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Date: 08/06/2016 

Kyrgyzstan, strengths and weaknesses

There is no doubt that Kyrgyzstan, despite its small size compared to neighboring countries, and its small population, is regarded as an economy having the highest potential of growth in Asia.

It is quite difficult to say it in one word what Kyrgyzstan is. Maybe the right word for it would be 'freedom'. And, in such a free market in which the main characteristic of its inhabitants is also the love for freedom, there is no doubt about new business initiatives that will grow by themselves, bringing prosperity for all the Kyrgyz society.

After its Independence, the Kyrgyz Republic had to reinvent itself in order to cover the holes left behind by the Soviet system; and we believe it was successfully done.

However, those years had left quite a visible mark… not only in the grey color of concrete buildings, but in the people's mood and attitudes which were based on the question "What is the sense of making an effort if the result is the same at the end of a month?"

Kyrgyzstan, strengths and weaknesses

Fortunately, Kyrgyzstan with its history of nomadic people, has had sufficient level of self-esteem to revert this situation; and also fortunately the state has made a minimal intervention in the economy, allowing investment and free commerce to develop in a very comfortable fiscal environment, which, of course, is attractive for entrepreneurs. And people with their initiatives and fresh and wonderful ideas can make them real here.

Despite this advantages, the Kyrgyz companies themselves suffer from various weaknesses; and we will need to work for the sake of their improvement during the following years.

  • Insufficient level of training of the managerial staff in large companies.
  • Insufficient skills in application of costs of produce to prices of products and services.
  • Lack of technical qualification of the personnel as well as lacking internal training programs from companies.
  • The lack of practical training in technical or scientific specialties that require it.
  • Inconsistency between salaries and living standards.
  • Lack of financial resources, and high interest rates of loans.
  • Insufficient access to the market of raw materials.

The strengths or fortresses are, however, the basic pillars for Kyrgyzstan to be a strong economy in the future.

  • An adequate economic and legal framework.
  • A state which doesn't largely intervene in the activities of individual entrepreneurs.
  • Very promising sectors like textile, small hydro electric plants, mining industry, software development, or growing rural industries.
  • New local and foreign investors.
  • Continuous enhancement of education for new generations.
  • Tolerance and interculturality.
  • An advantage of its geo strategic position to serve as a bridge between other economies such as Russian, Chinese, or Indian.

Therefore, it will not be surprising that Kyrgyzstan, as the pearl of the Central Asia, will soon begin to glow in the light of a new economic era.

Categories:

Kyrgyzstan, Economy, Freedom, Growing sectors
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