OFFICIAL NAME:
Republic of Azerbaijan

Geography
Location:
South Caucasus; bordered by Russia to the north, the Caspian Sea to the
east, Iran to the south, and Georgia and Armenia to the west.
Area: 33,774 sq. mi. (includes Nakhchivan and Nagorno-Karabakh); slightly smaller than Maine.
Cities: Capital--Baku.
Terrain: Caucasus Mountains to the north, lowland in the central area through which the Kura River flows.
Climate: Dry, subtropical with hot summers and mild winters; forests, meadows, and alpine tundra in the mountains.

People (2000)
Nationality: Noun--Azerbaijani(s), Azeri. Adjective--Azerbaijani, Azeri.
Population (Dec. 2000 est.): 8,082,000.
Population growth rate: 0.27%.
Net migration rate: -5.92/1,000.
Ethnic groups (1998 est.): Azeri 90%, Dagestani Peoples 3.2%, Russian 2.5%, Armenians 2%, and other 2.3%.
Religion: Muslim 93.4% (majority Shi'a), Russian Orthodox 2.5%, Armenian Orthodox Church 2.3%, and other 1.8%.
Languages: Azerbaijani 89%, Russian 3%, Armenian 2%, and other 6%.
Education: Literacy--97%.
Health: Infant mortality rate--83.41/1,000 live births (2000 est.). Life expectancy--62.87 years.
Work force (3 million): Agriculture and forestry--42.3%; industry--6.9%; construction--4.2%; other--46.6%.

Government
Type: Republic.
Constitution: Approved in November 1995 referendum.
Independence: August 30, 1991 (from Soviet Union).
Branches: Executive--president (chief of state), prime minister (head of government), Council of Ministers (cabinet). Legislative--unicameral National Assembly (parliament). Judicial--Supreme Court.
Administrative subdivisions: 78 rayons, 11 cities, and 1 autonomous republic.
Political
parties: New Azerbaijan Party, Popular Front Party, Musavat Party,
National Independence Party, Civic Solidarity Party, Social Democratic
Party, Communist Party, Liberal Party, Azerbaijan Democratic
Independence Party, Islamic Party, plus 50 minor parties.
Suffrage: 18 years of age; universal.

Economy (2002)
GDP: $6.1 billion (Azerbaijan Government-reported).
GDP real growth rate: 9.8%.
Per capita GDP: $753 (Azerbaijan Government-reported).
Inflation rate: 2.5%.
Unemployment rate (est.): 15%-20%.
Natural resources: Petroleum, natural gas, iron ore, nonferrous metals, alumina.
Agriculture: Products--cotton, tobacco, grain, rice, grapes, fruit, vegetables, tea, cattle, pigs, sheep, goats.
Industry: Types--petroleum and natural gas, petroleum products, oilfield equipment, steel, iron ore, cement, chemicals, petrochemicals.
Trade: Exports--$2.17 billion: oil and gas, chemicals, oilfield equipment, textiles, cotton. Imports--$1.67 billion: machinery and parts, consumer durables, foodstuffs, textiles. Major trade partners--Italy, Russia, Turkey, Israel, U.S., Iran, other EU, and other countries formerly part of the Soviet Union.

HISTORICAL HIGHLIGHTS
Azerbaijan
combines the heritage of two venerable civilizations--the Seljuk Turks
of the 11th century and the ancient Persians. Its name is thought to be
derived from the Persian phrase "Land of Fire," referring both to its
petroleum deposits, known since ancient times, and to its status as a
former center of the Zoroastrian faith. The Azerbaijani Republic
borders the Iranian provinces of East and West Azerbaijan, although
they have not been united into a single state in modern times.

Little is known about
Azerbaijan's history until its conquest and conversion to Islam by the
Arabs in 642 AD. Centuries of prosperity as a province of the Muslim
caliphate followed. After the decline of the Arab Empire, Azerbaijan
was ravaged during the Mongol invasions but regained prosperity in the
13th-15th centuries under the Mongol II-Khans, the native Shirvan
Shahs, and under Persia's Safavid Dynasty.

