Azerbaijan produced 70 percent of the Soviet Union's oilfield equipment, and is trying to attract foreign investment into this sector so that it can become the dominant supplier both domestically and for export. Agronomic potential is strong, but economies of scale are lacking and the domestic market is undeveloped. The national infrastructure, however, is in poor condition. It was built in the Soviet period. Since independence, there has been inadequate public investment in, and maintenance of, public infrastructure.
Roads are inadequate and deteriorating.
The electrical generation and distribution system is in poor condition. Eighty percent of arable land is irrigated, but the irrigation system is collapsing. Baku experiences shortages of gas, water, and electricity. Elsewhere in the country electricity supply is inadequate, and gas is almost nonexistent. Public utilities are financially crippled by their inability to secure payment from their customers.