Azerbaijan

§1. Azerbaijan Introduction

Background:
  Azerbaijan - a nation with a Turkic and majority-Muslim population - was
  briefly independent from 1918 to 1920; it regained its independence after
  the collapse of the Soviet Union in 1991. Despite a 1994 cease-fire,
  Azerbaijan has yet to resolve its conflict with Armenia over the
  Azerbaijani Nagorno-Karabakh enclave (largely Armenian populated).
  Azerbaijan has lost 16% of its territory and must support some 528,000
  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.

§2. Azerbaijan 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 km²
  land: 86,100 km²
  water: 500 km²
  note: includes the exclave of Naxcivan Autonomous Republic and the
    Nagorno-Karabakh region; the region's autonomy was abolished by
    Azerbaijani Supreme Soviet on 26 November 1991

Area - comparative:
  slightly smaller than Maine

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

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

Maritime claims:
  none (landlocked)

Climate:
  dry, semiarid steppe

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

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

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

Land use:
  arable land: 20.62%
  permanent crops: 2.61%
  other: 76.77% (2005)

Irrigated land:
  14,550 km² (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

§3. Azerbaijan People

Population:
  7,961,619 (July 2006 est.)

Age structure:
  0-14 years: 25.8% (male 1,046,501/female 1,011,492)
  15-64 years: 66.3% (male 2,573,134/female 2,706,275)
  65 years and over: 7.8% (male 246,556/female 377,661) (2006 est.)

Median age:
  total: 27.7 years
  male: 26.3 years
  female: 29.2 years (2006 est.)

Population growth rate:
  0.66% (2006 est.)

Birth rate:
  20.74 births/1,000 population (2006 est.)

Death rate:
  9.75 deaths/1,000 population (2006 est.)

Net migration rate:
  -4.38 migrant(s)/1,000 population (2006 est.)

Sex ratio:
  at birth: 1.05 male(s)/female
  under 15 years: 1.04 male(s)/female
  15-64 years: 0.95 male(s)/female
  65 years and over: 0.65 male(s)/female
  total population: 0.94 male(s)/female (2006 est.)

Infant mortality rate:
  total: 79 deaths/1,000 live births
  male: 81.08 deaths/1,000 live births
  female: 76.81 deaths/1,000 live births (2006 est.)

Life expectancy at birth:
  total population: 63.85 years
  male: 59.78 years
  female: 68.13 years (2006 est.)

Total fertility rate:
  2.46 children born/woman (2006 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), Azeri(s)
  adjective: Azerbaijani, Azeri

Ethnic groups:
  Azeri 90.6%, Dagestani 2.2%, Russian 1.8%, Armenian 1.5%, other 3.9% (1999
  census)
  note: almost all Armenians live in the separatist Nagorno-Karabakh region

Religions:
  Muslim 93.4%, Russian Orthodox 2.5%, Armenian Orthodox 2.3%, other 1.8%
  (1995 est.)
  note: religious affiliation is still nominal in Azerbaijan; percentages for
    actual practicing adherents are much lower

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

Literacy:
  definition: age 15 and over can read and write
  total population: 98.8%
  male: 99.5%
  female: 98.2% (2003 est.)

§4. Azerbaijan 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 6 November 2005 (next to be held in November 2010)
  election results: percent of vote by party - NA%; seats by party - NAP 58,
    Azadliq coalition 8, CSP 2, YES 2, Motherland 2, other parties with
    single seats 7, independents 42, undetermined 4

Judicial branch:
  Supreme Court

Political parties and leaders:
  Azerbaijan Popular Front or APF [Ali KARIMLI, leader of "Reform" faction;
  Mirmahmud MIRALI-OGLU, leader of "Classic" faction]; Civic Solidarity Party
  or CSP [Sabir RUSTAMKHANLY]; Civic Union Party [Ayaz MUTALIBOV]; Communist
  Party of Azerbaijan or CPA [Ramiz AHMADOV]; Compatriot Party [Mais
  SAFARLI]; Democratic Party for Azerbaijan or DPA [Rasul QULIYEV, chairman];
  Justice Party [Ilyas ISMAILOV]; Liberal Party of Azerbaijan [Lala Shovkat
  HACIYEVA]; Motherland Party [leader NA]; Musavat [Isa GAMBAR, chairman];
  New Azerbaijan Party or NAP [vacant]; Party for National Independence of
  Azerbaijan or PNIA [Etibar MAMMADLI, chairman]; Social Democratic Party of
  Azerbaijan or SDP [Araz ALIZADE and Ayaz MUTALIBOV]
  note: opposition parties regularly factionalize and form new parties

