Republic of Azerbaijan Azərbaycan Respublikası
Flag Emblem
Anthem: Azərbaycan marşı (English: March of Azerbaijan)
Location of Azerbaijan
Capital (and largest city)		Baku 40°25′N 49°50′E / 40.417°N 49.833°E / 40.417; 49.833
Official language(s)		Azerbaijani
Ethnic groups		91.60% Azerbaijani 2.02% Lezgian 1.35% Armenian 1.34% Russian 1.26% Talysh 2.43% other
Demonym		Azerbaijani
Government		Unitary presidential constitutional republic
-	President	Ilham Aliyev
-	Prime Minister	Artur Rasizade
Legislature		National Assembly
Statehood formation
-	Caucasian Albania	4th century BC
-	Atabegs of Azerbaijan	1135
-	Azerbaijan Democratic Republic	28 May 1918
-	Azerbaijan Soviet Socialist Republic	28 April 1920
-	Independence from the Soviet Union Declared Completed	30 August 1991 18 October 1991
-	Constitution of Azerbaijan adopted	12 November 1995
Area
-	Total	86,600 km2 (114th) 33,436 sq mi
-	Water (%)	1.6%
Population
-	2011 estimate	9,165,000[1] (89th)
-	1999 census	7,953,438
-	Density	105.8/km2 (103th) 274.1/sq mi
GDP (PPP)		2011 estimate
-	Total	$93.055 billion[2]
-	Per capita	$10,201[2]
GDP (nominal)		2011 estimate
-	Total	$62.321 billion[2]
-	Per capita	$6,832[2]
Gini (2008)		33.7[3] (medium)
HDI (2010)		0.713[4] (high) (67th)
Currency		Manat (AZN)
Time zone		AZT (UTC+04)
-	Summer (DST)	(UTC+5)
Drives on the		right
ISO 3166 code		AZ
Internet TLD		.az
Calling code		994

Azerbaijan (ⁱ/ˌæzərbaɪˈdʒɑːn/ AZ-ər-by-JAHN; Azerbaijani: Azərbaycan), officially the Republic of Azerbaijan (Azerbaijani: Azərbaycan Respublikası) is the largest country in the Caucasus region located at the crossroads of Western Asia and Eastern Europe,^[5] it is bounded by the Caspian Sea to the east, Russia to the north, Georgia to the northwest, Armenia to the west, and Iran to the south. The exclave of Nakhchivan is bounded by Armenia to the north and east, Iran to the south and west, while having a short borderline with Turkey to the northwest.

Azerbaijan has an ancient and historic cultural heritage. Aside from having been the first Muslim-majority country to have operas, theater and plays, Azerbaijan today is among the Muslim-majority countries where support for secularism and tolerance is the highest.^[6] The Azerbaijan Democratic Republic, the first democratic and secular republic in the Muslim world,^[7][8][9] was established in 1918, but was incorporated into the Soviet Union in 1920.^[10][11] Azerbaijan regained independence in 1991. Shortly thereafter, during the Nagorno-Karabakh War, neighboring Armenia occupied Nagorno-Karabakh, its surrounding territories and the enclaves of Karki, Yukhary Askipara, Barkhudarly and Sofulu. The Nagorno-Karabakh Republic, which emerged in Nagorno-Karabakh, continues to be not diplomatically recognized by any nation and the region is still considered a de jure part of Azerbaijan, despite being de facto independent since the end of the war.^{[12][13][14][15]} Azerbaijan has come under repeated international criticism for its record on human rights.

Azerbaijan is a secular and a unitary constitutional republic. It is one of the six independent Turkic states as well as an active member of the Turkic Council and the TÜRKSOY community. Azerbaijan has diplomatic relations with 158 countries and holds membership in 38 international organizations.^[16] It is one of the founding members of GUAM, the Commonwealth of Independent States (CIS)^[17] and Organization for the Prohibition of Chemical Weapons. On May 9, 2006, Azerbaijan was elected to membership in the newly established Human Rights Council by the United Nations General Assembly (the term of office began on June 19, 2006).^[18] A Special Envoy of the European Commission is present in the country, which is also a member of the United Nations, the OSCE, the Council of Europe, and the NATO Partnership for Peace (PfP) program. Azerbaijan is a correspondent at the International Telecommunication Union and member of the Non-Aligned Movement and holds observer status in World Trade Organization.^[16][19]

The Constitution of Azerbaijan does not declare an official religion but the majority of people adhere to the Shia branch of Islam, although Muslim identity tends to be based more on culture and ethnicity rather than religion and Azerbaijan remains as one of the most liberal majority-Muslim nations.^[20][21] After gaining its independence, Azerbaijan has reached a high level of human development,^[22] economic development^[23] and literacy,^[24] as well as a low rate of unemployment^[25] and intentional homicide^[26][27] compared to other Eastern European and CIS countries. On 1 January 2012, the country started a two-year term as a non-permanent member of the United Nations Security Council.^[28]

Etymology[link]

The name of Azerbaijan derives from that of Atropates,^[29][30] a Persian^[31][32][33] satrap under the Achaemenid Empire, who was later reinstated as the satrap of Media under Alexander the Great.^[34][35] The original etymology of this name is thought to have its roots in the once-dominant Zoroastrian religion. In the Avesta, Frawardin Yasht ("Hymn to the Guardian Angels"), there is a mention of âterepâtahe ashaonô fravashîm ýazamaide, which literally translates from Avestan as "we worship the Fravashi of the holy Atropatene".^[36]

