supposed to learn both languages. Those who went to Russian schools were able to use Azeri in daily encounters but had difficulty expressing themselves in other areas. Russian functioned as the lingua franca of different ethnic groups, and with the exception of rural populations such as the Talysh, others spoke very little Azeri. Roughly thirteen languages are spoken in Azerbaijan, some of which are not written and are used only in everyday family communication. Azeri is the official language and is used in all spheres of public life.

Symbolism. Azerbaijan had a twenty-three-month history of statehood (1918–1920) before the institution of Soviet rule. The new nation-state's symbols after the dissolution of the Soviet Union were heavily influenced by that period. The flag of the earlier republic was adopted as the flag of the new republic. The flag has wide horizontal stripes in blue, red, and green. There is a white crescent and an eight-pointed star in the middle of the red stripe. The national anthem forcefully portrays the country as a land of heroes ready to defend their country with their blood. The sentiments associated with music in Azerbaijan are very strong. Azeris regard themselves as a highly musical nation, and this is reflected in both folk and Western musical traditions.

To show pride in country, Azeris first refer to its natural resources. Oil is at the top of the list, and the nine climatic zones with the vegetables and fruits that grew in them also are mentioned. The rich carpet-weaving tradition is a source of pride which is used to highlight the artistic sensibilities of carpet weavers (most of the time women) and their ability to combine various forms and symbols with natural colors. Hospitality is valued as a national characteristic, as it is in other Caucasus nations. Guests are offered food and shelter at the expense of the host's needs, and this is presented as a typical Azeri characteristic. The use of house metaphors was widespread at the beginning of the Nagorno-Karabakh conflict: Armenians were regarded as guests who wanted to take possession of one of the rooms in the host's house. Ideas of territorial integrity and the ownership of territory are very strong. Soil—which in Azeri can refer to soil, territory, and country—is an important symbol. Martyrdom, which has a high value in the Shia Muslim tradition, has come to be associated with martyrdom for the Azeri soil and nation. The tragedy of the events of January 1990, when Russian troops killed nearly two hundred civilians, and grief for those who died in the Nagorno-Karabakh conflict, have reinforced the ritual activity attached to martyrdom.

Azeri women and their characteristics are among the first ethnic markers (attributed characteristics) that differentiate Azeris as a nation. Their moral values, domestic abilities, and role as mothers are pointed out in many contexts, especially in contrast to Russians.

The recent history of conflict and war, and thus the suffering evoked by those events in the form of deaths, the misery of displaced persons, and orphaned children, has reinforced the idea of the Azeri nation as a collective entity.

History and Ethnic Relations

Emergence of the Nation. Azerbaijan was inhabited and invaded by different peoples throughout its history and at different times came under Christian, pre-Islamic, Islamic, Persian, Turkish, and Russian influence. In official presentations, the Christian kingdom of Caucasian Albania (which is not related to Albania in the Balkans) and the state of Atropatena are regarded as the beginnings of the formation of Azerbaijani nationality. As a result of Arab invasions, the eighth and ninth centuries are seen as marking the start of Islamization. The invasions of the Seljuk Turkish dynasty introduced the Turkish language and customs. From the thirteenth century onward, it is possible to find examples of literature and architecture that today are considered important parts of the national heritage. The local dynasty of Shirvan shahs (sixth to sixteenth centuries) left a concretely visible mark in Azeri history in the form of their palace in Baku. Until the eighteenth century, Azerbaijan was controlled by neighboring powers and was invaded repeatedly. In the nineteenth century, Iran, the Ottoman Empire, and Russia took an interest in Azerbaijan. Russia invaded Azerbaijan, and with the 1828 treaty borders (almost identical to the current borders), the country was divided between Iran and Russia. The rich oil fields in Baku that were opened in the midnineteenth century attracted Russians, Armenians, and a few westerners, such as the Nobel brothers. The vast majority of the oil companies were in Armenian hands, and many Azeri rural inhabitants who came to the city as workers joined the socialist movement. Despite international solidarity between the workers during strikes (1903–1914), tension existed between Armenian and Azeri laborers, with the Azeris being less skilled and thus worse paid. This discontent exploded in bloody ethnic conflicts in the period 1905–1918. The fall of the Russian monarchy and the revolutionary atmosphere fed the development of national movements. On 28 May 1918, the Independent Azerbaijan Republic was established. The Red Army subsequently invaded Baku, and in 1922 Azerbaijan became part of the Union of Soviet Socialist Republics. In November 1991, Azerbaijan regained its independence; it adopted its first constitution in November 1995.

National Identity. In the early twentieth century, secular Azeri intellectuals tried to create a national community through political action, education, and their writings. Ideas of populism, Turkism, and democracy were prevalent in that period. As a reaction to the colonial regime and exploitation that was expressed in ethnic terms, the formation of Azeri national identity had elements of both Islamic and non-Islamic traditions as well as European ideas such as liberalism and nationalism. The idea of an Azeri nation also was cultivated during the Soviet period. The written cultural inheritance and the various historical figures in the arts and politics reinforced claims to independent nationhood at the end of the Soviet regime. During the decline of the Soviet Union, nationalist sentiment against Soviet rule was coupled with the anti-Armenian feelings that became the main driving force of the popular movements of national reconstruction.

Ethnic Relations. Since the late 1980s, Azerbaijan has been in turmoil, suffering interrelated ethnic conflict and political instability. Nagorno-Karabakh Armenians had raised the issue of independence from Azerbaijan a number of times since 1964, and those claims became more forceful in the late 1980s. Armenia supported the Nagorno-Karabakh cause and expelled about 200,000 Azeris from Armenia in that period. Around that time, pogroms took place against Armenians in Sumgait (1988) and Baku (1990), and more than 200,000 Armenians subsequently left the country. The Nagorno-Karabakh conflict turned into a protracted war, and atrocities were committed by both sides until an enduring cease-fire was agreed to in 1994. The massacre of the village of Khojaly in 1992 by Armenians is engraved in Azeri memory as one of the worst aggressive acts against Azeri civilians. Azeris who lived in Nagorno-Karabakh territory were driven out during the war. They are now among the refugees and displaced persons in Azerbaijan and make the conflict with Armenia visible. The Lezgis and Talysh also made demands for autonomy, but despite some unrest, this did not result in extensive conflicts. Azeris in Iran have been subject to strictly enforced assimilation policies. Although the opening of the borders has nurtured economic and cultural relationships between the two Azerbaijans, Iranian Azeris do not have much cultural autonomy.

Urbanism, Architecture, and the Use of Space

There are various dwellings in different regions. Traditionally, people in towns lived in quarters (mahallas ) that developed along ethnic lines. Modern Azerbaijan adopted the Soviet style of architecture; however, Baku retains a Maiden Tower and an old town criscrossed with narrow streets as well as examples of a mixture of European styles in buildings that date back to the beginning of the twentieth century. These edifices usually were built with funds from the oil industry.

Soviet-era governmental buildings are large and solid with no ornamentation. Residential complexes built in that period usually are referred to as "matchbox architecture" because of their plain and anonymous character. Public space in bazaars and shops is crowded, and people stand close to each other in lines.

Food and Economy

Food in Daily Life. There are regional differences in the selection and preparation of food resulting from the availability of agricultural products and membership in different ethnic groups. A mixture of meat and vegetables and various types of white bread constitute the main foods. In rural areas, there is a tradition of baking flat white bread (churek, lavash, tandyr ). Kufte bozbash (meat and potatoes in a thin sauce) is a popular dish. Filled pepper and grape leaves and soups also are part of daily meals. Different types of green herbs, including coriander, parsley, dill, and spring onions, are served during meals both as a garnish and as salad. Pork is not popular because of Islamic dietary rules, but it was consumed in sausages during the Soviet period. The soup borsch and other Russian dishes are also part of the cuisine. Restaurants offer many varieties of kebabs and, in Baku, an increasingly international cuisine. Some restaurants in the historic buildings of Baku have small rooms for family and private groups.

Food Customs at Ceremonial Occasions. Pulov (steamed rice) garnished with apricots and raisins is a major dish at ritual celebrations. It is eaten alongside meat, fried chestnuts, and onions. During the Novruz holiday, wheat is fried with raisins and nuts (gavurga ). Every household is supposed to have seven types of nuts on a tray. Sweets such as paklava (a diamond-shaped thinly layered pastry filled with nuts and sugar) and shakarbura (a pie of thin dough filled with nuts and sugar) are an indispensable part of celebrations. At weddings, pulov and various kebabs are accompanied by alcohol and sweet nonalcoholic drinks (shyra ). At funerals, the main course is usually pulov and meat, served with shyra and followed by tea.

Basic Economy. Azerbaijan has a rich agricultural and industrial potential as well as extensive oil reserves. However, the economy is heavily dependent on foreign trade. The late 1980s and 1990s saw intensive trade with Russia and other countries in the Commonwealth of Independent States. Turkey and Iran have begun to be important trade partners. About one-third of the population is employed in agriculture (producing half the population's food requirements); however, with 70 percent of agricultural land dependent on poorly developed irrigation systems and as a result of delays in the privatization process, agriculture is still inefficient and is not a major contributor to the economy. People in rural areas grew fruits and vegetables in small private gardens for subsistence and sale during the Soviet period. The major agricultural crops are cotton, tobacco, grapes, sunflowers, tea, pomegranates, and citrus fruits; vegetables, olives, wheat, barley, and rice also are produced. Cattle, goats, and sheep are the major sources of meat and dairy products. Fish, especially sturgeon and black caviar, are produced in the Black Sea region, but severe pollution has weakened this sector.

Land Tenure and Property. In the Soviet period, there was no private land as a result of the presence of state-owned collective farms. As part of the general transition to a market economy, privatization laws for land have been introduced. Houses and apartments also are passing into private ownership.

Commercial Activities. There is a strong carpet-weaving tradition in addition to the traditional manufacturing of jewelry, copper products, and silk. Other major goods for sale include electric motors, cabling, household air conditioners, and refrigerators.

Major Industries. Petroleum and natural gas, petrochemicals (e.g., rubber and tires), chemicals (e.g., sulfuric acid, and caustic soda), oil refining, ferrous and nonferrous metallurgy, building materials, and electrotechnical equipment are the heavy industries that make the greatest contribution to the gross national product. Light industry is dominated by the production of synthetic and natural textiles, food processing (butter, cheese, canning, wine making), silk production, leather, furniture, and wool cleaning.

Trade. Other countries in the Commonwealth of Independent States, Western European countries, Turkey, and Iran are both export and import partners. Oil, gas, chemicals, oil field equipment, textiles, and cotton are the major exports, while machinery, consumer goods, foodstuffs, and textiles are the major imports.

Social Stratification

Classes and Castes. The urban merchant class and industrial bourgeoisie of the pre-Soviet era lost their wealth under the Soviet Union. The working class in the cities usually retained rural connections. The most significant social stratification criterion is an urban versus rural background, although the educational opportunities and principles of equality introduced in the Soviet period altered this pattern to some extent. Russians, Jews, and Armenians were mostly urban white-collar workers. For Azerbaijanis, education and family background were vital to social status throughout the pre- and post-Soviet period. Higher positions in government structures provided political power that was accompanied by economic power during the Soviet era. After the dissolution of the Soviet Union, wealth became a more important criterion for respect and power. Refugees and displaced persons with a rural background now can be considered the emergent underclass.

Symbols of Social Stratification. As in the socialist era, Western dress and urban manners usually have a higher status than does the rural style. During the Soviet period, those who spoke Russian with an Azeri accent were looked down on, since this usually implied being from a rural area or having gone to an Azeri school. By contrast, today the ability to speak "literary" Azeri carries a high value, since it points to a learned family that has not lost its Azeri identity.

Political Life

Government. According to the constitution, Azerbaijan is a democratic, secular unitary republic. Legislative power is implemented by the parliament, Milli Mejlis (National Assembly; 125 deputies are directly elected under a majority and proportional electoral system for a term of five years, most recently 1995–2000). Executive power is vested in a president who is elected by direct popular vote for five years. The current president Heydar Aliyev's term will end in October 2003. The Cabinet of Ministers is headed by the prime minister. Administratively, the republic is divided into sixty-five regions, and there are eleven cities.

