Bishkek, Kyrgyzstan (December 8, 2005) - A U.N. report on the economic status of the five Central Asian nations says with greater intraregional cooperation and a commitment to trade liberalization, Kyrgyzstan -- along with the other four countries -- would make substantial political and economic gains.
The Central Asia Human Development Report released Wednesday by the U.N. Development Program says by strengthening regional economic cooperation, the five countries --Kyrgyzstan, Tajikistan, Kazakhstan, Turkmenistan, and Uzbekistan -- could see their incomes as much as double in 10 years.
"This report clearly identifies the immense potential economic and human benefits of regional cooperation for Central Asia and its neighbors," said Kalman Mizsei, U.N. assistant secretary-general and UNDP director for Europe and the Commonwealth of Independent States, presenting the report in Tokyo Wednesday. "Improved trade, transport and transit, and better water and energy management on a region-wide basis would bring the biggest gains."
Despite having an openly liberal economy, Kyrgyzstan continues to be one of the poorer countries in the region. Recovering from a recent political revolution, it suffers from a national debt exceeding its gross domestic product by 2.7 percent, uncooperative neighbors and a poor infrastructure, the study said.
The UNDP report says that 70 percent of the Kyrgyz population lived below the poverty level of $2.15 per day in 2003. Kyrgyzstan also has experienced a drop in the percentage of public funds committed to education, from 8.3 percent in 1990 to 3.1 in 2001.
The country is far from isolated economically as it is the only World Trade Organization member among the five Central Asian nations. It is also one of the Central Asian nations most willing to work with donors on policy and institutional reforms while receiving the most foreign developmental aid and assistance per capita in the region.
In 2003, Kyrgyzstan, a country of more than 5 million people, received $39.12 per person, compared to just $22.85 and $5.59 per person in Tajikistan and Turkmenistan respectively.
The report recommends the five Central Asian nations promote trade and integration into the global economy and remove numerous trade barriers such as "complex and opaque trade policies," "high costs from border delays," bribes and poor transport and transit conditions.
It predicts removing these restrictions would boost economic growth and employment, reduce poverty and improve governance by narrowing the scope for corruption.
The report predicts as a result of the recent unrest in Kyrgyzstan, the government will focus on the short-term goal of "maintaining national political stability and cohesion, rather than on more intensive cooperation with each other."
It also said Kyrgyzstan's status as a WTO member state has made it an important gateway for Chinese exporters and buyers in other Central Asian countries as the country tries to become the de facto trading center in the region.
For the moment, China has planned several investments in the country, including the development of oil fields and the hydroelectric sector. China also intends to finance a $1.5 billion highway connecting from its Xinjiang to Central Asia that will go through Kyrgyzstan.
Kyrgyzstan does not have the capability to develop on its own and needs the capital and commitment of other nations before it can reach its potential.
via UPI
