Kyrgyzstan

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KYRGYZSTAN

LOCATION, SIZE, AND EXTENT
TOPOGRAPHY
CLIMATE
FLORA AND FAUNA
ENVIRONMENT
POPULATION
MIGRATION
ETHNIC GROUPS
LANGUAGES
RELIGIONS
TRANSPORTATION
HISTORY
GOVERNMENT
POLITICAL PARTIES
LOCAL GOVERNMENT
JUDICIAL SYSTEM
ARMED FORCES
INTERNATIONAL COOPERATION
ECONOMY
INCOME
LABOR
AGRICULTURE
ANIMAL HUSBANDRY
FISHING
FORESTRY
MINING
ENERGY AND POWER
INDUSTRY
SCIENCE AND TECHNOLOGY
DOMESTIC TRADE
FOREIGN TRADE
BALANCE OF PAYMENTS
BANKING AND SECURITIES
INSURANCE
PUBLIC FINANCE
TAXATION
CUSTOMS AND DUTIES
FOREIGN INVESTMENT
ECONOMIC DEVELOPMENT
SOCIAL DEVELOPMENT
HEALTH
HOUSING
EDUCATION
LIBRARIES AND MUSEUMS
MEDIA
ORGANIZATIONS
TOURISM, TRAVEL, AND RECREATION
FAMOUS KYRGYZSTANIS
DEPENDENCIES
BIBLIOGRAPHY

Kyrgyz Republic

Kyrgyz Respublikasy

CAPITAL: Bishkek

FLAG: Red field with a yellow sun in the center; in the center of the sun is a red ring crossed by two sets of three lines, a stylized representation of the vent in a Kyrgyz yurt.

ANTHEM: Kyrgyz National Anthem.

MONETARY UNIT: The som was established in May 1993; som1 = $0.02492 (or $1 = som40.13) as of 2005.

WEIGHTS AND MEASURES: The metric system is in force.

HOLIDAYS: Constitution Day, 5 May; Independence Day, 31 August; National Day, 2 December.

TIME: 5 pm = noon GMT.

LOCATION, SIZE, AND EXTENT

Kyrgyzstan is located in southern Asia, between China and Kazakhstan. Comparatively, it is slightly smaller than the state of South Dakota, with a total area of 198,500 sq km (76,641 sq mi). Kyrgyzstan shares boundaries with Kazakhstan on the n, China on the e, Tajikistan on the s, and Uzbekistan on the w. the country's boundary length totals 3,878 km (2,410 mi), and its capital city, Bishkek, is located in the north central part of the country.

TOPOGRAPHY

The topography of Kyrgyzstan features the peaks of Tian Shan, which rise to over 7,000 m (23,000 ft), and associated valleys and basins which encompass the entire nation. About 90% of Kyrgyzstan has an elevation exceeding 1,500 m (4,900 ft). Slightly over 5% of Kyrgyzstan's land is under irrigation.

Seismic activity continues along the Tian Shan as these mountains continue to be uplifted. As a result, frequent and sometimes devastating earthquakes occur within the region. These also trigger massive mudslides and avalanches that have been know to destroy villages. In August 1992, a 7.3 magnitude earthquake occurred near Jala-Abad, killing 75 people and leaving several thousand homeless.

CLIMATE

The country's climate is continental to polar in the Tian Shan Mountains. In the Fergana Valley the average temperature in July is 27°c (81°f). In January, the coldest temperatures are in the mountain valleys, with recorded lows below -30°c (-22°f). the climate is temperate in the foothill regions of the north.

FLORA AND FAUNA

The country's flora and fauna is similar to Tajikistan. there are several types of wildflowers in the valleys. Yak, mountain goats, and snow leopards can be found in the mountains. the country claims to have the world's largest natural-growth walnut forest. Numerous flocks of migrating birds pass through the country each year. As of 2002, there were at least 83 species of mammals, 168 species of birds, and over 4,500 species of plants throughout the country.

ENVIRONMENT

Among Kyrgyzstan's most significant environmental issues are water pollution and soil salinity resulting from improper irrigation methods. The pollution of the nation's water causes health problems for 25% of its people, many of whom draw water directly from contaminated wells and streams.

In 2003, about 15% of Kyrgyzstan's total land area was protected. According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), threatened species included 6 types of mammals, 4 species of birds, 2 types of reptiles, 3 species of invertebrates, and 1 species of plant. Threatened animal species include the great bustard, European bison, snow leopard, field adder, and tiger.

POPULATION

The population of Kyrgyzstan in 2005 was estimated by the United Nations (UN) at 5,172,000, which placed it at number 112 in population among the 193 nations of the world. In 2005, approximately 6% of the population was over 65 years of age, with another 33% of the population under 15 years of age. There were 97 males for every 100 females in the country. According to the UN, the annual population rate of change for 2005–10 was expected to be 1.3%, a rate the government viewed as satisfactory. the projected population for the year 2025 was 6,713,000. The population density was 26 per sq km (67 per sq mi).

The UN estimated that 57% of the population lived in urban areas in 2005, and that urban areas were growing at an annual rate of 1.45%. The capital city, Bishkek, had a population of 806,000 in that year. The second-largest city was Osh, with a population of 220,000.

MIGRATION

As of 1999, the total number of registered and unregistered refugees was estimated to be between 40,000 and 50,000 (1% of the total population). There were about 13,000 officially registered refugees, mainly from Tajikistan, and about 700 from Afghanistan. The great majority of Tajik refugees were of ethnic Kyrgyz origin and desired to stay in Kyrgyzstan permanently. the government was working with the United Nations High Commissioner for Refugees (UNHCR) to implement an integration package to assist Tajik refugees in their transition to Kyrgyz citizenship. In the period 1989–95, some 296,000 Russians, 39,000 Ukrainians, and 3,000 Belarussians all departed from Kyrgyzstan. Also, 46,000 Germans (formerly deported under Stalin during World War II from Soviet and Volga regions) returned to Germany. In 2004, there were 3,753 refugees and 453 asylum seekers. Over 300 Kyrgyzstanis sought asylum in 2004 in Sweden and the Czech Republic. In 2005, the net migration rate was an estimated -2.47 migrants per 1,000 population, changed from -12.5 in 1990. the government viewed the immigration level as too high, but the emigration level as satisfactory. Remittances in 2003 were $52.1 million.

ETHNIC GROUPS

According to the latest estimates, about 66.3% of the total population are Kyrgyz, 11.2% are Russian, 14% are Uzbek, 1.1% are Dungan (ethnic Chinese Muslims), 1% are Uighurs, and 6.4% other. About 420,000 ethnic Kyrgyz reside elsewhere in the former Soviet Union and 170,000 in China. Kyrgyz speak a Turkic language and most are Sunni Muslims. There are major ethnic and clan based cleavages, including north–south clan and regional tensions that threaten fragmentation.

According to some reports, 10% or more of Russians left Kyrgyzstan during 1991 because of ethnic tensions. Ethnic Germans, deported to Kyrgyzstan by Stalin during World War II, are also leaving Kyrgyzstan. In June 1990, in the Osh region on the eastern edge of the fertile Fergana Valley, a major ethnic conflict broke out between Kyrgyz and Uzbek inhabitants over land distribution. Approximately 250 people died in what has been termed "the most explosive region of Central Asia," because of its mixed population of Uzbeks and Kyrgyz, poverty, and high unemployment. Periodic clashes also occur between Kyrgyz and Tajiks along the border with Tajikistan over water resources. Beefed-up Kyrgyz security forces were placed in the Osh and Alais regions in early 1993 to prevent spillover from fighting going on between Tajik ex-communists and oppositionists in the mountains of northern Tajikistan and to halt the inflow of Tajik refugees.

LANGUAGES

A Turkic tongue, Kyrgyz is the official language. Until 1926, the Kyrgyz and Kazakh languages were not officially recognized as two distinct languages. Kyrgyz orthography was formally organized in 1923 and was modeled after the northern dialects using Arabic script. Afterward, Roman letters were used until 1940, when the Cyrillic alphabet was mandated by the Soviet government, with three special additional characters. Since independence, there has been discussion about switching back to the Roman alphabet.

Although the Kyrgyz language is the traditional language, most of Kyrgyzstan's population also speaks Russian, the language of business and commerce. In March 1996, the Kyrgyzstani legislature amended the constitution to make Russian an official language, along with Kyrgyz, in territories and workplaces where Russian-speaking citizens predominate.

RELIGIONS

Some 80% of the population are Muslim, mostly Sunni of the Hanafi persuasion. An estimated 11% are Russian Orthodox. Together, Jews, Buddhists, and Roman Catholics make up about 3% of the population. There are about 249 registered Protestant places of worship in the country and 12 Baha'i congregations.

The constitution provides for freedom of religion, a secular state, and the separation of church and state. However, in practice some minority Muslim groups as well as non-Muslim groups have reported discrimination by the government and social groups. All groups must be registered with the State Commission on Religious Affairs in order to operate legally; this same commission serves as a government forum to promote interfaith understanding and tolerance.