Leadership and Political Officials. Since the late 1980s, the attainment of leadership positions has been strongly influenced by social upheaval and opposition to the existing system and its leaders. However, the network based on kin and regional background plays an important role in establishing political alliances. The system of creating mutual benefits through solidarity with persons with common interests persists.

Generally, political leaders assume and/or are attributed roles described in family terms, such as the son, brother, father, or mother of the nation. Young males have been a source of support both for the opposition and for the holders of powers. The ideals of manhood through bravery and solidarity were effective in securing popular support for different leaders in the 1980s. Personal charisma plays an important role, and politics is pursued at a personal level. There are about forty officially registered parties. The largest movement toward the end of the Soviet era was the Azerbaijani Popular Front (APF), which was established by intellectuals from the Academy of Sciences in Baku; members of the APF established several other parties later. The chairman of the APF became president in 1992 but was overthrown in 1993. Currently, the APF has both nationalist and democratic wings. The Musavat (Equality) Party has the backing of some intellectuals and supports democratic reforms, the National Independence Party supports market reforms and an authoritarian government, and the Social Democratic Party favors the cultural autonomy of national and cultural minorities and democratization. All these parties are opposed to President Heydar Aliyev's New Azerbaijan Party because of the undemocratic measures taken against their members and in the country at large. The other major parties are the Azerbaijan Liberal Party, Azerbaijan Democratic Party, and Azerbaijan Democratic Independence Party.

Social Problems and Control. According to the constitution, the judiciary exercises power with complete independence. Citizens' rights are guaranteed by the constitution. However, as a result of the uncertainties of the current transitional period, the legacy of the Soviet judicial system, and the authoritative measures taken by power holders, the implementation of legal rules is in practice a source of tension. This means that state organs can break the law by committing actions such as election fraud, censorship, and the detention of protesters. Given the prevalence of white-collar crime affecting investments, savings funds, and financial institutions, the large number of refugees and displaced persons with limited resources has resulted in various illegal business dealings. For example, recent years have seen considerable drug trafficking to Russia and the smuggling of various goods and materials. Despite improvements, people have little faith that they will receive a fair trial or honest treatment unless they belong to the right circles. The ideas of shame and honor are used in evaluating and hence controlling people's actions. Family and community opinion impose limitations on actions, but this also leads to clandestine dealings.

Military Activity. Azerbaijan has an army, navy, and air force. Defense expenditures for the Nagorno-Karabakh conflict placed a sizable burden on the national budget. The official figures for defense spending were around $132 million in 1994.

Social Welfare and Change Programs

There are laws providing for social security for the disabled, pensions, a guaranteed minimum wage, compensation for low-income families with children, grants for students, and benefits for war veterans and disabled persons (e.g. reduced fares on public transport etc.). However, the level of social benefits is very low. National and international nongovernmental organizations (NGOs) are involved in aid work for displaced persons, especially children.

Nongovernmental Organizations and Other Associations

Most NGOs concentrate on charity, mainly for displaced persons and refugees and focus on human rights, minority issues, and women's problems (e.g., the Human Rights Center of Azerbaijan and the Association for the Defense of Rights of Azerbaijan Women). Depending on their specialties, these organizations collect information and try to collaborate with international organizations to support people financially, politically, and socially.

Gender Roles and Statuses

Division of Labor by Gender. Many women were employed outside the home as a result of Soviet policies, but they have traditionally played a secondary role in supporting the family economically. Men are considered the main breadwinners. There are no restrictions on women's participation in public life, and women are active in politics in the opposition and ruling parties. However, their number is limited. Rural women's participation in public life is less common.

The Relative Status of Women and Men. With few exceptions, socially and politically powerful women at the top levels have male supporters who help them maintain their positions. Although professional achievement is encouraged, women are most respected for their role as mothers. Women in rural areas usually control the organization of domestic and ritual life. There is a higher degree of segregation between female and male activities and between the social spaces where they gather.

Marriage, Family, and Kinship

Marriage. Even in rural areas, marriages increasingly are arranged in accordance with the partners' wishes. In some cases, girls in rural areas may not have the right to oppose a candidate chosen by their parents; it is also not unusual for parents to disapprove of the chosen partner. Marriages between Azeri girls and non-Muslim non-Azeris (Russians, Armenians) in the Soviet period were very rare, but Western non-Muslims apparently now have a different status. Men, by contrast, could marry Russians and Armenians more easily. Both men and women marry to have children and bring up a family, but economic security is another important concern for women. In addition to the civil marriage ceremony, some couples now go to a mosque to get married according to Islamic law.

Domestic Unit. The basic household unit is either a nuclear family or a combination of two generations in one household (patrilocal tendency). In urban areas, mainly as a result of economic difficulties, newlyweds live with the man's parents or, if necessary, the woman's parents. The head of the household is usually the oldest man in the family, although old women are influential in decision making. In rural areas, it is possible for an extended family to live in one compound or house shared by the sons' families and their parents. Women engage in food preparation, child rearing, carpet weaving, and other tasks within the compound, while men take care of the animals and do the physically demanding tasks.

Inheritance. Inheritance is regulated by law; children inherit equally from their parents, although males may inherit the family house if they live with their parents. They then may make arrangements to give some compensation to their sisters.

Kin Groups. Relatives may live nearby in rural areas, but they usually are dispersed in cities. On special occasions such as weddings and funerals, close and distant relatives gather to help with the preparations. It is common for relatives in rural areas to support those in urban areas with agricultural and dairy products, while people in the cities support their rural relatives with goods from the city and by giving them accommodation when they are in city as well as helping them in matters involving the bureaucracy, health care, and children's education.

Socialization

Infant Care. Infant care differs according to location. In rural areas, infants are placed in cradles or beds. They may be carried by the mother or other female family members. In cities, they usually are placed in small beds and are watched by the mother. Parents interact with babies while attending to their daily chores and prefer to keep babies calm and quiet.

Child Rearing and Education. The criteria for judging a child's behavior are gender-dependent. Although children of all ages are expected to be obedient to their parents and older people in general, boys' misbehavior is more likely to be tolerated. Girls are encouraged to help their mothers, stay calm, and have good manners. It is not unusual for genetic makeup and thus a resemblance to the behavior patterns and talents of their parents and close family members to be used to explain children's negative and positive qualities.

Higher Education. Higher education has been important for Azeris both in the Soviet and post-Soviet periods. Having higher education makes both boys and girls more attractive as prospective marriage partners. Parents go to great lengths to pay fees for higher education or other informally determined costs associated with admission to schools.

Etiquette

Issues relating to sex and the body usually are not talked about openly in public. Depending on the age of the speaker, some men may refrain from using words such as "pregnant"; if they must use them, they apologize. It is not considered proper for adults to openly mention going to the bathroom; in private homes, people of the same age and gender or children can be asked for directions to the toilet. Women seldom smoke in public or at parties or other gatherings, and an Azeri woman smoking on the street would be looked down on. To show respect for the elderly, it is important not to smoke in front of older people of both genders. Young men and women are circumspect in the way they behave in front of older people. Bodily contact between the same sexes is usual as a part of interaction while talking or in the form of walking arm in arm. Men usually greet each other by shaking hands and also by hugging if they have not seen each other for a while. Depending on the occasion and the degree of closeness, men and women may greet one another by shaking hands or only with words and a nod of the head. In urban settings, it is not unusual for a man to kiss a woman's hand as a sign of reverence. The awareness of space is greater between the sexes; men and women prefer not to stand close to each other in lines or crowded places. However, all these trends depend on age, education, and family background. Activities such as drinking more than a symbolic amount, smoking, and being in male company are associated more with Russian women than with Azeris. Azeri women would be criticized more harshly, since it is accepted that Russians have different values.

Religion

Religious Beliefs. Among the total population, 93.4 percent is Muslim (70 percent Shia and 30 percent Sunni). Christians (Russian Orthodox and Armenian Apostolics) make up the second largest group. Other groups exist in small numbers, such as Molokans, Baha'is, and Krishnas. Until recently, Islam was predominantly a cultural system with little organized activity. Funerals were the most persistent religious ritual during the socialist era.

Religious Practitioners. In 1980, the sheikhul-Islam (head of the Muslim board) was appointed. Mullahs were not very active during the Soviet period, since the role of religion and mosques was limited. Even today, mosques are most important for the performance of funeral services. Some female practitioners read passages from the Koran in women's company on those occasions.

Rituals and Holy Places. Ramadan, Ramadan Bayram, and Gurban Bayram (the Feast of Sacrifice) are not widely observed, especially in urban areas. Muharram is the period when there are restrictions on celebrations. Ashure is the day when the killing of the first Shia imam, Huseyin, who is regarded as a martyr, is commemorated by men and boys beating their backs with chains while the people watching them, including women, beat their chests with their fists. This ritual was not introduced until the early 1990s, and it attracts an increasing number of people. People go to the mosque to pray and light candles and also visit the tombs of pir (holy men) to make a wish.

Death and the Afterlife. Although people increasingly follow Islamic tradition, owing to the lack of organized religious education, people's beliefs about the afterlife are not clearly defined. The idea of paradise and hell is prominent, and martyrs are believed to go to heaven. After a death, the first and subsequent four Thursdays as well as the third, seventh, and fortieth days and the one year anniversary are commemorated. When there is too little space, a tent is put up in front of people's homes for the guests. Men and women usually sit in separate rooms, food and tea are served, and the Koran is read.

Medicine and Health Care

Western medicine is very widely used, along with herbal remedies, and people visit psychics (ekstrasenses ) and healers. The sick may be taken to visit pir to help them recover.

Secular Celebrations

The new year's holiday is celebrated on 1 January, 20 January commemorates the victims killed by Soviet troops in Baku in 1990, 8 March is International Women's Day, and 21–22 March is Novruz (the new year), an old Persian holiday celebrated on the day of the vernal equinox. Novruz is the most distinctive Azeri holiday, accompanied by extensive cleaning and cooking in homes. Most households grow semeni (green wheat seedlings), and children jump over small bonfires; celebrations also are held in public spaces. Other holidays are 9 May, Victory Day (inherited from the Soviet period); 28 May, Day of the Republic; 9 October, Armed Forces Day; 18 October, State Sovereignty Day; 12 November, Constitution Day; 17 November, Day of Renaissance; and 31 December, Day of Solidarity of World Azeris.

The Arts and Humanities

Support for the Arts. State funds during the socialist era provided workshops for painters and other artists. Such funds are now limited, but national and international sponsors encourage artistic activity.

Literature. The book of Dede Korkut and the Zoroastrian Avesta (which date back to earlier centuries but were written down in the fifteenth century) as well as the Köroglu dastan are among the oldest examples of oral literature (dastans are recitations of historical events in a highly ornamented language). Works by poets such as Shirvani, Gancavi, Nasimi, Shah Ismail Savafi, and Fuzuli produced between the twelfth and sixteenth centuries are the most important Persian- and Turkish-language writings. The philosopher and playwriter Mirza Fath Ali Akhunzade (Akhundov), the historical novelist Husein Javid, and the satirist M. A. Sabir all produced works in Azeri in the nineteenth century. Major figures in the twentieth century included Elchin, Yusif Samedoglu, and Anar, and some novelists also wrote in Russian.

Graphic Arts. The tradition of painted miniatures was important in the nineteenth century, while the twentieth century was marked by examples of Soviet social realism and Azeri folklore. Among the widely recognized painters, Sattar Bakhulzade worked mainly with landscapes in a manner reminiscent of "Van Gogh in blue." Tahir Salakhov painted in Western and Soviet styles, and Togrul Narimanbekov made use of figures from traditional Azeri folk tales depicted in very rich colors. Rasim Babayev cultivated his own style of "primitivism" with hidden allegories on the Soviet regime (bright saturated colors, an absence of perspective, and numerous nonhuman characters inspired by folktales and legends).

