A bazaar in Azerbaijan. World Bank's new partnership framework for the country aims to boost the competitiveness of its micro, small and midsize enterprises. Photo by: Francisco Anzola / CC BY
The nonrenewable resource that fueled Azerbaijan’s growth during the past decade is now the reason for the contraction of the country’s economy.
Oil revenues, which in 2006 contributed to Azerbaijan’s 34.5 percent economic growth, had helped boost public spending on infrastructure upgrades, the modernization of public institutions, the expanded use of ICTs, poverty and other social issues. Poverty levels dropped from 50 percent in the early 2000s to just 5 percent in 2013. The share of the middle class also improved during the period, rising from just 4.3 percent of the population to 28.9 percent by 2013.