Corruption in Azerbaijan

Corruption in Azerbaijan is considered high and occurs at all levels of government. Corruption during the Soviet era was rife and persists into the present. As of 2024, Azerbaijan has regularly ranked near the bottom of Transparency International's Corruption Perceptions Index.

Azerbaijan's economy is characterized by corruption and inequality. The country's oil wealth has significantly strengthened the stability of Ilham Aliyev's regime and enriched ruling elites in Azerbaijan. The country's oil wealth has enabled the state to host lavish international events, as well as engage in extensive lobbying efforts abroad.

In the Azerbaijani laundromat money-laundering scheme, $2.9 billion was paid to foreign politicians and Azerbaijani elites by companies linked to Azerbaijani ruler Ilham Aliyev, government ministries, and the International Bank of Azerbaijan between 2012 and 2014.

Corruption is prevalent in education, health care and business more generally. Bribery, nepotism and cronyism are commonplace.

International anti-corruption indices and reports
In Transparency International's 2017 Corruption Perceptions Index (CPI), Azerbaijan achieved its best position since its inclusion in the report in 2000, with a score of 31 on a scale from 0 ("highly corrupt") to 100 ("very clean"). In the years 2018-2023 its scores were lower, with a 2023 score of 23.

According to a 2015 Transparency International report, Azerbaijan demonstrated improvement in international anti-corruption reports from previous years; however, its position in these indices was weak compared to that of neighbouring countries, such as Georgia, Armenia, and Turkey.

This weakness continues into the present; in the 2023 CPI results, Azerbaijan's score of 23 showed that it is perceived to be more corrupt than its neighbors, Georgia (53), Armenia (47), Russia (26) and Iran (24). Regionally, the average score for Eastern European and Central Asian countries was 35, the highest score was 53 and the lowest score was 18. Globally, the average score was 43, the best score was 90 and the worst score was 11.

The World Bank’s Worldwide Governance Indicators reported that Azerbaijan's ability to control corruption increased to 20 (2015) from 7 (2000).

The 2013 Global Corruption Barometer (GCB) report of Transparency International indicated that 9% of respondents in Azerbaijan thought that corruption had increased a lot. While 69% considered that the government's efforts were effective in the fight against corruption. Furthermore, 71% of respondents agreed that an ordinary person can make a difference in the fight against corruption in Azerbaijan. Citizens' participation and the values of integrity, accountability, and transparency were crucial components of fighting corruption. It was important to develop programs and actions to change the cultural understanding of corruption and helped citizens to act against abuses.

In the 2013 GCB report, health, the judiciary, and police were perceived as the most corrupt sectors by respondents. In comparison to the 2010 GCB report, improvement was noted in the more recent report with increased levels of trust in the civil service, education, and police. Contrary to international perceptions, Azerbaijani respondents perceived political parties as one of the least corrupt sectors alongside the media and religious bodies

According to the Global Integrity Index (GIX) (2011), the anti-corruption legislative framework of Azerbaijan is strong (89 out of 100); however, its implementation is very weak (38 out of 100) considering the powers that have been granted by law.

A 2014 report by Transparency International concluded that Azerbaijan was demonstrating steady improvement in anti-corruption rankings, but its progress was relatively slower than that of neighbouring countries. Furthermore, Azerbaijan had advanced with its anti-corruption legislation and strong executive branch; however, the legislature and the judiciary were perceived as weak and potentially more exposed to corruption.

Political context and background timeline of corruption issues
After the dissolution of the Soviet Union in late 1991, the transition period in Azerbaijan was complicated and further prolonged by the inability of the national political elite to ensure the existence of key public institutions during 1991–1993. In addition, during those years, Azerbaijan was forced to engage in military clashes with Armenia over the region of Nagorno-Karabakh. In 1993, as a result of the invasion by Armenia, Azerbaijan lost 20% of its territory. In the same year, the United Nations Security Council adopted four resolutions (822, 853, 874 and 884) which condemned the use of force against Azerbaijan and the occupation of its territories. The UN Security Council demanded from Armenia the immediate, complete and unconditional withdrawal of the occupying forces.

As a result of the war with Armenia, the influx of more than one million refugees and internally displaced people had a devastating impact on both the social and economic situation in Azerbaijan (Badalov and Mehdi, 2004). This tragic event shifted the priority of the country from building public institutions to accommodating internally displaced people (IDPs) and providing them with the necessary living standards. In addition, the collapse of the Soviet Union caused economic paralysis in Azerbaijan. Therefore, the main priorities of the Azerbaijani government were to divert all of its financial and political resources to safeguarding IDPs and to fighting against the invasion by Armenia in the international legal arena.

Commission on Combating Corruption
Commission on Combating Corruption is set up according to the article 4.2 of the Law of the Republic of Azerbaijan on "Fight Against Corruption" and functions as a specialized agency on combating corruption since 2005. The Executive secretaries of CCC were Inam Karimov, Vusal Huseynov and Kamal Jafarov.

Anti-Corruption General Directorate
The Anti-Corruption (bribery) General Directorate with the Prosecutor General of the Republic of Azerbaijan was established by the Order of the President of the Republic of Azerbaijan No.114 dated March 3, 2004. Directorate General is a body specialized in the field of preliminary investigation conducted on the corruption crimes, and is subordinated to the Prosecutor General of the Republic of Azerbaijan.

ASAN Service
To eliminate corruption in public service delivery, a new preventive institution, namely the Azerbaijan service assessment network (ASAN) (asan means “easy” in the Azerbaijani) was established by Presidential Decree in 2012. Currently, this institution provides 34 services for 10 state bodies. It was the first one-stop-shop service delivery model in the world to provide the services of various state bodies rather than only the services of one state body.

No conflict of interest exists between ASAN service employees and Azerbaijani citizens as ASAN service employees do not provide any kind of service themselves. All services are provided by the employees of the 10 state bodies under one roof, based on the standards of the ASAN service. Employees of the ASAN service monitor the work of the state bodies, check for compliance with ethics rules and manage the queue system.

Monitoring report by OECD has praised Azerbaijan "for advancing Azerbaijani Service and Assessment Network (ASAN) centers, which has contributed to eliminating the conditions that are conducive to corruption when delivering various administrative services to the public". Azerbaijan 2016 report by EEAS acknowledged ASAN services have been a great help in the elimination of corruption and bribery, as well as removing bureaucracy in public service delivery.

A similar institution is planned to be established in Afghanistan as well. A Memorandum of Understanding was signed between the State Agency for Public Service and Social Innovations under the President of the Republic of Azerbaijan and Ministry of Finance of the Republic of Afghanistan on July 12, 2016. The aim of the Memorandum is to establish a public service delivery mechanism in Afghanistan based on Azerbaijani model “ASAN service”.