Azerbaijan occupies the western ranges of the Greater and Lesser Caucasus and the Kura River valley. The republic includes the Nakhichivan Autonomous Republic (or Naxçivan, an exclave separated from Azerbaijan proper by Armenia) and Nagorno-Karabakh (an ethnically Armenian region that now has de facto independence; see under History). The Azeri (Azerbaijani), a Turkic-speaking, Shiite Muslim people of Persian culture, make up about 90% of the republic's population; Dagestanis, Russians, and Armenians (largely in Nagorno-Karabakh) are the largest minorities; Azerbaijani (Azeri) is the country's official language. The republic's educational institutions include Bakı State Univ., Khazar Univ. and the Azerbaijan Academy of Sciences.
The Kura River valley is the region's chief agricultural zone. Wheat, barley, corn, fruits and vegetables, wine grapes, and potatoes are the leading food crops, and cotton, silk, and tobacco the foremost industrial crops. The subtropical Lankaran Lowland produces tea and rice. The Absheron peninsula is one of the richest oil regions of the world. Although production of Caspian Sea oil and gas had declined for several years, it began growing again in the late 1990s under production-sharing agreements with multinational corporations. The republic's other mineral resources include natural gas, iron ore, copper, lead, zinc, limestone, pyrites, cobalt, and alumina. Widespread salt springs have enabled health resorts to flourish. Among the chief manufactures are petroleum products, oilfield equipment, steel, chemicals and petrochemicals, and textiles. The old craft of carpet weaving is still practiced. Azerbaijan's main trading partners are Italy, Russia, and Turkey.
Azerbaijan is governed under the constitution of 1995. The president is the head of state and is elected by popular vote to a five-year term. He appoints the prime minister, who is the head of government; the prime minister is confirmed by the National Assembly. The members of the popularly elected, 125-seat unicameral National Assembly serve five-year terms. The country is divided into 59 administrative divisions or rayons, 11 cities, and one autonomous republic.
The Republic of Azerbaijan comprises the Transcaucasian or northern part of the historic region called Azerbaijan. Long inhabited, it is the site of archaeological remains dating back over a million years. Known to the ancients as Albania, the area was located at the crossroads of East and West on the historic Silk Road. Conquered by Alexander the Great and later by the Roman Pompey, it was linked to the history of Armenia and Persia, particularly after its conquest (4th cent.) by Shapur II. The area was invaded by Muslim Arabs in the 7th cent. and was a province of the Arab caliphate for the next two centuries. In the 11th cent. it became part of the Turkish Seljuk Empire. Overrun by Mongols in the 13th cent., it was divided after the fall (15th cent.) of Timur into several principalities (notably Shirvan).
At the beginning of the 19th cent. Russia began its occupation, acquiring the territory of the present Azerbaijan from Persia through the treaties of Gulistan (1813) and Turkamanchai (1828). By the latter date, the territory had been split into two parts, the N portion of which constitutes modern Azerbaijan. The area became a major oil producer in the middle of the 19th cent.
Soon after the Bolshevik Revolution of 1917 (see Russian Revolution), Russian Azerbaijan joined Armenia and Georgia to form the anti-Bolshevik Transcaucasian Federation. After its dissolution (May, 1918), Azerbaijan proclaimed itself an independent state with a democratic and secular government, but it was conquered by the Red Army in 1920 and made into a Soviet republic. In 1922, Azerbaijan joined the USSR as a member of the Transcaucasian Soviet Federated Republic. With the administrative reorganization of 1936, it became a separate republic. Immediately after World War II, Azerbaijan was used as a base for Communist rebels in Iranian Azerbaijan; Azeri nationalists still press claims to Iran's Azerbaijan province.
