acts as a supplier of electric power, gold, cotton fiber, articles made of wool and cotton, wood, leather materials, tobacco, antimony and mercury. It is a net importer of energy resources, oil products, natural gas, coal, fertilizers and other chemical products, machinery, vehicles and spare parts, and household appliances. Bowels of the Republic are consisted of large stocks of gold, tungsten, tin, antimony, mercury and others metals. Kyrgyzstan takes the third place in the world on manufacture of mercury and the tenth on sale of gold. Foreign business can invest the capital in development of a tourist infrastructure on unique lake «Issyk Kul», and also in creation of joint venture in agricultural sphere and techno parks.known March events of 2005, Kyrgyzstan has opened a new page in the contemporary history . New leaders of country have accepted a number of operative measures to achieve recovery of economy, emphasizing on growth of a private sector. The Government purposefully works above liquidation of any barrier interfering successful development of private business and creation of a favorable investment climate. In addition, fight against corruption and recovery of economy «s industrial sector are defined as two principle national priorities. Given Kyrgyzstan »s geographical location with access to vast market of 2,5 billion consumers in Russia, China and India, it makes Kyrgyzstan a favorable and profitable destination for investment.has also made progress in attracting foreign investment. The government has adopted a new law on foreign investments in the Kyrgyz Republic, introduced special incentives for investors, established a liberal exchange rate regime, and supported all initiatives to attract foreign investment. The guarantees that are provided to foreign investors such as national treatment, freedom of transfers and protection against nationalization meet western and international standards, although implementation could be further improved. The establishment of the Advisory Council on Investment Policy (ACIP) in 1999 has been a positive move to ensure dialogue between investors and government, and to address issues relevant to the investment climate.
1. Foreign Direct Investment
vital prerequisite of economic development is attracting direct investments. At present, neither the Kyrgyzstan government, nor domestic investors are in a position to provide the investments needed to stimulate various branches of the Kyrgyz national economy. Moreover, as the classical development of most of the world s nations shows, relying on domestic investments alone to boost the economy is a long and laborious process.of the economy, privatization of state property, deregulation of prices, openness of trade, and reduction of state intervention (in favor of a free market) - all these features became the principal manifestations of economic reforms during the transition period. In the opinion of the International Monetary Fund (IMF), Kyrgyzstan s policy in the sphere of structural transformation of its economy was the most progressive among all the countries of the region, particularly with respect to the liberalization of prices and privatization. (International Monetary Fund, Economic Review: Kyrgyzstan (1992), pp. 8, 13.) Despite the difficult position that confronted Kyrgyzstan because of the high degree of its dependence on the Soviet economy, its r...
