SUMMARY:

This article presents research into the process of transformation from the Soviet Republic of Armenia into the newly independent Republic of Armenia. The author proposes a conception of transformation that explores the role played by the country’s economic elite. The author terms such elite “comprador” based on its economic functions of linking international corporations and the local market. According to the author, much of the economic and political trouble of the Armenian state comes from the elite’s vested interests. At the same time, the author argues that in the specific situation of Armenia, which involves the problem of Nagorno-Karabakh and war with Azerbaijan, the power of the groups connected with the military cannot be underestimated. Based on a range of sources, the article outlines major developments in Armenia since independence and suggests possible scenarios of further development.