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Azerbaijan-Aliyev's National Security Reform





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Azerbaijan Index

In November 1993, Aliyev created the Defense Council to provide him direct oversight of military affairs and to curtail the loss of considerable Azerbaijani territory outside NagornoKarabakh . The new council, which reports to the president, also strengthened Aliyev's control over military and security affairs, which previously had been directed by Prime Minister Huseynov. At its first meeting, the Defense Council replaced the deputy defense ministers in charge of the Border Guards and the general staff, and the council criticized the Council of Ministers for neglecting urgent defense matters. At the end of 1993, Aliyev continued his criticism of widespread draft evasion, appealing particularly to the 10,000 Afghan war veterans in Azerbaijan to reenlist. Penalties for draft evasion and desertion were tightened. At the same time, Aliyev ordered most officers with desk assignments to be deployed to the front lines.

In 1993 Aliyev attempted to establish better relations with Russian military and political officials by rejoining the CIS and signing CIS agreements on multilateral peacekeeping and mutual security policy. He answered nationalist critics by citing the hope that Russia might coax or coerce Armenia and the NagornoKarabakh Armenians into reaching a suitable settlement of the conflict. Some APF members and others denounced these moves as jeopardizing Azerbaijani sovereignty more seriously than did the existing conflict.

In November 1993, the Melli-Majlis approved the Law on Defense, ratifying Aliyev's proposed reforms. Paramilitary forces were officially disbanded, and strenuous efforts were undertaken to increase the size of the military. In early 1994, these measures appeared to help Azerbaijani forces to regain some territory that had been lost in late 1993. These successes were attributed to several factors: Aliyev's success in wooing veterans, including officers, back into military service; increased enlistments and a lower desertion rate; improved morale; a streamlined command system with Aliyev at its head; and training assistance and volunteers from abroad.

Data as of March 1994



BackgroundAzerbaijan - a nation with a majority-Turkic and majority-Muslim population - was briefly independent from 1918 to 1920; it 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 Nagorno-Karabakh, a primarily Armenian-populated region, assigned to Soviet Azerbaijan in the 1920s by Moscow. Armenia and Azerbaijan began fighting over the area in 1988; the struggle escalated after both countries attained independence from the Soviet Union in 1991. By May 1994, when a cease-fire took hold, ethnic Armenian forces held not only Nagorno-Karabakh but also a significant portion of Azerbaijan proper. Corruption in the country is ubiquitous, and the government has been accused of authoritarianism. Although the poverty rate has been reduced in recent years due to revenue from exploiting oil resources, the promise of widespread wealth resulting from the continued development of Azerbaijan's energy sector remains largely unfulfilled.
LocationSouthwestern Asia, bordering the Caspian Sea, between Iran and Russia, with a small European portion north of the Caucasus range
Area(sq km)total: 86,600 sq km
land: 82,629 sq km
water: 3,971 sq km
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
Geographic coordinates40 30 N, 47 30 E
Land boundaries(km)total: 2,013 km
border countries: 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(km)0 km (landlocked); note - Azerbaijan borders the Caspian Sea (713 km)

Climatedry, semiarid steppe

Elevation extremes(m)lowest point: Caspian Sea -28 m
highest point: Bazarduzu Dagi 4,485 m
Natural resourcespetroleum, natural gas, iron ore, nonferrous metals, bauxite
Land use(%)arable land: 20.62%
permanent crops: 2.61%
other: 76.77% (2005)

Irrigated land(sq km)14,550 sq km (2003)
Total renewable water resources(cu km)30.3 cu km (1997)
Freshwater withdrawal (domestic/industrial/agricultural)total: 17.25 cu km/yr (5%/28%/68%)
per capita: 2,051 cu m/yr (2000)
Natural hazardsdroughts
Environment - current issueslocal 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 pesticide, and from toxic defoliants used in the production of cotton
Environment - international agreementsparty to: Air Pollution, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Marine Dumping, Ozone Layer Protection, Ship Pollution, Wetlands
signed, but not ratified: none of the selected agreements
Geography - noteboth the main area of the country and the Naxcivan exclave are landlocked
Population8,238,672 (July 2009 est.)
Age structure(%)0-14 years: 23.9% (male 1,042,132/female 926,495)
15-64 years: 69.4% (male 2,807,717/female 2,908,221)
65 years and over: 6.7% (male 204,410/female 349,697) (2009 est.)
Median age(years)total: 28.2 years
male: 26.6 years
female: 30 years (2009 est.)
Population growth rate(%)0.762% (2009 est.)
Birth rate(births/1,000 population)17.62 births/1,000 population (2009 est.)
Death rate(deaths/1,000 population)8.3 deaths/1,000 population (July 2009 est.)

