Azerbaijan

Azerbaijan is a rising provider of development co-operation, leveraging and sharing its transformation from a transition economy to an upper middle-income country. Over the past decade, Azerbaijan has significantly reduced its dependence on foreign assistance while increasing its development co-operation with key partners. Total Official Development Assistance (ODA) increased in 2020 to USD 44.9 million (preliminary data), representing 0.11% of gross national income.

Find the methodological notes behind the profile here.

The policy framework for Azerbaijan’s development co-operation is directly derived from its international commitments, including the 2030 Agenda for Sustainable Development, along with its foreign policy priorities. AIDA’s primary purpose is to support global peace, security and prosperity. The majority of Azerbaijan’s assistance is provided bilaterally. Guided by the Sustainable Development Goals (SDGs), the overarching objective of Azerbaijan’s aid programme is to combat poverty, focusing on areas where Azerbaijan has a comparative advantage in sharing its expertise, such as effective public service delivery, education, healthcare, labour and social protection and youth empowerment, as well as humanitarian assistance.

Azerbaijan provided USD USD 44.9 million of ODA in 2020,1 representing 0.11% of gross national income (GNI). This represents an increase by 69% in real terms compared to 2019 in terms of volume and an increase in the share of GNI. Azerbaijan provided all of its ODA as grants in 2020.2

Azerbaijan provided most of its ODA bilaterally in 2020. Gross bilateral ODA was 74.9% of total ODA. A share of 49% of gross bilateral ODA was channelled through multilateral organisations (earmarked contributions). Azerbaijan allocated 25.1% of total ODA as core contributions to multilateral organisations.

In 2020, Azerbaijan provided USD 24.2 million of gross bilateral ODA for the COVID-19 response, representing 71.8% of Azerbaijan’s total gross bilateral ODA. A share of 56.8% of total gross bilateral ODA was provided as health expenditure within the COVID-19 response.

In 2020, Azerbaijan provided USD 27.8 million of gross ODA to the multilateral system, an incease of 26.4% in real terms from 2019. Of this, USD 11.3 million was core multilateral ODA, while non-core contributions were earmarked for a specific country, region, theme or purpose.

Eighty nine per cent of Azerbaijan’s total contribution to multilateral organisations in 2020 was allocated to the United Nations (UN) entities and other multilateral organsiations.

The UN system received 50.4% of Azerbaijan’s gross ODA to the multilateral system, mainly through earmarked contributions. Out of a total volume of USD 14 million to the UN system, the top three UN recipients of Azerbaijan’s support (core and earmarked contributions) were: WHO (USD 10.2 million), FAO (USD 2.3 million) and the UN Secretariat (USD 0.4 million).

See the section on Geographic and sectoral focus of ODA for the breakdown of bilateral allocations, including ODA earmarked through the multilateral development system. Learn more about multilateral development finance.

In 2020, Azerbaijan’s bilateral spending increased compared to the previous year. It provided USD 33.7 million of gross bilateral ODA (which includes earmarked contributions to multilateral organisations).

In 2020, Azerbaijan channelled bilateral ODA mainly through the multilateral organisations, as earmarked funding, and the public sector.

In 2020, Azerbaijan’s bilateral ODA was primarily focused on Middle East and Asia. USD 6.6 million was allocated to Middle East, USD 6.0 million to Asia and USD 3.7 million to developing countries in Europe, accounting for 19.6%, 17.9 and 11.1% respectively. Asia and the Middle East were also the main regional recipient of Azerbaijan’s earmarked contributions to multilateral organisations. USD 16.9 million (50.2%) of bilateral ODA was unallocated by region.

In 2020, 40.3% of gross bilateral ODA went to Azerbaijan’s top 10 recipients. Its top 10 recipients are mainly in the Middle East, Central Asia and South Asia, in line with its focus on its immediate neighbourhood and its policy priorities. The share of gross bilateral ODA that was not allocated by country was 55.4%.

In 2020, the LDCs received 2.1% of Azerbaijan’s gross bilateral ODA (USD 0.7 million). Azerbaijan allocated the highest share of gross bilateral ODA (26%) to upper middle-income countries in 2020, noting that 55.4% was unallocated by income group.

Support to fragile contexts reached USD 8.3 million in 2020, representing 24.6% of Azerbaijan’s gross bilateral ODA.

Learn more about support to fragile contexts on the States of Fragility platform.

In 2020, more than two-thirds of Azerbaijan’s bilateral ODA was allocated to social infrastructure and services. Investments in this area accounted for 68.8% of bilateral ODA commitments (USD 23.2 million), with a strong focus on health and population policies (USD 19.1 million). Bilateral humanitarian assistance amounted to USD 6.3 million (18.8% of bilateral ODA). Earmarked contributions to multilateral organisations mainly focused on health and population policies and humanitarian assistance in 2020.

Azerbaijan’s Ministry of Foreign Affairs is responsible for setting the overall development co-operation policy. The Azerbaijan International Development Agency (AIDA) was established in 2011 under the Ministry of Foreign Affairs to provide timely and co-ordinated international assistance. Project implementation is the responsibility of the AIDA. In addition, the agency co-ordinates the activities of other government actors (primarily line ministries) involved in development co-operation, ensuring activities are consistent with Azerbaijan’s foreign policy objectives.

Azerbaijan International Development Agency (AIDA): http://aida.mfa.gov.az/en

Participant in the OECD Development Assistance Committee (DAC). Reporting to the OECD activity-level data since 2016 on 2014-15 activities.

The methodological notes provide further details on the definitions and statistical methodologies applied, including the grant-equivalent methodology, core and earmarked contributions to multilateral organisations, country programmable aid, channels of delivery, bilateral ODA unspecified/unallocated, bilateral allocable aid, the gender equality policy marker, and the environment markers.

Notes

← 1. DAC members adopted the grant-equivalent methodology starting from their reporting of 2018 data as a more accurate way to count the donor effort in development loans. See the methodological notes for further details.

← 2. Other providers also provide non-grants, which include sovereign loans, multilateral loans, equity investment and loans to the private sector.

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