Atropates ruled over the region of Atropatene (present-day Iranian Azerbaijan). The name "Atropates" itself is the Greek transliteration of an Old-Iranian, probably Median, compounded name with the meaning "Protected by the (Holy) Fire" or "The Land of the (Holy) Fire".^[37] The Greek name is mentioned by Diodorus Siculus and Strabo. Over the span of millennia the name evolved to Āturpātākān then to Ādharbādhagān, Ādharbāyagān, Āzarbāydjān and present-day Azerbaycan. The word is translatable as "The Treasury" and "The Treasurer" of fire or "The Land of the Fire"^[37] in Modern Persian.^[38]

History[link]

Antiquity[link]

Petroglyphs in Gobustan dating back to 10,000 BC indicating a thriving culture. It is a UNESCO World Heritage Site considered to be of "outstanding universal value"

The earliest evidence of human settlement in the territory of Azerbaijan dates to the late Stone Age and is related to the Guruchay culture of the Azykh Cave.^[39] The Upper Paleolithic and late Bronze Age cultures are attested in the caves of Tağılar, Damcılı, Zar, Yataq-yeri and in the necropolises of Leylatepe and Saraytepe.

Early settlements included the Scythians in the ninth century BC.^[37] Following the Scythians, Iranian Medes came to dominate the area to the south of the Aras.^[35] The Medes forged a vast empire between 900–700 BC, which was integrated into the Achaemenids Empire around 550 BC. The area was conquered by the Achaemenids leading to the spread of Zoroastrianism.^[40] Later it became part of Alexander the Great's Empire and its successor, the Seleucid Empire. Caucasian Albanians, the original inhabitants of the area, established an independent kingdom around the fourth century BC. During this period, Zoroastrianism spread in the Caucasus and Atropatene. Ancient Azerbaijanis spoke the Old Azari language.

Feudal era[link]

The Maiden Tower in Old Baku is a UNESCO World Heritage Site built in the 11th–12th century.

The Sassanids turned Caucasian Albania into a vassal state in AD 252, while King Urnayr officially adopted Christianity as the state religion in the fourth century. Despite numerous conquests by the Sassanids and Byzantines, Albania remained an entity in the region until the ninth century. The Islamic Umayyad Caliphate repulsed both the Sassanids and Byzantines from the region and turned Caucasian Albania into a vassal state after the Christian resistance, led by Prince Javanshir, was suppressed in 667. The power vacuum left by the decline of the Abbasid Caliphate was filled by numerous local dynasties such as the Sallarids, Sajids, Shaddadids, Rawadids and Buyids. At the beginning of the 11th century, the territory was gradually seized by waves of Turkic Oghuz tribes from Central Asia. The first of these Turkic dynasties established was the Ghaznavids, which entered the area now known as Azerbaijan by 1030.

The pre-Turkic Azerbaijani population spoke an Iranian language called the Old Azari language, which was gradually replaced by a Turkic language, now known as the Azerbaijani language from the 11th century onward until it became completely extinct in the 16th century.^[41] To distinguish it from the Turkic Azerbaijani or Azeri language, this Iranian language, is designated as the Azari language (or Old Azari language), because the Turkic language and people are also designated as "Azari" in the Persian language. However some linguists have also designated the Tati dialects of Iranian Azerbaijan and the Republic of Azerbaijan, like those spoken by the Tats, as a remnant of Azari.^[42][43] Locally, the possessions of the subsequent Seljuq Empire were ruled by atabegs, who were technically vassals of the Seljuq sultans, being sometimes de facto rulers themselves. Under the Seljuq Turks, local poets such as Nizami Ganjavi and Khagani Shirvani gave rise to a blossoming of Persian literature on the territory of present-day Azerbaijan. The next ruling state of the Jalayirids was short-lived and fell under the conquests of Timur.

The local dynasty of Shirvanshahs became a vassal state of Timur's Empire and assisted him in his war with the ruler of the Golden Horde Tokhtamysh. Following Timur's death two independent and rival states emerged: Kara Koyunlu and Ak Koyunlu. The Shirvanshahs returned, maintaining a high degree of autonomy as local rulers and vassals from 861 until 1539. During their persecution by the Safavids, the last dynasty imposed Shia Islam upon the formerly Sunni population,^[44][45][46] as it was battling against the Sunni Ottoman Empire.^[47]

Modern era[link]

Territories of Northern and Southern Khanates (and Sultanates) of Azerbaijan in Iran in 18th–19th centuries.^[48]

After the Safavids, the area was ruled by the Iranian dynasties of Afshar and Zand and briefly by the Qajars. However de facto self-ruling khanates^{[49][50][51][52][53]} emerged in the area, especially following the collapse of the Zand dynasty and in the early Qajar era. The brief and successful Russian campaign of 1812 was concluded with the Treaty of Gulistan, in which the shah's claims to some of the Khanates of the Caucasus were dismissed by Russia on the ground that they had been de facto independent long before their Russian occupation.^[54]

The khanates exercised control over their affairs via international trade routes between Central Asia and the West.^[55] Engaged in constant warfare, these khanates were eventually incorporated into the Russian Empire in 1813, following the two Russo-Persian Wars. The area to the North of the river Arax, among which the territory of the contemporary republic of Azerbaijan were Iranian territory until they were occupied by Russia.^{[10][56][57][58][59][60]} Under the Treaty of Turkmenchay, Persia recognized Russian sovereignty over the Erivan Khanate, the Nakhchivan Khanate and the remainder of the Lankaran Khanate.

