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Guide to Azerbaijan

Introduction

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 571,000 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.

Geography

Location: Southwestern Asia, bordering the Caspian Sea, between Iran and Russia, with a small European portion north of the Caucasus range
Geographic coordinates: 40 30 N, 47 30 E
Map references: Asia
Area: total
Area - comparative: slightly smaller than Maine
Land boundaries: total
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 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
Natural resources: petroleum, natural gas, iron ore, nonferrous metals, alumina
Land use: arable land
Irrigated land: 14,550 sq km (1998 est.)
Natural hazards: droughts
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
Environment - international agreements: party to
Geography - note: both the main area of the country and the Naxcivan exclave are landlocked

People

Population: 7,911,974 (July 2005 est.)
Age structure: 0-14 years
Median age: total
Population growth rate: 0.59% (2005 est.)
Birth rate: 20.4 births/1,000 population (2005 est.)
Death rate: 9.86 deaths/1,000 population (2005 est.)
Net migration rate: -4.64 migrant(s)/1,000 population (2005 est.)
Sex ratio: at birth
Infant mortality rate: total
Life expectancy at birth: total population
Total fertility rate: 2.44 children born/woman (2005 est.)
HIV/AIDS - adult prevalence rate: less than 0.1% (2003 est.)
HIV/AIDS - people living with HIV/AIDS: 1,400 (2003 est.)
HIV/AIDS - deaths: less than 100 (2001 est.)
Nationality: noun
Ethnic groups: Azeri 90.6%, Dagestani 2.2%, Russian 1.8%, Armenian 1.5%, other 3.9% (1999 census) note
Religions: Muslim 93.4%, Russian Orthodox 2.5%, Armenian Orthodox 2.3%, other 1.8% (1995 est.) note
Languages: Azerbaijani (Azeri) 89%, Russian 3%, Armenian 2%, other 6% (1995 est.)
Literacy: definition

Government

Country name: conventional long form
Government type: republic
Capital: Baku (Baki)
Administrative divisions: 59 rayons (rayonlar; rayon - singular), 11 cities* (saharlar; sahar - singular), 1 autonomous republic** (muxtar respublika)
Independence: 30 August 1991 (from Soviet Union)
National holiday: Founding of the Democratic Republic of Azerbaijan, 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
Legislative branch: unicameral National Assembly or Milli Mejlis (125 seats; members elected by popular vote to serve five-year terms) elections
Judicial branch: Supreme Court
Political parties and leaders: Azerbaijan Popular Front or APF [Ali KARIMLI, leader of "Reform" faction; Mirmahmud MIRALI-OGLU, leader of "Classic" faction]; Civic Solidarity Party or CSP [Sabir RUSTAMKHANLY]; Civic Union Party [Ayaz MUTALIBOV]; Communist Party of Azerbaijan or CPA [Ramiz AHMADOV]; Compatriot Party [Mais SAFARLI]; Democratic Party for Azerbaijan or DPA [Rasul QULIYEV, chairman]; Justice Party [Ilyas ISMAILOV]; Liberal Party of Azerbaijan [Lala Shovkat HACIYEVA]; Musavat [Isa GAMBAR, chairman]; New Azerbaijan Party or NAP [vacant]; Party for National Independence of Azerbaijan or PNIA [Etibar MAMMADLI, chairman]; Social Democratic Party of Azerbaijan or SDP [Araz ALIZADE and Ayaz MUTALIBOV] note
Political pressure groups and leaders: Sadval, Lezgin movement; self-proclaimed Armenian Nagorno-Karabakh Republic; Talysh independence movement; Union of Pro-Azerbaijani Forces (UPAF)
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, WTO (observer)
Diplomatic representation in the US: chief of mission
Diplomatic representation from the US: chief of mission
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

