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Azerbaijan - a nation with a majority-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 Nagorno-Karabakh, a primarily Armenian-populated region, assigned to Soviet Azerbaijan in the 1920s by Moscow. Armenia and Azerbaijan began fighting over the area in 1988; the struggle escalated after both countries attained independence from the Soviet Union in 1991. By May 1994, when a cease-fire took hold, ethnic Armenian forces held not only Nagorno-Karabakh but also seven surrounding provinces in the territory of Azerbaijan. Corruption in the country is ubiquitous, and the government, which eliminated presidential term limits in a 2009 referendum, has been accused of authoritarianism. Although the poverty rate has been reduced in recent years due to revenue from oil production, the promise of widespread wealth resulting from the continued development of Azerbaijan's energy sector remains largely unfulfilled.
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
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
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
local scientists consider the Abseron Yasaqligi (Apsheron Peninsula) (including Baku and Sumqayit) and the Caspian Sea to be the ecologically most devastated area in the world because of severe air, soil, and water pollution; soil pollution results from oil spills, from the use of DDT pesticide, and from toxic defoliants used in the production of cotton
rayons:
Abseron Rayonu, Agcabadi Rayonu, Agdam Rayonu, Agdas Rayonu, Agstafa Rayonu, Agsu Rayonu, Astara Rayonu, Balakan Rayonu, Barda Rayonu, Beylaqan Rayonu, Bilasuvar Rayonu, Cabrayil Rayonu, Calilabad Rayonu, Daskasan Rayonu, Davaci Rayonu, Fuzuli Rayonu, Gadabay Rayonu, Goranboy Rayonu, Goycay Rayonu, Haciqabul Rayonu, Imisli Rayonu, Ismayilli Rayonu, Kalbacar Rayonu, Kurdamir Rayonu, Lacin Rayonu, Lankaran Rayonu, Lerik Rayonu, Masalli Rayonu, Neftcala Rayonu, Oguz Rayonu, Qabala Rayonu, Qax Rayonu, Qazax Rayonu, Qobustan Rayonu, Quba Rayonu, Qubadli Rayonu, Qusar Rayonu, Saatli Rayonu, Sabirabad Rayonu, Saki Rayonu, Salyan Rayonu, Samaxi Rayonu, Samkir Rayonu, Samux Rayonu, Siyazan Rayonu, Susa Rayonu, Tartar Rayonu, Tovuz Rayonu, Ucar Rayonu, Xacmaz Rayonu, Xanlar Rayonu, Xizi Rayonu, Xocali Rayonu, Xocavand Rayonu, Yardimli Rayonu, Yevlax Rayonu, Zangilan Rayonu, Zaqatala Rayonu, Zardab Rayonu
elections:
president elected by popular vote for a five-year term (eligible for unlimited terms); election last held on 15 October 2008 (next to be held in October 2013); prime minister and first deputy prime minister appointed by the president and confirmed by the National Assembly
election results:
Ilham ALIYEV reelected president; percent of vote - Ilham ALIYEV 89%, Igbal AGHAZADE 2.9%, five other candidates with smaller percentages
note:several political parties boycotted the election due to unfair conditions; OSCE observers concluded that the election did not meet international standards
unicameral National Assembly or Milli Mejlis (125 seats; members elected by popular vote to serve five-year terms)
elections:
last held on 6 November 2005 (next to be held in November 2010)
election results:
percent of vote by party - NA; seats by party - Yeni 58, Azadliq coalition 8, CSP 2, Motherland 2, other parties with single seats 9, independents 42, undetermined 4
Azadliq (Freedom) coalition (Azerbaijan Democratic Party, Azerbaijan Popular Front Party, Musavat Party); Azerbaijan Democratic Party or ADP [Sardar JALALOGLU]; Azerbaijan Popular Front or AXCP [Ali KARIMLI]; Civil Solidarity Party or CSP [Sabir RUSTAMKHANLI]; Civil Unity Party [Sabir HACIYEV]; Classic People's Front of Azerbaijan [Mirmahmud MIRALI-OGLU]; Democratic Reform Party [Asim MOLLAZADE]; Great Creation Party [Fazil Gazanfaroglu MUSTAFAYEV]; Hope (Umid) Party [Iqbal AGAZADE]; Liberal Party of Azerbaijan [Lala Shovkat HACIYEVA]; Motherland Party [Fazail AGAMALI]; Musavat (Equality) [Isa GAMBAR, chairman]; Open Society Party [Rasul GULIYEV, in exile in the US]; Social Democratic Party of Azerbaijan or SDP [Araz ALIZADE and Ayaz MUTALIBOV (in exile)]; Social Welfare Party [Hussein KAZIMLI]; Whole Azerbaijan Popular Front [Gudrat HASANGULIYEV]; Yeni (New) Azerbaijan Party [President Ilham ALIYEV]
note:opposition parties regularly factionalize and form new parties
three equal horizontal bands of blue (top), red, and green; a crescent and eight-pointed star in white are centered in the red band; the blue band recalls Azerbaijan's Turkic heritage, red stands for modernization and progress, and green refers to Islam; the crescent moon is an Islamic symbol, while the eight-pointed star represents the eight Turkic peoples of the world
