Country Information:
The Republic of Azerbaijan includes the Nakhichevan Autonomous Republic and Nagorno-Karabakh Autonomous Region (which was abolished in 1991). Situated in the eastern area of Transcaucasia, it is bordered in the west by Armenia, in the north by Georgia and the Russian Federation of Dagestan, to the east by the Caspian Sea and to the south by Iran. It has an area of 86,600 sq. km. and a population of 8.18 million. Capital: Baku. The area is rich in mineral deposits of aluminum, copper, iron, lead, salt and zinc, with oil as its leading industry. Agriculture and livestock follow in importance. Azerbaijan - a nation with a majority-Turkic and majority-Muslim population - was briefly independent from 1918 to 1920; it regained its independence after the collapse of the Soviet Union in 1991. Despite a 1994 cease-fire, Azerbaijan has yet to resolve its conflict with Armenia over the Azerbaijani Nagorno-Karabakh enclave (largely Armenian populated). Azerbaijan has lost 16% of its territory and must support some 600,000 internally displaced persons as a result of the conflict. Corruption is ubiquitous, and the government has been accused of authoritarianism. Although the poverty rate has been reduced in recent years, the promise of widespread wealth from development of Azerbaijan's energy sector remains largely unfulfilled.