Due to its location astride
the trade routes connecting Europe to Central Asia and the Near East
and on the shore of the Caspian Sea, Azerbaijan was fought over by
Russia, Persia, and the Ottomans for several centuries. Finally the
Russians split Azerbaijan's territory with Persia in 1828 by the Treaty
of Turkmenchay, establishing the present frontiers and extinguishing
the last native dynasties of local Azerbaijani khans. The beginning of
modern exploitation of the oil fields in the 1870s led to a period of
unprecedented prosperity and growth in the years before World War I.

At the collapse of the
Russian Empire in 1917, an independent republic was proclaimed in 1918
following an abortive attempt to establish a Transcaucasian Republic
with Armenia and Georgia. Azerbaijan received de facto recognition by
the Allies as an independent nation in January 1920, an independence
terminated by the arrival of the Red Army in April. Incorporated into
the Transcaucasian Federated Soviet Socialist Republic in 1922,
Azerbaijan became a union republic of the U.S.S.R. (Soviet Union) in
1936. The late 1980s were characterized by increasing unrest,
eventually leading to a violent confrontation when Soviet troops killed
190 nationalist demonstrators in Baku in January 1990. Azerbaijan
declared its independence from the U.S.S.R. on August 30, 1991.

GOVERNMENT AND POLITICAL CONDITIONS  
Although
the Government of Azerbaijan consists of three branches, Azerbaijan has
a strong presidential system in which the legislative and judicial
branches have only limited independence. The executive branch is made
up of a president, his apparat, a prime minister, and the cabinet of
ministers. The legislative branch consists of the 125-member parliament
(Milli Majlis). Members are elected for 5-year terms, with 100 of them
elected from territorial districts and 25 elected from party lists. The
judicial branch, headed by a Constitutional Court, is nominally
independent.

Azerbaijan declared its
independence from the former Soviet Union on August 30, 1991, with Ayaz
Mutalibov, former First Secretary of the Azerbaijani Communist Party,
becoming the country's first President. Following a March 1992 massacre
of Azerbaijanis at Khojali in Nagorno-Karabakh (a predominantly ethnic
Armenian region within Azerbaijan), Mutalibov resigned and the country
experienced a period of political instability. The old guard returned
Mutalibov to power in May 1992, but less than a week later his efforts
to suspend scheduled presidential elections and ban all political
activity prompted the opposition Popular Front Party (PFP) to organize
a resistance movement and take power. Among its reforms, the PFP
dissolved the predominantly Communist Supreme Soviet and transferred
its functions to the 50-member upper house of the legislature, the
National Council.

Elections in June 1992 resulted in the
selection of PFP leader Abulfez Elchibey as the country's second
President. The PFP-dominated government, however, proved incapable of
either credibly prosecuting the Nagorno-Karabakh conflict or managing
the economy, and many PFP officials came to be perceived as corrupt and
incompetent. Growing discontent culminated in June 1993 in an armed
insurrection in Ganja, Azerbaijan's second-largest city. As the rebels
advanced virtually unopposed on Baku, President Elchibey fled to his
native province of Nakhchivan. The National Council conferred
presidential powers upon its new Speaker, Heydar Aliyev, former First
Secretary of the Azerbaijani Communist Party (1969-81) and later a
member of the U.S.S.R. Politburo and U.S.S.R. Deputy Prime Minister
(until 1987). Elchibey was formally deposed by a national referendum in
August 1993, and Aliyev was elected to a 5-year term as President in
October with only token opposition. Aliyev won re-election to another
5-year term in 1998, in an election marred by serious irregularities.
Presidential elections took place on October 15, 2003. Ilham Aliyev was
elected to the presidency in an election that did not meet
international standards. He assumed office as President on October 31,
2003. Former President Heydar Aliyev died on December 12, 2003.

Azerbaijan's first
parliament was elected in 1995. The present 125-member unicameral
parliament was elected in November 2000 in an election that showed
improvements in democratic processes, but still did not meet
international standards as free and fair. A majority of
parliamentarians are from the current President's "New Azerbaijan
Party." Opposition parties are represented in parliament. According to
the constitution, the Speaker of parliament stands next in line to the
president. The current Speaker is Murtuz Aleskerov.

Principal Government Officials
President--Ilham Aliyev
Prime Minister--Artur Rasizade
Foreign Minister--Elmar Mammadyarov
Ambassador to the U.S--Hafiz Pashayev
Ambassador to the UN--Yashar Aliyev

Azerbaijan's embassy
in the United States is at 2741 34th Street NW, Washington, DC 20008;
tel (202) 337-3500; fax (202) 337-5911; Consular tel (202) 337-5912;
Consular fax (202) 337-5913; www.azembassy.com.

