02kyrgyz Kyrgyzstan Opposition Leader Freed March 19, 2002 Kyrgyzstan Opposition Leader Freed By THE ASSOCIATED PRESS Filed at 4:04 p.m. ET BISHKEK, Kyrgyzstan (AP) -- An opposition lawmaker whose jailing touched off Kyrgyzstan's bloodiest street protests in a decade was freed Tuesday pending a court ruling, hours after a late-night clash that raised the death toll in two days of violence to five. Prosecutors released Azimbek Beknazarov but barred him from leaving the country. The Interior Ministry said he went to Kerben, the southern town where Monday night's violence erupted, and urged thousands of supporters camped out there to avoid further unrest. Beknazarov was arrested in January on charges of abuse of power for failing to open a criminal case into a killing when he was a prosecutor. His supporters say he was arrested because he has criticized President Askar Akayev's government. Akayev, hailed by Western governments in the early 1990s as a reformer in a region of authoritarian rulers, has cracked down on dissent in recent years. U.S. troops are deployed in the former Soviet republic to support the anti-terrorism campaign in nearby Afghanistan. On Sunday, at least four protesters were killed in fighting between police and demonstrators who gathered in Karadzigach, a village near Kerben in the impoverished Jalalabad region, to demand Beknazarov's release. Fifteen protesters were hospitalized and 47 police were injured, the Central Asian nation's prosecutor general said Monday. It was the first time that an opposition protest turned violent in 10 years of independence for Kyrgyzstan. One more protester was killed late Monday when a crowd of about 5,000 tried to storm the regional police headquarters in Kerben, Interior Minister Temirbek Akmataliyev said. Thirteen policemen and six demonstrators were injured, he said. Police and protesters blamed each other for both outbreaks of violence. In Kerben, the crowd threw stones at police and set two police officers' homes on fire, Akmataliyev said. Emil Aliyev of the opposition party Ar-Namys said protesters broke windows and set fires only after the shooting was over and police had left. Before Beknazarov arrived in Kerben following his release, Prime Minister Kurmanbek Bakiyev spoke to the demonstrators there and urged them to disperse peacefully. Bakiyev later said on state television that the government had fulfilled the protesters' main demands by releasing Beknazarov and dismissing an unpopular regional official. He also promised to fulfill their demands for the improvement of electricity supplies to the region and changes in the nation's land laws. Beknazarov's arrest has stirred up the longtime rivalry between southern Kyrgyzstan, where he made his political career, and the north, where most members of the government come from. Poverty is rife in the south, which is part of the ethnically mixed and densely populated Fergana Valley -- a source of social and political tension for all of Central Asia and site of deadly riots in the late 1980s. Copyright 2002 The Associated Press | Privacy Information Economist.com Central Asia The dead dog warning May 30th 2002 | ALMATY From The Economist print edition Perils of the opposition WHEN Respublika, an independent-minded newspaper, criticised the Kazakhstan authorities, the editor received a funeral wreath with her name on it. Then the body of a beheaded dog was hung on a window at the newspaper's premises, with a warning note attached to it. Last week the premises were destroyed by fire. While Respublika's voice may have been interrupted, the attackers have also caused what could be long-term damage to Kazakhstan's reputation as a stable country and a developing democracy. The business weekly is close to Democratic Choice, an opposition movement, and has been highly critical of the arrest of one of its leaders, Galymzhan Zhakiyanov, who has been accused of corruption when he was a regional official. Such charges are fairly common in Central Asia, a convenient way for authoritarian presidents to dispose of their political opponents. But suppressing dissent can also be dangerous, as the government of neighbouring Kirgizstan has found. In January, a then little-known member of the Kirgiz parliament, Azimbek Beknazarov, was accused of abusing his power in a previous post. Two months later, five people were shot dead by police while demonstrating against his trial. Mr Beknazarov was subsequently released, but the protests continued. A state commission found that senior officials were to blame for the five deaths. The prime minister, Kurmanbek Bakiyev, and his cabinet resigned on May 22nd. In response, President Askar Akaev sought “co-operation” with opposition politicians. Kirgizstan is a much smaller and poorer country than Kazakhstan, but there are political similarities between the two. Their presidents have been in power since the Soviet period. After independence in 1991, Mr Akayev and Nursultan Nazarbaev of Kazakhstan initially put their countries on the path of democracy. But as the years went on, they moved to authoritarian rule, stifled the media, installed members of their families in key positions, and became increasingly allergic to opposition. Still the opposition refuses to go away. In oil-rich Kazakhstan it is mostly driven by business groups who want a piece of the pie. In Kirgizstan opposition groups see themselves as the voice of the ordinary people. Either way, the opposition is a force the government finds it dangerous to ignore. Copyright © 2002 The Economist Newspaper and The Economist Group. All rights reserved. Economist.com A new force in Central Asia Americans in a strange land May 2nd 2002 | BISHKEK From The Economist print edition 2 Will intervention foster democracy? Reuters SIX months ago, Manas airport, near Bishkek, the capital of Kirgizstan, was as sleepy and dilapidated as the country itself. Now it buzzes with activity as soldiers, pilots and engineers from the United States and seven other countries erect tents, tinker with aircraft engines and equip bombers with their lethal payloads. Whether the Kirgiz realise it or not, a piece of military history is being made by the multi-national force of 1,900 (and rising) which has encamped at Manas airport and renamed their bit of it after Peter Ganci, the New York fire chief who died in last September's terrorist attack. The tent city at Manas is engaged in a combat operation at present directed against the caves of Afghanistan, nearly 1,000km (620 miles) away. A dozen bombers, six American and six French, support the war against remnants of the Taliban regime and the al-Qaeda network. There are tanker aircraft supplied by Australia and France, and transporters from Spain, the Netherlands, Denmark and Norway. South Korea has sent a medical team. Despite the tents, the base has a far from makeshift look. It is under American commanders who seem to be quickly mastering the tricky art of integrating forces from a number of nations. Their boss, Donald Rumsfeld, the American defence secretary, flew in to give the troops a pep talk (picture above). The place where he spoke was given a homely touch with an enormous Stars and Stripes. But marshalling its forces is just one of the challenges facing the American-led coalition as it hunkers down in Central Asia. The Americans, and to a lesser extent their western allies, are being drawn deep into the internal politics of a region with huge potential to change for better or worse. However diplomatic the westerners try to be, the arrival of their armies is transforming the scene. Kirgizstan illustrates this in microcosm. The expenditure so far at Manas, just by the Americans, on items such as fuel, gravel, food and makeshift beds, is conservatively estimated at $16m: a tidy sum in a country of 4.9m where many people live in poverty. As Kirgizstan's president, Askar Akaev (once optimistically hailed as Central Asia's Thomas Jefferson because of his democratic words), becomes increasingly despotic, local people grumble that the Americans have boosted his power by buying fuel from businesses close to the seat of power. Americans retort that they have tried to spread their custom widely, while realising that, wherever they shop, they are bound to make enemies. Central Asia's growing strategic importance for America and its friends is also affecting the region's atmosphere in more subtle ways. At least in the short term, all the region's leaders feel their bargaining power with the West has palpably risen since the start of the war in Afghanistan. Human-rights campaigners and opposition politicians fear that they will be sidelined by the United States as it seeks to favour the local strongmen. In fact, the American State Department does speak up when it feels that human rights and democratic procedures are being ignored. In Kirgizstan the American embassy gave at least moral support to an opposition activist who died on hunger strike in February. It protested over the detention in January of an opposition figure, Azimbek Beknazarov. The State Department has been pressing President Akaev to set up a fair inquiry into the killing by police of at least six unarmed demonstrators in March. Neighbouring Uzbekistan is the other Central Asian state that has provided a base, at Khanabad, for western forces fighting in Afghanistan. It is the most populous state in the region, with the toughest army. The fact that the Uzbeks 3 have enough security forces to police borders and suppress Islamist extremists makes them attractive partners for western forces. Or so say some American policymakers in Washington. They argue that America should back and harness the Uzbeks' regional ambitions. But for those who care about human rights, Uzbekistan is a nightmare; there are thousands of political prisoners. Then there is Kazakhstan, a vast, energy-rich country where democracy is by no means a lost cause, but which has suffered some serious setbacks recently. The Kazakh opposition, like the opposition in Kirgizstan, is convinced that the high-handed behaviour of the rulers of Central Asia is a side-effect of the region's growing geopolitical importance. With no mean skill, the Kazakh president, Nursultan Nazarbaev, has used the Afghan war to play off the various bidders for influence in his country. America has obtained permission for its military aircraft to fly over Kazakhstan and to use Kazakh airfields for stopovers. Mr Nazarbaev's views will no doubt have been noted in connection with an American plan, disclosed this week, to maintain a long-term “footprint” in Central Asia. The Americans may be thinking of storing weapons in the region and of having access to airfields. Donald Rumsfeld called on Mr Nazarbaev last weekend during his tour of the region. The defence secretary's trip has not been popular everywhere. A few days before Mr Rumsfeld's visit, Iran's President Muhammad Khatami had grumbled to Mr Nazarbaev that “the presence of any foreign power in any region causes concern”. But Mr Rumsfeld has a thick skin; and anyway he would have been given a kindly welcome by Mr Nazarbaev. Russia, meanwhile, has offered a reminder that Kazakhstan, like the rest of Central Asia, used to be part of the Soviet empire. It has offered to train thousands of Kazakh army officers, and to sell arms at concessionary prices. Joint war games between Russia, Kazakhstan, Kirgizstan and Tajikistan (the members, along with Belarus and Armenia, of a collective-security pact) are becoming more frequent; Kazakhstan's vast firing ranges offer a perfect setting for mock warfare. Reuters Under two flags Much of the “collective security” was designed to defend the region against the Taliban and its Islamic allies. Mr Nazarbaev saw the Taliban-linked Islamists in Uzbekistan as a “direct and substantial threat” to Kazakhstan if the zealots had not been kicked out of Kabul, according to Marat Tazhin, the president's head of national security. Along with the Central Asian states, Russia, China and even Iran will agree that the defeat of the Taliban, the regional bogeyman, has taken a bit of heat out of the region's competition, the revived “great game”—a 19th-century term much used (and overused) in recent times. Nonetheless, Mr Tazhin and other Kazakh officials are at pains to stress that the threat from Afghanistan's former rulers (and related scourges, such as the huge stocks of heroin they accumulated) has yet to be vanquished. The security chief believes that several thousand Taliban fighters may have escaped the latest battles; and argues that the new Afghan government, however worthy, may be too weak to stop the export of heroin, which mostly reaches Europe via Central Asia. Even before the conflict in Afghanistan enhanced its importance, Kazakhstan was a force in regional politics. Last year, its GDP growth was nearly 13.2%. It has attracted well over $12 billion in foreign investment, nearly half from American oil companies. While there have been rumblings of economic