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NON-OIL SECTOR Following this initial recovery after the collapse of economic regime established in former Soviet Union, the Azerbaijani economy is now poised to meet the challenges of the transition to a market economy, while at the same time, developing oil resources that will provide the engine for long-term sustainable growth and rising per capita incomes across all segments of the population. The government is aware of the potential dangers of building an economy that is overly dependent on a single industry or economic sector — oil — and the risk that this industry could inadvertently hinder the development of other sectors of the economy. The goal of Azerbaijan’s economic policy is to achieve balanced growth. To attain this goal, Azerbaijan has been implementing economic reforms supported by advice and the financial resources of the International Monetary Fund (IMF), the World Bank and other bilateral and multilateral creditors. The government’s broad program of reforms includes the following: � • Liberalization of prices; • Widespread cuts in government subsidies; • Tight budgetary and fiscal controls to limit inflation; • Restructuring the banking sector to improve transparency; • Modernizing the tax structure; • Instituting a land reform program; and • Privatizing state-owned assets. During the years the reforms have been in place, Azerbaijan’s economy has been undergoing a structural shift, in which services, transportation, communications, trade and construction sectors are rapidly expanding. Macroeconomic stability was regained and inflation has been brought to lower level. Investment activity in both oil and non-oil sector of the economy have ensured the growth of the economy. As the result of recent achievements international rating agency Fitch IBCA has upgraded Azerbaijan’s long-term foreign exchange credit rating to "BB-”. Privatization process as an important part of structural reforms in the country has continued. As the result of the first stage of privatization by January 2000, 21544 small companies and units have been privatized and 996 joint-stock companies has been established. By March 2001 this number was 23539 and 1230 correspondently. Since the commencement of privatization process by the year 2002, 33700 companies have been privatized. |
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ECONOMIC OVERVIEW
Introduction Azerbaijan is an industrial-agricultural country rich with natural resources including oil, natural gas, mineral resources, cotton and large areas of farmland. As a result, the country’s economy is built on manufacturing, mining and agriculture. Besides oil and gas, the reserves of iron ore, zinc ore, molybdenum ore, alunite, rock salt, gypsum, lime stone, bitumen, clay, and marble are used in industrial exploitation, including, hydro-electric power resources. The agriculture is specialized in the cultivation of fruits and� vegetables, fruits, cotton, tobacco, subtropical cultures, silkworm and sheep breeding. |
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Karabakh             |
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"The word "Karabakh" itself, which is translated from Azerbaijani as the "Black Garden", proves that this land belongs to Azerbaijan historically. Karabakh has specific place and role in the history of Azerbaijan. The region of our country is one of the most ancient habitations in the world"... Mehriban Aliyeva, President of Heydar Aliyev Foundation, Goodwill Ambassador of UNESCO Karabakh is one of the ancient lands, not only in Azerbaijan's history, but also in the history of the world. Sites of the most ancient times have been found within its territory. In 1968 the jaw-bone of a primitive man of Azykh named azikhanthropus was found in the Azykh Cave. Presumably, Azykh men lived in the region 250-300 thousand years ago. Throughout the history Karabakh was an inseparable part of Azerbaijan. Significant changes in Karabakh history took place in the 7th-9th centuries, with the Arav Caliphate occupation and disappearance of the Albanian state from the scene. As a result of the Arab conquest, the majority of the Albanian Christian population adopted Islam, but the rest, especially the population of the Albanian highlands in Karabakh, adhered to the Christianity which had been declared as a state religion of Albania in the 4th century. After the occupation of the Northen Azerbaijani territories by Russia in the early 19th century, the process of Gregorianization and Armenianization of the Christian population of Karabakh highlands started with the liquidation of the Albanian Catholicosate by order of the Russian tsar through the pressure and repeated appeals of Echmiadzin.   |
 The Three-colored State banner in Azerbaijan was
first accepted on November 9, 1918 by the decision of the Government of
the Democratic Republic of Azerbaijan. On April 28, 1920 after the fall
of the Democratic Republic of Azerbaijan and establishment of Soviet
power it was refused from this banner in Azerbaijan. For the second time
this banner was restored by the decision of the Supreme Majlis of the
Nakchivan Autonomous Republic on November 17, 1990 and was accepted as
the State banner of the Autonomous Republic.