Azerbaijan declared itself independent of the USSR in Aug., 1991, and became a member of the Commonwealth of Independent States. In 1992, Abulfaz Elchibey, leader of the Popular Front party, was elected president, but he was ousted by the parliament a year later, after a military mutiny. Heydar Aliyev, leader of the Azerbaijan Communist party from 1969 to 1982, assumed power and was confirmed in office by an election. Aliyev promoted exploitation of the country's oil resources through agreements with Russia and several Western oil companies for development of oil fields in the Caspian Sea. In the Nov., 1995, elections, which were condemned by outside observers as rigged, voters elected a new parliament that was dominated by Aliyev's party and approved constitutional changes that expanded his power. Aliyev was reelected in 1998, and his New Azerbaijan party retained power in the Nov., 2000, parliamentary elections, which like the 1995 balloting was not regarded as free and fair.
In Aug., 2003, the ailing president appointed his son, Ilham Aliyev, as the country's prime minister. The president withdrew from the Oct., 2003, election in favor of his son, who was elected by a landslide; the balloting was criticized by independent observers as neither free nor fair. The elder Aliyev died two months after the election. Parliamentary elections in Nov., 2005, returned the governing party to power, albeit with a reduced majority, but the vote was again criticized by European observers and denounced as fraudulent by the opposition.
Prior to the vote the government had blocked the return of exiled opposition leader Rasul Guliyev by having him held in Ukraine on corruption charges, and then arrested several current and former members of the government and others, charging them with plotting a coup against the government with Guliyev. These and subsequent government changes (into 2006) were seen as attempts by the president to consolidate his power. In the 2008 presidential election Aliyev was reelected by a landslide, but the vote was boycotted by the main opposition parties and marred by irregularites. The opposition also boycotted a referendum in 2009 that ended the presidential two-term limit.
During the late 1980s ethnic Armenians in the Nagorno-Karabakh region had pressed for its unification with Armenia, leading to a guerrilla war. A large-scale conflict broke out between the two republics in 1992; the Armenian side gained effective control of the region and adjoining Azerbaijani territory to the south and west by 1994, when a cease-fire was reached with Russian mediation. Some one million Azeris were made refugees within Azerbaijan as a result of the conflict. Attempts to resolve the conflict have proved unsuccessful. Azerbaijan has offered the region a high degree of autonomy, but the Armenians there have insisted on independence or union with Armenia. Following Turkey's signing of protocols with Armenia that called for the establishment of relations between the two nations, Azerbaijan's relations with Turkey became strained. Though the Turkey seemed unlikely to ratify the protocols in the absence of progress toward resolution the Nagorno-Karabakh issue, Azerbaijan threatened to end sales of subsidized natural gas to Turkey.
Relations with Russia and Iran have also been strained at times. Russia has forcefully sought Azeribaijan's cooperation on military and other matters, which Azerbaijan has resisted giving. Iran has supported Islamic groups in Azerbaijan and has challenged the country's right to drill for oil in parts of the Caspian.
See T. Swietochowski, Russian Azerbaijan, 1905-1920 (1985).
Azerbaijan, which includes Lake Urmia, is mountainous, with deep valleys and fertile lowlands. Grains, fruits, cotton, rice, nuts, and tobacco are grown. Wool, carpets, and metalware are produced. Industries include food processing, cement, textiles, electric equipment, and sugar milling. An oil pipeline runs through the region. The majority of the people of Azerbaijan are Turkic-speaking Azeris, who are Shiite Muslims. There are also Armenians, Kurds, Jews, and Persians.
In ancient times Azerbaijan was dominated by the kings of Van and Urartu (in Armenia). By the 8th cent. B.C. it had been settled by the Medes (see Media), and it later formed the province of Media Minor in the Persian Empire. Azerbaijan is the traditional birthplace (7th cent. B.C.) of Zoroaster, the religious teacher and prophet. After Alexander the Great conquered Persia, he appointed (328 B.C.) as governor the Persian general Atropates, who eventually established an independent dynasty. Later, the region, which came to be called Atropatene or Media Atropatene, was much disputed. In the 2d cent. B.C. it was taken by the Parthian Mithradates I, and c.A.D. 226 it was captured by the Sassanid Ardashir I. Shapur II enlarged Azerbaijan by adding territory in the north.