Net migration rate(migrant(s)/1,000 population)-1.69 migrant(s)/1,000 population (2009 est.)
Urbanization(%)urban population: 52% of total population (2008)
rate of urbanization: 1% annual rate of change (2005-10 est.)
Sex ratio(male(s)/female)at birth: 1.13 male(s)/female
under 15 years: 1.12 male(s)/female
15-64 years: 0.96 male(s)/female
65 years and over: 0.58 male(s)/female
total population: 0.97 male(s)/female (2009 est.)
Infant mortality rate(deaths/1,000 live births)total: 54.6 deaths/1,000 live births
male: 60.2 deaths/1,000 live births
female: 48.27 deaths/1,000 live births (2009 est.)

Life expectancy at birth(years)total population: 66.66 years
male: 62.53 years
female: 71.34 years (2009 est.)

Total fertility rate(children born/woman)2.04 children born/woman (2009 est.)
Nationalitynoun: Azerbaijani(s)
adjective: Azerbaijani
Ethnic groups(%)Azeri 90.6%, Dagestani 2.2%, Russian 1.8%, Armenian 1.5%, other 3.9% (1999 census)
note: almost all Armenians live in the separatist Nagorno-Karabakh region

Religions(%)Muslim 93.4%, Russian Orthodox 2.5%, Armenian Orthodox 2.3%, other 1.8% (1995 est.)
note: religious affiliation is still nominal in Azerbaijan; percentages for actual practicing adherents are much lower
Languages(%)Azerbaijani (Azeri) 90.3%, Lezgi 2.2%, Russian 1.8%, Armenian 1.5%, other 3.3%, unspecified 1% (1999 census)

Country nameconventional long form: Republic of Azerbaijan
conventional short form: Azerbaijan
local long form: Azarbaycan Respublikasi
local short form: Azarbaycan
former: Azerbaijan Soviet Socialist Republic
Government typerepublic
Capitalname: Baku (Baki, Baky)
geographic coordinates: 40 23 N, 49 52 E
time difference: UTC+4 (9 hours ahead of Washington, DC during Standard Time)
daylight saving time: +1hr, begins last Sunday in March; ends last Sunday in October
Administrative divisions59 rayons (rayonlar; rayon - singular), 11 cities (saharlar; sahar - singular), 1 autonomous republic (muxtar respublika)
rayons: Abseron Rayonu, Agcabadi Rayonu, Agdam Rayonu, Agdas Rayonu, Agstafa Rayonu, Agsu Rayonu, Astara Rayonu, Balakan Rayonu, Barda Rayonu, Beylaqan Rayonu, Bilasuvar Rayonu, Cabrayil Rayonu, Calilabad Rayonu, Daskasan Rayonu, Davaci Rayonu, Fuzuli Rayonu, Gadabay Rayonu, Goranboy Rayonu, Goycay Rayonu, Haciqabul Rayonu, Imisli Rayonu, Ismayilli Rayonu, Kalbacar Rayonu, Kurdamir Rayonu, Lacin Rayonu, Lankaran Rayonu, Lerik Rayonu, Masalli Rayonu, Neftcala Rayonu, Oguz Rayonu, Qabala Rayonu, Qax Rayonu, Qazax Rayonu, Qobustan Rayonu, Quba Rayonu, Qubadli Rayonu, Qusar Rayonu, Saatli Rayonu, Sabirabad Rayonu, Saki Rayonu, Salyan Rayonu, Samaxi Rayonu, Samkir Rayonu, Samux Rayonu, Siyazan Rayonu, Susa Rayonu, Tartar Rayonu, Tovuz Rayonu, Ucar Rayonu, Xacmaz Rayonu, Xanlar Rayonu, Xizi Rayonu, Xocali Rayonu, Xocavand Rayonu, Yardimli Rayonu, Yevlax Rayonu, Zangilan Rayonu, Zaqatala Rayonu, Zardab Rayonu
cities: Ali Bayramli Sahari, Baki Sahari, Ganca Sahari, Lankaran Sahari, Mingacevir Sahari, Naftalan Sahari, Saki Sahari, Sumqayit Sahari, Susa Sahari, Xankandi Sahari, Yevlax Sahari
autonomous republic: Naxcivan Muxtar Respublikasi (Nakhichevan)
Constitutionadopted 12 November 1995; modified by referendum 24 August 2002

