“The general index of democracy has regressed in Armenia.” This is perhaps the only negative evaluation after the May 12 elections. The author of this statement is the director of the Eurasian department of the “Freedom House” US organization, Chris Walker. After the reports of international monitors about the elections, and whether those match international democratic standards and criteria from now on, any report on Armenia will be free from negative evaluations. According to Walker and the Freedom House 2006 report, Armenia’s democratic development has proceeded unevenly in the 14 years since independence. Although Armenia was one of the first Soviet republics to end Communist rule, the absence of an effective system of checks and balances, the concentration of power in the presidency, the centralized system of government, and the lack of an independent civil service have fostered weak governance and widespread corruption. This has been exacerbated by the close links between the country’s political and business elites, which have impeded the development of a more transparent political system. Elections have generally failed to meet international standards, contributing to public cynicism toward the authorities and skepticism about the value of participating in political and civic activities. The unresolved conflict with Azerbaijan over the disputed territory of Nagorno-Karabakh remains a potential source of instability in the region and has deterred foreign investors and hampered trade diversification. However, the country’s progress in macroeconomic stabilization has been relatively successful. Successive governments have generally adhered to the economic reform measures prescribed by international financial institutions, ensuring continuity in macroeconomic policies and a steady improvement in economic and financial indicators. Nevertheless, though poverty rates are declining, the popular perception is that most Armenians have yet to benefit from these macroeconomic successes. This has contributed to disillusionment in Armenia’s political and economic transition. However, after his remarks about Armenia, Walker has become slightly softer about the developments in Armenia, which makes us believe that the Freedom House report 2007 is going to be rougher on Armenia. “Of course I hope there will be progress. Everybody in Armenia wishes to have a free and independent media,” Walker said and added, “Especially prior to Parliamentary elections, everybody was doubting that the media wouldn’t give equal opportunities to the media, referring especially to the state TV channels, where much remains in the area of improvement