DYNAMICS OF ECONOMIC REFORM IN POST-SOVIET KYRGYZSTAN

Authors

  • Lyudmila BAUM Leading expert, International Institute for Strategic Studies under the President of the Kyrgyz Republic (Bishkek, Kyrgyzstan) Author

Abstract

The post-Soviet period in Kyrgyzstan has been marked by dynamic changes. After the breakup of the U.S.S.R., the Kyrgyz Republic (KR) embarked on a parallel transition to a democratic system of governance and a market economy. In contrast to other CIS countries with sizeable energy and other natural and labor resources, larger domestic markets and close proximity to transportation arteries, the Kyrgyz Republic lacked such resources and conditions. In this context, its choice of a development option based on the model of a small but “open” economy and highly intensive reforms is quite understandable. The republic was obliged to implement a mixed (convergent) economic system whose basic principles are free enterprise, free market pricing and free competition.

These radical economic transformations were launched and carried out in the conditions of an unprecedented economic crisis. The breakup of the Soviet Union meant a disruption of cooperation ties between economic agents, so that the activities of many enterprises were fully or partially paralyzed. The loss of habitual markets and changes in the structure of domestic demand led to a significant reduction in the gross domestic product (GDP), which fell by over 25%.

In order to overcome the systemic crisis, the republic’s authorities took resolute steps to lay the groundwork for a market economy, which made it possible to create a private sector, set up a basic market infrastructure and liberalize all the key prices (in 1992). Being the first CIS country to introduce a national currency (in 1993), the republic managed to stop hyperinflation and, as a result, to resume economic growth (from 1996). 

 

 

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Published

2007-04-30

Issue

Vol. 8 No. 2 (2007): 2 (44) 2007

Section

FIFTEEN YEARS OF INDEPENDENCE: THE CENTRAL ASIAN AND CAUCASIAN COUNTRIES SUM UP THE POLITICAL AND ECONOMIC RESULTS OF THIS PERIOD

License

Copyright (c) 2007 Author

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How to Cite

BAUM, L. (2007). DYNAMICS OF ECONOMIC REFORM IN POST-SOVIET KYRGYZSTAN. CENTRAL ASIA AND THE CAUCASUS, 8(2), 96-105. https://ca-c.org/CAC/index.php/cac/article/view/1066

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