KYRGYZSTAN

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 = $0.0228 (or $1 = som43.85) as of May 2003. 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. 1LOCATION, 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, 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. 2TOPOGRAPHY The topography of Kyrgyzstan features the peaks of Tien 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. 3CLIMATE The country’s climate is continental to polar in the Tien 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. 4FLORA AND FAUNA The country’s flora and fauna is similar to Tajikistan, with wildflowers in the valleys and yak and snow leopards in the mountains. 5ENVIRONMENT 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. Only 66% of the nation’s rural dwellers have a publicly regulated water supply. As of 2001, 3.5% of Kyrgyzstan’s total land area is protected. In the same year, six mammal species and five species of birds were listed as threatened, as were seven plant species. Threatened animal species include the great bustard, European bison, snow leopard, field adder, and tiger. 6POPULATION The population of Kyrgyzstan in 2003 was estimated by the United Nations at 5,138,000, which placed it as number 109 in population among the 193 nations of the world. In that year approximately 6% of the population was over 65 years of age, with another 35% of the population under 15 years of age. There were 96 males for every 100 females in the country in 2003. According to the UN, the annual population growth rate for 2000–2005 is 1.40%, with the projected population for the year 2015 at 5,949,000. The population density in 2002 was 25 per sq km (65 per sq mi). It was estimated by the Population Reference Bureau that 33% of the population lived in urban areas in 2001. The capital city, Bishkek, had a population of 619,000 in that year. The second largest city was Osh, with a population of 218,300. According to the United Nations, the urban population growth rate for 2000– 2005 was 0.9%. 7MIGRATION As of 1999, the total number of refugees was estimated between 40,000 and 50,000 registered and unregistered (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 desire to stay in Kyrgyzstan permanently. The government was working with UNHCR to implement an integration package to assist Tajik refugees in their transition to Kyrgyz citizenship. Between 1989-95, 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 2000, the net migration rate was -0.5 migrants per 1,000 population, down from -12.5 in 1990. In 2000 there were 572,000 migrants, including 10,600 refugees. The government viewed the immigration level as too high, but the emigration level as satisfactory. 8ETHNIC GROUPS According to a 1999 census, about 65% of the population were Kyrgyz, about 14% were Uzbeks, 13% were Russians, 1% Kyrgyzstan 363 Dungan (ethnic Chinese Muslims), 1% Uighur, 1% Tatar, and 0.4% German. 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 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. 9LANGUAGES 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. Afterwards, 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 work places where Russian-speaking citizens predominate. 10RELIGIONS Some 80% of the population are Muslim, mostly Sunni of the Hanafi persuasion. An estimated 20% are Russian Orthodox, and 5% practice various other religions. Although it is not known how many Roman Catholics live in Kyrgyzstan, diplomatic relations with the Vatican were opened in 1992. Together, Jews, Buddhists, and Catholics make up about 3% of the population. There are about 151 registered Protestant churches in the country. 11TRANSPORTATION As of 2002, a single east-west rail line of 370 km (230 mi) went from Issyk-kul’ across the Chuskaya region into Kazakhstan. There were some 30,300 km (18,828 mi) of highways, of which 22,600 km (14,044 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 1990. However, inland travel is possible on several east-west rivers. Kyrgyzstan has 50 airports and airfields, of which 4 have paved runways, as of 2001. The principal airport is Manas, located at Bishkek. In 2001, 192,100 passengers were carried on scheduled domestic and international airline flights. 12HISTORY The area of present-day Kyrgyzstan contains evidence of human habitation from the time of the Lower Paleolithic 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 Genghiz 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. Genghiz 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 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, that 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. 364 Kyrgyzstan 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 a 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 hard-liners 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 (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 ten 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, with 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 Z E R A V S H A N R A N G E A L A Y S K I Y K H R E B E T KYRGYZSKIY KHREBET T I A N S H A N Jengish Chokusu 24,406 ft. 7439 m. Pik Lenina 23,406 ft. 7134 m. Turugart Pass K Ö K S H A L T A U Issy-Kul' (Ysyk-Köl) Ozero Song-Kël' Ozero Chatyr-Kël' Kara Aksay Naryn Shu Talas Kyzyl Chirchik Toxkan Vakhsh Ozero Karakul' ¯ Kara-Balta Jalal-Abad Tash Kömür Tokmak Przheval'sk Kara-Say Sülüktü Talas Namangan Daraut Kurgan Angren Kok Yangak Toktogul Kyzyl-Kyya Gul'cha Naryn Cholpon-Ata Issy-Kul' (Ysyk-Köl) Kadzhi Say Tyul'kubas Bishkek Alma-Ata Tashkent Osh K A Z A K H S T A N T A J I K I S T A N UZBEKISTAN C H I N A W S N E Kyrgyzstan KYRGYZSTAN 0 150 Miles 0 50 100 150 Kilometers 50 100 LOCATION: 41°30' N; 75°0' E. BOUNDARY LENGTHS: Total boundary lengths, 3,878 kilometers (2,410 miles); China, 858 kilometers
