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Economy of Kyrgyzstan
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==Industries== ===Agriculture=== {{main|Agriculture in Kyrgyzstan}} [[File:E7994-Milyanfan-fields.jpg|thumb|left|Irrigated fields in the [[Chuy River|Chuy]] Valley]] Agriculture remains a vital part of Kyrgyzstan's economy and a refuge for workers displaced from industry. [[Subsistence farming]] has increased in the early 2000s. After sharp reductions in the early 1990s, by the early 2000s agricultural production was approaching 1991 levels. [[Grain]] production in the lower valleys and [[livestock]] grazing on upland pastures occupy the largest share of the agricultural workforce. Farmers are shifting to grain and away from [[cotton]] and [[tobacco]]. Other important products are [[dairy]] products, [[hay]], animal feed, [[potatoes]], [[vegetables]], and [[sugar beets]]. Agricultural output comes from private household plots (55 percent of the total), private farms (40 percent), and state farms (5 percent). Further expansion of the sector depends on banking reform to increase investment, and on market reform to streamline the distribution of inputs. Land reform, a controversial issue in Kyrgyzstan, has proceeded very slowly since initial legislation in 1998.<ref name=cp>[http://lcweb2.loc.gov/frd/cs/profiles/Kyrgyzstan.pdf Kyrgyzstan country profile] {{Webarchive|url=https://web.archive.org/web/20050226190608/http://lcweb2.loc.gov/frd/cs/profiles/Kyrgyzstan.pdf |date=2005-02-26 }}. [[Library of Congress]] [[Federal Research Division]] (January 2007). ''This article incorporates text from this source, which is in the [[public domain]].''</ref> The [[irrigation]] infrastructure is in poor condition. Agriculture contributes about one-third of the GDP and more than one-third of employment.{{Citation needed|date=March 2008}} Kyrgyzstan produced in 2018: * 1.4 million tons of [[potato]]; * 773 thousand tons of [[sugar beet]]; * 692 thousand tons of [[maize]]; * 615 thousand tons of [[wheat]]; * 429 thousand tons of [[barley]]; * 224 thousand tons of [[tomato]]; * 218 thousand tons of [[watermelon]]; * 209 thousand tons of [[onion]]; * 176 thousand tons of [[carrot]]; * 147 thousand tons of [[cabbage]]; * 144 thousand tons of [[apple]]; * 119 thousand tons of [[cucumber]]; * 116 thousand tons of [[vegetable]]; * 101 thousand tons of [[bean]]; * 74 thousand tons of [[cotton]]; In addition to smaller productions of other agricultural products, like [[apricot]] (25 thousand tons).<ref>{{Cite web |url=http://www.fao.org/faostat/en/#data/QC/ |title=Kyrgyzstan production in 2018, by FAO |access-date=2020-11-01 |archive-date=2016-11-12 |archive-url=https://web.archive.org/web/20161112130804/http://www.fao.org/faostat/en/#data/QC/ |url-status=live }}</ref> ===Forestry=== Only 4 percent of Kyrgyzstan is classified as forested. All of that area is state-owned, and none is classified as available for wood supply. The main commercial product of the forests is walnuts.<ref name=cp/> ===Fishing=== Kyrgyzstan does not have a significant fishing industry. In 2002 aquaculture contributed 66 percent of the country's total output of 142 metric tons of fish, but in 2003 the aquaculture industry collapsed, producing only 12 of the country's total of 26 metric tons.<ref name=cp/> ===Mining and minerals=== In the post-Soviet era, mining has been an increasingly important economic activity. The [[Kumtor Gold Mine]], which opened in 1997, is one of the largest [[gold]] deposits in the world. New gold mines are planned at [[Jerooy]] and [[Taldy–Bulak]], and a major gold discovery was announced in late 2006 at [[Tokhtonysay]]. The state agency [[Kyrgyzaltyn]] owns all mines, many of which are operated as [[joint ventures]] with foreign companies. [[Uranium]] and [[antimony]], important mineral outputs of the [[Soviet era]], no longer are produced in significant amounts. Although between 1992 and 2003 [[coal]] output dropped from about 2.4 million tons to 411,000 tons, the government plans to increase exploitation of Kyrgyzstan's considerable remaining deposits (estimated at 2.5 billion tons) in order to reduce dependency on foreign energy sources. A particular target of this policy is the [[Karakeche|Kara–Keche]] deposit in northern Kyrgyzstan, whose annual output capability is estimated at between 500,000 and 1 million tons. The small domestic output of oil and natural gas does not meet national needs.