nationalism from Kazakh politicians, the country is still committed to building a market economy. The American Commerce Department said recently that the country is doing some of the right things to build one. 4 As Kazakhstan's energy bonanza becomes more apparent, so too does the intensity of its internal infighting But as Kazakhstan's energy bonanza becomes more apparent, so too does the intensity of its internal infighting—to the embarrassment of the country's western friends. President Nazarbaev has dealt ruthlessly with signs of dissent within the economic and political elite that formed a close-knit team during the early years of Kazakh independence. In March, Mukhtar Ablyazov, a former energy minister and businessman with substantial media interests, was jailed on vaguely formulated corruption charges. Another opposition figure, Galymzhan Zhakiyanov, took refuge in the French embassy after being accused of similar offences. He left the embassy after western ambassadors won an assurance that he would be kept under house arrest in Almaty. But the authorities broke their promise and moved him to the more remote Pavlodar—a move that drew diplomatic protests from several western countries. Nurbulat Masanov, an opponent of the regime, says the relatively mild western reaction to these events convinced the authorities that they could continue to squelch the opposition. Both the jailed politicians were prominent members of Democratic Choice for Kazakhstan. Another source of democratic ideas is Akezhan Kazhegeldin, an exiled former prime minister. His web-sites are eagerly read by Kazakhs around the world but are jammed in his homeland. Kasymzhomart Tokaev, the foreign minister, insists that the recent detentions are not harbingers of a one-party state: the government fully recognises the opposition's right to exist, and outsiders should not be over-hasty to interfere in judicial proceedings. But the arrests, and the closure of several media outlets, have led to what a western diplomat calls a “narrowing of the political space” at a time when it should be broadening. A former Kazakh minister, now a dissident, believes that westerners are naive about Central Asia. The West doesn't understand our leaders. They are old communists who talk about democracy when they are abroad but use a different language at home. At least one of Mr Nazarbaev's aides has said publicly that the president will not be able to cope with an increasingly broad-based opposition by means of repression alone; some compromise will be needed if the country is to remain united and stable. Other observers, including some westerners, believe the president's crackdown may succeed, at least in the short term. They point to the absence of mass protest. The country, they point out, does not have the desperate poverty that has fuelled dissent in Kirgizstan. Yerlan Karin, a rising star among Kazakhstan's geopolitical pundits, believes that as well as giving the region's governments a short-term boost, the war in Afghanistan has sharpened all Central Asia's pre-existing problems, from the burgeoning drug trade, to tension with China over agitation by nationalist Uighurs, based in Kazakhstan and active in nearby Xinjiang. He predicts that traditional tensions between Uzbeks and Kazakhs could resurface, as could competition for the water resources of Kirgizstan and Tajikistan. Assuming he is even half-right, the Americans and their allies will be asking what sort of polity will be best placed to cope with these problems? A brittle, authoritarian state like Uzbekistan or a semi-democracy, as once seemed likely for Kirgizstan? As American pilots return to their new Central Asian bases after unloading their bombs on the Afghan mountainside, that is a problem that faces their political masters back home. Copyright © 2002 The Economist Newspaper and The Economist Group. All rights reserved. 5 Economist.com Central Asia The dead dog warning May 30th 2002 | ALMATY From The Economist print edition Perils of the opposition WHEN Respublika, an independent-minded newspaper, criticised the Kazakhstan authorities, the editor received a funeral wreath with her name on it. Then the body of a beheaded dog was hung on a window at the newspaper's premises, with a warning note attached to it. Last week the premises were destroyed by fire. While Respublika's voice may have been interrupted, the attackers have also caused what could be long-term damage to Kazakhstan's reputation as a stable country and a developing democracy. The business weekly is close to Democratic Choice, an opposition movement, and has been highly critical of the arrest of one of its leaders, Galymzhan Zhakiyanov, who has been accused of corruption when he was a regional official. Such charges are fairly common in Central Asia, a convenient way for authoritarian presidents to dispose of their political opponents. But suppressing dissent can also be dangerous, as the government of neighbouring Kirgizstan has found. In January, a then little-known member of the Kirgiz parliament, Azimbek Beknazarov, was accused of abusing his power in a previous post. Two months later, five people were shot dead by police while demonstrating against his trial. Mr Beknazarov was subsequently released, but the protests continued. A state commission found that senior officials were to blame for the five deaths. The prime minister, Kurmanbek Bakiyev, and his cabinet resigned on May 22nd. In response, President Askar Akaev sought “co-operation” with opposition politicians. Kirgizstan is a much smaller and poorer country than Kazakhstan, but there are political similarities between the two. Their presidents have been in power since the Soviet period. After independence in 1991, Mr Akayev and Nursultan Nazarbaev of Kazakhstan initially put their countries on the path of democracy. But as the years went on, they moved to authoritarian rule, stifled the media, installed members of their families in key positions, and became increasingly allergic to opposition. Still the opposition refuses to go away. In oil-rich Kazakhstan it is mostly driven by business groups who want a piece of the pie. In Kirgizstan opposition groups see themselves as the voice of the ordinary people. Either way, the opposition is a force the government finds it dangerous to ignore. Copyright © 2002 The Economist Newspaper and The Economist Group. All rights reserved. 