As a result of the 1991 collapse of the USSR, Azerbaijan regained the inde-pendence it had lost in 1920. The republic immediately decided to make a defi-nitive break with its Communist past, completely dismantle its Soviet-style political system, and create in its place a politically stable and economically prosperous democratic state. It is true that Azerbaijan, like other countries from the former Soviet Union, faced many obstacles as it took its first steps toward independence, such as the lingering consequences of the savage, difficult conflict with Armenia over Nagorno-Karabakh and the collapse of its economy. But the Azerbaijani people felt a real sense of optimism at that time. After all, the republic was flush with oil and gas, which allowed Azerbaijanis to believe that the many economic problems they would have to face during the transitional period after the fall of the Soviet Union would be resolved relatively painlessly, and their political problems could be solved as well. What has this complex, 20-year process been like in Azerbaijan? What changes has it brought and has Azerbaijan been able to make use of this window of opportunity to build a secular, democratic state bound by the rule of law? And if not, why? And, most important, what awaits Azerbaijan in the near and more distant future? These are the primary issues this article will examine.