Azerbaijan today faces challenges as well as opportunities in its strive for human development. As the second Human Development Report being published by the UNDP in Azerbaijan, the 1996 Report outlines the basic elements for a human development strategy, albeit in broad terms. In specific, the report covers the issue of human settlements in Azerbaijan, emphasizing on the situation of internally displaced persons (IDPs) and refugees. Furthermore, to increase the awareness among policy makers and others, problems evolving around health, environment and gender are discussed. Finally, the report gives a general overview on poverty in Azerbaijan.