6 IMF Insists Upon Raising Taxes in Kyrgyzstan Kyrgyzstan, November 14, 2002 [ 20:03 ] By Vlada Elnina, TCA contributor, TCA BISHKEK (TCA). The Kyrgyz parliament has insisted upon increasing the budget revenues, while the IMF experts have insisted upon raising taxes in Kyrgyzstan. During their visit to Kyrgyzstan, the IMF mission headed by John Odling-Smee, director of the European II Department, met with the Kyrgyz parliament members to discuss an important problem - the parliament has increased the budget revenues in the draft 2003 budget. According to IMF's Tapio Saavalainen, this concerns the IMF experts because the budget revenue forecast has become too optimistic. The draft 2003 budget overestimates tax collection by 300-400 million soms, Marat Sultanov, chairman of the parliament's Budget Committee, told a news conference. The government plans to get another 700 million soms in dividends from its stakes in industrial companies. However, this is rather unrealistic, since in the previous years dividends did not even reach 100 million soms. Abdygany Erkebayev, Speaker of the parliament's Legislative Assembly, admitted that the Kyrgyz MPs and the IMF have mutual understanding but not in all aspects. He emphasized that today Kyrgyzstan is almost in the last place in the CIS in terms of economic growth and still can not reach a 7% growth level, even though in the early 1990s the country's prospects looked very promising. The IMF experts are also concerned with this low growth rate, but they consider this situation temporary. Do not forget that gold makes for 40% of Kyrgyzstan's export, and Kumtor has decreased its gold production, said Tapio Saavalainen. Another reason is a decreased electricity export. Because of heavy rains last spring, Uzbekistan and Kazakhstan did not need much water from Kyrgyzstan as before (this water is used for generation electricity). By the way, according to Reuters, Cameco Corporation finished the 3rd quarter of 2002 with low indicators due to a sharp decrease of gold production at the Kumtor gold mine in Kyrgyzstan because of an accident which occurred in the summer. In the 3rd quarter 2002, Cameco's profit decreased to seven million Canadian dollars from 15 million in the same period last year. The gold production in 2002 would decrease by 200,000 ounces. We do not think that the IMF policy is too tough, said Saavalainen. Over the past year Kyrgyzstan's money supply has increased by 35%, but the fiscal deficit has 7 not reduced in 2002 but has grown. It is planned to reduce the budget deficit by 0.5% of GDP every year. The main task is decreasing the country's foreign debt and maintaining a low inflation rate. Today, Kyrgyzstan's foreign debt is US $1.5 billion. The country needs nearly US $23 million to pay interests on the debt this year (for this purpose Kyrgyzstan has received a US $18 million grant). John Odling-Smee thinks the low GDP in Kyrgyzstan would mean an appropriate revenue level. Under the present legislation, budget revenues are collected insufficiently, which testifies to the weak state administration system that need reform to provide for economic growth. To increase budget revenues by 16%-17% in 2003 (upon which the parliament insists), taxes must also be raised. So it is planned to introduce the VAT for agricultural products. The parliament is resisting the adoption of this tax because the agrarian sector employs mostly poor citizens producing products enough only to make both ends meet. However, the previous IMF mission said the agricultural sector has many loopholes for tax evasion, so it's time to introduce the VAT in agriculture. The new tax will concern mostly large producers and exported agricultural products will be exempted from VAT, which would encourage local farmers to work for export. Of course, the VAT for agricultural products would raise prices next year, admitted Saavalainen, but the budget provides for compensation measures. The monthly aid to poor citizens would be raised by 20%. Salaries of budget-paid employees would grow by 8%. This would mean a real growth of the citizens income, since inflation is expected at 4.2%. Other bad news. Next January will see the adoption of the real estate tax aimed to "strengthen the financial situation of local government bodies and assist in fiscal decentralization". The Kyrgyz government plans that this tax would collect 100 million soms. Two-thirds of this amount are intended for the national budget and one-third to local budgets. The IMF experts, however, demand this tax to gather 250 million soms. At a news conference, Tapio Saavalainen made it clear that the IMF experts do not care about social problems that may arise in connection with the real estate tax. In their opinion, it is not an overtax. The IMF experts also discussed another increase of electricity tariffs and introducing the VAT for public utilities. This will not be done now, but Tapio Saavalainen said there is a program to raise the tariffs to the payback level. The government will cancel the VAT for medications, to improve the quality of medicines and reduce their 8 contraband. The meeting considered the issue of raising pensions. This would be done in April. The next IMF mission is to come to Kyrgyzstan in February to monitor the budget fulfillment and tax collection. Depending on the financial situation of the Social Fund, the IMF would recommend a new pension size. The IMF experts revealed a debt of the Social Fund before the fund of compulsory medical insurance, which hinders the health care reform. They set a schedule for paying this debt. First of all, the IMF experts insist on improving tax administration. They demand exercising tougher control of large taxpayers and introducing self-calculation of taxes at large enterprises, which would encourage them to switch to an international accounting standard. Kyrgyzstan is also standing on the threshold of banking reform. Today the country badly needs domestic investments, but the citizens do not trust local banks. The banking reform must strengthen banking control, develop the necessary legislation, privatize state-owned banks, and improve the settlement system. Copyright © 1999-2002 The Times of Central Asia Kyrgyzstan Police Crush Protest, Detaining 100 November 17, 2002 Kyrgyzstan Police Crush Protest, Detaining 100 By REUTERS ISHKEK, Kyrgyzstan, Nov. 16 (Reuters) — The police in Kyrgyzstan today detained about 100 opposition protesters demanding the resignation of the president, and the authorities warned that the country could be heading for civil war. The political situation in