BASIC INFORMATION

Full Country Name: The Kyrgyz Republic


Country Profile:

Area: 198,500 km2
Population: 5 million
Capital City: Bishkek (population: 600,000)
People: 67% Kyrgyz, 14% Uzbek, 11% Russian,1% Ukrainian, Dungan, Uighur
Languages: Kyrgyz and Russian
Religion(s): Muslim/ Russian Orthodox and other Christian minorities
Currency: Som
Major political parties: Asaba, Union of Democratic Forces, Ar-Namys, Ata-Meken
Head of State: Kurmanbek Bakiev
Prime Minister: Felix Kulov
Foreign Minister: Alibek Dzhekshenkulov
Membership of international groups/organisations: WTO, OSCE, UN, IMF, EBRD. had a Partnership and Cooperation Agreement with the EU since July 1999 and has been part of NATO's Partnership for Peace programme since June 1994.

GEOGRAPHY

is land-locked by , , and . Around 75% of the land area is mountainous, while between the snow covered mountain summits lie broad grassy highland valleys and a large salt lake, Issyk Kul, which occupies a highland basin in the north-east.

HISTORY

The modern nation of is based on a civilisation of nomadic tribes who moved across the eastern and northern sections of present-day Central Asia. Following a brief period of independence after the 1917 Bolshevik Revolution toppled the Russian empire, the territory of present-day was designated a constituent part of the Union of Soviet Socialist Republics (USSR) in 1924. It achieved the status of a full republic of the Soviet Union in 1936. became independent from the Soviet Union in 1991.

Ethnic Conflict

Relations between the Uzbeks and Kyrgyz communities are strained in the south of the country. Serious disputes between and over the two separate Uzbek enclaves, Shahimardan and Sukh, located in southern have hindered progress on the delimitation of the Uzbek-Kyrgyz border. In February 2006, fighting also broke out between Kyrgyz and Dungans (Chinese Muslims) communities in the village of Iskra near Bishkek.

POLITICS

The Tulip Revolution

The current President, Kurmanbek Bakiev, came to power in 2005 following the so-called tulip revolution. Bakiev replaced Askar Akayev, who had been in power since 1990.

Although regarded as a relative island of democracy in the 1990s, compared to more autocratic neighbours, the continuing poor economy and ever-increasing corruption had lost Akayev much of his popular support, particularly in rural areas and the south. The increasing role played by Akayev's family in politics and the economy had also lost him the backing of key national and regional elites.

The Revolution started with protests in the south over the Parliamentary election results in February 2005. In Jalalabad and Osh- protestors seized government buildings, took control of the airports to prevent the government from flying in new troops and voted to set up councils to run the regions themselves. With Osh and Jalalabad under their control, the opposition moved up to Bishkek for the next stage.

On 24 March, 15,000 pro-opposition demonstrators gathered in Bishkek and called for Akayev's resignation. Protestors seized the presidential administration building, after which Akayev fled the country for Moscow (he officially resigned the next month). Looting broke out in Bishkek on the evening of 24 March, causing an estimated $100 million in damage.

President Kurmanbek Bakiev

Bakiev was not a new figure to Kyrgyz politics. He was Prime Minister in 2000-2002 under Akayev but fell after the police dealt heavy-handedly with a demonstration in the town of Aksy early in 2002 and killed a number of people. He was thought likely to have been Akayev's main opponent in the Presidential elections which were due in 2006. Unlike Akayev he was seen to represent the south of . He led the anti-Akayev People's Movement of Kyrgyzstan (PMK). In 2005 he was one of the main leaders of the revolution and was first appointed acting President and Prime Minister until the Presidential elections of 10 July. These elections confirmed him as President with 88% of the vote.

The Prime Minister is Felix Kulov. Following independence, Kulov held a variety of influential government positions. He joined the opposition Ar-Namys (Honour) Party in 1999, was arrested on corruption charges in 2000 and received a seven year prison sentence (later extended to 10 years) the following year. He was released following the 24 March revolution. On 12 May 2006 Bakiev formed an alliance with Kulov whereby Kulov agreed to drop out of the Presidential race on condition that he became Prime Minister in the event of Bakiev winning the elections, which he did.

Many of the leaders of the revolution became members of the new government. These included the appointment of Roza Otunbayeva as Foreign Minister, Pronenko as Minister of Labour and Social Security and Beknazarov as Prosecutor General.

However, on 19 September Beknazarov was dismissed after being criticised for negligence by a government commission investigating the dispute over control of Karasuu (in the south) bazaar. On 27 September, parliament refused to approve the ministerial nominations of Pronenko and Otunbayeva forcing Bakiev to replace them both.

In November, both Beknazarov and Otunbayeva stood in parliamentary by-elections. Otunbayeva lost, but Beknazarov was elected to parliament. On 23 January 2006, Beknazarov and Otunbayeva announced the formation of a new opposition party, Asaba. Several other prominent leaders of the 'Tulip Revolution' have also now moved into the opposition to President Bakiev, among them the former speaker of Parliament, Omurbek Tekebaev.