Performance Arts. The local and Western musical tradition is very rich, and there has been a jazz revival in Baku in recent years. Pop music is also popular, having developed under Russian, Western, and Azeri influences. The Soviet system helped popularize a systematic musical education, and people from all sectors of society participate in and perform music of different styles. While composers and performers of and listeners to classical music and jazz are more common in urban places, ashugs (who play saz and sing) and performers of mugam (a traditional vocal and instrumental style) can be found all over the country. It is not unusual to find children who play piano in their village homes. Traditional string, wind, and percussion instruments (tar, balaban, tutak, saz, kamancha, nagara ) are widely used. Uzeyir Hacibeyov, who is claimed to have written the first opera (Leyli and Madjnun )in the Islamic East in the early twentieth century, Kara Karayev, and Fikret Amirov are among the best-known classical composers. Both now and in the past, elements from Azeri music have been incorporated into classical and jazz pieces (e.g., the pianist and composer Firangiz Alizade, who recently played with the Kronos Quartet). Beside Western ballet, traditional dances accompanied by accordion, tar, and percussion are popular.

The State of the Physical and Social Sciences

Universities and institutions of higher education from the Soviet era have been joined by new private universities. The Academy of Sciences has traditionally been the site of basic research in many fields. Social sciences were developed within the Soviet framework, although the directions of study are changing slowly with international involvement. Financial difficulties mean that all research is subject to constraints, but oil-related subjects are given a high priority. State funds are limited, and international funds are obtained by institutions and individual scientists.

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Azerbaijan Republic website: http://www.president.az/azerbaijan/azerbaijan.htm.

—HÜlya Demirdirek

Azerbaijan

Compiled from the July 2007 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:

Republic of Azerbaijan

PROFILE

Geography

Location: South Caucasus; bordered by Russia to the north, the Caspian Sea to the east, Iran to the south, and Georgia and Armenia to the west.

Area: 33,774 sq. mi. (includes Nakh-chivan and Nagorno-Karabakh); slightly smaller than Maine.

Cities: Capital—Baku.

Terrain: Caucasus Mountains to the north, lowland in the central area through which the Kura River flows.

Climate: Dry, subtropical with hot summers and mild winters; forests, meadows, and alpine tundra in the mountains.

People

Nationality: Noun—Azerbaijani(s), Azeri. Adjective—Azerbaijani, Azeri.

Population: (July 2005 est.) 7,911,974.

Population growth rate: (2005 est.) 1.0%.

Net migration rate: (2005 est.) -4.64 migrant(s)/1,000 population.

Ethnic groups: (1999 census) Azeri 90.6%, Dagestani 2.2%, Russian 1.8%, Armenian 1.5%, other 3.9%. Note: the separatist Nagorno-Kara-bakh region is populated almost entirely by Armenians.

Religions: Muslim 93.4% (majority Shi’a), Russian Orthodox 2.5%, Armenian Orthodox Church 2.3%, and other 1.8%.

Languages: Azerbaijani 89%, Russian 3%, Armenian 2%, and other 6%.

Education: Literacy-97%.

Health: Infant mortality rate-83.41/1,000 live births (2000 est.). Life expectancy (2007 est.)-65.96 years.

Work force: (3 million) Agriculture and forestry—42.3%; industry—6.9%; construction—4.2%; other—46.6%.

Government

Type: Republic.

Constitution: Approved in November 1995 referendum.

Independence: August 30, 1991 (from Soviet Union).

Government branches: Executive—president (chief of state), prime minister (head of government), Council of Ministers (cabinet). Legislative—unicameral National Assembly (parliament). Judicial—Supreme Court.

Political subdivisions: 78 rayons, 11 cities, and 1 autonomous republic.

Political parties: New Azerbaijan Party, Musavat Party, Popular Front Party, Liberal Party, Democratic Party, National Independence Party, Democratic Reforms Party, Civil Solidarity Party, Hope Party, Justice Party, others. There are more than 40 registered political parties in Azerbaijan and many small, unregistered parties.

Suffrage: 18 years of age; universal.

Economy

GDP: (2007 est.) $33.0 billion.

GDP real growth rate: (2007 est.) 26.4%.

Per capita GDP: (2007 est.) $3,862.

Inflation rate: (2006 average) 11%.

Unemployment rate: 15%-20%.

Natural resources: Petroleum, natural gas, iron ore, nonferrous metals, alumina.

Agriculture: Products—cotton, tobacco, grain, rice, grapes, fruit, vegetables, tea, cattle, pigs, sheep, goats.

Industry: Types—petroleum and natural gas, petroleum products, oilfield equipment, steel, iron ore, cement, chemicals, petrochemicals.

Trade: Exports—$3.77 billion: oil and gas, chemicals, oilfield equipment, textiles, cotton. Imports—$4.98 billion: machinery and parts, consumer durables, foodstuffs, textiles. Major trade partners—Italy, Russia, Turkey, Israel, U.S., Iran, other EU, and other countries formerly part of the Soviet Union.

HISTORICAL HIGHLIGHTS

Azerbaijan combines the heritage of two venerable civilizations—the Seljuk Turks of the 11th century and the ancient Persians. Its name is thought to be derived from the Persian phrase “Land of Fire,” referring both to its petroleum deposits, known since ancient times, and to its status as a former center of the Zoroastrian faith. The Azerbaijani Republic borders the Iranian provinces of East and West Azerbaijan, although they have not been united into a single state in modern times.

Little is known about Azerbaijan's history until its conquest and conversion to Islam by the Arabs in 642 AD. Centuries of prosperity as a province of the Muslim caliphate followed. After the decline of the Arab Empire, Azerbaijan was ravaged during the Mongol invasions but regained prosperity in the 13th-15th centuries under the Mongol II-Khans, the native Shirvan Shahs, and under Per-sia's Safavid Dynasty.

Due to its location astride the trade routes connecting Europe to Central Asia and the Near East and on the shore of the Caspian Sea, Azerbaijan was fought over by Russia, Persia, and the Ottomans for several centuries. Finally, the Russians split Azerbaijan's territory with Persia in 1828 by the Treaty of Turkmenchay, establishing the present frontiers and extinguishing the last native dynasties of local Azerbaijani khans. The beginning of modern exploitation of the oil fields in the 1870s led to a period of unprecedented prosperity and growth in the years before World War I.

At the collapse of the Russian Empire in 1917, an independent republic was proclaimed in 1918 following an abortive attempt to establish a Transcaucasian Republic with Armenia and Georgia. Azerbaijan received de facto recognition by the Allies as an independent nation in January 1920, an independence terminated by the arrival of the Red Army in April. Incorporated into the Transcaucasian Federated Soviet Socialist Republic in 1922, Azerbaijan became a union republic of the U.S.S.R. (Soviet Union) in 1936. The late 1980s were characterized by increasing unrest, eventually leading to a violent confrontation when Soviet troops killed 190 nationalist demonstrators in Baku in January 1990. Azerbaijan declared its independence from the U.S.S.R. on August 30, 1991.

GOVERNMENT AND POLITICAL CONDITIONS

Although the Government of Azerbaijan consists of three branches, Azerbaijan has a strong presidential system in which the legislative and judicial branches have only limited independence. The executive branch is made up of a president, his apparat, a prime minister, and the cabinet of ministers. The legislative branch consists of the 125-member parliament (Milli Majlis). Members, all of whom are elected from territorial districts, serve 5-year terms. The judicial branch, headed by a Constitutional Court, is nominally independent.

Azerbaijan declared its independence from the former Soviet Union on August 30, 1991, with Ayaz Mutalibov, former First Secretary of the Azerbaijani Communist Party, becoming the country's first President. Following a March 1992 massacre of Azerbaijanis at Khojali in Nagorno-Karabakh (a predominantly ethnic Armenian region within Azerbaijan), Mutalibov resigned and the country experienced a period of political instability.

The old guard returned Mutalibov to power in May 1992, but less than a week later his efforts to suspend scheduled presidential elections and ban all political activity prompted the opposition Popular Front Party (PFP) to organize a resistance movement and take power. Among its reforms, the PFP dissolved the predominantly Communist Supreme Soviet and transferred its functions to the 50-member upper house of the legislature, the National Council.

Elections in June 1992 resulted in the selection of PFP leader Abulfez Elchi-bey as the country's second President. The PFP-dominated government, however, proved incapable of either credibly prosecuting the Nagorno-Karabakh conflict or managing the economy, and many PFP officials came to be perceived as corrupt and incompetent. Growing discontent culminated in June 1993 in an armed insurrection in Ganja, Azerbaijan's second-largest city. As the rebels advanced virtually unopposed on Baku, President Elchibey fled to his native province, the Azerbaijani exclave of Nakhchivan. The National Council conferred presidential powers upon its new Speaker, Heydar Aliyev, former First Secretary of the Azerbaijani Communist Party (1969-81) and member of the U.S.S.R. Politburo and U.S.S.R. Deputy Prime Minister (until 1987). Elchibey was formally deposed by a national referendum in August 1993, and Aliyev was elected to a 5-year term as President in October with only token opposition. Aliyev won re-election to another 5-year term in 1998, in an election marred by serious irregularities. Presidential elections that took place on October 15, 2003 resulted in the election of Ilham Aliyev, the son of Heydar Aliyev. The election did not meet international standards. Ilham Aliyev assumed the office of president on October 31, 2003. Heydar Aliyev died December 12, 2003.

Azerbaijan's first parliament was elected in 1995. The present 125-member unicameral parliament was elected in November 2005 in an election that showed improvements in democratic processes, but still did not meet international standards. A majority of parliamentarians are from the President's “New Azerbaijan Party,” although the 2005 elections brought in a much more diverse parliament, with up to 10 opposition members and a sizeable number of independents. Many of these independents may have close ties to government, while as many as 20 others are business leaders whose political

affiliations are not clear. According to the constitution, the speaker of parliament stands next in line to the president. The parliament, however, is historically a weak body with little real influence. The Speaker is Oktay Asadov.

Principal Government Officials

Last Updated: 2/1/2008

President: Ilham ALIYEV

Prime Minister: Artur RASIZADE

First Dep. Prime Min.: Abbas ABBASOV

Dep. Prime Min.: Elchin EFENDIYEV

Dep. Prime Min.: Yaqub EYYUBOV

Dep. Prime Min.: Ali HASANOV

Dep. Prime Min.: Abid SHARIFOV

Min. of Agriculture & Food: Ismat ABBASOV

Min. of Communications & Information Technology: Ali ABBASOV

Min. of Culture & Tourism: Abulfaz GARAYEV

Min. of Defense: Safar ABIYEV, Col. Gen.

Min. of Defense Industry: Yavar JAMALOV

Min. of Ecology & Natural Resources: Huseyngulu BAGIROV

Min. of Economic Development: Heydar BABAYEV

Min. of Education: Misir MARDANOV

Min. of Emergency Situations: Kemmalladin HEYDAROV

Min. of Finance: Samir SHARIFOV

Min. of Foreign Affairs: Elmar MAMMADYAROV

Min. of Health: Oqtay SHIRALIYEV

Min. of Industry & Energy: Natiq ALIYEV

Min. of Internal Affairs: Ramil USUBOV

Min. of Justice: Fikret MAMEDOV

Min. of Labor & Social Security: Fizuli ALEKPEROV

Min. of National Security: Eldar MAHMUDOV

Min. of Sports & Youth: Azad RAHIMOV

Min. of Taxation: Fazil MAMEDOV

Min. of Transport: Ziya MAMMADOV

Chmn., National Bank: Elman RUSTAMOV

Ambassador to the US: Yashar ALIYEV

Permanent Representative to the UN, New York: Agshin MEHDIYEV

Azerbaijan's embassy in the United States is at 2741 34th Street NW, Washington, DC 20008; tel. (202) 337-3500; fax (202) 337-5911; Consular tel. (202) 337-5912; Consular fax (202) 337-5913; www.azembassy.com.

