Part One

1.1 Implications of recent political and socio-economic trends for United Nations system development assistance

During these difficult transitional years, United Nations agencies and organisations in Azerbaijan have provided technical support and assistance at all strata of the national society: from direct humanitarian intervention to families displaced from the war-torn Nagorno-Karabakh regions, to the establishment of frameworks within which environmental rehabilitation projects may be undertaken, to poverty alleviation initiatives aimed at strengthening economic opportunities in underdeveloped regions. This annual report will provide a concise picture of how the United Nations, under the leadership of the Resident Coordinator, addresses or attempts to address the issues facing the Resident Representatives, the National Government and the people of Azerbaijan.

The Contemporary Environment

Presidential elections held on 12 October 1998 resulted in victory for incumbent President Heydar Aliev, with 76% voter support. Although the OSCE report on the election included criticism, by and large the procedure was considered to be an improvement over the previous one. Due to the election law (and in particular the percentage of membership of the election committee to be allocated to the opposition), the elections were boycotted by most opposition candidates. The majority of the Government has now been re-established, with most incumbents - including the Prime Minister, all Vice Prime Ministers, and most Ministers - being reconfirmed. The only major change which has implications for UN Agencies was the replacement of the Vice Prime Minister in charge of Humanitarian Affairs, Izzet Rustamov, by the former Minister for Environment, Ali Hassanov. This change was welcomed by most. Following the elections the opposition, having formed an alliance, has continued to challenge the results through the mass media and through street demonstrations. Such demonstrations are not always authorised by authorities; thus, they occasionally turn violent.

The conflict with Armenia over occupation of the Nagorno-Karabakh region (20% of the entire Azerbaijan territory) is now in its ninth year. Attempts to reach a peaceful resolution since the May, 1994 cease-fire have made limited, if any, progress toward settlement of the key issues. A recent OSCE proposal for settlement has been rejected by the Azeri Government as unacceptable. This raises fundamental issues over the status of the 845,000 internally displaced persons (IDPs) from the occupied territories and refugees from Armenia, many of whom are living in camps or rail wagons under inhuman conditions and making a slow transition to some form of income generation and greater self-sufficiency. The lack of a solution to this problem within the near future will threaten the current political stability; this is a vulnerability of the current government on which both internal and external opposition forces play constantly.

Although the Azeri manat maintained its value in 1998, this came at the expense of hundreds of millions of dollars worth of National Bank interventions on the currency market, and the loss of a substantial part of the cash reserves of the country. Two external shocks - the sharp fall in oil prices and the financial crisis in Russia - combined to worsen the fiscal and balance of payments positions of the country. The trade deficit grew dramatically in 1998: from USD $13 million to a post-independence record USD$ 641 million - a figure almost double the previous record-high. ( ) The continuing decline in most domestic production sectors (in combination with a prolonged slump in oil prices) is the primary explanation for the dramatic trade deficit increase.

The annual inflation rate fell to under 4% in 1997 (from its peak of nearly 1,700% in 1994). Following the initial extraordinary contraction of the Azerbaijani economy following independence - national GDP collapsed by as much as 67% between 1990 and 1996 -real GDP grew at the rate of 5.8% in 1997. ( ) Azerbaijan's economy continued to grow strongly in the first three quarters of 1998, with real GDP 8.5% higher than a year earlier. ( ) Although progress in structural reforms has been mixed - especially in the areas of bank restructuring and the development of an appropriate framework for law enforcement - there has been a gradual shift in the structure of the economy, from predominantly state-controlled to market controlled. The share of GDP arising from production in the private sector rose from 32% in 1995 to 46% in 1997. The private sector absorbed about 56% of employed persons in 1996. Per capita income was US$ 506 for 1997, an increase of 57% from 1995. ( )

In the energy sector, 11.7 million tonnes of crude oil were produced in 1998, a 30.3% increase from the previous year. ( ) However, the full benefits of petroleum revenues will not be realised by the great majority of the population for 5 to 8 years. The Azerbaijan International Operating Company (AIOC), the first and largest of the foreign oil consortiums, has produced and exported nearly 2.5 millions tonnes of crude oil at its first offshore field since production began in autumn, 1997. Output from the Azerbaijan State Oil Company (SOCAR) declined in 1998 to 9 million tonnes of crude oil produced. Less than a million tonnes of SOCAR's production was exported (via the Russian Black Sea port of Novorossiysk.) The year saw a continuation of low oil prices on the world market, with the per barrel price declining from approximately $13 in January to below $10 in November. The persistently weak market, combined with less favourable than expected results from some recent exploration activities, appear to be leading to cuts in planned investment in the oil sector. A notable effect of the depressed prices has been the repeated delays in announcing whether the proposed Baku - Ceyhan pipeline will be constructed. Although the American government has lobbied strongly in support of the proposed pipeline, both the oil industry and the Government of Azerbaijan remain reluctant to commit due to growing concerns that the project may not be economically viable. Despite the price decline, new oil consortia were formed in 1998, with only one (CIPCO) dissolved after exploration of its concession area failed to prove substantial oil reserves.

