Land and Resources

Azerbaijan is the most populous country in the Transcaucasus, with an estimated population of 7,174,000 in 1991. Although it contains people of many different nationalities, the republic has become more ethnically homogeneous in recent years. The proportion of Azeris, who have traditionally comprised about four-fifths of the population, has increased since the start of the conflict with Armenia over Nagorno-Karabakh in 1988. Large numbers of Azeri refugees have flowed over the border from Armenia, and large numbers of Russians, Armenians, and other nationalities have left Azerbaijan. The Armenian community, which comprised 6 percent of the population in 1989, is now confined almost exclusively to the Nagorno-Karabakh enclave. Other nationalities include Lezgins, Kurds, Talysh, Tatars, Georgians, Ukrainians, and Avars. Most ethnic groups have resided in the area of present-day Azerbaijan for centuries, although Slavs arrived in large numbers with the industrialization boom of the last century. Lezgins, Kurds, and Talysh, who are geographically concentrated in the north, east, and south of the republic, have agitated for increased autonomy in recent years.

Azerbaijan is the least urbanized of the three Transcaucasus republics (the other two are Georgia and Armenia). Only 53.8 percent of its population lived in cities in 1989. The largest city is Baku, the capital, with an estimated population of 1,179,000 in 1990. Other large cities include Gäncä, formerly Kirovabad (278,000), and Sumqayit (235,000).

The official language of Azerbaijan is Azeri, a Turkic language of the Uralic-Altaic family. Russian is also commonly spoken, although its use is declining. The traditional religion of the Azeris is Shiite Islam, which has experienced a revival in recent years. Orthodox Christianity is practiced to varying degrees among the Georgian, Armenian, and Slavic minorities.

Economy

Industry is the leading sector of Azerbaijan's economy and accounts for more than half of all net material production (54.2 percent in 1991). Heavy industry is based largely on abundant resources of petroleum and natural gas in or near the Caspian Sea. Oil companies from the United States and Europe established operations in Azerbaijan in 1991 to help develop the country's oil fields; development was extended to include Russian companies in 1994. Other manufactures include copper, steel, aluminum, chemicals, and textiles. Agriculture accounts for slightly more than one-fourth of total net material production (26.1 percent in 1991). Cotton, grain, grapes, and tobacco are the leading crops, although the production of cotton and grapes has fallen considerably in recent years. Mountain pastures are used for sheep grazing. In the subtropical Länkäran Lowland in the southeast, tea, citrus fruits, and olives are grown. Production has plummeted in the early 1990s, as the economy has suffered from mounting costs associated with the war in Nagorno-Karabakh and the disruption of trade ties with other former Soviet republics. Net material production declined by an estimated 30 percent in 1992 alone.

Agriculture is the largest sector in terms of employment. The agricultural labor force is twice that of industry. In 1991 agriculture accounted for nearly one-third of total employment (32.9 percent), while industry accounted for 16.3 percent. Employment in services remains at 28 percent, approximately the same level as in the mid-1980s. Until 1994 Azerbaijan used the Russian ruble as its currency. That year, the Azerbaijani manat became the sole legal tender.

Government

Azerbaijan is currently governed under a 1978 constitution. Because of the conflict in Nagorno-Karabakh, little progress has been made toward drafting a new system of laws and principles. Executive power is vested in a president. Legislative power is vested in the Milli Majlis, or National Assembly, voted into existence by the Supreme Soviet in May 1992. This assembly of 50 members replaced an earlier, 70-member version that had been created in 1991. The Supreme Soviet was suspended upon creation of the Milli Majlis.

History

The area of Azerbaijan was settled from about the 8th century BC by the Medes, and the region later became part of the Persian Empire. A much-disputed area, it was conquered in the late 7th century AD by Arabs, who introduced Islamic culture. Turkic tribes controlled the area in the 11th and 12th centuries. Azerbaijan again came under Persian control in the 17th century and was ceded by Persia to Russia through treaties in 1813 and 1828. In 1918, after the Russian Revolution, Azerbaijan became an independent state. In 1920 it was proclaimed a Soviet Socialist Republic (SSR) of the USSR and united with Georgia and Armenia to form the Transcaucasian Soviet Federated Socialist Republic (SFSR). When that dissolved in 1936, Azerbaijan became a constituent republic of the USSR. The collapse of Communism in the USSR in 1991 led to the independence of Azerbaijan. It joined the United Nations (UN) in 1992.

Political turmoil characterized the first years of Azerbaijani independence, and the constitution was violated on several occasions. President Ayaz Mutalibov (1990-1992) was forced to resign in March 1992 after he was held directly responsible for the death of several hundred Azerbaijanis killed by Armenian forces in Nagorno-Karabakh, the primarily Armenian enclave claimed by Armenia. The interim president, Yagub Mamedov (1992), was unable to control the political situation. The Azerbaijani Popular Front (APF) attempted to take over local administrations, and Mutalibov made an aborted attempt to regain power. With the support of military units, the APF seized control in a nearly bloodless coup in May 1992, after which the Majlis was suspended by the National Council.

Azerbaijan began 1994 with a renewed offensive in Nagorno-Karabakh, gaining little territory and losing between 6000 and 10,000 lives. A March 1 cease-fire failed and in April the National Assembly called for intervention by the Commonwealth of Independent States (CIS). The plan included a force of mostly Russian peacekeepers, and the APF organized large demonstrations against the plan. Fighting in Nagorno-Karabakh continued until August, when defense ministers from Armenia and Azerbaijan agreed to a cease-fire. Fighting renewed again in early 1995, as Armenia sought to eliminate remaining Azerbaijani resistance.