Exploring Azerbaijan's Leading Industries And Sectors

Azerbaijan is a transcontinental country at the boundary of Eastern Europe and West Asia. It is a leading regional energy player, with oil and natural gas accounting for two-thirds of the country's economy. Azerbaijan has the largest agricultural basin in the region, with about 54.9% of the country being agricultural land. Azerbaijan is also a leading producer of fine horses and caviar.

Oil and gas

Azerbaijan's oil and gas industry has been a defining feature of the country for over a century. The world's first oil well was drilled in Azerbaijan in the mid-1800s, and the country was the world's leading producer of oil at the beginning of the 20th century. Today, Azerbaijan's economy remains heavily reliant on oil and gas, with crude oil being the single largest import from the country.

Azerbaijan has directed some revenue from its oil and gas production towards developing the country's infrastructure and improving human capital. However, the country's economy is vulnerable to macroeconomic instabilities due to demand shocks in the energy sector.

Azerbaijan has been working to diversify its economy and develop its non-energy sectors. The country has a trade relations agreement and a bilateral investment treaty with the United States, and the two countries periodically convene the US-Azerbaijan Economic Partnership Commission to discuss cooperation in promoting trade and investment. Azerbaijan has also been working to develop its telecommunications and tourism sectors, with tourism being a national strategy to make the industry a major contributor to the country's economy.

Azerbaijan has the largest agricultural basin in the region, with about 54.9% of the country being agricultural land. The country's other natural resources include iron ore, nonferrous metals, and bauxite.

Military

Azerbaijan's military is known as the Azerbaijani Armed Forces, which consists of three branches: the Azerbaijani Land Forces, the Azerbaijani Air and Air Defence Force, and the Azerbaijani Navy. In addition, there are associated forces, including the Azerbaijani National Guard, the Internal Troops of Azerbaijan, and the State Border Service, which can be involved in state defence under certain circumstances.

Since the fall of the Soviet Union, Azerbaijan has been working to develop its armed forces into a professional, well-trained, and mobile military. Azerbaijan has been undergoing extensive modernisation and capacity-expanding programs, with the military budget increasing from around $300 million in 2005 to $2.46 billion in 2009. The total armed forces number 56,840 men in the land forces, 7,900 men in the air force and air defence force, and 2,200 men in the navy. There are also 19,500 personnel in the National Guard, State Border Service, and Internal Troops.

In 2023, Azerbaijan's active military personnel exceeded Armenia's by 20,000. Azerbaijan had 65,000 active soldiers, 300,000 reservists, and 15,000 paramilitary personnel. Azerbaijan also had superior military capabilities to Armenia in terms of aircraft and ground combat vehicles.

Azerbaijan has signed numerous contracts with Turkey to strengthen its armed forces and train its military. In 2024, Azerbaijan was ranked 59th out of 145 countries in the annual Global Firepower review.

Politics

Azerbaijan is a unitary semi-presidential republic with a president and prime minister. Nominally, it is a semi-presidential republic, but in practice, it is an authoritarian system with power concentrated in the hands of the president, Ilham Aliyev, and his extended family. Aliyev is the head of state and chief of the executive branch, and he appoints all cabinet-level government officials. Aliyev's New Azerbaijan Party has been in power since 1993 and has been accused of authoritarianism, worsening human rights, and increasing restrictions on civil liberties.

Azerbaijan's National Assembly is the legislative branch of government, consisting of 125 deputies elected in single-member constituencies. The ruling New Azerbaijan Party and independents loyal to the government currently hold almost all of the seats. The executive power is held by the president and the prime minister, with the president authorised to form the collective Cabinet.

Azerbaijan's system of governance can be called two-tiered, with the executive power headed by the president at the top tier, and the local executive authority as a continuation of that power. The country's constitution states that the state power is limited by law for internal issues and international agreements' provisions for external issues.

Azerbaijan's political system has been dominated by the Aliyev family since 1969. Heydar Aliyev governed Soviet Azerbaijan from 1969 to 1982 and then as President of Azerbaijan from 1993 to 2003. Heydar Aliyev's son, Ilham Aliyev, became president in 2003 and has since been re-elected four times, most recently in February 2024 with over 92% of the vote. However, international observers have noted that Aliyev had no meaningful challenger, and the main rival parties boycotted the election.

Azerbaijan's politics are marked by repression of political opponents, limited civil rights, widespread human rights abuses, and corruption. Elections are not free and fair, and dissenting voices are largely absent from mainstream media. Social media platforms, such as Facebook, are used as spaces for free expression and activism.