Legal systembased on civil law system; has not accepted compulsory ICJ jurisdiction

Suffrage18 years of age; universal
Executive branchchief of state: President Ilham ALIYEV (since 31 October 2003)
head of government: Prime Minister Artur RASIZADE (since 4 November 2003); First Deputy Prime Minister Yaqub EYYUBOV (since June 2006)
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 (eligible for a second term); election last held 15 October 2008 (next to be held in October 2013); prime minister and first deputy prime minister appointed by the president and confirmed by the National Assembly
election results: Ilham ALIYEV reelected president; percent of vote - Ilham ALIYEV 89%, Igbal AGHAZADE 2.9%, five other candidates with smaller percentages
note: several political parties boycotted the election due to unfair conditions; OSCE observers concluded that the election did not meet international standards
Legislative branchunicameral National Assembly or Milli Mejlis (125 seats; members elected by popular vote to serve five-year terms)
elections: last held 6 November 2005 (next to be held in November 2010)
election results: percent of vote by party - NA; seats by party - Yeni 58, Azadliq coalition 8, CSP 2, Motherland 2, other parties with single seats 9, independents 42, undetermined 4

Judicial branchSupreme Court

Political pressure groups and leadersAzerbaijan Public Forum [Eldar NAMAZOV]; Karabakh Liberation Organization
International organization participationADB, BSEC, CE, CIS, EAPC, EBRD, ECO, FAO, GCTU, GUAM, IAEA, IBRD, ICAO, ICRM, IDA, IDB, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, MIGA, NAM (observer), OAS (observer), OIC, OPCW, OSCE, PFP, SECI (observer), UN, UNCTAD, UNESCO, UNIDO, UNWTO, UPU, WCO, WFTU, WHO, WIPO, WMO, WTO (observer)
Flag descriptionthree equal horizontal bands of blue (top), red, and green; a crescent and eight-pointed star in white are centered in the red band

Economy - overviewAzerbaijan's high economic growth during 2006-08 is attributable to large and growing oil exports, but the non-energy sector also featured double-digit growth in 2008, spurred by growth in the construction, banking, and real estate sectors. However, the current global economic slowdown presents some challenges for the Azerbaijani economy as oil prices have plummeted since mid-2008 and local banks face a more uncertain international financial environment. 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 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. A consortium of Western oil companies built a $4 billion pipeline from Baku to Turkey's Mediterranean port of Ceyhan which will pump 1.2 million barrels a day from a large offshore field when at full capacity. 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 medium-term prospects. Baku has only recently begun making progress on economic reform, and old economic ties and structures are slowly being replaced. Several other obstacles impede Azerbaijan's economic progress: the need for stepped up foreign investment in the non-energy sector, the continuing conflict with Armenia over the Nagorno-Karabakh region, pervasive corruption, and potential for a sharp downturn in the construction and real estate sectors. 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 oil and gas pipelines in the region, and Azerbaijan's ability to manage its energy wealth to promote sustainable growth in non-energy sectors of the economy and spur employment.
GDP (purchasing power parity)$77.79 billion (2008 est.)
$70.21 billion (2007 est.)
$56.17 billion (2006 est.)
note: data are in 2008 US dollars
GDP (official exchange rate)$46.38 billion (2008 est.)
GDP - real growth rate(%)10.8% (2008 est.)
25% (2007 est.)
34.5% (2006 est.)
GDP - per capita (PPP)$9,500 (2008 est.)
$8,600 (2007 est.)
$7,000 (2006 est.)
note: data are in 2008 US dollars
GDP - composition by sector(%)agriculture: 6%
industry: 60.5%
services: 33.5% (2008 est.)
Labor force5.782 million (2008 est.)

