What kinds of political dilemmas did Latvians face after re-establishing their independence? What are the major problems in contemporary Latvian politics? What are the perspectives for Latvian democracy? These are a few of the questions that we would like to address in this chapter. First, we will examine the post-awakening period when a new elite formed, and political parties were institutionalised through the first independent parliamentary elections of 1993. Next, contemporary ethnic dilemmas will be discussed. The chapter will end with speculations about the weaknesses and strengths of Latvia's political system.