Acting within this highly charged and complex environment, UN organisations have helped the Government of Azerbaijan maintain social cohesion and political stability through their broad array of assistance programmes. A Country Assistance Strategy (CAS), developed by The World Bank, IMF and UNDP, has assisted the Government by providing support for meeting Azerbaijan's immediate needs. The CAS supports the Government's efforts to design and implement policies and programmes conducive to the use of Azerbaijan's oil potential to achieve sustainable economic growth and poverty reduction.
1.2Overview of Development Assistance to Azerbaijan

A. Summary Table of Total Development Assistance in 1998. ( )

B. Official Development Assistance by Type in 1998.

C. UN system Official Development Assistance in 1998.

1.3 Highlights of United Nations Assistance in support of National Development Objectives and Priorities

A broad-based set of UN projects take different and complementary approaches to the challenge of achieving Azerbaijan's development objectives. Activities undertaken by UN agencies and organisations in Azerbaijan thus range from emergency assistance with food, shelter, and health care to development support in areas such as education, governance, and income generation. For the purpose of this report, UN activities in Azerbaijan have been classified under five broad headings: Economic Growth, Social Protection, Health and Education, Civil Society, and Environment.

Economic Growth:
Human development is possible only when people are able to maintain a decent standard of living, but conflict and economic difficulties have left many in Azerbaijan unable to meet even their most basic needs. Alleviating poverty through sustainable income generation is the central objective of a number of UN projects, many of which focus particularly on the needs of IDPs and refugees.

Micro-Credit: IOM is executing a UNDP-funded community development/ micro-credit project in the Nakhchivan Autonomous Republic. Major goals are to reduce poverty by enhancing the economic status of area families; to prevent migration by creating employment opportunities; to develop local management capacities; and to improve access to safe drinking water.

Open Doors to Nakhchivan: UNDP organised a visit of diplomats and businessmen to Nakhchivan in September 1998, with the aim of attracting investment to the region.

Capacity Building of Government Agencies: The World Bank is assisting the Government with privatisation, enterprise, legal, regulatory and budgetary reforms; with broadening the tax base; and with financial sector development.

Loans for Economic Reform: The IMF is supporting economic reform with resources from its Extended Fund Facility (total amount: 58.50 million, SDR 40.94 million drawn thus far) and the Enhanced Structural Adjustment Facility (93.60 million, SDR 70.20 million drawn thus far). Total lending in the 1998 programme year was SDR 46.78 million. Structural reforms under IMF agreements have included liberalisation of the foreign trade regime and of foreign exchange markets, legal reforms and restructuring of state-owned banks.

Petroleum Technical Assistance: The World Bank is financing advisory services to assist Azerbaijan in developing oil reserves in co-operation with foreign companies and to develop a framework for foreign investment in petroleum exploration.

Structural Adjustment Credit (SAC): The World Bank has provided the Government with one SAC, and is preparing a second. The SAC supports economic recovery while helping to introduce greater competition and flexibility to the economy by further developing the private sector, especially the non-oil sectors.

Technical Assistance: The IMF assists with banking regulation and restructuring; in payments system reform; in drafting a new tax code; and in development/ strengthening of the Treasury.

Individual and Small Business Loans: A UNHCR project will provide start-up loans and business training. UNHCR also provides training and start-up loans for Women's Centre Co-operatives to improve the economic conditions of IDP women in settlements.

Farm Privatisation: The World Bank has six pilot farm privatisation projects underway to accelerate land registration and state/collective farm restructuring through provision of farm credits, rehabilitation of irrigation supplies and support for the establishment of business centres. As of 15 November, 185 loans to private farmers had been sanctioned.

Youth Azeri Parcel Service (YAPS): UNICEF has initiated a non-profit, income-generating mail delivery service, managed and operated by disadvantaged youth.

Social Protection:
Azerbaijan experienced two natural disasters in 1998 - an earthquake and a severe flood - both of which presented urgent needs for assistance. The UN also continues to provide development assistance in response to the exceptional difficulties Azerbaijan has experienced in recent years as a result of the conflict in and around Nagorno-Karabakh.