Kyrgyzstan, an impoverished, largely agrarian nation of five million people, has been volatile since March 17, when five opposition protesters were killed and dozens wounded in fierce clashes with the police in the country's rebellious south. Tussles broke out today as the police tried to stop a column of more than 100 opposition supporters marching to a central avenue from a bustling market place in the capital, Bishkek, to hold a rally there. The police, who were unarmed, finally managed to drag nearly all the protesters into buses and drove them away. Bishkek, a city of 800,000, appeared calm later, but reinforced police units patrolled main streets and government buildings. Officials quickly condemned the opposition action. "The actions of political schemers, several parliamentary deputies and a bunch of intriguers, are aimed at destabilizing the situation," Prime Minister Nikolai Tanayev said at a news conference. He accused the protesters of trying to seize power "by unconstitutional means." Hundreds of protesters arrived from the south earlier in the week for the 9 unauthorized rally, which they called a people's congress, hoping thousands of Bishkek residents would support their call for President Askar Akayev's resignation and punishment of those guilty of the March deaths. The authorities have branded the rally planners "a mob" and the rally a "motley gathering" staged by "political extremists." The government resigned in May after Mr. Akayev acknowledged that top officials were to blame for the civilian deaths in March. The opposition then spurned an invitation to join a coalition cabinet. They also scorned an amnesty law intended to placate the opposition by absolving both sides involved in the March clashes. Finally, opposition leaders ignored a constitutional assembly convened by Mr. Akayev in an effort to restore calm by promising to delegate some of his powers to Parliament. Despite the tough standoff, Mr. Akayev, an urbane 58-year-old physicist, still enjoys strong support in his native north and from the sizable Russian-speaking minority. An opposition leader, Azimbek Beknazarov, whose arrest led to the clashes with the police in March, said today that the opposition would press ahead with its banned congress despite the restrictions and security precautions taken by the authorities. "We will meet either in Osh," a southern regional center, he said, "or beyond the country's borders, or secretly in Kyrgyzstan." First Deputy Prime Minister Kurmanbek Osmonov said of the opposition tactics today: "What is going on now is mere political blackmail. Their actions look like mutiny." Copyright The New York Times Company | Permissions | Privacy Policy Country Guide / The Times of Central Asia#economicDaily news from Central Asia! Wednesday, Nov 27, 2002 State Structure: Executive branch: Chief of state: President Askar AKAYEV (since 28 October 1990). Many new persons have appeared in the government in comparison with the previous Cabinet which was dismissed on May 22 immediately after the resignation of Prime Minister Kurmanbek Bakiyev was accepted. According to the decree of President Askar Akayev the following people were appointed as ministers: Minister of Foreign Affairs Askar Aitmatov, former head of the foreign policy department in the presidential administration. Minister of Internal Affairs Bakirdin Subanbekov, former head of the regional Interior Department. Minister of Foreign Trade and Industry Sadriddin Dzhienbekov who earlier headed the State Committee for state property management and attracting direct investments. Minister of Education and Culture 10 Ishenkul Boldzhurova, the rector of the Bishkek Humanitarian University. Minister of Justice Daniyar Narynbekov - former Chairman of the republican Supreme Court of Arbitration. Minister of Justice Daniyar Narynbekov - former Chairman of the republican Supreme Court of Arbitration. Minister of Health Mitalip Mamytov and Minister of Agriculture, Water Management and the Processing Industry Alexander Kostyuk have preserved their posts. Defence Minister Esen Topoyev remained on this post. The resignation of former Prime Minister of Kyrgyzstan and his Cabinet was accepted at the session of the Kyrgyz Security Council on May 22. At that session the Security Council considered the conclusions of the State Commission, which investigated the tragic events in the Aksy region on March 17 when five people were killed and dozens injured during the dispersal of the protest demonstration. At that time, apart from the Prime Minister, the head of the presidential administration and the Interior Minister who took upon them the responsibility for the tragedy sent in resignations. On May 30, the Assembly of People's Representatives of Jogorku Kenesh approved the candidature of Nikolai Tanayev, proposed by President Askar Akayev, to the post of Prime Minister. Nikolai Tanayev was First Vice Prime Minister in the previous government. That day Vice Prime Ministers of the new government were also appointed. Administrative divisions: 7 oblasts (singular - oblast); Batken Oblast, Chuy Oblast (Bishkek), Jalal-Abad Oblast, Naryn Oblast, Osh Oblast, Talas Oblast, Ysyk-Kol Oblast (Karakol) Legislative branch: bicameral Supreme Council or Jogorku Kenesh consists of the Assembly of People's Representatives (70 seats; members are elected by popular vote to serve five-year terms) and the Legislative Assembly (35 seats; members are elected by popular vote to serve five-year terms) elections: Assembly of People's Representatives - last held 20 February and 12 March 2000 (next to be held February 2005); Legislative Assembly - last held 20 February and 12 March 2000 (next to be held February 2005) Governmental Resources Economic Overview: Kyrgyzstan is a small, poor, mountainous country with a predominantly agricultural economy. Cotton, wool, and meat are the main agricultural products and exports. Industrial exports include gold, mercury, uranium, and electricity. Kyrgyzstan has been one of the most progressive countries of the former Soviet Union in carrying out market reforms. Following a successful stabilization program, which lowered inflation from 88% 11 in 1994 to 15% for 1997, attention is turning toward stimulating growth. Much of the government's stock in enterprises has been sold. Drops in production had been severe since the breakup of the Soviet Union in December 1991, but by mid-1995 production began to recover and exports began to increase. Pensioners, unemployed workers, and