ABOUT AZERBAIJAN

Ateshgah

The Republic of Azerbaijan, about the size of the state of Maine, is a country of ancient history and vast natural resources located on the western Caspian Sea bordering Iran, Russia, Armenia, Georgia and Turkey. It regained its independence in 1991 at the dissolution of the Soviet Union. Shortly afterwards a violent conflict broke out between Azerbaijan and Armenia which to this day remains unresolved. Azerbaijan’s major export is oil yet thus far oil revenues have yet to fulfill the promise to bring wealth to the majority of the country’s nearly 8 million people. A full one third of the population lives below the poverty line. In 2005, the country ranked 101st out of 177 countries on the United Nation’s Human Development Index which measures life expectancy, educational attainment and adjusted real income and it ranked 137th out of 158 countries on Transparency International’s Corruption Perception Index.

Maiden Tower

Azerbaijan has a long history and the area itself has been inhabited for over 3000 y ears. Its strategic location on the Great Silk Route meant it endured conquests from Seljuk Turks, Persians, Arabs and Russians over the course of its history. Today, many of the country’s best-known exports are oil, natural gas, caviar and textiles. The first oil well was drilled in 1848 and in the 19th century the country was one of the world’s largest suppliers of oil.

Today, the country and specifically its capital Baku are enjoying an oil boom that has brought in substantial international investment. The recently completed BTC oil pipeline has begun bringing Caspian oil through Georgia and Turkey to western markets. There is heightened interest in bringing long term stability to the region and USAID activities first begun as humanitarian assistance in 1992, have expanded since 2002 into a robust development program centered on supporting the county’s transition to a market economy while creating the foundation for further development of democracy.

In 2007, fifteen years after gaining independence, Azerbaijan contin

Shirvanshah Palace

ues to operate under a highly centralized political system despite the constitutionally envisioned republican form of government “based on the principles of democracy” and “division of powers”. However, Azerbaijan's democracy is incrementally evolving and some progress has been made in creating more political space for citizen engagement. By expanding knowledge and awareness of democratic principles and developing the legal framework to support democratic processes and practices, USAID activities are critical in laying the foundation for true democracy to take hold. 

Momune Khatoun

As in most former soviet states, Azerbaijan’s transition to a free market economy faces many challenges as it tries to overcome the economic collapse following the end of the Soviet Union. With billions of foreign investment dollars spent on developing the oil and energy sector, and with increased oil revenues already flowing in, it is important that the government not squander the opportunity to ensure Azerbaijan does not follow in the path of other resource rich countries where corruption, lack of transparency and democracy, and poverty threaten lasting political and economic stability.

USAID activities have included nearly $284 million humanitarian and development assistance since 1992. Our objectives in Azerbaijan include supporting democratic change, promoting regional stability, and ultimately bringing the full benefits of economic and democratic reforms to the Azerbaijani people.