Back to main site

Integrated SDG Insights

Azerbaijan

UNDP’s Integrated SDG Insights explore how to achieve the SDGs by 2030. So that no one is left behind.

How To Read This Report

‘SDG Insights’ playbooks transcend development “as usual,” and leverages data innovation, AI and systems analysis to chart credible pathways that help countries meet the 2030 Agenda.

SDG Moment This section provides an overview of a country's economic growth trajectory, with new insights on sustainability and inclusiveness of growth pathways.

SDG Trends & Priorities This section builds from the foundation of national SDG progress and uses machine learning to analyse national development ambition with an SDG lens.

SDG Interlinkages Combined, these insights are mapped against SDG interlinkages to define policy choices the accelerate SDG progress, tailored to national context.

Finance & StimulusThese policy choices are made against fiscal constraints and opportunities for stimulus mapped in this section to ensure choices translate to development impact and leave no one behind.

1. SDG Moment

While economic growth is a key element in achieving the SDGs, many countries are intent on moving beyond growth as a yardstick for progress. In the short run, growth enables the SDGs; but in the long run, the SDGs aim to transform the pattern of growth itself.

GDP Growth Pathways

People

Poverty: Percentage of the population under each threshold (PPP$ a day).

Data not available.

Planet

Carbon Intensity: CO2 emissions intensity of GDP (tCO2 per PPP $1,000).

During the 2023-2025 cycle, Azerbaijan’s economy is projected to have moderate growth, characterized by having GDP growth rates 8% lower, on average, than those projected for the world, and just above the country’s growth trajectory projected before the pandemic. Accordingly, Azerbaijan’s SDG policy focus is on mitigating the effects of the recent contraction.

Read More

This pace of GDP growth is projected to exert a positive influence in reducing the incidence of poverty and vulnerability-to-poverty rate at $14 a day. Moreover, the economic expansion would be somewhat less dependent on carbon emissions from fossil fuel usage as the country’s carbon emissions intensity of GDP is expected to decline at an annual rate of 0.7%. Yet, if carbon emissions from land-use change are also considered, the carbon intensity of GDP will follow an upward trend at an annual rate of 2.6%.

3. SDG Interlinkages

Maps synergies and trade-offs of national priorities to the most relevant SDG targets to chart policy pathways with most potential to accelerate progress.

2.2: End all forms of malnutrition

Progress on food security and malnutrition holds significant importance for Azerbaijan, and tackles one of the worst forms of poverty by ensuring access to nutritious food. The main indicators showed limited progress in the past decade, with prevalence of child stunting slightly reduced from 18% in 2010 to 16% in 2020, while prevalence of anemia among women remained high (around 35%), reflecting the persistent and increasing prevalence of moderate or severe food insecurity which increased from 6% in 2015 to 10% in 2020 (Target 2.1).

Access to safe and nutritious food improves both health outcomes and benefits educational achievements. Moreover, it is closely linked  to SDG 8, creating employment and contributing to rural economic growth. Guaranteeing women’s rights to access and control of resources (Targets 1.4, 2.4, 5.a) is a key element of achieving this goal.

Progress on food security is also closely aligned with SDG 12's emphasis on sustainable consumption and production, promoting sustainable food systems and waste reduction. By building resilient agricultural practices (Target 2.4), Azerbaijan can mitigate climate change impacts and support climate action (Goal13), while maintaining the viability of ecosystems, especially mountainous ones (Goal 15). Ultimately, food security fosters social stability and promotes effective governance.

4.3: Equal access to affordable technical, vocational and higher education

In Azerbaijan, SDG target 4.3 aims to ensure equal access to quality technical, vocational and tertiary education. Azerbaijan had a high of 13.5 expected years of schooling in 2021 and a high upper secondary education completion rate (which was around 92% in 2011, latest data available). However, the quality of education and equal access remain concerns.

SDG 4.3 has important interlinkages to reduce the skills mismatch (Target 2.2) and ensuring future-readiness of the people in the workforce. This will promote equal access to the labour market for women/girls and men and to the further empowerment of women to participate in the local labour market (Target 5.5) , including through science, technology, engineering, mathematics (STEM) and ICT education (Target 5.b). Quality technical education will equip individuals with skills aligned with labour market demands, fostering decent work and economic growth.

Equal access to technical education, in combination with the above policy choices offers a credible pathway to reduce inequalities, empowering groups and localities left behind and promoting social inclusion.

6.1: Safe and affordable drinking water

In Azerbaijan, the majority of the population (96%) is using safely managed drinking water services – but only one in five (21%) uses safely managed sanitation services (Target 6.2), which puts the SDG achievement at risk.

Access to safe and affordable drinking water  is closely linked with the achievement of health targets (Goal 3), both related to communicable diseases and non-communicable diseases. Sustainable water management is closely linked with sustainable urbanization (Targets 1.4,  11.3), sustainable agriculture (Target 2.4) and benefits across industrialization and gender equality and women’s empowerment goals.

