Area: 86,600 sq km (x sq mi) Population: 8.5 million (2006) Capital City: Baku (population: 2.0 million) People: Predominantly Turkic Azeri, Russian (8%), Armenian (6% mostly fled as a result of the conflict in Nagorno Karabakh) Languages: Azeri 89%, Russian 3%, Armenian 2%, other 6% Religion(s): Muslim 93.4%, Russian Orthodox 2.5%, Armenian Orthodox 2.3%, other 1.8% Currency: Manat Major political parties: New Azerbaijan Party, Azerbaijan Democratic Party, Popular Front Party (Reformists), Musavat, Liberal Party and Azerbaijan National Independence Party. Government: Republic Head of State: President Ilham Aliev Prime Minister/Premier: Artur Rasizade Foreign Minister: Elmar Mamadyarov Membership of international groupings/organisations: BSEC, CCC, CE, CIS, EAPC, EBRD, ECE, ECO, ESCAP, FAO, IBRD, ICAO, ICRM, IDA, IDB, IFAD, IFC, IFRCS, ILO, IMF, IMO, Intelsat, Interpol, IOC, ISO (correspondent), ITU, NAM (observer), OIC, OPCW, OSCE, PFP, UN, UNCTAD, UNESCO, UNIDO, UPU, WFTU, WHO, WIPO, WMO, WTO (observer)
GEOGRAPHY
is the largest of the three South Caucasus states, bounded by , , , and the Caspian Sea. There is also a short border between and the NakhichevanAutonomousRepublic (pop. 295,000), which is separated from the bulk of by southern . Under Russo-Turkish treaty arrangements Nakhichevan's sovereignty cannot be transferred from . In 1917 40% of the population of Nakhichevan was Armenian; by 1989 the figure was 0.6 percent.
Location: South-western Asia, bordering the Caspian Sea, between Iran and Russia Geographic co-ordinates: 40 30 N, 47 30 E Area: total: 86,600 sq km land: 86,100 sq km water: 500 sq km note: includes the exclave of Nakhichevan Autonomous Republic and the Nagorno-Karabakh region; the region's autonomy was abolished by Azerbaijani Supreme Soviet on 26 November 1991 Land boundaries: total: 2,013 km border countries: Armenia (with Azerbaijan-proper) 566 km, Armenia (with Azerbaijan-Nakhichevan exclave) 221 km, Georgia 322 km, Iran (with Azerbaijan-proper) 432 km, Iran (with Azerbaijan-Nakhichevan 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, non-ferrous metals, alumina Land use: arable land: 18% permanent crops: 5% permanent pastures: 25% forests and woodland: 11% other: 41% (1993 est.) Irrigated land: 10,000 sq km (1993 est.) Natural hazards: droughts; some lowland areas threatened by rising levels of the Caspian Sea
HISTORY
Political Timeline
1918 – 1920 Azerbaijan declares independence from .
1922 Forms part of the , within the TranscaucasianSovietFederatedSocialistRepublic.
1936 Becomes a UnionRepublic in its own right
Sept 1988 becomes the first Soviet republic outside the Baltics to declare its national sovereignty.
Jan 1990 Ayaz Mutalibov is appointed First Secretary of the local Communist party
Sept 1991 Mutalibov wins presidential elections, unopposed with 80% of the vote
Oct 1991 Formal independence from the Soviet Union declared.
1992 Mutalibov and his (ex-Communist) Prime Minister, Hassanov are forced to resign following mass demonstrations over the ineffective Azeri response to Armenian military advances in Nagorno-Karabakh (N-K).
May 1992 Mutalibov tries, unsuccessfully, to seize back power. Popular protests prompted by the opposition Azerbaijani Popular Front (APF) force Mutalibov to flee to Moscow and Abulfaz Elchibey wins the presidential election with 64% of the vote.
Note
Elchibey's declared objectives were the building of a secular democratic system, very close links with Turkey, and an early victory in Nagorno-Karabakh. He transferred parliamentary powers from the ex-communist dominated Supreme Soviet to a 50-person Milli Majlis (Council), half of whose members were from the Popular Front. But, Elchibey failed to carry through his commitment to hold fresh parliamentary elections.
