t of 183 countries in the 2010 report. In the area of ??protecting investors, «Doing Business» ranked the Kyrgyz Republic as number one in Eastern Europe and Central Asia. (Investment Now, Journal, the Investment Climate In Kyrgyzstan: Two points of view, 2010)., Over the past five years there was an increase in FDI by a factor of almost 3 times, with a peak in the year 2008, when the volume of FDI amounted to 866.2 million US dollars. In 2009 there was a slight decline in FDI, due to the global financial crisis. However, income of $ 661 million in 2009, in a difficult time, also indicates the strengthening of investor confidence towards the Government. Currently 50 projects are being implemented within the Public Investment Program in various sectors of the economy. The main partners include Asian Development Bank, World Bank, Islamic Development Bank, European Bank of Reconstruction and Development, and the Government of Switzerland., In Transparency International s 2009 Corruption Perception Index the Kyrgyz Republic ranked near the bottom of the table, number 166 out of 180 countries.short, the formal investment climate was improving, but there were some serious shortcomings that did not seem to be receiving the attention they deserved.business in the Kyrgyz Republic is based on good relationships. Tax regimes, the legislative environment and ease of dealing with administrative procedures are all essential factors in any investment decision.
Measures on increasing investment in the KRScoreInvestors rights protection and their activity guarantee5.6Legal framework for investment4.9Stability of decisions taken by regulatory authorities4.8Legislation encouraging investment in the KR4.2Presence of transparent procedures that notify business of the changes in legislation3.9Effective public policy in promoting Kyrgyzstan to world markets3.3 to this table we can see that «Protecting the rights of investors and guarantee their work, taking into account the current political situation» was considered as the most important question. During the first days following the revolution, business experienced anarchy and a lack of safeguards to protect investments and businesses. «The legal framework for investment» and «The stability of decisions taken by regulatory authorities» were adopted as the next ones in importance. These factors were pre-determined by actions of the government on a number of business structures, in other words by introducing the mechanisms such as «external management» and «nationalization». Issues that are related to stimulating investment are lower in priority than the priority of protecting the existing ones. This is a fairly clear signal that the Government needs to address the problems of serving existing, «real», investors rather than improving conditions for the future ones, that is «virtual» investors.
2. Major sectors of the economy
Kyrgyz economy is undergoing gradual transformation to recover from the negative effects of the Russian crisis. The agricultural sector recorded growth in the first nine months of 2000 and provided a higher contribution to the GDP, maintaining a growth trend that started in this sector in the mid - 1990s. Fluctuating trade relations with neighbours such as Kazakhstan and Uzbekistan have affected the development of the leading sectors and of exports. Mining and light ind...
