The Organisation for Democracy and Economic Development (GUAM) is an international regional organisation established by Azerbaijan, Georgia, Moldova and Ukraine. Initially, GUAM was launched as the grouping of these four states upon signing of the Joint Communiqué by the Presidents of Azerbaijan, Georgia, Moldova and Ukraine in Strasbourg on October 10, 2007. In the communiqué, the Presidents underscored the need for strengthening quadrilateral cooperation for the sake of a stable and secure Europe, guided by the principles of respect for sovereignty, territorial integrity, the inviolability of state frontiers, democracy, the supremacy of law and respect for human rights.

The first GUAM Summit, held in Yalta on June 7, 2001, played a vital role in structuring and institutionalising the organisation as an international entity. The Yalta GUAM Charter, signed by the heads of state, fixed the objectives, principles and directions of the cooperation between the participating countries.

At the GUAM Summit held in Kiev on May 22-23, 2006, the ‘Kiev Declaration on the Establishment of the Organisation for Democracy and Economic Development – GUAM’ was adopted, which addressed its main aims.

The main goals of the organisation are the strengthening of democratic values, ensuring the supremacy of law and respect for human rights, ensuring sustainable development, the strengthening of international and regional security and stability, the deepening of European integration for the creation of a common security space, the enlargement of economic and humanitarian cooperation, the development of the socio-economic, transport, energy, scientific, technical and humanitarian fields. 
According to the charter, the structure of GUAM includes the Council and the Secretariat, located in Kiev. The Council, the major body of the organisation, conducts its work at the levels of Heads of State, Foreign Ministers, National Coordinators and Permanent Representatives. On May 15, 2015, Altai Efendiev was commissioned to the post of GUAM Secretary-General for a four-year term, starting on January 1, 2016, during the 25th meeting of the Council of Ministers of Foreign Affairs of GUAM in Bratislava.

The Chairmanship in GUAM is held by one of the countries, as a rule, for a one-year term, based on the principle of rotation in accordance with the GUAM Charter, which denotes the first letter of names of the member states in English. Azerbaijan presides over the organisation in 2020, on this basis of rotation in accordance with the GUAM Charter.

The Republic of Azerbaijan chaired GUAM from June 2007 to July 2008 and in 2012 and 2016. 
The Agreement on the establishment of the GUAM Business Council was signed for developing cooperation among the representatives of business circles of GUAM Participating States in 2002.

In 2004, the GUAM Parliamentary Assembly was established, which holds committees on legal, trade and economic issues, areas of political and regional security, science, culture, education and sports.

According to the charter, GUAM can establish partnerships and grant observer status with states and international organisations that are interested in cooperation and share the goals and principles of the charter. 

In 2003, the organisation was granted observer status at the UN General Assembly. Under the agenda item of the UN General Assembly on ‘Cooperation Between the UN and Regional and Other Organizations’, a resolution entitled ‘Cooperation Between the United Nations and the Organisation for Democracy and Economic Development - GUAM’ has been adopted since 2012. These resolutions invite specialised agencies, organisations, programmes and funds of the UN to cooperate and develop direct contacts with GUAM for the joint implementation of projects and the attainment of common objectives.

In December 2016, GUAM became a member of the UN Alliance of Civilizations.

A protocol on the establishment and activity of a working body coordinating actions of member states in the ‘Agreement on the Establishment of a Free Trade Area among the GUAM Participating States’ of July 20, 2002, was signed within the next meeting of GUAM Heads of Government, held in Kiev on March 27, 2017. The protocol was approved by the Decree of the President of the Republic of Azerbaijan No. 1575, dated August 7, 2017.

Sectoral cooperation between GUAM member states is carried out within working groups. According to the charter, acting on a permanent or temporary basis, working and subsidiary bodies of the organisation are established by a decision of the Council of Ministers of Foreign Affairs. At present, GUAM has Working Groups on Economy and Trade, Transport, Energy, Information Technologies, Coordination on Combating Crime, Civil Emergency, Cyber Security, Science and Education, Culture and Tourism, Youth and Sports.

On December 6, 2002, the Working Group on Energy of the Organisation for Democracy and Economic Development of GUAM was established.
According to the protocol adopted at the joint meeting of the Ministers of Economy, Energy, Transport and Heads of Customs Services of the GUAM countries on May 22, 2006, it was agreed to hold annual meetings to assess common interests and current issues in these areas and the potential to realise these interests.
Azerbaijan acted as the organisation's Energy Coordinator in 2011-2012, 2013-2014, 2015-2016 and 2017-2018. It is also the current country coordinator (2019-2020).
Being a coordinator of the working group allows the relevant member state to build and develop cooperation in this area in its own interests, as well as to take initiatives in this field. Azerbaijan's responsibilities as coordinator include preparing and agreeing on the working group's annual work plan, ensuring that working group meetings are held at least twice a year with the participation of representatives of relevant member states and appointing a working group leader.
On December 20, 2011, the 5th Meeting of the GUAM Working Group on Energy took place in Baku.
On March 12-13, 2012, the 6th Meeting of the GUAM Working Group on Energy was held in Kiev under the Chairmanship of Azerbaijan.
On October 28-31, 2014, representatives of the Ministry of Energy took part in a seminar held in Szentendre, Hungary, as part of the second phase of the workshop ‘Promoting Green Economies in GUAM Countries: Promoting Renewable Energy Sources.’  During the chairmanship of the Republic of Azerbaijan of GUAM in 2020, the meeting of GUAM Energy Ministers within the framework of the 27th International Caspian Oil and Gas Exhibition and conference, which was scheduled to be held in Baku on 2-4 June 2020, has been postponed due to Covid-19 pandemic.