Landlocked in the Lesser Caucasus Mountains, Armenia is the smallest of the former Soviet Union's republics. It was the first country to adopt Christianity as its state religion. It is bordered by Muslim states to the south, east, and west. Keen to deepen links with the rest of the CIS, Armenia has kept to a path of radical economic reform, including privatization. The confrontation with Azerbaijan over the enclave of Nagorno Karabakh has dominated national life since 1988.

Minority nationalities are well integrated in Armenia. There are strong contacts with the many Armenian emigrants, numbering nine million in the USA, France, and Syria.

Conflict with Azerbaijan forced 350,000 Armenians in Azerbaijan to return to Armenia and 190,000 Azeris in Armenia to return to Azerbaijan.

Strengths

Strong ties with Armenian emigrants. Deposits of rare metals, currently unexploited. Machine building and manufacturing – includes textiles and bottling of mineral water.

Weaknesses

Dependent on imported energy, raw materials, and semi-finished goods. High unemployment and economic stagnation. Widespread corruption.

Armenia became an independent multiparty democracy in 1991 and held its first parliamentary elections in July 1995. A new constitution approved by referendum set up a presidential republic, and in 1996 President Levon Ter-Petrossian was reelected for a five-year term. The war with Azerbaijan, over the issue of whether the Armenian enclave of Nagorno Karabakh inside Azerbaijan should become part of Armenia, has simmered since a 1994 cease-fire. Ter-Petrossian resigned in 1998, after parliament opposed his softer line in search of peace. He was succeeded by Robert Kocharian, a former premier and ex-governor of Nagorno Karabakh. In 1999 the prime minister, RPA leader Vazgen Sarkissian, was shot dead in a dramatic attack on parliament. He was succeeded first by his brother Aram, then in 2000 by Andranik Markarian.

Energy resources are negligible, and mismanagement of the energy industry was deemed to have cost the country $200 million in the 1990s. Vegetables and fruit are grown in fertile lowlands, and grains in the hills; agriculture accounts for as much as a third of GDP.

Hospitals suffer from the erratic electricity supply. Poor sewerage and other services have led to a rise in hepatitis, tuberculosis, and cholera.

The education system, previously conforming to that of the USSR, now emphasizes Armenian history and culture; 12% of the population have received higher education.

The richest Armenian people are those living away from Armenia itself, particularly in the USA and France. The many refugees from Baku, Azerbaijan, are the poorest.

Armenia lost its autonomy in the 14th century. In 1639, Turkey took the west and Persia the east; Persia ceded its part to Russia in 1828.

• 1877–1878 Massacre of Armenians during Russo-Turkish war.
• 1915 Ottomans exile 1.75 million Turkish Armenians; most die.
• 1920 Independence.
• 1922 Becomes a Soviet republic.
• 1988 Earthquake kills 25,000. Conflict with Azerbaijan over Nagorno Karabakh begins.
• 1991 Independence from USSR.
• 1994 Cease-fire with Azerbaijan.
• 1995 First parliamentary elections.
• 1998 Kocharian elected president.
• 1999 Shooting of prime minister in attack on parliament.