Richard Chirchir, Principal Digital Technology Specialist at Development Pathways, breaks down the technical components of Azerbaijan’s advanced information system for social security and lists several key lessons that other countries can take away.
This blog was written in collaboration with the Ministry of Labour and Social Protection of Population of the Republic of Azerbaijan—a special thanks to Sabina E. Huseynova and Elmira Hasanova for their feedback.
The global shift towards digitalisation is revolutionising social protection information systems, including those in low- and middle-income countries. Gone are the days of inefficient paper-based processes: digital technologies are now indispensable for enhancing efficiency, minimising errors, and enabling data-driven decision-making. Emerging technologies like generative AI are accelerating this transformation.
Azerbaijan is leading the way among middle-income countries with its exemplary digitalisation initiatives in social protection. As illustrated in Figure 1, and discussed below, its digital and integrated information system eco-system is anchored in three powerful components.
Figure 1: Key components of Azerbaijan’s digital and integrated social protection information system
Component 1: DOST Digital Innovations Center
At the core of Azerbaijan’s social e-services management is the DOST Digital Innovations Center (hereinafter referred to as the “Center”). The Center was established to accelerate the digitalisation of services offered to citizens by the Ministry of Labour and Social Protection of Population (hereinafter referred to as the “Ministry”), enhance existing electronic services, and manage all IT services from a centralised location.
Currently, the Ministry provides a broad range of 160 services to citizens, legal entities, and individuals. Already, 91.5 per cent of these services have been digitalised, improving convenience and efficiency for users. Among these, 56 services are delivered through a proactive service mechanism, showcasing an innovative and independent approach.
The Ministry’s services now reach more than 90 per cent of Azerbaijan’s population of over 10 million, ensuring near-equal representation across genders. The Ministry can register all newborn children, while the eldest beneficiary is a woman over 100 years old receiving an old-age retirement pension.
Component 2: Centralized Electronic Information System (CEIS)
Established in 2014, the CEIS automates key functions such as registration, beneficiary management, payments, and appeals. With 17 subsystems and robust registries for employment, disability, martyrs, and war veterans, the CEIS serves as a comprehensive digital backbone for social protection.
Component 3: Interoperability and Broader Registries
To ensure seamless information flow and efficient delivery of electronic services across the social protection sector, the CEIS integrates information resources and systems from over 80 state and private institutions. This integration process is facilitated through the utilisation of Digital Bridge, a centralised system for information exchange across the country.
In addition, the Digital login system, which functions as a single-sign-on (SSO), is utilised within the CEIS and its subsystems. The SSO offers multiple authentication methods, including E-Signature, face recognition-based Biometric signature, Personal Identification Number, and a USB Token.
As a result of the integration with the banks with which data is continuously exchanged, citizens can obtain a credit score within 30 seconds. With one click it is possible to organise insurance if someone has experienced an accident at work. It is also possible to proactively register into the social insurance system.
The integration of different sources of information means that the Ministry can exchange data with other institutions within a couple of minutes. This process used to take more than 15 days and sometimes months.
Lessons for Other Countries
Azerbaijan’s approach offers valuable insights for other countries aiming to modernise their social protection systems. Key lessons include:
- Robust Legislative Framework: Legal mandates, such as the CEIS framework, establish a solid foundation for social digital transformation.
- Strong Institutional Arrangements: Institutions like the DOST Digital Innovations Center and the Innovation and Digital Development Agency play pivotal roles in driving social digitalisation and intergovernmental integration respectively.
- Forward-Looking Strategies: The Digital Transformation Strategy (2023) consolidates digital investments and positions Azerbaijan as a global leader in e-government. The Socio-Economic Development Strategy (2022–2026) prioritises equitable protection and shock-responsive mechanisms.
- Advanced E-Government Systems: Platforms like Digital Bridge and e-Social portal enable seamless service delivery and data exchange.
- Commitment to Data Quality: Comprehensive linkages to 80 databases enhance data integrity and analytics.
- High Coverage Foundational IDs: Unique IDs are used throughout the lifecycle and are integrated with databases managed by the Ministry of Justice (birth, death and marriage registers).
- Reliable Hardware and Hosting Arrangements: Azerbaijan’s government cloud serves as the central hosting platform. The DOST Digital Innovations Center manages the security and administration of CEIS and other data systems.
Conclusion
Azerbaijan’s integrated and digital information system exemplifies how innovative governance, strategic planning, and cutting-edge technology can revolutionise social protection. Its success underscores the transformative power of digitalisation, offering a replicable model for nations striving to modernise their social protection frameworks and deliver better outcomes for their citizens.
[1] Azerbaijani: Dayanıqlı və Operativ Sosial Təminat Agentliyi (DOST) – Agency for Sustainable and Operational Social Security
References:
Chirchir R. and Barca, V. (2020) Building an Integrated and Digital Social Protection Information Management System: Technical Paper, GIZ.
OECD (2022) Promoting Enterprise Digitalisation in Azerbaijan, OECD Publishing, Paris. https://search.oecd.org/eurasia/competitiveness-programme/PromotingEnterpriseDigitalisationinAzerbaijan.pdf
Republic of Azerbaijan (2019) Regulations on the Centralized Electronic Information System of the Ministry of Labour and Social Protection of the Population. Presidential Decree.
Republic of Azerbaijan (2022-2026) Socio-economic Development Strategy.