Global View: Azerbaijan

The Republic of Azerbaijan, with its capital Baku, is located in the South Caucasus on almost 34,000 square miles of territory that border fellow Caucasus nations Georgia and Armenia, as well as Russia and Iran.

Azerbaijan's population of nearly 9 million grew at a rate of just over 1 percent last year, and is made up primarily of Azeris with marginal numbers of Russians, Armenians, and other ethnic groups thrown into the mix. The country is overwhelmingly Muslim and the primary language is Azerbaijani.

Government

Azerbaijan is a republic, with a president, prime minister, and Council of Ministers in the executive branch, a unicameral parliament in the legislative branch, and a supreme court in the judiciary. Independence from the Soviet Union came in 1991, and a constitution was approved in late 1995.

The executive branch holds significant power in the government, and the legislative branch, whose 125 members are elected to five year terms, has limited independence. The judiciary is characterized by the U.S. State Department as "nominally" independent.

Economy

Azerbaijan's gross domestic product grew at nearly 25 percent last year, although both the International Monetary Fund and the Azerbaijani government estimate growth this year will be at a still very healthy 16 percent.

High unemployment and inflation rates plague the economy, though, which is based on agriculture and several types of industry, including petroleum and natural gas, steel, and oilfield equipment. Azerbaijan has had a difficult time transitioning from a Soviet-style centrally planned economy. Primary trade partners include Italy, Russia, Turkey, Israel, the United States, Iran, former Soviet states, and some European Union member countries.

Azerbaijan Abroad

Azerbaijan participates in NATO's Partnership for Peace and is a member of the United Nations and the Organization for Security and Cooperation in Europe. In addition, Azerbaijan participates in the Euro-Atlantic Partnership, the World Health Organization, the Council of Europe, the World Bank, and the International Monetary Fund.

The Cold War had hardly finished fizzling out when the United States opened an embassy in Baku in March 1992. The United States provides millions of dollars to Azerbaijan to support humanitarian, democracy building, and reform efforts throughout the country. Azerbaijan has most favored nation status for trade, and several U.S. companies operate in Azerbaijan's oil sector.

In addition, the United States is active in trying to find a solution to the Nagorno-Karabakh crisis between Azerbaijan and Armenia.

Source: U.S. Department of State