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Establishment of GUAM consultative forum consisting of four states took place on October 10, 1997 in Strasbourg in the course of the Council of Europe Summit, during which a Joint Communiqué of the Presidents of Ukraine, Georgia, Azerbaijan and Moldova was adopted. In this document the Presidents stressed the necessity of developing quadrilateral cooperation for promoting stability and strengthening security in <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" /><st1:place w:st="on">Europe</st1:place> on the basis of principles of respect for sovereignty, territorial integrity, inviolability of the state frontiers, democracy, rule of law and respect for human rights.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o:p></o:p> The meeting of the Presidents of GUAM member states and <st1:country-region w:st="on">Uzbekistan</st1:country-region> took place on April 24, 1999 in <st1:State w:st="on">Washington</st1:State> within the framework of the summit meeting of the Euro-Atlantic Partnership Council, where <st1:country-region w:st="on"><st1:place w:st="on">Uzbekistan</st1:place></st1:country-region> joined the above-mentioned group of states and the name of the group changed to GUUAM. In 2002 <st1:country-region w:st="on"><st1:place w:st="on">Uzbekistan</st1:place></st1:country-region> declared about the cessation of its participation in the organization and in 2005 completely ceased. <o:p></o:p> Structurally, the <st1:place w:st="on">GUAM</st1:place> comprises: <o:p></o:p> a) Council, <o:p></o:p> b) Secretariat. <o:p></o:p> The Council is the supreme body of the Organization. The Council works at the level of heads of State (<st1:City w:st="on"><st1:place w:st="on">Summit</st1:place></st1:City>), foreign ministers, national coordinators, and permanent representatives. <o:p></o:p> Permanent or provisional working and subsidiary bodies may be set up, as well as meetings of representatives of ministries and/or departments concerned may be held upon Council’s decision. <o:p></o:p> The Secretariat ensures organizational and technical support for <st1:place w:st="on">GUAM</st1:place> operation and works under the authority of the Secretary-General. <o:p></o:p> |
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Azerbaijan and OIC The 33-rd Session of The Islamic Conference Of Foreign Ministers in Baku The Organization of the Islamic Conference Baku Declaration The humanitarian assistance for Muslim World, provided by the Government of the Republic of Azerbaijan during the chairmanship of Azerbaijan in the Islamic Conference of Foreign Ministers (ICFM): - In August 2006, the Government of Azerbaijan conveyed humanitarian aid amounted to USD 100,000 to the Lebanese population suffering from the consequences of the hostilities with Israel. - Regarding the organizqtion of the OIC Ministerial Conference on the Problem of Refugees in the Muslim World, to be held in Islamabad in November 2007, the Government of Azerbaijan provided USD 50.000 to the General Secretariat in January 2007. - Following the announcment at the 33rd Session of the ICFM, the Government of Azerbaijan has transfered USD 377.000 to the Islamic Solidarity Fund in April 2007. - Being guided by the Resolution No. 3/33-C, Item (G), adopted at the 33rd Session of the ICFM, the Government of Azerbaijan has contributed USD 23.000 to the World Health Organization Global Polio Eradication Initiative in April 2007. - In May 2007, the Government of Azerbaijan has allocated USD 50.000 to the UN Office for the Coordination of Humanitarian Affairs with a view to rendering necessary humanitarian assistance to the Palestinian population. |
  Azerbaijan-NATO cooperation goes back to March 1992 when Azerbaijan together with the other 37 countries, joined the North Atlantic Cooperation Council (NACC) that gathered in itself at the time 16 Alliance members, 15 states of the former USSR and the other countries of the former Warsaw Pact. After the Partnership for Peace was introduced in January 1994 as a major initiative by NATO aimed at enhancing stability and security throughout Euro-Atlantic area, Azerbaijan was in the first wave of the countries that responded to the invitation to join the Program by signing the so-called Framework Agreement on 4 May 1994. Azerbaijan's firm decision to join PfP was followed by handing over of Presentation Document of the Republic of Azerbaijan to NATO in 1996 where goals and objectives pursued by Azerbaijan in cooperation with NATO and contribution committed by Azerbaijan to NATO-led peacekeeping operations were enshrined comprehensively. Partnership for Peace has proved to be very successful in developing and promoting mechanisms for defense cooperation and military interoperability between NATO and Azerbaijan. Most notably PfP has developed practical tools allowing NATO and Partner nations to engage in joint crisis management and peacekeeping operations. Azerbaijan, looking positively on enhanced representation of the partner nations at NATO has established its diplomatic mission to this organization. At present time Mission of the Republic of Azerbaijan to NATO consisting of diplomatic staff and Military Representative to NATO Military Committee represents Azerbaijan at the NATO Headquarters and plays a key role in fostering partnership between Azerbaijan and NATO. In addition, Liaison Officer of Azerbaijani Armed Forces functions at the Partnership Coordination Cell at the Supreme Headquarters of Allied Powers in Europe (SHAPE), Mons. |