Azerbaijan has diplomatic relations with 182 countries and is a member of various international organisations, including the United Nations, the Council of Europe, the Organisation for Security and Co-operation in Europe (OSCE), and the North Atlantic Treaty Organization's (NATO) Partnership for Peace program.

History

Azerbaijan's history is rich and complex, dating back to ancient times. Here is a brief overview of its history, focusing on key events and periods:

Ancient History and Early Settlements

The territory of present-day Azerbaijan was first ruled by Caucasian Albania and later came under the influence of various Persian empires. The region has a long history of human settlement, with evidence dating back to the late Stone Age.

Persian and Russian Rule

Until the 19th century, Azerbaijan remained part of Qajar Iran. However, the Russo-Persian wars of the early 19th century forced the Qajar Empire to cede its Caucasian territories, including what is now Azerbaijan, to the Russian Empire.

Emergence of National Identity and Independence

By the late 19th century, an Azerbaijani national identity began to emerge. In 1918, the Azerbaijan Democratic Republic proclaimed its independence from the Transcaucasian Democratic Federative Republic, becoming the first secular democratic Muslim-majority state.

Soviet Rule and Incorporation

However, this independence was short-lived. In 1920, the country was conquered and incorporated into the Soviet Union as the Azerbaijan Soviet Socialist Republic.

Post-Soviet Independence and Conflict

The modern Republic of Azerbaijan regained its independence on 30 August 1991, shortly before the dissolution of the Soviet Union. However, it soon became embroiled in a conflict with neighbouring Armenia over the Nagorno-Karabakh region, leading to a full-blown war in the early 1990s. Despite a ceasefire in 1994, the dispute remained unresolved for decades.

Recent Developments and Nagorno-Karabakh Conflict

In recent years, Azerbaijan has redefined itself as a major regional energy player, leveraging its oil and gas resources. At the same time, it has grappled with issues such as poverty, corruption, and criticism over human rights and civil liberties.

In 2020, Azerbaijan launched a military offensive and regained control of territories in and around Nagorno-Karabakh, resulting in the flight of ethnic Armenians from the region. In 2023, Azerbaijan took further military action, leading to the dissolution of the breakaway Republic of Artsakh and the flight of nearly all ethnic Armenians from Nagorno-Karabakh.

Throughout its history, Azerbaijan has been influenced by various cultures and empires, shaping its unique identity and society. The country continues to face challenges but also possesses significant potential for development, particularly in the energy sector.

Geography

Azerbaijan is a transcontinental country at the boundary of Eastern Europe and West Asia. It is part of the South Caucasus region and is bounded by the Caspian Sea to the east, Russia's republic of Dagestan to the north, Georgia to the northwest, Armenia and Turkey to the west, and Iran to the south. The country has a landlocked exclave, the Nakhchivan Autonomous Republic, which is located southwest of Azerbaijan proper, bounded by Armenia, Iran, and Turkey.

Azerbaijan's landscape is characterised by lowlands, mountain ranges, and a large, flat lowland. Three physical features dominate the country: the Caspian Sea, the Greater Caucasus mountain range to the north, and the extensive flatlands at the country's centre. The highest peak is Mount Bazarduzu, at 4,466 m (14,652 ft) above sea level. The country's lowest point is in the Caspian Sea, at -28 m (-92 ft).

Azerbaijan has a dry, semiarid steppe climate. The dry subtropical climate of central and eastern Azerbaijan is characterised by a mild winter and a long, hot summer, with temperatures averaging about 27 °C and maximum temperatures reaching 43 °C. In contrast, southeastern Azerbaijan experiences a humid subtropical climate with high precipitation.

Azerbaijan is rich in natural resources, including petroleum, natural gas, iron ore, and nonferrous metals. The country's agricultural land covers 57.6% of its total area, with permanent crops and permanent pastures making up 2.7% and 32.1%, respectively. The Kura and Aras are the major rivers in Azerbaijan, running through the Kura-Aras lowland.

The country is home to a diverse range of animal and plant species. There are 106 species of mammals, 97 species of fish, 363 species of birds, 10 species of amphibians, and 52 species of reptiles. The national animal of Azerbaijan is the Karabakh horse, a mountain-steppe racing and riding horse endemic to the country. The country's flora consists of more than 4,500 species of higher plants, with 66% of the species found in the Caucasus region.

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