Switzerland, with its long-standing experience in neutrality and mediation, plays a crucial role in fostering peace and stability in the South Caucasus. Not only does it provide a platform for dialogue between conflicting parties, but it is also actively involved in supporting the region through various programs. One such initiative is the Swiss Cooperation Programme with the region, set to conclude in 2025. Launched in 2017, the program was extended to address the long-term challenges faced by Azerbaijan, Armenia, and Georgia.
Among the key priorities of the program are conflict resolution, human rights protection, and assistance in overcoming economic and social challenges. In the face of economic vulnerability, low diversification, and high inequality, Switzerland is helping to improve financial management, develop agribusiness, and support local economic initiatives. Special attention is given to measures for adapting to climate change.
Switzerland actively supports educational reforms, promoting the introduction of a dual education system that combines theoretical learning with practical skills, which contributes to improving the quality of life for the population. An important objective of the program is also to address the consequences of natural disasters, such as floods and landslides, which threaten the mountainous regions of Azerbaijan. The program helps these regions cope with migration challenges by creating new economic opportunities for local residents and reducing population outflow.
Switzerland’s Commitment to Azerbaijan
Cooperation between Switzerland and Azerbaijan began in 1999, when Switzerland provided humanitarian assistance to Azerbaijan in the aftermath of the Nagorno-Karabakh conflict, particularly focusing on supporting refugees and internally displaced persons (IDPs). In 2019, Switzerland and Azerbaijan celebrated the 20th anniversary of their bilateral relations, marking an important milestone in strengthening political, economic, and humanitarian ties between the two countries.
As the situation in Azerbaijan stabilized, Switzerland shifted its focus from emergency aid to long-term development projects. One of the key areas of cooperation was the restoration of rural regions, including the rehabilitation of the traditional kahriz water systems in Nakhchivan, which significantly improved access to clean drinking water for thousands of rural residents. Over a decade, this project led to the restoration of 125 kahrizes, supplying clean water to arid regions and promoting agricultural development.
In the central regions of Azerbaijan, such as Agdam, Tartar, and Beylagan, Switzerland launched projects to develop the agricultural sector and support small and medium-sized enterprises (SMEs), particularly in the dairy and feed industries. These initiatives helped improve access to high-quality seeds, increase farm productivity, and contributed to new economic growth in the region.
Since 2004, the Swiss State Secretariat for Economic Affairs (SECO) has increased its activities in Azerbaijan, focusing on economic reforms and financial sector development. One of its key achievements was the establishment of a private credit bureau and a movable asset registry system, which allowed SMEs to access credit under more favorable conditions. Switzerland also supported improvements in public financial management, public debt management, and macroeconomic stability in collaboration with local authorities.
Over 20 years of cooperation (1999–2019), Switzerland invested approximately 91 million Swiss francs in Azerbaijan. A substantial portion of these funds was channeled through SECO and the Swiss Agency for Development and Cooperation (SDC), which implemented projects in the agricultural sector, supported women entrepreneurs, and strengthened the country’s financial infrastructure. Switzerland also actively supported cultural projects in Azerbaijan, helping to develop the local art scene and enabling Azerbaijani cultural figures to integrate into the international stage.
Swiss Cooperation Program for 2017–2020
From 2017 to 2020, Switzerland actively contributed to Azerbaijan’s development through multilateral cooperation programs, focusing on improving the business environment, strengthening financial infrastructure, and fostering economic growth, particularly in rural areas.
One of the key achievements of the program was the establishment of a private credit bureau and a movable asset registry in Azerbaijan. These innovations significantly simplified access to credit for small and medium-sized enterprises (SMEs) and women entrepreneurs, who previously faced difficulties in securing financial support due to the lack of property. The movable asset registry allowed movable assets to be used as collateral, opening up new financial opportunities for many entrepreneurs, particularly in the agricultural sector.
