Kyrgyzstan
Background:
A Central Asian country of incredible natural beauty and proud nomadic traditions, most of Kyrgyzstan was formally annexed to Russia in 1876. The Kyrgyz staged a major revolt against the Tsarist Empire in 1916 in which almost one-sixth of the Kyrgyz population was killed. Kyrgyzstan became a Soviet republic in 1936 and achieved independence in 1991 when the USSR dissolved. Nationwide demonstrations in the spring of 2005 resulted in the ouster of President Askar AKAEV, who had run the country since 1990. Subsequent presidential elections in July 2005 were won overwhelmingly by former prime minister Kurmanbek BAKIEV. The political opposition organized demonstrations in Bishkek in April, May, and November 2006 resulting in the adoption of a new constitution that transferred some of the president's powers to parliament and the government. In December 2006, the Kyrgyzstani parliament voted to adopt new amendments, restoring some of the presidential powers lost in the November 2006 constitutional change. By late-September 2007, both previous versions of the constitution were declared illegal, and the country reverted to the AKAEV-era 2003 constitution, which was subsequently modified in a flawed referendum initiated by BAKIEV. The president then dissolved parliament, called for early elections, and gained control of the new parliament through his newly-created political party, Ak Jol, in December 2007 elections. Current concerns include: privatization of state-owned enterprises, negative trends in democracy and political freedoms, reduction of corruption, improving interethnic relations, electricity generation, rising food prices, and combating terrorism.
Geography
Area: 77,181 sq. mi.
Cities: Bishkek (capital), Osh, Cholpon Ata, Karakol.
People:
Nationality: Kyrgyzstani.
Population (July 2008): 5,356,869.
Annual growth rate (2008): 1.38%.
Ethnic groups (2007): Kyrgyz 68.9%; Russian 9.1%; Uzbek 14.4%; Dungan (ethnic Chinese Muslims) 1%; Uighurs 1%; Tajik 0.9%, Kazakh 0.8%, Tatars 0.7%; Korean 0.4%, German 0.3%.
Main religions: Islam; Russian Orthodox.
Languages: Kyrgyz (state); Russian (official, 2001).
Education: Nine years compulsory. Literacy--98.7%.
Health (2006): Infant mortality rate--29.2 deaths/1,000 live births. Life expectancy--67.7 years.
Population distribution (2006): Urban 64.7%; rural 35.3%.
Economy:
GDP (purchasing power parity):$11.66 billion (2008 est.)
GDP (official exchange rate):$5.05 billion (2008 est.)
GDP - real growth rate:6% (2008 est.)
GDP - per capita (PPP):$2,200 (2008 est.)
Inflation rate in 2007: 10.2%.
Unemployment rate (as of the end of 2006): 17.7%.
Natural resources: Abundant hydropower; significant deposits of gold and rare earth metals; locally exploitable coal, oil, and natural gas; other deposits of iron, bauxite, copper, tin, molybdenum, mercury, and antimony.
Agriculture: Products--tobacco, cotton, wheat, vegetables (potatoes, sugar beets, beans), fruits (apples, apricots, peaches, grapes), berries, sheep, goats, cattle, wool.
Industry: Types--small machinery (electric motors, transformers), light industry (cotton and wool processing, textiles, food processing), construction materials (cement, glass, slate), shoes, furniture, mining, energy.
Trade: Exports (2007)--$1.34 billion: cotton, wool, meat, tobacco, gold, mercury, uranium, hydropower, machinery, shoes. Partners--Russia 20.7%, Switzerland 19.9%, Kazakhstan 18.0%, Afghanistan 10.4%. Imports--$2.64 billion: oil and gas, machinery and equipment, foodstuffs. Partners--Russia 40.5%, China 14.7%, Kazakhstan 12.9%, Uzbekistan 5%.
Total external debt mid-2008 was $3.16 billion, of which $2.19 billion was public debt.
Kyrgyzstan is a poor, mountainous country with a predominantly agricultural economy. Cotton, tobacco, wool, and meat are the main agricultural products, although only tobacco and cotton are exported in any quantity. Industrial exports include gold, mercury, uranium, natural gas, and electricity. Following independence, Kyrgyzstan was progressive in carrying out market reforms such as an improved regulatory system and land reform. Kyrgyzstan was the first Commonwealth of Independent States (CIS) country to be accepted into the World Trade Organization. Much of the government's stock in enterprises has been sold. Drops in production had been severe after the breakup of the Soviet Union in December 1991, but by mid-1995, production began to recover and exports began to increase. The economy is heavily weighted toward gold export and a drop in output at the main Kumtor gold mine sparked a 0.5% decline in GDP in 2002 and a 0.6% decline in 2005. The government made steady strides in controlling its substantial fiscal deficit, nearly closing the gap between revenues and expenditures in 2006, before boosting expenditures more than 20% in 2007-08. The government and international financial institutions have been engaged in a comprehensive medium-term poverty reduction and economic growth strategy. In 2005, Bishkek agreed to pursue much-needed tax reform and, in 2006, became eligible for the heavily indebted poor countries (HIPC) initiative. Progress fighting corruption, further restructuring of domestic industry, and success in attracting foreign investment are keys to future growth. GDP grew more than 6% annually in 2007-08, partly due to higher gold prices internationally, but growth is likely to decline from that level in 2009, due to declining demand and lower commodity prices in the wake of the international financial crisis.
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NewsThe worldwide chain of McDonald's fast food restaurants plans to invest around US $1 bn into developing its franchises in Europe next year, the Reuters newswire reported. At the same time, they will pay greater attention to developing countries. "The potential for growth in Central and Eastern Europe is huge. We have only opened 350 restaurants in Ukraine, Poland and Romania, which have a combined population of more than 100 million and flourishing economies", says Executive Director Ralf Alvarez. There are 63 McDonald's restaurants in Ukraine in 19 cities. The total amount of investments since they began operating in Ukraine (since 1997) exceeded US $100 mn. McDonald's Ukraine has around 5,000 employees across the country. Reuters Sep 2008
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