Labor force - by occupation(%)agriculture: 39.3%
industry: 12.1%
services: 48.6% (2005)
Unemployment rate(%)0.9% (2008 est.)
1% (2007 est.)
Population below poverty line(%)24% (2005 est.)
Household income or consumption by percentage share(%)lowest 10%: 6.1%
highest 10%: 17.5% (2005)
Distribution of family income - Gini index36.5 (2001)
36 (1995)
Investment (gross fixed)(% of GDP)21.2% of GDP (2008 est.)
Budgetrevenues: $12.69 billion
expenditures: $15.67 billion (2008 est.)
Inflation rate (consumer prices)(%)20.8% (2008 est.)
16.7% (2007 est.)

Stock of money$6.381 billion (31 December 2008)
$4.261 billion (31 December 2007)
Stock of quasi money$4.125 billion (31 December 2008)
$2.593 billion (31 December 2007)
Stock of domestic credit$8.135 billion (31 December 2008)
$5.726 billion (31 December 2007)
Market value of publicly traded shares$NA
Economic aid - recipientODA, $223.4 million (2005 est.)

Public debt(% of GDP)4.1% of GDP (2008 est.)
18.9% of GDP (2004 est.)
Agriculture - productscotton, grain, rice, grapes, fruit, vegetables, tea, tobacco; cattle, pigs, sheep, goats
Industriespetroleum and natural gas, petroleum products, oilfield equipment; steel, iron ore; cement; chemicals and petrochemicals; textiles

Industrial production growth rate(%)6% (2008 est.)

Current account balance$16.45 billion (2008 est.)
$9.019 billion (2007 est.)
Exports$30.59 billion (2008 est.)
$21.27 billion (2007 est.)

Exports - commodities(%)oil and gas 90%, machinery, cotton, foodstuffs
Exports - partners(%)Italy 40.2%, US 12.6%, Israel 7.6%, India 5.1%, France 4.9% (2008)
Imports$7.575 billion (2008 est.)
$6.045 billion (2007 est.)

Imports - commodities(%)machinery and equipment, oil products, foodstuffs, metals, chemicals
Imports - partners(%)Russia 18.8%, Turkey 11.3%, Germany 8.4%, Ukraine 7.9%, China 6.7%, UK 5.4% (2008)

Reserves of foreign exchange and gold$6.519 billion (31 December 2008 est.)
$4.273 billion (31 December 2007 est.)
Debt - external$2.635 billion (31 December 2008 est.)
$2.439 billion (31 December 2007 est.)

Stock of direct foreign investment - at home$7.844 billion (31 December 2008 est.)
$7.829 billion (31 December 2007 est.)
Stock of direct foreign investment - abroad$5.232 billion (31 December 2008 est.)
$4.677 billion (31 December 2007 est.)
Exchange ratesAzerbaijani manats (AZN) per US dollar - 0.8219 (2008 est.), 0.8581 (2007), 0.8934 (2006), 4,727.1 (2005), 4,913.48 (2004)
note: on 1 January 2006 Azerbaijan revalued its currency, with 5,000 old manats equal to 1 new manat

Currency (code)Azerbaijani manat (AZN)

Telephones - main lines in use1.311 million (2008)
Telephones - mobile cellular6.548 million (2008)
Telephone systemgeneral assessment: inadequate; requires considerable expansion and modernization; teledensity of 15 main lines per 100 persons is low; mobile-cellular penetration has increased rapidly and is currently about 80 telephones per 100 persons
domestic: fixed-line telephony and a broad range of other telecom services are controlled by a state-owned telecommunications monopoly and growth has been stagnant; more competition exists in the mobile-cellular market with three providers in 2006; satellite service connects Baku to a modern switch in its exclave of Naxcivan
international: country code - 994; the Trans-Asia-Europe (TAE) fiber-optic link transits Azerbaijan providing international connectivity to neighboring countries; the old Soviet system of cable and microwave is still serviceable; satellite earth stations - 2 (2008)
Internet country code.az
Internet users1.485 million (2008)
Airports34 (2009)
Pipelines(km)condensate 1 km; gas 3,361 km; oil 1,424 km (2008)
Roadways(km)total: 59,141 km
paved: 29,210 km
unpaved: 29,931 km (2004)

