Kyrgyzstan: The Transition To A Market Economy (world Bank Country Study)

'This report is based on the work of an economic mission that visited Kyrgyzstan in April 1992'--Pref. Annotation Kyrgyzstan's economic reform program faces more difficulty than those of other countries of the former Soviet Union (FSU). But a reform agenda could lead to significant progress in the medium term. This study examines the country's historic dependence on imports and economic transfers and provides a strategy to speed short-term and medium-term reforms. The strategy would coordinate monetary, fiscal, and trade policies with those of other FSU countries. It would reduce the budget deficit to limit inflation. A plan for increasing hard currency exports outlines free trade agreements that would bolster trade among the countries of the FSU. The study places priority on reforms that promote privatization and suggests which enterprises to privatize quickly. Monetary and fiscal reforms are described for boosting savings and loosening credit. Proposed spending cuts would phase out unproductive enterprises and reduce consumer subsidies while protecting critical social services. The report estimates the financial and technical assistance Kyrgyzstan will need. It suggests a cutoff level for financing so as to stay within the country's capacity for servicing debt Kyrgyzstan was historically among the poorest of the Republics of the former Soviet Union (FSU). It was one of the first of the FSU to initiate a program of structural reform to facilitate the development of a market economy. This report analyzes recent economic developments, discusses the policy priorties, assesses the medium term outlook and provides an analysis of external financing requirements. The necessary structural issues and reforms in the financial sector, private sector, labor market, and in the social sector, are thoroughly reviewed and recommendations are provided for accomplishing the reforms. The report also discusses sector specific reforms in the productive sectors - agriculture, energy, mining and metallurgy and in the infrastructure for production - telecommunications, transportation and the environment.