A study of the democratization processes and economic development in the Republic of Armenia

Abstract

This paper is based on the results of the Policy Internship Project conducted at the UK Department for International Development, represented in Armenia, DFID/Yerevan. When in early 90s the countries of Central and Eastern Europe and the post-Soviet states introduced the new economic system, they simultaneously changed their political system and introduced democracy. For post-Soviet states the transition was more complex as they underwent for the first time in their history the processes of state building, democratization and the introduction of a market economy simultaneously. Armenia, as one of the former Soviet Union republics, had to face all the hardships of this simultaneous transition, aggravated with a natural disaster, military conflict, and transport blockade from the beginning of the reforms. This paper is aimed at studying the relationship between the democratization processes and economic development in Armenia during the transition period. Another purpose of the study is to see how the international donor agencies, represented in Armenia, consider supporting democratization while implementing economic development oriented programs in the country. The paper suggests the appropriate priority in this regard via policy recommendations to donors in Armenia. The results of the research revealed little correlation between economic development and democratization in Armenia, but illustrated the importance of donors in facilitating the efforts and advancing the reforms in these areas.