TRANSPORTATION

As of 2004, Kyrgyzstan's railway system consisted of 470 km (292 mi) of broad gauge railroad, the largest portion of which was a single east–west rail line of 370 km (230 mi) that went from Issykkul' across the Chuskaya region into Kazakhstan. There were some 18,500 km (11,507 mi) of highways, of which 16,854 km (10,483 mi) were paved in 2002. Irregular service with public transportation occurs frequently. As a landlocked nation, water transportation is of minor importance with only 600 km (372 mi) of waterways as of 2004. However, inland travel is possible on several east–west rivers. Kyrgyzstan has an estimated 52 airports and airfields as of 2004, of which 18 had paved runways as of 2005. The principal airport is Manas, located at Bishkek. In 2003, about 206,000 passengers were carried on scheduled domestic and international airline flights.

HISTORY

The area of present-day Kyrgyzstan contains evidence of human habitation from the time of the Lower Paleolithic era on, approximately 300,000 years ago. Archeologists suggest that two types of economies developed in the territory—farming and pastoral nomadism. By the 7th century bc, nomadism had become predominant, and the area was controlled by various tribal alliances. In the north the Saki (7th–3rd centuries bc) were succeeded by the Usuni (2nd century bc–5th century ad); in the south, the Parkan state (2nd–1st centuries bc) was replaced by the Kushani kingdom (1st–4th century ad). The ethnic identity of those peoples is the subject of much debate, but they were not Turkic. From the 6th century on, various Turkic tribes began to push westward, eventually settling most of Central Asia, including Kyrgyzstan. Much of present Kyrgyzstan was united by the 7th century as part of the West Turkic Kaganate, and replaced in the 8th century by the Turgash, who in turn were conquered by the Karluk, who originated in the Altai region further north.

When the present-day Kyrgyz first came to this territory is the subject of much debate. References to tribes of that name living in the Altai occur in the 10th century, but another people with the same name who lived along the Enisei River are first mentioned in records from the 2nd century bc. The Enisei Kyrgyz formed the Kyrgyz Kaganate in about ad 650, which survived until defeat by Genghis Khan in 1209. Kyrgyz tradition prefers to see its origin in that state, but ethnographers and archeologists view the claim with considerable skepticism.

Evidence suggests instead that the present-day Kyrgyz are an amalgamation of various peoples, as existing tribes incorporated themselves into fresh waves of conquerors. The territory was part of the Karakhanid state from about 950–1150, during which the urban population was actively involved in trade and manufacturing along the Silk Road. Conversion to Islam also began in this period.

Genghis Khan's Mongols conquered the area in the 13th century, destroying most of the Karakhanid culture and introducing large numbers of new peoples into the area, of Turkic, Mongol, and Tibetan stock. The resulting mix of tribes was almost certainly the basis for the present-day Kyrgyz people, who retain much of the memory of those origins in the orally preserved genealogies of their 40 clans and tribes. The present Kyrgyzstan flag includes the depiction of a sun with one ray for each tribe. The Kyrgyz follow the Mongol practice of dividing their people into left (ong ) and right (sol ) "wings," said to reflect either the deployment of troops in military formation, or the tribe's original place of habitation. There is also a third group, the ichkilik, which seems to include parts of the Kyrgyz identity.

From the 15th century until the 17th century, the Kyrgyz tribes were part of the larger delineation of Central Asian history, which distinguished agricultural sedents from pastoral nomads. the appearance of the same tribal names among Kazakhs, Kyrgyz, and Uzbeks suggests how the people of this territory formed a series of tribal alliances, rather than a true state.

In the 18th century the Kyrgyz began to come under pressure from Mongol tribes farther east. This prompted some of the northern tribes to send delegations to the Russians, who had pushed into Siberia in the 17th century, and who were beginning to take what is now northern Kazakhstan under its control. the Russians made no distinction between the Kazakhs and Kyrgyz, calling both Kyrgyz. The southern Kyrgyz, however, were conquered by the Kokand Khanate, established in the late 18th century, separating them from the northern Kyrgyz. This split between south and north continues to the present day in Kyrgyz life.

Russian expansion into what it called the Steppe included Kyrgyzstan. Most of northern Kyrgyzstan was incorporated into the empire by 1863; the south followed in 1876, when Russia destroyed the Kokand Khanate. Administratively, present-day Kyrgyzstan was split among four guberniias. Beginning in the 1890s Russia settled Russian and other European farmers into the fertile river valleys of the north, forcing Kyrgyz nomads higher into the mountains.

By 1916, Russia's policies of livestock requisition and land use had left the Kyrgyz badly impoverished. When Russia attempted to issue a draft call-up for Central Asian males, including the Kyrgyz, widespread fighting broke out all across the territory. the uprisings were suppressed, with great loss of life; population in the northern part dropped as much as 40%. Since independence in 1991, the state has commemorated the 1916 uprising as genocide.

Hostility to the tsars meant that there was some support for the Bolsheviks, at least until it became clear that Lenin was not going to encourage the development of national states. Resistance to the Russians continued sporadically until the mid-1920s in what Russian historians have labeled the "Basmachi Rebellion."

As Bolshevik power was consolidated, Kyrgyzstan was first made an autonomous oblast (political unit) of the Russian Federation in 1924; it was upgraded in 1926 to an autonomous republic, but still within Russia. (At that time Russia was one of the Soviet Republics.) Kyrgyzstan did not become a full Soviet Republic until 1936.

The republic was regarded as one of the least developed of the Soviet states, politically and economically. Thus, it came as a great surprise when, on 28 October 1990, Kyrgyzstan became the first Soviet republic to select its own leader. the Kyrgyzstan legislature refused to ratify Communist Party leader Absamat Masaliyev's bid to become the republic's president and elected instead, Askar Akayev, president of the republic's Academy of Science. Akayev and his supporters began asserting Kyrgyz nationalism and wresting political and economic control over the republic from the Soviet Communist Party. these efforts were briefly interrupted by an attempted coup in Moscow by Communist Party hardliners in August 1991. Akayev bravely condemned the coup and, after it fizzled, on 30 August 1991, he severed ties with the Communist Party and Kyrgyzstan declared its independence. On 12 October 1991, Akayev's presidency was confirmed by direct popular election.

A constitution was adopted on 5 May 1993. An economic and political crisis led to the resignation of the first government in December 1993, but Akayev's presidency was reaffirmed by a popular referendum of support conducted on 30 January 1994. Over 95% of registered voters participated in the referendum; 97% of those who voted supported President Akayev.

In September 1995, Akayev's supporters submitted a petition signed by 1.2 million people (52% of the voting age population) urging the legislature to approve a referendum extending Akayev's term to the year 2001. After contentious debate, the legislature rejected holding a referendum, and Akayev instead announced that a presidential election would be held on 24 December 1995. Thirteen candidates were registered, but 10 were disqualified, leaving Akayev, Masaliyev, and former speaker Medetken Sherimkulov. Akayev won reelection to a five-year term, receiving 72% of about 1.9 million votes in a race deemed generally "free and fair" by international observers, though questions were raised about the disqualifications. In July 1998, Akayev hailed a Constitutional Court decision permitting him to run for a third term in the year 2000. He was reelected president on 29 October 2000, receiving 74% of the vote in an election marred by serious irregularities. Opposition activity prior to the election had been severely curtailed.

Severely shaking Kyrgyzstan's stability, several hundred Islamic extremists and other guerrillas entered Kyrgyzstan from Tajikistan in July–August 1999. The guerrillas seized hostages, including four Japanese geologists, and several Kyrgyz villages, stating that they would cease hostilities if Kyrgyzstan provided a safe haven for refugees and would release hostages if Uzbekistan released jailed extremists. The guerrillas were rumored to be seeking to create an Islamic state in south Kyrgyzstan as a springboard for a jihad in Uzbekistan. A Kyrgyz Security Council member in October 1999 alleged that the guerrillas were trying to seize the major drug trafficking route in southern Kyrgyzstan. Kyrgyzstan called out reservists and admitted that its military was unprepared for combat. Kyrgyzstan received air support from Uzbekistan and Kazakhstan, but protested Uzbek bombing of a Kyrgyz village. the Kyrgyz defense minister on 18 October 1999 announced success in forcing virtually all guerrillas back into Tajikistan.

