AZERBAIJAN
GEOGRAPHY
Azerbaijan is a country in the Caucasus region, situated at the juncture of Europe and Western Asia. Three physical features dominate Azerbaijan: the Caspian Sea, whose shoreline forms a natural boundary to the east; the Greater Caucasus mountain range to the north; and the extensive flatlands at the country’s center. About the size of Portugal or the US state of Maine, Azerbaijan has a total land area of approximately 86,600 square kilometers, less than 1% of the land area of the former Soviet Union. Of the three Transcaucasian states, Azerbaijan has the greatest land area. Special administrative subdivisions are the Nakhchivan Autonomous Republic, which is separated from the rest of Azerbaijan by a strip of Armenian territory, and the Nagorno-Karabakh Autonomous Region, entirely within Azerbaijan. The status of Nagorno-Karabakh is disputed. Located in the region of the southern Caucasus Mountains, Azerbaijan borders the Caspian Sea to the east, Georgia and Russia to the north, Iran to the south, and Armenia to the southwest and west. A small part of Nakhchivan also borders Turkey to the northwest. The capital of Azerbaijan is the ancient city of Baku, which has the largest and best harbor on the Caspian Sea and has long been the center of the republic’s oil industry
HISTORY
The first settlements in Azerbaijani territory date back to the Stone Age. Around 550 BC the current Azerbaijan was conquered by the Achaemenids and subsequently came under the control of Alexander the Great, the Seleucids, Rome, the Greeks and the Sasanians. In the fourth century Christianity was officially declared a state religion. The state was destroyed and conquered by the Arabs who forced the Caucasian Albanians to convert to Islam. The dominions of different dynasties followed one another, the Empire of the Selgiudichidae, the state of the Jalayirids and the Empire of Tamerlane. During the latter the local Azerbaijani dynasty of the Shirvanshakhs constituted a vassal state of the Empire. At the death of Tamerlano two states were born: Kara Koyunly and Ak Koyunlu. In ‘500 the territory of Azerbaijan, with the fall of the Safavids, is divided into various occupied khanates of the Russian Empire. The Treaty of Turkmenchay (2 February 1828) the territory is divided between Russia and Persia. At the end of the First World War, Azerbaijan formed the Federative Democratic Republic of Transcaucasia with Armenia and Georgia, which was dissolved in 1918. The Democratic Republic of Azerbaijan, born following the dissolution of the Transcaucasian Republic, was the first Muslim parliamentary republic in the world. In March 1922, the Red Army conquered the capital and the Azerbaijani territory was joined to the Georgian and Armenian territory to form the Transcaucasian Soviet Federative Soviet Socialist Republic, which in 1936 was divided into Georgian RSS, Armenian RSS and Azera RSS. The Azerbaijan RSS provided almost all the oil used by the Soviet Union during World War II; for this reason Hitler tried several times in vain to occupy Baku. The beginning, in 1986, of the glasnost policy on the part of Mikhail Michail Gorbachev caused economic and political upheavals and ethnic clashes.In January 1990, known as “black January”, the army entered Baku, where thousands of Azeris were demonstrating for independence, and opened fire; the official budget is 130 dead and 700 wounded, but thousands of deaths are reported unofficially. On October 18, 1991, Azerbaijan was officially an independent state, but from 1992 to 1994 it was the scene of the Nagorno-Karabakh War, due to which it lost one-sixth of its territory.
SOCIAL CULTURE AND RELIGION
Linguistic Affiliation.
Azeri (also referred to as Azeri Turkish) or Azerbaijani is a Turkic language in the Altaic family; it belongs to the southwestern Oguz group, together with Anatolian Turkish, Turkmen, and Gagauz. Speakers of these languages can understand each other to varying degrees, depending on the complexity of the sentences and the number of loan words from other languages. Russian loan words have entered Azeri since the nineteenth century, especially technical terms.
Classes and Castes.
The urban merchant class and industrial bourgeoisie of the pre-Soviet era lost their wealth under the Soviet Union. The working class in the cities usually retained rural connections. The most significant social stratification criterion is an urban versus rural background, although the educational opportunities and principles of equality introduced in the Soviet period altered this pattern to some extent. Russians, Jews, and Armenians were mostly urban white-collar workers. For Azerbaijanis, Tolerance. Azerbaijan follows Shia Islam, the same as neighbouring Iran. Nothing unusual here. But, they consider Sunni Turkey to be their brothers. The country has good relationships with Israel, something unheard of in the Islamic world. And that’s not all. After centuries of influence from Russia, many Azerbaijanis tend to be pro-Russian. The same people are pro-Western too. In short, Azerbaijan culture seems to have a tantalising blend of the best of everything.
