Economy overview: The most significant sectors of the economy are the oil industry, cotton production and natural gas production. During 1997, oil production fell, but increased in the following years. The conclusion of 19 production sharing agreements (PSAs) with foreign enterprises, which have invested $60 billion in the development of the oil industry to date, should bring the funds needed to accelerate industrial development. Oil production under the first of these PSAs, with the Azerbaijan International Operating Company, began in November 1997. Azerbaijan is experiencing the same problems as other former Soviet republics in the transition from a command economy to a market economy, but its significant energy resources are encouraging. Baku has only recently begun to make progress on economic reforms, and the replacement of old economic ties and structures is slow. An obstacle to economic progress, including investment from abroad, is the ongoing conflict with Armenia over the Nagorno-Karabakh region. Trade with Russia and other former Soviet republics is losing its importance, while trade relations with Turkey, Iran, the UAE and European states are successfully built. Long-term prospects will depend on world oil prices, the location of new pipelines in the region, and Azerbaijan’s ability to manage its oil reserves wisely. See businesscarriers.com to know more about Azerbaijan Economics and Business. GDP: Purchasing Power Parity $23.5 billion (2000 est.) Real GDP growth rate: 11.4% (2000 est.). GDP per capita: Purchasing Power Parity $3,000 (2000 est.). The composition of GDP by sectors of the economy: agriculture: 22%; industry: 33%; services: 45% (1999 est.). Proportion of population below the poverty line: 60% (2000 est.). Percentage distribution of household income or consumption: for the poorest 10% of households: n/a; 10% of the wealthiest families: no data. Inflation rate at consumer prices: 1.8% (2000 est.). Labor force: 2.9 million people (1997). Employment structure: agriculture and forestry 32%, industry and construction 15%, services 53% (1997). Unemployment rate: 20% (1999 est.). Budget: revenues: $777 million; expenditures: $995 million, including capital expenditures – NA (1999 est.). Spheres of economy: oil and natural gas production, production of oil products, equipment for the oil industry; steel industry, iron ore mining, cement production; chemical and petrochemical industry; textile industry. Growth in industrial production: 6.9% (2000 OTs.). Electricity generation: 16.389 billion kWh (1999) Sources of electricity generation: fossil fuels: 86.46%; hydropower: 13.54%; nuclear fuel: 0%; others: 0% (1998). Electricity consumption: 15.432 billion kWh (1999) Export of electricity: 0.6 billion kWh (1999). Electricity import: 0.8 billion kWh (1999). Agricultural products: cotton, grain, rice, grapes, fruits, vegetables, tea, tobacco; cattle, pigs, sheep, goats. Exports: $1.9 billion (free on board, 2000 est.) Export items: oil and gas 75%, machinery, oil and gas, foodstuffs. Export partners: Italy, Turkey, Russia, Georgia, Iran. Imports: $1.4 billion (free on board, 2000 est.) Import articles: machinery and equipment, foodstuffs, metals, chemicals. Import partners: Russia, Turkey, Ukraine, UAE, Iran. External debt: $1 billion (2000). Economic aid recipient: official development support – $113 million (1996). Donor of economic assistance: Currency: Azerbaijani manat. Currency code: AZM. Exchange rate: AZM/USD – 4,579 (February 1, 2001), 4,342 (October 1999), 4,373 (1999), 3,869 (1998), 3,985.38 (1997), 4,301.26 (1996). Fiscal year: calendar year.
Telecommunications
Telecommunications Telephone lines: 663,000 (1997). Mobile cell phones: 40,000 (1997). Telephone system: does not meet modern requirements, requires expansion and modernization; the level of telephony is very low (8.6 lines per 100 people); internal: local – most telephones are concentrated in Baku and other industrial centers, about 700 villages still do not have telephone communications; satellite communication connects Baku with a modern switchboard in Nakhichevan; international: obsolete Soviet system of cables and microwave transmitters still in operation; satellite communication through Turkey provides Baku with communication with two hundred countries; some of which are directly connected to Baku through non-Turkish satellite providers (1997). Broadcast stations: AM -10, FM -17, shortwave -1 (1998). Radio receivers: 175,000 (1997). Television broadcast stations: 2 (1997). TVs: 170,000 (1997). Internet country code: az Internet providers: 2 (2000). Number of users: 8,000 (2000).
Transport
Transport Railways: total: 2,125 km; industrial lines are not taken into account; broad gauge: 2,125 km (1,520 m gauge, 1,278 km electrified) (1993). Roads: total: 24,981 km; coated: 23,057 km; unpaved: 1,924 km (These roads are considered to be paved, some are paved and others are gravel and can be operated in all weather conditions) (1998 est.). Pipelines: for crude oil -1,130 km; for petroleum products -630 km; for natural gas -1,240 km. Ports and harbours: Baku. Merchant navy: in total: 56 vessels (displacement of 1,000 tons or more) with a total displacement of 253,882 gross register tons / 313,252 long tons of gross tonnage; ships of different types: dry cargo ships – 1; cargo ships 12, oil tankers 40, ferries 2, coastal passenger ships 1 (2000 est.). Airports: 52 (2000 est.). Airports with paved runways: total: 9; from 2433 to Z047 m: 5; 1524 to 2437 m: 4 (2000 est.). Airports with unpaved runways: total: 43; from 1,524 to 2,437 m: 7; from 914 to 1523 m:8; less than 914 m: 28 (2000 est.).
Armed Forces
Branches of the armed forces: army, navy, air force and air defense, border troops. Enlistment age: 18 years old. Total Military Manpower: Male 15 to 49: 2,102,780 (2001 est.). Eligible for military service: males aged 15 to 49: 1,684,673 (2001 est.). Number of persons reaching military age each year: male: 77,099 (2001 est.). Military spending in dollar terms: $121 million (1999) Military spending as part of GDP: 2.6% (1999).
International Issues
International issues International disputes: Armenia supports ethnic Armenians in the Nagorno-Karabakh region of Azerbaijan in their long struggle with the Azerbaijani government; the boundaries of the sectors of the Caspian Sea for Azerbaijan, Iran, Kazakhstan, Russia and Turkmenistan have not yet been determined. Illicit drugs: limited illegal cultivation of hemp and opium poppy, mainly for consumption within the CIS; a limited government program to eradicate harmful crops; a transit point for opiates moving through Iran, Central Asia and Russia to Western Europe.