Heraclius, the Byzantine emperor, briefly held the region in the 7th cent., just before the Arabs conquered it; they converted most of its people to Islam and made it part of the caliphate. The Seljuk Turks dominated the region in the 11th and 12th cent., and the Mongols under Hulagu Khan established (13th cent.) their capital at Maragheh. After being conquered by Timur in the 14th cent., Tabriz became an important provincial capital of the Timurid empire. It was out of Ardebil that the Safavid dynasty arose (c.1500) to renew the state of Persia. There was fierce fighting between the Ottoman Empire and Persia for Azerbaijan. After brief Ottoman control, Abbas I, shah of Persia, regained control of the region in 1603.
Azerbaijan remained entirely in the possession of the shahs until the northern part was ceded to Russia in the treaties of Gulistan (1813) and Turkmanchai (1828). The remainder was organized as a province of Persia; in 1938 the province was divided into two parts. In 1941, Soviet troops occupied Iranian Azerbaijan; they were withdrawn (May, 1946) after a Soviet-supported, autonomous local government had been created. Iranian troops occupied the region in Nov., 1946, and the autonomous movement was suppressed.
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Azerbaijan (English: ; Azərbaycan), officially the Republic of Azerbaijan (Azərbaycan Respublikası), is the largest and most populous country in the South Caucasus, partially in Eastern Europe and partially in Western Asia. It is bounded by the Caspian Sea to the east, Russia to the north, Georgia to the west and northwest, Armenia to the southwest, and Iran to the south. The Azerbaijani exclave of Nakhchivan is bordered by Armenia to the north and east, Iran to the south and southwest, and Turkey to the west. The country's territory also encompasses several islands in the Caspian Sea.
Azerbaijan, a nation with an ethnic Azeri and Shi‘ite Muslim majority population, is a secular and unitary republic. The country has been a co-founder of GUAM and the Organisation for the Prohibition of Chemical Weapons, and has been a member of the Commonwealth of Independent States since September 1993. A Special Envoy of the European Commission is present in the country, and it is also a member of the United Nations, OSCE, Council of Europe, and the NATO Partnership for Peace (PfP) program.
The earliest evidence of human settlement in the territory of Azerbaijan dates to the late Stone Age and is related to the Quruçay culture of Azykh Cave. The Upper Paleolithic and late Bronze Age cultures are attested in the caves of Tağlar, Damcili, Zar, Yataq-yeriand in the necropolises of Leylatepe and Sarytepe. The area was conquered by the Achaemenids around 550 B.C., leading to the spread of Zoroastrianism, while later become part of the Alexander the Great's empire, and its successor Seleucid Kingdom. Caucasian Albanians, the original inhabitants of the area established an independent kingdom around 4th century B.C but circa 95-67 B.C. parts of it were subjugated by Tigranes the Great.
In 252 A.D. the Sassanids turned it into a vassal state while King Urnayr officially adopted Christianity as the state religion in the 4th century A.D. Despite numerous conquests by the Sassanids and Byzantines, Caucasian Albania remained an entity in the region until the 9th century A.D. The territory of modern Azerbaijan roughly corresponds to that of the ancient kingdom. The Islamic Umayyad Caliphate repulsed both Sassanids and the Byzantines from the region and turned Caucasian Albania to a vassal state after the Christian resistance, led by Prince Javanshir, was suppressed in 667 A.D. The power vacuum left by the decline of the Abbasid Caliphate was filled by numerous dynasties such as the Salarids, Sajids, Shaddadids, Rawadids and Buyids. At the beginning of the 11th century, the territory was gradually seized by waves of Turkic Oghuz tribes from Central Asia. The first of these Turkic dynasties were the Ghaznavids, who took over the area now known as Azerbaijan by 1030.