Shelter Rehabilitation: UNHCR is coordinating resettlement efforts among the donors. An appeal for funding was issued in May 1998 to cover the first phase of the 2 year Programme for Shelter Rehabilitation for Displaced Populations Returning to War Damaged Areas. Resettlement of displaced families who can return safely to their villages of origin will be facilitated through the local provision of housing.

De-mining: A UNDP-initiated programme includes surveys, victim support, and public awareness campaigns in addition to de-mining operations. UNDP will help establish a mine clearing agency and assist it in developing independent capacities.

Summer Camp: UNHCR and UNDP share organisational costs of a summer camp for IDP children. The camp will improve their psychological well-being and cultural awareness.

Asylum System: UNHCR is assisting the Government to establish an asylum system consistent with international legal principles by promoting appropriate domestic legal instruments, including new laws on asylum and on NGOs.

Food Assistance: In 1998, WFP distributed some 13,000 tonnes of food aid to IDPs, refugees and vulnerable groups (a total caseload of 200,000, located in 40 districts throughout the country). Surveys conducted in 1998 showed that food security at the household level for IDPs covered by food aid remains at a critical level.

Migration Management: In 1998, IOM and the Government of Nakhchivan established a Capacity Building in Migration Management Programme with projects in policy and management, border control and migration information systems, legislation and procedures, refugees and IDPs, and labour migration. The Government has adopted laws on immigration, citizenship and labour migration.

Migration Sector Development: An IOM project is developing the capacity of migration sector NGOs through initiatives targeting administrative and institutional development. Also in 1998, a regional seminar - "Migration in Trans-Caucasus: Problems and Possible Solutions" - was held which included NGO participants from Armenia and Georgia; a Migration Resource Centre was established; and 22 migration NGOs attended a national conference to discuss migration management problems and solutions.

Azerbaijan Reconstruction and Rehabilitation Agency (ARRA): UNDP, the World Bank, and UNHCR have jointly assisted with institutional arrangements for the $120 million Programme for Resettlement and Reconstruction. There are six components of the project: support for voluntary resettlement of IDPs; reconstruction of housing; creation of employment; rehabilitation of health care facilities and schools; reconstruction of infrastructure; and institutional support for agencies managing the rehabilitation of IDPs, de-mining efforts, and reconstruction of war-torn areas. ARRA is responsible for implementing reconstruction activities in liberated territories. An International Advisory Group (IAG) co-chaired by UNDP, the World Bank, and the European Commission, has begun assisting the Government with donor coordination and policy formulation.

Humanitarian Mine Action Programme: UNDP is taking the lead in establishing this programme. Approval has been reached for $500,000 from TRAC 3 resources, and a $600,000 Government contribution has been confirmed.

Industrial Regeneration of Sumgait: A highly visible effort to promote industrial regeneration in the city of Sumgait was initiated by UNDP and the Government. However, external evaluations in 1998 revealed insufficient local commitment for continuation of the projects; thus, they were recently closed. It is unlikely that UNDP would get involved with another initiative of this kind without first addressing the issue of sustainability.

Earthquake Response: Following the 9 July 1998 earthquake which affected the southern regions of Azerbaijan, UNOCHA provided $20,000 under its disaster relief programme. Additional donations from various donors including UNICEF amounted to $44,000 for relief and response. A total of $49,000 (including UNOCHA money) was used to provide construction material for the worst affected families. The UNICEF money has been earmarked for repairing damages to sanitation, water and sewerage facilities of the main district hospital, as well as for nutritional and educational materials for the region.

Hospital Reconstruction: UNOCHA and UNDP are coordinating in constructing a hospital in the Gobustan district to replace the building destroyed by 1997 floods. The facility is being built with funds from the British Embassy and Ramco Oil Company.

Health and Education:
Economic difficulties during the transition period have resulted in meagre investments in education and scientific research: in 1997, only 3.6 percent of GDP was allocated to education, about half of the 1993 level. ( ) The primary UN health initiative is a project to build national and community-level capacity to prevent the spread of sexually transmitted diseases and HIV/AIDS. Funded jointly by five agencies, this project represents the most significant UN collaborative effort in Azerbaijan to date.

HIV/AIDS: In 1998, five UN agencies - UNDP, UNHCR, UNFPA, UNICEF, and UNAIDS - jointly contributed a total of $500,000 to combat the spread of HIV/AIDS. The project aims to increase public awareness and to build governmental capacity to implement an anti-AIDS programme.

IDP/Refugee Health Needs: UNHCR is addressing needs in reproductive health, family planning, safe motherhood, breast feeding promotion, and STD and HIV awareness. Medical kits and hygiene products are distributed, gynecological services provided through a network of clinics, and health personnel trained in family planning practices.

