Introduction

 

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

 

Geography

 

Location: Southwestern Asia, bordering the Caspian Sea, between Iran and Russia, with a small European portion north of the Caucasus range
 

Geographic coordinates: 40 30 N, 47 30 E
 

Map references: Asia

 

Area: total: 86,600 sq km; land: 86,100 sq km; water: 500 sq km;

note: includes the exclave of Naxcivan and the Nagorno-Karabakh region; the region's autonomy was abolished by Azerbaijani Supreme Soviet on 26 November 1991 Autonomous Republic

 

Area - comparative: slightly smaller than Maine
 

Land boundaries: total: 2,013 km; border countries: Armenia (with Azerbaijan-proper) 566 km, Armenia (with Azerbaijan-Naxcivan exclave) 221 km, Georgia 322 km, Iran (with Azerbaijan-proper) 432 km, Iran (with Azerbaijan-Naxcivan exclave) 179 km, Russia 284 km, Turkey 9 km
 

Coastline: 0 km (landlocked); note - Azerbaijan borders the Caspian Sea (800 km, est.)
 

Maritime claims: none (landlocked)
 

Climate: dry, semiarid steppe
 

Terrain: large, flat Kur-Araz Ovaligi (Kura-Araks Lowland) (much of it below sea level) with Great Caucasus Mountains to the north, Qarabag Yaylasi (Karabakh Upland) in west; Baku lies on Abseron Yasaqligi (Apsheron Peninsula) that juts into Caspian Sea

 

Elevation extremes: lowest point: Caspian Sea -28 m; highest point: Bazarduzu Dagi 4,485 m
 

Natural resources: petroleum, natural gas, iron ore, nonferrous metals, alumina
 

Land use: arable land: 19.63%; permanent crops: 2.71%; other: 77.66% (2001)
 

Irrigated land: 14,550 sq km (1998 est.)
 

Natural hazards: droughts
 

Environment - current issues: local scientists consider the Abseron Yasaqligi (Apsheron Peninsula) (including Baku and Sumqayit) and the Caspian Sea to be the ecologically most devastated area in the world because of severe air, soil, and water pollution; soil pollution results from oil spills, from the use of DDT as a pesticide, and from toxic defoliants used in the production of cotton
 

Environment - international agreements: party to: Air Pollution, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Marine Dumping, Ozone Layer Protection, Wetlands

signed, but not ratified: none of the selected agreements
 

Geography - note: both the main area of the country and the Naxcivan exclave are landlocked

 

People

 

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

Age structure:

0-14 years: 26.4% (male 1,063,731/female 1,028,684); 15-64 years: 65.7% (male 2,533,762/female 2,665,381); 65 years and over: 7.8% (male 245,758/female 374,658) (2005 est.)
 

Median age: total: 27.53 years; male: 26.09 years; female: 29 years (2005 est.)
 

Population growth rate: 0.59% (2005 est.)
 

Birth rate: 20.4 births/1,000 population (2005 est.)
 

Death rate: 9.86 deaths/1,000 population (2005 est.)
 

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

Sex ratio: at birth: 1.05 male(s)/female; under 15 years: 1.03 male(s)/female;15-64 years: 0.95 male(s)/female;65 years and over: 0.66 male(s)/female; total population: 0.94 male(s)/female (2005 est.)
 

Infant mortality rate: total: 81.74 deaths/1,000 live births; male: 83.58 deaths/1,000 live births; female: 79.8 deaths/1,000 live births (2005 est.);

Life expectancy at birth: total population: 63.35 years; male: 59.24 years; female: 67.66 years (2005 est.)

Total fertility rate: 2.44 children born/woman (2005 est.)
 

HIV/AIDS - adult prevalence rate: less than 0.1% (2003 est.)

 

HIV/AIDS - people living with HIV/AIDS: 1,400 (2003 est.)
 

HIV/AIDS - deaths: less than 100 (2001 est.)
 

Nationality: noun: Azerbaijani(s); adjective: Azerbaijani
 

Ethnic groups: Azeri 90.6%, Dagestani 2.2%, Russian 1.8%, Armenian 1.5%, other 3.9% (1999 census)

note: almost all Armenians live in the separatist Nagorno-Karabakh region
 

Religions: Muslim 93.4%, Russian Orthodox 2.5%, Armenian Orthodox 2.3%, other 1.8% (1995 est.)

note: religious affiliation is still nominal in Azerbaijan; percentages for actual practicing adherents are much lower

Languages: Azerbaijani (Azeri) 89%, Russian 3%, Armenian 2%, other 6% (1995 est.)
 

