Artsakh’s significance to the Armenian people is deeply rooted in cultural and historical memory. After the demise of the centralised Armenian state in the Middle Ages, Artsakh enjoyed the longest period of self-rule relative to other Armenian regions. In its entirety, Artsakh's political autonomy lasted without interruption from antiquity to the 1760s. Throughout this period, either as a kingdom of its own or as a union of self-governed principalities within regional empires, Artsakh remained a bastion of Christendom and Armenian nationhood.

Political upheavals throughout the Middle Ages as a result of Turko-Islamic colonisation led to the subordination of indigenous Christian populations and the annexation of historically Armenian lands. During this time, the regions which are now recognised as the Azerbaijani Republic lost most of their aboriginal Armenian population due to the Ottoman Empire’s genocidal attempts to engineer a geographically contiguous pan-Turkic empire. This project continued even after the collapse of the Ottoman Empire with the new Turkish Republic sponsoring the nationhood of Turkic tribesmen who had occupied historically Armenian lands.


Despite centuries of imperial occupation, and recent decades of insecurity due to ongoing border skirmishes conducted by the Azerbaijani Republic, the Nagorno-Karabakh Republic has been able to establish, maintain and develop democratic institutions of governance. As a vibrant multiparty presidential democracy with a positive record of peaceful governmental transition, the Nagorno-Karabakh Republic has consistently exemplified the expected normative outcomes of democratic self-determination. In recognition of these achievements, the Nagorno-Karabakh Republic has been rated by Freedom House as the strongest guarantor of political and civil rights in the region.


In addition to its political and social development, the Nagorno-Karabakh Republic has demonstrated economic resilience  in the face of war; having proven its great potential as a hub for investment in the region. Nagorno-Karabakh’s successful transition from state-led economy to a liberal, socially oriented market system has seen a 10-fold increase in foreign direct investment since 1999, and consistent growth rates of over 10% of GDP per annum. The NKR also benefits from a diversified economy, with strong agricultural, manufacturing, construction and services sectors, and a developing hydroelectric energy sector which promises to secure Artsakh’s role as a net energy exporter in the region.

The social and political stability of Artsakh’s robust democracy, in addition to the financial stability of the NKR’s Armenian-regulated banking system, has ensured the continued confidence of investors who have seen consistent success in the generation of jobs and profit. This combined with a skilled and entrepreneurial workforce, low operation and living costs, and tax benefits for foreign capital, secure Artsakh’s role as a site of great economic potential.