The program also helped streamline financing for agribusiness. The introduction of a risk assessment tool related to cash flows in agriculture was an essential step for this sector, which employs a significant portion of Azerbaijan’s population. This tool enabled farmers and agricultural enterprises to access credit, which in turn boosted productivity and income in rural areas.
Agriculture became a priority in the Swiss strategy, especially given that many poor and vulnerable groups are engaged in this sector. The program supported systemic changes in agriculture, leading to job creation, income growth, poverty reduction, and decreased migration from rural areas to cities and abroad.
The program proved effective even during the COVID-19 pandemic. Amid a global recession, agriculture continued to grow, highlighting its importance for food security and sustainable economic growth in the country. The pandemic also demonstrated the need for further support for farmers and agricultural enterprises, which Switzerland addressed by improving access to credit and introducing new financial tools.
Active measures were also taken to reduce gender inequality in Azerbaijan. Women gained more opportunities to participate in economic activities thanks to improved access to finance and various educational initiatives. Three women’s resource centers were established, offering free courses and training, fostering women’s economic independence. The program encouraged private companies to adopt the Women’s Empowerment Principles (WEPs), motivating businesses to consider gender issues and create more inclusive working environments. As a result, 15 companies in Azerbaijan and the region adopted these principles, promoting gender equality in the labor market.
Switzerland also supported cultural initiatives through small grant programs. One notable project was the backing of Azerbaijani musician Shahriyar Imanov, who adapted 12 Western musical pieces and performed them on the traditional Azerbaijani instrument, the tar. This project contributed to the popularization of national culture and its integration into the international cultural context.
The key lessons learned from the 2017-2020 program confirmed the importance of flexibility and adapting programs to local conditions. Projects aimed at improving economic conditions and involving women in the workforce required close cooperation with local authorities and private companies. Switzerland demonstrated that integrating women into economic and social life not only promotes economic growth but also strengthens social ties, which in turn reduces social tension and supports stability in society.
Swiss Cooperation Program for 2022–2025
The Swiss Cooperation Programme for the South Caucasus Region 2022–2025 is a comprehensive initiative aimed at supporting sustainable development across the region. This program is structured around four central objectives: fostering civic engagement and regional cooperation, strengthening democratic institutions and public governance, promoting economic growth with a focus on creating quality employment opportunities, and enhancing resilience to climate change through sustainable management of natural resources. A key priority across all Switzerland-funded projects is poverty reduction, with an emphasis on its integration wherever feasible. Additionally, the programme highlights the importance of fostering regional collaboration.
Building on the successes of the previous program period (2017–2020), this new phase continues to be implemented by the Swiss Agency for Development and Cooperation (SDC), the State Secretariat for Economic Affairs (SECO), and the Department of Peace and Human Rights (PHRD). These agencies work closely with the Swiss embassies in Azerbaijan, Armenia, and Georgia to ensure effective coordination. The total budget for the programme amounts to CHF 80.22 million, with SDC contributing CHF 62.62 million, SECO CHF 12 million, and PHRD CHF 5.6 million. The program is managed from Tbilisi, and its progress is monitored through the MERV system, which tracks key economic, social, and political developments in the region.
In Azerbaijan, the focus is on improving the business climate, creating jobs, supporting small and medium-sized enterprises (SMEs), and addressing climate change and natural resource management. Special emphasis is placed on reducing gender inequality and promoting the economic and social development of women through the creation of resource centers and support for female entrepreneurship.
The program supports SMEs and agricultural producers by focusing on new value chains, improving access to credit, and developing innovative financial instruments. These efforts help SMEs adapt to changing market conditions and enhance their competitiveness. Additionally, the program prioritizes vocational education to improve workforce qualifications and reduce unemployment, especially among youth and women. The program fosters a favorable environment for the development of agriculture and increased labor productivity.
A key direction of the program is sustainable natural resource management and climate change mitigation. In Azerbaijan, the emphasis is on managing forests, water resources, and biodiversity. Switzerland actively supports the introduction of best practices in this area and adaptation to climate change. The program includes research initiatives aimed at preventing natural disasters and protecting mountain regions.
