If one happens to visit a village in any part of Kyrgyzstan, a stark picture of solitude will appear despite constructions of new buildings and number of foreign cars on the streets. Older people says it is like during the World War II, when strong men and women went off to front lines leaving the villages to the elderly and the small children. Just about every family has one or two people working either in Russia or Kazakhstan. Many more are in the capital city of Bishkek seeking better living away from dilapidated rural Kyrgyzstan.

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Not everything is sour in Kyrgyzstan. Interfax reports that “Foreign direct investment (excluding outflow) in the economy of Kyrgyzstan grew 40% year-on-year to $189.5 million in January-September 2006″.

Foreign direct investment in Kyrgyzstan up 40% in Jan-Sept

BISHKEK. Jan 5 (Interfax) - Foreign direct investment (excluding outflow) in the economy of Kyrgyzstan grew 40% year-on-year to $189.5 million in January-September 2006, the Kyrgyz National Statistics Committee said in a report on the social and economic situation in the country.

The inflow of shareholders capital increased 40% to $27.6 million in the period, while the inflow of other types of capital grew 50% to $140.8 million. The growth in the latter indicator was the result of a 100% increase in trade loans and a 9.4% rise in loans received from foreign co-owners in the period. Reinvested profit fell 17.5% to $21.1 million in the nine months.

Foreign direct investment from non-CIS countries rose 21.4% to $126.3 million in the period.

Foreign direct investment from CIS countries grew 90% to $63.2 million in the period. Kazakhstan invested $56.2 million in Kyrgyzstan in the nine months, accounting for 29.7% of total CIS investment, while Russia invested $6.5 million, accounting for 3.4%.

It is almost new 2007 year. How has the business climate been in 2006? …

Sheradil Baktygulov, a consultant at the Guide Consultant Research Company, writes about the “Carrot and Stick” Policy of the HIPC. …

President Bakiev attended the CIS summit in Minsk, Belorus. During his stay there Bakiev visited the Minsk Tractor Factory where he was given a tour around the plant and briefed about its activities. …

According to the Kyrgyz Finance Ministry’s latest data, Kyrgyzstan’s real GDP growth for 2006 has been 2.9%, which much lower than president Kurmanbek Bakiyev’s plan for 8%.  Over the last 10 months, Kyrgyzstan experienced a 12.1% decrease of industrial production, but a 8.5% increase in the services, 1.3% in agriculture, and a whopping 23.3% in constructions.  Inflation rate is at 2.9%.  Average salary is around $75. …

The International Republican Institute (IRI) today presented to the Kyrgyz media results of a poll coordinated by IRI and Baltic Suveys/The Gallup Organization and funded by the USAID.  Please note that the survey was conducted in October and does not reflect shifts in the public opinion following the November demonstrations.  However, the presentation includes important data from April 2005 and March 2006, which gives some insight into how public perceptions changed - and did not change - during the year.

Although the presentation itself is 82-slide long, KyrgyzReport presents you only a portion of the most important (the whole survey is very important).  For more information, visit IRI website for Kyrgyzstan or contact its Bishkek office at jlilley@iri.org.

Image 1: People are generally happy…

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AKIpress reports that today or tomorrow the Kyrgyz government will decide whether Kyrgyzstan should be in the list of HIPC or not. Sources say that the government has come to a conclusion but the decision has not yet been presented to the President.

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