Background: Azerbaijan continues to be plagued by an unresolved eight-year-old conflict with Armenian separatists over its Nagorno-Karabakh region. The Karabakh Armenians have declared independence and seized almost 20% of the country's territory, creating almost 1 million Azeri refugees in the process. Both sides have generally observed a Russian-mediated cease-fire in place since May 1994, and support the OSCE-mediated peace process, now entering its fifth year. Nevertheless, Baku and Xankandi (Stepanakert, Nagorno-Karabakh region) remain far apart on most substantive issues from the placement and composition of a peacekeeping force to the enclave's ultimate political status, and prospects for a negotiated settlement remain dim.

Area
Total: 86,600 km²
Land: 86,100 km²
Comparative: slightly larger than Maine
Comparative 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

Land boundaries: Total 2,013 km, Armenia (west) 566 km, Armenia (southwest) 221 km, Georgia 322 km, Iran (south) 432 km, Iran (southwest) 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 Lowland (much of it below sea level) with Great Caucasus Mountains to the north, Qarabag (Karabakh) Upland in west; Baku lies on Abseron (Apsheron) Peninsula that juts into Caspian Sea

Elevation
Extremes lowest point: Caspian Sea -28 m
Extremes highest point: Bazarduzu Dagi 4,485 m

Natural resources:

Land use
Arable land: 18%
Permanent crops: 4%
Permanent pastures: 25%
Forests and woodland: 0%
Other: 53%

Irrigated land: 14,010 km² (1990)

Population:
Growth rate:

Nationality
Noun: Azerbaijani(s)
Adjective: Azerbaijani

Ethnic groups:
Note: Almost all Armenians live in the separatist Nagorno-Karabakh region

Languages: Azeri 89%, Russian 3%, Armenian 2%, other 6% (1995 est.)

Religions:
Note: Religious affiliation is still nominal in Azerbaijan; actual practicing adherents are much lower

Population growth rate:

Birth rate:

Death rate:

Net migration rate:

Environment
Current issues: local scientists consider the Abseron (Apsheron) Peninsula (including Baku and Sumqayit) and the Caspian Sea to be the ecologically most devastated area in the world because of severe air, water, and soil pollution; soil pollution results from the use of DDT as a pesticide and also from toxic defoliants used in the production of cotton
Current issues Natural hazards: droughts; some lowland areas threatened by rising levels of the Caspian Sea
International agreements: Climate Change; signed, but not ratified_Biodiversity
International agreements note: Landlocked

Sex ratio
At birth: 1.05 male(s)/female
Under 15 years: 1.04 male(s)/female
15-64 years: 0.95 male(s)/female
65 years and over: 0.61 male(s)/female
All ages:

Life expectancy at birth
Total population: 64.84 years (1996 est.), 71.09 years (1995 est.)
Male: 60.13 years (1996 est.), 67.4 years (1995 est.)
Female: 69.78 years (1996 est.), 74.97 years (1995 est.)

Total fertility rate:

Literacy
Definition: age 15 and over that can read and write (1989)
Total population: 97%
Male: 99%
Female: 96%

Country name
Conventional long form: Azerbaijani Republic
Conventional short form: Azerbaijan
Local long form: Azarbaycan Respublikasi
Local short form: Azerbaycan
Former: Azerbaijan Soviet Socialist Republic

Government type: Republic

Capital: Baku (Baki)

Administrative divisions: 59 rayons (rayonlar; rayon_singular), 11 cities* (saharlar; sahar_singular), 1 autonomous republic** (muxtar respublika; Abscron Rayonu, Agcabadi Rayonu, Agdam Rayonu, Agdas Rayonu, Agstafa Rayonu, Agsu Rayonu, AliBayramli Sahari*, Astara Rayonu, Baki Sahari*, Balakan Rayonu, Barda Rayonu, Beylaqan Rayonu, Bilasuvar Rayonu, Cabrayil Rayonu, Calilabad Rayonu, Daskasan Rayonu, Davaci Rayonu, Fuzuli Rayonu, Gadabay Rayonu, Ganca Sahari*, Goranboy Rayonu, Goycay Rayonu, Haciqabul Rayonu, Imisli Rayonu, Ismayilli Rayonu, Kalbacar Rayonu, Kurdamir Rayonu, Lacin Rayonu, Lankaran Rayonu, Lankaran Sahari*, Lerik Rayonu, Masalli Rayonu, Mingacevir Sahari*, Naftalan Sahari*, Naxcivan Muxtar Respublikasi**, Neftcala Rayonu, Oguz Rayonu, Qabala Rayonu, Qax Rayonu, Qazax Rayonu, Qobustan Rayonu, Quba Rayonu, Qubadli Rayonu, Qusar Rayonu, Saatli Rayonu, Sabirabad Rayonu, Saki Rayonu, Saki Sahari*, Salyan Rayonu, Samaxi Rayonu, Samkir Rayonu, Samux Rayonu, Siyazan Rayonu, Sumqayit Sahari*, Susa Rayonu, Susa Sahari*, Tartar Rayonu, Tovuz Rayonu, Ucar Rayonu, Xacmaz Rayonu, Xankandi Sahari*, Xanlar Rayonu, Xizi Rayonu, Xocali Rayonu, Xocavand Rayonu, Yardimb Rayonu, Yevlax Rayonu, Yevlax Sahari*, Zangilan Rayonu, Zaqatala Rayonu, Zardab Rayonu