In 2007, during the construction of a stadium, constructors discovered the Guba mass grave. Studies by Azerbaijani and foreign scientists have confirmed the human remains found there to be of local residents of various nationalities, including Jews and Lezgians who were killed in the 1918 massacre carried out by Armenians.^[61] To date, the remains of 600 people have been found, including about 50 children and 100 women.^[62]

Map of Azerbaijan issued at Paris Peace Conference in 1919.

After the collapse of the Russian Empire during World War I, Azerbaijan, together with Armenia and Georgia became part of the short-lived Transcaucasian Democratic Federative Republic. When the republic dissolved in May 1918, Azerbaijan declared independence as the Azerbaijan Democratic Republic (ADR). The ADR was the first modern parliamentary republic in the Muslim World.^[8][10][63] Among the important accomplishments of the Parliament was the extension of suffrage to women, making Azerbaijan the first Muslim nation to grant women equal political rights with men.^[8] In this accomplishment, Azerbaijan also preceded the United Kingdom and the United States. Another important accomplishment of ADR was the establishment of Baku State University, which was the first modern-type university founded in Muslim East.^[8]

By March 1920, it was obvious that Soviet Russia would attack the much-needed Baku. Vladimir Lenin said that the invasion was justified as Soviet Russia could not survive without Baku's oil.^[64][65] Independent Azerbajian lasted only 23 months until the Bolshevik 11th Soviet Red Army invaded it, establishing the Azerbaijan SSR on April 28, 1920. Although the bulk of the newly formed Azerbaijani army was engaged in putting down an Armenian revolt that had just broken out in Karabakh, Azeris did not surrender their brief independence of 1918–20 quickly or easily. As many as 20,000 Azerbaijani soldiers died resisting what was effectively a Russian reconquest.^[66]

On October 13, 1921, the Soviet republics of Russia, Armenia, Azerbaijan, and Georgia signed an agreement with Turkey known as the Treaty of Kars. The previously independent Naxicivan SSR would also become autonomous ASSR within Azerbaijan Soviet Socialist Republic by the treaty of Kars. On the other hand, Armenia was awarded the region of Zangezur and Turkey agreed to return Gyumri (then known as Alexandropol).

During World War II, Azerbaijan played a crucial role in the strategic energy policy of Soviet Union, with most of the Soviet Union's oil on the Eastern Front being supplied by Baku. By the Decree of the Supreme Soviet of the USSR in February 1942, the commitment of more than 500 workers and employees of the oil industry of Azerbaijan was awarded orders and medals. Operation Edelweiss carried out by the German Wehrmacht targeted Baku because of its importance as the energy (petroleum) dynamo of the USSR.^[10] A fifth of all Azerbaijanis fought in the Second World War from 1941 to 1945. Approximately 681,000 people with over 100,000 of them women went to the front, while the total population of Azerbaijan was 3.4 million at the time.^[67] Some 250,000 people from Azerbaijan were killed on the front. More than 130 Azerbaijanis were named Heroes of the Soviet Union. Azerbaijani Major-General Azi Aslanov was twice awarded the Hero of the Soviet Union.^[68]

Republic era[link]

Following the politics of glasnost, initiated by Mikhail Gorbachev, civil unrest and ethnic strife grew in various regions of the Soviet Union, including Nagorno-Karabakh,^[69] a region of the Azerbaijan SSR. The disturbances in Azerbaijan, in response to Moscow's indifference to already heated conflict, resulted in calls for independence and secession, which culminated in Black January in Baku.^[70] Later in 1990, the Supreme Council of the Azerbaijan SSR dropped the words "Soviet Socialist" from the title, adopted the Declaration of Sovereignty of the Azerbaijan Republic and restored flag of the Azerbaijan Democratic Republic as a state flag.^[71] On 18 October 1991, the Supreme Council of Azerbaijan adopted a Declaration of Independence which was affirmed by a nationwide referendum in December 1991, when the Soviet Union was officially dissolved.^[71]

The early years of independence were overshadowed by the Nagorno-Karabakh War with neighboring Armenia. By the end of hostilities in 1994, Armenians controlled up to 16 percent of Azerbaijani territory, including Nagorno-Karabakh itself.^[72][73] An estimated 30,000 people had been killed and more than a million had been displaced.^[74] Four United Nations Security Council Resolutions (822, 853, 874, and 884) demands for "the immediate withdrawal of all Armenian forces from all occupied territories of Azerbaijan."^[75] Many Russians and Armenians left Azerbaijan during the 1990s.^[76] According to the 1970 census, there were 510,000 ethnic Russians and 484,000 Armenians in Azerbaijan.^[77]

In 1993, democratically elected president Abulfaz Elchibey was overthrown by a military insurrection led by Colonel Surat Huseynov, which resulted in the rise to power of the former leader of Soviet Azerbaijan, Heydar Aliyev.^[78] In 1994, Surat Huseynov, by that time a prime minister, attempted another military coup against Heydar Aliyev, but Huseynov was arrested and charged with treason.^[79] In 1995, another coup attempt against Aliyev, by the commander of the OMON special unit, Rovshan Javadov, was averted, resulting in the killing of the latter and disbanding of Azerbaijan's OMON units.^[80][81] During his presidency, Aliyev managed to reduce the country's unemployment, rein in criminal groups, establish the fundamental institutions of independent statehood, and brought stability, peace and major foreign investment. At the same time, the country was tainted by rampant corruption in the governing bureaucracy.^[82] In October 1998, Aliyev was reelected for a second term. Despite the much improved economy, particularly with the exploitations of Azeri-Chirag-Guneshli oil field and Shah Deniz gas field, Aliyev's presidency was criticized due to suspected vote fraud and corruption.^[83]

