Azerbaijan

Azerbaijan is a rising provider of development co-operation, with a comparative advantage that is based on the experience of its own 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. Guided by the Sustainable Development Goals, the overarching objective of Azerbaijan’s aid programme is to combat poverty through sharing its experience and capacities with developing countries, particularly in productive and social sectors, while also providing humanitarian assistance in response to disasters and pandemics. In order to provide timely and co-ordinated international assistance, the Azerbaijan International Development Agency (AIDA) was established in 2011 under the Ministry of Foreign Affairs.

The policy framework for Azerbaijan’s development co-operation is directly derived from its international commitments, most recently to the 2030 Agenda for Sustainable Development, while also taking account of its foreign policy priorities. Since its establishment in 2011, the primary purpose of the AIDA is to support global peace, security and prosperity in all parts of the world. The vast majority of Azerbaijan’s assistance goes through multilateral channels (core or softly earmarked contributions). Bilateral co-operation focuses on areas where Azerbaijan has a comparative advantage in sharing its expertise, such as effective public service delivery, education, healthcare, labour and social protection, youth empowerment, mine action and others.

In 2018, Azerbaijan provided USD 28 million in total official development assistance (ODA), a large increase over the previous two years, although data are currently unavailable on the ODA ratio to gross national income. Total ODA on a grant-equivalent basis has the same value as net ODA under the cash-flow methodology used in the past, as Azerbaijan provides only grants. See the methodological notes for details on the definitions and statistical methodologies applied.

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In 2018, Azerbaijan increased its total support (core and earmarked contributions) to multilateral organisations. It provided USD 27.2 million of gross ODA to the multilateral system, an increase of 51% in real terms from 2017. Of this, USD 23 million was core multilateral ODA and the rest was earmarked for a specific country, region, theme or purpose. The totality of Azerbaijan’s non-core contributions to multilateral organisations (100%) was softly earmarked (to pooled funds and specific-purpose programmes and funds).

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In 2018, Azerbaijan’s total contribution to multilateral organisations was mainly allocated to regional development banks. These contributions together accounted for 83.6% of Azerbaijan’s total support to the multilateral system. The United Nations (UN) system received 8%. Out of a total volume of USD 2.2 million to the UN system, the top three UN recipients of Azerbaijan’s support (core and earmarked contributions) were: the UN Secretariat (USD 0.5 million), the International Labour Organization (USD 0.33 million) and the World Health Organization (USD 0.25 million).

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Learn more about multilateral development finance.

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Note: See the list of UN acronyms.

In 2018, Azerbaijan’s bilateral spending decreased compared to the previous year. It provided USD 5.7 million of gross bilateral ODA (which includes earmarked contributions to multilateral organisations), which represented a fall of 8.7% in real terms from 2017.

In 2018, country programmable aid was 6% of Azerbaijan’s gross bilateral ODA.

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Note: NGO: non-governmental organisation.

In 2018, Azerbaijan channelled its bilateral ODA mainly through multilateral organisations, as earmarked funding.

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In 2018, most of Azerbaijan’s bilateral ODA was allocated to production sectors, with Azerbaijan reporting 47% of bilateral allocable resources (USD 2.5 million). Meanwhile, the share of gross bilateral ODA to social infrastructure and services – including support to governance, civil society, education and health – amounted to 25% of bilateral allocable aid (USD 1.3 million).

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Azerbaijan’s Ministry of Foreign Affairs is responsible for setting the overall development co-operation policy directions for the country. Project implementation is the responsibility of the AIDA, which was established within the Ministry of Foreign Affairs in 2011. Its annual budget is established from the state budget. 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.

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https://doi.org/10.1787/2dcf1367-en

© OECD 2020

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