The entire Azeri population of 250,000 was forced to leave 22 regions of the Republic of Azerbaijan and set their hopes on Azerbaijan at the first stages of the conflict in 1988-1989. In the process of uring these resettlement years 410 Azeri people were subjected to tortures by the Armenians executioners, including 57 women, 23 children who were brutally killed, received different physical injuries, and their houses and properties were ransacked. In total, 9 thousands sq. km. of the territory where Azerbaijanians lived was occupied.

The natural increase among the population of the occupied territories fell steeply, children death-rate rose because of the deterioration of living conditions. Compared to the figures from 1989, birth rate fell abruptly in all occupied regions in 1998. During the same period, death rate grew and natality per 1,000 persons strongly reduced. This decrease (for every 1000 persons) was in all regions between 11,2-22,6 men. Natural incresment of the population of Jebrayil, Gubatly, Zangilan and Aghdam in new settled areas much more fell off in shown years (between 16,9 and 22,6 men). Demography rate in occupied regions were lower than the middle level of the Republic.

The main reasons of the natality decrease in the occupied regions: too hard social and economic conditions, life conditions of the mountainous and foothills zones; uncompability with the warm climate in low-lying areas and others.

One of the important problems of the refugees and settlers connects with unemployment difficulties. According to the information of the Refugees Committee of the Republic of Azerbaijan 301359 in number were able-bodied refugees and IDPs, 196380 of them or 65,2% of all working resources are out of work.

74 thousand of IDPs because of lack of the necessary conditions lived in tent towns; 99 thiusand in prefabricated houses settlements; 17,5 thousand in public buildings, schools, nusery schools and in hostels; 20,2 thousand at their relatives; the rest are in occupied flats; in unfinished buildings, farms; freight cars and barely on the edge of roads (1999).

Lack of normal heating, electric-power supply, hygiene and sanitary conditions pose a hazard to health of born children, their parents in such refugee's locations.

So, as a result of the aggression of Armenia more than 1 million in number became refugees and IDPs, 20 thousand perished, 50 thousand became the invalids, 5,1 thousand (according to June 1st, 1992) were taken hostage and were missing, natality in occupied territories fell to 22-26 in number (for every 1000 men).
The decree concerning the development of productive forces in the mountainous regions, including Daghlig Garabagh autonomous area was passed before the beginning Daghlig Garabagh conflict. There were intensive construction works going on in Daghlig Garabagh and the occupied regions at time of the beginning of the conflict. Large-scale enterprises were opened and new machinery and transport vehicles were delivered to the area. Large enterprises producing building materials and marble factory were also built in Daghlig Garabagh. The entire material-technical basis established for new construction projects was destroyed and none of the potential projects were implemented as a result of Armenian occupation.

The industries of the occupied areas played an important role in the economy of Azerbaijan. Food, light industry and building enterprises were strongly developed.

Large agricultural and natural resources produced the most positive impact upon the development of the foregoing branches.

Butter-cheese, wine making and partly light industries of great importance provided the population with food-stuffs and were the most developed than other industrial branches in occupied territory. Daghlig Garabagh Autonomous Region because of it industrial branches structure and the development level took the 4th place among the economical regions of former Azerbaijan SSR (Absheron, Ganja-Gazakh, Nakhichevan AR).

The industrial potential of the occupied regions was mainly concentrated in the area of Daghlig Garabagh Autonomous Region. Most of the industrial and building enterprises (137 enterprises) were located in this area. It produced 40% industrial product in the occupied areas and concentrated 18.7% of key assets. Fizuli and Agdam regions had 5% industrial product and 41% key assets. The place in industries and construction sector was occupied by Aghdam and Fizuli administrative regions (51% industrial product and 41% key assets). The industry of the remaining five administrative regions - Lachin, Kelbejer, Jabrail, Gubadly and Zangilan was too weak. 27% of common industrial products, 3,4% of key assets in 1988, in Azerbaijan formed a share of occupied regions. 

The occupied regions had the following specific weights in the Azerbaijan SSR:

Materials for the walls building - 11,0%, building lime - 7,8%, building materials - 3,0%, shoe - 11,0%, meat - 5,0%, tinned foods - 6,9%, cow's milk - 25,2%, wine materials - 35%, raw silk - 13,5%, wool - 19,3% mineral water - 11,5% and etc.

Istisu and Turshsu mineral water-packing enterprises, Karabakh and Agdam marble, faced stone factories, high-quality and widely popular wines Agdam and other products of wine factories, butter-cheese enterprises, weaving mill, shoe factory, Karabakh silk Complex and others showed their activity in these regions. More than 50 branches of Baku enterprises remain in the occupied areas. In total, over 183 industrial and 127 construction enterprises are remaining in the region.

Communication objects: powerful communication lines and objects have been established in the region. 25,000 km of motor and country roads, 160 bridges with a total length of 3,984 m; electric lines with a total length of 14,500 km, 2,500 transformers, 2,300 km of water pipes, 2,000 km of gas pipes, 240 km of sewage lines, 160 water basins, more than 34 gas distribution stations and phone stations for 35,000 numbers were destroyed in the area.

At present, there are four airports, Baku-Agdam and Horadiz-Nakhchyvan gas pipelines and other strategic objects left in the occupied areas.

So, more than 310 industrial and building objects left in the occupied by Armenia regions. These objects gave 11,0% of wall materials, 11% of shoe production, 25,2% of cow' butter, 35% of wine materials, 13,5% raw silk, 15% of mineral waters and others produced in Azerbaijan.