Foreign investments made in Armenia go back more than a decade. From a political point of view, the communists are the only ones who consider the foreign investments made in Armenia as negative. They think that foreign capital falters the economy of the nation and turns it into some kind of transnational corporation. Other political forces and the authorities think that the investments help further develop the country’s economy. There is no developing country in the world that has not been able to achieve success in economy without foreign capital. This is why the authorities keep announcing that they have provided certain conditions for the foreign investors, but the reason for that is that the authorities are periodically trying to improve the economy by adding new laws.

The foreign investor always tries to avoid investing in a country where politics and economy are in a stable condition. Armenia does not benefit from this. This has nothing to do with the stability of politics of Armenia. It has only been eighteen years since Armenia declared its independence, however, the country is being governed by a president and Prime Minister. This can be perceived as stability. On the other hand, there is little economic stability in the country. The legislation about the economy keeps on changing from time to time. Each year, the government presents a total packet of the legislation on economy along with the budget. The goal of this was to improve the flow of investments. Passing those laws and resolutions were done for a good reason, but the constant changing of laws causes a lot of confusion. It is evident that investors will not be too interested in investing in a country where changes are so constant. This is the only reason that Armenia differs from other countries in the region. Armenian authorities are trying the best they can to stimulate the flow of foreign investments in the country. On that occasion, a Development agency has been founded to rectify that situation.

Six years ago less than twenty foriegn businesses made investments in Armenia, this number has continued to climb and now houses such large investors as Coca-Cola, evidence of the hardening stability of the country.