ECONOMY

Azerbaijan is an economy in transition in which the state continues to play a dominant role. It has important oil reserves and a significant agronomic potential based on a wide variety of climatic zones. During the late 1990s, in cooperation with the International Monetary Fund (IMF), Azerbaijan pursued a successful economic stabilization program, with annual growth exceeding 10% since 2000. Real GDP grew by 36.2% year-on-year in the first half of 2006 (predominantly driven by the hydrocarbon sector) while non-oil GDP grew by 8.5%. Output expansion has been largely driven by oil-sector foreign direct investment (FDI) and related spillover effects in the construction and transportation sectors, although there have also been substantial gains in agriculture. Inflation, which peaked at 13.7% year on year in April 2005 before easing to 11.9% year on year in September 2005, is a major risk and could accelerate in the context of further increases in fiscal spending, high oil prices, and an inflexible exchange rate. Importantly, the higher inflation also reflects customs restrictions that are in place due to supply constraints that limit import competition and monopolies that continue to control many sectors of the economy. The national currency, the manat, is stable against the dollar, but was allowed to strengthen in 2005 by 5%. The IMF has warned that significantly more appreciation (roughly 10%) will be necessary to prevent inflation from increasing.

The 2006 budget increased spending (in dollar terms) by 84% with the bulk going to the military, wages, infrastructure projects, and social assistance. Part of the increase in expenditures was financed by revenues from the oil fund. The IMF has expressed concern about the impact in inflation and macroeconomic stability as well as governance if the capital budget is not well managed. The State Oil Fund (SOFAZ) was established as an extra-budgetary fund to ensure macroeconomic stability, transparency in the management of oil revenue, and the safeguarding of resources for future generations. All oil revenue profits from the development of new oil fields now flow into SOFAZ, and are held offshore. SOFAZ assets amounted to $1.5 billion as of February 2007. Nevertheless, SOFAZ's sterilization effect is limited since it does not cover SOCAR, the State Oil Company.

Progress on economic reform has generally lagged. The government has undertaken regulatory reforms in some areas, including substantial opening of trade policy, but inefficient public administration, in which commercial and regulatory interests are co-mingled, limits the impact of these reforms. The government has largely completed privatization of agricultural lands and small and medium-sized enterprises. Azerbaijan is still plagued by an arbitrary tax and customs administration, a weak court system, monopolistic regulation of the market, and corruption.

For more than a century the backbone of the Azerbaijani economy has been petroleum. Now that Western oil companies are able to tap deepwater oilfields untouched by the Soviets because of poor technology, Azerbaijan is considered one of the most important spots in the world for oil exploration and development. Proven oil reserves in the Caspian Basin, which Azerbaijan shares with Russia, Kazakhstan, Turkmenistan, and Iran are comparable in size to the North Sea, although exploration is still in the early stages.

Azerbaijan has concluded 21 production-sharing agreements with various oil companies. Azerbaijan celebrated first oil for the Baku-Tbilisi-Ceyhan (BTC) pipeline in May 2005, and the official completion ceremony was held in Turkey in July 2006. The BTC pipeline is now operational and has a maximum capacity of one million barrels per day. A parallel Baku-Tbilisi-Erzurum gas export pipeline opened in September 2006, but, due to technical issues in the offshore Shah Deniz gas field, has operated only intermittently. Eastern Caspian producers in Kazakhstan also have expressed interest in accessing this pipeline to transport a portion of their production

Environmental Issues

Azerbaijan faces serious environmental challenges. Soil throughout the region was contaminated by DDT and toxic defoliants used in cotton production during the Soviet era. Caspian petroleum and petrochemicals industries also have contributed to present air and water pollution problems. Several environmental organizations exist in Azerbaijan, yet few funds have been allocated to begin the necessary cleanup and prevention programs. Over-fishing by poachers is threatening the survival of Caspian sturgeon stocks, the source of most of the world's supply of caviar. The Convention on International Trade in Endangered Species (CITES) has listed as threatened all sturgeon species, including all commercial Caspian varieties. CITES imposed a ban on most Caspian caviar in January 2006, but lifted it in January 2007.

DEFENSE AND MILITARY ISSUES

In July 1992, Azerbaijan ratified the Treaty on Conventional Armed Forces in Europe (CFE), which establishes comprehensive limits on key categories of conventional military equipment and provides for the destruction of weaponry in excess of those limits. Although Azerbaijan did not provide all data required by the treaty on its conventional forces at that time, it has accepted on-site inspections of forces on its territory. Azerbaijan approved the CFE flank agreement in May 1997. It also has acceded to the nuclear Non-Proliferation Treaty as a non-nuclear weapons state. Azerbaijan participates in the North Atlantic Treaty Organization's (NATO) Partnership for Peace.

FOREIGN RELATIONS

Azerbaijan is a member of the United Nations, the Organization for Security and Cooperation in Europe (OSCE), NATO's Partnership for Peace, the Euro-Atlantic Partnership, the World Health Organization, GUAM Organization for Democracy and Economic Development, the European Bank for Reconstruction and Development, the Council of Europe, the Community of Democracies, the International Monetary Fund, and the World Bank.

Nagorno-Karabakh

The major domestic and international issue affecting Azerbaijan is the dispute over Nagorno-Karabakh, a predominantly ethnic Armenian region within Azerbaijan. The current conflict over Nagorno-Karabakh began in 1988 when ethnic Armenian demonstrations against Azerbaijani rule broke out in both Nagorno-Karabakh and Armenia, and the Nagorno-Karabakh Supreme Soviet voted to secede from Azerbaijan. In 1990, after violent episodes in Nagorno-Karabakh, Baku, and Sumgait, the Soviet Union's Government in Moscow declared a state of emergency in Nagorno-Karabakh, sent troops to the region, and forcibly occupied Baku. In April 1991, Azerbaijani militia and Soviet forces targeted Armenian paramilitaries operating in Nagorno-Karabakh; Moscow also deployed troops to Yerevan. Azerbaijan declared its independence from the U.S.S.R. on August 30, 1991. In September 1991, Moscow declared it would no longer support Azerbaijani military action in Nagorno-Karabakh. Armenian militants then stepped up the violence. In October 1991, a referendum in Nagorno-Karabakh approved independence.

More than 30,000 people were killed in the fighting from 1992 to 1994. In May 1992, Armenian and Karabakhi forces seized Susha (the historical, Azerbaijani-populated capital of Nagorno-Karabakh) and Lachin (thereby linking Nagorno-Karabakh to Armenia). By October 1993, Armenian and Karabakhi forces had succeeded in occupying almost all of Nagorno-Karabakh, Lachin, and large areas in southwestern Azerbaijan. As Armenian and Karabakhi forces advanced, hundreds of thousands of Azerbaijani refugees fled to other parts of Azerbaijan.

In 1993, the UN Security Council adopted resolutions calling for the cessation of hostilities, unimpeded access for international humanitarian relief efforts, and the eventual deployment of a peacekeeping force in the region. The UN also called for immediate withdrawal of all ethnic Armenian forces from the occupied territories of Azerbaijan. Fighting continued, however, until May 1994 when Russia brokered a cease-fire.

Negotiations to resolve the conflict peacefully have been ongoing since 1992 under the aegis of the Minsk Group of the OSCE. The Minsk Group is currently co-chaired by Russia, France, and the U.S. and has representation from Turkey, the U.S., several European nations, Armenia, and Azerbaijan. Despite the 1994 cease-fire, sporadic violations, sniper fire, and landmine incidents continue to claim over 100 lives each year.

Since 1997, the Minsk Group Co-Chairs have presented a number of proposals to serve as a framework for resolving the conflict. One side or the other rejected each of those proposals, but negotiations have continued at an intensified pace since 2004.

U.S.-AZERBAIJAN RELATIONS

The dissolution of the Soviet Union in December 1991 brought an end to the Cold War and created the opportunity to build relations with its successor states as they began a political and economic transformation. The United States opened an Embassy in Azerbaijan's capital, Baku, in March 1992.

The United States has been actively engaged in international efforts to find a peaceful solution to the Nagorno-Karabakh conflict. The U.S. has played a leading role in the Minsk Group, which was created in 1992 by the Conference on Security and Cooperation in Europe—now the OSCE—to encourage a peaceful, negotiated resolution to the conflict between Azerbaijan and Armenia. In early 1997, the U.S. heightened its role by becoming a Co-Chair of the Minsk Group, along with Russia and France.

The U.S. supports American investment in Azerbaijan. U.S. companies are involved in three offshore oil development projects with Azerbaijan and have been exploring the emerging investment opportunities in Azerbaijan in other fields, such as telecommunication.

The United States is committed to aiding Azerbaijan in its transition to democracy and its formation of an open market economy. The Freedom Support Act, enacted in October 1992, has been the cornerstone of U.S. efforts to help Azerbaijan during this transition. Under the Freedom Support Act, the U.S. was providing approximately $48 million in humanitarian, democracy, and reform assistance to Azerbaijan in FY 2006.

The U.S. and Azerbaijan have signed a bilateral trade agreement, which entered into force in April 1995 and confers to Azerbaijan the status of most favored nation. The United States also has a bilateral investment treaty with Azerbaijan.

U.S. Humanitarian Assistance

U.S. humanitarian programs in Azerbaijan focus on community development, health and economic opportunities, and support services, including training and business management consultations for vulnerable populations. Under a new humanitarian initiative, the Department of State will complete six Small Reconstruction Projects (SRP) in Azerbaijan. These projects raise the standard of beneficiaries by improving conditions in beneficiary institutions such as schools, clinics, orphanages, and homes for the elderly. A new focus on quality health services and practices focuses on better use of health resources and health care practices through health care reform, healthy lifestyles, and the rights and responsibilities of the patient.

Technical assistance is being provided to the Ministry of Health to develop policy, legal and regulatory, and finance reforms. In FY 2006, the U.S. Department of Agriculture (USDA) was funding the final year of a $3.4 million national child vaccination program. The program was financed by a grant that included 10,800 metric tons of wheat to be sold in Azerbaijan. The proceeds will help complete the vaccinations of 450,000 children.

The U.S. continues its humanitarian demining efforts in Azerbaijan. The Peace Corps, which began working in Azerbaijan in 2003, has 55 volunteers. Some teach English at the secondary level and others work with non-governmental organizations engaged in small and micro enterprise development.

Principal U.S. Embassy Officials

Last Updated: 2/19/2008

BAKU (E) 83 Azadlig Prospect, Azerbaijan, AZ 1007, +994-12-498-03 -35, Fax +994-12-465-66-71, Workweek: M-F, 9:00–17:30, Website: http://baku.usembassy.gov.

TRAVEL

Consular Information Sheet

October 3, 2007

Country Description: Azerbaijan is a constitutional republic with a developing economy. Western-style amenities are found in the capital, Baku, but they are generally not available outside that city.

Entry Requirements: A passport and visa are required. Travelers may obtain single-entry visas for USD 100 by mail or in person from either the Azerbaijani Embassy in Washington, D.C. or any other Azerbaijani embassy offering consular services. Travelers may also obtain single-entry, 30-day visas at the airport upon arrival for USD 100. Visas are not available at the land borders with Georgia or Russia. Double-entry, 90-day visas (cost: USD 100) and one-year multiple-entry visas (cost: USD 250) are only available through an Azerbaijani embassy or through the Ministry of Foreign Affairs. A letter of invitation from a contact in Azerbaijan is required, and travelers who expect to travel in the region should request a one-year, multiple-entry visa. According to Azerbaijani law, foreign nationals intending to remain in Azerbaijan for more than 30 days must register with local police within three days of their arrival. Foreign citizens should approach the passport section of the local district police office and fill out an application form. The registration fee is AYM 9.90 (approximately USD 12).

American citizens of Armenian ancestry have had visa applications denied by the Government of Azerbaijan on the grounds that their safety cannot be guaranteed.

U.S. citizens who obtain a one-entry visa at the port of entry are permitted to remain in Azerbaijan for up to one month, after which an extension of stay must be requested (cost: USD 100). For persons in Azerbaijan, visa applications, extensions or renewals are made at the Ministry of Foreign Affairs, Shikhali Kurbanov St., 4, Baku; tel. (9-9412) 492 34 01. For additional information, please contact the Embassy of Azerbaijan, 2741 34th Street, NW, Washington, DC 20008 (tel. 202-337-3500); e-mail: azerbaijan@azembassy.com.

American citizens should ensure that their visas and/or local identification cards, for stays of longer than 30 days, are current and valid, and that they carry local identification cards, if applicable, at all times. It is advisable to carry a photocopy of ycurrent passport and valid visa if you do not normally carry your passport as well. Visit the Embassy of Azerbaijan web site at http://www.azembassy.us/ for the most current visa information.

