Kyrgyzstan - Places Online

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 AKAYEV, who had run the country since 1990. Subsequent presidential elections in July 2005 were won overwhelmingly by former prime minister Kurmanbek BAKIYEV.

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 Kyrgyz 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 AKAYEV-era 2003 constitution, which was subsequently modified in a flawed referendum initiated by BAKIYEV. 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, and combating terrorism.

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 Places 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. GDP grew more than 6% in 2007, partly due to higher gold prices internationally.

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. 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.

Source: The Places Factbook, CIA.