The well-known American economist, Daren Acamoglu, suggests four fundamental causes of economic growth across nations in his book titled “Introduction to Modern Economic Growth”. They are as follows: 1) luck; 2) geographical location; 3) institutions, and 4) culture. While applying those parameters to assess the economic situation in Azerbaijan, we can claim that the short-term economic growth of the country has been driven by two main fundamental causes in recent years. First, Azerbaijan’s citizens are lucky. Unlike its neighboring countries, Azerbaijan is one of the small countries in South Caucasus with 9 million inhabitants. It is endowed with natural resources, especially oil, gas and resources from mining. Second, Azerbaijan is a country of geographic importance for Europe as it is a country rich in carbo-hydrogen. In total, Azerbaijan is said to hold 7 billion barrels in reserve – 0.6% of the global reserves. It is also a country that has benefitted from being a transition country.