June 1993�Clashes between government troops and forces commanded by Colonel Surat Husseinov (a major industrialist and N-K hero) in Ganja ('s second city) leave over 50 people dead. Husseinov demands the resignation of those responsible and his men then march towards Baku.
In response, Elchibey invites his main rival for power, Heydar Aliev, (who became chairman of the Azerbaijani KGB in 1967, head of the Azerbaijani Communist Party in 1969, and was a long-standing Politburo member), to return to Baku as chairman of parliament. Elchibey flees to Nakhichevan and Aliev becomes acting President. Husseinov is appointed Prime Minister.
Oct 1993 Heydar Aliev gains 98.8% of the vote in the Presidential elections (according to official results). The team of observers (along with other Western observers) conclude that a genuine majority of voters support Heydar Aliev.
Sept 1994�Interior ministry troops, led by the deputy interior minister, Rovshan Javadov, rebel and attack the Chief Prosecutor's department. Heydar Aliev alleges Husseinov has orchestrated an uprising in Ganja. Aliev invokes a state of emergency in Baku and Ganja and calls for mass demonstrations of support. He sacks the Chief Prosecutor and Husseinov, who is believed to have fled to . A reconciliation takes place between Heydar Aliev and Javadov: Aliev retains control, and Javadov keeps his position.
March 1995�Simliar events, to those in September 1994, take place - the same interior ministry troops under the control of Javadov, rebel following a dispute with the local police and civilian authorities. The troops are ordered to surrender - Javadov retreats to his barracks on the outskirts of Baku.
17 Mar 1995 Government forces bring the rebellion to a violent end, killing Javadov. Aliev claims to have been the victim of several assassination attempts.
Feb 1996 20 former Interior Ministry troops and 25 others accused of involvement in the rebellions are convicted and sentenced to 10-15 years imprisonment.
Oct 1998�The main opposition parties boycott the presidential elections in protest at the composition of the Central Electoral Commission, which they see as biased in favour of Heydar Aliev. Aliev is declared winner with 76.11 % of the vote. His nearest rival, Etibar Mammedov, is a distant second with 11.60 %. The OSCE/Council of Europe conclude that the election process did not comply with international standards.
Nov 2000��Azerbajian holds parliamentary elections. International Observers note improvements in new electoral legislation, but the conduct of the election itself is seriously flawed. The turnout is hugely inflated and observers note widespread ballot stuffing. International observers from the OSCE and The Council of Europe strongly criticise the elections.
Jan 2001��In response to criticism, eleven seats are re-run. Many of the deficiencies observed in November are repeated, but International Observers acknowledge an improvement in standards.
24 Aug 2002�A constitutional referendum takes place, proposing 39 amendments to 24 articles of the constitution. An overwhelming majority of the alleged 88% of the electorate who participate endorsed the changes. However, there are numerous reports of irregularities in the voting process.� The OSCE Office in Baku expresses concern about the reliability of the official figures.
June 2003� Heydar Aliev suffers a deterioration in his health.
Oct 2003 After a short term as Prime Minister, his son Ilham becomes the New Azerbaijan Party’s candidate for the Presidential elections. According to official results, Ilham Aliev won after the first round of voting with 76.84% of the vote. His closest rival Isa Gambar (Musavat Party) came second with 13.97%.
16 Oct 2003 There are violent clashes between opposition supporters and the police in central Baku, which lead to at least one death. The election was observed by a large OSCE/ODIHR mission. The OSCE concluded that although the electoral process was an improvement on previous elections, it still fell short of international standards in a number of areas. The final OSCE report called on the Government of Azerbaijan to implement 26 recommendations covering the election administration, the legal framework and the media.
Dec 2003� Heydar Aliev dies.