However, there are evident trade-offs between SDG targets. Water is actively used in agriculture (81% of total freshwater withdrawal, followed by 4% for industry).

Climate change (Goal 13) makes access to safe and affordable drinking water for all a challenging task. Industrialization, especially mining (Goals 8, 9), increases the risks from toxic and radioactive waste.

7.2: Universal access to modern energy

Access to affordable and sustainable energy is crucial for Azerbaijan development. The population enjoys universal access to electricity and uses clean fuel, mostly gas (Target 7.1). However, the share of renewables is very small and declining (from 4.2% in 2010 to 1.3% in 2020), and energy efficiency of the economy stagnated during the past decade.

Affordable and reliable energy (Target 7.1) plays a key role in reducing income poverty (Target 1), including energy poverty (Target 1.4), by enabling income-generating activities (Goal 8) and improving living conditions. Affordable and reliable energy plays a crucial role in achieving health and gender equality outcomes.

It is a vital investment for health care facilities (Target 3.8) and access to education (Target 4.1). Moreover, affordable energy drives economic growth, job creation and entrepreneurship opportunities, in rural and urban areas (Goals 10, 11). Sustainable energy sources contribute to mitigating climate change by reducing greenhouse gas emissions, promoting renewable energy and supporting the transition to a low-carbon economy. Sustainable industrialization will put further demand on ensuring universal access to affordable, reliable and modern energy services, and possible trade-offs  between availability of energy and use of renewables.

9.2: Promote inclusive and sustainable industrialization

SDG 9.2 aims to foster inclusive and sustainable industrialization in Azerbaijan while simultaneously enhancing its economic growth (Goal 8). Despite recent improvements, manufacturing value added as a proportion of GDP is relatively low in Azerbaijan (around 5.0% in 2022). Inclusive and sustainable industrialization could promote economic diversification (Target 8.3) and greening of the economy.

In addition to capturing downstream value added from oil and gas refining, manufacturing also embraces tech-intensive industrial activities, enhancing women’s empowerment in ICT (5 Target.b), as well as food processing and other labour-intensive branches, which could promote employment outside of the main cities (Goals 10, 11) and where women are more likely to find employment (Targets 5.5, 5.4).

However, the pursuit of industrialization also entails trade-offs. It requires careful consideration of environmental sustainability as industrial activities can have adverse ecological impacts—affecting ecosystems (Goals 15, 2), potable water (Goal 6) and people’s health (Goal 3). Rapid industrialization could put pressure on energy access (Target 7.2) at the expense of energy sustainability (Target 7.2, 7.3). Ensuring inclusivity in this process is crucial to prevent potential social, gender and territorial inequalities.

10.4: Adopt fiscal and social policies that promotes equality

By implementing fiscal, wage and social protection policies, Azerbaijan can strive towards reducing income inequality (Target 10.1) and promoting inclusive growth (Targets 8.1, 8.3). This aligns with other SDGs, such as SDG 1 (No Poverty) and SDG 8 (Decent Work and Economic Growth), as addressing inequality contributes to poverty eradication (Targets 1.1, 1.2), to more equal access to economic resources and opportunities (Target 1.4) and to sustainable economic development (Goal 8).

Fiscal, wage and social protection policies could be crucial elements for achieving gender equality (Goal 5 Gender equality and women’s empowerment, especially Targets 5.1, 5.4, 5.5, 5.b), and they are closely related to Rule of Law and Responsive Governance. However, pursuing greater equality may require trade-offs, such as making adjustments in fiscal priorities and resource allocation (Goal17), in ensuring effective governance (Goal16) and in balancing protection and employment incentives (Target 8.3). Balancing these trade-offs is crucial to ensure that policies aimed at achieving SDG 10.4 are effectively implemented, leading to a more equitable and prosperous future for Azerbaijan.

15.1: By 2020, ensure the conservation, restoration and sustainableuse of terrestrial and inland freshwater ecosystems and their services.

By prioritizing Target 15.1 in its 2021-2025 National Development Plan, Ecuadorreaffirmed the significance of protecting and preserving terrestrial ecosystems andtheir biodiversity. This includes recognizing that the investment projects intendedto fulfil Target 15.1 will not only contribute to achieving the SDGs 13, 14 and 15, butwill also help restore ecosystems that underpin the availability and comprehensivemanagement of water resources (SDG 6) and promote their sustainable use (Target12.2). Additionally, it will also foster the generation of new energy from renewablesources (Target 7.2).

To this end, Ecuador seeks to strengthen the management of the National Systemof Protected Areas through its 2022-2032 Strategic Plan and the implementationof the National Forest Restoration Plan 2019-2030. These instruments serve as thetechnical, legal and financial foundation for executing local forest restorationprocesses with a landscape vision, with an overall goal of covering 30,000hectares through its projects. Considering that the proportion of national territoryunder conservation or environmental management, as of 2022, stands at 22.1%, itis necessary to mobilize additional financial resources from various sources andestablish robust governance (Target 17.3) to intensify the care of protected areas.This ensures the conservation of natural and cultural resources, genetic flows, theprovision of environmental services for the benefit of the population and thealignment of policies on the ground.

