Industrial Revolution in Kyrgyzstan Yelidaer Dilixiati • The industrialization of Kyrgyzstan began in the 1930’s with the production of heavy agricultural machinery, electric motors, light manufacturing, and mining. During Soviet union • Before that textiles and leather goods constituted Kyrgyzstan's main industry. During World War Two, Kyrgyzstan benefited from the Soviets’ movement of their heavy industry from the European theater to the East. Some of this industry was placed in Kyrgyzstan and later formed the basis of the industrialization of the republic. • Soon after, Bishkek, Aksu, and Tokmok received more militaryrelated industrial plants and factories from the European part of the Union. Before long, the republic became a major contributor to engineering, instrument-making, non-ferrous metal manufacturing, and coalmining. With the increase in expertise, the volume of Kyrgyz industry increased, boosting industrial production manifold. • In the 1980’s, the Soviet Union was heavily involved in Afghanistan. Much of the funds that, thus far, had been allotted to the agriculture and industry of the republics was funneled to the war front. Consequently, the republics were no longer receiving the subsidies that helped them manage their industries. Without the vital subsidies from Moscow, Kyrgyz industry began to decline. It should be noted that at its height, the republic’s industry that was centered on mining, processed uranium, antimony, mercury, and molybdenum contributed a great deal to the economy of the Soviet Union. Kyrgyz light industry produced textiles, clothing, and footwear, while the agricultural sector produced cotton, silk, fruits, and vegetables. Automobiles, tractors, electrical equipment, furniture, timber, cement, and prefabricated cement walls were among the major industrial products of the country. • Strong hydro-energy complex is possibly the nation’s greatest heritage from the Soviet Union. The country’s hydro-energy infrastructure is the second largest source of Kyrgyz exports. To underscore the importance of this industry, it should be noted that the cumulative hydro-energetic reserves of the Kyrgyz rivers exceed those of the famous Russian Volga river by several hundred percent. Kyrgyzstan exports electricity to Russia (over 1.5 billion kW annually) as well as to neighboring Kazakhstan, Uzbekistan, Tajikistan and China. Hydro-energy complex secures the excellent perspectives to replace the import of energy resources as the 75100 thousand tons of oil extracted in Kyrgyzstan annually cover only one third of the country’s need in energy. After soviet Union • After the disintegration of the Soviet Union, due to Government management reasons, resulting in a large number of employees and engineers losses. At the same time , President Akaev carried out the privatization of industry instead of nationalization of industry， that caused parleyed the industry in Kyrgyzstan during that time. • After the factory was privately owned, due to lack of professional employees and engineers , the factories and inventory was heavily purchased by China , till nowadays some of the Chinese factories still using those inventory. Light industry • Kyrgyz textile industry is a fast growing sector since the last decade. The combination of international market conjuncture and low input factors were main reasons for the textile sector development. International trade legal modification is a risk for the whole industry resilience. The purpose of the paper is to identify the vulnerable points of doing business in the context of economic transformation from planned Soviet to free market economy. • Kyrgyz economy had severe disturbances of shock therapy of transition from centrally planned to free market economy after the Soviet Union collapse in the 1990s. The perturbation of economic transformation caused major damage to industrial production that in 1995 represented 27% of its production volume of 1990. Decline of the production volume in the whole Kyrgyz industry was more than 50% but 73% for the textile sector in 2012 Thank you!!!