Longer Historical Perspective
Recent Political Events
Heydar Aliev suffered deterioration in his health in June 2003. He did not recover from this condition and died in December 2003. After a short term as Prime Minister, his son Ilham became the New Azerbaijan Party’s candidate for the Presidential elections that took place in October 2003. Before these elections, opposition leaders had unsuccessfully attempted to unite behind a sole opposition candidate. According to official results, Ilham Aliev won after the first round of voting with 76.84% of the vote. His closest rival Isa Gambar (Musavat Party) came second with 13.97%. On 16 October 2003 there were violent clashes between opposition supporters and the police in central Baku, which led to at least one death. Afterwards there were widespread arrests and detentions.
The election was observed by a large OSCE/ODIHR mission. The OSCE concluded that although the electoral process was an improvement on previous elections, it still fell short of international standards in a number of areas. The final OSCE report called on the Government of Azerbaijan to implement 26 recommendations covering the election administration, the legal framework and the media.
Fresh parliamentary elections were held on 6 November 2005. The OSCE/ODIHR observation mission found some improvements from the 2003 elections, but on the whole judged that they did not meet democratic standards.
ECONOMY
GDP: US$ 19.9bn (2006) GDP Per capita: US$ 1,041 (2005) Annual Growth: 34.5% (2006), 41.7% 1st Quarter 2007 Net Assets of State Oil Fund 2003 US$ 817.6 (stood at US$ 835.5 at 31 August 2004. SourceState Oil Fund). Inflation: 8.3% (2006). 16.7% 1st Quarter 2007 Exchange Rate: 0.86 Manat (at15 May 2007)
Exports
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Imports
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31.1%
13.9%
CzechRepublic
14.5%
13.1%
9.4%
11.5%
Total Exports
$6,117bn (2005)
Total Imports
$4,656bn (2004)
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's economy had suffered large shocks from the disintegration of the former Soviet Union, which disrupted trade routes and markets, and the drain on resources caused by the N-K war effort. However buoyancy in the oil market has eased the pressure. 2006 showed record growth in the economy. Oil remains the country’s main export commodity. However, consumer price inflation rose sharply in the first quarter of 2007 and the currency is appreciating in real terms.
Growth is being fuelled by investment in Azerbaijani oil reserves. The State Oil Fund of Azerbaijan grew from US$692 million on 1 January 2003 to US$ 1,338 million by 1 February 2007. GDP grew by 32.5% in 2006, the highest growth rate of any country in the world. Inflation over the same period has continued to increase significantly and is currently running at 16.7%. Food and energy prices are running at a higher rate of inflation.
Approximately 47% (2004) of people are estimated to live below the poverty line. The Government of Azerbaijan adopted a Poverty Reduction and Development Plan in October 2002 and redesigned it in 2004 to take into account the UN’s Millenium Development Goals. The new Povety Reduction and Development Plan will run from 2006-2015. The programme focuses on poverty reduction, increased growth in the non-oil sector, reduction of corruption, continuing strong monitoring of monetary policy, governance measures such as reform of the Cabinet of Ministers and improving expenditure control.
Corruption is a serious problem.� In 2006, the Transparency International Corruption Perception Index ranked the 130 out of 163. However, the Government has recently signed a number of international agreements designed to tackle corruption and in January 2005 it established a Commission to fight corruption. A new national strategy on increasing transparency and combating corruption is due to be signed by President Aliev in late 2007.�
On 15 March 2005, became the first oil producing country in the world to publish EITI reports examined by an independent audit firm, and the first country to involve civil society in the implementation of the initiative. The reports represent a significant and public step forward in the implementation of the Initiative in and worldwide. The full text of the government reports and accompanying accountants’ reports are available on the website of the State Oil Fund of Azerbaijan www.oilfund.az and the British Government’s EITI website www.eitransparency.org. Further information and background on EITI is also available on this site.