Independence: 30 August 1991 (from Soviet Union)

National holiday: Independence Day, 28 May

Constitution: Adopted NA April 1978; writing a new constitution

Legal system: Based on civil law system

Suffrage: 18 years of age; universal

Executive branch
Chief of state: President Heydar ALIYEV (since 18 June 1993) was elected by popular vote; election last held 3 October 1993 (next to be held 1997 or 1998); results_Heydar ALIYEV won 97% of vote
Head of government: Prime Minister Fuad QULIYEV (since 9 October 1994), First Deputy Prime Ministers Abbas ABBASOV (since NA), Samed SADYKOV (since NA), Vahid AKHMEDOV (since NA), Elchin EFENDIYEV (since NA) were appointed by the president and confirmed by the Milli Mejlis
Cabinet: Council of Ministers; appointed by the president and confirmed by the Mejlis

Legislative branch: Unicameral National Assembly (Milli Mejlis):Elections last held 12 and 26 November 1995 (next to be held NA; percent of vote by party NA; seats_(125 total) number of seats by party NA

Judicial branch: Supreme Court

International organization participation: BSEC, CCC, CIS, EBRD, ECE, ECO, ESCAP, FAO, IBRD, ICAO, IDA, IDB, IFAD, IFRCS, ILO, IMF, IMO, Intelsat, Interpol, IOC, ITU, NACC, NAM (observer), OIC, OSCE, PFP, UN, UNCTAD, UNESCO, UNIDO, UPU, WHO, WIPO, WMO, WTrO (observer)

Flag description: Three equal horizontal bands of blue (top), red, and green; a crescent and eight-pointed star in white are centered in red band

Economy overview: Azerbaijan is less developed industrially than either Armenia or Georgia, the other Transcaucasian states. It resembles the Central Asian states in its majority nominally Muslim population, high structural unemployment, and low standard of living. The economy's most prominent products are oil, cotton, and gas. Production from the Caspian oil and gas field has been in decline for several years, but the November 1994 ratification of the $7.5 billion oil deal with a consortium of Western companies should generate the funds needed to spur future industrial development. Azerbaijan shares all the formidable problems of the ex-Soviet republics in making the transition from a command to a market economy, but its considerable energy resources brighten its long-term prospects. Baku has only recently begun making progress on economic reform, and old economic ties and structures have yet to be replaced. Whereas the economies of most of the former Soviet republics had begun to bottom out in 1995, Azerbaijan's economy continued to plummet because of its late start on economic reform.

Real gdp growth rate:

Real gdp per capita:

Agriculture products: Cotton, grain, rice, grapes, fruit, vegetables, tea, tobacco; cattle, pigs, sheep and goats

Industries:

Industrial production growth rate: Growth rate -21% (1995 est.), -25% (1994)

Labor force: 2.789 million
By occupation Agriculture and forestry: 32%
By occupation Industry and construction: 26%
By occupation Other: 42% (1990)

Unemployment rate:

Budget
Revenues: $465 million (1995 est.), $167.5 million (1994)
Expenditures: $488 million, including capital expenditures of $NA (1995 est.), $234.6 million, including capital expenditures of NA (1994)

Fiscal year: Calendar year

Exports:
Commodities:
Partners: Mostly CIS and European countries

Imports
Total value:
Commodities:
Partners: European countries

Debt external: $100 million (of which $75 million to Russia)

Exchange rates: Manats per US$1_4,375 (April 1996), 4,500 (April 1995), 4,168 (end of December 1994)

Electricity
Capacity: 4,900,000 kW
Production: 17 billion kWh
Consumption per capita: 2,200 kWh (1995 est.)

Telephone system: 710,000 telephones; 202,000 persons waiting for telephone installations (January 1991); domestic telephone service is of poor quality and inadequate
Domestic: telephone service is of poor quality and inadequate; a joint venture to establish a cellular telephone system in the Baku area was supposed to become operational in 1994
International: cable and microwave radio relay connections to former Soviet republics; connection through Moscow international gateway switch to other countries; satellite earth stations_1 Intelsat and 1 Intersputnik (Intelsat provides service to Turkey and through Turkey to 200 more countries; Intersputnik provides direct service to New York)

Airports: 69
With paved runways over 3047 m: 2
With paved runways 2438 to 3047 m: 6
With paved runways 15-24 to 2437 m: 17
With paved runways 914 to 1523 m: 7
With paved runways under 914 m: 33

Pipelines: Crude oil 1,130 km; petroleum products 630 km; natural gas 1,240 km

Illicit drugs: Illicit cultivator of cannabis and opium poppy; mostly for CIS consumption; limited government eradication program; transshipment point for illicit drugs to Western Europe