“ The challenges older persons face in Azerbaijan”

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“ The challenges older persons face in Azerbaijan”

by Gunel Sultanova
GAA Seminar at UN Church Center

September 26, 2003

Dear Ladies and Gentlemen,

My name is Gunel Sultanova and I come from Azerbaijan. I have come to United States to obtain Master’s Degree in Public Policy at New York University. I have been an intern at Global Action on Aging since April, 2003.

Today I will briefly talk about the financial crises and deprivations elderly face in Azerbaijan. However, my presentation will mainly concern elderly people affected by armed conflicts.

Since the issue of the elderly caught in armed conflicts was raised at the UN conference on aging in Madrid in 2002, the lack of appropriate information, materials and services targeted specifically at the elderly during armed conflicts has surfaced as a major issue. To begin to fill this gap, Global Action on Aging has undertaken the responsibility for launching a project and conducting research on elderly affected by armed conflicts. We want to promote public awareness on the need for special procedures, services, and assistance to protect the elderly. Our President, Mrs. Paul, will provide you with more detailed information on the project after my presentation.

Located on the Western coast of the Caspian Sea, the republic of Azerbaijan was a part of the U.S.S.R until the beginning of 1991, when it proclaimed its independence. Azerbaijan borders Turkey and Iran on south/southwest, Russia on north, and Armenia and Georgia to the northwest. The capital city is Baku. The population of the country is 8.6 million, slightly more than New York City, covering an area about the size of Indiana.

In spite of dire socio-economic conditions and widespread poverty, Azerbaijan is not a traditional developing country. Due to their Soviet past, the Azerbaijani population has a high level of literacy (about 98%), relatively high life expectancy, high access to education for both men and women, and a rather advanced health care system. However, socio-economic indicators have dropped dramatically since independence. Poverty is the greatest problem for people who only a decade ago lived in relative wealth. The actual effect of the social welfare system has differed greatly from its stated goals. During the late Soviet period, Azerbaijanis complained that their social benefits ranked near the bottom among the Soviet republics. The economic dislocations that followed independence eroded those benefits even further. In December 1993, the government estimated that 80 percent of the Azerbaijani population was living below the poverty level.

Since the collapse of Soviet Union, Azerbaijan has been negatively affected by regional economical and political events, mainly by the conflict with a neighboring country over part of its territory, the Nagorno-Karabakh region. As a result, by late 1992, refugees from Armenia flooded into the country, totaling approximately 250,000 people and 719,000 internally displaced people. A year later, the Meskheti Turks sought refuge in Azerbaijan from ethnic clashes in Uzbekistan. Their numbers reached 45,000 people. A cease-fire was negotiated in May 1994, but all attempts to negotiate a peaceful settlement of the conflict have failed. Thus, about 20% of Azerbaijan’s territory is currently occupied. In addition to that, the latest mission of Refugee International (RI) reports that: “7,000-10,000 Chechen refugees are residing in the Azerbaijan capital city of Baku and its suburbs.”

As a result, Azerbaijan has experienced the highest influx of refugee and IDP flows in the world, equivilent to 12% of the population, making it extremely difficult for the country to handle both the displaced people and its own population.

The majority of current retirees had invested their pension funds in the Soviet pension system, and they lost most of their savings after the collapse of the Soviet Union. The elderly who don't have relatives to take care of them are particularly vulnerable. Since their pensions are negligible, many suffer from hunger.

The most vulnerable section of the population is the refugee and IDP population. Almost half of refugee population is unemployable: 40% are under age (259,816) and 13.3% are pensioners (86,795). According to common opinion expressed in media and in the Parliament of Azerbaijan, state social or unemployment benefits for refugees do not cover their basic needs. Compensation paid on a monthly basis from the State budget ranges from 11.000 manat to 40.000 manat (between $2.50 - $8.00).

As a result, the elderly affected by armed conflict and displaced from their homes live in very poor conditions with limited access to water, gas and electricity. Most cannot afford quality health care services. Health care in Azerbaijan continues to function in a Soviet-style system, although several private clinics have opened and the government has partially begun to charge for services. Thus, people have to rely on their own funds to buy medicines and pay for surgery.

As for the Chechen asylum seekers, the Government of Azerbaijan has not yet granted them refugee status in the country. This means they do not have access to employment and financial support. Obviously, elderly Chechen refugees do not receive any pensions or other social benefits.

Despite all the hardships and challenges, the Government of Azeribaijan, in cooperation with international donors, initiated programs to meet the basic needs of the displaced population, providing healthcare and food provisions for vulnerable groups of elderly, children and women. However, due to the lack of progress in conflict resolution by the year 2000, major donors substantially cut their funding. Resolving the conflict remains an imperative step toward improving the refugees’ plight.

In a move to strengthen the social protection of the population, improve pension provisions for citizens and upgrade the mechanism for establishing and paying pensions, President Aliyev approved the pension reform concept in March 2002. The new system will provide individual record keeping for pensioners. It also provides for the creation of private pension funds and volunteer contributions to pension funds.

The reform is expected to take several stages in the time period between 2002 and 2005. The initial stage calls for the establishment of legal framework for pension provision, the second for creating a comprehensive database and the third for collecting information concerning the incomes of pensioners. The final stage will calculate pensions on the basis of the database. Despite this plan, the day to day life of elderly people has not improved much.

With this, I would like to conclude my introductory speech. Thank you for your attention and I am willing to answer your questions to the best of my knowledge.