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Rural poverty in Azerbaijan
Azerbaijan emerged from the collapse of the Soviet system as one of the most disadvantaged countries in the territory of the former USSR. Average wages were low even by Soviet standards, and by 1990 more than 35 per cent of the country's population was living below the minimum subsistence level. The political, social and economic turmoil that followed independence further exacerbated poverty.
Although living standards have largely improved since the period following independence, a high level of poverty persists in rural areas. About 42 per cent of the rural population live below the poverty line, and about 13 per cent of poor people live in extreme poverty. Rural communities generally have access to sufficient food, but productivity is low, food prices have risen dramatically, and living conditions have been affected by the collapse of infrastructure, unreliable supplies of gas and electricity, and declining health and education services.
Who and where are Azerbaijan's rural poor people?
The greatest concentration of poverty in Azerbaijan is found among the country’s 1 million refugees and internally displaced persons, including those who returned after the collapse of the Soviet Union and those who fled the Nagorni-Karabakh region as a result of the conflict with Armenia. These people have been temporarily resettled, mainly in urban areas. They have few employment opportunities and depend on humanitarian aid for survival.
The incidence of poverty is highest in the north-east of the country, but some areas within central Azerbaijan, such as Mugan-Salyan, Ganja-Gazakh and Karabakh-Mil, also have a poverty rate of over 50 per cent. The rural areas of the north-western mountain zone of Sheki-Zagatal and the central areas of Mugan-Salyan and Karabakh-Mil have the highest rates of extreme poverty.
Remote areas and upland or mountainous areas show high rates of poverty. These areas often lack basic infrastructure and services, including irrigation, adequate road access, a reliable drinking water supply and health services. They often harbour a high proportion of refugees and internally displaced persons.
Women are less educated than men and far fewer women receive a university education. In rural areas almost 39 per cent of households are managed by single women. These, together with larger households with more than three dependents, are generally the most disadvantaged.
Why are they poor?
One of the major causes of pervasive rural poverty is neglect of the agricultural sector over recent decades. Although more people are working the land now, after the privatization of collective farms, working conditions for farmers are generally unfavourable. Rural infrastructure and power supplies are limited or lacking altogether. Individual plots are small. The large numbers of former labourers who have turned to farming have little experience or knowledge of management techniques. There are few alternative sources of income and limited opportunities for accessing credit, despite the strong demand for financial services. Machinery and equipment are outdated and in short supply. The lack of agricultural services and collapse of the input supply system have resulted in a marked decline in productivity. The inefficiency of deteriorated irrigation and drainage systems is in large part responsible for the decline in productivity. This in turn has caused a shift to subsistence production and a consequent decrease in cash crops such as cotton, fruit and grapes. The lack of markets for agricultural products has been a major challenge to farmers and has contributed to impoverishment of the rural sector. When the Soviet-era processing industry and marketing system collapsed, alternatives were slow to emerge. Many farmers are unable to sell their produce. There has been a massive influx of imports of competitive products as a result of the availability of foreign exchange from oil revenue and the liberalization policies. Local production has been unable to compete on domestic markets, and farmers have been driven further into poverty and subsistence production. Source: IFAD |
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