The United States established a major airbase near Bishkek in December 2001 for military and humanitarian uses during its campaign in Afghanistan to oust the Taliban regime and al-Qaeda forces there. Kyrgyzstan and the United States have established closer political and security ties since 11 September 2001. At US prompting, the IMF reached agreement with Kyrgyzstan on a $93 million loan in December 2001. Since 11 September, all radical Islamic groups in the Central Asian nations have been linked with international terrorism. Both the Hizb-ut-Tahrir (Freedom Party) and the Islamic Movement of Uzbekistan (IMU), two radical Islamic organizations looking to establish an Islamic state in Central Asia, have a strong presence in the country. The IMU, expelled from its own country, collaborated with the Taliban and al-Qaeda and led armed incursions into Kyrgyzstan. Following the antiterrorist operations led by the United States after 11 September, all major units of the IMU were destroyed. In addition, in October 2002, Kyrgyzstan and China staged their first joint military exercises, aiming to coordinate their response to terrorism.

In January 2002, legislative assembly member and opposition leader Azimbek Beknazarov was detained on charges which supporters said were politically motivated. In February, Sherali Azarkulov, a prominent human rights activist, died while on a hunger strike to protest Beknazarov's detention. In March, five people were killed in the southern Aksy rayon in clashes with police during a protest demanding Beknazarov's release, and in May, the government resigned after a state commission ruled that senior officials were to blame for the deaths of the protestors. Beknazarov was subsequently freed, after being given a one-year suspended sentence for abuse of office. A rally in June called for Akayev's resignation, increasing fears of political instability and civil war. Large protests and arrests continued throughout the year. In January 2003, Akayev announced a referendum would be held on his presidency and on amendments to the constitution to "improve democracy." On 2 February, 76.6% of Kyrgyz citizens supported the amendments in the referendum, and 78.7% of voters determined Akayev should remain in office until his term expired in December 2005.

In January 2004, several opposition members in parliament announced they had found listening devices in their offices. the ensuing scandal prompted parliament to set up a commission to examine the case. The commission's conclusion was that the National Security Service (NSB) had planted the devices. As of 2005 no action had been taken against the NSB although the lower house of parliament adopted a resolution to hold the NSB responsible.

Starting with the parliamentary elections in February, 2005 was a year of massive unrest for Kyrgyzstan. Of the 75 seats in parliament only 6 were won by opposition parties. The belief that the election had been rigged by the government led to widespread protests, culminating in the March Revolution, or as it is otherwise known, the "Tulip Revolution." The revolution forced President Akayev, to flee the country and formally abandon his role as president on 11 April 2005. Elections were held on 10 July 2005 with Kurmanbek Bakiyev receiving 88.6% of the vote. Although the next presidential elections were scheduled to be held in 2010, there had been massive unrest in Kyrgyzstan since Bakiyev took office and his own tenure was in question. In September 2005 Azimbek Beknazarov was dismissed as prosecutor general and parliamentary member Bayaman Erkinbayev was assassinated. Many northerners associated the rise in crime and corruption with the March Revolution, which was led mainly by politicians with southern political roots, including Bakiyev.

GOVERNMENT

When Kyrgyzstan was still a Soviet republic, the legislature elected Askar Akayev president. Under his leadership, Kyrgyzstan declared independence and drafted a new constitution, ratified 5 May 1993. This constitution established a democratic presidential system with separation of powers and expansive human rights guarantees. In early September 1994, Akayev's supporters in the legislature—a slim majority of 168 out of 323 sitting deputies, most of whom were local administrators—boycotted the last session of the legislature before the expiration of its mandate in February 1995. This boycott prevented formation of a quorum, causing the dissolution of the legislature. Oppositionists alleged that the timing of the dissolution was aimed to squelch a legislative investigation into corruption in the government and to open the way for Akayev to create a more malleable legislature. Akayev took over legislative powers, and decreed that legislative elections would be held by the end of the year. He also decreed that a referendum would be held in October 1995 to approve amendments to the constitution, including provisions revamping the legislative system to weaken it relative to the presidency. He argued that legislative and other provisions of the May 1993 constitution were too "idealistic" because the "people are not prepared for democracy," and a "transitional period" was needed. Although the amendment process, like the dissolution of the legislature, contravened the constitution, the referendum questions were approved by over 80% of the voters.

Under the 1996 amendments, the president was given expanded powers to veto legislation, dissolve the legislature, and appoint all ministers (except the prime minister) without legislative confirmation, while making legislative impeachment more difficult. the legislature confirms the prime minister and high judges. Akayev spearheaded a referendum on 10 February 1996 to further alter the constitution. The amendments specify that Kyrgyzstan, or the Kyrgyz Republic, will be a secular, unitary state. It creates three branches of government: executive, legislative, and judicial. the Jogorku Kenesh (parliament or supreme council) has legislative responsibilities. The Jogorku Kenesh is made up of two houses—the 35-member legislative assembly and the 70-member assembly of people's representatives. The legislative assembly is responsible for day-to-day operations of the legislature, such as interpreting laws and ratifying international treaties. The legislative assembly also has the power to impeach the president. The assembly of the people's representatives meets periodically during the year to consider budget, tax, and appointment issues.

The executive branch is comprised of the cabinet of ministers, or ministries, appointed by the president and approved by the parliament. The head of the cabinet is the prime minister, also appointed by the president and confirmed by the parliament.

The president is to be elected once every five years, for no more than two terms, from among those citizens who are between 35 and 65 years of age, who have lived at least 15 years in the republic, and who are fluent in the state language, which is Kyrgyz.

There is no vice president. The usual functions of vice president, including the duty to replace the president in case of death or incapacity, are borne by the speaker of the parliament, who is elected from among the membership of the parliament.

Judges are chosen by the president, subject to parliamentary affirmation. Potential judges must be citizens between 35 and 65 years who have legal training and legal experience of at least ten years. The length of their service is unlimited, but can be terminated by the parliament.

In theory, the constitution provides a number of basic guarantees of human freedom, including freedom of religion, of the press and other forms of media, of movement about the republic and place of dwelling, of association, and unarmed assembly. It guarantees the privacy of post and other forms of communication, and guarantees private property. In terms of social benefits, the constitution guarantees pensions, unemployment compensation, legal representation, medical treatment, and free basic education.

Despite restrictions on its powers, in 1997–98, the legislature showed increasing signs of independence from executive power. Moving to further weaken it, Akayev spearheaded another referendum on 17 October 1998 to amend the constitution. Approved by 91.14% of voters, the amendments sharply restricted the legislature's influence over bills involving the budget or other expenditures, limited a legislator's immunity from removal and prosecution, increased the size of the legislative assembly to 60, and decreased the size of the assembly of people's representatives to 45. It also provided for private land ownership and upheld freedom of the press. The legislature has acted in subordination to the executive branch, but has at times asserted itself by overriding presidential vetoes. In November 1999, the assembly of people's representatives rejected the government's budget for 2000, calling for added social and defense spending.

Kyrgyzstan's 20 February 2000 legislative election (with a runoff on 12 March) reflected the erosion of Kyrgyzstan's earlier signal progress in Central Asian democratization, according to the US State Department. Under new laws, 15 seats in the upper chamber were set aside for party list voting. The Central Electoral Commission ruled that 16 parties out of 27 legally registered were disqualified from fielding party list candidates, though it urged that such candidates could instead seek single-member seats. the major opposition Democratic Movement of Kyrgyzstan-Dignity Party bloc was initially registered but then decertified. The Organization for Security and Cooperation in Europe (OSCE) on 8 February criticized the decertification as a narrow interpretation of the law and as restricting popular choice in the election. In all, 545 candidates were finally permitted to run for 105 seats. Six parties received over 5% of the vote, giving them seats: the Party of Communists (5 seats), Union of Democratic Forces (4), Democratic Party of Women (2), Party of Veterans (2), My Country (1), and Ata-Meken (1). Only Ata-Meken and the Communist Party are clear opposition parties. Only three constituency races were decided in the first round. In the second round on 12 March, 84 members were elected in a confusing vote. Prominent opposition politician Daniyar Usenov was disqualified after the first round, although he actually had won, according to the OSCE. Similarly, opposition Dignity Party head Feliks Kulov received more votes than his opponents in the first round, but was heavily defeated in the second through apparent legerdemain, according to the OSCE. After the second round, the opposition Democratic Movement, Dignity Party, and the People's Party protested the results.

About 120 OSCE observers and 2,000 local observers monitored the election. In the first round, OSCE monitors pointed to problems such as the disqualification of prominent opposition parties and the pro-government composition of electoral boards, and in the second round criticized continued government harassment of opposition candidates, politically motivated court decisions disqualifying some opposition candidates, and irregularities in vote-counting. US State Department spokesman James Foley on 14 March stressed that "the United States is disappointed in the conduct of the 2000 parliamentary election in Kyrgyzstan," which "amounted to a clear setback for the democratic process." On 23 March, he criticized Kyrgyz authorities for forcibly suppressing a peaceable demonstration and for arresting Kulov the day before on vague charges of committing crimes several years ago. Kulov was acquitted of charges of abuse of office in August, but was rearrested in January 2001. That July, new charges of embezzlement were brought against him, and in May 2002, he was sentenced to 10 years' imprisonment.