(533.2 miles); Tajikistan, 870 kilometers (541 miles); Uzbekistan, 1,099 kilometers (683 miles); Kazakhstan, 1,051 kilometers (653 miles). Kyrgyzstan 365 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 anti-terrorist operations led by the United States after 11 September, all major units of the IMU were destroyed. In January 2002, Legislative Assembly member and opposition leader Azimbek Beknazarov was detained on charges which supporters said were politically motivated and linked to his criticism of the government’s planned transfer of disputed land to China and Kazakhstan. 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 October 2002, Kyrgyzstan and China staged their first joint military exercises, aiming to coordinate their response to terrorism. 13GOVERNMENT 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” since 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-today 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 366 Kyrgyzstan 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, fifteen seats in the upper chamber were set aside for party list voting. The Central Electoral Commission ruled that sixteen parties out of 27 legally registered were disqualified from fielding party list candidates, though it urged that such candidates could instead seek singlemember 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 de-certification 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. 14POLITICAL 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. 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. The ability of this opposition coalition to provide an effective counter-weight to President Akayev and his supporters remains unproven. Feliks Kulov was sentenced to 10 years’ imprisonment in May 2002 on embezzlement charges. 15LOCAL 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, for upholding law and order, for ensuring citizens’ rights and freedoms, for obtaining funds to maintain local government and public property, for adhering to state budget strictures, for ensuring that taxes are collected, for making sure that local pensions and state wages are paid, and for 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. Kyrgyzstan 367 16JUDICIAL 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 fifteen-year terms, supreme court judges to ten-year terms, and first-term local court judges to three-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. 17ARMED FORCES Active armed forces were estimated at 10,900 personnel in 2002, with 57,000 reserves. The army had 8,500 personnel and was equipped with 233 main battle tanks. An air force of 2,400 operates 52 combat aircraft and nine attack helicopters. There is also a paramilitary force of 5,000 border guards. Kyrgyzstan provides two observers in Sierra Leone. The United States, France, Spain, and South Korea provide support to Kyrgyzstan through Operation Enduring Freedom. Defense expenditures were estimated at $19.2 million in 2001 or 1.4% of GDP. 18INTERNATIONAL COOPERATION Kyrgyzstan was admitted to the UN on 2 March 1992. The country is a member of the CIS, EBRD, ECE, ECO, ESCAP, IFC, IMF, UNCTAD, UNESCO, WTO, and the World Bank. As a member of the CIS, Kyrgyzstan has formal diplomatic relations with all the republics of the former Soviet Union. The United States and the 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. In June 2001, leaders of China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan met in China to launch the Shanghai Cooperation Organisation (SCO) and sign an agreement to fight ethnic and religious militancy while promoting trade. 19ECONOMY Kyrgyzstan is among the poorest of the post-Soviet countries. 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. 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. 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. 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. 20INCOME The US Central Intelligence Agency (CIA) reports that in 2001 Kyrgyzstan’s gross domestic product (GDP) was estimated at $13.5 billion. The per capita GDP was estimated at $2,800. The annual growth rate of GDP was estimated at 5%. The average inflation rate in 2001 was 7%. 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. It was estimated that agriculture accounted for 38% of GDP, industry 27%, and services 35%. According to the United Nations, in 2000 remittances from citizens working abroad totaled $43 million or about $1 per capita and accounted for approximately 0.2% of GDP. Worker remittances in 2001 totaled $21.62 million. Foreign aid receipts amounted to about $38 per capita and accounted for approximately 13% of the gross national income (GNI). The World Bank reports that in 2001 per capita household consumption (in constant 1995 US dollars) was $257. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings. It was estimated that for the same period private consumption grew at an annual rate of 4%. Approximately 33% of household consumption was spent on food, 11% on fuel, 3% on health care, and 22% on education. The richest 10% of the population accounted for approximately 27.2% of household consumption and the poorest 10% approximately 3.2%. It was estimated that in 2001 about 55% of the population had incomes below the poverty line. 368 Kyrgyzstan 21LABOR In 2000, the labor force included an estimated two million persons. As of that year, agriculture engaged 55%, industry 15%, and services 30%. The estimated unemployment rate in 1999 was 7.2%. 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 Soviet-era 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. 22AGRICULTURE In 1998, Kyrgyzstan’s crop-producing land amounted to 1,425,000 ha (3,521,000 acres), or 7.4% 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 38% of GDP was derived from agriculture in 2001. Since independence, about 75% of state farms have been privatized. Wheat is Kyrgyzstan’s main grain crop. Total wheat production was estimated at 1,105,000 tons in 1999. Individual farmers account for over half of production; state farms, about 40%; and the rest by private households. Production of barley in 1999 was estimated at 191,000 tons; corn, 308,000 tons; and rice, 14,000 tons. Tobacco is an important cash crop in Kyrgyzstan. The areas around Osh and Jalalabad 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 30,000 tons in 1999. 23ANIMAL HUSBANDRY About 44% of the total land area is considered permanent pastureland. Because of the rugged topography, pasture-based stock breeding is the agricultural mainstay. Livestock in 2001 included 3.2 million chickens, 3,104,000 sheep, 1,970,000 cattle, 324,600 horses, 640,000 goats, and 87,000 pigs. Yaks are also bred. Meat production in 2001 totaled 200,000 tons; cow’s milk, 1,110,000 tons; wool (greasy), 11,000 tons; and eggs, 12,700 tons. 24FISHING 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 2000 was 52 tons, including 10 tons of carp. 25FORESTRY 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 $11.6 million in 2000. 26MINING Southwestern Kyrgyzstan 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 2000, Kyrgyzstan produced 554 tons of metallic mercury, a 14% decline from 1999; all the mercury, the nation’s fifth-leading export commodity, was exported to China. Antimony produced at Kadamzhay was another important export product, because it was suitable for technical purposes requiring high-purity antimony. Uranium, from the center of the country, was processed in the Shu Valley and was a leading export commodity. The mountains also contained deposits of gold, mercury, tungsten, molybdenum, rare earth metals, indium, sulfur, tin, and arsenic. Gold, the fourth-leading export commodity, was mined in the Issyk-Kul’ region. Several major gold deposits were under development, and Kyrgyzstan’s economy has benefited greatly from gold production by the Kumtor Gold Co., which increased production in 2000 by 10%, to 21.5 tons, and increased recovery rate from ore to 81.5%. A rich deposit of tin, a regionally scarce mineral commodity, was being developed in the eastern mountains. Output figures in 2000 were: antimony, 150 tons, down from 1,200 in 1997; mercury, 257 tons, down from 550 in 1997; fluorspar concentrate, 3,000 tons, down from 4,176 in 1997; and gold, 22,000 kg, up from 1,500 in 1996. 27ENERGY 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; subbituminous 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 Tien Shan foothills east of Ysyk Kol Lake. In 2000 coal production amounted to 0.7 million tons. 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 2000, electrical production totaled 14,700 million kWh, of which 92.4% came from hydropower and 7.6% from fossil fuels. About 25% was exported (mainly to Uzbekistan). Total installed capacity in 2001 was 3.8 billion kW. Consumption of electricity in 2000 was 9.8 billion kWh. Production of oil and natural gas in small quantities comes from fields at the northeastern edge of the Fergana Valley; in 2000, Kyrgyzstan produced about 2,100 barrels per day of oil. Kyrgyz natural gas satisfies only a small percentage of domestic demand. In 2000, Kyrgyzstan’s natural gas consumption was 1.9 billion cu m (67 billion cu ft), while production was only 14 million cu m (494 million cu ft). Most natural gas is imported from Uzbekistan. A crude oil refinery was built in Dzhalal-ahad in 1997 by a Kyrgyz-Canadian joint venture. It produces heavy fuel oil, diesel fuel, and gasoline. 28INDUSTRY 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 Kyrgyzstan 369 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%, 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). 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 is also expected to involve the conversion of defense industries to civilian use under private ownership. One important conversion thus far involves 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 non-collective ownership is also being promoted. By 1999, much of the government’s stock had been sold. 29SCIENCE AND TECHNOLOGY The Kyrgyz Academy of Sciences, founded in 1954 at Bishkek, has departments of physical engineering, mathematics, mining geological sciences, chemical-technological, medicaltechnological, 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. In 1987–97, science and engineering students accounted for 14% of college and university enrollments. The city also has a botanical garden and a scientific and technical library. 