Locally, the possessions of the subsequent Seljuk Empire were ruled by atabegs, who were technically vassals of the Seljuk sultans, being sometimes de facto rulers themselves. Under the Seljuk Turks, local poets such as Nizami Ganjavi and Khagani Shirvani gave rise to a blossoming of Persian literature on the territory of present-day Azerbaijan. The next ruling state of the Jalayirids was short-lived and fell under the conquests of Tamerlan. The local dynasty of Shirvanshahs became a vassal state of Tamerlan's empire and assisted him in his war with the ruler of the Golden Horde Tokhtamysh. Following Tamerlan's death two independent and rival states emerged: Kara Koyunlu and Ak Koyunlu. The Shirvanshahs returned, maintaining a high degree of autonomy as local rulers and vassals from 861 until 1539. During their persecution by the Safavids, the last dynasty imposed Shia Islam upon the formerly Sunni population, as it was battling against the Sunni Ottoman Empire. After Safavids the area was ruled by the Iranian dynasties of Afshar and Zand and briefly by Qajars. However, while nominally under Persian rule de facto independent khanates emerged in the area, especially following collapse of Zand dynasty and in early Qajar era. Engaged in constant warfare, these khanates were eventually incorporated to the Russian Empire, following two Russo-Persian Wars. Under the Treaty of Turkmenchay the Persian Empire recognized Russian sovereignty over the Erivan khanate, the Nakhchivan khanate and the remainder of the Talysh khanate.
After the collapse of the Russian Empire during World War I, Azerbaijan, together with Armenia and Georgia became part of the short-lived Transcaucasian Democratic Federative Republic. When the republic dissolved in May 1918, Azerbaijan declared independence as the Azerbaijan Democratic Republic (ADR). The ADR was the first democratic parliamentary republic in the Muslim world, but lasted only 23 months until the Bolshevik XIth Red Army invaded it in April 1920, establishing the Azerbaijan SSR on 28 April 1920. In 1922, Azerbaijan became part of the Transcaucasian Soviet Federative Socialist Republic {TSFSR), which itself became a constituent member of the newly-established Soviet Union. In 1936, TSFSR was dissolved and Azerbaijan SSR became one of the constituent member states of the Soviet Union. During World War II, Azerbaijan supplied much of the Soviet Union's oil on the Eastern Front of World War II while Close to 600,000 Azerbaijanis fought against Nazi Germany. Operation Edelweiss carried out by the German Wehrmacht targeted Baku because of its importance as the energy (petroleum) dynamo of the USSR.
Following the politics of glasnost, initiated by Mikhail Gorbachev, civil unrest and ethnic strife grew in various regions of the Soviet Union, including Nagorno-Karabakh, a region of the Azerbaijan SSR. The disturbances in Azerbaijan, in response to Moscow's indifference to already heated conflict, resulted in calls for independence and secession, which subsequently culminated in the events of Black January in Baku. At this time, Ayaz Mutallibov was appointed as the First Secretary of the Azerbaijan Communist Party. Later in 1990, the Supreme Council of the Azerbaijan SSR dropped the words "Soviet Socialist" from the title; adopted the Declaration of Sovereignty of the Azerbaijan Republic and restored the modified flag of the Azerbaijan Democratic Republic as a state flag. On 8 September 1991, Ayaz Mutallibov was elected as president in nationwide elections in which he was the only candidate running.
On 18 October 1991, Supreme Council of Azerbaijan adopted a Declaration of Independence which was affirmed by a nationwide referendum in December 1991, when the Soviet Union was officially dissolved. The early years of independence were overshadowed by the Nagorno-Karabakh War with neighboring Armenia. By the end of hostilities in 1994, Azerbaijan lost control of up to 16% of its territory, including Nagorno-Karabakh itself. Four United Nations Security Council Resolutions (822, 853, 874, and 884) called for "the withdrawal of occupying forces from occupied areas of the Azerbaijani Republic". In 1993, democratically elected president Abulfaz Elchibey was overthrown by a military insurrection led by Colonel Suret Huseynov, which resulted in the rise to power of the former leader of Soviet Azerbaijan, Heydar Aliyev. In 1994, Suret Huseynov, by that time a prime minister, attempted another military coup against Heydar Aliyev but Huseynov was arrested and charged with treason. In 1995, another coup attempt against Aliyev, by the commander of the military police, Rovshan Javadov, was averted, resulting in the killing of the latter and disbanding of Azerbaijan's military police.
