Background: Azerbaijan - a nation with a Turkic and majority-Muslim population - 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 the Azerbaijani Nagorno-Karabakh enclave (largely Armenian populated). Azerbaijan has lost 16% of its territory and must support some 800,000 refugees and internally displaced persons as a result of the conflict. Corruption is ubiquitous and the promise of widespread wealth from Azerbaijan's undeveloped petroleum resources remains largely unfulfilled.

Geographic coordinates: 40 30 N 47 30 E

Map reference: Asia

Area
Total: 86,600 km²
Land: 86,100 km²
Water: 500 km²
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
Comparative: slightly smaller than Maine

Land boundaries
Total: 2,013 km
Border countries: (6) 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

Coastline: 0 km (landlocked); note - Azerbaijan borders the Caspian Sea (800 km est.)

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
Extremes highest point: Bazarduzu Dagi 4,485 m

Natural resources: petroleum natural gas iron ore nonferrous metals alumina

Land use
Arable land: 19.63%
Permanent crops: 2.71%
Other: 77.66% (2001)

Irrigated land: 14,550 km² (1998 est.)

Natural hazards: droughts

Geography
Note: both the main area of the country and the Naxcivan exclave are landlocked

Population: 7,868,385 (July 2004 est.)
Growth rate: 0.52% (2004 est.)
Below poverty line: 49% (2002 est.)

Nationality
Noun: Azerbaijani
Adjective: Azerbaijani

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

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

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

Age structure
0-14 years: 27% (male 1,081,579; female 1,046,270)
15-64 years: 65.2% (male 2,499,618; female 2,630,386)
65 years and over: 7.8% (male 242,253; female 368,279) (2004 est.)

Median age
Total: 27.3 years
Male: 25.9 years
Female: 28.8 years (2004 est.)

Population growth rate: 0.52% (2004 est.)

Birth rate: 19.81 births/1000 population (2004 est.)

Death rate: 9.76 deaths/1000 population (2004 est.)

Net migration rate: -4.9 migrant(s)/1000 population (2004 est.)

Environment
Current issues: 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 as a pesticide and from toxic defoliants used in the production of cotton
International agreements party to: Air Pollution, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Marine Dumping, Ozone Layer Protection, Wetlands
International agreements signed but not ratified: none of the selected agreements

Sex ratio
At birth: 1.05 male/female
Under 15 years: 1.03 male/female
15-64 years: 0.95 male/female
65 years and over: 0.66 male/female
Total population: 0.95 male/female (2004 est.)

Infant mortality rate
Total: 82.07 deaths/1000 live births
Male: 83.99 deaths/1000 live births
Female: 80.06 deaths/1000 live births (2004 est.)

Life expectancy at birth
Total population: 63.25 years
Male: 59.09 years
Female: 67.62 years (2004 est.)

Total fertility rate: 2.39 children born/woman (2004 est.)

Hivaids
Adult prevalence rate: less than 0.1% (2003 est.)
People living with hivaids: 1400 (2003 est.)
Deaths: less than 100 (2001 est.)

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

Country name
Conventional long form: Republic of Azerbaijan
Conventional short form: Azerbaijan
Local long form: Azarbaycan Respublikasi
Local short form: none
Former: Azerbaijan Soviet Socialist Republic

Government type: republic

Capital: Baku (Baki)

Administrative divisions:

Independence: 30 August 1991 (from Soviet Union)

National holiday: Founding of the Democratic Republic of Azerbaidzhan 28 May (1918)

Constitution: adopted 12 November 1995

Legal system: based on civil law system

Suffrage: 18 years of age; universal

Executive branch
Chief of state: President Ilham ALIYEV (since 31 October 2003)
Head of government: Prime Minister Artur RASIZADE (since 4 November 2003); First Deputy Prime Minister Abbas ABBASOV (since 10 November 2003)
Cabinet: Council of Ministers appointed by the president and confirmed by the National Assembly
Elections: president elected by popular vote to a five-year term; election last held 15 October 2003 (next to be held NA October 2008); prime minister and first deputy prime ministers appointed by the president and confirmed by the National Assembly
Election results: Ilham ALIYEV elected president; percent of vote - Ilham ALIYEV 76.8%, Isa GAMBAR 14%

Legislative branch
Elections: last held 4 November 2000 (next to be held NA November 2005)
Note: PNIA, Musavat, and APF 'Classic' parties refused to take their seats
Election results: percent of vote by party - NA; seats by party - NAP and allies 108, APF 'Reform' 6, CSP 3, PNIA 2, Musavat Party 2, CPA 2, APF 'Classic' 1, Compatriot Party 1

Judicial branch: Supreme Court

Political parties and leaders
Note: opposition parties regularly factionalize and form new parties

International organization participation: AsDB BSEC CE CIS EAPC EBRD ECO FAO GUUAM IAEA IBRD ICAO ICFTU ICRM IDA IDB IFAD IFC IFRCS ILO IMF IMO Interpol IOC IOM ISO ITU MIGA OAS (observer) OIC OPCW OSCE PFP UN UNCTAD UNESCO UNIDO UPU WCO WFTU WHO WIPO WMO WToO WTrO (observer)

Diplomatic representation
In the us chief of mission: Ambassador Hafiz PASHAYEV
In the us chancery: 2,741 34th Street NW, Washington, DC 20,008
In the us telephone: [1] (202) 337-3,500
In the us fax: [1] (202) 337-5,911
From the us chief of mission: Ambassador Reno L. HARNISH III
From the us embassy: 83 Azadlyg Prospecti, Baku AZ1007
From the us mailing address: American Embassy Baku, Department of State, 7,050 Baku Place, Washington, DC 20,521-7,050
From the us telephone: [9] (9,412) 98-03-35, 36, 37
From the us fax: [9] (9,412) 656-671

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's number one export is oil. Azerbaijan's oil production declined through 1997 but has registered an increase every year since. Negotiation of production-sharing arrangements (PSAs) with foreign firms which have thus far committed $60 billion to long-term oilfield development should generate the funds needed to spur future industrial development. Oil production under the first of these PSAs with the Azerbaijan International Operating Company began in November 1997. Azerbaijan shares all the formidable problems of the former 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 are slowly being replaced. One obstacle to economic progress is the need for stepped up foreign investment in the non-energy sector. A second obstacle is 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 pipelines in the region and Azerbaijan's ability to manage its oil wealth.

