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Kyrgyzstan
Area: 198,500 km2
Population: 5 million
Capital City: Bishkek (population: 600,000)
People: 67% Kyrgyz, 14% Uzbek, 11% Russian,1% Ukrainian, Dungan, Uighur
Languages: Kyrgyz and Russian
Religion(s): Muslim/ Russian Orthodox and other Christian minorities
Currency: Som
Major political parties: Asaba, Union of Democratic Forces, Ar-Namys, Ata-Meken
Head of State: Kurmanbek Bakiev
Prime Minister: Almazbek Atambayev
Foreign Minister: Ednan Karabayev
Membership of international groups/organisations: WTO, OSCE, UN, IMF, EBRD. Kyrgyzstan had a Partnership and Cooperation Agreement with the EU since July 1999 and has been part of NATO's Partnership for Peace programme since June 1994.
GEOGRAPHY
Kyrgyzstan is land-locked by Kazakhstan, Uzbekistan, Tajikistan and China. Around 75% of the land area is mountainous, while between the snow covered mountain summits lie broad grassy highland valleys and a large salt lake, Issyk Kul, which occupies a highland basin in the north-east.
HISTORY
The modern nation of Kyrgyzstan is based on a civilisation of nomadic tribes who moved across the eastern and northern sections of present-day Central Asia. Following a brief period of independence after the 1917 Bolshevik Revolution toppled the Russian empire, the territory of present-day Kyrgyzstan was designated a constituent part of the Union of Soviet Socialist Republics (USSR) in 1924. It achieved the status of a full republic of the Soviet Union in 1936. Kyrgyzstan became independent from the Soviet Union in 1991.
Ethnic Conflict
Relations between the Uzbeks and Kyrgyz communities are strained in the south of the country. Serious disputes between Kyrgyzstan and Uzbekistan over the two separate Uzbek enclaves, Shahimardan and Sukh, located in southern Kyrgyzstan have hindered progress on the delimitation of the Uzbek-Kyrgyz border. In February 2006, fighting also broke out between Kyrgyz and Dungans (Chinese Muslims) communities in the village of Iskra near Bishkek.
POLITICS
The Tulip Revolution
The current President, Kurmanbek Bakiev, came to power in 2005 following the so-called Tulip Revolution. Bakiev replaced Askar Akayev, who had been in power since 1990.
Although regarded as a relative island of democracy in the 1990s, compared to more autocratic neighbours, the continuing poor economy and ever-increasing corruption had lost Akayev much of his popular support, particularly in rural areas and the south. The increasing role played by Akayev's family in politics and the economy had also lost him the backing of key national and regional elites.
The Revolution started with protests in the south over the Parliamentary election results in February 2005. In Jalalabad and Osh- protestors seized government buildings, took control of the airports to prevent the government from flying in new troops and voted to set up councils to run the regions themselves. With Osh and Jalalabad under their control, the opposition moved up to Bishkek for the next stage.
On 24 March, 15,000 pro-opposition demonstrators gathered in Bishkek and called for Akayev's resignation. Protestors seized the presidential administration building, after which Akayev fled the country for Moscow (he officially resigned the next month). Looting broke out in Bishkek on the evening of 24 March, causing an estimated \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$100 million in damage.
President Kurmanbek Bakiev
Bakiev was not a new figure to Kyrgyz politics. He was Prime Minister in 2000-2002 under Akayev but fell after the police dealt heavy-handedly with a demonstration in the town of Aksy early in 2002 and killed a number of people. He was thought likely to have been Akayev's main opponent in the Presidential elections which were due in 2006. Unlike Akayev he was seen to represent the south of Kyrgyzstan. He led the anti-Akayev People's Movement of Kyrgyzstan (PMK). In 2005 he was one of the main leaders of the revolution and was first appointed acting President and Prime Minister until the Presidential elections of 10 July. These elections confirmed him as President with 88% of the vote.