Although during his presidency, Aliyev managed to reduce the country's unemployment, reined in criminal groups, established the fundamental institutions of independent statehood, and brought stability, peace and major foreign investment, the country was tainted by rampant corruption in the governing bureaucracy. In October 1998, Aliyev was reelected for a second term. Despite the much improved economy, particularly with the exploitations of Azeri-Chirag-Guneshli oil field and Shah Deniz gas field, Aliyev's presidency became unpopular due to vote fraud, wide-spread corruption and objection to his autocratic regime. The same harsh criticism followed the elections of former Prime Minister Ilham Aliyev, the second leader of New Azerbaijan Party after the death of his father Heydar.
The total length of Azerbaijani land borders is 2,648 km, of which Armenia constitutes 1007, Iran 756, Georgia 480, Russia - 390 and Turkey - 15. The coastline stretches for 800 km and the length of the widest area of the Azerbaijani section of Caspian Sea is 456 km. The territory of Azerbaijan extends 400 km from north to south, and 500 km from west to east. The three mountain ranges are the Greater and Lesser Caucasus, and the Talysh Mountains, together covering approximately 40% of the country. The highest peak of Azerbaijan is mount Bazardüzü (4,466 m), while the lowest point lies in the Caspian Sea (-28 m). Nearly half of all the mud volcanoes on Earth are concentrated in Azerbaijan.
The main water sources are the surface waters. However, only 24 of the 8,350 rivers are greater than 100 km in length. All the rivers drain into the Caspian Sea in the east of the country. The largest lake is Sarısu (67 km²) and the longest river is Kur (1,515 km), which is transboundary. Azerbaijan's four main islands in the Caspian Sea have a combined area of over thirty square kilometers.
Nine out of eleven existing climate zones are present in Azerbaijan. Both the absolute minimum temperature (-33 °C (-27.4 °F)) and the absolute maximum temperature (+46 °C (114.8 °F)) were observed in Julfa and Ordubad. The maximum annual precipitation falls in Lankaran (1,600 to 1,800 mm) and the minimum in Absheron (200 to 350 mm).
The main areas of plant diversity in Azerbaijan are the highlands of Nakhchivan (60% of the species occur here), the Kura-Araz plain (40%), the Davachi-Quba region east of the Greater Caucasus (38%), the centre of the Lesser Caucasus (29%), Gobustan (26.6%), the Lenkoran region in the Talysh Mountains (27%) and the Absheron region (22%). Northern-eastern slopes of the Great Caucasus, the northern, northern-eastern, and eastern slopes of the Lesser Caucasus and Talysh Mountains are deemed to be vast forest areas of Azerbaijan.
Endemics include over 400 species of plants (of which around 16 species of Caspian algae), seven reptiles and perches from fifteen species and six sub-species of Gobiidae. Most of the endemic freshwater fish belongs to Cypriniformes. However there are no strictly endemic mammals. The major cause of biodiversity loss in Azerbaijan is the decrease in natural environments.
The structural formation of Azerbaijan's political system was completed by the acceptance of the new Constitution on 12 November 1995. The state symbols of the Azerbaijan Republic are, according to the Article 23 of Constitution, the flag, the coat of arms and the national anthem. The state power in Azerbaijan is limited only by law for internal issues, but for international affairs is additionally limited by the provisions of international agreements.
The government of Azerbaijan is based on the separation of powers among the legislative, executive and judicial branches. The legislative power is held by the unicameral National Assembly and the Supreme National Assembly in the Nakhchevan Autonomous Republic. Parliamentary elections are held every five years, on the first Sunday of November. The accuracy of the election results are checked and confirmed by the Constitutional Court. The laws enacted by the National Assembly, unless specified otherwise come into effect from the day of their publication. The executive power is carried out by the president, who is elected for a 5 year term by direct elections. The president is authorized to form the Cabinet of Ministers, an inferior executive body, subordinated to him. The Cabinet of Ministers of Azerbaijan consists primarily of the Prime Minister, his Deputies and Ministers. The president does not have the right to dissolve the National Assembly, but has the right to veto its decisions. To override the presidential veto, the parliament must have a majority of 95 votes. The judicial power is vested in the Constitutional Court, Supreme Court and the Economic Court. The President nominates the judges in these courts.
