The Swiss Agency for Development and Cooperation (SDC) is part of the Swiss Ministry of Foreign Affairs and the main agency for Switzerland’s international development cooperation. The State Secretariat for Economic Affairs (SECO), part of the Swiss Ministry of Economics, has as its mandate the support of transition and developing countries in their economic reforms.

Swiss Development Cooperation for the South Caucasus Countries emerged in the late 1980s with humanitarian aid in response to the severe earthquake in Northern Armenia, and due to the armed conflicts which broke out following the collapse of the Soviet Union. In 1996, a new regional office was opened in Georgia with a task of coordinating the Swiss-funded aid activities covering the two neighbouring countries. Technical cooperation and humanitarian assistance have been conducted since 1998 under a regional scheme covering Georgia, Armenia and Azerbaijan. In 2001 and 2002, respectively, sub-offices were opened in Baku and Yerevan.

Since 1992 financial assistance provided by SECO, has been concentrating on Azerbaijan, which is a member of the Swiss-led Constituency Group of the Bretton Woods Institutions (World Bank and International Monetary Fund). Financial support was first granted to Azerbaijan to meet its statutory obligations as a member of the World Bank. Bilateral economic development cooperation started in 1998 following the adoption of a credible economic reform program. This cooperation focuses mainly on infrastructure financing (rehabilitation of water supply), capacity building at the Ministry of Finance, support to the financial sector development, and, more recently, promoting the development of private sector.