Nagorno-Karabakh
Recent History
The present phase of the Nagorno-Karabakh (NK) conflict began in 1988 after the Regional Soviet of Nagorno-Karabakh adopted a resolution on the transfer of N-K to . The resolution was rejected by the and Soviet troops deployed to N-K to suppress nationalist sentiments. Following the break-up of the Soviet Union, N-K declared its independence. Azerbaijani forces then attempted to re-establish control but met fierce resistance. In 1992 N-K forces captured Shusha (a previously Azeri-populated town within N-K) and established a corridor to through Lachin. In 1993 N-K forces, with help from , retook northern N-K and occupied the entire south-west corner of , some 20% of Azerbaijani territory. This encroachment onto ’s territory led to wide-scale international condemnation, including four UN Security Council Resolutions demanding that 'local Armenian forces' withdraw from the most recently occupied areas outside N-K.
The 1994 spring offensive began in early April with each side accusing the other of renewed attacks and shelling of civilian targets. Fighting was intense along the entire front line, with both sides seeming better prepared militarily than in previous years. However, on 12 May 1994 a cease-fire was brokered in direct talks between and and on 27 July 1994 the Armenian and Azerbaijani Defence Ministers and the Commander of the Nagorno-Karabakh Army signed an agreement consolidating it. With the exception of minor violations the cease-fire has held. , and the authorities in Nagorno-Karabakh have all confirmed their readiness to continue it indefinitely until a political agreement is concluded. The number of deaths in the conflict probably exceeded 15,000 with at least 900,000 Azerbaijanis and 300,000 Armenians displaced.
The Issues
The issues in dispute include the future political status of NK and the nature of any international guarantees of that status. points to a 1991 referendum (ruled illegal by the Government of Azerbaijan) in which the people of NK voted for independence. The Armenian Parliament refuses to accept any solution to the conflict which refers to NK as part of , while has annulled NK's former autonomous status.
International Efforts
In 1992 the (then) CSCE established an international peace process, known as the Minsk Group, with the aim of undertaking negotiations with the parties to the conflict, to reach a peaceful political settlement. At its December 1994 Summit in Budapest the OSCE agreed to integrate the mediation efforts of the Russian Federation and the Minsk Group making Russia a co-chair of the Minsk Group (initially with Sweden, then with Finland, and now in a Troika with the US and France). The summit also agreed in principle to the deployment of a multi-national peacekeeping operation, following the conclusion of a political agreement on the cessation of the armed conflict, and establishing a High Level Planning Group (HLPG) to work on details of an operation. There is as yet no sign of the political agreement being reached although the Troika have presented confidential proposals to the parties for consideration. The Minsk Group now comprises , , , , , , , , , and . The is not a member.
2006 was heralded by a number of commentators as a “window of opportunity” to make some progress towards resolving the conflict. There were high level talks during the year with some encouraging signs. However, in 2007 and 2008 there are elections in both and which will distract the focus from NK negotiations. As a result of the conflict, the OSCE imposed an arms embargo on both and in 1992. The observes this embargo.
Position
The (and our European partners) has argued that any solution should be based on the sovereignty of with real autonomy for the people of NK. The international community does not recognise N-K independence. Our policy on the NK dispute is that we will support any mechanism for its resolution which both parties can accept and which has a realistic chance of delivering a lasting political settlement. Although the is not a member of the Minsk Group, it strongly supports the Group's work. Sir Brian Fall was appointed as the ’s Special Representative to the South Caucasus in 2003.
INTERNATIONAL RELATIONS
The majority of 's population is Shia Muslim. There are ethnic and cultural links with the large ethnic Azeri population of . 's system of government is secular, and the country has a westward-looking foreign policy.
sees , whose people and language are closely related, as its natural bridge to the west. shares a number of affinities with its large regional neighbour from which it draws considerable support. ’s stance on ’s dispute with over Nagorno-Karabakh is to maintain a closed border policy with until it makes concessions over Nagorno-Karabakh. On energy issues, the context of Caspian oil and gas pipeline routes linking via and through represents an important area of close co-operation which moved into another gear with the official opening of the Baku-Tblisi-Ceyhan pipeline.