Iodisation of Salt: UNICEF advocates salt iodisation legislation to combat iodine deficiency disorder and has provided related equipment to the Absheron salt mines.

Maternal and Child Health: A UNICEF programme involves immunisation campaigns, health education, drug distribution to hospitals, anti-malaria efforts, and training for medical staff on immunisation and diphtheria case management, polio eradication strategies, breast feeding, and prevention of respiratory illnesses and diarrheal diseases.

Primary Health Care Reform: UNICEF has pilot projects in six districts and works closely with communities to improve the delivery of health services by focusing on management and financing mechanisms, organisational structure, and the use of infrastructure. UNICEF provides medicines, medical equipment, and other necessary supplies.

Psychological Assistance: UNICEF initiated a Children’s Help Line, an SOS telephone support line managed and operated by trained disabled people. In one year, the service handled 18,000 calls dealing with suicide, family problems, drug abuse, etc.

Reproductive Health and Family Planning: UNFPA works with the Ministry of Health to improve access to reproductive health services through procurement of contraceptives, medical equipment, and essential drugs. UNFPA is also establishing family planning clinics in six pilot districts: training is provided to health service providers to update their knowledge of contraceptive technology and reproductive health care.

Human Development Report: The annual Azerbaijan Human Development Report was launched by UNDP in October to considerable interest. The report gauges developments in a range of areas, including education, health, the environment, and the economy.

Computer Centres: UNDP has established computer centres in Baku, Sumgait, and Nakhchivan. These facilities benefit from the telecommunications expertise of UNESCO.

Anti-drug Initiatives: UNDP is strengthening the capacity of Government Ministries and law enforcement agencies involved in the struggle against drugs.

Population Census: UNFPA is providing the State Statistics Committee with technical training and computer equipment in preparation for Azerbaijan’s first independent census.

Country Population Assessment: UNFPA is preparing a report analysing national progress in population, health and family planning, and development. Programme activities are targeted at increasing access to modern methods of fertility regulation; at improving data collection, analysis and use; and at expanding youth-targeted educational activities.

Psycho-social Rehabilitation: Under a joint UNICEF, WFP and UNHCR psycho-social rehabilitation programme for preschool children affected by war, 38 centres in 11 districts have been established in IDP and refugee camps, covering 2,400 displaced children with food aid and 270 teachers with Food-For-Work. UNICEF provides materials and training. UNHCR has helped construct premises for these centres in the liberated territories.

Educational Materials/ Television Programmes: UNICEF supports the production of educational programmes for kindergarten-aged children, most of whom do not attend kindergarten. UNICEF and UNDP are jointly developing teaching manuals for an extracurricular course on the environment for primary school children. UNFPA and the Ministry of Education are developing a curriculum that focuses on preventing the spread of STDs and HIV/AIDS.

Peace and Tolerance Education: A UNHCR pilot programme targets up to 25,000 IDPs and refugees.

School Self-financing: UNICEF has projects to develop self-financing mechanisms in five schools. After helping to organise school communities and providing grants to match their contributions to school improvement, UNICEF now helps develop self-financing activities by assisting communities with business plans and providing resources to initiate financing projects. The projects have made notable improvements in school attendance.

Training for School Administrators: UNICEF subcontracts TACIS to provide training for school administrators on self-management and accounting principles.

Vocational Skills Training: UNHCR has provided a construction trade apprentice programme and vocational skills training to develop administrative, accounting, and computer skills in young IDP adults.

Promotion of UN Activities and Goals: UNDPI promotes understanding of UN initiatives and goals through its various activities [described in detail in Section 2.2, Part B]. UNDPI also arranged the media campaign for the September 1998 UNFPA/ECO Conference on Male Participation in Population and Reproductive Health Programmes. The conference promoted comprehensive population programmes in the countries of the ECO region.

Nagorno-Karabakh Bulletin: UNOCHA facilitates information exchange among govern-ment agencies and approximately 55 international humanitarian organisations. It also produces the Situation Report, a bulletin on Nagorno-Karabakh.

Civil Society and Governance:
Sustainable human development requires a system of governance that is participatory, transparent, accountable, effective, and equitable. The UN supports Azerbaijan’s progress in this area by promoting capacity building, strengthening of civil society, protection of human rights, and understanding of the country’s human development needs.

NGO Gender Bureau: UNDP supported the establishment of a Baku-based resource centre to provide encouragement, training, and organisational assistance to women’s NGOs.