On 19 December the Kyrgyz government resigned. Kulov explained that the reason for the resignation was that under the new November 2006 Constitution the government should be formed by the party which had won the election. Although Bakiev accepted the resignation of his government, fulfilment of this criterion would also require new elections. The opposition does not accept this interpretation and Parliament has yet to dissolve itself.

Challenges to stability

Bakiev faces significant challenges, if he is to retain power. Firstly, he needs to meet his election promises of addressing the deteriorating economy, persistent corruption at all levels of government and rising levels of crime. Secondly, he should tackle the issue of constitutional reform. Although still only a year on from the tulip revolution, there is little apparent progress. The economy remains weak and depends heavily on the black economy and remittances from Kyrgyz nationals working abroad. Corruption and the influence of organised crime appear to be increasing. remains politically unstable.

Bakiev's political future may well rest with the final outcome of the constitutional debate. In April 2006 opposition leaders and civil society formed a coalition, the For Reform movement. The For Reform movement drew up a ten point programme of demands including faster progress towards constitutional reform and action against official corruption. On 27 May, between 5,000-10,000 of their supporters took part in a peaceful demonstration in Bishkek. The demonstrators set September as a target date for the new Constitution, which was not met. In November the opposition encamped in Bishkek and demanded Bakiev's resignation. Bakiev was forced to agree to a new Constitution which trimmed Presidential powers. The new Constitution was not altogether clear in some respects and following conflict between the government and opposition, there was a further amendment in December 2006, restoring some of the Presidential powers ceded earlier.

The north-south divide remains an issue. The removal of the Governor of Jalalabad and closure of the Oxus mine in Talas, leading to increased unemployment, hurt Bakiev's popularity in these areas in the early months of 2006. However, Bakiev's support base in the south remains - Southerners are at least pleased that their man is in power and blame many of the current problems on parliament rather than Bakiev.

ECONOMY

Basic Economic Facts (for 2005)

GDP: US $2.441 billion
Annual GDP Growth: -0.6%
Inflation: 4.3%
Major Industries: Mining, hydropower, agriculture
Major trading partners: The United Arab Emirates, , , , .
Foreign Direct Investment: US $43 million
Debt: US $2.024 billion

remains one of the poorest countries of the Former Soviet Union. Despite the backing of major western donors, including the International Monetary Fund, has experienced major difficulties since independence. The Kyrgyz economy was severely affected by the collapse of the Soviet Union and the resulting loss of its vast market.

Agriculture is the largest sector of the economy accounting for 35% of GDP and more then half of all employment.

Among 's mineral reserves are substantial deposits of deep-seam coal, gold, tin, uranium and other rare-earth metals. has negligible petroleum and natural gas reserves; it imports petroleum and gas.

's GDP growth for 2005 was, at around $2.441 billion, negative (-0.6%). However, this was not surprising in view of the March revolution. GDP per capita was approximately $395-407 for 2005. Exports in 2005 were around $650 million (including $265 in gold) whilst imports were around $790 million. This represents a doubling of the 2004 trade deficit. President Bakiev has set a target of 8% GDP growth for 2006, though it's unlikely this will be met.

Foreign investors in are increasingly concerned at the lack of transparency in the business environment. The revocation of Oxus Gold's licence to develop the Jerooy gold mine has further damaged the credibility of among foreign investors. Oxus mining is a registered company which, until November 2004, held a licence to develop Jerooy. Oxus had invested around $25 million in the mine. The license was revoked under the Akaev government, but not reinstated by the Bakiev government. Oxus believe that the government has and continues to act illegally. The license has now been given to another company, Global Gold, and Oxus have gone to international arbitration.

INTERNATIONAL RELATIONS Like Akayev before, Bakiev has maintained a strong relationship with . In October 2003, leased an airbase at Kant near Bishkek. Since the March Revolution, has been courting Bakiev with promises of large investments.

Bakiev has tried to follow Akayev's policy of striking a balance between Moscow and Washington. However, relations with the have been strained recently following protracted negotiations over the future of the American leased Ganci Air Base (now completed), expulsion of two diplomats in August 2006, and fatal shooting in December of a Kyrgyz citizen by a security guard.

More recently has been making efforts to develop its relationship with .

As a land-locked country, has, at times, had to rely on its neighbours. Relations with have been difficult, though Bakiev visited Tashkent in October 2006. has often interrupted gas supplies to press for debt repayments and has used the threat of cutting gas as a political tool.

has also had longstanding negotiations with concerning the demarcation of the common border. There continue to be periodic incidents on the border. On 12 May 2006, an armed gang from attacked a border post and the killed 5 Kyrgyz border guards.

is a keen member of regional organisations: the Commonwealth of Independent States (CIS), the Shanghai Cooperation Organisation (SCO), and the Eurasian Economic Community (EAEC).