On 29 October 2000, Akayev was reelected president with 74% of the vote in an election marred by serious irregularities. Throughout 2001, the government continued to harass the opposition, independent media, and human rights defenders. Police used force to disperse protesters and arrested them throughout 2001 and 2002.

On 13 January 2003, Akayev announced a referendum would be held on 2 February for amendments to the constitution, including the abolition of the two-chamber parliament in favor of a single chamber, the abolition of party-list voting for parliament, and immunity from prosecution of former presidents and their families. Voters could not vote on the changes individually, but were to approve or reject them wholesale. They also had to indicate whether or not they wanted Akayev to remain in office until his term expired in December 2005. 76.6% of Kyrgyz citizens supported the amendments in the referendum, and 78.7% of voters determined Akayev should remain in office. Turnout was over 86%. the opposition, which called for a boycott of the vote and sent observers to monitor the election, said that turnout had been less than 40%, failing to reach the 50% threshold for the referendum to be valid.

Elections for a new unicameral body (Jorgorku Kenesh) were held 27 February 2005, but the vast majority of positions remained undecided and protests over electoral irregularities culminated in the March Revolution which ousted Akayev from office. New legislative elections had not been rescheduled as of then. Kurmanbek Bakiyev was elected president in July 2005 with 88.6% of the vote, although the likelihood that he would remain in power throughout his term was thought unlikely.

POLITICAL PARTIES

There is no formal ruling party. Over two dozen parties are legally registered, though all are small and some are inactive. Fewer than one-half of legislators claim party affiliation. Pro-Akayev parties include the Birimdik (Unity) Party, and the Adilet (Justice) Party (formed by writer Chingiz Aitmatov in October 1999). the main "constructive opposition" party is the People's Party. Among other parties, the Party of Communists (PCK; headed by Masaliyev) calls for reunification with Russia. The Erkin (Free) Kyrgyzstan Progressive Democratic Party calls for elevating the rights of ethnic Kyrgyz. The Democratic Movement calls for democratic socialism. Erkin Kyrgyzstan, Asaba, the Social Democratic Party, Unity, Democratic Movement, My Country, and others decided in July 1999 to form a bloc to contest the legislative elections. the Dignity Party, headed by Felix Kulov (former vice president, security minister, and Bishkek mayor) was formed in August 1999. The electoral code forbade parties from taking part in the February 2000 legislative races unless they were more than one year old, eliminating eight new parties. The Central Electoral Commission in late 1999 also declared the People's, Citizens of Bishkek, Labor Popular, and the People of Manas Parties disqualified on technicalities from taking part in the race. Religious parties are banned. Regional interests are important in the political process. the Kyrgyz leadership reportedly favors interests of the Chu region. Ten major opposition parties formed a broad coalition, the People's Patriotic Movement, in April 2001. After the March Revolution, political parties realigned several times and as of October 2005 the Kyrgyz political situation was in constant flux.

LOCAL GOVERNMENT

The republic is divided into seven administrative regions, plus the capital city of Bishkek. In addition, there are rayons, or districts. Each oblast and rayon has a local administration consisting of a governor and a local assembly. According to a presidential decree of March 1996, regional governors are appointed by the president to four-year terms, and are responsible for making sure that the local executive and legislative branches cooperate in carrying out state decisions, upholding law and order, ensuring citizens' rights and freedoms, obtaining funds to maintain local government and public property, adhering to state budget strictures, ensuring that taxes are collected, making sure that local pensions and state wages are paid, and generally ensuring the local welfare. Although in theory answering to the president, in practice some of the governors have become powerful spokesmen for regional interests, and run their districts with considerable autonomy. In October 1999, the first elections of municipal, rayon (district) and oblast (region) assemblies or keneshs took place. A new electoral law called for the candidate who gained a simple majority of votes to be declared the winner, introduced multi-seat constituencies, and dictated that only a Kyrgyz citizen who has lived in a constituency for no less than two years could become an assembly deputy.

JUDICIAL SYSTEM

The 1993 constitution declares the independence of the judiciary from the other branches of government. Thus far, however, the courts remain under the supervision of the Ministry of Justice and continue to operate mostly under Soviet-era laws and procedures. Some judicial reforms are being introduced, such as a separate judicial budget and more judicial training. There are three levels of criminal courts: local courts, which handle petty crimes; provincial courts, which consider most categories of crime, and the appellate Supreme Court. Traditional elders' courts may also handle petty crimes in rural areas. Defendants in elders' courts may appeal to the local administrative court.

A state prosecutor, or procurator, remains responsible for criminal arrests, investigations, and presentations before a panel consisting of a judge and two people's assessors (pensioners or members of labor collectives). Since 1990 there has been a right to have legal counsel in criminal cases. In 1996, the Constitutional Court ruled that only the defense has the right of appeal. Counteracting these restrictions on prosecutorial power, the law continues to allow judges to remand a case to the procurator for further investigation, rather than to declare the defendant guilty or innocent.

Judges hold varying terms of office. Constitutional Court judges are appointed to 15-year terms, Supreme Court judges to 10-year terms, and first-term local court judges to 3-year terms by recommendation of the president and confirmation by the Jogorku Kenesh (legislature). The 1993 constitution instituted a Western concept of judicial review by a Constitutional Court which did not exist under the former Soviet regime. Formed in 1993, the Constitutional Court reviews legislation and administrative acts for consistency with the constitution. It also considers cases on appeal involving individual rights and liberties of citizens. Constitutional Court decisions are final. There is also a higher court of arbitration and a system of lower courts for economic cases.

Libel is a criminal offense and so there is much self-censorship among Kyrgyz journalists. Access to the internet is not controlled and there are no reports of government censorship of internet material. Freedom of assembly and association are generally respected, as seen by the massive protests of 2005. In March 2004, the president signed a law limiting the crimes that carry the death penalty to aggravated murder, rape of underage children, and genocide.

the trafficking of women and girls into forced prostitution abroad continued to be a serious problem and some victims have reported that Kyrgyz authorities are involved in trafficking. In response, the criminal code was amended in 2003 to punish trafficking with up to 20 years in prison, and the Ministry of Internal Affairs opened an anti-trafficking police unit in 2004. the tradition of bride kidnapping and forcing women into marriage persists despite being illegal, and few are prosecuted for the crime.

Kyrgyzstan is a member of many international organizations including the United Nations and the World Trade Organization.

ARMED FORCES

Active armed forces in 2005 totaled 12,500 personnel. the Army had 8,500 personnel. Major components included 215 main battle tanks, 30 reconnaissance vehicles, 387 armored infantry fighting vehicles, 63 armored personnel carriers, and 246 artillery pieces. The Air Force had 4,000 personnel for which key combat elements included 72 fighter aircraft, of which 24 were in storage, and 9 attack helicopters. There was also an estimated 5,000 member paramilitary border guard force. Kyrgyzstan provided the UN with a total of 14 observers in four African countries. The United States, Denmark and Russia each have small contingents in Kyrgyzstan. The defense budget in 2005 totaled $73.1 million.

INTERNATIONAL COOPERATION

Kyrgyzstan was admitted to the United Nations (UN) on 2 March 1992; it is part of several specialized organizations, such as the FAO, IFC, IMF, UNCTAD, UNESCO, and the World Bank. the country is a member of the CIS, the WTO, the Asian Development Bank, the Euro-Atlantic Partnership Council, the European Bank for Reconstruction and Development, the Organization of the Islamic Conference (OIC), the NATO Partnership for Peace, and the OSCE. In June 2001, leaders of Kazakhstan, China, Russia, Kyrgyzstan, Tajikistan, and Uzbekistan met in China to launch the Shanghai Cooperation Organization (SCO) and to sign an agreement to fight terrorism and ethnic and religious militancy while promoting trade. Kyrgyzstan, Kazakhstan, Russia, Belarus, and Tajikistan established the Eurasian Economic Community in 2000.

The United States and the European Union (EU) nations, along with many others, have diplomatic relations with the country. Kyrgyzstan has especially good relations with Germany, neighboring Central Asian states, and China. The country maintains close ties with other former USSR nations. In environmental cooperation, Kyrgyzstan is part of the Basel Convention, Conventions on Biological Diversity and Air Pollution, the Kyoto Protocol, the Montréal Protocol, and the UN Conventions on Climate Change and Desertification.

ECONOMY

Kyrgyzstan is among the poorest of the post-Soviet countries. the poverty rate was officially estimated at 40.8% in 2004, although Western estimates place it at around 84%. Although coal, gold, mercury, and uranium deposits are considerable, the country boasts few of the oil and gas reserves that promise a badly needed economic windfall to other Central Asian republics.

Kyrgyzstan's economy is primarily agricultural, with cotton, tobacco, wool, and meat being the primary agricultural products, although only cotton and tobacco are exported in any significant quantities. In 2005, 37.1% of GDP was in the agricultural sector; industry accounted for 21.9% and services for 41%. Over 50% of the labor force is engaged in agriculture.