The Security Council is the deliberative body under the president and he organizes it according to the Constitution. It was established on 10 April 1997. The administrative department is not a part of the president's office, but manages the financial, technical and pecuniary ensuring of activity of both the president and his office.
The short-lived Azerbaijan Democratic Republic succeeded in establishing diplomatic relations with six countries, sending diplomatic representatives to Germany and Finland. The process of international recognition of Azerbaijan's independence from the collapsing Soviet Union lasted roughly one year. The last country, Bahrain recognized Azerbaijan on 6 November 1996. Full diplomatic relations, including mutual exchanges of missions, were first established with Turkey, Pakistan, the United States and Iran.
Azerbaijan has diplomatic relations with 158 countries so far and holds membership in 38 international organizations. It holds observer status in the Non-Aligned Movement and World Trade Organization and is a correspondent at the International Telecommunication Union. The Azerbaijani diaspora is represented in 36 countries, dozens of ethnic minorities centers in turn are functioning inside the country (German cultural society "Karelhaus", Slavic cultural center, Azerbaijani-Israeli community, Kurdish cultural center, International Talysh Association, Lezgin national center "Samur", Azerbaijani-Tatar community, Crimean Tatars society, etc.). On 9 May 2006 Azerbaijan was elected as one the members of the newly established Human Rights Council by the United Nations General Assembly. The term of office begun on 19 June 2006.
Foreign policy priorities of Azerbaijan include: first of all, the restoration of its territorial integrity, elimination of the consequences of the loss of Nagorno-Karabakh and seven other regions of Azerbaijan, development of good-neighbourly and mutually advantageous relations with neighbouring countries; promotion of security and stability in the region; integration into European and Transatlantic security and cooperation structures, promotion of transregional economic, energy and transportation projects. The Azeri Government, in late 2007, stated that if a comprehensive peace treaty is not signed with Armenia in 2008, then Azerbaijan will adopt military solutions to the conflict involving the Karabakh enclave. The Government is in the process of increasing its military budget as its oil and gas revenues bring a torrent of cash into its coffers. Furthermore, economic sanctions by Turkey along the west, and by Azerbaijan itself along the east, have combined to greatly erode Armenia's economy, leading to steep prices for basic commodities and a great decline in the Armenian state revenues.
Azerbaijan is an active member of international coalitions fighting international terrorism. The country is contributing to peacekeeping efforts in Kosovo, Afghanistan and Iraq. Azerbaijan is an active member of NATO's “Partnership for Peace” program. It also maintains good relations with the European Union, and could potentially one day apply for membership. see Azerbaijan and the European Union.
The Armed Forces of the Republic of Azerbaijan were created according to the Law of the Republic of Azerbaijan on the Armed Forces of Azerbaijan on 9 October 1991. Initially, the equipment and facilities were those of the Soviet Fourth Army. The Armed Forces have four branches: Land Forces, Air Force and Air Defence Force (a united branch), Navy and Peacekeeping Forces. Besides the Armed Forces there are several militarily sub-groups that can be involved in state defence when needed. These are the Interior Troops of the Ministry of Internal Affairs and forces of the State Border Service, which includes the Coast Guard as well. The National Guard operating as a semi-independent entity of the Azerbaijan Defense Department.
Azerbaijan adheres to the Treaty on Conventional Armed Forces in Europe and has signed all major international arms and weapons treaties. Azerbaijan closely cooperates with NATO in programs such as Partnership for Peace and Individual Partnership Action Plan. Azerbaijan has deployed 150 of its Peacekeeping Forces in Iraq and another 100 in Afghanistan.
In 2008 the military expenditures of Azerbaijan reached $2 billion USD. Azerbaijan has its own Defense Industry, which manufactures small arms, artillery systems, various military vehicles and military planes and helicopters.