Futures Scenarios

SDG Push is a futures scenario based on 48 integrated accelerators in the areas of Governance, Social Protection, Green Economy and Digital Disruption. It uses national data to explore the impact on human development by 2030 and 2050 across key SDG indicators. It does this by using ‘International Futures,’ a systems model designed to explore interactions across development systems.

Poverty <$1.90 Per Day (Number of People)

Malnourished Children Under 5 (Number Of Children)

Malnourished Children Under 5 (Number Of Children)

4. Finance and Stimulus

Many countries are facing reduced fiscal space, high debt levels, rising interest rates and downgrades on credit ratings. Fiscal and financial constraints tend to slow or even reverse SDG progress.

Azerbaijan's total public budget to GDP ratio is at 15.7% for 2023, while gross government debt is projected at 22.1% of GDP in 2023 and thus less than a third of the emerging market and middle-income economies’ (EMMIE) average of 68.8%. When the $50 billion in the State Oil Fund are taken into account, Azerbaijan's net government debt is strongly negative. The country is expected to collect 38.6% of GDP in revenue 2023 year – about a fifth more than the average EMMIE country at 26% – with natural resources accounting for close to two-thirds of revenue.

Show More

Azerbaijan's public external debt servicing relative to revenue, is projected at 2.7% this year, much less than half the EMMIE group’s 12.3%. The country’s credit rating is assessed as ‘non-investment grade speculative’ but significantly above the EMMIE average.

SDG Stimulus

The UN Secretary General’s SDG Stimulus Plan lays out a blueprint for action within the existing financial architecture. It includes:

  • Providing liquidity to support recovery in the near term
  • Enhance debt relief for vulnerable countries.​
  • Expanding development financing by MDBs
  • Align financial flows with the SDGs and Paris Agreement, according to country-level priorities and needs, for example through the rollout of the UN Integrated National Financing Framework (INFFs).

Given the projected fiscal and financial constraints faced by

Azerbaijan

possible funding options for the investments derived from the identified interlinkages are as follows:

  • Tax and revenue reform
  • Leveraging the Azerbaijan SDG Investor Map and the Impact Investing Ecosystem
  • Debt for SDGs: green bonds to finance the green transition have a strong potential for the country within the current relatively comfortable fiscal space
  • Climate finance: building on the developed climate budget tagging methodology and on the integration of the climate budget formulation, monitoring and accountability frameworks into the budgeting processes will improve the climate/green focus of public expenditures on both mitigation and adaptation dimensions.
  • Blended and public-private finance
  • SDG-aligned business environment and investment
  • Accessing financial markets and insurance
  • Remittances, philanthropy and faith-based financing

Methodology & Data Sources

Click here to view the Methodological Note for the Integrated SDG Insights.

This report is the result of a global exercise carried out using artificial intelligence to identify SDG priorities based on 10 national government documents, together with SDG progress and SDG interlinkage analysis. The implementation and monitoring of the 2030 Agenda in Argentina should be consulted in the Country Reports and National Voluntary Reports.

SDG Moment

Methodology
Assesses challenges and opportunities in national growth trajectories with insights on environmental sustainability and inclusiveness.

Data Sources
Future trajectories to 2025 are based on IMF-WEO GDP projections, distributions of per capita income or consumption from the World Bank, and CO2 emissions from the Global Carbon Budget 2022 and EDGAR (JRC and IEA).​

Trends & Priorities

Methodology
SDG trends tracks progress from 2015 to date for the 231 indicators. National priorities are analysed using machine learning to reveal the most prominent SDGs referenced in national policy documents.

Data Sources
SDG trends tracks progress from 2015 to date for the 231 indicators. National priorities are analysed using machine learning to reveal the most prominent SDGs referenced in national policy documents.

Interlinkages

Methodology
SDG trends tracks progress from 2015 to date for the 231 indicators. National priorities are analysed using machine learning to reveal the most prominent SDGs referenced in national policy documents.

Data Sources
The exercise globally considered a total of 454 documents published from 2015 to August 2022. (Miola et al., 2019 updated in 2021-2022)​

Finance & Stimulus

Methodology
Provides insight into indicators of fiscal and financial stress with options (INFF) for stimulus and other means to accelerate progress.

Data Sources
Most recent resource data from UNU-WIDER GRD (between 2018 and 2021), debt and revenue from IMF WEO (between 2020 and forecasts for 2023), external debt from IDS (2023), yields from Haver Analytics (8 June 2023), credit ratings from S&P, Moodys and FITCH (2023), and DSA ratings from World Bank/IMF (31 May 2023).