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.
GDP (purchasing power parity): $30.01 billion (2004 est.)
GDP - real growth rate: 9.8% (2004 est.)
GDP - per capita: purchasing power parity - $3,800 (2004 est.)
GDP - composition by sector: agriculture
Labor force: 5.09 million (2004 est.)
Labor force - by occupation: agriculture and forestry 41%, industry 7%, services 52% (2001)
Unemployment rate: 1.2% (official rate) (2004 est.)
Population below poverty line: 49% (2002 est.)
Household income or consumption by percentage share: lowest 10%
Distribution of family income - Gini index: 36 (1995)
Inflation rate (consumer prices): 4.6% (2004 est.)
Investment (gross fixed): 65.1% of GDP (2004 est.)
Budget: revenues
Public debt: 18.9% of GDP (2004 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: 4% (2004 est.)
Electricity - production: 17.55 billion kWh (2002)
Electricity - production by source: fossil fuel
Electricity - consumption: 17.37 billion kWh (2002)
Electricity - exports: 505 million kWh (2002)
Electricity - imports: 1.558 billion kWh (2002)
Oil - production: 312,800 bbl/day (2004 est.)
Oil - consumption: 140,000 bbl/day (2001 est.)
Oil - exports: NA
Oil - imports: NA
Oil - proved reserves: 589 million bbl (1 January 2002)
Natural gas - production: 5.72 billion cu m (2001 est.)
Natural gas - consumption: 6.72 billion cu m (2001 est.)
Natural gas - exports: 0 cu m (2001 est.)
Natural gas - imports: 1 billion cu m (2001 est.)
Natural gas - proved reserves: 62.3 billion cu m (1 January 2002)
Current account balance: $-2.899 billion (2004 est.)
Exports: $3.168 billion f.o.b. (2004 est.)
Exports - commodities: oil and gas 90%, machinery, cotton, foodstuffs
Exports - partners: Italy 26.6%, Czech Republic 11.9%, Germany 8.1%, Indonesia 6.4%, Romania 6.2%, Georgia 6%, Russia 5.3%, Turkey 5.2%, France 4.1% (2004)
Imports: $3.622 billion f.o.b. (2004 est.)
Imports - commodities: machinery and equipment, oil products, foodstuffs, metals, chemicals
Imports - partners: Russia 16.1%, UK 12.5%, Turkey 10.5%, Germany 7.8%, Ukraine 5.6%, Netherlands 4.9%, US 4.1%, Italy 4% (2004)
Reserves of foreign exchange and gold: $875 million (2004 est.)
Debt - external: $1.832 billion (2004 est.)
Economic aid - recipient: ODA, $140 million (2000 est.)
Currency (code): Azerbaijani manat (AZM)
Currency code: AZM
Exchange rates: Azerbaijani manats per US dollar - 4,913.48 (2004), 4,910.73 (2003), 4,860.82 (2002), 4,656.58 (2001), 4,474.15 (2000)
Fiscal year: calendar year

Communications

Telephones - main lines in use: 923,800 (2002)
Telephones - mobile cellular: 870,000 (2002)
Telephone system: general assessment
Radio broadcast stations: AM 10, FM 17, shortwave 1 (1998)
Radios: 175,000 (1997)
Television broadcast stations: 2 (1997)
Televisions: 170,000 (1997)
Internet country code: .az
Internet hosts: 586 (2004)
Internet Service Providers (ISPs): 2 (2000)
Internet users: 300,000 (2002)

Transportation

Railways: total
Highways: total
Pipelines: gas 4,451 km; oil 1,518 km (2004)
Ports and harbors: Baku (Baki)
Merchant marine: total
Airports: 50 (2004 est.)
Airports - with paved runways: total
Airports - with unpaved runways: total
Heliports: 2 (2004 est.)

Military

Military branches: Army, Navy, Air and Air Defense Forces
Military service age and obligation: 18 years of age for compulsory and voluntary military service; law passed December 2001 raises maximum conscription age from 28 to 35 (December 2001)
Manpower available for military service: males age 18-49
Manpower fit for military service: males age 18-49
Manpower reaching military service age annually: males
Military expenditures - dollar figure: $121 million (FY99)
Military expenditures - percent of GDP: 2.6% (FY99)

Transnational Issues

Disputes - international: Armenia supports ethnic Armenian secessionists in Nagorno-Karabakh and since the early 1990s has militarily occupied 16% of Azerbaijan - Organization for Security and Cooperation in Europe (OSCE) continues to mediate dispute; 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; Azerbaijan seeks transit route through Armenia to connect to Naxcivan exclave; 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; bilateral talks continue with Turkmenistan on dividing the seabed and contested oilfields in the middle of the Caspian; Azerbaijan and Georgia cannot resolve the alignment of their boundary at certain crossing areas
Refugees and internally displaced persons: IDPs
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
Last updated: 20 October, 2005

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Source: Global Historical Climatology Network
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