Literacy: definition: age 15 and over can read and write; total population: 97%;male: 99%;female: 96% (1989 est.)

 

Government

 

Country name: conventional long form: Republic of Azerbaijan;conventional short form: Azerbaijan;local long form: Azarbaycan Respublikasi; local short form: none; former: Azerbaijan Soviet Socialist Republic
 

Government type: republic
 

Capital: Baku (Baki)
 

Administrative divisions: 59 rayons (rayonlar; rayon - singular), 11 cities* (saharlar; sahar - singular), 1 autonomous republic** (muxtar respublika)

rayons: Abseron Rayonu, Agcabadi Rayonu, Agdam Rayonu, Agdas Rayonu, Agstafa Rayonu, Agsu Rayonu, Astara Rayonu, Balakan Rayonu, Barda Rayonu, Beylaqan Rayonu, Bilasuvar Rayonu, Cabrayil Rayonu, Calilabad Rayonu, Daskasan Rayonu, Davaci Rayonu, Fuzuli Rayonu, Gadabay Rayonu, Goranboy Rayonu, Goycay Rayonu, Haciqabul Rayonu, Imisli Rayonu, Ismayilli Rayonu, Kalbacar Rayonu, Kurdamir Rayonu, Lacin Rayonu, Lankaran Rayonu, Lerik Rayonu, Masalli Rayonu, Neftcala Rayonu, Oguz Rayonu, Qabala Rayonu, Qax Rayonu, Qazax Rayonu, Qobustan Rayonu, Quba Rayonu, Qubadli Rayonu, Qusar Rayonu, Saatli Rayonu, Sabirabad Rayonu, Saki Rayonu, Salyan Rayonu, Samaxi Rayonu, Samkir Rayonu, Samux Rayonu, Siyazan Rayonu, Susa Rayonu, Tartar Rayonu, Tovuz Rayonu, Ucar Rayonu, Xacmaz Rayonu, Xanlar Rayonu, Xizi Rayonu, Xocali Rayonu, Xocavand Rayonu, Yardimli Rayonu, Yevlax Rayonu, Zangilan Rayonu, Zaqatala Rayonu, Zardab Rayonu

cities: Ali Bayramli Sahari, Baki Sahari, Ganca Sahari, Lankaran Sahari, Mingacevir Sahari, Naftalan Sahari, Saki Sahari, Sumqayit Sahari, Susa Sahari, Xankandi Sahari, Yevlax Sahari

autonomous republic: Naxcivan Muxtar Respublikasi
 

Independence: 30 August 1991 (from Soviet Union)

 

National holiday: Founding of the Democratic Republic of Azerbaijan, 28 May (1918)

Constitution: adopted 12 November 1995

 

Legal system: based on civil law system
 

Suffrage: 18 years of age; universal
 

Executive branch: chief of state: President Ilham ALIYEV (since 31 October 2003)

head of government: Prime Minister Artur RASIZADE (since 4 November 2003); First Deputy Prime Minister Abbas ABBASOV (since 10 November 2003)

cabinet: Council of Ministers appointed by the president and confirmed by the National Assembly

elections: president elected by popular vote to a five-year term; election last held 15 October 2003 (next to be held October 2008); prime minister and first deputy prime ministers appointed by the president and confirmed by the National Assembly

election results: Ilham ALIYEV elected president; percent of vote - Ilham ALIYEV 76.8%, Isa GAMBAR 14%
 

Legislative branch: unicameral National Assembly or Milli Mejlis (125 seats; members elected by popular vote to serve five-year terms)

elections: last held 4 November 2000 (next to be held NA November 2005)

note: 100 members of the current parliament were elected on the basis of single mandate constituencies, while 25 were elected based on proportional balloting; as a result of a 24 August 2002 national referendum on changes to the constitution, all 125 members of the next parliament will be elected from single mandate constituencies

election results: percent of vote by party - NA%; seats by party - NAP and allies 108, APF "Reform" 6, CSP 3, PNIA 2, Musavat Party 2, CPA 2, APF "Classic" 1, Compatriot Party 1

note: PNIA, Musavat, and APF "Classic" parties refused to take their seats
 

Judicial branch: Supreme Court

 

Economy

 