government workers with salary arrears continue to suffer. Foreign assistance played a substantial role in the country's economic turnaround in 1996-97. Growth was held down to 2.1% in 1998 largely because of the spillover from Russia's economic difficulties, but moved ahead to 3.6% in 1999 and an estimated 5.7% in 2000. The government has adopted a series of measures to combat such persistent problems as excessive external debt, inflation, and inadequate revenue collection. Industries: small machinery, textiles, food processing, cement, shoes, sawn logs, refrigerators, furniture, electric motors, gold, rare earth metals. Agriculture - products: tobacco, cotton, potatoes, vegetables, grapes, fruits and berries; sheep, goats, cattle, wool. Exports - commodities: cotton, wool, meat, tobacco; gold, mercury, uranium, hydropower; machinery; shoes. Imports - commodities: oil and gas, machinery and equipment, foodstuffs. Investors: Russia, Kazakhstan, Turkey, China, Germany, Canada, and USA. GENERAL INFORMATION: Facts at a Glance, Flag Description, State Symbol, National Anthem, Country Map, Survival Info, Embassies, Passport and Visa, Money and Costs, Public Holidays, Voltage, Weight, Metric System, Useful links COUNTRY PROFILE: Geography, Environment, Provinces, Main Cities, Climate, History, State Structure, Economic Overview, Export, Import, Investors, Special Topic, Picture gallery TO AND IN: How to get there, Air, Road, Culture & Arts, Manas, Museums, Theaters, Cinemas, National music samples, Where to stay, Telephone and Fax, Mobile Phones, Telecommunication, Kyrgyz Cuisine, Hotels, Computer Games, Leisure, National games, Recreation possibilities, ABC, Phrases Copyright © 1999-2002 The Times of Central Asia Kyrgyz Head Warns of Bloody Clashes, Won't Resign November 20, 2002 Kyrgyz Head Warns of Bloody Clashes, Won't Resign By REUTERS 12 Filed at 10:12 a.m. ET BISHKEK, Kyrgyzstan (Reuters) - Kyrgyzstan's embattled President Askar Akayev, facing mounting calls from opposition protesters to resign, warned Wednesday of renewed bloody clashes and indicated he had no intention of stepping down. Last week hundreds of opposition members arrived in the capital Bishkek to stage a ``kurultai,'' or popular congress, to demand Akayev's resignation and the punishment of officials responsible for the March deaths of five protesters. Tussles with police broke out at the weekend and several dozen protesters were detained briefly, while the rest were sent back to far-flung southern regions. Akayev, a soft-spoken 58-year-old physicist once viewed by the West as the most liberal ruler in despotic ex-Soviet Central Asia, broke a week's silence Wednesday by branding his political opponents ``instigators who whip up tensions.'' ``To all appearances, these people will not stop at the danger of shedding once again the blood of innocent citizens,'' Akayev told a meeting of Kyrgyz ethnic groups. Political tension in the impoverished, agrarian nation of five million has been simmering since March when five opposition protesters were killed and dozens wounded in fierce clashes with police in the country's rebellious south. The government fell in March after Akayev acknowledged that senior officials were to blame for the civilian deaths. Akayev said the authorities would ``take all adequate measures to avert attempts to shatter stability'' and signaled that he had no plans to resign before the end of his term in 2005, despite the growing opposition pressure. ``I believe that in 2005...the nation will make the choice which answers best to its interests,'' Akayev said. President since 1990, Akayev was re-elected for a final term by a landslide vote in 2000. The elections were branded by Western governments and human rights bodies as flawed. ``In 2000, these (opposition) people indeed voted against Akayev, but the majority did not back them, and does not support them today,'' he added. Akayev made no mention of dialogue with the opposition, although he has called repeatedly for compromise and offered concessions in recent months. In the latest standoff with the authorities, the opposition has so far shown no intention of backing down and says it will press ahead with its planned kurultai and other protest actions. Copyright Reuters Ltd. | Privacy Policy News / The Times of Central AsiaDaily news from Central Asia! Reforms, Corruption, and Development Kyrgyzstan, December 07, 2002 [ 10:30 ] By Giorgio Fiacconi,TCA Publisher, TCA BISHKEK (TCA). Last week an international conference on fighting corruption was held in Bishkek. Participants 13 from several European and Asian countries discussed possible strategies to fight this persistent and overbearing problem. The participation of representatives of Transparency International gave the conference a more global profile and impact. Meanwhile in Kyrgyzstan, debate about the new Constitution and several reforms under the proposed Matrix 3 are ongoing. One wonders what kind of impact all this will have on the development of the country, the attraction of foreign investment, the creation of jobs and finally the reduction of poverty. This closing year has witnessed new approaches and initiatives, changes that, if effected, may create a "new" Kyrgyzstan. Hopefully, a country where the rule of law will prevail over personal interest and clans, a place where democracy will restore faith in Institutions, a country where civil and human rights will be not merely discussed, but will assume their deserving role in society. At present, Kyrgyzstan is operating under the turmoil of opinions and a disharmony that in a few cases has gotten out of control. The presence of the American coalition forces and now the Russian forces will certainly help keep an apparent stability. But this is not enough. What can be done to bring something creative to the present situation and, above all, to speed up those initiatives that would augur well a new democracy? Reforms, corruption and development are three aspects of the present situation that are interrelated and need to be solved hand in hand. The problem of corruption will not be solved unless real action is taken in reforming the judiciary system and various laws. In some cases this also requires changing the Constitution in order to guarantee a separation between the presidential power, the executive and the judiciary system. From the other perspective, the attraction of investment also depends on how foreign and local investors perceive Kyrgystan's economic climate and