Azerbaijan's high economic growth during 2006-08 was attributable to large and growing oil exports, but some non-export sectors also featured double-digit growth, spurred by growth in the construction, banking, and real estate sectors. In 2009, economic growth remained above 9% even as oil prices moderated and growth in the construction sector cooled. The current global economic slowdown presents some challenges for the Azerbaijani economy as oil prices remain below their mid-2008 highs, highlighting Azerbaijan's reliance on energy exports and lackluster attempts to diversify its economy. In 2009 the government continued to rely on financial transfers from the State Oil Fund to bridge its budget shortfalls. Azerbaijan's oil production has increased dramatically since 1997, when Azerbaijan signed the first production-sharing arrangement (PSA) with the Azerbaijan International Operating Company. Oil exports through the Baku-Tbilisi-Ceyhan Pipeline remain the main economic driver while efforts to boost Azerbaijan's gas production are underway. However, Azerbaijan has made only limited progress on instituting market-based economic reforms. Pervasive public and private sector corruption and structural economic inefficiencies remain a drag on long-term growth, particularly in non-energy sectors. Several other obstacles impede Azerbaijan's economic progress: the need for stepped up foreign investment in the non-energy sector and 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 oil and gas pipelines in the region, and Azerbaijan's ability to manage its energy wealth to promote sustainable growth in non-energy sectors of the economy and spur employment.
general assessment: inadequate; requires considerable expansion and modernization; fixed-line telephony and a broad range of other telecom services are controlled by a state-owned telecommunications monopoly and growth has been stagnant; more competition exists in the mobile-cellular market with four providers in 2009
domestic:
teledensity of 15 fixed lines per 100 persons is low; mobile-cellular teledensity has increased rapidly and is currently about 80 telephones per 100 persons; satellite service connects Baku to a modern switch in its exclave of Nakhchivan
international:
country code - 994; the Trans-Asia-Europe (TAE) fiber-optic link transits Azerbaijan providing international connectivity to neighboring countries; the old Soviet system of cable and microwave is still serviceable; satellite earth stations - 2 (2009)
men between 18 and 35 are liable for military service; 18 years of age for voluntary military service; length of military service is 18 months and 12 months for university graduates (2006)
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 and Nagorno-Karabakh; Azerbaijan seeks transit route through Armenia to connect to Naxcivan exclave; Organization for Security and Cooperation in Europe (OSCE) continues to mediate dispute; Azerbaijan, Kazakhstan, and Russia have ratified Caspian seabed delimitation treaties based on equidistance, while Iran continues to insist on an even one-fifth allocation and challenges Azerbaijan's hydrocarbon exploration in disputed waters; bilateral talks continue with Turkmenistan on dividing the seabed and contested oilfields in the middle of the Caspian; Azerbaijan and Georgia continue to discuss the alignment of their boundary at certain crossing areas
current situation: Azerbaijan is primarily a source and transit country for men, women, and children trafficked for the purposes of commercial sexual exploitation and forced labor; women and some children from Azerbaijan are trafficked to Turkey and the UAE for the purpose of sexual exploitation; men and boys are trafficked to Russia for the purpose of forced labor; Azerbaijan serves as a transit country for victims from Uzbekistan, Kyrgyzstan, Kazakhstan, and Moldova trafficked to Turkey and the UAE for sexual exploitation
tier rating:
Tier 2 Watch List - Azerbaijan is on the Tier 2 Watch List for its failure to provide evidence of increasing efforts to combat trafficking in persons, particularly efforts to investigate, prosecute, and punish traffickers; to address complicity among law enforcement personnel; and to adequately identify and protect victims in Azerbaijan; the government has yet to develop a much-needed mechanism to identify potential trafficking victims and refer them to safety and care; poor treatment of trafficking victims in courtrooms continues to be a problem (2008)
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
The online Factbook is updated bi-weekly. ISSN 1553-8133
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