|
Books on Kyrgyzstan
REPUBLICAN REFERENCE
Area (sq.km)
198,500
Population
5,081,429
Principal
ethnic groups
Kyrgyz 52.4%
Russians 21.5%
Uzbeks 12.9%
Capital
Bishkek
Currency
Kyrgyz Som
President
Askar Akayev
|
Update No: 296 - (26/08/05)
Kyrgyz on the spot
The Kyrgyz are in a quandary. They achieved a bloodless revolution earlier this
year that has put them on the world map. Everyone is courting them, since their
joyous 'new spring.'
US NGOs, such as the Soros Foundation, played an important role in the victory,
as did the US embassy. Kyrgyzstan already plays host to a US air base, with
3,000 personnel, at Manas east of Bishkek. This is ostensibly for the purpose of
overflights in Afghan air space and related intelligence gathering. But nobody
doubts that it is also being used to monitor developments in China, especially
the ultra-secret northern territories. Its location could not be more useful for
the CIA.
Kyrgyzstan is a member of the Shanhai Cooperation Organisation, along with
Russia, China, Kazakstan, Uzbekistan and Tajikistan. This was shaken by events
in May when rebels in the eastern Ferghana Valley, inspired by the Kyrgyz
revolution, rose against the vile Uzbek regime and were brutally suppressed,
with untold loss of life. Many fled to Kyrgyzstan.
Uzbekistan has just given the US six months to leave its military base on the
Uzbek-Afghan border at Karsi-Khanabad in the wake of its assistance to the Uzbek
refugees in Kyrgyzstan, flying many of them to Romania and freedom after
Tashkent demanded their return. There is nothing better that the Uzbek regime
would like than for Bishkek to give the Americans their marching orders too.
Ditto Beijing and Moscow.
However, Donald Rumsfeld sensed the danger and came to town, promising an
increase in aid, already $50m per year and no doubt any number of other goodies
on the quiet too. The Americans have the clout The Uzbek regime certainly
doesn't, while the Chinese are reluctant to be drawn into a fight with the US
for the soul of a nation that has just emhatically affirmed its new-found
Western orientation.
After meeting with Defence Secretary Donald Rumsfeld, the Kyrgyz defence
minister, Lieutenant General Ismail Isakov, said at a news conference with
Rumsfeld in Bishkek that the US military could keep using Manas Air Base,
outside Bishkek, for cargo and refuelling missions as long as the security
situation in Afghanistan remained unstable.
"Once there is stabilisation, there will be no need," Isakov said.
"But now I agree with Mr Secretary, who mentioned that the situation in
Afghanistan is far from stable."
Isakov later added: "The air base in Manas will stay as long as the
situation in Afghanistan requires."
As he prepared to board his plane at Manas, the airfield from which 1,000
American troops operate, Rumsfeld told some of the air force personnel, "I
wouldn't pack your bags." He added, "I have every reason to believe
the relationship will continue in an orderly way."
Rumsfeld may be being too sanguine here. His visit took place at the end of
July. In early August a different response came from a high quarter in Bishkek.
Kyrgyzstan may follow Uzbekistan's example and ask the United States to set a
deadline for a withdrawal of its air force base, Valentin Bogatyryov, director
of the Kyrgyz international institute of strategic studies under presidential
auspices, told Interfax on August 5th.
"It may happen this autumn after the parliamentary elections in
Afghanistan," Bogatyryov said. "As political life in Afghanistan is
brought back to normal, it means that legitimate bodies of power, among them the
president and parliament, should be established there," he added.
"As we know, this process will be finalised this autumn, when parliamentary
elections are due to be held in that country. Thus, I can say that after the
elections it will be necessary to raise the issue of completing the mission of
the anti-terrorist coalition's military bases," the director said.
"As the US itself claims, the military operation in Afghanistan was
finalised long ago. Only operations in individual regions are taking place there
today. That is why the presence of the Manas base outside Bishkek is no longer
justified," the expert said.
"Hotbeds of tension will certainly remain in Afghanistan. But in this case,
the United States will either have to admit that the operation in that format
failed, or, which is more acceptable, transfer normalisation efforts to the
territory of that country. There are enough airfields in Afghanistan
itself."
Of course Afghanistan is likely to remain unsettled even after its parliamentary
elections, as it did after its presidential ones. The US will not be remiss in
pointing this out to Bishkek.
Ties with Russia matter too - perhaps the most!
Kyrgyzstan is keen to keep its relations with the Russians close as well.
Developing close ties to Moscow and the Russian regions are perhaps the most
important priority for them. The main, still unanswered question about this
country remains, as to whether President Kurmanbek Bakiyev will just turn out to
be Moscow's man.
