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Industrial Revolution in Kyrgyzstan

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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!!!
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