Azerbaijan’s economy is heavily reliant on exports, a factor that had great influence over the impact of the 2009 Global financial and economic crisis. Oil and other energy products are Azerbaijan’s major exports to other countries, accounting for more than half of its GDP and play an important role in keeping the economy stable and functioning. The international crisis had a large impact on Azerbaijan’s economy through the lowering of oil prices. A large dependence of the economy on oil prices was seen through the 37% drop in oil prices from 2008-2009 during the financial crisis. This enormous drop in oil prices led to another tremendous change in Azerbaijan Terms of Trade causing a drastic drop in their account surplus from 33.7% of GDP in 2008 to 23.6% of GDP in 2009. More evidence also shows how much of an impact oil prices have on Azerbaijan. The state oil fund of Azerbaijan had serious revenue reductions. Revenue of AZN 11.8 Billion in 2008 fell drastically to AZN 8.2 Billion in 2009. Currency values also affected Azerbaijan and its economy. Azerbaijan had a much lower influx of the US dollar from oil exports after the crisis. This can be attributed to the Manat. The Manat did not devalue against the Dollar, causing the nominal GDP of the manat to decline. Azerbaijan was also affected by lack of demand for non oil products by their trading partners. Case Network EU shows a drop in non-oil exports reaching 21.9% yoy (Year over Year) . This was mainly caused by GDP decline or growth slowdown of major trading partners. Some examples of trade partnership declines were Russia, Turkey, and Georgia. Russia’s GDP fell by 7.9% yoy in 2009, Turkey’s fell by 4.7% yoy in 2009, and Georgia’s fell by 4% in 2009. Azerbaijan has not been hit as hard by the economic crisis as many other countries.One subtopic that Azerbaijan should focus in order to survive the 2009 economic crisis is the trade subtopic, focusing especially on the discussion of protectionism and trade barriers. Since Azerbaijan’s is heavily reliant on trade and especially its oil exports, it is of the greatest importance to make sure that the major trading partners of Azerbaijan (such as Russia) do not pass protectionist policies or tariffs on Azerbaijani oil in order to attempt to preserve its own industry. Another important area to consider in the trade subtopic is the area of natural resources. As stated previously, Azerbaijan is a nation that is very dependent on its natural resources such as oil to finance its economy. This is important because once again, countries that are dependent on natural resources in their economy are greatly impacted by economic crises such as the one seen in 2009. Another subtopic that Azerbaijan needs to pay attention to is confidence in financial institutions, in particular the part that focuses on the liquidity and solvency of financial institutions. This subsection is important because Azerbaijan has recently faced issues such as a decrease in the liquidity of banks and a drop in the return of assets and return on equity in it’s banking system. This is very concerning considering that banks make up 70% of the non oil based GDP. Due to banks taking up a large portion of Azerbaijan’s finances, even minor problems can have devastating far reaching effects.One of Azerbaijan’s main areas in need of recovery from the crisis is the non-oil sector. One way that Azerbaijan can attempt to improve its non-oil sector is by providing aid to its major trading partners to assure that they can recover successfully. These trading partners include Russia, Turkey, and Georgia. Azerbaijan must encourage the delegation to make positive changes which will help both Azerbaijan and its major trading partners. Another thing that must be done to help Azerbaijan is to keep the Manat stable against the US dollar. To do this Azerbaijan must resist depreciation pressure on the Manat. Foreign exchange sales of the Manat would be very beneficial. This helps combat depreciation of deposits and appreciation of debts in foreign currency. Another action that Azerbaijan should take is to focus on expanding other non-trade related industries. As stated previously, countries that rely mainly on exports (especially natural resources such as oil) are the ones that are the most affected by crises such as the 2009 global economic crash. First of all Azerbaijan needs to deal with restoring it’s banks. It can do this by temporarily not taxing banks in order to increase their profits, attempting maintain public confidence in the banking system and looking into other more stable resources such as Islamic banks. Azerbaijan can also look to expand into other industries such as tourism. Tourism is a very profitable industry and one that has massive potential in Azerbaijan due to various natural and cultural factors. With a warm climate and long stretches of coastline, Azerbaijan has the potential to attract large amounts of tourists from neighboring countries like Russia and Iran. Finally, Azerbaijan needs to look into expanding its agriculture. Despite about 40% of Azerbaijanis working in agriculture (with only about 1% working in the oil sector), it is only the third major industry in the nation. Agriculture plays a massive role in helping eliminating poverty in the rural areas of Azerbaijan, and further investment into it will help not only diversify and strengthen the Azerbaijani economy, but also greatly increase the quality of life.