Ports and terminalsBaku (Baki)
Military branchesArmy, Navy, Air and Air Defense Forces (2008)
Military service age and obligation(years of age)men between 18 and 35 are liable for military service; 18 years of age for voluntary military service; length of military service is 18 months and 12 months for university graduates (2006)
Manpower available for military servicemales age 16-49: 2,278,888
females age 16-49: 2,291,770 (2008 est.)
Manpower fit for military servicemales age 16-49: 1,727,464
females age 16-49: 1,944,260 (2009 est.)
Manpower reaching militarily significant age annuallymale: 90,416
female: 85,344 (2009 est.)
Military expenditures(% of GDP)2.6% of GDP (2005 est.)
Disputes - internationalArmenia supports ethnic Armenian secessionists in Nagorno-Karabakh and since the early 1990s has militarily occupied 16% of Azerbaijan; over 800,000 mostly ethnic Azerbaijanis were driven from the occupied lands and Armenia; about 230,000 ethnic Armenians were driven from their homes in Azerbaijan into Armenia and Nagorno-Karabakh; Azerbaijan seeks transit route through Armenia to connect to Naxcivan exclave; Organization for Security and Cooperation in Europe (OSCE) continues to mediate dispute; Azerbaijan, Kazakhstan, and Russia have ratified 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; bilateral talks continue with Turkmenistan on dividing the seabed and contested oilfields in the middle of the Caspian; Azerbaijan and Georgia continue to discuss the alignment of their boundary at certain crossing areas

Refugees and internally displaced personsrefugees (country of origin): 2,400 (Russia)
IDPs: 580,000-690,000 (conflict with Armenia over Nagorno-Karabakh) (2007)
Trafficking in personscurrent situation: Azerbaijan is primarily a source and transit country for men, women, and children trafficked for the purposes of commercial sexual exploitation and forced labor; women and some children from Azerbaijan are trafficked to Turkey and the UAE for the purpose of sexual exploitation; men and boys are trafficked to Russia for the purpose of forced labor; Azerbaijan serves as a transit country for victims from Uzbekistan, Kyrgyzstan, Kazakhstan, and Moldova trafficked to Turkey and the UAE for sexual exploitation
tier rating: Tier 2 Watch List - Azerbaijan is on the Tier 2 Watch List for its failure to provide evidence of increasing efforts to combat trafficking in persons, particularly efforts to investigate, prosecute, and punish traffickers; to address complicity among law enforcement personnel; and to adequately identify and protect victims in Azerbaijan; the government has yet to develop a much-needed mechanism to identify potential trafficking victims and refer them to safety and care; poor treatment of trafficking victims in courtrooms continues to be a problem (2008)
Electricity - production(kWh)19.35 billion kWh (2007 est.)
Electricity - production by source(%)fossil fuel: 89.7%
hydro: 10.3%
nuclear: 0%
other: 0% (2001)
Electricity - consumption(kWh)15.68 billion kWh (2007 est.)
Electricity - exports(kWh)786 million kWh (2007 est.)
Electricity - imports(kWh)548 million kWh (2007 est.)
Oil - production(bbl/day)875,200 bbl/day (2008 est.)
Oil - consumption(bbl/day)126,000 bbl/day (2008 est.)
Oil - exports(bbl/day)528,900 bbl/day (2007 est.)
Oil - imports(bbl/day)2,848 bbl/day (2007 est.)
Oil - proved reserves(bbl)7 billion bbl (1 January 2009 est.)
Natural gas - production(cu m)16.2 billion cu m (2008 est.)
Natural gas - consumption(cu m)10.64 billion cu m (2008 est.)
Natural gas - exports(cu m)5.564 billion cu m (2008)
Natural gas - proved reserves(cu m)849.5 billion cu m (1 January 2009 est.)
HIV/AIDS - adult prevalence rate(%)less than 0.2% (2007 est.)
HIV/AIDS - people living with HIV/AIDS7,800 (2007 est.)
HIV/AIDS - deathsfewer than 100 (2007 est.)
Literacy(%)definition: age 15 and over can read and write
total population: 98.8%
male: 99.5%
female: 98.2% (1999 census)

School life expectancy (primary to tertiary education)(years)total: 11 years
male: 11 years
female: 11 years (2006)
Education expenditures(% of GDP)2.1% of GDP (2006)








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