Azerbaijan’s poverty rate trends reflect progress and persistent challenges as the country works toward the United Nations’ 2030 Sustainable Development Goals (SDGs). Recent social reform packages, including the Agency for Sustainable and Operative Social Provision (DOST Agency) model and expanded pensions, show the government’s commitment to strengthening social protection. Yet, rising living costs, gender inequality in the workforce and the reliance on hydrocarbons highlight gaps that could leave vulnerable populations behind.

This article examines how Azerbaijan’s Sustainable Development Cooperation Framework (2021–2025) shapes poverty reduction and identifies the steps needed to achieve lasting progress.

Poverty Trends in Azerbaijan

Over the past two decades, Azerbaijan has made significant progress in reducing poverty. In 2001, nearly half of the population lived below the national poverty line, according to the State Statistical Committee. By 2023, the Asian Development Bank estimated that only 5.2% of the population lived below the poverty threshold. Economic growth, social protection reforms and targeted poverty alleviation programs have driven progress.

Azerbaijan’s poverty rate indicates that, despite overall improvements, poverty disproportionately affects certain groups more than others. Rural areas, internally displaced persons, children from large households and individuals with disabilities continue to experience higher rates of poverty.

Social Protection and Reform Initiatives

The government implemented the DOST Agency to support its SDGs. The government expanded pensions to cover a broader range of groups, including families of martyrs, persons with disabilities, women with more than five children and low-income households, marking the fifth social reform package implemented since 2018. These programs aim to reduce Azerbaijan’s poverty rate.

Persistent Challenges

Azerbaijan’s economy remains highly dependent on oil and gas exports, leaving it vulnerable to global price fluctuations and energy transitions. The International Monetary Fund (IMF) reported that, although growth in the non-oil sector is increasing, the economy remains heavily dependent on hydrocarbons. Inflation rose to 4.9% in December 2024, partly due to price adjustments in energy, transportation and utilities.

Key social and economic challenges include limited income-generating opportunities for women, youth and smallholder farmers and unequal access to essential public services in health, education and social protection.

Looking Toward 2030 Goals

Azerbaijan is advancing toward the U.N.’s 2030 SDGs. The government has prioritized all 17 SDGs, 88 targets and 119 indicators, coordinating progress through the National Coordination Council for Sustainable Development. Voluntary National Reviews and the United Nations Sustainable Development Cooperation Framework (UNSDCF) have highlighted private sector engagement, social protection and inclusive education achievements.

The UNSDCF emphasizes people-centered policies and economic diversification beyond the hydrocarbon sector. Addressing these priorities aims to accelerate progress toward the 2030 Agenda and mitigate the risk that marginalized populations are left behind. These coordinated efforts aim to reduce Azerbaijan’s poverty rate, ensuring economic growth benefits all population segments.

– Isaac Nelson

Isaac is based in Florianópolis, Santa Catarina, Brazil and focuses on Good News and Global Health for The Borgen Project.

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