Azerbaijan is a presidential republic with a division of powers between a strong presidency and a parliament. The President is directly elected for a 5-year term and dominates the executive, legislative and judicial branches. The President appoints the Prime Minister and the Council of Ministers. Serious irregularities were reported in the elections held in 2003, and only 5 opposition members were elected to the 125-seat Parliament.

Observers from the Organisation for Security and Cooperation in Europe (OSCE) report that the trials of those accused of post-election violence did not meet international standards. After the presidential elections, more than 700 persons were arrested, including opposition members, journalists and election officials. Women participate in politics but are under-represented in elective office, and men in some areas continue to vote on behalf of their female family members. 14 women serve in Parliament, and several hold senior government positions. Also represented in Parliament are minorities: Lezghins, Talish and Avars.

The judiciary is independent in law but is reported to be inefficient and subject to influence. Security forces and police are reported to use torture and excessive force to extract confessions.

Privacy rights and freedom of speech and of the press are restricted. Press censorship is prohibited, but intimidation and harassment of the media continue. Internet service providers are required to have formal agreements with the Ministry of Communications and Information Technologies. Public Internet access is available at Internet clubs and cafes, but availability in the home is rare and too expensive for most people. Telephone and Internet communications are reported to be monitored. Public access to government information is provided but procedures for obtaining the information are unclear. Ministries use different procedures on how requests should be made and routinely deny requests.

The pace of economic reform is uneven, with widespread corruption and patronage reported. The oil and gas sector accounts for more than 80% of export revenues, while other sectors have limited development. Subsistence farming dominates the rural economy. Despite annual economic growth of some 10%, almost half the population lives below the poverty level. Unemployment ranges from 15% to 20%.

Fighting with Armenia over Nagorno-Karabakh resulted in Armenian forces occupying about 16% of the territory of Azerbaijan. Some 800,000 Azerbaijanis are refugees or internally displaced persons (IDPs), who must register their place of residence and can only live in approved areas. The majority of refugees and IDPs live at below-subsistence levels without adequate food, shelter, education, sanitation or medical care.

To help them with housing and services, the State Oil Fund has been drawn on for US$3.14 million (15.7 billion manta). The laws on residence, registration and the status of refugees do not apply to Chechens, who are not entitled to residence permits. Chechen children are allowed to attend public schools, but only 700 of an estimated 3,000 are reported to have enrolled in public schools.

Azerbaijan is a country of origin and transit for trafficked women, men and children for sexual exploitation and forced labour. Harassment of minority religious groups is noted. The media are accused of depicting non-traditional religious groups as a threat to the country's identity.

Public education is compulsory, free and universal until age 17. Tertiary education is also free for those who qualify for it. According to the Ministry of Education, all school-age children attend school; however, UNICEF reports that the true figure is approximately 88%. A large number of refugee and IDP children are unable to attend school. In impoverished rural areas, families who have to make choices send their boys to school while their girls work in the home if they are not forced to beg.

The government has developed a complicated scheme by which those who can pay for their education must do so while some help is available for the poorest children. The cost to families of compulsory education is on the rise. Schools are allowed to charge fees, which are therefore increasing since infrastructure is in poor condition and materials are in short supply. Fee-paying study groups that are essentially private are increasing. Some officials continue to discourage Muslim women from wearing the hijab in schools. An appeal has made to the European Court of Human Rights protesting the ban.

A 3-year programme of ECE begins at age 3. Fewer children were enrolled in 2004 than in 1999. All of the 10,973 teachers working at this level of education are women, and 85% are trained. The pupil/teacher ratio (PTR) is 10 : 1.

Education at this level begins the age of 6 years and lasts until the age of 10 years. The Net Enrolment Rate (NER) is 84%. There are 42,533 primary teachers (85% female), and all are trained. The PTR is 14 : 1.

Of the children who complete primary school, 99% enrol in secondary education. Only 1% of students are reported to study in the technical vocational sector in upper secondary school, which ends at age 17. The Net Enrolment Ratio (NER) is 77% (48% female). There are 127,109 secondary teachers (65% female), and all are trained. The PTR is 9 : 1.

122,770 students (46% female) are enrolled in tertiary education. 14% of tertiary education is private. 1,991 foreign students come to study in Azerbaijan, mainly from Central and Eastern Europe (1,622) the Arab States (31) and Central Asia (41). At the same time 4,202 Azeri students study abroad, mainly in Turkey (1,395), the Russian Federation (1,027), Georgia (778), Germany (311) and the USA (238).

Social discrimination against persons with disabilities exists. The law gives priority to persons with disabilities to obtain housing, pension supplements and discounts for public transportation; these commitments are not kept. A coalition working with street children is assessing conditions for children with disabilities in orphanages and has completed a public awareness campaign on the rights of children with disabilities. No details are provided on the rights of children with disabilities in schools.

Numerous indigenous ethnic groups live in the country. Constitutionally they have the right to maintain their culture and language. Authorities restrict their ability to teach or print materials in their native languages. Talish, Lezghins, Meskhetian Turks and Kurds report incidents of discrimination and restrictions on the ability to teach in their languages. They also encounter harassment by local authorities.

Armenians and persons of mixed Armenian-Azeri descent said they were denied education and could not register their residences due to their ethnicity. They complained of discrimination and harassment in employment, schooling and housing, and said that local authorities refused to pay their pensions.

Officially academic freedom is not restricted, but professors and students active in political parties experience political pressure. Following the election, some professors and teachers claimed they were dismissed because of their membership in opposition political parties. Police harassed and detained a university student and correspondent for the Popular Front Party's newspaper in Ganja State University and subsequently suspended his enrolment. Reports indicate he has left the country.

Traditional norms and poor economic conditions restrict women's opportunities, and they are under-represented in high-level jobs. The law prohibits pregnant women and women with children under age 3 from working at night; pregnant women and women with children under 18 months of age cannot work more than 36 hours a week.

Azeri, Russian and Central Asian women and girls are trafficked to work in the sex industry. Women and girls are trafficked from rural to urban areas for sexual exploitation. Violence against women, including domestic violence, continues to be a problem.

The minimum age for employment depends on the type of work to be done. Children can begin work at age 15 with parental consent; children aged 14 may work in family businesses or in after-school jobs. Children under 16 may not work more than 24 hours a week and from 16 to 18 not more than 36 hours a week. Employing persons younger than 18 in hazardous work is prohibited. The government has ratified ILO Convention 182 on the Elimination of Worst Forms of Child Labour. The country has also joined the European Charter Article on Protecting Child and Youth Rights.

The government has ratified the European social charter on freedom of association and collective bargaining. Workers have the right to form and join trade unions, except for the military and police personnel. Unions are prohibited from engaging in political activity but can draft legislation on labour, social and economic matters. State-owned enterprises are the leading employers in the formal economy. Union dues are automatically withheld from workers' pay but are not necessarily paid to the unions, so that resources for union work are scarce. The Azerbaijani Trade Union Confederation (ATUC) has approximately 1.5 million members in 26 federations. Collective bargaining agreements in state enterprises in the formal sector are legally permitted, but in practice wages are set by government-appointed boards. Workers have the right to strike, except for an extensive list of "emergency workers."

Forced or compulsory labour is allowed under states of emergency and martial law or as part of a court sentence for prisoners. Military officers are reported to use conscripts as unpaid labourers on construction projects. A presidential decree raised the minimum monthly wage from $20 (100,000 manat) to $25 (125,000 manat), which is insufficient to provide a decent standard of living for a worker and family. A 40-hour work week with a maximum daily work shift of 12 hours is allowed.