Azerbaijan National Public Opinion Survey on Remittances July, 2007 Methodology
Sample size 4,051 Azeri adults Dates of January 10 – February 16, interviews 2007 Languages of Azerbaijani and Russian (98 interviews percent) Hebrew, Turkish, Lezgi, Chechen, Tatar, Talysh, Avar, Tat, and Farsi (2 percent) Margin of error 1.6 percentage points 7 Demographics of Remittance Recipients 8 Age
18-24 20% 21% Adult 25-34 22% 21% population*
35-49 34% 31% 13% 50-64 19% Remittance recipients 10% 65+ 8%
0% 10% 20% 30% 40% 9 *State Statistical Committee of Azerbaijan Republic Gender
49% Adult population* Male 51%
48% Remittance Female recipients 52%
0% 20% 40% 60% 10 *State Statistical Committee of Azerbaijan Republic Monthly Household Income In New Manats
90 Manat or less 31% 23%
90 to 120 Manat 13% 16% Adult population 14% 120 to 200 Manat 18% 8% 200 Manat or more 8% Remittance recipients Don't know / No 34% answer 34%
0% 10% 20% 30% 40%
11 Official exchange rate is US$1 to 0.8694 new manats, National Bank of Azerbaijan Education
4% Primary school or less 3% 5% Some secondary school 6% Adult population Completed secondary 51% school 38% Some university or 22% technical school 28% Remittance recipients University graduate or 18% more 25%
0% 20% 40% 60% 12 Poll Sample
Polling was conducted in 7 of the 11 “economic regions” of Azerbaijan, which contain more than 80 percent of the Azeri population. Interviews were administered in both the urban and rural areas of these “economic regions.” { Baku { Absheron { Aran { Ganja-Gazakh { Lankaran { Shaki-Zagatala 13 { Dakhlik Shirvan Poll Sample
Polling was not conducted in the “economic region” of Guba-Khachmaz because of the extreme difficulties in surveying its low- density populations. It contains only 5 percent of the Azeri population. Polling was also not conducted in the “economic regions” of Nakhchivan, Yukhari Karabakh, and Kalbajar-Lachin because of security concerns. These “economic regions” contain about 14 percent of the
14 Azeri population. Regions
28% Baku 34%
Aran 26% 11% Adult 16% population* Ganja-Gazakh 6% 12% Lankaran 33% Shaki-Zagatala 8% 7% Remittance 6% recipients Absheron 4% 4% Dakhlik Shirvan 5%
0% 10% 20% 30% 40% 15 *State Statistical Committee of Azerbaijan Republic Urban vs. Rural
52% Adult population* 48% Urban
48% Remittance recipients Rural 52%
0% 20% 40% 60% 16 *State Statistical Committee of Azerbaijan Republic Remittances to Azerbaijan 17 Do you have any family members living in another country outside Azerbaijan?
34%
Yes No
66% 18 Have any of your relatives living in another country outside Azerbaijan ever sent you money?
9% Yes
No 25%
Do not have family 66% in another country 19 Remittance Recipients By Region
Lankaran 25%
Dakhlik Shirvan 11%
Baku 8%
Absheron 7%
Shaki-Zagatala 7%
Aran 5%
Ganja-Gazakh 3%
0% 5% 10% 15% 20% 25% 30% 20 Major Findings
Nine percent of Azeri adults – approximately 523,000 people – received remittances on a regular basis during 2006. 21 In which country does that family member or relative live?
Russia 79%
Eastern Europe* 4%
Central Asia** 4%
Israel / Iran / Turkey 4%
Western Europe*** 3%
USA / Latin America 2%
No answer 4%
0% 20% 40% 60% 80% 100% *Ukraine, Belarus, Estonia **Uzbekistan, Kyrgyzstan, Kazakhstan, Georgia, Turkmenistan 22 ***Germany, Netherlands, Great Britain What is your relationship to the person who sends you money?
Father or Mother 10%
Sister or Brother 25%
Husband or Wife 18%
Son or Daughter 23%
Aunt / Uncle / 16% Cousin / Other
0% 5% 10% 15% 20% 25% 30% 23 What is your relationship to the person who sends you money? By Gender of Remittance Recipient
Father or 9% Mother 12%
Sister or 27% Brother 22% Male
Husband or 2% Wife 33%
Son or 33% Female Daughter 14%
Aunt / Uncle / 21% Cousin / Other 12%
0% 10% 20% 30% 40% 24 How frequently does your family member or relative send you money?
