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Background Note:
Azerbaijan PROFILE
OFFICIAL NAME: Geography People (2000) Government Economy (2000) HISTORICAL HIGHLIGHTS Little is known about Azerbaijan's history until its conquest and conversion to Islam by the Arabs in 642 AD. Centuries of prosperity as a province of the Muslim caliphate followed. After the decline of the Arab Empire, Azerbaijan was ravaged during the Mongol invasions but regained prosperity in the 13th-15th centuries under the Mongol II-Khans, the native Shirvan Shahs, and under Persia's Safavid Dynasty.
Due to its location astride the trade routes connecting Europe to central Asia and the Near East and on the shore of the Caspian Sea, Azerbaijan was fought over by Russia, Persia, and the Ottomans for several centuries. Finally the Russians split Azerbaijan's territory with Persia in 1828 by the Treaty of Turkmenchay, establishing the present frontiers and extinguishing the last native dynasties of local Azerbaijani khans. The beginning of modern exploitation of the oil fields in the 1870s led to a period of unprecedented prosperity and growth in the years before World War I.
At the collapse of the Russian Empire in 1917, an independent republic was proclaimed in 1918 following an abortive attempt to establish a Transcaucasian Republic with Armenia and Georgia. Azerbaijan received de facto recognition by the Allies as an independent nation in January 1920, an independence terminated by the arrival of the Red Army in April. Incorporated into the Transcaucasian Federated Soviet Socialist Republic in 1922, Azerbaijan became a union republic of the U.S.S.R. in 1936. The late 1980s were characterized by increasing unrest, eventually leading to a violent confrontation when Soviet troops killed 190 nationalist demonstrators in Baku in January 1990. Azerbaijan declared its independence from the U.S.S.R. on August 30, 1991.
GOVERNMENT AND POLITICAL CONDITIONS Azerbaijan declared its independence from the former Soviet Union on August 30, 1991, with Ayaz Mutalibov, former First Secretary of the Azerbaijani Communist Party, becoming the country's first President. Following a massacre of Azerbaijanis at Khojali in Nagorno-Karabakh in March 1992, Mutalibov resigned and the country experienced a period of political instability. The old guard returned Mutalibov to power in May 1992, but less than a week later his efforts to suspend scheduled presidential elections and ban all political activity prompted the opposition Popular Front Party (PFP) to organize a resistance movement and take power. Among its reforms, the PFP dissolved the predominantly Communist Supreme Soviet and transferred its functions to the 50-member upper house of the legislature, the National Council.
Elections in June 1992 resulted in the selection of PFP leader Abulfez Elchibey as the country's second president. The PFP-dominated government, however, proved incapable of either credibly prosecuting the Nagorno-Karabakh conflict or managing the economy, and many PFP officials came to be perceived as corrupt and incompetent. Growing discontent culminated in June 1993 in an armed insurrection in Ganja, Azerbaijan's second-largest city. As the rebels advanced virtually unopposed on Baku, President Elchibey fled to his native province of Nakhchivan. The National Council conferred presidential powers upon its new Speaker, Heydar Aliyev, former First Secretary of the Azerbaijani Communist Party (1969-81) and later a member of the U.S.S.R. Politburo and U.S.S.R. Deputy Prime Minister (until 1987). Elchibey was formally deposed by a national referendum in August 1993, and Aliyev was elected to a 5-year term as President in October with only token opposition. Aliyev won re-election to another 5-year term in 1998, in an election marred by serious irregularities.
Azerbaijan's first Parliament was elected in 1995. The present 125-member unicameral Parliament was elected in November 2000 in an election that showed improvements in democratic processes but still did not meet international standards as free and fair. A majority of parliamentarians are from the President's "New Azerbaijan Party." Opposition parties are represented in Parliament. According to the Constitution, the Speaker of Parliament stands next in line to the President. The current Speaker is Murtuz Aleskerov. Azerbaijan has a strong presidential system in which the legislative and judicial branches have only limited independence.
Principal Government Officials Azerbaijan's embassy in the U.S. is at 2741 - 34th Street NW, Washington, DC 20008, tel: (202) 337-3500; fax (202) 337-5911; Consular tel: (202) 337-5912; Consular fax (202) 337-5913 www.azembassy.com.
ECONOMY Progress on economic reform has generally lagged behind macroeconomic stabilization. The government has undertaken regulatory reforms in some areas, including substantial opening of trade policy, but inefficient public administration in which commercial and regulatory interests are comingled limit the impact of these reforms. The government has largely completed privatization of agricultural lands and small and medium-sized enterprises.
For more than a century the backbone of the Azerbaijani economy has been petroleum. Now that Western oil companies are able to tap deepwater oilfields untouched by the Soviets because of poor technology, Azerbaijan is considered one of the most important spots in the world for oil exploration and development. Proven oil reserves in the Caspian Basin, which Azerbaijan shares with Russia, Kazakhstan, and Turkmenistan, are comparable in size to the North Sea, although exploration is still in the early stages.
