Azerbaijan, oil-rich country along the shore of the Caspian Sea and one ofthe fifteen republics ofthe former Soviet Union, has been paid little
attention from the Japanese academic world of economic researches. After the collapse ofthe Soviet Union, Azerbaijan had been suffering
from the war with Armenia on Nagorno-Karabakh, the conflict in Chechenya of Russia, domestic political unstability, high rapid inflation
and the sharp decrease of production. The close of the boundary by Russia deepend further the economic crisis. It was the most urgent need for Azerbaijan to launch the establishment of the new state regime, a macro-economic satabilization and economic structural reforms. But it was almost impossible for Azerbaijan because of the war with Armenia. After six year war, in 1995, Azerbaijan launched a macro-economic satabilization and it's result is impressive in the suppression of inflation. But structural economic reforms have been stagnating in privatization, agriculture and enterprise restructuring, and production decrease has been continuing. In 1996, the structural economic reform program has started. Now, Azerbaijan is standing on the initial stage of the systemic transformation into a market economy.