Furthermore, the program seeks to improve the efficiency, transparency, and accountability of Azerbaijan’s government institutions. Support for financial management reforms and the improvement of the tax system contributes to macroeconomic stability and lays a strong foundation for long-term economic growth.
Further Contributions to Azerbaijan’s Development
In addition to the broad objectives outlined in the Swiss Cooperation Programme for the South Caucasus, Switzerland is also supporting Azerbaijan through several targeted projects. These initiatives, running from 2021 to 2028, cover a wide range of areas from economic empowerment of women to improvements in financial infrastructure and business development. The following programs highlight Switzerland’s multifaceted approach to Azerbaijan’s sustainable development.
Women’s Economic Empowerment in the South Caucasus (WEE)
Period: 01.09.2024 – 31.08.2026
This program aims to expand economic opportunities for women, especially those facing social isolation. In Azerbaijan, WEE helps integrate women into the formal economy through the development of professional skills, improved access to markets and resources. The program emphasizes the need for gender-sensitive policies to enable women to participate actively in economic life. It is expected that 785 women in the region, including Azerbaijan, will benefit from programs focused on entrepreneurship development and improved working conditions.
Regional Arts and Culture Project in the South Caucasus
Period: 15.11.2021 – 31.10.2025
This project supports the development of contemporary forms of art such as documentary films, theater, and photography. In Azerbaijan, the initiative strengthens cultural ties and promotes intercultural dialogue, helping to challenge social stereotypes and strengthen civil society. Additionally, the project facilitates the expansion of cultural cooperation between the countries of the region, including support for artists and cultural initiatives.
Small Business Impact Fund, Phase II
Period: 01.12.2022 – 30.11.2027
The goal of this program is to enhance the competitiveness and resilience of small and medium-sized enterprises (SMEs) in Azerbaijan. In the context of global instability caused by the pandemic and the war in Ukraine, access to finance has become a key issue for SMEs. The Swiss initiative aims to address this problem by providing business consulting, improving access to financing, and supporting women’s entrepreneurship. Notably, the program focuses on green economy initiatives and the digital transformation of SMEs.
Global Financial Infrastructure Programme, Phase II
Period: 01.07.2022 – 30.06.2027
This program aims to improve financial infrastructure to facilitate access to credit for small and medium-sized enterprises, especially in developing countries like Azerbaijan. The program includes reforms aimed at creating credit information systems, improving procedures for collateral management, and debt restructuring. As a result, private sector productivity is expected to increase, along with the creation of new jobs.
Financial Management Umbrella Trust Fund
Period: 01.01.2022 – 31.12.2028
This fund focuses on public financial management and corporate financial reporting. In Azerbaijan, the program supports reforms to ensure transparent and effective management of public resources, which is critical to stimulating sustainable economic growth. The program strengthens public financial management systems and corporate governance, thereby improving the country’s investment climate.
Medium Term Budget Planning Framework Azerbaijan
Period: 01.02.2021 – 02.02.2026
This project focuses on improving medium-term budget planning in Azerbaijan. It aims to enhance the efficiency of public spending, the predictability of the budget process, and the sustainability of the economy. A key objective is to improve macroeconomic forecasting and public investment management, contributing to greater transparency and accountability in budgetary policy.
Examples of Successful Projects
Support for Small Business
Sevinj Jangirli, a young entrepreneur from the village of Bina, is a prime example of how Swiss support can help turn dreams into reality. Sevinj began her career in marketing and social projects but always dreamed of starting her own business. Two years ago, she became interested in pottery but quickly realized that there were no professional training opportunities in Azerbaijan for this craft.
With no other choice, she started learning pottery through online resources, such as YouTube, and with the help of her fiancé, Saleh Kasymov, who supported her throughout this endeavor. Together, they started creating pottery products, which eventually led to the creation of their brand “Rangli” in 2021.
