KYRGYZSTAN TODAY Policy briefs on - Department of Geography

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
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