Why Are There No Child Benefits in Azerbaijan?

Azerbaijan, a nation where post-Soviet welfare policies are often compared to those of its neighbors, finds itself at the center of a debate over the absence of state-provided child benefits. Unlike other former Soviet republics, Azerbaijan does not offer universal payments for children. This issue gained attention during the parliamentary elections in September 2024, as political candidates promised to push for the reintroduction of child benefits if elected to the Milli Majlis.

The absence of such support is striking, particularly in a country where, according to official statistics, an average of 619 children are born each day. In 2023 alone, 103,367 children were born over an 11-month period. Yet, state support for families with children remains limited to specific cases, and the broader social safety net has noticeable gaps.

Former Milli Majlis deputy Vahid Ahmadov has long been a vocal advocate for child benefits, describing them as essential for ensuring the well-being of Azerbaijan’s younger generation. While the country does provide targeted social assistance, Ahmadov has raised concerns that such payments often do not reach their intended recipients.

"Obstacles arise along the way, and the funds are misallocated to the wrong people," Ahmadov said during a session of the Milli Majlis. He argued that a direct system of child benefits would solve many of these issues, allowing families to "ensure a proper childhood for their children" and cover basic needs such as school supplies. Ahmadov estimated that monthly payments could range between 100 and 150 manats (USD 59 to USD 88), depending on family expenses.

The push for child benefits is not without precedent in the region. Economist Natig Jafarli, another proponent of the policy, pointed out the examples of neighboring Georgia and Armenia. In Georgia, 28.3% of families with children receive monthly payments of 200 lari (USD 75), with additional benefits provided by municipalities in some areas. For example, the Akhalkalaki municipality offers higher payments than the central government, including 250 lari for the first two children and progressively larger sums for each additional child.

Similarly, Armenia provides significant state support, paying 300,000 drams (USD 770) for the birth of the first two children and 1.5 million drams (USD 3,800) for the fifth and subsequent children. "These policies are designed to stimulate higher birth rates, something that Azerbaijan has largely ignored," Jafarli said.

In contrast, Azerbaijan’s current system is much more limited. The state offers a one-time payment of 500 manats (USD 294) at the birth of a child. Additional monthly benefits are provided for parents of disabled children or families with five or more children, but these are capped at 220 manats (USD 129) per month. For families with healthy children, the monthly assistance amounts to just 44 manats (USD 26) for children under 18 months and 28 manats (USD 16) for those up to three years old.

Child benefits for all families were eliminated in Azerbaijan in 2006. At the time, the government believed that the country had an excess labor force and that encouraging higher birth rates was unnecessary. As Sahil Babayev, the Minister of Labor and Social Protection, noted in previous comments, there was no need to stimulate population growth due to the lack of demographic concerns.

However, this assessment appears to be changing. Recent data indicates a decline in birth rates. In 2023, the birth rate fell to 11.1 per 1,000 people, down from 12.2 in 2022. Fazil Mustafa, a member of the Milli Majlis, has argued that Azerbaijan now faces a demographic challenge and that the government should reintroduce child benefits to encourage larger families.

While the debate continues, the question remains: will Azerbaijan’s leaders follow the path of their neighbors in offering more comprehensive support to families, or will the issue of child benefits remain a recurring point of contention in the country’s political landscape? The resolution may well hinge on the priorities of the newly elected parliament and the fiscal space available for such reforms.