The prerequisites to strengthen cooperation between Ekaterinburg and Kyrgyzstan
are present, Acting Consul General of Kyrgyzstan to Ekaterinburg Chyngyz
Kubanychbekov announced recently, cited by Interfax.
Ekaterinburg is the administrative centre of Sverlovsk region, located 1,667km
east of Moscow on the border between Europe and Asia. He noted that the policy
of newly elected president of Kyrgyzstan Kurmanbek Bakiyev aimed to develop
cooperation between the towns and regions of Kyrgyzstan and Russia. One of the
key directions in this policy is Ekaterinburg. The republic's companies
interested in Ekaterinburg and enterprises of Ekaterinburg interested in
Kyrgyzstan, said Kubanychbekov. He stressed in particular, on development of
trade-economic relations in the chemical industry, machine-building and
agriculture.
Economy stumbles
The economy is faring none too well, not being helped by the disruption
revolution invariably brings in its wake. GDP grew by 0.9% on an annual basis in
the January-July period of this year. Ominously, industrial production fell by
10% in the same period.
The most worrying thing of all is that gold production, the main export sector,
fell by 22.3% in this period. Kyrgyzstan reduced gold production by 22.3%
year-on-year to 9.21 tonnes in the first half of the year, Vladimir Zubkov, head
of the state Geology and Mineral Resources Agency, told Interfax recently.
Production at the Kumtor gold field, which is developed by Canada's Centerra
Gold, fell to 8.689 tonnes from 11.065 tonnes. The Kumtor gold company reported
output in value down 11.6% to 4.886bn som from 6.024bn som a year previously.
Kumtor Gold company and the state-owned Kyrgyzaltyn are Kyrgyzstan's biggest
gold producers.
Kyrgyz revolution: taking a turn in an unpredictable direction
As it so happens, Kyrgyzstan's revolution is veering off in an unpredictable
direction, that is becoming very obvious. Persistent infighting and
controversial political appointments are raising doubts about the provisional
government's ability to promote civil society. Already, several alarming trends
are evident that, if left unaddressed by the provisional government, could
create new sources of dispute and frustration among Kyrgyz citizens.
All branches of Kyrgyzstan's provisional government remain bogged down in
political matters connected with President Askar Akayev's abrupt and messy
downfall on March 24th. Some local political analysts say the governmental
paralysis is largely connected with a "wild scramble for power" among
members of the new political elite. In the weeks and months leading up to
Kyrgyzstan's parliamentary election in February, which proved to be the
revolution's detonator, top members of the erstwhile opposition to Akayev set
aside personal ambitions and rivalries to forge a united front against the
president. Now that Akayev has departed from the scene, the glue keeping the
provisional government together seems to be rapidly decaying, with the briefly
suppressed internal rivalries quickly reasserting themselves.
The executive branch, headed by the provisional government's leader, Kurmanbek
Bakiyev, has come under broad attack for its personnel policy. According to
critics, Bakiyev and others in the leadership are trying to pack the top levels
of Kyrgyzstan's bureaucracy with friends and family members, essentially
repeating a pattern followed by Akayev.
«
Top
ENERGY
Uzbek, Kyrgyz firms discuss gas supplies to Kyrgyzstan
The head of Kyrgyzgaz (Kyrgyz Gas) joint-stock company visited Tashkent to
discuss on supply of Uzbek gas to Kyrgyzstan, KyrgyzInfo news agency reported
recently, citing the press services of Kyrgyzgaz.
The company's Director, Igor Chudinov, had talks with his Uzbek colleagues, the
report said. It added that Chudinov would discuss with the management of
Uztransgaz (Uzbek Gas Transportation) a draft of a general agreement on Uzbek
gas supplies to Kyrgyzstan in 2005/06. The report said since 2003 Kyrgyzstan has
been using Uzbek gas transported to Kazakstan from a terminal located in
Kyrgyzstan. A US$33m debt to Kazakstan has accumulated over the period.
Kyrgyzgaz reported that Bishkek had paid off US$17.42m of this debt.
«
Top
FOREIGN LOANS
China to grant Kyrgyzstan 50 mln yuans
After the session of the Shanghai Cooperation Organisation heads of states,
Acting Kyrgyz President, Kurmanbek Bakiyev, met with Chinese President, Hu
Juntao, and agreed that Kyrgyzstan will receive a free grant of 50 million yuans
(six million Euro) from China, Interfax News Agency reported recently.
Juntao said China respects the new government's course, and as a sign of
support, will give 50 million yuan in grant money to help the country, a source
in Bakiyev's press service told Interfax.
Juntao and Bakiyev expressed satisfaction over the development of their
countries' bilateral relations. China will also send "its observers to the
presidential elections," in Kyrgyzstan, the report said. The Chinese
government will also give Shanghai Cooperation Organisation states a soft export
credit of 900 million Euro.