30DOMESTIC 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 2002, the government continues 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 8 AM and close at about 5 PM, with lunch taken sometime between noon and 2 PM. 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. 31FOREIGN 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 countries of the former USSR still represent the major export markets, but 25% of total exports are typically sent to countries outside the former USSR. Kyrgyzstan exports metals, including gold, mercury, iron, steel and uranium (15%), hydropower (11.5%), tobacco (9.8%), cotton (4.7%), road vehicles (3.3%), and inorganic chemicals (2.8%). In 1999 Kyrgyzstan’s imports were distributed among the following categories: Consumer goods 12.4% Food 11.7% Fuels 20.1% Industrial supplies 21.8% Machinery 26.8% Transportation 7.1% Other 0.1% Principal trading partners in 1999 (in millions of US dollars) were as follows: COUNTRY EXPORTS IMPORTS BALANCE Germany 145 25 120 Uzbekistan 89 75 14 Russia 65 133 -68 China (inc. Hong Kong) 44 37 7 Switzerland 34 3 31 Kazakhstan 33 58 -25 Turkey 7 27 -20 United States 3 54 -51 Turkmenistan 3 19 -16 Canada n.a. 11 n.a. 32BALANCE 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. In 2001, the IMF awarded Kyrgyzstan $93 million in aid over a three-year period. Total external debt in 2001 stood at $1.6 billion. The US Central Intelligence Agency (CIA) reports that in 2001 the purchasing power parity of Kyrgyzstan’s exports was $475 million while imports totaled $420 million resulting in a trade surplus of $55 million. The International Monetary Fund (IMF) reports that in 2001 Kyrgyzstan had exports of goods totaling $480 million and imports totaling $441 million. The services credit totaled $81 million and debit $125 million. The following table summarizes Kyrgyzstan’s balance of payments as reported by the IMF for 2001 in millions of US dollars. Current Account -53 Balance on goods 39 Balance on services -45 Balance on income -66 Current transfers 18 Capital Account -32 Financial Account 31 Direct investment abroad -6 Direct investment in Kyrgyzstan 5 Portfolio investment assets 1 Portfolio investment liabilities … Other investment assets -4 Other investment liabilities 18 Net Errors and Omissions 21 Reserves and Related Items 32 370 Kyrgyzstan 33BANKING AND SECURITIES The central bank of Kyrgyzstan is the National Bank of the Kyrgyz Republic. 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 jointventure 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 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. 34INSURANCE No recent information is available. 35PUBLIC 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 in-flowing 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) estimates that in 1999 Kyrgyzstan’s central government took in revenues of approximately $207.4 million and had expenditures of $238.7 million. Overall, the government registered a deficit of approximately $31.3 million. External debt totaled $1.6 billion. The following table shows an itemized breakdown of government revenues and expenditures. The percentages were calculated from data reported by the International Monetary Fund. The dollar amounts (millions) are based on the CIA estimates provided above. REVENUE AND GRANTS 100.0% 207 Tax revenue 77.6% 161 Non-tax revenue 16.0% 33 Grants 6.2% 13 EXPENDITURES 100.0% 239 General public services 14.9% 36 Defense 9.7% 23 Public order and safety 6.3% 15 Education 19.5% 47 Health 11.0% 26 Social security 9.5% 23 Housing and community amenities 5.7% 14 Recreation, cultural, and religious affairs 2.9% 7 Economic affairs and services 11.4% 27 Other expenditures 1.1% 3 Interest payments 8.0% 19 36TAXATION 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. 37CUSTOMS 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. 38FOREIGN 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. Direct foreign investment 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 US, 12%; and China, 10%. In 1998, foreign direct investment totaled $102 million, up from $83 million in 1997. 39ECONOMIC 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 Kyrgyzstan 371 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. 40SOCIAL DEVELOPMENT Old age, disability and survivorship pensions are provided to all employed persons and members of cooperatives and collective farms. Contributions of 2.5% of earnings from employees, and 34% 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 work force 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. In 1993, parliament narrowly rejected a law to legalize polygamy, a Muslim custom practiced in Kyrgyzstan. Polygyny (one man having multiple wives) is more common, and a husband must financially provide each wife with her own separate household. In order for a woman to have multiple husbands (polyandry), she must have substantial wealth or influence. 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. Compared to other Central Asian states, many observers stress, Kyrgyzstan has a less objectionable human rights record. According to the State Department’s Country Reports on Human Rights Practices for 2001, however, the Kyrgyz government’s human rights record remains poor. 