Azerbaijan’s performance on the twingoals has been commendable. The middle class has doubled insize and extreme poverty has almost been eliminated in thespace of a decade. At the same time, regional differencespersist, with significantly higher poverty rates in laggingregions, and Baku dominating overwhelmingly in terms ofshare of GDP. Disparities in welfare also persist betweenrural and urban areas as well as across social groups. Asthe share of the poor fell in the bottom 40 percent of thewelfare distribution, the share of the vulnerable hasincreased. All of this suggests taking a closer look at thechallenges facing Azerbaijan as it seeks to sustain and‘even out’ progress on the twin goals.