Since the mid-XIX century, the oil industry had been flourishing in northern Azerbaijan. The first ever industrial oil well was drilled in 1848. In the late XIX th-early XX th centuries was producing 95% of Russia's and about 50% of the world's oil production. The Nobels and Rothschilds were among the oil magnates of, and earned a considerable income. The fortune of the Nobels was largely derived from the profit on Azerbaijani oil.
The second half of the XIX th - early XX th century was also a progressive period for the national culture of Azerbaijan. In 1908, Uzeyir Hajibayov, famous Azerbaijani composer, wrote his "Leyli and Majnun", the first opera in the Muslim world. In general, the country's musical culture was so highly developed that Azerbaijan was known as the ''East's Conservatoire'' or the ''East's Italy''.
A national social and cultural awakening was to be found in other spheres too. From the mid-XIX th century the concept of mass enlightenment actively spread and, to that end, the " Azerbaijan" newspaper was published through the efforts of Azerbaijani intelligentsia in 1858 in Tabriz, southern Azerbaijan. It was the first newspaper in Azerbaijani language and was published under different names over several years.
In North Azerbaijan, between 1875-1877, the newspaper "Akinchi" (Ploughman) was published under the guidance of the visionary Hasan bay Zardabi. One of the main achievements of "Akinchi" was to lead the challenge of enriching the native language and to broaden its usage.
At the same time, a number of prominent literary figures emerged to provide further impetus to the nation's cultural development: Mirza Fatali Akhundov, Mirza Alakbar Sabir, Jalil Mammadguluzadah, Jafar Jabbarli, Firudun bay Kocharli, Ahmad Javad, are some that deserve special mention. Similar progress was made at that time in the spheres of fine arts, architecture, the theater and cinematography.
This rapid cultural-ideological movement also made a great influence on political institutionalization and consolidation of Azerbaijani society. Azerbaijanis living within Russia were among the pioneers of the Empire Muslims' democratic movement for the protection of rights. Alimardan bay Topchubashov, a distinguished Azerbaijani statesman, became one of the founders of "Ittifaqi Muslimin" (Union of Muslims). It was established in 1905 in order to represent and pursue the Turkic-Muslim peoples' interests with the Empire's authorities. In general, the Azerbaijani representatives took an active part in this movement, striving for the common aims of oppressed Muslims in Czarist Russia.
When considering progress in the sphere of political consciousness in the early XX th century, it would be wrong not to highlight the vision of Ahmad bay Agaoglu, and Ali bay Huseynzadeh, who shaped the idea of Azerbaijanism, consolidating the nation at a moral level, as a synthesis of traditional Islamic and Turkic priorities with those of the modern era. The period from the late XIX th century throughout the first half of the XX th century also witnessed activation of the political consciousness of Azerbaijanis living in Southern Azerbaijan. Movements of 1905-1911 for the limitation of Shah's absolutism - headed by such Azerbaijani national heroes as Sattar khan and Baghir khan - for the first time brought the democratic forms of political culture and institutionalization to Persia, then under the rule of the Gajar dynasty.
One direct consequence of the 1905-1911 socio-political developments was the establishment of a movement in Tabriz in 1920 under the guidance of Sheikh Khiyabani. Later, the establishment of a parliament and government in Southern Azerbaijan in 1945 indicates the significant rise of political culture of Azerbaijanis living in the Shah's Iran. Indeed, South Azerbaijan became the heart of all democratic processes in Iran during the late XIX th century and the first half of the XX th century.