that conferred a number of privileges and advantages on foreign investors (depending on the sphere of investment). It must be acknowledged that this law did significantly contribute to attracting the interest of foreign investors. In addition, Kyrgyzstan approved a statute on free economic zones, the goal being to create (with the assistance of foreign investors) productive zones that were exempt from taxation.may also be useful to consider the experience of developed countries like the United States and the countries of Europe. For example, during periods of economic downturn, the government of the United States has established a fixed exchange rate and placed limits on the interest rate for credits.goal here is to protect investors from bankruptcy and to give them an opportunity not only to repay credits but also to earn a profit. The economic recession observed in recent years in the United States has generated active measures from the presidential administration. In particular, the government has raised the tariffs on steel, a step which provoked a stormy reaction in the countries of Europe, but which received much support from the steel producers in the United States. Moreover, at the beginning of 2002, the US government increased its subsidies for American farmers. The agricultural subsidies are one form of state investment that has been extensively employed in Europe and in the United States. Beside the tariff regulation and subsidies, the countries of the European Union and North America actively employ measures of nontariff regulation. A study conducted by experts from the IMF shows the presence of a direct correlation between the level of nontariff regulation and the level of development of an economy. The conclusion is as follows: the richer the country, the lower its average tariff rates. However, as far as nontariff barriers are concerned, the situation changes radically: the richer the country, the higher its average level of nontariff barriers and the more discriminatory their character., Which has demonstrated encouraging results in economic growth during the last three to four years, has begun to use the policy of import-substitution. It has raised import duties on a number of goods that are produced domestically by using the instruments of hard-currency regulation and by placing restrictions on the export of capital. Many observers link the economic growth of Russia and Kazakhstan above all to the increase in oil prices and assert that such a growth cannot be sustainable. However, a number of economists attribute the growth of these countries to their protectionist policy, which is aimed at creating and protecting domestic markets., There are grounds to assert that the growth in Russia and Kazakhstan results not only from the favorable conditions on the oil market but also from the state s economic policy.Bakiev s regime made some very positive steps to improve the investment climate. Taxes were lowered, a new Tax Code was enacted, and a package of legislative changes affecting the minerals sector was before parliament. The President personally chaired an Investment Council with senior representatives of government, business, and the donor community. Concrete proposals were discussed, minuted, and followed through. A declared objective of President Bakiev was to boost the Kyrgyz Republic s ranking in the World Bank «Doing Business» league table, and indeed the republic achieved a ranking of 41 ou...