Geography[link]

Azerbaijan is in the South Caucasus region of Eurasia, straddling Western Asia and Eastern Europe. It lies between latitudes 38° and 42° N, and longitudes 44° and 51° E. The total length of Azerbaijan's land borders is 2,648 km (1,645 mi), of which 1007 kilometers are with Armenia, 756 kilometers with Iran, 480 kilometers with Georgia, 390 kilometers with Russia and 15 kilometers with Turkey.^[84] The coastline stretches for 800 km (497 mi), and the length of the widest area of the Azerbaijani section of the Caspian Sea is 456 km (283 mi).^[84] The territory of Azerbaijan extends 400 km (249 mi) from north to south, and 500 km (311 mi) from west to east.

Three physical features dominate Azerbaijan: the Caspian Sea, whose shoreline forms a natural boundary to the east; the Greater Caucasus mountain range to the north; and the extensive flatlands at the country's center. There are also three mountain ranges, the Greater and Lesser Caucasus, and the Talysh Mountains, together covering approximately 40 percent of the country.^[85] The highest peak of Azerbaijan is mount Bazardüzü (4,466 m), while the lowest point lies in the Caspian Sea (−28 m). Nearly half of all the mud volcanoes on Earth are concentrated in Azerbaijan, which is also among nominees for New7Wonders of Nature.^[86]

The main water sources are the surface waters. However, only 24 of the 8,350 rivers are greater than 100 km (62 mi) in length.^[85] All the rivers drain into the Caspian Sea in the east of the country.^[85] The largest lake is Sarysu (67 km²), and the longest river is Kur (1,515 km), which is transboundary. Azerbaijan's four main islands in the Caspian Sea have a combined area of over thirty square kilometer.

Since the independence of Azerbaijan in 1991, the Azerbaijani government has taken drastic measures to preserve the environment of Azerbaijan. But national protection of the environment started to truly improve after 2001 when the state budget increased due to new revenues provided by the Baku-Tbilisi-Ceyhan pipeline. Within four years protected areas doubled and now make up eight percent of the country's territory. Since 2001 the government has set up seven large reserves and almost doubled the sector of the budget earmarked for environmental protection.^[87]

Landscape[link]

Mount Bazarduzu, the highest peak of Azerbaijan, as seen from Mount Shahdagh.

The landscape of Khinalug valley.

Azerbaijan is home to a vast variety of landscapes. Over half of Azerbaijan's land mass consists of mountain ridges, crests, yailas, and plateaus which rise up to hypsometric levels of 400–1000 meters (including the Middle and Lower lowlands), in some places (Talis, Jeyranchol-Ajinohur and Langabiz-Alat foreranges) up to 100–120 meters, and others from 0–50 meters and up (Qobustan, Absheron). The rest of Azerbaijan's terrain consist of plains and lowlands. Hypsometric marks within the Caucasus region vary from about −28 meters at the Caspian Sea shoreline up to 4,466 meters (Bazardüzü peak).^[88]

The formation of climate in Azerbaijan is influenced particularly by cold arctic air masses of Scandinavian anticyclone, temperate of Siberian anticyclone, and Central Asian anticyclone.^[89] Azerbaijan's diverse landscape affects the ways air masses enter the country.^[89] The Greater Caucasus protects the country from direct influences of cold air masses coming from the north. That leads to the formation of subtropical climate on most foothills and plains of the country. Meanwhile, plains and foothills are characterized by high solar radiation rates.

9 out of 11 existing climate zones are present in Azerbaijan.^[90] Both the absolute minimum temperature ( −33 °C/−27.4 °F ) and the absolute maximum temperature ( 46 °C/114.8 °F ) were observed in Julfa and Ordubad.^[90] The maximum annual precipitation falls in Lankaran (1,600 to 1,800 mm) and the minimum in Absheron (200 to 350 mm).^[90]

Rivers and lakes form the principal part of the water systems of Azerbaijan, they were formed over a long geological timeframe and changed significantly throughout that period. This is particularly evidenced by remnants of ancient rivers found throughout the country. The country's water systems are continually changing under the influence of natural forces and human introduced industrial activities. Artificial rivers (canals) and ponds are a part of Azerbaijan's water systems. From the water supply point, Azerbaijan is below the average in the world with approximately 100,000 m³/year of water per km².^[90] All big water reservoirs are built on Kur. The hydrography of Azerbaijan basically belongs to the Caspian Sea basin.

There are 8,350 rivers of various lengths within Azerbaijan. Only 24 rivers are over 100 kilometers long.^[91] The Kura and Aras are the most popular rivers in Azerbaijan, they run through the Kura-Aras Lowland. The rivers that directly flow into the Caspian Sea, originate mainly from the north-eastern slope of the Major Caucasus and Talysh Mountains and run along the Samur-Devechi and Lenkeran lowlands.

Biodiversity[link]

Mountainous countryside of Quba.

The first reports on the richness and diversity of animal life in Azerbaijan can be found in travel notes of Eastern travelers. Animal carvings on architectural monuments, ancient rocks and stones survived up to the present times. The first information on the animal kingdom of Azerbaijan was collected during the visits of naturalists to Azerbaijan in 17th century.^[85] Unlike fauna, the concept of animal kingdom covers not only the types of animals, but also the number of individual species.