Since gained independence in 1991, ties between Baku and Tehran have not been without their problems. 's relations with former President Heydar Aliev were closer than they were with Elchibey, based on links forged during Aliev's rule in Nakhichevan. But these became strained following 's exclusion by US companies from the Azerbaijan International Operating Company set up to exploit three Azeri oil fields in the Caspian. The admission of into the international consortium set up in 1996 to explore the Shah Deniz prospect in the Caspian may have helped to improve the relationship. In the past, Heydar Aliev accepted Iranian help in setting up large tented refugee camps in ( was fearful of a huge influx of Azerbaijani refugees, which might add to the sizeable ethnic Azerbaijani minority in northern ). joined the previously moribund Economic Co-operation Organisation in Tehran in February 1992 which sees as a forerunner to an Islamic Common Market. and signed an agreement in October 1996 for the construction of a gas pipeline from to Nakhichevan. President Khatami’s visit to Baku and Ganja in August 2004 and President Ilham Aliev’s own official visit to Tehran in January 2005 have helped to contribute to modest improvements. During the latter visit, agreed to find better cross-border transport links, including a bridge to ’s Nakhichevan enclave. However, a number of fundamental differences remain.
Former President Heydar Aliev sought to increase 's independence from , and declined to accept Russian bases or border guards. A new warming in ties between Baku and Moscow partly stemmed from visits to Baku by President Putin in 2001 and 2006. Good relations with are essential for a settlement to the N-K conflict. Bilateral agreements have been reached between , and Khazakhstan on delimitation of national territorial waters in the Caspian Sea. President Ilham Aliev has visited Moscow several times since October 2003, most recently in April 2007, and has expressed his wish for good bilateral relations on trade and international security.
International Organisations
Integration to the Euro-Atlantic political, security and economic institutes is one of ’s main foreign policy priorities. In May 1994 former President Heydar Aliev signed the NATO 'Partnership for Peace' (PfP) Framework Document at a formal meeting of the North Atlantic Council (NAC). In July 2004 presented its Individual Partnership Action Plan (IPAP) which forms the basis of ’s future co-operation with NATO.
, together with , has been a member of the Council of Europe since January 2001. Upon accession both and committed themselves to use only peaceful means to find a resolution over N-K. However, Defence spending in both countries, particularly , has increased significantly their accession.
A Partnership and Co-operation Agreement (PCA) between the EU and was signed in April 1996 and ratified by the in April 1998. The PCA governs political, economic and trade relations between the parties and lay the basis for social, financial, scientific, technological and cultural co-operation between them. The then Presidents of Georgia, Armenia and the Prime Minister of Azerbaijan met with EU Foreign Ministers in Luxembourg in June 1999 to mark the entry into force of the PCAs on 1 July 1999. The first co-operation council meeting between the EU and took place in October 1999.
The European Neighbourhood Policy (ENP) sets ambitious objectives for partnership with countries neighbouring the EU’s borders. These objectives are based on strong commitments to shared values and political, economic and institutional reforms. Partner countries are invited to enter into closer political, economic and cultural relations with the EU, to enhance cross border co-operation and to share responsibility in conflict prevention and resolution. The Union offers the prospect of a stake in its Internal Market and of further economic integration. The speed and intensity of this process will depend on the will and capability of each partner country to engage in this broad agenda. The policy builds upon the existing framework of co-operation.
In June 2004 the ENP was extended to . The European Commission completed a Country Report on in March 2005. This is the first step in developing ENP and is a detailed assessment of bilateral relations between the EU and . It also reflects progress under the Partnership and Co-operation Agreements (PCA) and describes the political, social and economic situation in . During 2006 the Commission, in close co-operation with the Presidency, Member States, and the High Representative for Common Foreign and Security Policy, held exploratory talks with Azerbaijan which resulted in agreement on an Action Plan, which was adopted on 14 November 2006 at the General Affairs and External Relations Council. The Plan covers a timeframe of five years. Its implementation will help fulfil the provisions in the Partnership and Cooperation Agreement. The Plan is a broad tool for economic and political co-operation, carrying to a further stage the commitments and objectives contained in the Partnership and Cooperation Agreement.