Felix Kulov was appointed Prime Minister following the Tulip Revolution. Since independence, Kulov had held a variety of influential government positions. He joined the opposition Ar-Namys (Honour) Party in 1999, was arrested on corruption charges in 2000 and received a seven year prison sentence (later extended to 10 years) the following year. He was released following the 24 March revolution. On 12 May 2006 Bakiev formed an alliance with Kulov whereby Kulov agreed to drop out of the Presidential race on condition that he became Prime Minister in the event of Bakiev winning the elections.
In November 2005, both Beknazarov and Otunbayeva (leading figures from the Tulip Revolution) stood in parliamentary by-elections. Otunbayeva lost, but Beknazarov was elected to parliament. On 23 January 2006, Beknazarov and Otunbayeva announced the formation of a new opposition party, Asaba. Several other prominent leaders of the 'Tulip Revolution' who were originally welcomed into Bakiev's government have now moved into the opposition, including the former speaker of Parliament, Omurbek Tekebaev.
Felix Kulov and the position of Prime Minister
On 19 December 2006, Kulov resigned as Prime Minister automatically triggering the dismissal of his cabinet. Kulov explained that the reason for the resignation was to smooth the adoption of the new constitution (see below) and also because of worsening relations between the executive and legislative branches of power.
Parliament twice rejected Bakiev’s renomination of Kulov as Prime Minister. After Kulov’s nomination failed for a second time, Bakiev nominated the acting Agriculture Minister, Azim Isabekov, a close associate of his and former deputy head of the Presidential Administration, on 26 Janaury 2007. On 29 January, Parliament duly elected Isabekov to the Prime Ministership.
On 14 February 2007, Kulov announced his decision to join the opposition. On 18 February members of the For Reform movement, including Tekebaev, formed a new political alliance with Kulov, the United Front for a Worthy Future of Kyrgyzstan.
Kulov’s joining the opposition forced Bakiev to respond with a series of concessions including decriminalisation of libel and insult laws and replacement on 29 March of the short lived Prime Minister, Isabekov, with one of the leading oppositionists, Almazbek Atambayev.
However, Kulov’s presence has also divided the opposition. On 28 March, those opposition members unhappy with the presence of Kulov in their ranks announced the establishment of a new opposition movement, One Kyrgyzstan. The leaders of One Kyrgyzstan include the co-chairs of the Asaba Party, Beznazarov and Otunbayeva.
Constitutional Reform
During the election, Bakiev promised significant reforms to the Constitution, including those which would reduce the power of the President. On becoming President though, Bakiev;’s enthusiasm for such reforms appeared to wane.
In April 2006 the For Reform movement. The For Reform movement drew up a ten point programme of demands including faster progress towards constitutional reform and action against official corruption. On 27 May, between 5,000-10,000 of their supporters took part in a peaceful demonstration in Bishkek. The demonstrators set September as a target date for the new Constitution, which was not met. In November the opposition encamped in Bishkek and demanded Bakiev's resignation. Bakiev was forced to agree to a new Constitution that trimmed Presidential powers. The new Constitution was not altogether clear in some respects and following conflict between the government and opposition, there was a further amendment in December 2006, restoring some of the Presidential powers ceded earlier.
From 9-19 April 2007, the United Front for a Worthy Future of Kyrgyzstan organised a series of demonstrations in both Bishkek and the regions. The opposition’s key demand was for early presidential elections, but they also called for constitutional reform and the introduction of a fully proportional representation system for parliamentary elections. The demonstrations ended on 19 April after police dispersed the rally in Bishkek after violence broke out.
The situation now appears to be more stable. Bakiev’s position has been strengthened and that of the opposition has been weakened.
Other Political Challenges
The economy remains weak and depends heavily on the black economy and remittances from Kyrgyz nationals working abroad. Corruption, including at all levels of government and the influence of organised crime appear to be increasing.