Political pressure groups and leaders:
  Sadval, Lezgin movement; self-proclaimed Armenian Nagorno-Karabakh
  Republic; Talysh independence movement; Union of Pro-Azerbaijani Forces
  (UPAF)

International organization participation:
  AsDB, BSEC, CE, CIS, EAPC, EBRD, ECO, FAO, GUAM, IAEA, IBRD, ICAO, ICFTU,
  ICRM, IDA, IDB, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, IPU,
  ISO, ITU, MIGA, NAM (observer), OAS (observer), OIC, OPCW, OSCE, PFP, UN,
  UNCTAD, UNESCO, UNIDO, UPU, WCO, WFTU, WHO, WIPO, WMO, WToO, WTO (observer)

Diplomatic representation in the US:
  chief of mission: Ambassador Hafiz PASHAYEV
  chancery: 2741 34th Street NW, Washington, DC 20008
  telephone: [1] (202) 337-3500
  FAX: [1] (202) 337-5911

Diplomatic representation from the US:
  chief of mission: Ambassador Reno L. HARNISH III
  embassy: 83 Azadlyg Prospecti, Baku AZ1007
  mailing address: American Embassy Baku, Department of State, 7050 Baku
    Place, Washington, DC 20521-7050
  telephone: [994] (12) 4980-335 through 337
  FAX: [994] (12) 4983-755

Flag description:
  three equal horizontal bands of blue (top), red, and green; a crescent and
  eight-pointed star in white are centered in red band

§5. Azerbaijan 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. A consortium of Western oil
  companies is scheduled to begin pumping 1 million barrels a day from a
  large offshore field in early 2006, through a $4 billion pipeline it built
  from Baku to Turkey's Mediterranean port of Ceyhan. Economists estimate
  that by 2010 revenues from this project will double the country's current
  GDP. Azerbaijan shares all the formidable problems of the former Soviet
  republics in making the transition from a command to a market economy, but
  its considerable energy resources brighten its long-term prospects. Baku
  has only recently begun making progress on economic reform, and old
  economic ties and structures are slowly being
  replaced. Several other obstacles impede Azerbaijan's economic progress:
    the need for stepped up foreign investment in the non-energy sector, the
    continuing conflict with Armenia over the Nagorno-Karabakh region, and
    the pervasive corruption. Trade with Russia and the other former Soviet
    republics is declining in importance while trade is building with Turkey
    and the nations of Europe. Long-term prospects will depend on world oil
    prices, the location of new pipelines in the region, and Azerbaijan's
    ability to manage its oil wealth.

GDP (purchasing power parity):
  $37.03 billion (2005 est.)

GDP (official exchange rate):
  $10.67 billion (2005 est.)

GDP - real growth rate:
  19.7% (2005 est.)

GDP - per capita (PPP):
  $4,700 (2005 est.)

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

Labor force:
  5.45 million (2005 est.)

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

Unemployment rate:
  1.2% official rate (2005 est.)

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

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

Distribution of family income - Gini index:
  36.5 (2001)

Inflation rate (consumer prices):
  12% (2005 est.)

Investment (gross fixed):
  57.4% of GDP (2005 est.)

Budget:
  revenues: $3.18 billion
  expenditures: $2.986 billion; including capital expenditures of $NA (2005
    est.)

Public debt:
  13.9% of GDP (2005 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:
  25% (2005 est.)

Electricity - production:
  20 billion kWh (2003)

Electricity - consumption:
  20.25 billion kWh (2003)

Electricity - exports:
  700 million kWh (2003)

Electricity - imports:
  2.35 billion kWh (2003)

Oil - production:
  477,000 bbl/day (2005 est.)

Oil - consumption:
  123,000 bbl/day (2003 est.)

Oil - exports:
  NA bbl/day

Oil - imports:
  NA bbl/day

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

Natural gas - production:
  5.13 billion m³ (2003 est.)

Natural gas - consumption:
  9.2 billion m³ (2003 est.)

Natural gas - exports:
  0 m³ (2001 est.)

Natural gas - imports:
  1 billion m³ (2001 est.)

Natural gas - proved reserves:
  849.5 billion m³ (1 January 2002)

Current account balance:
  $-1.53 billion (2005 est.)

Exports:
  $6.117 billion f.o.b. (2005 est.)

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

Exports - partners:
  Italy 26.6%, Czech Republic 11.9%, Germany 8.1%, Indonesia 6.4%, Romania
  6.2%, Georgia 6%, Russia 5.3%, Turkey 5.2%, France 4.1% (2004)

Imports:
  $4.656 billion f.o.b. (2005 est.)