ECONOMY
Azerbaijan
is an economy in transition in which the state continues to play a
dominant role. It has important oil reserves and a significant
agronomic potential based on a wide variety of climatic zones. Since
1995, in cooperation with the International Monetary Fund (IMF),
Azerbaijan has pursued a highly successful economic stabilization
program, which has brought inflation down from 1,800% in 1994 to 2.5%
in 2002. Gross domestic product (GDP) in 2002 grew by 9.8%, the seventh
consecutive increase. The national currency, the manat, was stable
against the dollar in 2002. The budget deficit equaled a modest 0.4% of
GDP in 2002.

Progress on economic reform
has generally lagged behind macroeconomic stabilization. The government
has undertaken regulatory reforms in some areas, including substantial
opening of trade policy, but inefficient public administration in which
commercial and regulatory interests are co-mingled limit the impact of
these reforms. The government has largely completed privatization of
agricultural lands and small and medium-sized enterprises.

For more than a century the
backbone of the Azerbaijani economy has been petroleum. Now that
Western oil companies are able to tap deepwater oilfields untouched by
the Soviets because of poor technology, Azerbaijan is considered one of
the most important spots in the world for oil exploration and
development. Proven oil reserves in the Caspian Basin, which Azerbaijan
shares with Russia, Kazakhstan, and Turkmenistan, are comparable in
size to the North Sea, although exploration is still in the early
stages.

Azerbaijan has concluded 21
production-sharing agreements with various oil companies. Eastern
Caspian producers in Kazakhstan also have expressed interest in
accessing this pipeline to transport a portion of their production.
Partner sanctions of the Baku-Tbilisi-Ceyhan oil export pipeline was
completed in August 2002 and construction awards were announced.
Construction began in the second quarter of 2003, with completion
projected by the end of 2004. A Baku-Tbilisi-Erzurum gas export
pipeline was sanctioned in February 2003.

Environmental Issues
Azerbaijan
faces serious environmental challenges. Soil throughout the region was
contaminated by DDT and toxic defoliants used in cotton production
during the Soviet era. Caspian petroleum and petrochemicals industries
also have contributed to present air and water pollution problems.
Several environmental organizations exist in Azerbaijan, yet few funds
have been allocated to begin the necessary cleanup and prevention
programs. Over-fishing by poachers is threatening the survival of
Caspian sturgeon stocks, the source of most of the world's supply of
caviar. The Convention on International Trade in Endangered Species has
listed as threatened all sturgeon species, including all commercial
Caspian varieties.

DEFENSE AND MILITARY ISSUES
In
July 1992, Azerbaijan ratified the Treaty on Conventional Armed Forces
in Europe (CFE), which establishes comprehensive limits on key
categories of conventional military equipment and provides for the
destruction of weaponry in excess of those limits. Although Azerbaijan
did not provide all data required by the treaty on its conventional
forces at that time, it has accepted on-site inspections of forces on
its territory. Azerbaijan approved the CFE flank agreement in May 1997.
It also has acceded to the nuclear Non-Proliferation Treaty as a
non-nuclear weapons state. Azerbaijan participates in the North
Atlantic Treaty Organization's (NATO) Partnership for Peace.

FOREIGN RELATIONS
Azerbaijan
is a member of the United Nations, the Organization for Security and
Cooperation in Europe (OSCE), NATO's Partnership for Peace, the
Euro-Atlantic Partnership, the World Health Organization, CFE Treaty
member state, the European Bank for Reconstruction and Development, the
Council of Europe, the Community of Democracies, the International
Monetary Fund, and the World Bank.