Safety and Security: As a result of the Nagorno-Karabakh conflict, Armenian forces control Azerbaijan's Nagorno-Karabakh region, and a large portion of additional Azerbaijani territory surroundin Nagorno-Karabakh in the southwest part of the country, along the borders with Iran and Armenia. A cease-fire has been in effect in Nagorno-Kara-bakh since 1994, although reports of gunfire along the cease-fire line and along the border with Armenia continue. Anti-personnel mines are a danger in areas close to the front lines. It is not possible to enter the self-proclaimed “Republic of Nagorno-Karabakh,” which is not recognized by the United States, from other areas of Azerbaijan. Travelers are cautioned to avoid travel to Nagorno-Karabakh and the surrounding occupied areas. Because of the existing state of hostilities, consular services are not available to Americans in Nagorno-Karabakh.

American citizens of Armenian ancestry considering travel to Azerbaijan should remain particularly vigilant when visiting the country, as the Government of Azerbaijan has claimed that it is unable to guarantee their safety.

A number of political rallies occurred in Baku in the period before and immediately after the November 2005 Parliamentary elections. While the majority of these protests were peaceful, some became confrontational and escalated into violence. Americans are reminded that even protests intended to be peaceful may turn violent and travelers are advised to avoid all demonstrations.

For the latest security information, Americans traveling abroad should regularly monitor the Department of State, Bureau of Consular Affair's Internet site at http://travel.state.gov, where the current Travel Warnings and Travel Alerts, including the Worldwide Caution Travel Alert, can be found. Up-to-date information on safety and security can also be obtained by calling 1-888-407-4747 toll free in the U.S., or for callers outside the U.S. and Canada, a regular toll-line at 1-202-501-4444.

Crime: Although the Republic of Azerbaijan has a low rate of violent crime, incidents of street crime and assault on foreigners do occur. Visitors should follow the same precautions they would in any major city. Visitors should not walk alone at night. All crime incidents should be reported to the local police and U.S. Embassy. The Police Office of Crimes By and Against Foreigners has an English-speaking officer available at all times who may be reached at (994 12) 490-95-32 or, after hours, at 490-94-52.

Information for Victims of Crime: The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, contact family members or friends and explain how funds could be transferred. Although the investigation and prosecution of the crime are solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed.

Medical Facilities and Health Information: A few Western-type medical clinics, the quality of which is comparable to those in Western countries, are operating in Baku; the quality of these clinics is good. However, medical facilities outside the capital remain inadequate, unsanitary, and unsafe. There is often a shortage of basic medical supplies, including disposable needles and vaccines. Bring adequate amounts of prescription medicines for the duration of your visit, as pharmacies often do not carry all brands or doses.

Avian Influenza: In 2006, the WHO and Azerbaijani authorities confirmed several human cases of the H5N1 strain of avian influenza, commonly known as “bird flu.” Travelers to Azerbaijan and other countries affected by the virus are cautioned to avoid poultry farms, contact with animals in live food markets, and any surfaces that appear to be contaminated with feces from poultry or other animals. In addition, the CDC and WHO recommend eating only fully cooked poultry and eggs. For the most current information and links on avian influenza in Azerbaijan, see the State Department's Avian Influenza Fact Sheet or visit the web site of the U.S. Embassy in Baku.

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747) or via the CDC site at http://wwwn.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization's (WHO) web site at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith/en.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Azerbaijan is provided for general reference only, and may not be totally accurate in a particular location or circumstance.

Driving hazards such as open manholes, debris, sinkholes, and potholes are common. Most drivers do not pay attention to traffic regulations, signals, lanes, pedestrians, or other drivers. Drivers often travel at extremely high speed, and accidents are frequent and often serious. Driving in Baku should be considered extremely hazardous. Outside the city, even where roads are present, conditions are similar. Roads are often in poor repair and unlit, and lack lane markings, traffic signs, and warnings. Many rural roads are largely unpaved.

Public transportation throughout the country is overcrowded and poorly maintained. The U.S. Embassy strongly discourages use of the Baku Metro. Train travel in the Caucasus region is not secure.

Aviation Safety Oversight: As there is no direct commercial air service between the United States and Azerbaijan, the U.S. Federal Aviation Administration (FAA) has not assessed Azerbaijan's Civil Aviation Authority for compliance with International Civil Aviation Organization (ICAO) aviation safety standards. For more information, travelers may visit the FAA's web site at http://www.faa.gov.

Travelers on regional airlines among the countries of the Caucasus may experience prolonged delays and sudden cancellations of flights. In addition to frequent delays, flights are often overcrowded, with passengers without seats standing in the aisle along with excess unsecured cabin luggage. Even basic safety features such as seat belts are sometimes missing. Air travel to Azerbaijan on international carriers via Europe is typically more reliable.

Special Circumstances: The Republic of Azerbaijan's economy is mostly cash-only. Traveler's checks and credit cards are accepted only in some hotels and a few restaurants and supermarkets. The national currency is the new manat, introduced on January 1, 2006, at the rate of 1 new manat = 5,000 old manat. Old manats were phased out after January 1, 2007. Commercial establishments generally enforce the requirement that purchases be made with new manats.

Azerbaijani customs authorities may enforce strict regulations concerning temporary importation into or export from Azerbaijan of items such as firearms, religious materials, antiquities including carpets, medications, and caviar, and any amount of currency over USD 1000. It is advisable to contact the Embassy of Azerbaijan in Washington for specific information regarding customs requirements.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Azerbaijan's laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Azerbaijan are severe and convicted offenders can expect long jail sentences and heavy fines. Engaging in sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States.

Children's Issues: For information on international adoption of children and international parental child abduction, see the Office of Children’ Issues website at http://travel.state.gov/family.

Registration and Embassy Locations: Americans living or traveling in Azerbaijan are encouraged to register with the nearest U.S. Embassy or Consulate through the State Department's travel registration website and to obtain updated information on travel and security within Azerbaijan. Americans without Internet access may register directly with the U.S. Embassy. By registering, American citizens make it easier for the Embassy to contact them in case of emergency. The U.S. Embassy is located at Azadlig Prospekt 83; tel. (9-9412) 498-03-35, 36, or 37; (9-9412) 490-66-71; email: ConsularBaku@ state.gov; web site: http://azerbaijan.usembassy.gov. Travelers are encouraged to notify the Embassy before their permanent departure from the country.

International Adoption

August 2007

The information in this section has been edited from a report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Adoption section of this book and review current reports online at http://travel.state.gov/family.

Disclaimer: The information in this flyer relating to the legal requirements of specific foreign countries is based on public sources and current understanding. Questions involving foreign and U.S. immigration laws and legal interpretation should be addressed respectively to qualified foreign or U.S. legal counsel.

Please Note: The Azerbaijani Parliament is considering a new law on intercountry adoption. It is not clear how this law might affect future cases involving U.S. prospective adoptive parents. Once this information becomes available, the U.S. Department of State will update this flyer as necessary.

While the U.S. Embassy in Baku, Azerbaijan, handles some steps in the immigration process for adopted children from Azerbaijan, most of this process occurs at the U.S. Embassy in Tbilisi, Georgia. For more information, please see the Embassy Tbilisi web site at: http://georgia.usembassy.gov/visasadopt.html.

Adoption Authority: The “Republic Commission on Adoptions” (Adoption Commission), an inter-ministerial body headed by a Deputy Prime Minister and subordinated to the Cabinet of Ministers, is the current authority. Their address is:

Republic Commission on Adoptions
Cabinet of Ministers
Address: Lermontov St. 68
Tel: 994 12 4926623

Pending legislation may change this situation at any time. The U.S. Embassy does not have current information about the content or provisions of proposed legislation or when it may be passed.

Eligibility Requirements for Prospective Adoptive Parents: Married couples may adopt. Azerbaijani law does not officially prohibit singles from adopting, but in practice, singl men are not allowed to adopt. Prospective adoptive parents may also face difficulties.

Residency Requirements: There are no residency requirements for Azerbaijan.

Time Frame: Intercountry adoptions were suspended in March 2004 for nearly eighteen months, causing significant delays and leading most families caught in the suspension to abandon the process. While eight adoptions have been completed since the suspension was lifted in August 2005, a few adoptions that began prior to March 2004 still have not been completed as of November 2006. Given the circumstances, it is not possible to predict how long it would take to complete a new adoption at this time.

Adoption Agencies and Attorneys: There are currently only two adoption facilitators in Azerbaijan.

Eduard Chernin, President
Alesker Guseynov, Vice-President
(English-speaker)
Chernin and Partners
103 Nizami Street
Baku, Azerbaijan AZ 1010
Phone: 994124984393
Mobile: 994502201199
Email: Chernin @Azeri.Com
Fax: 994124939025

Ali Alizade
1st Micro District,
Javad Khan Street 5, Apt. 41
Baku, Azerbaijan
Phone: 994124316200
Mobile: 994503999172
Email: bakucity3@yahoo.com

Prospective adoptive parents are advised to fully research any adoption agency or facilitator they plan to use for adoption services.

Adoption Fees: Under Azeri law, there is no fee for the adoption itself, but there are fees for issuing and notarizing many of the required documents, and some parents have reported a required donation to the orphanage where the children reside.

Adoption Procedures: The following description is intended to provide a general outline only. In practice, the Azerbaijani Embassy in Washington, D.C. acts as the first point of contact and provides initial guidance on documentary requirements. Local legal representatives (agents) may handle other necessary procedures in Azerbajian. Aside from the complexity of the process, various bureaucratic delays and/or additional documentary or other demands are virtually guaranteed throughout the process.

Prospective adoptive parents register with the Azerbaijani Embassy in Washington, D.C. They first need to contact Consul Ali Garayev, and then prepare a dossier of required documents (listed in the section below). After the submitted documents are reviewed, they are returned to the parents with a letter stating that the family has registered with the Embassy.

Through their local agent in Azerbaijan, prospective parents submit their application (dossier) to the General Section of the Ministry of Health of Azerbaijan, if the child is less than 3 years old or to the Ministry of Education if the child is older. An approved dossier is forwarded to the Baku City Department of Health for registration. The Baku City Department of Health provides the prospective adoptive parents, through their agent, with information about children available for international adoption corresponding with the adoptive parents’ expressed preferences.

Once prospective parents decide to adopt a particular child, a translated and notarized agreement letter is submitted to the Baku City Department of Health, which registers the child for this family and forwards the dossier to the appropriate District Court. If adoptive parents decline a particular child, they have to wait for another available child and the procedure described above is repeated.

All documents in the dossier are presented by the agent in Azerbaijan to the District Court, which reviews them, opens a court case and forwards the dossier to the Child Welfare Department of the District Executive Office. The Child Welfare Department approves the dossier and forwards it to the Adoption Commission at the Cabinet of Ministers. The Child Welfare Department of the District Executive Office has the discretion to disapprove applications.

The Adoption Commission prepares an official document (protocol) identifying the adopting family and forwards it to the Ministry of Justice (MOJ), which reviews and certifies the accuracy and legality of the submitted dossier. The MOJ returns the protocol to the Adoption Commission to be signed by all members of the Commission before it is sent to the Chairman of the Commission for final approval.

The signed documents are returned to the Child Welfare Department of the District Executive Office which then forwards the approved case to the District Court.

The District Court schedules the hearing date and notifies the prospective adoptive parents through their local agents. Parents must appear for the scheduled court hearing. The court decision comes into force only after one month. After this time the parents may return to Azerbaijan and present the court decision to the orphanage in order to take custody of the child, obtain a new local birth certificate and passport, and proceed with the U.S. immigration process.

Required Documents: The Azerbaijani Embassy in Washington, DC provides details on documentary requirements and works with the prospective parents to compile a proper dossier.