NGO Resource and Training Centre (NRTC): Established in June 1998 in Baku, the NRTC (UNDP-funded, UNDESA-implemented) promotes development of national NGOs through provision of facilities (conference room, computers, library, and a national NGO database); training programmes for skill development and capacity building; and assistance with networking. Cooperation has been initiated with 76 national NGOs. Approximately 40 students have developed basic skills in strategic planning and fund management through participation in a two month course, while nearly 100 students have attended classes on NGOs and the UN.

Folkarts and Folklore: UNDP supports production of a catalogue of the national carpet museum collection, including a history of Caucasian textile arts. UNDP is also financing the translation of a traditional piece of Azerbaijani folklore, "Dedeh Gorgut".

Enhancement of Opera and Ballet Theatre: UNDP is pursuing initiatives including establishment of a trust fund: with private sector contributions, $250,000 was raised for building amenities, maintenance and promotion of the theatre’s programmes.

Human Rights: A UNDP project is assisting the Government in establishing a Human Rights Commission, helped to celebrate the 50th anniversary of the Human Rights Declaration, and is engaged in other activities related to the advancement of human rights.

50th Anniversary of Universal Declaration of Human Rights: This event had a very high profile in Azerbaijan [see details, Section 2.2, Part B]. In December, a major celebration took place in Baku with the participation of the President.

Conference on Women in Conflict: UNDP, UNHCR, UNIFEM, and the Government jointly organised a successful regional conference, "Women’s Rights are Human Rights" (18-20 May 1998) on women in conflict.

Humanitarianism and Peace Seminar: UNOCHA hosted a Local Capacity for Peace Project seminar. Problems/opportunities facing aid agencies in Azerbaijan were discussed.

Environment:
Recognising that protecting and rehabilitating the physical environment is an essential condition for human development, the UN is undertaking initiatives in the environmental arena. Regional and global concerns have begun to draw particular attention.

Asbestos: UNHCR will address problems of asbestos in building materials by utilising non-asbestos materials in all new construction work and by sealing and securely storing all asbestos-containing waste until a proper final disposal facility is available.

Baku Water Supply Rehabilitation: A World Bank project is making short-term improvements to the Baku water supply and will provide the basis for longer term planning and recovery of the system as a whole through demand management; supply, operations and maintenance improvements; and institutional capacity building.

Caspian Environmental Programme: UNDP, the World Bank, UNEP, and EU/TACIS are jointly preparing a regional Caspian Environmental Programme for all Caspian states.

Climate Change: A UNDP project is assisting the Government in preparing Azerbaijan’s first response to its commitments under the Convention on Climate Change.

Ozone Depleting Substances (ODS): UNDP is preparing projects to assist Azerbaijan in meeting commitments under the Montreal Protocol. Phasing out of ODS is occurring at the Chinar refrigerator plant in Baku and the Sumgait Compressor plant through initiatives aimed at recovery/recycling of refrigerants and establishment of halon banking.

Environmental Monitoring, Damage Assessment, and Database: UNDP is establishing an environment centre in Sumgait to distribute information and increase public awareness.

Urgent Environmental Investment: In June 1998, the World Bank approved a project to build a new sturgeon hatchery, decontaminate a heavily mercury-polluted area of Sumgait, test oil field cleanup methods and mitigate oil field pollution, and strengthen the capacity of the State Committee for the Environment.

1.4 Progress on Implementation of the Secretary-General’s Reform Programme

The UN Country Team agreed that a special working group would be established with the support of locally recruited international consultants to achieve the following objectives:

• Analysis of the ongoing programmes of UN organisations operating in Azerbaijan;
• Development of a Common Country Assessment (CCA) leading to a United Nations Development Assistance Framework (UNDAF).

In August, a "Joint Study of UN Activities in Azerbaijan" provided the first step toward the UN Country Team’s preparation of a CCA, and ultimately toward preparation of a UNDAF. The Study aimed to assess the extent to which UN activities in Azerbaijan are coordinated and to identify areas in which improved cooperation and synergies among the agencies could enhance the UN system"s overall effectiveness in addressing the country’s social, economic and political needs.
The Study found a strong sentiment among Country Team members that coordination and cooperation have greatly increased over the past year and that personalities and attitudes of agency heads make the difference between a coherent and a divided UN presence. Opportunities for collaboration among UN agencies in Azerbaijan can be expected to increase as emergency humanitarian activities are phased out and attention turns toward development, rehabilitation, and reconstruction. The synergy that has developed among UNDP, the World Bank and UNHCR in the effort to assist the Government with the enormous task of reconstruction and rehabilitation of war-torn areas provides an example of increased UN coordination within the country’s changing circumstances.