There are 106 species of mammals, 97 species of fish, 363 species of birds, 10 species of amphibians and 52 species of reptiles which have been recorded and classified in Azerbaijan.^[85] The national animal of Azerbaijan is the Karabakh horse, a mountain-steppe racing and riding horse endemic to Azerbaijan. The Karabakh horse has a reputation for its good temper, speed, elegance and intelligence. It is one of the oldest breeds, with ancestry dating to the ancient world. However today the horse is an endangered species.^[92]

Azerbaijan's flora consists of more than 4,500 species of higher plants. Due the unique climate in Azerbaijan, the flora is much richer in the number of species than the flora of the other republics of the South Caucasus.^[93] About 67 percent of the species growing in the whole Caucasus can be found in Azerbaijan.

Politics[link]

President of Azerbaijan Ilham Aliyev with Russian President Dmitry Medvedev during the CIS summit in Strelna, 2008.

The structural formation of Azerbaijan's political system was completed by the adoption of the new Constitution on 12 November 1995. According to the Article 23 of Constitution, the state symbols of the Azerbaijan Republic are the flag, the coat of arms and the national anthem. The state power in Azerbaijan is limited only by law for internal issues, but for international affairs is additionally limited by the provisions of international agreements.

The government of Azerbaijan is based on the separation of powers among the legislative, executive and judicial branches. The legislative power is held by the unicameral National Assembly and the Supreme National Assembly in the Nakhchivan Autonomous Republic. Parliamentary elections are held every five years, on the first Sunday of November. The Yeni Azerbaijan Party, and independents loyal to the ruling government, currently hold almost all of the Parliament's 125 seats. During the 2010 Parliamentary election, the opposition parties, Musavat and Azerbaijani Popular Front Party, failed to win a single seat. European observers found numerous irregularities in the run up to the election and on election day.^[94]

The executive power is held by the President, who is elected for a 5-year term by direct elections. The president is authorized to form the Cabinet, an inferior executive body, subordinated to him. The Cabinet of Azerbaijan consists primarily of the Prime Minister, his Deputies and Ministers. The president does not have the right to dissolve the National Assembly, but he has the right to veto its decisions. To override the presidential veto, the parliament must have a majority of 95 votes. The judicial power is vested in the Constitutional Court, Supreme Court and the Economic Court. The President nominates the judges in these courts.

The Security Council is the deliberative body under the president, and he organizes it according to the Constitution. It was established on 10 April 1997. The administrative department is not a part of the president's office but manages the financial, technical and pecuniary activities of both the president and his office.

Although Azerbaijan has held several elections since regaining its independence and it has many of the formal institutions of democracy, it remains classified as "not free" (on border with "partly free") in Freedom House's Freedom in the World 2009 survey.^[95]

Human Rights[link]

Main article: Human Rights in Azerbaijan

Azerbaijan has come under heavy criticism from international bodies such as Amnesty International and Human Rights Watch for its record on human rights: in particular the treatment of homosexuals and the media.

Foreign relations[link]

Minister of Foreign Affairs Elmar Mammadyarov and his spouse with the President of the United States Barack Obama and First Lady Michelle Obama.

The short-lived Azerbaijan Democratic Republic succeeded in establishing diplomatic relations with six countries, sending diplomatic representatives to Germany and Finland.^[96] The process of international recognition of Azerbaijan's independence from the collapsing Soviet Union lasted roughly one year. The most recent country to recognize Azerbaijan was Bahrain, on November 6, 1996.^[97] Full diplomatic relations, including mutual exchanges of missions, were first established with Turkey, Pakistan, the United States, Iran^[96] and Israel.^[98] Azerbaijan has placed a particular emphasis on its "Special Relationship" with Turkey.^[99][100]

Azerbaijan has diplomatic relations with 158 countries so far and holds membership in 38 international organizations.^[16] It holds observer status in the Non-Aligned Movement and World Trade Organization and is a correspondent at the International Telecommunication Union.^[16] On 9 May 2006 Azerbaijan was elected to membership in the newly established Human Rights Council by the United Nations General Assembly. The term of office began on 19 June 2006.^[18]

Foreign policy priorities of Azerbaijan include: first of all, the restoration of its territorial integrity; elimination of the consequences of the loss of Nagorno-Karabakh and seven other regions of Azerbaijan;^[101][102] integration into European and Euro-Atlantic structure; contribution to international security; cooperation with international organizations; regional cooperation and bilateral relations; strengthening of defense capability; promotion of security by domestic policy means; strengthening of democracy; preservation of the ethnic and religious tolerance; scientific, educational and cultural policy and preservation of moral values; economic and social development; enhancing internal and border security; migration, energy and transportation security policy.^[101]

The Azerbaijani Government, in late 2007, stated that the long-standing dispute over the Armenian-occupied territory of Nagorno-Karabakh is almost certain to spark a new war if it remains unresolved.^[101] The Government is in the process of increasing its military budget. Furthermore, economic sanctions by Turkey to the west and by Azerbaijan itself to the east have combined to greatly erode Armenia's economy, leading to steep increases in prices for basic commodities and a great decline in the Armenian state revenues.^[103]

Azerbaijan is an active member of international coalitions fighting international terrorism. The country is contributing to peacekeeping efforts in Kosovo, Afghanistan and Iraq. Azerbaijan is an active member of NATO's Partnership for Peace program. It also maintains good relations with the European Union and could potentially one day apply for membership.^[101]

Administrative divisions[link]

Azerbaijan is divided into 10 economic regions; 66 rayons (rayonlar, singular rayon) and 77 cities (şəhərlər, singular şəhər) of which 11 are under the direct authority of the republic.^[104] Moreover, Azerbaijan includes the Autonomous Republic (muxtar respublika) of Nakhchivan.^[72] The President of Azerbaijan appoints the governors of these units, while the government of Nakhchivan is elected and approved by the parliament of Nakhchivan Autonomous Republic.