Real gdp growth rate: 11.2% (2003 est.)

Real gdp per capita: purchasing power parity - $3,400 (2003 est.)

Gdp composition by sector of origin
Agriculture: 14.1%
Industry: 45.7%
Services: 40.2% (2002 est.)

Agriculture products: cotton grain rice grapes fruit vegetables tea tobacco; cattle pigs sheep goats

Industries: petroleum and natural gas petroleum products oilfield equipment; steel iron ore cement; chemicals and petrochemicals; textiles

Industrial production growth rate: 6.1% (2003 est.)

Labor force: 4.99 million (2003)
By occupation agriculture and forestry: 41%
By occupation industry: 7%
By occupation services: 52% (2001)

Unemployment rate: 1.1% (official rate is 1.2%) (2003 est.)

Population below poverty line: 49% (2002 est.)

Household income or consumption by percentage share
Lowest 10: 2.8%
Highest 10: 27.8% (1995)

Distribution of family income gini index: 36 (1995)

Budget
Revenues: $2.063 billion
Expenditures: $2.202 billion, including capital expenditures of NA (2003)

Public debt: 16.3% of GDP (2003 est.)

Fiscal year: calendar year

Inflation rate consumer prices: 2.1% (2003 est.)

Current account balance: $-2.021 billion (2003)

Exports: $2.605 billion f.o.b. (2003 est.)
Commodities: oil and gas 90% machinery cotton foodstuffs
Partners: Italy 34.1% Czech Republic 11.4% Germany 10.5% France 8.2% Turkey 5.9% Georgia 4.5% Russia 4.5% (2003)

Imports: $2.498 billion f.o.b. (2003 est.)
Commodities: machinery and equipment oil products foodstuffs metals chemicals
Partners: Russia 15.5% Turkey 12% UK 8.7% Germany 8.1% China 7.8% Ukraine 5.4% Italy 4.6% US 4.6% Kazakhstan 4.3% (2003)

Debt external: $1.575 billion (2003)

Exchange rates: Azerbaijani manats per US dollar - 4,911 (2003) 4,861 (2002) 4,657 (2001) 4,474 (2000) 4,120 (1999)

Electricity
Production: 18.23 billion kWh (2001)
Consumption: 16.65 billion kWh (2001)
Exports: 700 million kWh (2001)
Imports: 400 million kWh (2001)

Natural gas
Production: 5.72 billion m³ (2001 est.)
Consumption: 6.72 billion m³ (2001 est.)
Exports: 0 m³ (2001 est.)
Imports: 1 billion m³ (2001 est.)
Proven reserves: 62.3 billion m³ (1 January 2002)

Telephones
Main lines in use: 923,800 (2002)
Mobile cellular: 870,000 (2002)

Telephone system
General assessment: inadequate; requires considerable expansion and modernization; teledensity of 10 main lines per 100 persons is low (2002)
Domestic: the majority of telephones are in Baku and other industrial centers - about 700 villages still without public telephone service; satellite service connects Baku to a modern switch in its exclave of Naxcivan
International: country code - 994; the old Soviet system of cable and microwave is still serviceable; a satellite connection to Turkey enables Baku to reach about 200 additional countries, some of which are directly connected to Baku by satellite providers other than Turkey (1997)

Internet
Country code: .az
Hosts: 586 (2004)
Users: 300,000 (2002)

Military expenditures
Dollar figure: $121 million (FY99)
Percent of gdp: 2.6% (FY99)

Airports: 67 (2003 est.)
With paved runways total: 27
With paved runways over 3047 m: 2
With paved runways 2438 to 3047 m: 6
With paved runways 15-24 to 2437 m: 15
With paved runways 914 to 1523 m: 3
With paved runways under 914 m: 1 (2003 est.)
With unpaved runways total: 40
With unpaved runways 2438 to 3047 m: 1
With unpaved runways 15-24 to 2437 m: 1
With unpaved runways 914 to 1523 m: 6
With unpaved runways under 914 m: 32 (2003 est.)

Heliports: 2 (2003 est.)

Pipelines: gas 4,451 km; oil 1518 km (2004)

Railways
Total: 2,957 km
Broad gauge: 2,957 km 1.520-m gauge (1,278 km electrified) (2003)

Merchant marine
Total: 56 ships (1,000 GRT or over) 253,004 GRT/318,922 DWT
By type: cargo 14, petroleum tanker 40, roll on/roll off 2
Foreign owned: Russia 1 (2004 est.)

Disputes international: Armenia supports ethnic Armenian secessionists in Nagorno-Karabakh and militarily occupies about one-sixth of Azerbaijan - Organization for Security and Cooperation in Europe (OSCE) continues to mediate dispute; Azerbaijan Kazakhstan and Russia ratify 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; talks resume with Turkmenistan on dividing the seabed in 2004 as both sides await an ICJ decision on contested oilfields in the middle of the Caspian; Azerbaijan protests Georgian constructions at the Red Bridge crossing and several other small segments of boundary which remain unresolved until delimitation

Refugees and internally displaced persons
Idps: 571,000 (conflict with Armenia over Nagorno-Karabakh) (2004)

Illicit drugs: 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