• The CCA is underway and will be finalised shortly. It is now a formal document.
• UNDP, UNICEF, UNFPA and WFP have firmly agreed to harmonise their programmes during the period 2000-2004.
• Office premises: To address an acute space problem, the Country Team members agreed to build a temporary (prefabricated) extension to the UN building. The building name will be formally changed to UN House following completion of the temporary extension. Possible long-term solutions are being jointly considered with the Government of Azerbaijan.
• Internet access has recently been installed and will be shared by most agencies in the UN building. A UN home page and home pages for each agency will be set up shortly.
• The LAN network system has been installed for all UN offices.

1.5 Composition of the United Nations system country team

1.6 Composition and Output of Theme Groups/ Inter-Agency Task Forces

Coordination of Interagency activities in the humanitarian field is facilitated through four different sectoral meetings which then report to the main Interagency meeting. In close consultation with all parties concerned, the meetings identify evolving requirements and gaps in meeting needs; they also highlight shortcomings and possible areas of duplication. All meetings occur monthly.

Sectoral Meetings:

Non-Food
The meeting is chaired by UNOCHA and attended by about 30 International NGOs, the Government counterpart and a few local NGOs. Topics include education, income-generating activities, agricultural projects, single shelter units, public building rehabilitation, water and sanitation, relief items distribution, community services development and any other relevant matters.

Food
The meeting is chaired by WFP and attended by about 15 NGOs (mainly international), the government counterpart and one or two local NGOs. It covers current food aid activities, vulnerable groups, security, the food situation in the country, nutritional matters and surveys, movement of IDPs and interventions from donors’ representatives.

Health
The meeting is chaired by UNICEF and attended by about 20 organisations - mainly international NGOs, but also the Ministry of Health and a few local NGOs. It covers reproductive health, expanded programme of immunisation (EPI), health surveys and malaria (particularly during the summer, when the problem emerges in certain areas of Azerbaijan).

Demining (Mine Action)
The meeting is chaired by UNOCHA. Because of the sensitivity of the issues raised, attendance is limited to only those agencies with active involvement in related programmes. This includes approximately eight international organisations and the representative from the national agency on Reconstruction and Rehabilitation of Azerbaijan. Mine information systems, demining, mine awareness/education and victim assistance are discussed.

Donor
The meeting is chaired by the European Community Humanitarian Office (ECHO) and is attended by approximately 10 international agencies and a few representatives from embassies accredited to Azerbaijan. It mainly deals with funding issues.

Ad Hoc: Post Earthquake Assistance (Natural Disasters)
From July until December, UNOCHA was chairing interagency meetings pertaining to the provision of assistance to the southern regions of Azerbaijan which were affected by the earthquake of July 9, 1998. The emergency assistance was phased out in December 1998.

HIV/AIDS
Chaired by the UN Resident Coordinator, the Theme Group is composed of core and non-core members. Core members are the heads of UNAIDS co-sponsoring agencies represented in Azerbaijan - UNDP, UNICEF, UNFPA, WHO, World Bank, and UNHCR. Non-core members are representatives of the Ministries of Health, Education, Youth and Sports, Labour and Social Security, and international/national NGOs. The Theme Group meets quarterly and assists in the promotion of information-sharing and in securing the involvement of other partners (relevant national bodies, NGOs/CBOs, bilateral/multilateral agencies, research institutions, groups formed by people living with HIV/AIDS, the private sector, etc.) in formulating a national response to HIV/AIDS.

InterAgency
The meeting is chaired by UNOCHA and attended by representatives of approximately 50 agencies (mainly international), the Government of Azerbaijan, and a few national NGOs. It updates current UN and NGO activities; summarises topics discussed at sectoral meetings; and reports on various surveys, studies, workshops and seminars, general humanitarian information, security, IDP/population movement and any other subject of interest to the humanitarian community. Depending on the issue of concern, an additional representative of the relevant government department may be invited. For example, in relation to increased concerns for the security of foreigners in Baku (following a series of robberies, assaults and vandalisms), a representative from the Ministry of Interior was invited to answer questions.
Interagency Task Forces:

UNICEF-Initiated (Education and Health)
In 1998, UNICEF initiated the formulation of a programme of cooperation with the Government of Azerbaijan for 2000-2004. Multi-sectoral Task Forces - under the coordination of the Ministry of Education and the Ministry of Health - were established with the participation of other ministerial bodies, international and national NGOs and UN organisations. The Task Forces aim to identify priority areas and possible interventions for preparation of a Master Plan of Operations (MPO) between the Government and UNICEF. Representatives of UN agencies - UNDP, UNFPA, WFP, UNHCR and the World Bank - participated in a number of meetings and workshops to identify opportunities for future common interventions in the fields of education and health. The Task Forces presented their first outcomes to a wide audience (including intersectoral attendance) at the MPO workshop.