Under the presidency of Askar Akayev, the process for economic restructuring toward a free market orientation outpaced that of most other post-Soviet republics, yet the transition has been an extremely difficult one. Dissolution of the state ordering system in Kyrgyzstan and its reduction in other post-Soviet republics have disrupted the traditional supply channels and effective markets for the country's industries, severely affecting overall economic performance. Akayev was ousted in spring 2005, and former Prime Minister Kurmanbek Bakiyev was elected president in July 2005. Under Bakiyev, concerns to be addressed include continuing privatizations, expansion of democracy and political freedoms, and reduction of corruption, among others.

As of 1995, 59.5% of enterprises had been privatized or converted to joint stock companies; privatized firms accounted for more than half the GDP that year. Some 50% of industrial firms, 75% of agriculture, and 90% of retail trade were privatized by 1995. By 1999, most of the state-owned enterprises had been sold. Kyrgyzstan was the first CIS country to become a member of the WTO.

The Kyrgyz government instituted tight monetary and fiscal policies in 1994 that reduced inflation from 23% per month in 1993 to 5.4% in 1994 and further, to 2.3% in 1995. Inflation was up again to 18% in 1998. Gross domestic product grew by an average annual rate of 7% from 1987 to 1998, with a 1998 growth rate of 1.8%.

A reform of the government structure in early 1992 consolidated 41 ministries into 13 ministries and 7 commissions. As part of this change, the Ministry of Economy and Finance was established to assume the fiscal and economic planning duties previously carried out separately by the Ministry of Finance and the State Planning Committee. In May 1993, Kyrgyzstan was the first country of the CIS countries to announce the introduction of its own currency, the som. Although taken in order to stabilize the national economy in face of continuing turmoil in the ruble zone, this step posed a large setback to previous negotiations for a single monetary union with other post-Soviet republics. The som has been remarkably stable since 1994, and is considered the most stable currency in Central Asia, although the government still faces excessive debt.

A decline in output from the Kumtor gold mine in 2002 resulted in an 0.5% decline in GDP, although GDP growth rebounded to some 6% over the 2003–05 period. The government reduced the fiscal deficit to 1% of GDP in 2005. The government in 2005–06 was embarking upon a poverty-reduction and economic-expansion program, and promised reforms in the tax system.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005, Kyrgyzstan's gross domestic product (GDP) was estimated at $9.3 billion. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $1,800. the annual growth rate of GDP was estimated at 2%. The average inflation rate in 2005 was 4.2%. It was estimated that agriculture accounted for 37.1% of GDP, industry 21.9%, and services 41%.

According to the World Bank, in 2003 remittances from citizens working abroad totaled $108 million or about $21 per capita and accounted for approximately 5.6% of GDP. Foreign aid receipts amounted to $198 million or about $39 per capita and accounted for approximately 10.7% of the gross national income (GNI).

The World Bank reports that in 2003 household consumption in Kyrgyzstan totaled $1.36 billion or about $269 per capita based on a GDP of $1.9 billion, measured in current dollars rather than PPP. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings. It was estimated that for the period 1990 to 2003 household consumption grew at an average annual rate of -3.7%. In 2001 it was estimated that approximately 33% of household consumption was spent on food, 11% on fuel, 3% on health care, and 22% on education. It was estimated that in 2004 about 40% of the population had incomes below the poverty line.

LABOR

In 2000 (the latest year for which data was available), the labor force totaled an estimated 2.7 million persons. As of that year, agriculture engaged 55%, industry 15%, and services 30%. the estimated unemployment rate in 2004 was 18%.

A labor comprehensive law protects the right of all workers to form and belong to unions. The Federation of Independent Trade Unions of Kyrgyzstan (FITUK), successor to the former Sovietera official unions, remains the single trade union umbrella organization. Nineteen of the 20 union organizations in Kyrgyzstan are affiliated with FITUK. The exception is the union of entrepreneurs and cooperative members, which essentially is an association of over 80,000 self-employed persons. Strikes are permitted. Collective bargaining is legally recognized and is used to negotiate workers conditions on a limited basis.

The standard workweek is 41 hours. Safety and health regulations in factories are generally not enforced. Child labor is widespread due to economic hardship. The government set the minimum wage at $2.00 per month, which does not provide a decent standard of living.

AGRICULTURE

In 2003, Kyrgyzstan's crop-producing land amounted to 1,365,000 hectares (3,373,000 acres), or 7.1% of the total land area. About 50% of this area is used to cultivate fodder crops, 42% for winter wheat and barley, 5% for commercial crops (cotton, sugar beets, mulberry trees for silkworms, and tobacco), with the remaining 3% used for growing potatoes and other vegetables. Cultivation occurs primarily in the Shu, Talas, and Fergana valleys. About 39% of GDP was derived from agriculture in 2003. Since independence, about 75% of state farms have been privatized.

Wheat is Kyrgyzstan's main grain crop. Total wheat production was estimated at 998,000 tons in 2004. Individual farmers account for over half of production; state farms, about 40%; and the rest by private households. Production of barley in 2004 was estimated at 233,000 tons; corn, 453,000 tons; and rice, 18,000 tons.

Tobacco is an important cash crop in Kyrgyzstan. the areas around Osh and Jalālābād in the Fergana Valley and the Talas oblast to the north of Osh are the three major tobacco growing regions. The estimated total production was 13,000 tons in 2004.

ANIMAL HUSBANDRY

About 48% of the total land area is considered permanent pastureland. Because of the rugged topography, pasture-based stock breeding is the agricultural mainstay.

Livestock in 2005 included 4 million chickens, 2,964,900 sheep, 1,035,000 cattle, 361,100 horses, 808,400 goats, and 83,000 pigs. Yaks are also bred. Meat production in 2005 totaled 196,000 tons; cow's milk, 1,114,000 tons; wool (greasy), 10,000 tons; and eggs, 18,000 tons.

FISHING

The Naryn River is the primary site of fishing activity, but fishing is of little commercial significance. The Yssk Kol Lake is slightly saline and not conducive to the development of fresh water species fishing. The total catch in 2003 was 26 tons, including 14 tons of carp.

FORESTRY

Forests and woodlands account for about 5.2% of the total land area. With 85% of the country covered by high-altitude mountain ranges, and coupled with an underdeveloped transportation system, the forestry sector is not commercially significant. Imports of forest products totaled $13.3 million in 2004.

MINING

Kyrgyzstan's southwestern region contained most of the nation's mineral wealth, including, most importantly, antimony (often found with lead-zinc), mercury (often found with fluorspar), and gold. Principal deposits of these minerals were found in the Kadamzhayskiy Rayon and Khaydarkan regions, in the Alay foothills. The Khaydarkan mercury mining and metallurgical complex, in the Osh region, was the major producer of metallic mercury in the former Soviet Union.

In 2002, Kyrgyzstan produced 537 metric tons of metallic mercury, a decline from 579 metric tons in 2001. Antimony metal and compounds production in 2002 totaled 1,504 metric tons. the mountains also contained deposits of gold, mercury, tungsten, molybdenum, rare earth metals, indium, sulfur, tin, and arsenic. Gold production in 2002 was estimated at 18,000 kg. Output figures in 2002 were: fluorspar concentrate, estimated at 2,750 metric tons, up from 1,175 metric tons in 2001; and cement 532,800 metric tons, up from 468,900 metric tons in 2001.

ENERGY AND POWER

Unlike its Central Asian neighbors, Kyrgyzstan has insignificant reserves of petroleum and natural gas. Kyrgyzstan's principal energy resources are its deposits of coal. Sub-bituminous coal deposits are found on the southern fringe of the Fergana Valley (at Suluktu and Kyzl-Kyya), while hard coal comes from the west and northwest fringes of the valley (at Tash-Komur, Jalal-Abad, and Osh) and in the Tian Shan foothills east of Ysyk Kol Lake. In 2002, coal production amounted to 506,000 short tons, of which lignite or brown coal accounted for 387,000 short tons and bituminous copal 119,000 short tons. However, demand for coal in that year amounted to 1,369,000 short tons, necessitating the import of 978,000 short tons to make up the difference.

Several large hydroelectric projects are spread along the Naryn River and its headwater tributaries, and a series of dams built on irrigation canals, produce power for the manufacturing sector around Bishkek. The two major electric power plants are a 1,200 MW facility at Toktogul and a 760 MW generator at Bishkek. In 2002, electrical production totaled 13.046 billion kWh, of which nearly 91.8% came from hydropower and 8.2% from fossil fuels. Of the electric power produced, 27% was exported in 2002, mainly to Uzbekistan. Total installed capacity in 2002 was 3.779 million kW. Consumption of electricity in 2002 was 8.938 billion kWh.

