Azerbaijan: Overview

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Oil bonanza

Azerbaijan (pop. 8,551,000; GDP/cap US$1,664) - a nation with a Turkic and majority-Muslim population - is surrounded by the Caspian Sea, Russia, Georgia, and Iran. Azerbaijan is a low-income country with a gross national income per capita of slightly over US$810 in 2003.

After Azerbaijan’s independence from the USSR in 1991, it immediately faced political upheavals, economic decline, and war with Armenia over the Nagorno-Karabakh region.

Over the past five years, annual GDP growth rate has been 10 percent. This impressive growth is attributable to the oil industry. Despite the country's natural resources, Azerbaijan remains one of the lowest-income countries in Europe and Central Asia.

Corruption in the oil sector is the driving force of poverty in the country. Inhumane employment practices, pollution, harsh working conditions and low wages characterize the oil sector.

No foreign ownership, very limited leasing
Azerbaijan remains closed to foreign ownership, and if a foreigner has acquired land through mortgage foreclosure or gift, he must sell it within a year. Azerbaijan also allows only 10-year leases. Foreigners may own immovable properties affixed to the land.