The World Bank has been supporting Azerbaijan in developing and operationalizing the vision of “smart villages” in the country. There are four elements of a smart village: 1) it is data-driven; data on socio-economic characteristics and infrastructure is used for strategizing the development of the village; 2) digital and innovative technology and broadband connectivity are used for increasing productivity and rural economic activities; 3) it Is climate-smart, this means doing things that are sustainable and sensitive to the climate change and mitigating the impact of climate change; 4) it is people-driven; without identifying the needs of people and their participation in developing solutions is of utmost importance.