Production of oil and natural gas in small quantities comes from fields at the northeastern edge of the Fergana Valley. In 2002, Kyrgyzstan produced an average of 2,000 barrels per day of oil. However, demand for oil averaged 10,090 barrels per day in that year, requiring Kyrgyzstan to import (including crude oil) an average of 8,320 barrels of oil per day. As with oil, domestic natural gas production satisfies only a small percentage of domestic demand. In 2002, Kyrgyzstan's natural gas consumption came to 42.38 billion cu ft, while production was only at 350 million cu ft. Natural gas imports for that year came to 42.38 billion cu ft. A crude oil refinery was built in Dzhalalahad in 1997 by a Kyrgyz-Canadian joint venture. It produces heavy fuel oil, diesel fuel, and gasoline. In 2002, production of refined petroleum products averaged 2,350 barrels per day.

INDUSTRY

During the Soviet era, industry in Kyrgyzstan was totally dependent on the other republics for raw materials and other resources. Between 1985 and 1989, industrial output increased at a rate of over 5% annually. With the disruption of traditional supply and export arrangements within the former USSR, however, industrial output declined by 1% in 1990 and dropped by over 23% in 1992. Industrial production decreased by 24% in 1994 and by another 12.5% in 1995. By mid-1995, production began to recover and in 1997, Kyrgyzstan reported an industrial growth rate of 7%, and one of 14% for 1998. The high growth rate in 1998 was associated with a steep rise in gold production. Nearly all of Kyrgyzstan's industrial output derives from the capital of Bishkek and surrounding areas. Mechanical and electrical engineering (vehicle assembly, washing machines, electrical appliances, electronics), light industry (mainly textiles and wool processing), and food processing make up close to 75% of the country's industrial production and 80% of its industrial exports. Other important industries include chemicals, leather goods such as shoes, and construction materials (primarily cement). In 2004, the industrial production rate stood at 7.l%. In the early- and mid-2000s, the mining sector accounted for the majority of foreign investment. the high world price for gold also contributed to a rise in GDP and attracted foreign investment in the mid-2000s.

The government passed the Privatization and Denationalization Act in December 1991, authorizing the transfer of all small, medium, and large-scale industrial enterprises to the private sector. The Concept Law on Privatization, passed in 1994, was designed to correct early problems with the transition. By 1995, about 600 enterprises had been sold, with 250 fully privatized. the transition was also expected to involve the conversion of defense industries to civilian use under private ownership. One important conversion involved the participation of a South Korean firm in establishing electronics manufacture at a plant previously geared toward military-related production. The government is encouraging the purchase of substantial shares of individual enterprises by worker collectives, although more widespread and noncollective ownership is also being promoted. By 1999, much of the government's stock had been sold.

SCIENCE AND TECHNOLOGY

The Kyrgyz Academy of Sciences, founded in 1954 at Bishkek, has departments of physical engineering, mathematics, mining geological sciences, and chemical-technological, medical-technological, agricultural, and biological sciences. Attached to the academy are 24 specialized learned societies and research institutes concerned with agriculture, medicine, natural sciences, and technology. Kyrgyz State University has faculties of geography, physics, mathematics, information science and applied mathematics, biology, and chemistry. Agricultural and medical institutes and a technical university are located in Bishkek. The city also has a botanical garden and a scientific and technical library.

In 1987–97, science and engineering students accounted for 14% of college and university enrollments. In 2002, there were 413 researchers and 51 technicians actively engaged in research and development (R&D) per million people. For that same year, R&D expenditures totaled $16.104 million, or 0.20% of GDP, with business and government accounting for 52.7% and 45.9%, respectively. Higher education accounted for only 0.1%, with foreign sources providing the remaining 1.2%. High technology exports in 2002 amounted to $6 million, or 6% of manufactured exports.

DOMESTIC TRADE

As in other post-Soviet republics, structural reform appears to be proceeding most rapidly in the domestic retail sector. Small shops and traders predominate among the country's private retailing entities. However, expansion in the number of private wholesale distributors has been much less marked, placing small retailers in a disadvantaged position compared with large-scale and potentially monopolistic producers within the country's industrial sector. As of 2006, the government continued to work toward reforms, including greater privatization, that would strengthen a market economy. A 20% value-added tax applies to most goods and services.

Most businesses open around 9 am and close at about 6 pm, with lunch taken sometime between noon and 2 pm. Some offices are open from 9 am to 1 pm on Saturdays. Retail shops are usually open from 7 am to 8 pm, with an afternoon lunch period. Department stores, bookstores, and other shops usually open according to state institution hours. Bazaars are open from 6 am until 7 or 8 pm.

FOREIGN TRADE

Since 1992, Kyrgyzstan's trade balance has been negative, continuing the structural deficit caused by the costs of oil and gas, pharmaceuticals, and agricultural resources formerly supplied through internal trade with other Soviet republics. The primary export partners in 2004 were: the United Arab Emirates (28.2%); Russia (19.1%); China (12%); Kazakhstan (11.1%); and Switzerland (6.3%). Import partners included: China (26.3%); Russia (22.3%); Kazakhstan (17.1%); and Turkey (5.4%).

Kyrgyzstan exports metals, including gold, mercury, iron, steel and uranium; hydropower; tobacco; cotton; road vehicles; and inorganic chemicals.

BALANCE OF PAYMENTS

Kyrgyzstan had traditionally maintained a trade deficit, derived mostly from dependence on imports from other former Soviet republics. Exports began to increase by 1995, however; the country registered relatively high growth rates in the early 2000s and had a trade surplus in 2001. Foreign exchange reserves are minimal ($593.2 million in 2005). In 2001, the IMF awarded Kyrgyzstan $93 million in aid over a three-year period. Total external debt as of January 2005 stood at $2.428 billion.

In 2005, exports were valued at $759 million, and imports at $937.4 million. The current-account balance in 2005 was estimated at -$77.02 million.

BANKING AND SECURITIES

The central bank of Kyrgyzstan is the National Bank of the Kyrgyz Republic (NBK). It heads all 20 banks in the system, the savings bank, three former specialized state banks that have been converted into joint-stock commercial banks, two foreign joint-venture banks, and commercial banks. The specialized banks still dominate the allocation of credit and the taking of deposits, although some smaller banks are starting to challenge the major banks. However, many of the country's commercial banks have only one office. The larger banks have large bad loan portfolios; Promstroybank (Construction Bank) had 80% of its loans overdue at the end of 1994. Bank failures and bank consolidation were common during the late 1990s.

The NBK, formerly the local branch of Gosbank (the State Bank of the former Soviet Union), began to operate independently in

CountryExportsImportsBalance
World581.7717.0-135.3
United Arab Emirates144.37.8136.5
Switzerland-Liechtenstein117.92.5115.4
Russia97.0176.1-79.1
Kazakhstan57.1170.9-113.8
Canada31.08.322.7
China23.377.7-54.4
Tajikistan18.93.115.8
Uzbekistan16.339.2-22.9
Turkey11.026.0-15.0
Latvia9.4…9.4
(…) data not available or not significant.
Current Account-44.0
     Balance on goods-82.7
         Imports-673.0
         Exports590.3
     Balance on services7.0
     Balance on income-61.7
     Current transfers93.4
Capital Account-0.9
Financial Account-23.0
     Direct investment abroad…
     Direct investment in Kyrgyzstan45.5
     Portfolio investment assets1.1
     Portfolio investment liabilities5.0
     Financial derivatives-20.0
     Other investment assets-78.1
     Other investment liabilities23.5
Net Errors and Omissions71.6
Reserves and Related Items-3.8
(…) data not available or not significant.

December 1991 and is intended to perform all the functions of a central bank. The government has stuck with a tight monetary policy. The currency unit was initially the ruble following independence; however, with IMF support, the government introduced a new currency, the som, in May 1993 in order to stabilize the economy, avoid the inflation of the ruble, and attract foreign investment. The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $114.9 million. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $170.2 million. the money market rate, the rate at which financial institutions lend to one another in the short term, was 11.9%.

The country has a small stock exchange, opened in May 1995. As of January 1996, 298 companies issued securities, with 7 trading on the stock exchange.

INSURANCE

No recent information is available.

PUBLIC FINANCE

During the early 1990s, economic output declined, while inflation escalated. As a result, the proportion of public revenues in GDP plummeted. Transfers from the former Soviet Union amounting to over 11% of GDP largely created an overall budget surplus equivalent to 4.1% of GDP in 1991. In 1992, parliament agreed to a further tightening of fiscal policy (including decreased expenditures and the elimination of transfers to inefficient state enterprises) due to the virtual termination of inflowing subsidies caused by the demise of the Soviet Union. The som, currency introduced by the government in May 1993, has proven fairly stable, and monthly inflation has slowed from 40% to about 10%.

The US Central Intelligence Agency (CIA) estimated that in 2005 Kyrgyzstan's central government took in revenues of approximately $516.3 million and had expenditures of $539.9 million.

