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p. 3 of 6 BACK | NEXT I. Introduction II. ADB’s Classification Policy III. Key Facts of Azerbaijan IV. Criteria for Classification of Azerbaijan V. Operatinoal Implications VI. Recommendation

The Country Classification of Azerbaijan

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III. Key Facts of Azerbaijan^d

8. For almost 70 years, Azerbaijan was a republic of the former Soviet Union. It became independent in 1991. Azerbaijan is on the southeastern flanks of the Caucasus Mountains and the western shore of the Caspian Sea; borders Armenia, Georgia, Iran and the Russian Federation; and covers 87,000 square kilometers. The capital is Baku. The Nakhchivan Autonomous Republic (5,500 square kilometers and 295,000 inhabitants), bordered by Armenia, Iran, and Turkey, is geographically separated from the Azerbaijan main territory. Appendix 2 provides basic data of Azerbaijan.

9. Azerbaijan has 8 million people. Over half the population reside in urban areas. The population is currently growing annually at 0.9 percent, slower than the 2 percent in the early 1990s, due to declining birth rates. Azeris constitute over 90 percent of the population. Ethnic minorities include Armenian, Laz, Russian and others. About 83 percent of the population are Muslim, mainly Shiite. Azerbaijanian is the state language, spoken by about 95 percent of the population. Russian is also widely used, particularly in urban areas.

10. Azerbaijan is a presidential republic. The President,^e directly elected to a term of five years, appoints the Prime Minister and the Cabinet of Ministers, which has executive power to implement policies in accordance with laws and decrees from the one chamber parliament (Milli Mejlis).

11. Azerbaijan suffered political instability until its October 1993 presidential elections. The political instability was aggravated by a three-year war with Armenia over Nagomy-Karabakh during 1991-1994.^f A cease-fire was reached in May 1994, and peace negotiations are under way under the auspices of the Organization for Security and Cooperation in Europe. The unresolved conflict has imposed extraordinary suffering on the population of Azerbaijan. About 20 percent of Azerbaijan's national territory are currently under Armenian occupation, including the Nagorny-Karabakh area. Nearly 1 million people, or 12 percent of the population, became refugees or internally displaced persons (IDPs) because of the war.

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