Nations in Transit 2009 - Azerbaijan

Capital: Baku
Population: 8.6 million
GNI/capita: US$6,570

The data above was provided by The World Bank, World Bank Indicators 2009.

Nations in Transit Ratings and Averaged Scores

* Starting with the 2005 edition, Freedom House introduced separate analysis and ratings for national democratic governance and local democratic governance to provide readers with more detailed and nuanced analysis of these two important subjects.

NOTE: The ratings reflect the consensus of Freedom House, its academic advisers, and the author(s) of this report. The opinions expressed in this report are those of the author(s). The ratings are based on a scale of 1 to 7, with 1 representing the highest level of democratic progress and 7 the lowest. The Democracy Score is an average of ratings for the categories tracked in a given year.

Executive Summary

Azerbaijan had a brief period of independence between 1918 and 1920, and regained independence when the Soviet Union collapsed in 1991. The transition was complicated by the war with Armenia and separatist Armenians over the Nagorno-Karabakh enclave. The conflict resulted in massive social problems and an estimated one million internally displaced persons. All sides signed a cease-fire agreement in May 1994, shortly after President Heydar Aliyev came to power. During his 10-year term in office, Aliyev strengthened his hold on the country through an enormous concentration of power in the presidency. In October 2003, the presidency changed hands when Heydar Alieye's son, Ilham Aliyev, gained the office following controversial elections that were deemed not free and fair by the OSCE. The 2005 parliamentary elections, including the reruns in May 2006, did not meet a number of international standards. The presidential elections of October 2008 marked another step back for Azerbaijan.

Azerbaijan's energy resources are considerable, and have attracted significant interest from foreign oil companies and the governments that back them. A significant portion of energy revenues has gone into the military sector. However, some funds have been allocated to improve the situation of internally displaced persons.

National Democratic Governance. Civil society institutions weakened while presidential powers were exceedingly strengthened in 2008. The President and his administration exercise full control over legislative and judiciary systems even though separation of powers is envisaged by the Constitution. The presidential administration exercised even greater powers in the run-up to and after the uncompetitive 2008 presidential elections, according to the official results of which Ilham Aliyev received the support of nearly 89 percent of those who voted. The country's leadership began preparations to hold a referendum in 2009 that would aim at lifting a constitutional ban on a third term presidency, which, according to many experts, may lead to a life long presidency for Ilham Aliyev. Due to the intensified autocratic trends in the country as evidenced by the increasing dominance of the executive branch, Azerbaijan's rating on national democratic governance worsens from 6.00 to 6.25.

Electoral Process. The Constitution of Azerbaijan states that the people of Azerbaijan are the source of power, and elections are held regularly in the country. However, since the adoption of the Constitution in 1995 none of the elections has been assessed as free and fair, including the October 15 presidential elections. In December 2008, the ruling party introduced draft Constitution changes eliminating limits for consequent presidential terms. The move is widely believed to pave the way for lifelong presidency of the incumbent head of state, Ilham Aliyev. No established opposition parties are represented in commissions at any level. The OSCE/ODIHR election observation mission final report stated that the October 15 election "was characterized by a lack of robust competition, a lack of vibrant political discourse, and a restrictive media environment..." Due to the authorities' failure to provide even minimal conditions for a meaningful reflection of the will of the people, Azerbaijan's score on electoral process is worsened from 6.50 to 6.75.

Civil Society. The capacity of the national nongovernmental organization (NGO) community overall is low. In addition to problems stemming from the NGO community itself, and social apathy, the sector faces obstacles in the form of a hostile government expressed in legal barriers and tax policy. Approximately 1,400 NGOs are registered with only 150 functioning, and roughly 10-15 active, and effective NGOs. Recently, public awareness of NGOs rose considerably, though they are still perceived as anti-governmental, especially those receiving foreign grants. The state is presented by authorities as the single entity entitled to define the public good, and all others views are perceived as expressions of political opposition to the government. Consultations with the NGO sector are perceived by the government as weakening state authority. Civil society groups failed to serve as watchdogs during the presidential elections of 2008. Azerbaijan's civil society rating worsened in 2008 from 5.25 to 5.50 owing to the increasingly hostile attitude of the authorities towards civil society and the decline in civil activity in the country.

Independent Media. At least four journalists, jailed for their professional activity, remain in Azerbaijani prisons. The government exercises extensive control over electronic media and silences all alternative voices. The authorities stopped broadcasts of RFE/RL, BBC, and VoA on local frequencies at the end of the year. Although Azerbaijani legislators have passed several laws to enhance freedom of information in recent years, implementation of the law remains a problem. Despite numerous calls by the international and local community, the country's parliament has failed to decriminalize defamation. Libel cases are considered within the Criminal Code, which leads to severe punishment of journalists in libel cases. Journalists were subject to physical attacks throughout 2008. The country's independent media rating worsens from 6.25 to 6.75 due to the elimination of pluralism in electronic media and increased number of attacks on journalists.

Local Democratic Governance. Conflicts stemming from the authority of executive power over municipalities in terms of presidential appointees continued in 2008. Municipalities could not exercise their authority as provided in the European Charter of Local Self-Government, which Azerbaijan ratified in 2001 while presidential appointees ran district budgets and led infrastructure projects in constituencies. Despite numerous calls by the Council of Europe, Azerbaijan refused to fulfill its obligations under the Charter, which include creating a separate municipality in the capital city, Baku, and the executive power branch eliminating duplication of municipal responsibilities. Azerbaijan's rating for local democratic governance worsens from 6.00 to 6.25 owing to the increasing dominance of the central government in local affairs.

Judicial Framework and Independence. Although the law of the Azerbaijan Republic provides legislative ground for an independent judiciary, in practice judges do not function independently of the executive branch. In 2008 the judiciary remained corrupt and inefficient as the executive branch exerts a strong influence over the judiciary. Even after salary increases for judges during the past several years, credible allegations that judges routinely accepted bribes continued to surface. Judges, acting at the instruction of the executive branch officials, sentenced detainees to jail within hours of their arrest without providing access to a lawyer. The country's rating on judicial framework and independence stagnates at 5.75 as no significant improvements have been made towards guaranteeing independence of courts and rule of law.

Corruption. Corruption is one of the main problems hindering democratic gains in Azerbaijan. Attempts to improve the situation on a legislative level fail at the implementation phase, as the state agencies entitled to conduct anticorruption activity are believed to be among the most corrupt agencies in the country. Azerbaijan's Transparency International 2008 Corruption Perceptions Index rating worsened to 1.9 from 2.1 the previous year, and the country ranked 158 among the 180 surveyed (near the bottom of the scale, which signifies the highest level of corruption perception). The country's rating on corruption worsens from 6.25 to 6.50 due to lack of transparency in state funded projects and political will in fighting corruption.

Outlook for 2009. Despite its vast energy resources, Azerbaijan will also be subject to the impact of the global economic crisis. Unemployment growth and social tension may lead to an increase of political activity. However, the country's government cemented its rule by lifting a ban from third term presidency, which may lead to the life long presidency of Ilham Aliyev. The situation with freedoms is expected to remain poor as the government will continue to silence critical voices in the country and ignore the international community's calls for improvements.