KYRGYZSTAN TODAY Policy briefs on - Department of Geography

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establishment of a Finance Inspection Service, and introduction of the principles of monitoring dubious operations; all of these current action are not, in our view, effective at the moment. As with most government bodies, these measures aim at fighting the consequences but not the causes, which are based on close and corrupt relations between government officials and entrepreneurs. It is obvious that many proposals to overcome an extremely difficult situation in the national economy are rather contradictory. The counter-corruption system is losing its capacity. The fight against individual cases is not conducted on a complex, regular basis. The public is practically unable to fight emerging negative processes. In this situation, only a joint effort by all free of corruption management bodies under strict public control, and free access to information, can preserve the capacity of the national economy, and provide for its sustainable growth. Recommendations 1. Corruption is an inevitable component of any developing economy at the stage of reconstruction and reform. However, corruption levels could be lowered in specific ways. One evident measure in the current situation is to abandon the development or establishment of any new government structures. One required measure is administrative reform, which should be initiated primarily by the Republic’s President. However, this reform should deal not only with reorganizing or reconstructing government bodies. Moreover, liquidating multiple government bodies that are authorized not only to make inspections, but also to duplicate each other and overlap the activity of other executive bodies, would be a radical but appropriate step forward. 2. The existing executive authorities should be prohibited from making new laws, while the Prosecutor-General’s Office and the Ministry of Justice have to check whether or not new and old government regulations may provide leeway for corruption. 3. In the area of tax administration, it would be feasible to introduce a moratorium on new taxes and levies. Ministry of Finance of the Kyrgyz Republic and State Tax Inspection should closely collaborate in this area. With growing inflation and a higher cost of living, the introduction of high taxes will become an unbearable burden not only for entrepreneurs, but also for the general population. Newly-introduced taxes will not have a considerable economic effect, but will forge public instability and will discourage and intensify the growth of poverty. 4. The National Bank of Kyrgyzstan should continue its efforts to produce strict legislation in the area of money laundering, and provide correct monitoring over any commercial banks that are suspected to be involved in money laundering and legalization. Reference List 1. http://www.gazeta.kg/news/2008-09-18/8463 2. http://www.24.kg/economics/2008/10/03/94119.html 3. http://www.open.kg/ru/articles/?id=30 4. Decree “On Amending the President’s Decree “On Moratorium on Inspections by the Kyrgyz Tax Office and Reduction in Inspections of Business Entities by Other Authorized Controlling Agencies of the Kyrgyz Republic” as of April 22, 2008.” 5. http://www.24.kg/investigation/2008/09/15/92451.html 6. http://www.ipp.kg/files/Banking percent20system_rus.pdf 162
Kubanychbek Omuraliev, Independent expert Reducing Regulatory and Administrative Barriers for Private Enterprise Development in Kyrgyzstan: Key Results and Unsolved Issues In Kyrgyzstan, private enterprise has long been one of the most important areas subject to reforms that are intended to establish an effective economic system as a key component of the country’s successful development. At the beginning of Kyrgyzstan’s transition period, the following economic reforms aimed at private enterprise development were adopted: • Introducing private land ownership; • Privatization (trade and service delivery facilities, small and medium-sized enterprise); • Trade liberalization; • Rigorous credit and monetary policy; • Establishing a two-level banking system. It is worth mentioning that, in recent years, the private sector of the economy has been developing, although slower than previously. According to official data of the National Statistics Committee, the private sector accounts for about 90 percent of GDP. Private sector also dominates in agriculture and service delivery (over 90 percent of the total production and services), as well as in industry (over 20 percent ). According to research by the Heritage Foundation 1 , Kyrgyzstan’s economy is 60.1 percent free (scores of at least 60 percent indicate a “moderately free” economy), which is also conducive to the development of private enterprise (See Chart below). 1 The Heritage Foundation, 2007 163
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Social Research Center American Uni
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The Social Research Center (SRC) at
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What needs to be studied is whether
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policy, but on the politics of loya
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them set up with the sole aim of ac
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has been made. As democratization i
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For a country where the main active
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seemingly happen to form regionally
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• Support the development of self
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synonymous with civil society. Thes
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and to the fact that it is popularl
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in a politically-advanced society w
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Galina Plakhotnikova, Aida Kurbanov
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For such individuals, personal sati
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to focus on donors’ priorities, w
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Sheradil Baktygulov, Independent Ex
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By having good knowledge and unders
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In this context, the Kyrgyz state v
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6. Produce a training program for g
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among decision-makers and in genera
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200. This means that about USD 20 m
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New Middle Classes Classes are anta
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References and Sources 1. Bates R.
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There were attempts to build the pa
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Kyrgyzstan, they did not have a cle
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impossible. Even though the Moldova
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Summing up, it should be emphasized
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24. Romedi Arkvint’s Speech//Kiev
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- national programs and projects; -
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awareness of implementation of thes
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also tried to participate in develo
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and its regional programs, to devel
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development in both urban and rural
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the participants of public hearings
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Social Development as the spokesper
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Nookatbek Idrisov, Director of the
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membership fees, donations, grants)
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and (2) the Law on Charity doesn’
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6. To change numbering of items in
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its founders, members, participants
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and property at its balance-sheet v
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Kanykey Jailobaeva, PhD Candidate a
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NGOs to involve the government and
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over the implementation of its init
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His advice on the legislative basis
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presence of those major elements of
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arises; this problem is now apparen
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not a decision-maker, but rather
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Some believe and argue that Kyrgyz
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Central and Eastern European and Ba
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the vocational-education system sho
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force and its profile, since all th
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is employed in jobs that do not req
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educational institutions elaborate
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naturally expect to return to their
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Page 123 and 124: Recommendations • Improve the imm
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Page 127 and 128: Following are some examples of mode
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Page 135 and 136: women). About 50 percent of student
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Page 151 and 152: albeit very unlikely. However, many
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Page 173 and 174: Emil Nasritdinov. Discrimination of
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