Nagorno-Karabakh
The
major domestic issue affecting Azerbaijan is the dispute over
Nagorno-Karabakh, a predominantly ethnic Armenian region within
Azerbaijan. The current conflict over Nagorno-Karabakh began in 1988
when Armenian demonstrations against Azerbaijani rule broke out in both
Nagorno-Karabakh and Armenia, and the Nagorno-Karabakh Supreme Soviet
voted to secede from Azerbaijan. In 1990, after violent episodes in
Nagorno-Karabakh, Baku, and Sumgait, the Soviet Union's Government in
Moscow declared a state of emergency in Nagorno-Karabakh, sent troops
to the region, and forcibly occupied Baku. In April 1991, Azerbaijani
militia and Soviet forces targeted Armenian paramilitaries operating in
Nagorno-Karabakh; Moscow also deployed troops to Yerevan. Azerbaijan
declared its independence from the U.S.S.R. on August 30, 1991. In
September 1991, Moscow declared it would no longer support Azerbaijani
military action in Nagorno-Karabakh. Armenian militants then stepped up
the violence. In October 1991, a referendum in Nagorno-Karabakh
approved independence.

More than 30,000 people
were killed in the fighting from 1992 to 1994. In May 1992, Armenian
and Karabakhi forces seized Susha (the historical,
Azerbaijani-populated capital of Nagorno-Karabakh ) and Lachin (thereby
linking Nagorno-Karabakh to Armenia). By October 1993, Armenian and
Karabakhi forces had succeeded in occupying almost all of
Nagorno-Karabakh, Lachin, and large areas in southwestern Azerbaijan.
As Armenian and Karabakhi forces advanced, hundreds of thousands of
Azerbaijani refugees fled to other parts of Azerbaijan. In 1993, the UN
Security Council adopted resolutions calling for the cessation of
hostilities, unimpeded access for international humanitarian relief
efforts, and the eventual deployment of a peacekeeping force in the
region. The UN also called for immediate withdrawal of all ethnic
Armenian forces from the occupied territories of Azerbaijan. Fighting
continued, however, until May 1994 when Russia brokered a cease-fire.

Negotiations to resolve the
conflict peacefully have been ongoing since 1992 under the aegis of the
Minsk Group of the OSCE. The Minsk Group is currently co-chaired by
Russia, France, and the U.S. and has representation from Turkey, the
U.S., several European nations, Armenia, and Azerbaijan. Despite the
1994 cease-fire, sporadic violations, sniper fire, and landmine
incidents continue to claim over 100 lives each year.

Since 1997, the Minsk Group
Co-Chairs have presented three proposals to serve as a framework for
resolving the conflict. One side or the other rejected each of those
proposals. Beginning in 1999, the Presidents of Azerbaijan and Armenia
initiated a direct dialogue through a series of face-to-face meetings,
often facilitated by the Minsk Group Co-Chairs. Most recently, the OSCE
sponsored a round of negotiations between the Presidents in Key West,
Florida. U.S. Secretary of State Colin Powell launched the talks on
April 3, 2001, and the negotiations continued with mediation by the
U.S., Russia, and France until April 6, 2001. The Co-Chairs are
continuing to work with the two Presidents in the hope of finding a
lasting peace.

U.S.-AZERBAIJAN RELATIONS
The
dissolution of the Soviet Union in December 1991 brought an end to the
Cold War and created the opportunity to build relations with its
successor states as they began a political and economic transformation.
The United States opened an Embassy in Azerbaijan's capital, Baku, in
March 1992.

The United States has been
actively engaged in international efforts to find a peaceful solution
to the Nagorno-Karabakh conflict. The U.S. has played a leading role in
the Minsk Group, which was created in 1992 by the Conference on
Security and Cooperation in Europe--now the OSCE--to encourage a
peaceful, negotiated resolution to the conflict between Azerbaijan and
Armenia. In early 1997, the U.S. heightened its role by becoming a
Co-Chair, along with Russia and France, of the Minsk Group.

The U.S. supports American
investment in Azerbaijan. U.S. companies are involved in three offshore
oil development projects with Azerbaijan, and U.S. companies in other
fields such as telecommunications have been exploring the emerging
investment opportunities in Azerbaijan.

The United States is
committed to aiding Azerbaijan in its transition to democracy and
formation of an open market economy. The Freedom Support Act, enacted
in October 1992, has been the cornerstone of U.S. efforts to help
Azerbaijan during this transition. Under the Freedom Support Act, the
U.S. provided approximately $43.8 million in humanitarian and
developmental assistance to Azerbaijan in FY 2002.

The U.S. and Azerbaijan
have signed a bilateral trade agreement, and Azerbaijan has most
favored nation status. A Bilateral Investment Treaty also has been
signed.