• Passport copies of the prospective adoptive parents
• Birth certificates
• Marriage License, Divorce decree(s), if applicable
• Residency statement
• Photos, of the parents, home, etc.
• Home description
• Financial statement
• Letter of Employment
• Physical
• Power of attorney for the Azerbaijani agent/lawyer
• Criminal background check
• Petition for adoption
• Home study (to be conducted by a licensed Social Worker)
• Letters of recommendation (from friends, Employers, clergy)
• I-600A and/or 1-600
• Fingerprints

Embassy of the Republic of Azerbaijan
2741 34th Street, N.W.
Washington, D.C. 20008
Tel: 202-337-3500
Email: consul@azembassy.com
Internet: http://www.azembassy.us

U.S. Immigration Requirements: Prospective adoptive parents are strongly encouraged to consult USCIS publication M-249, The Immigration of Adopted and Prospective Adoptive Children, as well as the Department of State publication, International Adoptions. Please see the International Adoption section of this book for more details and review current reports online at http://travel.state.gov/family.

Additional Information: Specific questions about intercountry adoption in Azerbaijan may be addressed to the U.S. Embassy in Baku. Questions about the immigrant visa process at the U.S. Embassy in Tbilisi should be directed to that office. General questions regarding intercountry adoption may be addressed to the Office of Children's Issues, U.S. Department of State, CA/OCS/CI, SA-29, 4th Floor, 2201 C Street, NW, Washington, D.C. 20520-4818, toll-free Tel: 1-888-407-4747.

Azerbaijan

Compiled from the July 2006 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Republic of Azerbaijan

PROFILE

HISTORICAL HIGHLIGHTS

GOVERNMENT AND POLITICAL CONDITIONS

ECONOMY

DEFENSE AND MILITARY ISSUES

FOREIGN RELATIONS

U.S.-AZERBAIJAN RELATIONS

TRAVEL

PROFILE

Geography

Location: South Caucasus; bordered by Russia to the north, the Caspian Sea to the east, Iran to the south, and Georgia and Armenia to the west.

Area: 33,774 sq. mi. (includes Nakhchivan and Nagorno-Karabakh); slightly smaller than Maine.

Cities: Capital—Baku.

Terrain: Caucasus Mountains to the north, lowland in the central area through which the Kura River flows.

Climate: Dry, subtropical with hot summers and mild winters; forests, meadows, and alpine tundra in the mountains.

People

Nationality: Noun—Azerbaijani(s), Azeri. Adjective—Azerbaijani, Azeri.

Population: (July 2005 est.) 7,911,974.

Population growth rate: (2005 est.) 0.59%.

Net migration rate: (2005 est.) -4.64 migrant(s)/1,000 population.

Ethnic groups: (1999 census) Azeri 90.6%, Dagestani 2.2%, Russian 1.8%, Armenian 1.5%, other 3.9%. Note: the separatist Nagorno-Karabakh region is populated almost entirely by Armenians.

Religion: Muslim 93.4% (majority Shi’a), Russian Orthodox 2.5%, Armenian Orthodox Church 2.3%, and other 1.8%.

Languages: Azerbaijani 89%, Russian 3%, Armenian 2%, and other 6%.

Education: Literacy—97%.

Health: Infant mortality rate—83.41/1,000 live births (2000 est.). Life expectancy (2005 est.)—63.35 years.

Work force: (3 million) Agriculture and forestry—42.3%; industry—6.9%; construction—4.2%; other—46.6%.

Government

Type: Republic.

Constitution: Approved in November 1995 referendum.

Independence: August 30, 1991 (from Soviet Union).

Government branches: Executive—president (chief of state), prime minister (head of government), Council of Ministers (cabinet). Legislative—unicameral National Assembly (parliament). Judicial—Supreme Court.

Political subdivisions: 78 rayons, 11 cities, and 1 autonomous republic.

Political parties: New Azerbaijan Party, Popular Front Party, Musavat Party, National Independence Party, Civic Solidarity Party, Social Democratic Party, Communist Party, Liberal Party, Azerbaijan Democratic Independence Party, Islamic Party, plus 50 minor parties.

Suffrage: 18 years of age; universal.

Economy (2004)

GDP: (2004 est.) $10.2.

GDP real growth rate: (2004 est.) 9.8%; estimated 21.8% for January-September 2005.

Per capita GDP: (2004) $3,800.

Inflation rate: (2004 average) 12%.

Unemployment rate: (est.) 15%-20%.

Natural resources: Petroleum, natural gas, iron ore, nonferrous metals, alumina.

Agriculture: Products—cotton, tobacco, grain, rice, grapes, fruit, vegetables, tea, cattle, pigs, sheep, goats.

Industry: Types—petroleum and natural gas, petroleum products, oilfield equipment, steel, iron ore, cement, chemicals, petrochemicals.

Trade: Exports—$2.17 billion: oil and gas, chemicals, oilfield equipment, textiles, cotton. Imports—$1.67 billion: machinery and parts, consumer durables, foodstuffs, textiles. Major trade partners—Italy, Russia, Turkey, Israel, U.S., Iran, other EU, and other countries formerly part of the Soviet Union.

HISTORICAL HIGHLIGHTS

Azerbaijan combines the heritage of two venerable civilizations—the Seljuk Turks of the 11th century and the ancient Persians. Its name is thought to be derived from the Persian phrase “Land of Fire,” referring both to its petroleum deposits, known since ancient times, and to its status as a former center of the Zoroastrian faith. The Azerbaijani Republic borders the Iranian provinces of East and West Azerbaijan, although they have not been united into a single state in modern times.

Little is known about Azerbaijan’s history until its conquest and conversion to Islam by the Arabs in 642 AD. Centuries of prosperity as a province of the Muslim caliphate followed. After the decline of the Arab Empire, Azerbaijan was ravaged during the Mongol invasions but regained prosperity in the 13th-15th centuries under the Mongol II-Khans, the native Shirvan Shahs, and under Persia’s Safavid Dynasty.

Due to its location astride the trade routes connecting Europe to Central Asia and the Near East and on the shore of the Caspian Sea, Azerbaijan was fought over by Russia, Persia, and the Ottomans for several centuries. Finally the Russians split Azerbaijan’s territory with Persia in 1828 by the Treaty of Turkmenchay, establishing the present frontiers and extinguishing the last native dynasties of local Azerbaijani khans. The beginning of modern exploitation of the oil fields in the 1870s led to a period of unprecedented prosperity and growth in the years before World War I.

At the collapse of the Russian Empire in 1917, an independent republic was proclaimed in 1918 following an abortive attempt to establish a Transcaucasian Republic with Armenia and Georgia. Azerbaijan received de facto recognition by the Allies as an independent nation in January 1920, an independence terminated by the arrival of the Red Army in April.

Incorporated into the Transcaucasian Federated Soviet Socialist Republic in 1922, Azerbaijan became a union republic of the U.S.S.R. (Soviet Union) in 1936. The late 1980s were characterized by increasing unrest, eventually leading to a violent confrontation when Soviet troops killed 190 nationalist demonstrators in Baku in January 1990. Azerbaijan declared its independence from the U.S.S.R. on August 30, 1991.

GOVERNMENT AND POLITICAL CONDITIONS

Although the Government of Azerbaijan consists of three branches, Azerbaijan has a strong presidential system in which the legislative and judicial branches have only limited independence. The executive branch is made up of a president, his apparat, a prime minister, and the cabinet of ministers. The legislative branch consists of the 125-member parliament (Milli Majlis). Members are elected for 5-year terms, all of whom are elected from territorial districts. The judicial branch, headed by a Constitutional Court, is nominally independent.

Azerbaijan declared its independence from the former Soviet Union on August 30, 1991, with Ayaz Mutalibov, former First Secretary of the Azerbaijani Communist Party, becoming the country’s first President. Following a March 1992 massacre of Azerbaijanis at Khojali in Nagorno-Karabakh (a predominantly ethnic Armenian region within Azerbaijan), Mutalibov resigned and the country experienced a period of political instability.

The old guard returned Mutalibov to power in May 1992, but less than a week later his efforts to suspend scheduled presidential elections and ban all political activity prompted the opposition Popular Front Party (PFP) to organize a resistance movement and take power. Among its reforms, the PFP dissolved the predominantly Communist Supreme Soviet and transferred its functions to the 50-member upper house of the legislature, the National Council.

Elections in June 1992 resulted in the selection of PFP leader Abulfez Elchibey as the country’s second President. The PFP-dominated government, however, proved incapable of either credibly prosecuting the Nagorno-Karabakh conflict or managing the economy, and many PFP officials came to be perceived as corrupt and incompetent. Growing discontent culminated in June 1993 in an armed insurrection in Ganja, Azerbaijan’s second-largest city. As the rebels advanced virtually unopposed on Baku, President Elchibey fled to his native province of Nakhchivan. The National Council conferred presidential powers upon its new Speaker, Heydar Aliyev, former First Secretary of the Azerbaijani Communist Party (1969-81) and later a member of the U.S.S.R. Politburo and U.S.S.R. Deputy Prime Minister (until 1987). Elchibey was formally deposed by a national referendum in August 1993, and Aliyev was elected to a 5-year term as President in October with only token opposition. Aliyev won re-election to another 5-year term in 1998, in an election marred by serious irregularities. Presidential elections took place on October 15, 2003. Ilham Aliyev, son of former President Heydar Aliyev, was elected to the presidency in an election that did not meet international standards. He assumed office as President on October 31, 2003. Heydar Aliyev died on December 12, 2003.

Azerbaijan’s first parliament was elected in 1995. The present 125-member unicameral parliament was elected in November 2005 in an election that showed improvements in democratic processes, but still did not meet international standards. A majority of parliamentarians are from the President’s “New Azerbaijan Party, although the 2005 elections brought in a much more diverse parliament, with up to 10 opposition members and a sizeable number of independents. Many of these independents may have close ties to government, while as many as 20 others are business leaders whose political

affiliations are unknown. According to the constitution, the speaker of parliament stands next in line to the president. However, the parliament is historically a weak body with little real influence. The new Speaker is Oktay Asadov.

Principal Government Officials

Last Updated: 12/1/2006

Azerbaijan

President: Ilham ALIYEV

Prime Minister: Artur RASIZADE

First Dep. Prime Min.: Abbas ABBASOV

Dep. Prime Min.: Elchin EFENDIYEV

Dep. Prime Min.: Yaqub EYYUBOV

Dep. Prime Min.: Ali HASANOV

Dep. Prime Min.: Abid SHARIFOV

Min. of Agriculture & Food: Ismat ABBASOV

Min. of Communications & Information Technology: Ali ABBASOV

Min. of Culture & Tourism: Abulfaz GARAYEV

Min. of Defense: Safar ABIYEV, Col. Gen.

Min. of Defense Industry: Yavar JAMALOV

Min. of Ecology & Natural Resources: Huseyngulu BAGIROV

Min. of Economic Development: Heydar BABAYEV

Min. of Education: Misir MARDANOV

Min. of Emergency Situations: Kemmalladin HEYDAROV

Min. of Finance: Samir SHARIFOV

Min. of Foreign Affairs: Elmar MAMMADYAROV

Min. of Health: Oqtay SHIRALIYEV

Min. of Industry & Energy: Natiq ALIYEV

Min. of Internal Affairs: Ramil USUBOV

Min. of Justice: Fikret MAMEDOV

Min. of Labor & Social Security: Fizuli ALEKPEROV

Min. of National Security: Eldar MAHMUDOV

Min. of Sports & Youth: Azad RAHIMOV

Min. of Taxation: Fazil MAMEDOV

Min. of Transport: Ziya MAMMADOV Chmn., National Bank: Elman RUSTAMOV

Ambassador to the US: Yashar ALIYEV

Permanent Representative to the UN, New York: Agshin MEHDIYEV

Azerbaijan’s embassy in the United States is at 2741 34th Street NW, Washington, DC 20008; tel (202) 337-3500; fax (202) 337-5911; Consular tel (202) 337-5912; Consular fax (202) 337-5913; www.azembassy.com.