In Azerbaijan you can experience some of the world’s best hospitality. Locals go to great lengths to help, and guests are a valued commodity. Stay in a homestay, and hosts treat guests with endless cups (or armuda) of tea, snacks and anything else. Ask for directions, and they might show rather than tell. The younger ones who speak some English are often happy to chat about their country. Giving good hospitality is deeply ingrained in Azerbaijani culture. A positive legacy of almost two centuries of Russian rule is the way men respect women. In 1918, Azerbaijan became one the first countries to give women the right to vote the first in the Islamic world. Women also hold high positions in government and serve in the military.
POLITICS
In the last 20 years the political situation in the country has been characterized by the conflict in the Azeri region of Nagorno Karabakh (majority of Armenian population). Despite the armistice treaty concluded in 1994 and the considerable efforts by the international community for a peaceful solution to the conflict, violent clashes with dead and wounded regularly occur in the border area between Azerbaijan and Armenia and along the ceasefire line. The tensions become bitter periodically. Thus, at the beginning of April 2016, the fighting in the Nagorno-Karabakh region caused numerous casualties even among civilians. The country’s political situation is stable for the rest. The risk of terrorist attacks in Azerbaijan cannot be excluded. The terrorism and kidnapping column pays attention to the dangers of terrorism.
ECONOMY
The economy of Azerbaijan depends on the agricultural sector and the mining industry, including the extraction of copper, salt, lead and oil. The main Azerbaijani crops are citrus fruits, rice, tobacco, tea, cotton, cereals, fruit and corn. Azerbaijan has a poorly diversified economy and its growth depends on the oil sector, which represents about 35% of GDP after the weak recovery in 2017. A real growth started around 1.4% in 2018, driven by the rise in oil prices, which provided some momentum for new investments and to slightly increase oil production. According to the country’s statistics, in the first half of 2019, the gross domestic product grew by 2.2% compared to 1.1% in the same period of 2018, recording a marked increase in industrial production. This trend should also be maintained for the four-year period 2019-23. Despite the forecast of a constant decline in oil production, due to the maturity of the main fields, the hydrocarbon sector will continue to drive growth thanks to the increase in gas production from the Shah Deniz II field (+ 25% in the first quarter of 2019).
IMPORT/EXPORT
In 2018 Azerbaijan was the number 89 economy in the world in terms of GDP (current US$), the number 73 in total exports, the number 91 in total imports, the number 111 economy in terms of GDP per capita (current US$) and the number 91 most complex economy according to the Economic Complexity Index (ECI)
In 2018, Azerbaijan exported a total of $19.9B, making it the number 73 exporter in the world. During the last five reported years the exports of Azerbaijan have changed by -$9.04B from $29B in 2013 to $19.9B in 2018.
The most recent exports are led by Crude Petroleum ($16.1B), Petroleum Gas ($1.52B), Refined Petroleum ($524M), Tomatoes ($177M), and Gold ($151M). The most common destination for the exports of Azerbaijan are Italy ($5.99B), Turkey ($1.85B), Israel ($1.31B), Czechia ($954M), and Germany ($820M). In 2018 Azerbaijan imported $11.9B, making it the number 91 trade destination in the world. During the last five reported years the imports of Azerbaijan changed by -$3.33B from $15.2B in 2013 to $11.9B in 2018.
The most recent imports of Azerbaijan are led by Gold ($1.29B), Cars ($437M), Iron Pipes ($388M), Petroleum Gas ($313M), and Gas Turbines ($282M). The most common import partners for Azerbaijan are Russia ($1.88B), Turkey ($1.55B), United Kingdom ($1.3B), China ($674M), and Germany ($603M).
INTERNATIONAL RELATIONS
The Republic of Azerbaijan is a member of the United Nations, the Non-Aligned Movement, the Organization for Security and Cooperation in Europe, NATO’s Partnership for Peace, the Euro-Atlantic Partnership Council, the World Health Organization, the European Bank for Reconstruction and Development; the Council of Europe, CFE Treaty, the Community of Democracies; the International Monetary Fund; and the World Bank.
The major trends in the foreign relations of the Republic of Azerbaijan toward both global and regional powers active in the Caucasus area. External variables are categorized depending on their original nature into two groups: global and regional. The former category includes global players such as Moscow and Washington, while the latter category rival regional players, namely Ankara and Tehran. Azerbaijan has formal involvement with senior ex-U.S. government officials including James Baker and Henry Kissinger, as they serve on the Honorary Council of Advisors of the U.S.-Azerbaijan Chamber of Commerce (USACC). USACC is co-chaired by Tim Cejka, President of ExxonMobil and Reza Vaziri, President of R.V. Investment Group and Chairman of the Anglo Asian Mining Plc.