In his complimentary
speech, President of Poland Alexander Kwasnievsky,
who visited Kyrgyzstan in October 2002, cited the
great traveler Marco Polo who called this land an
oasis on the Great Silk Road. During the last 10
years the world has been learning more and more
on the once nearly unknown soviet republic of Kyrgyzstan.
Having got independence in 1991 this mountainous
country located amongst picturesque valleys somewhere
between China and Kazakhstan, ventured to demonstrate
to the whole world that it had chosen the right
path despite all hardship that are inevitable for
a young state. Nowadays Kyrgyzstan is expecting
visitors - tourists, investors, heads of countries,
and chiefs of international agencies, it holds summits
and numerous international conferences. The young
nation now as never needs fresh ideas, however itself
capable of sharing successful experience of democratic
reforms, and transition from socialist system to
free market economy.
Impetuous political and historical events of 1991
virtually deprived the Kyrgyz Republic of its economic
potential and put it on the edge of abyss. It was
not only the matter of survival. A new state with
a new social system had to be built up on the ancient
Kyrgyz land. Besides strong political will, it took
total reconstruction of economy and changes in social
and economic structure. "About ten years ago
history has not given us an option but to start
a radical transfer from dependent command economic
system to independent market-oriented economy",
said President of the Kyrgyz Republic Askar Akaev.
In the early 90's the country was struck by an acute
economic crisis caused by objective factors. The
Soviet Union collapsed putting an end to centralized
financing that once made 12% of GDP. Economic relationships
of Kyrgyz between Kyrgyz companies and their partners
in other USSR republics broke down. Feeding schemes
were completely destroyed. But the most terrible
was that Kyrgyzstan lost all its markets, and most
of its industry products became unclaimed.
To overcome the system crisis decisive actions were
made aimed at building a fundament for market economy,
and that allowed to form private sector, primary
market infrastructure. Kyrgyz Republic was the first
CIS country to introduce its national currency and
follow independent monetary and credit strategy,
stop hyperinflation and consequently renew economic
growth in 1996. 1996 to 2000, the Kyrgyzstan's average
annual economic growth rate was 5.5%, and that was
one of the best figures for a CIS country. Although
in 1998 the republic suffered international financial
crisis, present inflation and som devaluation rate
has significantly slowed down, and the GDP growth
quickened.
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Agriculture is the Kyrgyzstan's
major economy sector. It produces over a third of
GDP. Making lands private property was a crucial
step in agricultural reforms, giving a new impulse
to the economic development as a whole.
Kyrgyzstan's industry produces somewhat more than
25% of GDP. Metallurgy and mining are the industry's
major branches (about 60% of the entire industrial
production). Kumtor gold mine holds leading position
making about 40% of the Kyrgyzstan exports. We are
making big efforts in this field for example we
are cooperating with the World Trade Organization,
Eurasian Union and Shanghais Cooperation Organization
in economic development. The priority is to increase
the exports by 10 % in the coming three years. Says
Mr. Muhridin
Isanbekovich Jeenbekov Minister of Foreign Trade
and Industry.
Water and energy complex is strategically important
and the second in significance export income source.
It also has good prospects regarding energy carrier
import substitution. Import substitution is quite
important 75-100 thousand tons of oil annually produced
in Kyrgyzstan cover only about a third of the country's
demand for carbohydrates.
Main principles of building new foreign trade relationships
were demonstrated through Kyrgyzstan's entering
the WTO (first in CIS), and foreign trade liberalization.
The trade deficit has been significantly reduced,
mostly due to import decrease in 1998 and 1999.
First of all, measures aimed at import reduction
provide import substituting production. In particular,
increase in export of the following agricultural
products has been quite clear lately: milk and dairy
produce, wheat, sugar, hide, as well as clothes,
ferrous metals, roofing slate, precious metals,
incandescent lamps. As Mr.
Aitmatov Askar Chingizovich, Minister of Foreign
Affairs explains "Our adherence to the
WTO would significantly help in harmonizing our
regulations and legislation with the outside world.
Our membership is facilitating our collaborations
with China who also has WTO membership. So I think
that this is only the beginning and I am sure in
the future we will see even more benefits "
With its newly built multistructure economy, rich
cadre, natural and other resources, The Kyrgyz Republic
possesses very big opportunities for successful
development in the future. But will corruption allow
this tiny country to develop or will it cripple
its growth like it did for most of its neighbors
and former countrymen.
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