Absheron Absheron (Abşeron) Baku (Bakı) Khizi (Xızı) Sumqayit (Sumqayıt) Aran Aghjabadi (Ağcabədi) Aghdash (Ağdaş) Barda (Bərdə) Beylagan (Beyləqan) Bilasuvar (Biləsuvar) Goychay (Göyçay) Hajigabul (Hacıqabul) Imishli (İmişli) Kurdamir (Kürdəmir) Mingachevir (Mingəçevir) Neftchala (Neftçala) Saatly (Saatlı) Sabirabad (Sabirabad) Salyan (Salyan) Shirvan (Şirvan) Ujar (Ucar) Yevlakh (Yevlax) Yevlakh (Yevlax) Zardab (Zərdab) Daghlig Shirvan Aghsu (Ağsu) Gobustan (Qobustan) Ismailly (İsmayıllı) Shamakhy (Şamaxı)

Ganja-Gazakh Aghstafa (Ağstafa) Dashkasan (Daşkəsən) Gadabay (Gədəbəy) Ganja (Gəncə) Gazakh (Qazax) Goygol (Göygöl) Goranboy (Goranboy) Naftalan (Naftalan) Samukh (Samux) Shamkir (Şəmkir) Tovuz (Tovuz) Guba-Khachmaz Guba (Quba) Gusar (Qusar) Khachmaz (Xaçmaz) Shabran (Şabran) Siyazan (Siyəzən) Kalbajar-Lachin Gubadly (Qubadlı) Kalbajar (Kəlbəcər) Lachin (Laçın) Zangilan (Zəngilan) Lankaran Astara (Astara) Jalilabad (Cəlilabad) Lankaran (Lənkəran) Lankaran (Lənkəran) Lerik (Lerik)

Masally (Masallı) Yardimly (Yardımlı) Nakhchivan Babek (Babək) Julfa (Culfa) Kangarli (Kəngərli) Nakhchivan (Naxçıvan) Ordubad (Ordubad) Sadarak (Sədərək) Shahbuz (Şahbuz) Sharur (Şərur) Shaki-Zaqatala Balakan (Balakən) Gabala (Qəbələ) Gakh (Qax) Oghuz (Oğuz) Shaki (Şəki) Shaki (Şəki) Zaqatala (Zaqatala) Yukhari Garabakh Aghdam (Ağdam) Fuzuli (Füzuli) Jabrayil (Cəbrayıl) Khankendi (Xankəndi) Khojaly (Xocalı) Khojavend (Xocavənd) Shusha (Şuşa) Shusha (Şuşa) Tartar (Tərtər)

Azerbaijan is divided into 10 economic regions

Note: The cities under the direct authority of the republic in italics.

Military[link]

641st Special Warfare Naval Unit during military exercises.

The history of the modern Azerbaijan army dates back to Azerbaijan Democratic Republic in 1918, when the National Army of the newly formed Azerbaijan Democratic Republic was created on June 26, 1918.^[105][106] When Azerbaijan gained independence after the dissolution of the Soviet Union, the Armed Forces of the Republic of Azerbaijan were created according to the Law on the Armed Forces of October 9, 1991.^[107] The original date of the establishment of the short-lived National Army is celebrated as Army Day (26 June) in today's Azerbaijan.^[108] As of 2002, Azerbaijan had 95,000 active personnel in its armed forces. There are also 17,000 paramilitary troops.^[109] The armed forces have three branches: the Land Forces, the Air Forces and the Navy. Additionally the armed forces embrace several military sub-groups that can be involved in state defense when needed. These are the Internal Troops of the Ministry of Internal Affairs and the State Border Service, which includes the Coast Guard as well.^[72] The Azerbaijan National Guard is a further paramilitary force. It operates as a semi-independent entity of the Special State Protection Service, an agency subordinate to the President.^[110]

Azerbaijan adheres to the Treaty on Conventional Armed Forces in Europe and has signed all major international arms and weapons treaties. Azerbaijan closely cooperates with NATO in programs such as Partnership for Peace and Individual Partnership Action Plan. Azerbaijan has deployed 151 of its Peacekeeping Forces in Iraq and another 184 in Afghanistan.^[111]

The military expenditures of Azerbaijan for 2011 are set at $4,46 billion USD.^[112] Azerbaijani defense industry manufactures small arms, artillery systems, tanks, armors and noctovision devices, aviation bombs, pilotless vehicles, various military vehicles and military planes and helicopters.^{[113][114][115][116]}

Economy[link]

Azneft Square in downtown Baku, named after historical Azneft (AzOil) trust.

After gaining independence in 1991, Azerbaijan became a member of the International Monetary Fund, the World Bank, the European Bank for Reconstruction and Development, the Islamic Development Bank and the Asian Development Bank.^[117] The banking system of Azerbaijan consists of the Central Bank of Azerbaijan, commercial banks and non-banking credit organizations. The National (now Central) Bank was created in 1992 based on the Azerbaijan State Savings Bank, an affiliate of the former State Savings Bank of the USSR. The Central Bank serves as Azerbaijan's central bank, empowered to issue the national currency, the Azerbaijani manat, and to supervise all commercial banks. Two major commercial banks are the state-owned International Bank of Azerbaijan and the UniBank.

