Claim: Azerbaijan was the first democratic republic in the Muslim world.

Azerbaijan -LRB- -LSB- æzərbaɪˈʒɑːn -RSB- ; Azərbaycan -RRB- , officially the Republic of Azerbaijan -LRB- Azərbaycan Respublikası -RRB- , is a country in the South Caucasus region , situated at the crossroads of Southwest Asia and Southeastern Europe . It is bound by the Caspian Sea to the east , Russia to the north , Georgia to the northwest , Armenia to the west and Iran to the south . The exclave of Nakhchivan is bound by Armenia to the north and east , Iran to the south and west , while having an 11 km border with Turkey in the north west .   The Azerbaijan Democratic Republic proclaimed its independence in 1918 and became the first democratic state in the Muslim orient world . The country was incorporated into the Soviet Union in 1920 as the Azerbaijan Soviet Socialist Republic . The modern Republic of Azerbaijan proclaimed its independence on 30 August 1991 , prior to the official dissolution of the USSR in December 1991 . In September 1991 , the Armenian majority of the disputed Nagorno-Karabakh region seceded to form the Nagorno-Karabakh Republic . The region and seven adjacent districts outside it became de facto independent with the end of the Nagorno-Karabakh War in 1994 . These regions are internationally recognized as part of Azerbaijan pending a solution to the status of the Nagorno-Karabakh , found through negotiations facilitated by the OSCE .   Azerbaijan is a unitary semi-presidential republic . The country is a member state of the Council of Europe , the OSCE and the NATO Partnership for Peace -LRB- PfP -RRB- program . It is one of six independent Turkic states , an active member of the Turkic Council and the TÜRKSOY community . Azerbaijan has diplomatic relations with 158 countries and holds membership in 38 international organizations . It is one of the founding members of GUAM , the Commonwealth of Independent States -LRB- CIS -RRB- and the Organization for the Prohibition of Chemical Weapons . A member of the United Nations since 1992 after its independence , Azerbaijan was elected to membership in the newly established Human Rights Council by the United Nations General Assembly on 9 May 2006 . Its term of office began on 19 June 2006 . Azerbaijan is also a member state of the Non-Aligned Movement , holds observer status in World Trade Organization and is a correspondent at the International Telecommunication Union .   The Constitution of Azerbaijan does not declare an official religion and all major political forces in the country are secularist . However , the majority of the population are of a Shiite Muslim background . Most Azerbaijanis however , do not actively practice any religion , and the country has been seen to be one of the most irreligious countries in the Muslim world , with 53 % stating religion has little to no importance in their lives , according to Pew Research Center and Gallup polls . Azerbaijan has a high level of human development which ranks on par with most Eastern European countries . It has a high rate of economic development and literacy , as well as a low rate of unemployment . According to the Davos World Economic Forum , Azerbaijan 's economy has scored 37th place within 138 countries in 2016 . Global Competitiveness Index 2015 indicates that Azerbaijan scores highest in its region .   ASAN services , established with Presidential Decree , are countrywide known for eliminating bribery and corruption in the provision of public services . ASAN Service has been awarded with United Nations ' Public Service Award 2015 , which is the most prestigious award in the world in the field of public service delivery .   The ruling party , the New Azerbaijan Party , has been accused of authoritarianism and human rights abuses .