stability. Consequently many actions taken by certain parts of the opposition are not always conducive to developing a proper climate for investment. So development is delayed and poverty levels remain static. There are various initiatives under way that should be carefully considered. The proposed constitutional amendments are certainly a bold step forward if the new Constitution is to reflect the expectation of the people and move in the right direction. Initially proposed in August, they were supposed to be completed quickly. We wrote that people needed to be consulted and that more time was required to generate balanced results. After a few extensions for a national debate, a referendum has been fixed for the 2nd January 2003. But the proposed text still requires modifications. There are several articles that must be modified before they are submitted to the referendum, in particular 14 article 19 on seizure of properties. This paves the way for abuses by State organizations. With the new amendment, seizure of property will simply depend on the existing law and will not require a court decision. Although in the present system the court may not be completely independent, it is clear that it still represents some protection for the citizen against any Government abuses. With the new article such protection will disappear, further weakening the possibility of a fair trial. In article 83 the supreme court is given the authority to question any decision of the lower courts through reviews over a three year period irrespective of whether there has been an appeal or not. Again this amendment will certainly not contribute to a fair judiciary and will be subject to abuses, thus opening the door to corruption. Another issue related to reforms is the well known Matrix to attract foreign investment. Introduced in 2001 in order to eliminate barriers that hinder foreign and local investment, it is now in its third revision. The Matrix, originally conceived following the complaints of a group of local investors, has, meanwhile, distanced itself from the interests of businessmen, resulting in difficulties attracting direct private investment. With people talking already about the fourth or fifth matrix, before it having achieved the long awaited foreign investment, one can only hope that the exercise does not turn into a soap opera. If some steps forward have been made in smoothing-out the problems, many are of the opinion that the private sector and foreign investors that have been behind the first proposal have been left behind. The fact remains that the new matrix seems completely controlled by the donor participants and no space at all is allocated to the real businessmen, those that will generate the much needed direct investment. For example the IBC (International Business Council), instrumental in formulating the first Matrix in 2001, no longer even features as a sounding board. The Matrix is not getting the type of consultation that (based on experience) only IBC members can provide. The matrix claims to be available to discuss any initiative with representatives of the business community, but it is not yet clear to whom this is addressed, since the foreign business community and its Council has been completely ignored during the course of Matrix 2. Let's hope that the issue will be reversed with - soon to be launched - Matrix 3. In any case it should be clear that unless the Matrix is able to redress the complaints of those investors already in the country, it will be impossible to attract new ones. The National poverty Reduction Strategy (NPRS) and the Comprehensive Development Framework of the Kyrgyz Republic (CDF) do require much more than a simple 15 declaration and a paper plan, they require action that was wholly missing in the last twelve months. We had various conferences and donor countries committed a large sum of money but it remain to be seen how it will work. There are plans and projects, but investors and the general public see things differently: things are the same and, in some cases, worse. The various initiatives and proposed reforms have not yet been able to transfer to the general public, businessmen and country analysts the feeling that some thing is changing or is going to change. The shadow economy is very strong and the overall market remains ridden with corruption. The judiciary does not function (to say the least) and unemployment is on the rise. A sense of frustration pervades the economy and the opinion of the general public and this is not going to change with cosmetic improvements but instead requires real action that is so far missing. It is certainly unemployment and the poor condition of the local economy that are at the root of recent social unrest and a more aggressive opposition. This situation is certainly due to a need for better governance and requires the implementation of those decisions that may not be popular, but are necessary for the country. The overall situation is sad, because people are suffering and when they become desperate they resort to any type of reaction, not always in line with the law. But the present situation and widespread corruption distort private business transactions, from bribery to swindling, from embezzlement to contraband and on to various criminal activities. It is a circle out of which Kyrgyzstan should come through reform and the implementation of best practice policies with the promotion and support of good governance both in the public and private sector. All opinions: 0 | Add comment Copyright © 1999-2002 The Times of Central Asia 17 – 23 December 2002 23 December 2002 Kyrgyzstan: A Year of Living Dangerously Opposition protests and human rights under the microscope have increased pressure on Kyrgyzstan’s government. OSH, Kyrgyzstan--In Kyrgyzstan, 2002 will be remembered as a year of clashes between the opposition and the government. Seven deaths were recorded, and mass protests--including hunger strikes--were held all over the country. In the wake of the year of turmoil, the Organization for Security and Cooperation in Europe (OSCE) is calling for transparent 16 negotiations between the two sides and has offered funding for new programs aimed at improving the situation, including a new ombudsman’s office. During a 17 December visit to the Kyrgyz capital of Bishkek, acting OSCE Office for Democratic Institutions and Human Rights (ODIHR) Director Steven Wagenseil said, "The new ombudsman institution was established on a sound legal basis and has