Direct Investment in Kyrgyzstan
Introduction
was the first Central Asian Republic to declare independence in 1991. It is a small country, but has a strategic location bordering Kazakhstan, Uzbekistan and China, and is not far from the huge market of India. It has a predominantly agricultural economy, but has been one of the most progressive in the CIS. Kyrgyzstan has abundant energy resources, an inexpensive and well-educated labour force, and good potential for agriculture, food processing, consumer industries and tourism. (Investment Profile, Business Forum, London, 2001) has implemented the most liberal and democratic transition path in Central Asia in terms of macroeconomic stabilization and restructuring. It has a very liberal trade regime, no foreign exchange controls, and has been accepted into the WTO. As its WTO membership requires that domestic policies be consistent with international practice, legislation of the country has been substantially improved to introduce better legal standards, and an impetus has been given to the transition process towards a market-based economy. (Investment Climate in Kyrgyzstan, Country report, 2003). As a WTO member, Kyrgyzstan is also under obligation to develop domestic institutions and reduce the role of the Government in the economy. In the process of macroeconomic stabilization, a unified exchange rate system has been achieved and inflation has been reduced. Small-scale privatization has been completed, and reforms in the telecommunications and energy sectors are under way. Substantial progress in tightening fiscal policies has been achieved, including initial modernization of the tax system and a comprehensive reform of the budgetary procedures and intergovernmental relations. The monetary policy framework and instruments have been overhauled, in parallel with successful reform of the financial sector. Non-tariff barriers have been removed and export taxes have been eliminated on all goods.number of trade relations of the Kyrgyz Republic with other countries has increased in recent years. So, today Kyrgyzstan has trade relations with 109 countries of world trade community. There is the progress in cooperation with these countries in many areas particularly, in export-import operations. Trade relationships with most of these countries were created within the framework of WTO, full member of which Kyrgyz Republic became on December 20, 1998.trade regime of the Kyrgyz Republic is one of the most liberal among CIS countries. There are no private or state enterprises with exclusive rights or powers to influence the level or direction of imports and exports. Export and import licensing applies to only eight articles adopted in worldwide practice, including weaponry, explosives, drugs and virulent poisons, precious metals and works of art, etc. The volume of commodity circulation in the Republic keeps its level on about 1,6 billion US $. Kyrgyz Republic along with Kazakhstan, Tajikistan, Belarus and Russia, has a common system of payments, equal access to international economic organizations within the framework of the Eurasian Economic Union. Common borders and good trade relations with China have formed a huge potential for export.the world market, the Kyrgyz Republic ...