Azerbaijan has concluded 21 production-sharing agreements with various oil companies. Eastern Caspian producers in Kazakhstan also have expressed interest in accessing this pipeline to transport a portion of their production. Partner sanctions of the Baku-Tbilisi-Ceyhan oil export pipeline was completed in August 2002 and construction awards here announced. Actual construction will begin in the second quarter of 2003, with completion projected by the end of 2004. A Baku-Tbilisi-Erzurum gas export pipeline should be sanctioned in the fourth quarter of 2002.
Environmental Issues DEFENSE AND MILITARY ISSUES The U.S. embassy in Baku, Azerbaijan is at 83 Azadliq Prospect; tel: 9-9412-98-03-35; fax: 9-9412-98-37-55; www.usembassybaku.org.
FOREIGN RELATIONS Nagorno-Karabakh More than 30,000 people were killed in the fighting from 1992 to 1994. In May 1992, Armenian and Karabakhi forces seized Susha (the historical, Azerbaijani-populated capital of NK) and Lachin (thereby linking NK to Armenia). By October 1993, Armenian and Karabakhi forces had succeeded in occupying almost all of NK, Lachin and large areas in southwestern Azerbaijan. As Armenian and Karabakhi forces advanced, hundreds of thousands of Azerbaijani refugees fled to other parts of Azerbaijan. In 1993, the UN Security Council adopted resolutions calling for the cessation of hostilities, unimpeded access for international humanitarian relief efforts, and the eventual deployment of a peacekeeping force in the region. The UN also called for immediate withdrawal of all ethnic Armenian forces from the occupied territories of Azerbaijan. Fighting continued, however, until May 1994 when Russia brokered a cease-fire.
Negotiations to resolve the conflict peacefully have been ongoing since 1992 under the aegis of the Minsk Group of the OSCE. The Minsk Group is currently co-chaired by Russia, France, and the United States and has representation from Turkey, the U.S., several European nations, Armenia, and Azerbaijan. Despite the 1994 cease-fire, sporadic violations, sniper fire, and landmine incidents continue to claim more than 100 lives each year.
Since 1997, the Minsk Group Co-Chairs have presented three proposals to serve as a framework for resolving the conflict. One side or the other rejected each of those proposals. Beginning in 1999, the Presidents of Azerbaijan and Armenia initiated a direct dialogue through a series of face-to-face meetings, often facilitated by the Minsk Group Co-Chairs. Most recently the OSCE sponsored a round of negotiations between the Presidents in Key West, Florida. U.S. Secretary of State Colin Powell launched the talks on April 3, 2001, and the negotiations continued with mediation by the U.S., Russia, and France until April 6, 2001. The Co-Chairs are continuing to work with the two Presidents in the hope of finding a lasting peace.
U.S.-AZERBAIJAN RELATIONS The United States has been actively engaged in international efforts to find a peaceful solution to the Nagorno-Karabakh conflict. The U.S. has played a leading role in the Minsk Group, which was created in 1992 by the Conference on Security and Cooperation in Europe--now the Organization for Security and Cooperation in Europe (OSCE)--to encourage a peaceful, negotiated resolution to the conflict between Azerbaijan and Armenia. In early 1997, the U.S. heightened its role by becoming a co-chair, along with Russia and France, of the Minsk Group.
The U.S. supports American investment in Azerbaijan. U.S. companies are involved in three offshore oil development projects with Azerbaijan, and U.S. companies in other fields such as telecommunications have been exploring the emerging investment opportunities in Azerbaijan.
The United States is committed to aiding Azerbaijan in its transition to democracy and formation of an open market economy. The Freedom Support Act (FSA), enacted in October 1992, has been the cornerstone of U.S. efforts to help Azerbaijan during this transition. Under the FSA, the U.S. to date has provided approximately $165.92 million in humanitarian and developmental assistance to Azerbaijan, including $32.18 million in FY 2000.
The U.S. and Azerbaijan have signed a bilateral trade agreement, and Azerbaijan has most-favored- nation status. A Bilateral Investment Treaty also has been signed.
U.S. Humanitarian Assistance Principal U.S. Embassy Officials
TRAVEL AND BUSINESS INFORMATION Emergency information concerning Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at (202) 647-5225. For after-hours emergencies, Sundays and holidays, call 202-647-4000. Passport information can be obtained by calling the National Passport Information Center's automated system ($.35 per minute) or live operators 8 a.m. to 8 p.m. (EST) Monday-Friday ($1.05 per minute). The number is 1-900-225-5674 (TDD: 1-900-225-7778). Major credit card users (for a flat rate of $4.95) may call 1-888-362-8668 (TDD: 1-888-498-3648). It also is available on the internet. Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm give the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-95-8280) is available from the U.S. Government Printing Office, Washington, DC 20402, tel. (202) 512-1800. Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication). U.S. citizens who are long-term visitors or traveling in dangerous areas are encouraged to register at the U.S. embassy upon arrival in a country (see "Principal U.S. Embassy Officials" listing in this publication). This may help family members contact you in case of an emergency. Further Electronic Information National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information. It is available on the Internet (www.stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at (202) 482-1986 for more information. |