Pushed up by spending and demand growth, the 2007 Q1 inflation rate reached 16.6%.^[118] Nominal incomes and monthly wages climbed 29% and 25% respectively against this figure, but price increases in non-oil industry encouraged inflation in the country.^[118] Azerbaijan shows some signs of the so-called "Dutch disease" because of the fast growing energy sector, which causes inflation and makes non-energy exports more expensive.

In the early years of this century the chronically high inflation was brought under control and this led to the launch of a new currency, the new Azerbaijani manat, on January 1, 2006, to cement the acquisition of the economic reforms and erase the vestiges of an unstable economy.^[119][120]

In 2008, Azerbaijan was cited as one of the top 10 reformers by the World Bank's Doing Business Report.^[121]

Azerbaijan led the world as the top reformer in 2007/08, with improvements on seven out of 10 indicators of regulatory reform. Azerbaijan started operating a one-stop shop in January 2008 that halved the time, cost and number of procedures to start a business. Business registrations increased by 40% in the first six months. Azerbaijan also eliminated the minimum loan cutoff of $1,100, more than doubling the number of borrowers covered by the credit registry. Also, taxpayers can now file forms and pay their taxes online. Azerbaijan’s extensive reforms moved it far up the ranks, from 97 to 33 in the overall ease of doing business.

Azerbaijan is also ranked 57th in the Global Competitiveness Report for 2010–2011, which is above other CIS countries.^[122]

Energy[link]

A pumping unit for the mechanical extraction of oil on the outskirts of Baku.

Two thirds of Azerbaijan is rich in oil and natural gas.^[123] The region of the Lesser Caucasus accounts for most of the country's gold, silver, iron, copper, titanium, chromium, manganese, cobalt, molybdenum, complex ore and antimony.^[123] In September 1994, a 30-year contract was signed between the State Oil Company of Azerbaijan Republic (SOCAR) and 13 oil companies, among them Amoco, BP, ExxonMobil, Lukoil and Statoil.^[117] As Western oil companies are able to tap deepwater oilfields untouched by the Soviet exploitation, Azerbaijan is considered one of the most important spots in the world for oil exploration and development.^[124] Meanwhile the State Oil Fund of Azerbaijan was established as an extra-budgetary fund to ensure the macroeconomic stability, transparency in the management of oil revenue, and the safeguarding of resources for future generations.

Azeriqaz, a sub-company of SOCAR, intends to ensure full gasification of the country by 2021.^[125]

Banking[link]

The Central Bank building in downtown Baku.

The GDP growth rates observed in Azerbaijan during last years made the country one of the fastest growing economies in the world. But the banking sector of Azerbaijan has yet to tap the vast growth potential that should be achievable due to the continuation of the high economic growth.^[126] For this reason the banking sector remains small in relation to the size of the Azerbaijani economy. Although in the more advanced countries banking sectors made further visible progress in the catch-up process, the Azerbaijani banking market being in an earlier stage of development, also successes in pushing forward market-oriented reform and the privatization process.^[126]

Still the banking system is considered an important element of financial system of Azerbaijan. An advanced two-stepped banking system, which is based on market principles, (the Central Bank of the Republic of Azerbaijan in the first step, in the second one commercial banks and other non-bank credit organizations) functions in the republic.^[127]

Since 2002 important stage of restructuring of banking system started to be carried out. Taking into consideration entry of big oil revenues in the country, as a logical result of successful oil strategy, and in this base, as the banks were ready to an effective transfer of their financial resources to the strategic goals, development strategy was made for 2002–2005. Far-reaching reforms of the banking sector are conducted in the country. The main challenges are due to the slow privatization rate of the state banks, a weak financial market and a lack of bank transparency. However, the reforms have started showing positive resu lts and competition among the leading banks is increasing.^[127]

By April 1, 2010, 47 banks, 631 bank branches function in Azerbaijan. One of banks was founded with participation of state capital, 23 of foreign capital. To the same date, 98 non-bank credit organizations operate in the republic along with banks. Growth of real money incomes of population, development of trust in bank system, improving the legal bases of protection of interests of creditors and depositors, in particular launch of ‘Deposits Insurance Fund’ were the criteria characterizing rapid growth of deposits of population. As of April 1, 2010, bank deposits of population were equal to 2,4 billion AZN. 33,3% of them were long-term deposits (higher than a year). Along with population, bank deposits of corporative customers increase dynamically. By April 1, 2010, bank deposits of corporative customers is 2,1 bn AZN.^[127] Dynamic development of volume of special and involved funds of the banks has created effective conditions for enlargement of active operations. As of April 1, 2010, the volume of bank assets is 12 bn AZN. Crediting plays special role in structure of bank assets. As of April 1, 2010, bank credits to customers is 8.5 bn AZN, which makes 70.5% of bank assets. Special weight of private sector in structure of credit investments is higher than 82% (7 bn AZN).^[127]

Agriculture[link]

Azerbaijan has the largest agricultural basin in the region. About 54,9 percent of Azerbaijan is agricultural lands.^[84] At the beginning of 2007 there were 4,755,100 hectares of utilized agricultural area.^[128] In the same year the total wood resources counted 136 million m³.^[128] Azerbaijan's agricultural scientific research institutes are focused on meadows and pastures, horticulture and subtropical crops, green vegetables, viticulture and wine-making, cotton growing and medicinal plants.^[129] In some lands it is profitable to grow grain, potatoes, sugar beets, cotton and tobacco. Livestock, dairy products, and wine and spirits are also important farm products. The Caspian fishing industry is concentrated on the dwindling stocks of sturgeon and beluga. In 2002 the Azerbaijani merchant marine had 54 ships.^[130]