ECONOMY

Azerbaijan is an economy in transition in which the state continues to play a dominant role. It has important oil reserves and a significant agronomic potential based on a wide variety of climatic zones. During the late 1990s, in cooperation with the International Monetary Fund (IMF), Azerbaijan pursued a successful economic stabilization program, with annual growth exceeding 10% since 2000. Real GDP rose 10.2% in 2004 and accelerated to 21.8% for the January-September period of 2005. This figure is expected to increase dramatically now that the Baku-Tbilisi-Ceyhan (BTC) pipeline is fully functional. Output expansion has been largely driven by oil-sector foreign direct investment (FDI) and related spillover effects in the construction and transportation sectors, although there have also been substantial gains in agriculture (growth in agriculture was 5.5% in the first nine months of 2005). Inflation, which peaked at 13.7% year on year in April 2005 before easing to 11.9% year on year in September, is a major risk and could accelerate in the context of further increases in fiscal spending, high oil prices, and an inflexible exchange rate. Importantly, the higher inflation also reflects customs restrictions that are in place due to supply constraints that limit import competition and monopolies that continue to control many sectors of the economy. The national currency, the manat, is stable against the dollar, but was allowed to strengthen in 2005 by 5%. The IMF has warned that significantly more appreciation (roughly 10%) will be necessary to prevent inflation from increasing.

The 2006 budget now assumes a 70% increase in spending (in dollar terms) with the bulk going to the military, wages, infrastructure projects, and social assistance. Part of the increase in expenditures will be financed by revenues from the oil fund. The IMF has expressed concern about the impact in inflation and macroeconomic stability as well as governance if the capital budget is not well managed. The State Oil Fund (SOFAZ) was established as an extra-budgetary fund to ensure macroeconomic stability, transparency in the management of oil revenue, and the safeguarding of resources for future generations. All oil revenue profits from the development of new oil fields now flow into SOFAZ, and are held offshore. SOFAZ assets amounted to $1.3 billion as of September 2005. Nevertheless, SOFAZ’s sterilization effect is limited since it does not cover SOCAR, the State Oil Company.

Progress on economic reform has generally lagged. The government has undertaken regulatory reforms in some areas, including substantial opening of trade policy, but inefficient public administration in which commercial and regulatory interests are co-mingled limit the impact of these reforms. The government has largely completed privatization of agricultural lands and small and mediumsized enterprises. Azerbaijan is still plagued by an arbitrary tax and customs administration, a weak court system, monopolistic regulation of the market, and corruption.

For more than a century the backbone of the Azerbaijani economy has been petroleum. Now that Western oil companies are able to tap deepwater oilfields untouched by the Soviets because of poor technology, Azerbaijan is considered one of the most important spots in the world for oil exploration and development. Proven oil reserves in the Caspian Basin, which Azerbaijan shares with Russia, Kazakhstan, and Turkmenistan, are comparable in size to the North Sea, although exploration is still in the early stages.

Azerbaijan has concluded 21 production-sharing agreements with various oil companies. Azerbaijan celebrated first oil for the BTC pipeline in May 2005, and the official completion ceremony was held in Turkey July 2006. The BTC pipeline is now operational and has a maximum capacity of one million barrels per day. Eastern Caspian producers in Kazakhstan also have expressed interest in accessing this pipeline to transport a portion of their production. A Baku-Tbilisi-Erzurum gas export pipeline was sanctioned in February 2003.

Environmental Issues

Azerbaijan faces serious environmental challenges. Soil throughout the region was contaminated by DDT and toxic defoliants used in cotton production during the Soviet era. Caspian petroleum and petrochemicals industries also have contributed to present air and water pollution problems. Several environmental organizations exist in Azerbaijan, yet few funds have been allocated to begin the necessary cleanup and prevention programs. Over-fishing by poachers is threatening the survival of Caspian sturgeon stocks, the source of most of the world’s supply of caviar. The Convention on International Trade in Endangered Species has listed as threatened all sturgeon species, including all commercial Caspian varieties.

DEFENSE AND MILITARY ISSUES

In July 1992, Azerbaijan ratified the Treaty on Conventional Armed Forces in Europe (CFE), which establishes comprehensive limits on key categories of conventional military equipment and provides for the destruction of weaponry in excess of those limits. Although Azerbaijan did not provide all data required by the treaty on its conventional forces at that time, it has accepted on-site inspections of forces on its territory. Azerbaijan approved the CFE flank agreement in May 1997. It also has acceded to the nuclear Non-Proliferation Treaty as a non-nuclear weapons state. Azerbaijan participates in the North Atlantic Treaty Organization’s (NATO) Partnership for Peace.

FOREIGN RELATIONS

Azerbaijan is a member of the United Nations, the Organization for Security and Cooperation in Europe (OSCE), NATO’s Partnership for Peace, the Euro-Atlantic Partnership, the World Health Organization, CFE Treaty member state, the European Bank for Reconstruction and Development, the Council of Europe, the Community of Democracies, the International Monetary Fund, and the World Bank.

Nagorno-Karabakh

The major domestic and international issue affecting Azerbaijan is the dispute over Nagorno-Karabakh, a predominantly ethnic Armenian region within Azerbaijan. The current conflict over Nagorno-Karabakh began in 1988 when ethnic Armenian demonstrations against Azerbaijani rule broke out in both Nagorno-Karabakh and Armenia, and the Nagorno-Karabakh Supreme Soviet voted to secede from Azerbaijan. In 1990, after violent episodes in Nagorno-Karabakh, Baku, and Sumgait, the Soviet Union’s Government in Moscow declared a state of emergency in Nagorno-Karabakh, sent troops to the region, and forcibly occupied Baku. In April 1991, Azerbaijani militia and Soviet forces targeted Armenian paramilitaries operating in Nagorno-Karabakh; Moscow also deployed troops to Yerevan. Azerbaijan declared its independence from the U.S.S.R. on August 30, 1991. In September 1991, Moscow declared it would no longer support Azerbaijani military action in Nagorno-Karabakh. Armenian militants then stepped up the violence. In October 1991, a referendum in Nagorno-Karabakh approved independence.

More than 30,000 people were killed in the fighting from 1992 to 1994. In May 1992, Armenian and Karabakhi forces seized Susha (the historical, Azerbaijani-populated capital of Nagorno-Karabakh) and Lachin (thereby linking Nagorno-Karabakh to Armenia). By October 1993, Armenian and Karabakhi forces had succeeded in occupying almost all of Nagorno-Karabakh, Lachin, and large areas in southwestern Azerbaijan. As Armenian and Karabakhi forces advanced, hundreds of thousands of Azerbaijani refugees fled to other parts of Azerbaijan. In 1993, the UN Security Council adopted resolutions calling for the cessation of hostilities, unimpeded access for international humanitarian relief efforts, and the eventual deployment of a peacekeeping force in the region. The UN also called for immediate withdrawal of all ethnic Armenian forces from the occupied territories of Azerbaijan. Fighting continued, however, until May 1994 when Russia brokered a cease-fire.

Negotiations to resolve the conflict peacefully have been ongoing since 1992 under the aegis of the Minsk Group of the OSCE. The Minsk Group is currently co-chaired by Russia, France, and the U.S. and has representation from Turkey, the U.S., several European nations, Armenia, and Azerbaijan. Despite the 1994 cease-fire, sporadic violations, sniper fire, and landmine incidents continue to claim over 100 lives each year. Since 1997, the Minsk Group Co-Chairs have presented a number of proposals to serve as a framework for resolving the conflict. One side or the other rejected each of those proposals.

U.S.-AZERBAIJAN RELATIONS

The dissolution of the Soviet Union in December 1991 brought an end to the Cold War and created the opportunity to build relations with its successor states as they began a political and economic transformation. The United States opened an Embassy in Azerbaijan’s capital, Baku, in March 1992.

The United States has been actively engaged in international efforts to find a peaceful solution to the Nagorno-Karabakh conflict. The U.S. has played a leading role in the Minsk Group, which was created in 1992 by the Conference on Security and Cooperation in Europe—now the OSCE—to encourage a peaceful, negotiated resolution to the conflict between Azerbaijan and Armenia. In early 1997, the U.S. heightened its role by becoming a Co-Chair, along with Russia and France, of the Minsk Group.

The U.S. supports American investment in Azerbaijan. U.S. companies are involved in three offshore oil development projects with Azerbaijan, and U.S. companies in other fields such as telecommunications have been exploring the emerging investment opportunities in Azerbaijan.

The United States is committed to aiding Azerbaijan in its transition to democracy and formation of an open market economy. The Freedom Support Act, enacted in October 1992, has been the cornerstone of U.S. efforts to help Azerbaijan during this transition. Under the Freedom Support Act, the U.S. is providing approximately $48 million in humanitarian, democracy, and reform assistance to Azerbaijan in FY 2006.

The U.S. and Azerbaijan have signed a bilateral trade agreement, and Azerbaijan has most favored nation status. A Bilateral Investment Treaty also has been signed.

U.S. Humanitarian Assistance

U.S. humanitarian programs in Azerbaijan focus on community development, health and economic opportunities, and support services, including training and business management consultations for vulnerable populations. Under a new humanitarian initiative, the Department of State will complete six Small Reconstruction Projects (SRP) in Azerbaijan. These projects raise the standard of beneficiaries by improving conditions in beneficiary institutions such as schools, clinics, orphanages, and elderly homes. A new focus on quality health services and practices focuses on better use of health resources and health care practices through health care reform, healthy lifestyles, and the rights and responsibilities of the patient. Technical assistance is being provided to the Ministry of Health to develop policy, legal and regulatory, and finance reforms. In FY 2006, the U.S. Department of Agriculture (USDA) will fund the final year of a $3.4 million national child vaccination program. The program is financed by a grant including 10,800 metric tons of wheat to be sold in Azerbaijan. The proceeds will help complete the vaccinations of 450,000 children. The U.S. continues its humanitarian demining efforts in Azerbaijan. The Peace Corps, which began working in Azerbaijan in 2003, has 55 volunteers. Some teach English at the secondary level and others work with non-governmental organizations engaged in small and micro enterprise development.

Principal U.S. Embassy Officials

BAKU (E) Address: 83 Azadlig Prospect, Aserbaijan, AZ 1007; Phone: +994-12-498-03-35; Fax: +994-12-465-66-71; Workweek: M-F, 9:00– 18:00; Website: http://baku.usembassy.gov.

Last Updated: 10/19/2006

TRAVEL

Consular Information Sheet : September 27, 2006

Country Description: Azerbaijan is a constitutional republic with a developing economy. Western-style amenities are found in the capital, Baku, but they are generally not available outside that city.

Entry/Exit Requirements: A passport and visa are required. Travelers may obtain single-entry visas for USD 40 by mail or in person from either the Azerbaijani Embassy in Washington, D.C. or any other Azerbaijani embassy offering consular services. Travelers may also obtain single-entry, 30-day visas at the airport upon arrival. Visas are not available at the land border with Georgia. Double-entry, 90-day visas (cost $80 U.S.) and one-year multiple-entry visas (cost $250 U.S.) are only available through an Azerbaijani embassy or through the Ministry of Foreign Affairs. A letter of invitation from a contact in Azerbaijan is required, and travelers who expect to travel in the region should request a one-year, multiple-entry visa. According to Azerbaijani law, foreign nationals intending to remain in Azerbaijan for more than 30 days must register with local police within three days of their arrival.

American citizens of Armenian ancestry have had visa applications denied by the Government of Azerbaijan on the grounds that their safety cannot be guaranteed.

U.S. citizens who obtain a one-entry visa at the port of entry are permitted to remain in Azerbaijan for up to one month, after which an extension of stay must be requested. For persons in Azerbaijan, visa applications, extensions or renewals are made at the Ministry of Foreign Affairs, Shikhali Kurbanov Str., 4, Baku; tel. (9-9412) 492 34 01. For additional information, please contact the Embassy of Azerbaijan, 2741 34th Street, N.W., Washington, D.C. 20008 (tel. 202-337-3500); e-mail: azerbaijan@azembassy.com. Visit the Embassy of Azerbaijan website at http://www.azembassy.us/ for the most current visa information.

