What determining factors were responsible for the differences in the transformations of the Baltic States and the South Caucasus after the collapse of the Soviet system? What are the reasons for the political changes that initially began similarly in Latvia and Azerbaijan, but diverged in their subsequent course and outcomes? The answer seems obvious: the differences in the recent history, unique culture, and geographical location of the two countries also explain the distinct recent developments of the two nations. Although such factors indeed significantly influenced the deviations in the two systemic changes, a simplistic historical, cultural, and geo-determinism is insufficient. The study concludes, among other things, that a strong national consciousness was a decisive factor for the initiation and course of the transformation in both countries.