UNHCR-Initiated (Health and Family Planning)
UNHCR hosts regular meetings of UN agencies and international NGOs with involvement in reproductive health and family planning activities. Support from UNFPA comes through provision of contraceptives and resource materials and cooperation in data collection.

Part Two of the Annual Report

2.1 Methodology for Report Preparation

The annual report was prepared through a fully participatory process that included frequent meetings with heads of agencies and meetings of a task force which incorporated the participation of heads of agencies. A UNDP focal point was responsible for obtaining, summarising and editing all information submitted.
Although Country Team members were cooperative and eager to participate in the report preparation exercise, pressing and ongoing work-loads did, at times, delay the work of the task force.

2.2 Self-appraisal of the UN Country Team based on the 1998 work plan

A. Have the members of the UN Country Team been fully committed to working together?

With the arrival of the new UNICEF Representative in January 1999, all Country Team members are now, to varying degrees, recent arrivals in Azerbaijan, as each has assumed his/her post within the past 16 months. However, after a warming up period, the UN Country Team members have shown a clear commitment to working cooperatively. Examples of this commitment in 1998 included: full participation of all Agencies in the first UN Country Team Retreat; contributions from five UN agencies (UNDP, UNHCR, UNFPA, UNICEF, and UNAIDS) to the launching of an initiative to combat the spread of HIV/AIDS; joint organisation - by UNDP, UNHCR, UNIFEM and the Government of Azerbaijan - of a regional conference on women in conflict (held in Baku, and incorporating Armenian participation); and joint meetings of Agency heads with high level Government officials on matters related to policy issues.

B. Has the UN Country Team reached the overall objectives and planned results set in the 1998 work plan of the Resident Coordinator system?

Support to collaborative/more integrated UN programming:

• An assessment of the ongoing UN programmes was completed in August. The study assessed the extent to which UN activities in Azerbaijan are coordinated and identified areas in which improved cooperation and synergies among the agencies could enhance the UN system’s effectiveness in addressing the country’s social, economic and political needs.
• Preparation of the Common Country Assessment will be completed shortly.
• Disaster Management Training for UN staff did not take place due to delays in national disaster management project approvals. It is expected that training will occur in 1999.

Follow-up to Global United Nations conferences:

• As a follow-up to the Beijing Conference, a regional conference on Human Rights and Gender and women in conflict, "Women’s Rights are Human Rights", was held in Baku in May. This very successful conference was financed by UNDP, UNHCR and UNIFEM and was attended by approximately 200 delegates from 13 regional countries, including a high-level delegation from Armenia. Informal meetings between Armenian and Azerbaijani officials were organised. UNDPI arranged the media campaigns for the conference.
• As a follow-up to the Cairo Conference, the Country Population Status Assessment for Azerbaijan has been completed. UNFPA and UNDP were the focal points for this initiative, which also incorporated the participation of all other Agencies within the Country Team.
• As a follow-up to the framework adopted at the May 1996 CISCON Conference in Geneva, representatives of UNHCR travelled to Geneva for CISCON steering group workshops, held between 15-18 June 1998. Presentations were made by four working groups, on the following topics: NGO legislation in CIS countries; humanitarian emergency assistance; repatriation and return of refugees; and refugee law and protection.

UN House and Common Services:

• Formal change of the name of the UN office building to UN House was delayed pending completion of an acutely needed extension of building space within the existing office compound. This will occur in 1999.
• Common use areas and facilities within the office building were improved in 1998. Renovations to the conference room and corridors were completed, and both the LAN computer network and internet access were installed. Agency home pages will be completed in 1999.

UN System Public Information and Advocacy:

