U.S. Assistance to Azerbaijan - Fiscal Year 2004

In support of Azerbaijan’s anticipated increase in resource revenue in 2005, U.S. assistance in FY 2004 will focus on revenue management, transparent budgeting, and expenditure planning. U.S. development assistance continues to transition toward small business development, local government, community partnerships, and citizen participation.

The estimated $67.5 million budgeted by all U.S. Government agencies for assistance programs in Azerbaijan in fiscal year 2004 is allocated roughly as follows based on information available as of the date of this fact sheet:

Democracy Programs	$12.0 million
Economic & Social Reform	$13.6 million
Security & Law Enforcement	$11.3 million
Humanitarian Assistance	$27.1 million
Cross Sectoral Initiatives	$3.5 million

Democracy programs in Azerbaijan focus on strengthening the rule of law, improving the electoral process, supporting an independent media to encourage citizen participation in the political process, and promoting non-governmental organizations (NGOs). U.S. assistance provides training for legal professionals, strengthens the ability of civil society to protest against corruption, promotes legal reform, and improves the curricula in Azerbaijani law schools. In the lead up to the October 2003 presidential elections – and in anticipation of the 2005 parliamentary (and 2004 municipal) elections – U.S. funding has supported voter education, training of election officials, voter registration improvements, and media coverage of campaigns and elections.

Small grant-making programs administered by the Eurasia Foundation and by the U.S. Embassy in Baku support the work of indigenous non-governmental organizations (NGOs) to foster civil society, local government accountability, independent media, and other initiatives to promote democracy. Assistance programs continue to focus on training and exchange programs in an effort to reach out to the next generation of Azerbaijan's leaders and give them first-hand experience in the day-to-day functioning of a market-based, democratic system. Since 1993, the U.S. has funded the travel of over 2,400 Azerbaijani citizens to the United States on academic and professional exchange programs in fields such as management, social service provision, and NGO development.

Access to information in Azerbaijan is promoted through programs such as the Azerbaijan National Library Online Catalog Project, which converts the National Library’s special collection catalog to electronic form and provides training on electronic cataloging for other librarians throughout the country. The Internet Access and Training Program supports 10 public access facilities in seven cities throughout Azerbaijan.

Private sector development programs aim to encourage growth of small and medium enterprises by making credit available, providing business consulting and training, and rehabilitating productive infrastructure. Particular attention is paid to development of the agricultural sector, which promises a significant positive impact on livelihoods in rural areas. Assistance to the National Bank focuses on improving supervision and regulation capacity and introduction of international accounting standards. A program at the Ministry of Finance is working to improve fiscal management and transparency through the design and implementation of an automated treasury system. With regard to domestic energy, U.S. assistance programs work with the Government of Azerbaijan to develop an independent regulator for the electricity and gas sectors, design tariff schedules, and create a safety net for vulnerable populations.

U.S. Treasury Department advisors also provide technical assistance to the government on budget policy and tax administration. The U.S. continues to support American exports to and investment in Azerbaijan through the Overseas Private Investment Corporation (OPIC) and Export-Import Bank. A U.S. Trade and Development Agency (TDA) advisor assists the government with World Trade Organization (WTO) accession. TDA grants have also been signed to provide technical assistance to the State Oil Fund in asset management, to the government in developing a tourism strategy, and to restructure the state oil company, SOCAR.

Security, law enforcement, and nonproliferation assistance remains focused on counterterrorism and counter-narcotics to strengthen Azerbaijan’s capabilities to combat terrorism and related transnational threats, enhance law enforcement, improve military interoperability with the North Atlantic Treaty Organization (NATO), and promote regional stability. The development of an interagency crisis management capability will facilitate a comprehensive response to acts of terrorism, threats to pipeline security, natural disasters, and preventing trafficking in persons, weapons of mass destruction (WMD), criminal elements, and narcotics.

The U.S. Defense Department’s Cooperative Threat Reduction assistance works to strengthen Azerbaijan's capability to interdict WMD trafficking through the Caspian Sea. The Export Control and Related Border Security (EXBS) assistance program continues to work with Azerbaijani export control officials, customs, maritime brigade, and border guards to improve their prevention capabilities against weapons proliferation and other illicit trafficking. In addition to communication, inspection, and detection equipment, EXBS supports upgrades to and training on a recently delivered U.S. Coast Guard cutter donated under the Excess Defense Articles program.

Azerbaijan acceded to the multinational Science and Technology Center in Ukraine in 2003, enabling former Azerbaijani weapons scientists to apply for U.S. grant funding to assist in their transition to non-military employment. FY 2004 funding is available for Azerbaijani research grants that encourage regional cooperation between the Azerbaijan National Science Foundation and sister organizations in Armenia and Georgia. Foreign Military Financing will finance equipment and training. The International Military Education and Training program sustains interoperability through English language training, enabling Azerbaijan participation in international security, and peacekeeping missions in Iraq and Afghanistan.

U.S. law enforcement assistance programs help to enhance training capacity of Azerbaijani law enforcement officers and to provide counter-narcotics training and equipment. The U.S. also implements a forensics training and laboratory project and a criminal record management system project. A U.S. Department of Justice prosecuting attorney serves as resident legal advisor, and the addition of a law enforcement advisor in Baku provides support for criminal justice reforms, assistance in the development of counter-terrorism and terrorist financing legislation, support of anti-corruption efforts, development of anti-trafficking in persons (TIP) legislation, and training of police, prosecutors, and NGOs that handle TIP cases. This program also provides training of law enforcement and judicial personnel in modern investigative and prosecutorial procedures.

U.S. humanitarian programs in Azerbaijan are specifically designed to assist internally displaced people (IDPs), refugees, and other vulnerable populations. Current programs focus on community development, health and economic opportunities, and support services, including training and business management consultations for vulnerable populations. Other programs include U.S.-funded health clinics to serve needy populations and the provision of humanitarian commodities. The approximate $15 million worth of commodities shipped and distributed to the most needy Azerbaijanis include medicines, pharmaceuticals, medical equipment and supplies, emergency shelter items, food, and clothing.

The U.S. Agency for International Development (USAID) will also provide food-aid to be distributed to IDPs and other vulnerable groups through the World Food Program's relief operations. In FY 2004, The U.S. Department of Agriculture (USDA) will provide nearly 27,000 metric tons of wheat and 6,000 tons of soybean meal through the Food For Progress program to private volunteer organizations working in Azerbaijan. In addition, USDA is negotiating with the Government of Azerbaijan to provide approximately 30,000 metric tons of wheat under the Title I program; proceeds will be used for rural development. The U.S. continues its humanitarian demining efforts in Azerbaijan.

The Peace Corps, which began working in Azerbaijan in 2003, has 25 volunteers already teaching English and 28 trainees who will teach English at the secondary level.