the potential to play an important role in protecting the rights and freedoms of all citizens.” The ODIHR also gave the new office $60,000 in additional startup funding. Opposition Free Kyrgyzstan (EK) party chair and well-known parliamentarian Tursunbai Bakir Uulu was sworn in as Kyrgyzstan's first ombudsman on 13 December. Bakir Uulu beat out six other candidates, including Asel Mambetalieva--who had been nominated by the president's office--in an election held in the Kyrgyz parliament last month. To prevent conflicts of interest, Bakir Uulu stepped down from his seat in parliament and his role in the EK before being inaugurated. Bakir Uulu had served as the chair of the Human Rights Committee under Kyrgyz President Askar Akaev but quit the post in protest at the lack of progress. The former EK chair had, as a parliamentarian, introduced the country’s ombudsman law, which was adopted by the Kyrgyz government on 25 June and signed by the president on 31 July. The Kyrgyz ombudsman will have three deputies charged with protecting the rights of children and minorities and dealing with gender issues. Bakir Uulu indicated that he wants to open offices in every region of Kyrgyzstan but said that the 4 million soms (approximately $85,000) allocated by the government for his budget is inadequate. PLACING THE BLAME Despite the creation of the ombudsman’s office and the call by the ODIHR’s Wagenseil during a meeting with parliamentarians for the opposition and government to settle their issues by means of negotiations, heated disagreements between the opposition and the authorities have continued. The online edition of Obshestveniy Reiting reported that on 19 December there was another meeting in the south of the country in honor of the protestors who were killed in the southern Aksy district in March. The demonstrators again demanded punishment of those responsible for the fatal shooting of six protestors who had gathered to petition Bishkek for the release of well-known opposition leader Azimbek Beknazarov, who had been arrested in January 2002. Beknazarov’s supporters, as well as many opposition figures, charged that his arrest had been politically motivated. The authorities ultimately released Beknazarov under the pressure of months of mass protests and hunger strikes. After the Aksy district incident, district inhabitants demanded that top national officials be taken to court to determine responsibility 17 for the Aksy tragedy. Among those included on the protestors’ list were former head of the presidential administration Amanbek Karypkulov, former Interior Minister Temirbek Akmataliev, and former Deputy Interior Minister Kalmurat Sadiev. All three continue to serve in the government in different positions. Ongoing mass protests turned into a huge march to Bishkek, which brought the country to the brink of civil war. In September, following a last-minute stand-down by both the authorities and the opposition, Beknazarov said, “We were 50 meters from civil war. That was averted when, on 12 September, the government and the opposition signed a memorandum in which the government promised to bring those responsible for the deaths in Aksy to court by 15 November and the protestors agreed to abandon their foot march to Bishkek and drop several demands, including calls for Akaev’s resignation and a revision of the Sino-Kyrgyz border agreement [which ceded territory to China].” But by 15 November, none of officials had been brought to trial, and protestors sought to organize a second march to Bishkek. At the end of November, more than 1,000 protestors were prevented from marching into the country’s capital. Demonstrators included human rights and opposition figures, many of whom have charged that the current regime is increasingly undemocratic and authoritarian. Meanwhile, the president’s public relations adviser, Bolot Djanuzakov, called the demonstrations and opposition demands “political extremism.” The authorities detained more than 300 people, who were then released and bused back to their home regions in the south of the country. In a separate development, the Russian daily Kommersant reported that 400 residents of two Kyrgyz villages, Myrzake and Kara-Kulja, have applied to Russian President Vladimir Putin with a request to admit them into the Russian Federation. The village residents cited human rights violations. Official Bishkek responded by calling the villagers’ attempts a “threat to national security,” though the authorities have taken no measures against them. DESPERATE CONDITIONS Kyrgyzstan’s industrial sector development is the lowest among the countries of the Commonwealth of Independent States (CIS), Akipress reported, citing RIA Novosti. The majority of the population lives in poverty, and Kyrgyzstan depends heavily on outside aid. Kyrgyz Deputy Prime Minister Joomart Otorbaev announced last month that the U.S. government will award Kyrgyzstan $90 million in aid in the year 2003. Kyrgyzstan currently hosts a coalition military base at Bishkek’s Manas airport. Russia has also kicked in some assistance to the struggling country--but not without a price. According to Russian Deputy Finance Minister Sergey Kolotukhin, Moscow will reschedule part of Kyrgyzstan’s $58 million debt. Kyrgyzstan’s total debt to Russia is $171 million. Kolotukhin made the announcement on 5 December, only two days after Russia had put its military aircraft in the Kant airfield in the north of the country. 18 One university lecturer in southern Kyrgyzstan who wished to remain anonymous told TOL that Kyrgyzstan is losing its sovereignty in a dramatic fashion. “Would Kyrgyzstan allow Americans to have their base in the capital if [Kyrgyzstan] did not have such a huge debt, exceeding $1.4 trillion dollars, to international financial organizations? How could Putin so easily install a Russian military base in Kyrgyzstan without asking?” the lecturer demanded. The authorities and the opposition, meanwhile, have turned the country’s dire straits into a blame game. The Kyrgyz president, while addressing a public meeting in the northern Naryn province, called the “radical opposition’s irresponsible actions” a threat to social stability. The opposition blames Akaev, who has been in power for 11 years, for the severe economic and social crises in the country. --by Hamid Toursunof For more information about Kyrgyzstan, visit the TOL Knowledge Net’s Kyrgyzstan page at http://kyrgyzstan.tol.cz. Copyright © 2002Transitions Online. All rights reserved. 19