• Outcomes of the World Youth Forum (August 1998, Portugal) and the role of youth in promoting and protecting human rights were discussed at a series of UNDPI-organised seminars and round-tables with local NGOs.
• The International Day for the Eradication of Poverty was commemorated with a week of UNDP-organised special events, including a sports event (incorporating National Olympic Committee participation); the launching of the 1998 Human Development Report for Azerbaijan; a visit to the International School of Azerbaijan; a public lecture at the Institute of Politology; and a round-table discussion on poverty in Azerbaijan, held at the NGO Resource and Training Centre.
• The UNDPI Representative held a series of human rights lectures, seminars and video screenings in universities and secondary schools. These were held within Baku, Ganja and several smaller villages in rural regions of the country.
• A quarterly UN Bulletin was produced by UNDPI to raise awareness of the UN in general, and the UN in Azerbaijan in particular. UNDPI also issued UN-system press releases; publicly broadcast UN video and audio tapes on Azerbaijani TV and radio; and provided interviews and articles on major UN issues to local newspapers.
• UNDP organised well-attended public concerts/performances to commemorate UN Day and International Women’s Day. A UNDP/UNFPA-organised concert to commemorate World AIDS Day was jointly funded through SRC funds, UNFPA and UNHCR.
• UNDPI translated and published the Universal Declaration of Human Rights in the Azeri language and jointly organised, with the Parliamentary Human Rights Commission, its launching in the Azeri Parliament in July. In December, a children’s art contest and a major celebration took place in Baku to celebrate the 50th Anniversary of the Declaration.
• UNHCR organised a series of seminars and conferences to improve the institutional capacity of local NGOs and expose them to the principles of international human rights law.
• UNDP organised a Children’s Environmental Forum to commemorate the 75th anniversary of the children’s environmental movement in Azerbaijan.

2.3 Appraisal of Headquarters’ Support Received in 1998

During 1998, the only increase in support from headquarters to the United Nations Resident Coordinator (UNRC) system in Azerbaijan was felt in the context of the UNDG and UNDGO subgroups. Materials produced and distributed by these groups are increasingly relevant and provided much needed policy and operational support to the functioning of the UNRC system in the field.
The UN Country Team members in Azerbaijan agreed that a pattern of increased institutionalisation of the UNRC system now exists and that the participation and support of various Agency headquarters is being felt. This is definitely a great improvement over the recent past. The Country Team feels that, while this growth of the concept, spirit and institutionalisation of the UNRC system is on the right track, there are still efforts needed for the system to be put on a strong foundation for long-term sustainability. In this context, more efforts are required to encourage the active participation of Agency headquarters through their respective representatives in order to allow the UNRC Team to function effectively. In other words, though personal and professional relationships between the Resident Coordinator and Country Team members are very important elements, efforts to institutionalise the UNRC system should continue. Such efforts should be actively supported by respective headquarters.
UNDGO might consider establishing a regular publication or circular letters of "Best Practices and Lessons Learned" in making the UNRC system a success.

2.4 Report on the Utilisation of Funds Allocated to Support Coordination Functions

In 1998, a total of USD$ 44,188.55 was spent to support coordination functions (figures in Annex I have been rounded up). Funds were allocated as follows:

Support to Collaborative and More Integrated UN Programming
A number of initiatives were undertaken in order to enhance the impact of the UN system in Azerbaijan. In particular, funds supported the hiring of a Secretary to the Opera Trust Fund and the "Open Doors to Nakhchivan" initiative - a visit of 120 diplomats and businesspeople to the Nakhchivan Autonomous Republic, with the aim of attracting investment to the isolated and underdeveloped region.

Follow-up to Global UN Conferences
Three seminars on HIV/AIDS awareness were conducted for UN staff.

UN House and Common Services
The fund supported the full participation of all Agencies in first UN Country Team Retreat (to Sheki, in northwestern Azerbaijan) in 1998. The weekend was designed to increase interagency collegiality and program awareness; overall, it was judged to have been a great success. The cost of printing directories of UN personnel in Azerbaijan was also covered. As the Agencies’ offices are not all located within one building, these booklets have proven extremely useful in enhancing coordination of Country Team members.

UN System Public Information and Advocacy
A number of public activities were held to commemorate UN-recognised special days and, in particular, the 50th Anniversary of the UN Declaration on Human Rights. Musical and children’s art competitions and a ceremony/musical programme (which the President attended and addressed) were organised in recognition of the Declaration. A week of public events were took place in connection with the International Day for the Eradication of Poverty; these included a sports event, school visit, public lecture, round-table discussion and the launching of the 1998 Human Development Report for Azerbaijan. Musical concerts were also held in recognition of UN Day, World AIDS Day, and International Women’s Day.

Activities in Line with the Secretary-General’s Programme for Reform
Funds to support coordination functions financed an assessment of ongoing UN programmes. The study was completed in order to assess the extent to which UN activities in Azerbaijan are coordinated and to identify areas in which increased synergies could enhance the UN system’s effectiveness. A Common Country Assessment is underway and will be finalised shortly.

2.4: Annex I

Report on the Utilisation of Funds Allocated to Support Coordination Functions in Azerbaijan for 1998

2.5 Annex II: 1999 Work Plan of the Resident Coordinator System in Azerbaijan

2.5 Annex II: 1999 Work Plan of the Resident Coordinator System in Azerbaijan