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. Citizens have only a limited ability to peaceably change their government. Elections and referenda have involved irregular procedures. There are independent newspapers, magazines, and radio stations, and some independent television broadcasts, though the government increasingly adopted measures to curtail the operations of independent media. 41HEALTH 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 1999, there were an estimated 3 physicians and 9.5 hospital beds per 1,000 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. As of 1999, total health care expenditure was estimated at 4.4% of GDP. The infant mortality rate in 2000 was 23 per 1,000 live births and the maternal mortality rate in 1998 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 in 1990 (per 100,000 people) were communicable diseases and maternal/perinatal causes, 124; noncommunicable diseases, 651; and injuries, 95. Between 1990 and 1994, 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, respectively, 98% and 97%. Tuberculosis incidence and mortality rates are rising steeply, reflecting economic hardship and the deterioration of the health infrastructure. In 1999, there were 130 cases of tuberculosis per 1,000 people. Controlled for 30 years, diphtheria has reemerged since the breakup of the Soviet Union. In 1994, there were 489 new cases of diphtheria. 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 during 1990–1993. In 2000, life expectancy was 67 years for both men and women. In 1999 the number of people living with HIV/AIDS and deaths from AIDS were both under 100. HIV prevalence was less than 0.01 per 100 adults. 42HOUSING 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, as of 1 January 1991, 85,000 households (or 18.6%) were on waiting lists for housing in urban areas. From 372 Kyrgyzstan 1996–2000, only about 14,800 new dwellings were built. In 2000, about 77% of the population had access to improved water sources; most residents had access to improved sanitation. 43EDUCATION The adult illiteracy rate in 1995 was estimated at 0.4% (males, 0.3%; females, 0.5%). The educational system was not developed until after the 1920s when the country came under Soviet control. In 1996, 473,077 students were enrolled in 1,885 primary schools, with 24,086 teachers. In the same year, secondary schools had 530,854 students and 42,286 teachers. The pupilteacher ratio at the primary level was 24 to 1 in 1999. In the same year, 82% of primary-school-age children were enrolled in school. In 1996, there were 49,744 students enrolled and 3,691 teaching staff employed at institutions of higher learning, including the State University of Kyrgyzstan. As of 1999, public expenditure on education was estimated at 5.4% of GDP. 44LIBRARIES 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. 45MEDIA 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 58,000 residents waiting for telephone lines as of 2000. In 1997 there were an estimated 351,000 telephones in use. Dom Radio in Bishkek broadcasts in Kyrgyz, German, Dungan, and Russian. In 1998, there were 12 AM and 14 FM radio stations. Television programming is provided through Orbita and INTELSAT. In 2000 there were 111 radios and 49 television sets in use per 1,000 population. In 2001, there were 51,600 Internet subscribers. In 2002 there were four daily newspapers. They 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 (NA). 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. The press is free to publish material without prior government approval or restraint, although some infringement of press freedoms was reported as of 1999. 46ORGANIZATIONS Important economic organizations in Kyrgyzstan include the Chamber of Commerce and Industry and the Kyrgyzstan Federation of 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. Kiwanis International has programs in the country. The Red Crescent Society is also active. 47TOURISM, TRAVEL, AND RECREATION 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. Visas are required for entry to Kyrgyzstan and are obtainable upon arrival or through Kyrgyz embassies abroad and tour companies. The principal accommodations are hotels that formerly belonged to the Soviet Intourist system. However, foreign chains are currently developing a number of projects in Central Asia. In 1999 there were 68,863 visitor arrivals in the country and tourism receipts totaled $14 million. According to 2002 US Department of State estimates, the daily cost of staying in Bishkek is approximately $183 per day. 48FAMOUS KYRGYZSTANIS Askar A. Akayev was elected president of the republic of Kyrgyzstan, in October 1990, prior to the republic declaring its independence. Chingiz Aitmatov (b.1928), winner of two Lenin Prizes for literature, is a native Kyrgyzstani. 49DEPENDENCIES Kyrgyzstan has no territories or colonies. 50BIBLIOGRAPHY 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. The History of Siberia: From Russian Conquest to Revolution. New York: Routledge, 1991. Kolsto, Pal. Russians in the Former Soviet Republics. Bloomington: Indiana University Press, 1995. Kyrgyzstan. Washington, D.C.: Central Intelligence Agency, 1996. Kyrgyzstan. Washington, D.C.: International Monetary Fund, 1992. Kyrgyzstan: The Transition to a Market Economy. Washington, D.C.: World Bank, 1993. Pisarskoi, E. G. Architecture of the Soviet Kirghizia. Moscow: Stroiizdat, 1986. Rasputin, Valentin G. Siberia, Siberia. Evanston, Ill.: Northwestern University Press, 1996.