The north-south divide remains an issue. The removal of the Governor of Jalalabad and closure of the Oxus mine in Talas, leading to increased unemployment, hurt Bakiev's popularity in these areas in the early months of 2006. However, Bakiev's support base in the south remains - Southerners are at least pleased that their man is in power and blame many of the current problems on parliament rather than Bakiev.
ECONOMY
Basic Economic Facts (for 2006)
GDP: US \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$2.255 billion
Annual GDP Growth: 2.7%
Inflation: 6.4%
Major Industries: Mining, hydropower, agriculture
Major trading partners: The United Arab Emirates, Russia, Kazakhstan, USA, Germany.
Foreign Direct Investment: US \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$139.2 million (June 2006)
Debt: US \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$2.205 billion
Kyrgyzstan remains one of the poorest countries of the Former Soviet Union. Despite the backing of major western donors, including the International Monetary Fund, Kyrgyzstan has experienced major difficulties since independence. The Kyrgyz economy was severely affected by the collapse of the Soviet Union and the resulting loss of its vast market.
Agriculture is the largest sector of the economy accounting for 35% of GDP and more then half of all employment.
Among Kyrgyzstan's mineral reserves are substantial deposits of deep-seam coal, gold, tin, uranium and other rare-earth metals. Kyrgyzstan has negligible petroleum and natural gas reserves; it imports petroleum and gas.
In 2005, Kyrgyzstan experienced a decline in GDP of 0.6%. Since then, the government has made progress in controlling the fiscal deficit, nearly closing the gap between revenues and expenditures in 2006. GDP per capita was approximately \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$2,100 for 2006. Kyrgyzstan’s GDP growth for 2006 was 2.7%. Exports in 2006 were around \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$796 million (including \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$206 million in gold) whilst imports were around \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$1,931 million. Kazakhstan is emerging as a key investor in Kyrgyzstan. In 2006, Kazakhstan invested \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$37.3 million.
In 2005, Bishkek agreed to pursue much needed tax reform and 2006 was Kyrgyzstan’s best fiscal year for a decade due to improvements in tax collection. In 2006, Kyrgyzstan became eligible for the heavily indebted poor countries (HIPC) initiative, which was turned down by President Bakiev on the grounds that there was no popular support for the move. The Kyrgyz government have set a target of 6% GDP growth for 2007.
Foreign investors in Kyrgyzstan are increasingly concerned at the lack of transparency in the business environment. The revocation of Oxus Gold's licence to develop the Jerooy gold mine has further damaged the credibility of Kyrgyzstan among foreign investors. Oxus mining is a UK registered company which, until November 2004, held a licence to develop Jerooy. Oxus had invested around \\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\$25 million in the mine.
INTERNATIONAL RELATIONS
Like Akayev before, Bakiev has maintained a strong relationship with Russia. In October 2003, Russia leased an airbase at Kant near Bishkek. Since the March Revolution, Russia has been courting Bakiev with promises of large investments.
Bakiev has tried to follow Akayev's policy of striking a balance between Moscow and Washington. However, relations with the US have been strained recently following protracted negotiations over the future of the American leased Ganci Air Base (now completed), expulsion of two US diplomats in August 2006, and fatal shooting in December of a Kyrgyz citizen by a US security guard.
More recently Kyrgyzstan has been making efforts to develop its relationship with China.
As a land-locked country, Kyrgyzstan has, at times, had to rely on its neighbours. Relations with Uzbekistan have been difficult, though Bakiev visited Tashkent in October 2006. Uzbekistan has often interrupted gas supplies to press for debt repayments and has used the threat of cutting gas as a political tool.
Kyrgyzstan has also had longstanding negotiations with Tajikistan concerning the demarcation of the common border. There continue to be periodic incidents on the border. On 12 May 2006, an armed gang from Tajikistan attacked a border post and the killed 5 Kyrgyz border guards.
Kyrgyzstan is a keen member of regional organisations: the Commonwealth of Independent States (CIS), the Shanghai Cooperation Organisation (SCO), and the Eurasian Economic Community (EAEC).
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