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

Imports - partners:
  Russia 16.1%, UK 12.5%, Turkey 10.5%, Germany 7.8%, Ukraine 5.6%,
  Netherlands 4.9%, US 4.1%, Italy 4% (2004)

Reserves of foreign exchange and gold:
  $1.2 billion (2005 est.)

Debt - external:
  $2.253 billion (2005 est.)

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

Currency (code):
  Azerbaijani manat (AZM)

Exchange rates:
  Azerbaijani manats per US dollar - 4,727.1 (2005), 4,913.48 (2004),
  4,910.73 (2003), 4,860.82 (2002), 4,656.58 (2001)

Fiscal year:
  calendar year

§6. Azerbaijan Communications

Telephones - main lines in use:
  1,025,400 (2004)

Telephones - mobile cellular:
  1,456,500 (2004)

Telephone system:
  general assessment: inadequate; requires considerable expansion and
    modernization; teledensity of 10 main lines per 100 persons is low (2002)
  domestic: the majority of telephones are in Baku and other industrial
    centers - about 700 villages still without public telephone service;
    satellite service connects Baku to a modern switch in its exclave of
    Naxcivan
  international: country code - 994; the old Soviet system of cable and
    microwave is still serviceable; satellite earth stations - 2 (2005)

Radio broadcast stations:
  AM 10, FM 17, shortwave 1 (1998)

Television broadcast stations:
  2 (1997)

Internet country code:
  .az

Internet hosts:
  460 (2005)

Internet users:
  408,000 (2005)

§7. Azerbaijan Transportation

Airports:
  45 (2005)

Airports - with paved runways:
  total: 27
  over 3,047 m: 2
  2,438 to 3,047 m: 6
  1,524 to 2,437 m: 15
  914 to 1,523 m: 3
  under 914 m: 1 (2005)

Airports - with unpaved runways:
  total: 18
  914 to 1,523 m: 3
  under 914 m: 15 (2005)

Heliports:
  2 (2005)

Pipelines:
  gas 4,451 km; oil 1,518 km (2004)

Railways:
  total: 2,957 km
  broad gauge: 2,957 km 1.520-m gauge (1,278 km electrified) (2004)

Roadways:
  total: 27,016 km
  paved: 12,698 km (including 128 km of expressways)
  unpaved: 14,318 km (2003)

Merchant marine:
  total: 84 ships (1000 GRT or over) 405,395 GRT/437,088 DWT
  by type: cargo 26, passenger 2, passenger/cargo 8, petroleum tanker 43,
    roll on/roll off 2, specialized tanker 3
  registered in other countries: 4 (Georgia 2, Malta 2) (2005)

Ports and terminals:
  Baku (Baki)

§8. Azerbaijan Military

Military branches:
  Army, Navy, Air and Air Defense Forces

Military service age and obligation:
  18 years of age for compulsory and voluntary military service; law passed
  December 2001 raises maximum conscription age from 28 to 35 (December 2001)

Manpower available for military service:
  males age 18-49: 1,961,973 (2005 est.)

Manpower fit for military service:
  males age 18-49: 1,314,955 (2005 est.)

Manpower reaching military service age annually:
  males: 82,358 (2005 est.)

Military expenditures - dollar figure:
  $121 million (FY99)

Military expenditures - percent of GDP:
  2.6% (FY99)

§9. Azerbaijan Transnational Issues

Disputes - international:
  Armenia supports ethnic Armenian secessionists in Nagorno-Karabakh and
  since the early 1990s has militarily occupied 16% of Azerbaijan; over
  800,000 mostly ethnic Azerbaijanis were driven from the occupied lands and
  Armenia; about 230,000 ethnic Armenians were driven from their homes in
  Azerbaijan into Armenia; Azerbaijan seeks transit route through Armenia to
  connect to Naxcivan exclave; Organization for Security and Cooperation in
  Europe (OSCE) continues to mediate dispute; Azerbaijan, Kazakhstan, and
  Russia ratify Caspian seabed delimitation treaties based on equidistance,
  while Iran continues to insist on an even one-fifth allocation and
  challenges Azerbaijan's hydrocarbon exploration in disputed waters;
  bilateral talks continue with Turkmenistan on dividing the seabed and
  contested oilfields in the middle of the Caspian; Azerbaijan and Georgia
  continue to discuss the alignment of their boundary at certain crossing
  areas

Refugees and internally displaced persons:
  refugees (country of origin): 8,367 (Russia)
  IDPs: 528,000 (conflict with Armenia over Nagorno-Karabakh) (2005)

Illicit drugs:
  limited illicit cultivation of cannabis and opium poppy, mostly for CIS
  consumption; small government eradication program; transit point for
  Southwest Asian opiates bound for Russia and to a lesser extent the rest of
  Europe


<Factbook 2006>