Some portions of most products that were previously imported from abroad have begun to be produced locally (among them are Coca Cola by Coca Cola Bottlers LTD, beer by Baki-Kastel, parquet by Nehir and oil pipes by EUPEC Pipe Coating Azerbaijan).^[131]

Tourism[link]

Tourism is an important part of the economy of Azerbaijan. The country was a well-known tourist spot in the 1980s, yet, after the fall of the Soviet Union and the Nagorno-Karabakh War during the 1990s, damaged the tourist industry and the image of Azerbaijan as a tourist destination.^[132]

It was not until 2000s that the tourism industry began to recover, and the country has since experienced a high rate of growth in the number of tourist visits and overnight stays.^[133] In the recent years, Azerbaijan has also becoming a popular destination for religious, spa, and health care tourism.^[134]

The Government of Azerbaijan has set the development of Azerbaijan as an elite tourist destination a top priority. It is a national strategy to make tourism a major, if not the single largest, contributor to the Azerbaijani economy.^[135] These activities are regulated by the Ministry of Culture and Tourism of Azerbaijan.

Transportation[link]

A vessel on the Caspian Sea.

The convenient location of Azerbaijan on the crossroad of major international traffic arteries, such as the Silk Road and the South-North corridor, highlights the strategic importance of transportation sector for the country’s economy.^[136] The transport sector in the country includes roads, railways, aviation, and maritime transport.

Azerbaijan is also an important economic hub in the transportation of raw materials. The Baku-Tbilisi-Ceyhan pipeline (BTC) became operational in May 2006 and extends more than 1,774 kilometers through the territories of Azerbaijan, Georgia and Turkey. The BTC is designed to transport up to 50 million tons of crude oil annually and carries oil from the Caspian Sea oilfields to global markets.^[137] The South Caucasus Pipeline, also stretching through the territory of Azerbaijan, Georgia and Turkey, became operational at the end of 2006 and offers additional gas supplies to the European market from the Shah Deniz gas field. Shah Deniz is expected to produce up to 296 billion cubic meters of natural gas per year.^[138] Azerbaijan also plays a major role in the EU-sponsored Silk Road Project.

In 2002, the Azerbaijani government established the Ministry of Transport with a broad range of policy and regulatory functions. In the same year, the country became a member of the Vienna Convention on Road Traffic.^[139] The highest priority being; upgrading the transport network and transforming transportation services into one of the key comparative advantages of the country, as this would be highly conducive to the development of other sectors of the economy.

In 2012, the construction of Kars–Tbilisi–Baku railway expected to provide transportation between Asia and Europe through connecting the railways of China and Kazakhstan in the east with Turkey's Marmaray to the European railway system in the west.^[140] Broad gauge railways in 2010 stretched for 2,918 km (1,813 mi) and electrified railways numbered 1,278 km (794 mi). By 2010, there were 35 airports and one heliport.^[72]

Science and technology[link]

In 2000s, the wave of a new oil and gas boom, helped to improve the situation in the Azerbaijan's science and technology sectors, and the government launched a campaign aimed into modernization and innovation. Government estimates say, in the future, profits from the information technology and communication industry will grow and become comparable with those from oil production.^[141]

The country has also been making progress in developing its telecoms sector. Nonetheless, it still faces problems. These include poor infrastructure and an immature telecom regulatory regime. The Ministry of Communications & Information Technologies (MCIT), as well as being an operator through its role in Aztelekom, is both a policy-maker and regulator. Public pay phones are available for local calls and require the purchase of a token from the telephone exchange or some shops and kiosks. Tokens allow a call of indefinite duration. As of 2009, there were 1,397,000 main telephone lines^[142] and 1,485,000 internet users.^[143] There are five GSM providers: Azercell, Bakcell, Azerfon (Nar Mobile), Aztrank, Catel mobile network operators and one CDMA.

In the 21st century a number of prominent Azerbaijani geodynamics and geotectonics scientists, inspired by the fundamental works of Elchin Khalilov and others, designed hundreds of earthquake prediction stations and earthquake-resistant buildings that now constitute the bulk of The Republican Center of Seismic Service.^{[144][145][146]}

The Azerbaijan National Aerospace Agency is planning to launch its first satellite AzerSat 1 into orbit in July or August 2012 from Guiana Space Centre in French Guiana at orbital positions 46° East.^{[147][148][149]} The satellite will cover Europe and significant part of Asian countries and Africa and will have transmission for TV, radio broadcasting and the internet.^[150] The launch of its own satellite on orbit will be Azerbaijan's first action in realizing prospective projects to turn itself into a country with a space industry.^[151][152]

Demographics[link]

An Azerbaijani girl in Khachmaz.

From the total population of 9,165,000 people as of July 2011, nearly 52% was urban population, the remaining 48% was the rural population.^[154] 51% of the total population were female.^[154] The sex ratio for total population in that year was therefore 0.97 males per female.^[72]

The 2011 population growth rate was 0.85%, compared to 1.09% worldwide.^[72] A significant factor restricting the population growth is rather a high level of migration. An estimated 3 million Azerbaijanis, many of them guest workers, live in Russia.^[155] In 2011 Azerbaijan saw migration of −1.14/1,000 persons.^[72] With 800,000 ethnic Azerbaijani refugees and IDPs, Azerbaijan has the largest internally displaced population in the region, and, as of 2006, had the highest per capita IDP population in the world.^[156]