Safety and Security: As a result of conflict in the Nagorno-Karabakh area of Azerbaijan, insurgent forces occupy approximately 15 percent of Azerbaijani territory (in the southwest along the borders with Iran and Armenia). A cease-fire has been in effect in the Nagorno-Karabakh region since 1994, although reports of armed clashes along the cease-fire line and along the border with Armenia continue. Anti-personnel mines are a danger in areas close to the front lines. It is not possible to enter the self-proclaimed “Republic of Nagorno-Karabakh,” which is not recognized by the United States, from Azerbaijan. Travelers are cautioned to avoid travel to Nagorno-Karabakh and the surrounding occupied areas. Because of the existing state of hostilities, consular services are not available to Americans in Nagorno-Karabakh.

American citizens of Armenian ancestry considering travel to Azerbaijan should remain particularly vigilant when visiting the country, as the Government of Azerbaijan has claimed that it is unable to guarantee their safety.

A number of political rallies occurred in Baku in the period before and immediately after the November 2005 Parliamentary elections. While the majority of these protests were peaceful, some became confrontational and escalated into violence. Americans are reminded that even protests intended to be peaceful may turn violent and travelers are advised to avoid all demonstrations.

For the latest security information, Americans traveling abroad should regularly monitor the Department’s Internet web site where the current Travel Warnings and Public Announcements, including the Worldwide Caution Public Announcement, can be found. Up-to-date information on safety and security can also be obtained by calling 1-888-407-4747 toll free in the U.S., or for callers outside the U.S. and Canada, a regular toll-line at 1-202-501-4444. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays).

Crime: Although the Republic of Azerbaijan has a low rate of violent crime, incidents of street crime and assault on foreigners does occur. Visitors should follow the same precautions they would in any major city. Visitors should not walk alone at night, if possible. All crime incidents should be reported to the local police and U.S. Embassy. The Police Office of Crimes by and Against Foreigners has an English-speaking officer available at all times who may be reached at (994 12) 490-95-32 or, after hours, at 490-94-52.

Information for Victims of Crime: The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, contact family members or friends and explain how funds could be transferred. Although the investigation and prosecution of the crime are solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed.

Medical Facilities and Health Information: A few Western-type medical clinics, the quality of which is comparable to those in Western countries, are operating in Baku. The quality of these clinics is good. However, medical facilities outside the capital remain inadequate, unsanitary, and unsafe. There is often a shortage of basic medical supplies, including disposable needles and vaccines.

Avian Influenza: The WHO and Azerbaijani authorities have confirmed human cases of the H5N1 strain of avian influenza, commonly known as “bird flu.” Travelers to Azerbaijan and other countries affected by the virus are cautioned to avoid poultry farms, contact with animals in live food markets, and any surfaces that appear to be contaminated with feces from poultry or other animals. In addition, the CDC and WHO recommend eating only fully cooked poultry and eggs.

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention’s hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747) or via the CDC’s Internet site at http://www.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization’s (WHO) website at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Azerbaijan is provided for general reference only, and may not be totally accurate in a particular location or circumstance. Driving hazards such as open manholes, debris, sinkholes and potholes are common. Drivers do not pay attention to traffic regulations, signals, lanes, pedestrians or other drivers. Drivers often travel at extremely high speed, and accidents are frequent and often serious. Driving in Baku should be considered extremely hazardous. Outside the city, even where roads are present, conditions are similar. Roads are often in poor repair, unlit, and lack lane markings, traffic signs, and warnings. Many rural roads are largely unpaved.

Public transportation throughout the country is overcrowded and poorly maintained. The U.S. Embassy strongly discourages use of the Baku Metro. Train travel in the Caucasus region is not secure.

Aviation Safety Oversight: As there is no direct commercial air service between the United States and Azerbaijan, the U.S. Federal Aviation Administration (FAA) has not assessed Azerbaijan’s Civil Aviation Authority for compliance with International Civil Aviation Organization (ICAO) aviation safety standards. For more information, travelers may visit the FAA’s internet web site at http://www.faa.gov.

Travelers on airlines among the countries of the Caucasus may experience prolonged delays and sudden cancellations of flights. In addition to frequent delays, flights are often overcrowded with passengers without seats standing in the aisle along with excess unsecured cabin luggage. Even basic safety features such as seat belts are sometimes missing. Air travel to Azerbaijan on international carriers via the United Kingdom, Germany, and Turkey is typically more reliable.

Special Circumstances: The Republic of Azerbaijan’s economy is mostly cash-only. Traveler’s checks and credit cards are accepted only in some hotels and a few restaurants and supermarkets. The national currency is the new manat, introduced on January 1, 2006, at the rate of 1 new manat = 5,000 old manat. Old manats remain in circulation, but are expected to be phased out by January 1, 2007. Commercial establishments generally enforce the requirement that purchases be made with manats.

Azerbaijani customs authorities may enforce strict regulations concerning temporary importation into or export from Azerbaijan of items such as firearms, religious materials, antiquities including carpets, medications, and caviar, and any amount of currency over USD 1000. It is advisable to contact the Embassy of Azerbaijan in Washington for specific information regarding customs requirements.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country’s laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Azerbaijan’s laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Azerbaijan are severe, and convicted offenders can expect long jail sentences and heavy fines. Engaging in sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States.

Children’s Issues: For information on international adoption of children and international parental child abduction, see the Office of Children’s Issues website at http://travel.state.gov/family/family_1732.html.

Registration/Embassy Location: Americans living or traveling in Azerbaijan are encouraged to register with the nearest U.S. Embassy or Consulate through the State Department’s travel registration website and to obtain updated information on travel and security within Azerbaijan. Americans without Internet access may register directly with the U.S. Embassy. By registering, American citizens make it easier for the Embassy to contact them in case of emergency. The U.S. Embassy is located at Prospect Azadlig 83; tel. (9-9412) 498-03-35, 36, or 37; (9-9412) 490-66-71; email: Consular-Baku@state.gov; web site: http://www.usembassybaku.org. Travelers are encouraged to notify the embassy before their permanent departure from the country.

International Adoption : November 2006

The information below has been edited from a report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Adoption section of this book and review current reports online at www.travel.state.gov/family.

Disclaimer: The information in this flyer relating to the legal requirements of specific foreign countries is based on public sources and current understanding. Questions involving foreign and U.S. immigration laws and legal interpretation should be addressed respectively to qualified foreign or U.S. legal counsel.

Patterns of Immigration: Please review current reports online at www.travel.state.gov/family.

Please Note: The Azerbaijani Parliament is considering a new law on intercountry adoption. It is not clear how this law might affect future cases involving U.S. prospective adoptive parents. Once this information becomes available, the U.S. Department of State will update this flyer as necessary.

While the U.S. Embassy in Baku, Azerbaijan, handles some steps in the immigration process for adopted children from Azerbaijan, most of this process occurs at the U.S. Embassy in Tbilisi, Georgia. For more information, please see the Embassy Tbilisi web site at: http://georgia.usembassy.gov/visasadopt.html.

Adoption Authority: The “Republic Commission on Adoptions” (Adoption Commission), an inter-ministerial body headed by a Deputy Prime Minister and subordinated to the Cabinet of Ministers, is the current authority. Their address is:

Republic Commission on Adoptions
Cabinet of Ministers
Address: Lermontov St. 68
Tel: 994 12 4926623

Pending legislation may change this situation at any time. The U.S. Embassy does not have current information about the content or provisions of proposed legislation or when it may be passed.

Eligibility Requirements: Married couples may adopt. Azerbaijani law does not officially prohibit singles from adopting, but in practice, single men are not allowed to adopt. Prospective adoptive parents may also face difficulties.

Residency Requirements: There are no residency requirements for Azerbaijan.

Time Frame: Intercountry adoptions were suspended in March 2004 for nearly eighteen months, causing significant delays and leading most families caught in the suspension to abandon the process. While eight adoptions have been completed since the suspension was lifted in August 2005, a few adoptions that began prior to March 2004 still have not been completed as of November 2006. Given the circumstances, it is not possible to predict how long it would take to complete a new adoption at this time.

Adoption Agencies and Attorneys: There are currently only two adoption facilitators in Azerbaijan.

Eduard Chernin, President
Alesker Guseynov, Vice-President
(English-speaker)

Chernin and Partners
103 Nizami Street
Baku, Azerbaijan AZ 1010
Phone: 994124984393
Mobile: 994502201199
Email: Chernin @Azeri.Com
Fax: 994124939025

Ali Alizade
1st Micro District
Javad Khan Street 5, Apt. 41
Baku, Azerbaijan
Phone: 994124316200
Mobile: 994503999172
Email: bakucity3@yahoo.com

Please see the International Adoption section of this book for more details and review current reports online at www.travel.state.gov/family.

Adoption Fees: Under Azeri law, there is no fee for the adoption itself, but there are fees for issuing and notarizing many of the required documents, and some parents have reported a required donation to the orphanage where the children reside.

Adoption Procedures: Prospective adoptive parents register with the Azerbaijani Embassy in Washington, D.C. They first need to prepare a dossier of required documents. Through their local agent in Azerbaijan, prospective parents submit their application (dossier) to the General Section of the Ministry of Health of Azerbaijan, if the child is less than 3 years old or to the Ministry of Education if the child is older. Approved dossier is forwarded to the Baku City Department of Health for registration. The Baku City Department of Health provides the prospective adoptive parents, through their agent, with information about children available for international adoption corresponding with the adoptive parents’ expressed preferences.

Once prospective parents decide to adopt a particular child, a translated and notarized agreement letter is submitted to the Baku City Department of Health, which registers the child for this family and forwards the dossier to the appropriate District Court, which reviews them, opens a court case and forwards the dossier to the Child Welfare Department of the District Executive Office. The Child Welfare Department approves the dossier and forwards it to the Adoption Commission at the Cabinet of Ministers. The Adoption Commission prepares an official document (protocol) identifying the adopting family and forwards it to the Ministry of Justice (MOJ), which reviews and certifies the accuracy and legality of the submitted dossier.

The MOJ returns the protocol to the Adoption Commission to be signed by all members of the Commission before it is sent to the Chairman of the Commission for final approval.

The signed documents are returned to the Child Welfare Department of the District Executive Office which then forwards the approved case to the District Court.

The District Court schedules the hearing date and notifies the prospective adoptive parents through their local agents. Parents must appear for the scheduled court hearing. The court decision comes into force only after one month. After this time the parents may return to Azerbaijan and present the court decision to the orphanage in order to take custody of the child, obtain a new local birth certificate and passport, and proceed with the U.S. immigration process.

Documentary Requirements: The Azerbaijani Embassy in Washington, DC provides details on documentary requirements and works with the prospective parents to compile a proper dossier.

• Passport copies of the prospective adoptive parents
• Birth certificates
• Marriage License, Divorce decree(s), if applicable
• Residency statement
• Photos, of the parents, home, etc.
• Home description
• Financial statement
• Letter of Employment
• Physical
• Power of attorney for the Azerbaijani agent/lawyer
• Criminal background check
• Petition for adoption
• Home study (to be conducted by a licensed Social Worker)
• Letters of recommendation (from friends, Employers, clergy)
• I-600A and/or I-600
• Fingerprints

Embassy in the United States: Embassy of the Republic of Azerbaijan; 2741 34th Street, N.W.; Washington, D.C. 20008; Tel: 202-337-3500; Email: consul@azembassy.com; Internet: http://www.azembassy.us.

U.S. Immigration Requirements: Prospective adopting parents are strongly encouraged to consult USCIS publication M-249, The Immigration of Adopted and Prospective Adoptive Children, as well as the Department of State publication, International Adoptions. Please see the International Adoption section of this book for more details and review current reports online at travel.state.gov/family.

U.S. Embassy in Azerbaijan:
11 George Balanchine Street
Tbilisi, Georgia, 0131
Telephone: (995 32) 27-70-00
Fax: (995 32) 53-23-1004
E-mail: consulate-tbilisi@state.gov

Additional Information: Specific questions about intercountry adoption in Azerbaijan may be addressed to the U.S. Embassy in Baku. Questions about the immigrant visa process at the U.S. Embassy in Tbilisi should be directed to that office. General questions regarding intercountry adoption may be addressed to the Office of Children’s Issues, U.S. Department of State, CA/OCS/CI, SA-29, 4th Floor, 2201 C Street, NW, Washington, D.C. 20520-4818, toll-free Tel: 1-888-407-4747.