2 times a month or more 4%
Once a month 22%
Every 2 to 3 months 30%
Every 4 to 6 months 16%
About once a year 16%
Don't know / No answer 12%
0% 10% 20% 30% 40% 25 Major Findings
The average Azeri remittance recipient receives money 6 times a year. 26 For how many years has this family member been sending you money?
Less than one 22% year
Between one and 22% three years
Between three 17% and five years
More than five 36% years
0% 5% 10% 15% 20% 25% 30% 35% 40% 27 For how many years has this family member been sending you money? By Gender of Remittance Recipient
Less than one 25% year 19%
Between one 21% Male and three years 23%
Between three 20% and five years 15% Female
More than five 30% years 41%
0% 10% 20% 30% 40% 50% 28 How much money – on average – does your family member send you each time? In US dollars
$100 or less 34%
$100 to $200 29%
$200 to $300 13%
$300 to $400 4%
$400 to $500 6%
More than $500 7%
Don't know / No answer 7%
0% 10% 20% 30% 40% 29 Major Findings
The average remittance to Azerbaijan is US$169. 30 Major Findings
The survey indicates that Azerbaijan received approximately US$530 million or €385 million during 2006. 31 Remittances
Country of family member Amount in remittances Russia €310 million Eastern Europe €17 million Central Asia €17 million Israel / Iran / Turkey €17 million Western Europe €14 million USA / Latin America €10 million Total €386 million 32 The Remittance Process 33 How do you receive this money?
At a bank 65%
Family member or friend traveling 22% to Azerbaijan
By mail 4%
At a remittance company 2%
By courier 1%
Don't know / No answer 6%
0% 20% 40% 60% 80% 34 How do you receive this money? By Gender of Remittance Recipient
71% At a bank 58%
Family member or friend 18% traveling to Azerbaijan 26% Male 4% By mail 5% 2% At a remittance company 3% Female 2% By courier 1%
0% 20% 40% 60% 80% 35 How satisfied are you with the services of the bank or remittance company?
Completely satisfied 73%
Somewhat satisfied 14%
Neutral 5%
Somewhat dissatisfied 3%
Completely dissatisfied 1%
Don't know / No answer 3%
0% 20% 40% 60% 80% 36 Approximately what portion of the money you receive do you spend on daily expenses?
All of it 67%
About three-quarters of it 9%
About half of it 8%
Less than a quarter of it 2%
None of it 7%
Don't know / No answer 6%
0% 20% 40% 60% 80% 37 Major Findings
Azeri remittance recipients spend approximately 80 percent of the money they receive on basic daily expenses such as food, housing, clothing, utilities and medicine. 38 Do you use this money for something else other than daily expenses? Buy or build a house 55%
Put aside for a rainy day 9%
Education 8%
Start a business 5%
Health / Life insurance 3%
Something else 5%
Don't know / No answer 17%
0% 10% 20% 30% 40% 50% 60% 39 How often do you communicate with this family member or relative – the one that sends you money?
Every day 9%
Once a week 28%
Once a month 35%
A few times a year 17%
Once a year 2%
Very rarely / Almost never 1%
0% 10% 20% 30% 40% 40 How many people, including yourself, benefit from the money you receive from your family member or relative?
1 person 9%
2 people 9%
3 people 17%
4 people 27%
5 people 13%
More than 5 people 15%
0% 5% 10% 15% 20% 25% 30% 41 Major Findings
Approximately 1.5 million Azeris benefit from remittances. 42 The Azerbaijan Banking System and Investment Potential 43 Overall, how do you see your family’s personal economic situation in Azerbaijan? Remittance Recipients
Excellent 13%
Good 16%
Mediocre 38%
Bad 19%
Very bad 10%
0% 10% 20% 30% 40% 44 Overall, do you have a positive or negative opinion of the banks in Azerbaijan? Remittance Recipients
18% Positive
10% Negative
Don't know / 72% No answer 45 Do you have a bank account? Remittance Recipients
23%
Yes
No
77% 46 Do you have a bank account? By Gender of Remittance Recipient
32% Male 65% Yes
15% Female No 82%
0% 20% 40% 60% 80% 100% 47 Do you have any investments in Azerbaijan? Remittance Recipients
Property 3%
Business 2%
Savings account 2%
None 93%
0% 20% 40% 60% 80% 100% 48 Remittance recipients “very interested” in financial investment products
Mortgage / Loan to buy house 33%
Health / Life insurance 28%
Open savings account 23%
Finance university education 14%
Loan to finance business 9%
0% 10% 20% 30% 40% 49