After gaining independence in 1991, Azerbaijan became a member of the International Monetary Fund, the World Bank, the European Bank for Reconstruction and Development, the Islamic Development Bank and the Asian Development Bank. The banking system of Azerbaijan consists of the National Bank of Azerbaijan, commercial banks and non-banking credit organizations. The National Bank was created in 1992 based on the Azerbaijan State Savings Bank, an affiliate of the former State Savings Bank of the USSR. The National Bank serves as Azerbaijan's central bank, empowered to issue the national currency, the Azerbaijani manat, and to supervise all commercial banks. Two major commercial banks are the state-owned International Bank of Azerbaijan and the United Universal Joint-Stock Bank.
Pushed up by spending and demand growth, the 2007 Q1 inflation rate reached 16.6%. Nominal incomes and monthly wages climbed 29% and 25% respectively against this figure, but price increases in non-oil industry encouraged inflation in the country. Azerbaijan shows some signs of the so-called "Dutch disease" because of the fast growing energy sector, which causes inflation.
Two thirds of Azerbaijan is rich in oil and natural gas. The region of the Lesser Caucasus accounts for most of the country's gold, silver, iron, copper, titanium, chromium, manganese, cobalt, molybdenum, complex ore and antimony. In September 1994, a 30-year contract was signed between the State Oil Company of Azerbaijan Republic (SOCAR) and 13 oil companies, among them Amoco, BP, Exxon, LUKoil, and Statoil. As Western oil companies are able to tap deepwater oilfields untouched by the Soviet exploitation, Azerbaijan is considered one of the most important spots in the world for oil exploration and development. Meanwhile the State Oil Fund was established as an extra-budgetary fund to ensure the macroeconomic stability, transparency in the management of oil revenue, and the safeguarding of resources for future generations.
At the beginning of 2007 there were 4,755,100 hectares of utilized agricultural area. In the same year the total wood resources counted 136 million m³. Azerbaijan's agricultural scientific research institutes are focused on the meadows and pastures, the horticulture and subtropical crops, the green vegetables, the viticulture and wine-making, the cotton growing and the medicinal plants. In some lands it is profitable to grow grain, potatoes, sugar beet, cotton and tobacco. The Caspian fishing industry is concentrated on the dwindling stocks of sturgeon and beluga. In 2002 the Azerbaijani merchant marine had 54 ships.
Some part of most products before imported from abroad has begun to be produced locally (among them are Coca Cola by Coca Cola Bottlers LTD, beer by Baki-Kastel, parquet by Nehir and oil pipes by EUPEC Pipe Coating Azerbaijan).
Azerbaijan is also an important economic hub in terms of the raw materials transportation. The Baku-Tbilisi-Ceyhan pipeline (BTC) became operational in May 2006 and stretches over 1,774 kilometers through the territory of Azerbaijan (440 km), Georgia (260 km) and Turkey (1114 km). The BTC is designed to transport up to 50 million tons of crude oil annually and carries oil from the Caspian Sea oilfields to global markets. The South Caucasus Pipeline, also stretching through the territory of Azerbaijan, Georgia and Turkey, became operational in the end of 2006 and offers additional gas supply to European market from the Shah Deniz gas field. It is expected to produce up to 296 billion cubic metres of natural gas per year. Azerbaijan also plays a major role in the EU-sponsored Silk Road Project.
In 2008, Azerbaijan was cited as top 10 reformer by the World Bank's Doing Business report;
Azerbaijan led the world as the top reformer in 2007/08, with improvements on seven out of 10 indicators of regulatory reform. Azerbaijan started operating a one-stop shop in January 2008 that halved the time, cost, and number of procedures to start a business. Business registrations increased by 40% in the first 6 months. Azerbaijan also eliminated the minimum loan cutoff of $1,100, more than doubling the number of borrowers covered at the credit registry. Also, taxpayers can now file and pay their taxes online. Azerbaijan’s extensive reforms moved it far up the ranks, from 97 to 33 in the overall ease of doing business.
