DRC established its operation in Azerbaijan in 1996. Donors for DRC in Azerbaijan today are EU/ECHO and StatoilHydro.

DRC interventions in Azerbaijan seek to obtain the maximum participation and empowerment of the target group. Priorities are set in collaboration with the recipient communities. Women and other vulnerable groups are prioritized. The programs have the overall objective to improve the livelihood of IDPs and other conflict-affected population groups in Azerbaijan.

DRC in Azerbaijan is implementing projects in 4 areas:

Micro Enterprise Development
DRC has been running income generating projects for refugees and IDPs since 1997. DRC founded a non-banking credit organization Caucasus Credit LLC (CC). In the beginning along with wholesale lending to MFI partners, Caucasus Credit continued providing retail loans to its clients, however soon CC switched solely to wholesale lending to its partner micro-finance institutions. While remaining under DRC’s supervision CC has been engaged in activities aimed at “provision of viable institutional support to economic activity of the conflict-affected population”.

Nowadays CC provides financial and non-financial services to local microfinance institutions, seeking to strengthen their response to demand for micro-financial products and services among IDPs and vulnerable communities in Azerbaijan.

Various types of CC product include micro loans (groups and individuals); training, consultancy and micro business related analysis. CC is targeting 2500 direct beneficiaries and 7.000 indirect beneficiaries per year.

Small and Medium Size Enterprise Development program
The program enables DRC to improve self reliance of IDPs and boost economic activity in government funded new IDP settlements in two regions of Azerbaijan in 2007-2008 (Agdam and Fizuli) and in five regions of Azerbaijan in 2009 Agdam, Agjabedi, Bilasuvar, Beylagan, Mingechevir).

More specifically the program results i

• Increased employment and self-reliance activities of IDPs
• Establishment of economic linkages among NGFS and district economy
• Increased market driven development of businesses and business growth
• Increased utilizations of local resources

DRC has identified differences in the level of economic potential of the IDPs residing in different regions of Azerbaijan and in various types of settlements. It has been found out that new government funded settlements (NGFS) are located in rural areas and most of them have limited potential for economy growth in general and SME development specifically.

The results of the IDP livelihood survey undertaken by DRC have further confirmed that IDPs populating the NGFS are most disadvantaged in terms of access to income-generating activities.

IDPs participating in the program must meet certain business related criteria. First of all, the business idea is judged on the likelihood of sustainable jobs being created. Secondly, in order to confirm strong motivation for business development and ensure economic sustainability of the business an IDP must put in his own contribution to the DRC grant.

Humanitarian Assistance to Refugees
Still, after 10 years of displacement the humanitarian and protection situation among Chechen refugees remains poor.

The needs of Chechen refugees are many, acute and diverse. Unable but also largely reluctant to integrate, the Chechen refugees are extremely vulnerable and heavily dependant upon assistance provided by international organizations.

The humanitarian assistance action by DRC includes distribution of monthly food packages to around 1400 refugees, i.e. all Chechen refugees registered with UNHCR and eligible for assistance. The food distribution is considered supplementary to the financial assistance provided by UNHCR and comprises the basic food commodities of every day use.

Through education support DRC used to provide assistance to the Chechen educational center, which is kept operational, extending formal education to drop-outs and children with special needs, additional tuition to Azerbaijani school attendees, special courses and extra-curricular activities. Funding this project has significantly been decreased with the consequence that the Danish Refugee Council no longer has the means by which to support the education center beyond the end of June 2009.

Surveys, data collection and advocacy
Through out the years DRC has always made an effort out of being able to document the living situation of IDP’s and refugees in order to be able to advocate for their rights on the basis of facts and solid information.

The latest surveys that DRC undertook aimed at documenting the living conditions of IDPs in the regions bordering Nagorno Karabakh, and of the Chechen refugees residing in Baku and Sumgait, both in comparison with the non-displaced populations the same places.