Overview

In the ten years since regaining independence, Azerbaijan has made only an incomplete transition to a democratic polity and a market economy. The democratic process is nominally in place, but supporting traditions and institutions are still in a developmental phase. The governance process is still authoritarian, but not oppressive by regional standards. The country has been unable to take advantage of its substantial petroleum resource base, and some 60% of Azerbaijanis live below the poverty line. The dispute with Armenia over the Nagorno-Karabakh enclave remains unresolved. As a result, about 20% of Azerbaijan is occupied by Armenians and some 800,000 Azerbaijanis are refugees or internally displaced.

Azerbaijan in Action

Samed Vurgun Community, Agjabedi, Azerbaijan: Self-Reliance Built Through USAID Support

The past fifteen years have been a very challenging time for the people of Azerbaijan. Located between Russia and Iran in the heart of the Caucasus region, the country has long been a crossroads of commerce and culture. Shortly after gaining independence from the Soviet Union in October 1991, Azerbaijan was soon drawn into a devastating three-year territorial conflict with neighboring Armenia over Nagorno Garabagh, a mountainous region in the west of the country. When hostilities ceased in early 1994, Armenian forces occupied Nagorno-Karabagh and a wide swath of surrounding area, accounting for nearly 20 percent of Azerbaijan’s territory. Read More ...