In 2002 Azerbaijan led the way in per capita mobile phone use within the CIS. Public pay phones are available for local calls and require a purchase token from the telephone exchange or some shops and kiosks. Tokens allow a call of indefinite duration. As of 2005, there were 1,091,400 main telephone lines and 408,000 internet users. There are Three GSM: Azerfon (NarMobile), Bakcell and Azercell mobile network operators and One CDMA.
Broad gauge railways in 2005 stretched for 2,957 km and electrified railways numbered 1,278 km. The number of airports in 2006 reached thirty six, there was also one heliport.
From the total population as of April, 2006 there were 4,380,000 (nearly 51%) city dwellers and a rural population of 4,060,000 (49%). 51% of the total population were female. The gender ratio for total population in that year was therefore 0.94 males per female.
2006 population growth rate was 0.66%, compared to 1.14% worldwide. A significant factor restricting the population growth is rather a high level of migration. In 2005 for instance 1,342 men and 1,564 women left the country due to labour migration. In 2006 Azerbaijan saw migration of -4.38/1,000 persons. The highest morbidity in 2005 was among respiratory diseases (806.9 diseases per 10,000 of total population). The highest 2005 morbidity for infectious and parasitic diseases was noted among influenza and acute respiratory infections (4168,2 per 100,000 population). 2007 estimate for total life expectancy is 66 years, 70.7 years for women and 61.9 for men.
Of the country population according to result population last list (1999) : 86.6% Azeris , 4.9% Talysh, 2.2% Lezgins, 1.8% Russians,1.5% Armenians, 0.6% Avars, 0.5% Turks, 0.4% Tatars, 0.4% Ukrainians, 0.2% Tsakhur, 0.2% Georgians, 0.13% Kurds, 0.13% Tats, 0.1% Jews, 0.05% Udins and other 0.2%
Azerbaijani is a Turkic language which belongs to the Altaic family, and is intelligible, to varying degrees, with Turkish.
The language is written with the Latin alphabet today, but was earlier written in the Arabic and Cyrillic alphabets (Hatcher 2008). The changes in alphabet have been largely molded by religious and political forces.
According to official figures, between 93.4% and 96% of the population is Muslim, of which 85% are Shia and 15% Sunni. Christians compose of 3 to 4% of the population, of which most are Russian and Armenian Orthodox. In 2003 there were 250 Roman Catholics. Other Christian denominations as of 2002 include Lutherans, Baptists and Molokans. There are also Jewish, Bahá'í, Hare Krishna and Jehovah's Witnesses communities, as well as adherents of the Nehemiah Church, Star in the East Church and the Cathedral of Praise Church. Zoroastrianism had a long history in Azerbaijan, evident in sites such as the Fire Temple of Baku, and along with Manichean. It is estimated that the Zoroastrian community of Azerbaijan numbers around the 2,000.
Azerbaijan folk consists of Azerbaijanis, the representative part of society, as well as of nations and ethnic groups, compactly living in various areas of the country. There are radio broadcasts in Kurdish, Lezgin, Talysh, Georgian, Russian and Armenian languages, which are financed from the state budget. The local radio station in Balakan organizes broadcasts in the Avar language and in Khachmaz also in Tat. In Baku several newspapers are published in Russian, Kurdish (Dengi Kurd), Lezgin (Samur) and Talysh languages. Jewish society "Sokhnut" publishes the newspaper Aziz.
Meykhana and Mugham are one of the many musical traditions of Azerbaijan. During Mugam, the singers have to transform their emotions into singing and music. Mugham singer Alim Qasimov is revered as one of the five best singers of all time. Meykhana is a kind of traditional Azeri distinctive folk unaccompanied song, usually performed by several people improvising on a particular subject.
Among national musical instruments there are fourteen string instruments, eight percussion instruments and six wind instruments.
Azerbaijan national and traditional dress, are the Chokha and Papakhi.
Azerbaijan made its debut appearance at the Eurovision Song Contest 2008, and placed 8th among 43 contestants.
Entries, submitted on the UNESCO World Heritage tentative list include the Gobustan State Reserve, the Fire Temple of Baku, the Momine Khatun Mausoleum and the Khan Palace in Sheki.