In Kyrgyzstan, GDP per capita is Intl $3,287. This falls within the range of $1,816 (Tajikistan) and $11,807 (Belarus) in the Commonwealth of Independent States (see Table 7).³⁵

Table 7: GDP per capita (Intl $): Commonwealth of Independent States (plus Mongolia) 2004

Source: WHO World Health Report 2006

Kyrgyzstan is a mountainous country with a predominantly agricultural economy. Cotton, tobacco, wool, and meat are the main agricultural products, although only tobacco and cotton are exported in any quantity. Industrial exports include gold, mercury, uranium, natural gas, and electricity. Kyrgyzstan has been progressive in carrying out market reforms, such as an improved regulatory system and land reform. Kyrgyzstan was the first CIS country to be accepted into the World Trade Organization. Much of the government's stock in enterprises has been sold.³⁶

The Kyrgyz economy suffered badly after the collapse of the USSR, with declining markets and subsidies. High inflation also ensued. Registered unemployment is 3-4% but the true figure is thought to be nearer 20%; the extent of poverty has increased during the political and economic transition, with 71% of households living in poverty in 1997.³⁷

Drops in production had been severe after the break-up of the Soviet Union in December 1991, but by mid-1995, production began to recover and exports began to increase. Kyrgyzstan has distinguished itself by adopting relatively liberal economic policies. The drop in output at the Kumtor gold mine sparked a 0.5% decline in GDP in 2002, but GDP growth bounced back in 2003-05. The government has made steady strides in controlling its substantial fiscal deficit and reduced the deficit to 1% of GDP in 2005. The government and international financial institutions have been engaged in a comprehensive medium-term poverty reduction and economic growth strategy and in 2005 agreed to pursue much-needed tax reform.³⁸

In February 2005, President Askar Akayev’s government was jolted by massive demonstrations against the parliamentary elections. By March, Akayev had fled the country and the new oppositional government came to power. Although there had been severe and widespread dissatisfaction with the elections, the collapse of Akayev’s regime was not expected and the country suddenly faced a significant governance crisis.³⁹