International Congress on Eurasian Economies

International Conference on Eurasian Economies

12-14 October 2011 – Bishkek, KYRGYZSTAN

Paper detail

Paper ID : 358
Status : Paper published
Language : English
Topic : Regional Economics
Session : 1A Global Financial Integration

Kyrgyzstan’s Relations with International Financial Organizations: Curse or Curve?
Kyrgyzstan’s Relations with International Financial Organizations: Curse or Curve?


Kyrgyzstan since the collapse of Soviet Union went to the transition path and while it is argued that it succeeded at some points, levels or degree. It is certainly that major obstacles to the successful transition are not overcome. First of all it was necessary to get out of Russian dominated economy since it was itself declining. Kyrgyzstan was the first former Soviet republics left Russian ruble zone and accepted its own currency, som in 1993. Moreover, it is also the first former Soviet republics entered to World Trade Organization (WTO) in 1998. Second, finding new trade partners and external markets was a challenge. Kyrgyz governments wanted to go outside for two reasons: trading with outsiders at time of economic downturn in CIS was rise profitable and trading with outsiders would be a manifestation of their independence and sovereignty. It is obvious that since the independence Kyrgyzstan still serves as supply of raw material such as Kyrgyzstan’s primary budget income is still composed from natural resources (gold export). The Kyrgyz Republic is also classified as a low-income country with high debt vulnerability, due to these characteristics it is eligible to receive a significant level of grant from international financial organization, like World Bank. In this paper, Kyrgyzstan’s relations with the International Financial Organizations will divide three stages: Romantic years in 1990s, Debate on Heavily Indebted Poor Countries (HIPC) Initiative in 2000s, and the last one, after HIPC and Revolution in 2010.

JEL codes: F59, F50, F33

SARI, Yaşar  (2011). "Kyrgyzstan’s Relations with International Financial Organizations: Curse or Curve?" in Proceedings of International Conference of Eurasian Economies 2011, pp.12-16, Bishkek, KYRGYZSTAN.


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Session 1A: Global Financial Integration

Istanbul Beykent University Kyrgyz-Turkish Manas University Promotion Fund of the Turkish Prime Ministry Turkish Central Bank