Kazkommertsbank Kyrgyzstan gets EBRD loan
Kazkommertsbank Kyrgyzstan (KKB-K) received a 5m Euro loan which marked the
launch of a new international programme that provided financial aid in the
Central Asian republic. This programme also stressed expanding into economically
depressed regions and to agricultural regions, New Europe reported.
European Bank for Reconstruction and Development (EBRD) provided 2.25m Euro
while the rest of the aid was provided by the International Finance Corporation
(IFC) and the International Cooperation and Development Fund of Taipei China
(Taiwan ICDF) through the Financial Intermediary Investment Special Fund.
KKB-K, a privately owned Kyrgyz subsidiary of Kazakstan's Kazkommertsbank, will
use the funding to facilitate the development of micro and small enterprises (MSEs)
by making formal finance available to them either in local currency or Euro.
This loan is the first to be made under a new 30m Euro Kyrgyz micro and small
enterprise financing facility, known as KMSEFF II, of which 20m Euro is provided
by the EBRD as part of its Early Transition Countries (ETC) Initiative which
aims to provide increasing support to smaller private sector projects in the
Bank's seven lowest-income countries of operations. It builds on the success of
an earlier micro- and small enterprise facility of 12.6m Euro which was set up
in April 2002 and is now fully committed. KMSEF II is supported by co-financing
from Taiwan ICDF, IFC and Switzerland's State Secretariat for Economic Affairs (SECO).
It also has technical cooperation funding from the recently established
multi-donor ETC Fund, the EU and the US Agency for International Development (USAID).
KMSEFF II is bigger in cash terms than its predecessor and intends to expand the
number of participating banks with credit lines from two to a targeted five. MSE
lending has proved a vibrant sector of the Kyrgyz economy.
The Kyrgyz participating banks have opened 40 MSE lending departments in 12
cities and trained 217 loans officers to assess and administer loan requests.
«
Top
INDUSTRIAL OUTPUT
Kyrgyzstan posts 10% drop in H1 industrial output
Industrial output in Kyrgyzstan was down 9.8 per cent year-on-year in the first
half of 2005 to 23.94bn soms (US$584.4m), Interfax News Agency reported
recently, citing figures released by the national statistics committee. Output
in the mining industry fell 32.7 per cent to 384.9m soms.
Kyrgyzstan produced 13.7 per cent less coal, 3 per cent less oil, 2.3 per cent
less natural gas, 21.7 per cent less sand and gravel, and 7.1 per cent less
salt, including sodium chloride. Output in the manufacturing industry amounted
to 18.36bn soms, down 12.3 per cent. There was a 20.7 per cent reduction in
metal and finished metal product production, while output of machinery and
equipment grew 29.1 per cent.
Kyrgyzstan produced 290.8m soms worth of oil products and nuclear materials, a
31.4 per cent drop. Production was down 24.3 per cent for motor fuel and 5.9 per
cent for fuel oil. There was a 65.9 per cent slump in the processing of
radioactive materials. Diesel fuel production increased 24.9 per cent.
The country produced 240.4m soms worth of chemicals, down 8.4 per cent.
Production and distribution of electricity, gas and water grew 2 per cent to
5.19bn soms. There was a 1.4 per cent increase in electricity output and 2.8 per
cent for thermal energy. Distribution was up 5.2 per cent for electricity and
4.7 per cent for thermal energy. Water purifying services were reduced 9.4 per
cent and distribution fell 22.5 per cent. Meanwhile, Kyrgyzstan's GDP grew 0.9
per cent year-on-year in January-July to 47.843bn soms, the country's national
statistics committee told Interfax. GDP grew 2.7 per cent to 44.507bn soms,
minus the contribution made by the Kumtor gold mine, which is one of the
country's key enterprises. The committee said Kyrgyzstan had inflation of 2.5
per cent in the seven months. Kyrgyzstan had a trade deficit of 166.3m Euro in
the first half of the year. Imports were 488.5m Euro and exports 322.2m Euro
including gold mined at Kumtor. Exports minus the Kumtor gold were 202m Euro.
«
Top
MINING
Kyrgyzstan reduces gold production by 22.3% in H1
Kyrgyzstan reduced gold production by 22.3 per cent year-on-year to 9.21
tonnes in the first half of the year, Vladimir Zubkov, head of the state Geology
and Mineral Resources Agency, said, Interfax News Agency reported recently.
Production at the Kumtor gold field, which is developed by Canada's Centerra
Gold, fell to 8.689 tonnes from 11.065 tonnes. The Kumtor gold company reported
output in value down 11.6 per cent to 4.886bn som from 6.024bn som a year
previously. Kumtor Gold company and the state-owned Kyrgyzaltyn are Kyrgyzstan's
biggest gold producers.
« Top
|