The Swiss-funded project “Women’s Economic Empowerment,” implemented by UNDP, provided Sevinj and her fiancé with essential equipment, including a pottery wheel and kiln, which allowed them to significantly expand production. This project not only elevated “Rangli” to a new level but also played a crucial role in the revival of traditional crafts in Azerbaijan. Sevinj emphasized that the success of her business was largely possible thanks to the support of her fiancé and family, which is a rarity for many women in Azerbaijan.
Women’s Resource Centers (WRC)
© UNDP Azerbaijan/Elmar Mustafayev
The Women’s Resource Centers (WRCs) aim to empower women in rural areas of Azerbaijan by offering opportunities for training, skill-building, and entrepreneurial development. Since the program’s start in 2018, 115 women-led businesses have been established, 30 of which are in the Gusar region. Nearly 700 women have participated in training sessions, focusing on improving their business and entrepreneurial skills.
In March 2019, a second WRC was inaugurated in the Khazar district of Baku, marking a critical advancement in the program’s mission to support women’s economic independence. Funded by Switzerland in collaboration with the United Nations and local authorities, the center provided training to over 400 women at its launch, helping them acquire the skills needed for employment or to start their own businesses.
Through the program, women received courses in financial literacy, entrepreneurship, resume building, and other essential skills, enabling many to launch their own enterprises. Additionally, the initiative promoted gender equality and enhanced women’s roles in the economy by fostering partnerships with private companies.
Empowering Women in Nakhchivan
On March 1, 2022, a new project titled “Educating Women for Family Welfare” was launched in the Nakhchivan Autonomous Republic, initiated by the Azerbaijan Microfinance Association (AMFA) with Swiss support. This project aims to improve women’s financial literacy and employment opportunities through training and the provision of seed capital. It is expected to reach 128 women and their families. The project is focused on enhancing the economic independence of women in Nakhchivan, which is a key part of Switzerland’s strategy to support economic and social development in the South Caucasus region.
Cultural and Humanitarian Initiatives
Disability Fashion Show – This unique project was designed to support individuals with disabilities by creating custom-made adaptive clothing tailored to their specific needs. The highlight of the project was a fashion show held in Baku, where models with disabilities showcased their collections. The event helped raise awareness about the challenges faced by people with disabilities and their need for specialized clothing.
Animafilm Festival – A yearly animation festival with a focus on climate change. In 2022, the festival featured over 120 films from around the world, emphasizing climate change and ecological sustainability. It attracted both local and international participants, raising important environmental issues through the medium of animation.
Gender Graph – An educational project aimed at engaging young artists in creating works that address important social topics such as gender equality and domestic violence. This project helped bring these issues into the public discourse by combining art with social activism.
Hidden Stories – A series of theatrical performances and short films aimed at challenging gender stereotypes. The project spanned six regions of Azerbaijan, where plays and films addressing women’s roles and gender inequality were showcased. These performances sparked important conversations on breaking down traditional gender roles.
New Generation of Female Screenwriters in Azerbaijani Cinema – This program was aimed at increasing female representation in the Azerbaijani film industry, where men traditionally dominated. Eight women were selected for training in screenplay writing and were given the opportunity to present their work in Baku. The project provided valuable resources and support for women entering the male-dominated field of cinema, encouraging a stronger female presence in the industry.
Conclusion
These examples represent only a few of the significant contributions Switzerland has made during 25 years of cooperation with Azerbaijan. In this review, we focused on two key programs to illustrate how Switzerland continues to be a reliable and committed partner in Azerbaijan’s development, contributing to the country’s economic progress, social development, and cultural exchange. Looking ahead, this partnership will continue to strengthen, reflecting the mutual respect and cooperation between our nations.
This article utilized data, including from the Swiss State Secretariat for Economic Affairs (SECO) and the Swiss Agency for Development and Cooperation (SDC).