Economy - overview: Azerbaijan's number one export is oil. Azerbaijan's oil production declined through 1997 but has registered an increase every year since. Negotiation of production-sharing arrangements (PSAs) with foreign firms, which have thus far committed $60 billion to long-term oilfield development, should generate the funds needed to spur future industrial development. Oil production under the first of these PSAs, with the Azerbaijan International Operating Company, began in November 1997. Azerbaijan shares all the formidable problems of the former Soviet republics in making the transition from a command to a market economy, but its considerable energy resources brighten its long-term prospects. Baku has only recently begun making progress on economic reform, and old economic ties and structures are slowly being replaced. One obstacle to economic progress is the need for stepped up foreign investment in the non-energy sector. A second obstacle is the continuing conflict with Armenia over the Nagorno-Karabakh region. Trade with Russia and the other former Soviet republics is declining in importance while trade is building with Turkey and the nations of Europe. Long-term prospects will depend on world oil prices, the location of new pipelines in the region, and Azerbaijan's ability to manage its oil wealth.
 

GDP: purchasing power parity - $30.01 billion (2004 est.)
 

GDP - real growth rate: 9.8% (2004 est.)
 

GDP - per capita: purchasing power parity - $3,800 (2004 est.)
 

GDP - composition by sector: agriculture: 14.1%;industry: 45.7%;services: 40.2% (2002 est.)
 

Labor force: 5.09 million (2004 est.)
 

Labor force - by occupation: agriculture and forestry 41%, industry 7%, services 52% (2001)
 

Unemployment rate: 1.2% (official rate) (2004 est.)
 

Population below povery line: 49% (2002 est.)
 

Household income or consumption by percentage share: lowest 10%: 2.8%;highest 10%: 27.8% (1995)
 

Distribution of family income - Gini index: 36 (1995)
 

Inflation rate (consumer prices): 4.6% (2004 est.)

Investment (gross fixed): 65.1% of GDP (2004 est.)
 

Budget: revenues: $2.715 billion;expenditures: $2.801 billion, including capital expenditures of NA (2004 est.)
 

Public debt: 18.9% of GDP (2004 est.)

 

Agriculture - products: cotton, grain, rice, grapes, fruit, vegetables, tea, tobacco; cattle, pigs, sheep, goats
 

Industries: petroleum and natural gas, petroleum products, oilfield equipment; steel, iron ore, cement; chemicals and petrochemicals; textiles

 

Industrial production growth rate: 4% (2004 est.)

 

Electricity - production: 17.55 billion kWh (2002)

 

Electricity - consumption: 17.37 billion kWh (2002)

 

Electricity - exports: 505 million kWh (2002)

 

Electricity - imports: 1.558 billion kWh (2002)

 

Oil - production: 312,800 bbl/day (2004 est.)

 

Oil - consumption: 140,000 bbl/day (2001 est.)

 

Oil - exports: NA

 

Oil - imports: NA

 

Oil - proved reserves: 589 million bbl (1 January 2002)

 

Natural gas - production: 5.72 billion cu m (2001 est.)

 

Natural gas - consumption: 6.72 billion cu m (2001 est.)

 

Natural gas - exports: 0 cu m (2001 est.)

 

Natural gas - imports: 1 billion cu m (2001 est.)

 

Natural gas - proved reserves: 62.3 billion cu m (1 January 2002)

 

Current account balance: $-2.899 billion (2004 est.)

 

Exports: $3.168 billion f.o.b. (2004 est.)

 

Exports - commodities: oil and gas 90%, machinery, cotton, foodstuffs

 

Exports - partners: Italy 31.1%, Czech Republic 14.5%, Germany 9.4%, Turkey 6.1%, Russia 6%, Georgia 5.3%, France 4.9% (2004)

 

Imports: $3.622 billion f.o.b. (2004 est.)

 

Imports - commodities: machinery and equipment, oil products, foodstuffs, metals, chemicals

 

Imports - partners: UK 13.9%, Russia 13.1%, Turkey 11.5%, Germany 8%, Netherlands 5.3%, China 5%, US 4.7%, Italy 4.5%, Ukraine 4.3% (2004)

 

Reserves of foreign exchange and gold: $875 million (2004 est.)

 

Debt - external: $1.832 billion (2004 est.)

 

Economic aid - recipient: ODA, $140 million (2000 est.)

 

Currency (code): Azerbaijani manat (AZM)

 

Exchange rates: Azerbaijani manats per US dollar - 4,913.48 (2004), 4,910.73 (2003), 4,860.82 (2002), 4,656.58 (2001), 4,474.15 (2000)

 

Fiscal year: calendar year

 

Communications

 

Telephones - main lines in use: 923,800 (2002)