Urban Vs Rural: Azerbaijan's Development Dichotomy

Azerbaijan is a small country with a population of around 10 million people. It is a secular nation with a majority-Turkic and majority-Shia Muslim population. Azerbaijan's urban population is growing, with around 57% of the country's inhabitants living in urban areas as of 2023. Baku, the capital city, and its surrounding areas have the highest population density in the country. The urban population of Azerbaijan was 5,822,506 in 2023, a slight increase from the previous year. This trend of urbanisation is expected to continue, with a predicted annual rate of change of 1.38% from 2020 to 2025. However, rural areas are not to be overlooked, as they are home to a significant portion of the population and face challenges such as a lack of economic opportunities and human capital gaps.

Azerbaijan's urban population

The country's overall urban population makes up about 57.6% of the total population, a figure that has remained relatively stable in recent years. However, it is important to note that each country defines "urban" differently, so international comparisons may not always be consistent.

The high population density in and around Baku stands in contrast to the rest of the country, which has a fairly light and evenly distributed population outside of smaller urbanized areas. The income levels of those outside the Greater Baku Area do not correspond proportionately to the level of economic activity or population density, and rural areas face challenges such as undeveloped agro-processing industries, limited access to finance, and a lack of modern agricultural technologies.

As a result of these disparities, Azerbaijan is experiencing internal migration, with educated and skilled workers leaving rural areas for Baku or other countries. This migration further exacerbates the inequality between urban and rural populations and threatens to turn into a crisis if not addressed.

Azerbaijan's rural population

Azerbaijan's population is approximately 57% urban, with the highest population density in the far eastern area of the country, in and around Baku. The rest of the country has a fairly light and evenly distributed population.

Azerbaijan's economy and population are increasingly concentrated in the Greater Baku Area. This has resulted in inequality, with opportunities dwindling in rural areas. Over 40% of the population works in agriculture, yet the sector only accounts for 5.7% of gross domestic product due to factors such as undeveloped agro-processing industries and limited access to finance.

The departure of educated and skilled workers from rural areas for Baku or other countries further worsens human capital gaps between urban and rural populations. As of 2022, 47% of Azerbaijanis and over 60% of the country's poor live in rural areas. Of Azerbaijan's 69 districts, 50 continue to register negative net migration, mainly due to rural residents moving to urban centres for work or education.

Baku's wealth

Baku, Azerbaijan's capital and largest city, has witnessed a rapid accumulation of wealth since the 1990s due to its oil reserves. The city has transformed into a flashy, ultra-modern metropolis, with towering glass-clad high-rises, futuristic museums, stadiums, and concert venues. This wealth has also funded the construction of opulent government buildings and public spaces, such as the seafront promenade, Baku's Bulvar, and the Flame Towers, a group of three glass skyscrapers.

However, this wealth has not been evenly distributed among the population, leading to a significant income gap and high levels of inequality. While Baku's elite prosper, many residents struggle with the high cost of living in one of the world's most expensive cities. The minimum cost of living in Baku is 500 manat a month (about 633 USD), while government pensions fall far below this amount. As a result, many residents, including the elderly, face difficulties in making ends meet.

The oil wealth has also contributed to the centralisation of power in the hands of the ruling Aliyev family and their oligarchy, who control various industries such as construction, transportation, communications, and banking. This has hindered the emergence of a Western-style middle class, as opportunities for the majority of the population outside of the oligarchy are limited.

Additionally, the government has prioritised breakneck infrastructural development over maintaining social services, further neglecting the needs of the most vulnerable citizens. The rapid construction has also resulted in families being evicted from their homes and frequent utility outages.

The wealth generated by Baku's oil industry has had a profound impact on the city's urban development and socio-economic landscape, creating a stark contrast between the glitz and glamour of the wealthy and the struggling reality of the less fortunate.

Rural-urban migration

Azerbaijan's population is approximately 57% urban and 43% rural. However, the country is facing a significant issue with rural-urban migration, which is causing various social, economic, and political issues. The pace of internal migration has increased since Azerbaijan's independence, with many people moving from rural areas to large cities, especially Baku, which has a population of around 2.43 million. This movement is primarily driven by the concentration of economic activity and opportunities in Baku, which is located near the offshore oil and gas reserves that produce 90% of the country's exports.

The benefits of Azerbaijan's economic growth have not been equitably distributed, with a small elite in Greater Baku prospering the most. The incomes of those outside of Baku do not correspond to the level of economic activity or population density in those areas. While over 40% of the population works in agriculture, the sector only accounts for 5.7% of gross domestic product due to factors such as undeveloped agro-processing industries, limited access to finance, and poor market linkages. This disparity in economic opportunities has led to a migration of educated and skilled workers from rural areas to Baku or other countries, further exacerbating the gap between urban and rural populations.

The influx of people from rural to urban areas has resulted in several socio-economic issues. It has contributed to a lack of qualified personnel in the agricultural sector, such as veterinarians, zoo technicians, and agronomists. Additionally, the overloading of infrastructure in Baku has led to difficulties in road transport, utilities, and educational institutions. The migration has also had social implications, with traditional "urban-rural" relations causing social discomfort and politicization of objective social problems arising from population density.

The unresolved Nagorno-Karabakh conflict and the resettlement of over a million refugees and internally displaced people in the capital and regions are also significant factors influencing internal migration. Furthermore, the lack of quality education and poor mobile access to services in rural areas further incentivize people to migrate to urban centres. To address these issues, Azerbaijan needs to improve entrepreneurship development and financial access in rural regions, encourage the opening of private and public universities outside of Baku, and expand access to high-speed mobile broadband connectivity.

Rural Azerbaijan's future

Azerbaijan's future is increasingly urban. Since the country gained independence in 1991, its state institutions and industries have concentrated in the Greater Baku Area, which includes Baku, Sumqayit, and satellite cities. As a result, rural Azerbaijan risks falling behind.

Azerbaijan's rural population has been steadily declining, with a 0.87% decline from 2021 to 2022. This is due in part to rural residents moving to urban centres for work or education, as well as emigration to other countries. Over a million Azerbaijanis have emigrated to Russia, Turkey, the European Union, Ukraine, Israel, and Central Asia.

However, there are initiatives in place to support rural communities. The International Organization for Migration (IOM) in Azerbaijan has been rehabilitating kahrizes, centuries-old reservoirs that provide clean water for communities. This helps increase agricultural productivity and livelihoods, and provides opportunities for income-generating activities.

Additionally, the EU-funded programme "EU 4 Gender Equality: Together against gender stereotypes and gender-based violence" has supported rural women in Azerbaijan in pursuing their dreams and developing their businesses. One such woman is pastry chef Sahila Asadova, who opened the "SIRLI SOBA" bakery in the northeastern region of Quba.

While rural Azerbaijan faces challenges, these initiatives aim to support and empower local communities.

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