ROLE OF THE DIASPORAS IN TRANSITION ECONOMIES: LESSONS FROM ARMENIA

The paper develops additional economic arguments to emphasize the potential importance of the Diasporas’ contribution to economic transformation of former socialist economies. At the same time, it argues that so far this potential has been grossly underutilized, especially in the economies of the Former Soviet Union (FSU). Based on the analysis of such underutilization for a case of Armenia, the paper provides a set of simple recommendations on how to rationalize the Diaspora’s involvement and assistance to home countries in the course of transition.