Revenue and Grants12,482.1100.0%
     Tax revenue9,187.973.6%
     Social contributions……
     Grants6225.0%
     Other revenue2,672.321.4%
Expenditures13,098.8100.0%
     General public services3,202.724.5%
     Defense980.67.5%
     Public order and safety7525.7%
     Economic affairs1,423.110.9%
     Environmental protection……
     Housing and community amenities800.96.1%
     Health1,37910.5%
     Recreational, culture, and religion2952.3%
     Education2,847.621.7%
     Social protection1,417.910.8%
(…) data not available or not significant.

Revenues minus expenditures totaled approximately -$23.6 million. Total external debt was $2.428 billion.

The International Monetary Fund (IMF) reported that in 2001, the most recent year for which it had data, budgetary central government revenues were som12,482.1 million and expenditures were som13,098.8 million. The value of revenues was us$258 million and expenditures us$271 million, based on a official exchange rate for 2001 of us$1 = som48.378 as reported by the IMF. Government outlays by function were as follows: general public services, 24.5%; defense, 7.5%; public order and safety, 5.7%; economic affairs, 10.9%; housing and community amenities, 6.1%; health, 10.5%; recreation, culture, and religion, 2.3%; education, 21.7%; and social protection, 10.8%.

TAXATION

The personal income tax varies up to a maximum rate of 40%; the corporate rate ranges from 15–55% with a standard rate of 35%. Also levied are a 20% value-added tax; a withholding tax ranging from zero to 5%; and a social security contribution of 37% by employers and 1% by employees.

CUSTOMS AND DUTIES

Imports are subject to customs duties at an average rate of 10%. The rate is 10–20% for certain products, including tobacco, alcoholic beverages, precious metals, and petroleum. Imported raw materials and imports from the former USSR are exempt. Also, a 20% value-added tax is levied on products from everywhere except Azerbaijan, Belarus, and Russia. Kazakhstan, Belarus, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan have formed a customs union. Kyrgyzstan and the United States signed a most-favored nation agreement in 1992.

FOREIGN INVESTMENT

In June 1991, the Kyrgyzstan parliament passed the Foreign Investment Law guiding the establishment of local enterprises with foreign shareholding as well as 100% foreign ownership. the law secures the right to repatriation of profits and allows foreign investment in all sectors of the economy except military production and certain forms of ownership in agriculture. Foreign buyers may acquire small enterprises being transferred from the state to the private sector directly on the open market; foreign participation in auctions or other forms of bidding for medium and large-scale enterprises requires special government permission. At present, the government is attempting to attract overseas investors, particularly to the minerals, electronics, and agro-processing sectors of the economy. In 1995, the Foreign Investment Law was amended to expand foreign investment opportunities, to clarify investors' rights, and to remove or extend some time limits on certain aspects of foreign investment. Foreign direct investment (FDI) that year amounted to about $800 million, and was rising at a slow but steady rate. Investments from Canada represented 45% of the total; these were concentrated primarily in gold mining (the largest single project being the $375 million development of the Kumtor gold field). Investments from Turkey comprised about 20% of the total; those from the United States, 12%; and China, 10%. In 1998, foreign direct investment totaled $102 million, up from $83 million in 1997.

In 2004, the Kyrgyz government founded the National Council for Good Governance that was tasked with tackling corruption. The government is working with NGOs, international financial institutions, and international donors, to develop a plan to combat corruption. The government and members of the business and diplomatic communities have met to discuss reforms and a strategy to market the Kyrgyz Republic to foreign investors. Reforms are to be made in the banking sector, in addition to legal reforms and infrastructure improvement. Taxes are complex, with businesses paying anywhere from 12 to 19 different taxes; some of these are not financially burdensome, but require time-consuming accounting. There are currently four free economic zones (FEZs) in Kyrgyzstan: at Bishkek, Naryn, Karakol, and Maimak. FDI totaled $116 million in 2002, an increase from $90 million in 2001. In 2002, the countries providing the largest sources of FDI included: the United States ($39.1 million); Germany ($31.4 million); Turkey ($30 million); Canada ($25.7 million); South Korea ($11.7 million); and China ($10 million).

ECONOMIC DEVELOPMENT

Under the Soviet system, economic planning efforts in Kyrgyzstan focused on increasing agricultural production (particularly in the meat and dairy subsectors during the 1980s) and specialized development of industrial sectors in line with the wider Soviet economy. Transfer payments from the central government as well as capital inflows into state enterprises covered the republic's modest balance of trade deficit with its Soviet trading partners and countries beyond. With this support, GDP growth was sustained at moderately high levels in the late 1980s, averaging 5.1% in 1985–89.

Kyrgyzstan declared its independence in 1991. Since then, the Kyrgyzstan government faced the task of sustaining a viable national economy despite the sudden cessation of transfers from the central government, the country's critical dependence on oil and gas imports, and its landlocked geographic position that has hampered development of trading ties outside the economically troubled former Soviet Union. Reforms have aimed at making the transition to a market-oriented economy.

Kyrgyzstan experienced declines in gross domestic product (GDP) from 1991–94. Both per capita income and overall output fell to well below the 1990 level. Agricultural output fell by an estimated 20%, and industrial output, by 42%. By 1996, however, Kyrgyzstan had begun to show progress, especially when compared to the other former Soviet republics, in the areas of privatizing state enterprises, ending the state ordering system, lifting price controls, and converting military enterprises to civilian uses. Prime Minister Apas Jumagulov reported in 1995 that the economic crises had eased, and the rates of decline were slowing.

A value-added tax was introduced in 1992 to help strengthen the government revenue base. Expected state revenues, however, have fallen short of expectation due to steeply declining consumption and collection difficulties within the new tax system. With seriously declining revenues since 1991, the government's ability to make new development investments in either the productive sectors or physical and social infrastructure has been severely constrained. Capital expenditures as a percentage of total budgetary expenditures declined from 15% in 1990 to only 7% in 1992. Because of its commitment to democracy, Kyrgyzstan has received favorable treatment from international economic aid agencies. In 1992, the government signed a formal agreement with Russia transferring its share of the former Soviet Union's external debt to the latter in return for relinquishing most claims to the financial and other assets of the former USSR.

In May 1996, President Akayev negotiated an aid package from the Asian Development Bank that included $60 million in loans to finance privatization of agriculture and to renovate power and heating facilities in Bishkek. In support of the government's efforts to evolve the country's agriculture from large communes to private farms, the Asian Development Bank also offered loans to small farmers. In July 1996, the International Finance Corporation promised $40 million to finance a project to mine for gold near Issy-Kul', a large lake in the northeast. In November 1996, the World Bank moved to support programs to reform the Kyrgyzstan banking system and to modernize the electric power generating system. In 2001, the IMF awarded Kyrgyzstan $93 million in aid over a three-year period, and that year Kyrgyzstan received $50 million in aid from the United States.

In 2001, the government published its Comprehensive Development Framework (CDF) for 2001–10. The CDF contains the following goals for strengthening the economic stability of the country: modernization of the telecommunications, transportation, and tourism infrastructures; reduction and rationalization of the government's regulatory role in the economy; implementation of more sound fiscal, monetary, and taxation policies; reform of the judicial system to protect property rights; poverty reduction and employment creation, especially among Kyrgyz youth; and strengthening and reforming the banking sector. In addition to these goals, by 2006 other ingredients of future growth included progress fighting corruption, further restructuring of domestic industry, and success in attracting foreign investment.

SOCIAL DEVELOPMENT

Old age, disability, and survivorship pensions are provided to all employed persons and members of cooperatives and collective farms. Contributions of 8% of earnings from employees, and 25% of payroll by employers finance the program. A universal medical care system exists for all residents. Maternity benefits for employed women include 100% of pay for 126 days of leave. Workers' compensation, unemployment benefits, and family allowances are also provided.

Women have equal status under the law, although discrimination persists. Women are well-represented in the workforce in urban areas, and participate in higher education and professional fields. However, they appear to be disproportionately affected by growing unemployment. A women's congress in Bishkek convenes periodically to consider women's issues. Opportunities for women are lacking in the rural areas. Domestic abuse and violence against women remain common. The lack of government funds impacts the programs aimed at assisting children. Child labor is increasingly common.

There is reported discrimination in hiring, promotion, and housing against citizens who are not ethnic Kyrgyz. Police brutality has been reported, as well as arbitrary arrest and detention. The government violates basic civil rights, including the freedoms of speech, assembly, association, and the press. In 2004 the human rights record showed improvement. There were problems with freedom of speech and the press, due process for the accused, religious freedom, ethnic discrimination, and electoral irregularities. There are cases of police brutality and arbitrary arrest, but the number of incidents is declining. Citizens have only a limited ability to peaceably change their government. there are independent newspapers, magazines, and radio stations, and some independent television broadcasts, although the government takes measures to curtail the operations of independent media.