U.S. Humanitarian Assistance
Since
1992, the United States has disbursed more than $140 million in
humanitarian assistance to the internally displaced people, refugee,
and war-affected populations of Azerbaijan. U.S. assistance is provided
principally through private voluntary organizations. The
primary private voluntary organizations now implementing and
coordinating U.S. Agency for International Development (USAID)-funded
assistance programs are Mercy Corps International, Adventist
Development and Relief Agency, International Rescue Committee, Save the
Children, and the Community Housing Foundation. Likewise, Shore Bank
LTD and the Foundation for International Community Assistance provide
small- and medium-scale loans to the internally displaced people,
refugee, and war-affected populations to increase their economic
viability. USAID; the U.S. Department of Agriculture (USDA); the State
Department's Bureau of Population, Refugees and Migration; and the
Office of the Coordinator for U.S. Assistance to Europe and Eurasia
provide funds directed toward increased humanitarian assistance.

[Also see fact sheet on FY 2004 U.S. Assistance to Azerbaijan.]

Principal U.S. Embassy Officials
Ambassador--Reno L. Harnish III
Deputy Chief of Mission--Jason Hyland
Political/Economic Chief--Caryn Mcclelland
Consular Officer--Tristram Perry
Management Officer--Robert Hensley
Public Affairs Officer--Theresa Markiw
AID Country Coordinator--James Goggin
Defense Attache--LTC Brendan McAlloon
Commercial Officer--vacant

The U.S. Embassy in Baku, Azerbaijan is at 83 Azadliq Prospect; tel: 994-12-98-03-35; fax: 994-12-65-66-71.

TRAVEL AND BUSINESS INFORMATION
The
U.S. Department of State's Consular Information Program provides
Consular Information Sheets, Travel Warnings, and Public Announcements.
Consular Information Sheets exist for all countries and include
information on entry requirements, currency regulations, health
conditions, areas of instability, crime and security, political
disturbances, and the addresses of the U.S. posts in the country. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country. Public Announcements
are issued as a means to disseminate information quickly about
terrorist threats and other relatively short-term conditions overseas
that pose significant risks to the security of American travelers. Free
copies of this information are available by calling the Bureau of
Consular Affairs at 202-647-5225 or via the fax-on-demand system:
202-647-3000. Consular Information Sheets and Travel Warnings also are
available on the Consular Affairs Internet home page: http://travel.state.gov.
Consular Affairs Tips for Travelers publication series, which contain
information on obtaining passports and planning a safe trip abroad, are
on the Internet and hard copies can be purchased from the
Superintendent of Documents, U.S. Government Printing Office,
telephone: 202-512-1800; fax 202-512-2250.

Emergency information concerning
Americans traveling abroad may be obtained from the Office of Overseas
Citizens Services at (202) 647-5225. For after-hours emergencies,
Sundays and holidays, call 202-647-4000.

The National Passport Information Center
(NPIC) is the U.S. Department of State's single, centralized public
contact center for U.S. passport information. Telephone: 1-877-4USA-PPT
(1-877-487-2778). Customer service representatives and operators for
TDD/TTY are available Monday-Friday, 8:00 a.m. to 8:00 p.m., Eastern
Time, excluding federal holidays.

Travelers can check the latest health
information with the U.S. Centers for Disease Control and Prevention in
Atlanta, Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web
site at http://www.cdc.gov/travel/index.htm
give the most recent health advisories, immunization recommendations or
requirements, and advice on food and drinking water safety for regions
and countries. A booklet entitled Health Information for International
Travel (HHS publication number CDC-95-8280) is available from the U.S.
Government Printing Office, Washington, DC 20402, tel. (202) 512-1800.

Information on travel conditions, visa
requirements, currency and customs regulations, legal holidays, and
other items of interest to travelers also may be obtained before your
departure from a country's embassy and/or consulates in the U.S. (for
this country, see "Principal Government Officials" listing in this
publication).

U.S. citizens who are long-term visitors or traveling in dangerous areas are encouraged to register their travel via the State Department’s travel registration web site at https://travelregistration.state.gov
or at the Consular section of the U.S. embassy upon arrival in a
country by filling out a short form and sending in a copy of their
passports. This may help family members contact you in case of an
emergency.


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