The authors examine higher education developments in two peripheral post-communist countries--Georgia and Armenia, whose education systems have previously received little attention in the literature. They focus on how both countries' models of higher education governance have evolved through the phase of political transformation and recent period of geopolitical tensions and more intense Europeanization and internationalization. Based on a series of empirical indicators for three ideal-types of higher governance derived from the previous literature, the authors assess the transformed relationship between the state and higher education institutions. Specifically, they focus on the extent to which both systems have converged on a market-oriented model of Anglo-American inspiration. The empirical analysis shows that following western practices has become a common leitmotiv of policy-makers in both countries and that new forms of "co-governance" between the state and university management have emerged. However, the authors argue that policy learning from the West has taken place in a very selective and tactical manner, as market-oriented steering instruments are only being adopted to the extent that they do not undermine the state's means for political control over higher education.