HEALTH

Kyrgyzstan's health care system has remained state-run following the breakup of the Soviet Union. Primary health care is being restructured using a family group practice model. As of 2004, there were an estimated 268 physicians, 675 nurses, and 26 dentists per 100,000 people. Approximately 26% of the country's hospital beds were eliminated between 1990 and 1996, but hospital expenditures still account for more than 70% of health care spending. Total health care expenditure was estimated at 4.4% of GDP.

The infant mortality rate in 2005 was 35.64 per 1,000 live births and the maternal mortality rate was 65 per 100,000 live births. As of 2002, the crude birth rate and overall mortality rate were estimated at, respectively, 26.1 and 9.1 per 1,000 people. Major causes of death were communicable diseases and maternal/perinatal causes and injuries. Immunization rates for children up to one year old were tuberculosis, 97%, and polio, 84%. As of 1999 the rates for DPT and measles immunizations were, 98% and 97%, respectively. Tuberculosis incidence and mortality rates are rising steeply, reflecting economic hardship and the deterioration of the health infrastructure. Controlled for 30 years, diphtheria has reemerged since the breakup of the Soviet Union. Nearly 50% of these cases occurred in persons 15 or under. The cancer mortality rates in Kyrgyzstan were higher than the medium human development countries. In 2005, life expectancy was 68.16 years.

The HIV/AIDS prevalence was 0.10 per 100 adults in 2003. As of 2004, there were approximately 3,900 people living with HIV/AIDS in the country. There were an estimated 200 deaths from AIDS in 2003.

HOUSING

During the Soviet era, there was a severe lack of urban housing in Kyrgyzstan. In 1990, Kyrgyzstan had 12.1 sq m of housing space per capita and nearly 85,000 households (or 18.6%) were on waiting lists for housing in urban areas. At the first census in 1999, there were about 1,109,716 households in the country; the average number of members per household was 4.3. Overcrowding is a problem both in urban and rural areas; it is not unusual for two or three generations of family members to live in a single household. From 1996–2000, only about 14,800 new dwellings were built. the rate of housing constructions has not kept pace with the growth of population. But just as troubling is the slow rate of maintenance and improvement of the existing housing stock. In some apartment complexes, an entire floor may share one toilet. In 2000, about 77% of the population had access to improved water sources; most residents had some access to improved sanitation.

EDUCATION

The educational system was not developed until after the 1920s when the country came under Soviet control. Primary school covers four years of study and is compulsory. This is followed by five years of basic secondary studies. At this stage, students may continue for two years of complete secondary education (necessary for university studies) or opt for a three-year vocational program. There are also training programs available for over 200 trades. the academic year runs from September to July.

In 2001, about 14% of children between the ages of three and five were enrolled in some type of preschool program. Primary school enrollment in 2003 was estimated at about 89% of age-eligible students. It is estimated that about 93% of all students complete their primary education. The student-to-teacher ratio for primary school was at about 24:1 in 2003.

The State University of Kyrgyzstan is the main institution of higher education. In 2003, about 42% of the tertiary age population were enrolled in some type of higher education program. the adult literacy rate for 2004 was estimated at about 98.7%.

The Ministry of Education, Science and Culture is the primary administrative body. As of 2003, public expenditure on education was estimated at 4.4% of GDP, or 18.6% of total government expenditures.

LIBRARIES AND MUSEUMS

Important libraries in Kyrgyzstan include the National Library of the Kyrgyz Republic, with over 3.6 million volumes, and the Scientific Technical Library of Kyrgyzstan, with over 5.8 million volumes. The Kyrgyzstan State University library contains over 931,000 volumes, the Kyrgyzstan Agricultural Institute holds 626,000, and the Kyrgyzstan Technical University holds 766,000 volumes.

The State Historical Museum of Kyrgyzstan has 20,000 items on display depicting the history of Kyrgyzstan. The Kyrgyzstan Museum of Fine Arts collects primarily modern work. There are several regional museums exhibiting primarily archaeological findings.

MEDIA

Telephone links to other former Soviet republics are via land line or microwave, and to other countries through Moscow. the telephone network is underdeveloped, with some 41,000 residents waiting for telephone lines as of 2003. In 2003, there were an estimated 76 mainline telephones for every 1,000 people. the same year, there were approximately 27 mobile phones in use for every 1,000 people.

The state-owned Kyrgyz National TV and Radio Broadcasting Corp. has the widest broadcast range, but still could not reach the entire nation as of 2005. In 1998, there were 12 AM and 14 FM radio stations. In 2003, there were an estimated 110 radios and 49 television sets for every 1,000 people. The same year, there were 12.7 personal computers for every 1,000 people and 38 of every 1,000 people had access to the Internet. There were two secure Internet servers in the country in 2004.

In 2004, between 40 and 50 newspapers and magazines were published on a regular basis. The largest daily newspapers (with 2002 circulation figures) were Sovetik Kyrzystan (circulation 162,625), Slovo Kyrgyzstan (in Russian, circulation 111,000), Vecherni Bishkek (also in Russian, with a circulation of 51,500), and Kyrgyz Tuusu. The state-operated printing house, Uchkun, is the primary printing facility for the nation's major newspapers. An independent printing press was opened in 2003 by a group known as Media Support Center; by late 2004, this press was reportedly publishing about 50 commercial and political newspapers.

On 2 July 1992 the government passed a law on the press and mass media which supports freedom of the press but also provides guidelines proscribing publication of certain information. the law supports the right of journalists to work, obtain information, and publish without prior restraint. The law prohibits publication of state secrets, material which advocates the overthrow of, or changes to, the existing constitutional order in Kyrgyzstan or elsewhere. It also prohibits publication of material that advocates war, violence, or intolerance toward ethnic or religious groups. Desecration of national norms, ethics, and symbols like the national seal, anthem, or flag is prohibited. Publication of pornography is prohibited, as is propagation of untrue information.

ORGANIZATIONS

Important economic organizations in Kyrgyzstan include the Chamber of Commerce and Industry and the Kyrgyzstan Council of Free Trade Unions. Active political organizations include the Committee for the Defense of Human Rights, the Slavic Fund, Free Kyrgyzstan, Agigat, and Ashar. The Kyrgyz Bar Association was formed in August 1995. The Congress of Women of the Kyrgyz Republic serves as an umbrella organization for women's development groups. There are a number of sports associations and clubs through the country. The Kyrgyzstan Medical Association is one of several professional associations dedicated to research and education in specialized fields. Kiwanis International and the Lions Clubs have programs in the country. The Red Crescent Society and Habitat for Humanity are also active.

TOURISM, TRAVEL, AND RECREATION

The development in tourism has been a main priority of Kyrgyzstan since it gained its independence in 1991. Osh, Kyrgyzstan's second-largest city, is considered a holy city by Muslim pilgrims who visit it annually to pray at its Islamic shrines. The capital city of Bishkek is surrounded by some of the highest mountain ranges in the world. Bishkek is known for its large public parks and gardens, shady avenues, and botanical gardens. Equestrian sports are very popular in Kyrgyzstan.

Passports and visas are required for entry to Kyrgyzstan and are not obtainable at land borders or other airports. the principal accommodations are hotels that formerly belonged to the Soviet Intourist system. However, foreign chains have developed a number of projects in Central Asia. In 2002 there were 139,589 visitors who arrived in Kyrgyzstan, of whom 63% came from Europe.

In 2004, the US Department of State estimated the daily expenses of staying in Kyrgyzstan at $189.

FAMOUS KYRGYZSTANIS

Askar A. Akayev was elected president of the republic of Kyrgyzstan, in October 1990, prior to the republic declaring its independence. He remained president until 2005, when he was deposed in the popular uprising known as the "Tulip Revolution." Kurmanbek Bakiyev (b.1949) became acting president in 2005. Chinghiz Aitmatov (b.1928), winner of two Lenin Prizes for literature, is a native Kyrgyzstani.

DEPENDENCIES

Kyrgyzstan has no territories or colonies.

BIBLIOGRAPHY

Abazov, Rafis. Historical Dictionary of Kyrgyzstan. Lanham, Md.: Scarecrow, 2003.

Commission on Security and Cooperation in Europe. Human Rights and Democracy in Kyrgyzstan: Hearing Before the Commission on Security and Cooperation in Europe, One Hundred Seventh Congress, First Session, December 12, 2001. Washington, D.C.: U.S. Government Printing office, 2002.

Foreign Investment and Privatisation in Kyrgyzstan. London: Clifford Chance, 1993.

Handrahan, Lori. Gendering Ethnicity: Implications for Democracy Assistance. New York: Routledge, 2002.

Kolsto, Pal. Russians in the Former Soviet Republics. Bloomington: Indiana University Press, 1995.

Kort, Michael. Central Asian Republics. New York: Facts On File, 2004.

Kyrgyzstan: The Transition to a Market Economy. Washington, D.C.: World Bank, 1993.

Seddon, David (ed.). A Political and Economic Dictionary of the Middle East. Philadelphia: Routledge/Taylor and Francis, 2004.

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