<ref name=cp/> ===Industry and manufacturing=== In the post-Soviet era, Kyrgyzstan's industries suffered sharp reductions in productivity because the supply of raw materials and fuels was disrupted, and Soviet markets disappeared. The sector has not recovered appreciably from that reduction; if gold production is not counted, in 2005 industry contributed only 14 percent of the gross domestic product (GDP). Investment and restructuring have remained at low levels, and the electricity industry (traditionally an important part of industry's contribution to GDP) has stagnated in recent years. Government support is moving away from the machine industries, which were a major contributor to the Soviet economy, toward clothing and textiles. Food processing accounted for 10 to 15 percent of industrial production until encountering a slump in 2004. In recent years, the glass industry has surpassed clothing and textiles in investment received and as a contributor to GDP. In the early 2000s, the construction industry has grown steadily because of large infrastructure projects such as highways and new gold mines. Housing construction, however, has lagged because of low investment.<ref name=cp/> ===Energy=== {{See also|Energy in Kyrgyzstan|List of power stations in Kyrgyzstan}} More than ninety percent of electricity produced is hydroelectric and the country could produce much more of such clean energy and export to its neighbors and the region. Even though Kyrgyzstan has abundant hydro resources, only less than ten percent of its potential has been developed so far. It has limited deposits of fossil fuels and most of its natural gas imports come from Uzbekistan, with which Kyrgyzstan has had a series of imperfect barter agreements. Per capita energy consumption is high considering average income, and the government has no comprehensive plan to reduce demand. Up to 45 percent of electricity generated, especially in winter time, is diverted illegally or leaks from the distribution system. Hydroelectric plants generate some 92.5 percent of domestically consumed electricity, and three commercial thermoelectric plants are in operation. Because of its rich supply of hydroelectric power, Kyrgyzstan sends electricity to [[Kazakhstan]] and [[Uzbekistan]] in return for fossil fuels. A new hydroelectric plant on the [[Naryn River]] at [[Kambarata-2 Hydro Power Plant|Kambar–Ata]] would supply power to parts of [[China]] and [[Russia]], improving Kyrgyzstan's export situation and domestic energy supply. The plant was completed on August 30, 2010. An antiquated infrastructure and poor management make Kyrgyzstan more dependent on foreign energy in winter when water levels are low. In the early 2000s, Kyrgyzstan was exploiting only an estimated 10 percent of its hydroelectric power potential. In 2001 Kyrgyzstan had about 70,000 kilometers of power transmission lines served by about 500 substations. Kyrgyzstan would be a member of the [[Shanghai Cooperation Organisation]]'s [[Asian Energy Club]], which Russia proposed in 2006 to unify oil, gas, and electricity producers, consumers, and transit countries in the Central Asian region in a bloc that is self-sufficient in energy. Other members would be China, Kazakhstan, [[Tajikistan]], and Uzbekistan.<ref name=cp/> Kyrgyzstan is a partner country of the [[European Union|EU]] [[INOGATE]] energy programme, which has four key topics: enhancing [[energy security]], convergence of member state [[energy market]]s on the basis of [[Internal energy market|EU internal energy market]] principles, supporting [[sustainable energy]] development, and attracting [[investment]] for energy projects of common and regional interest.<ref>{{Cite web |url=http://www.inogate.org/ |title=INOGATE website |access-date=2009-04-19 |archive-date=2019-11-18 |archive-url=https://web.archive.org/web/20191118080914/http://www.inogate.org/ |url-status=dead }}</ref> The [[South Korea]]n style manufactured [[bituminous coal]] called ''yeontan'' (йонтан) is gaining popularity in Kyrgyzstan's energy industrial scene.<ref>{{cite news | first = I-cheol (이철) | last = Byeon (변) | script-title = ko:'한국 연탄'으로 '한류' 지핀다 | date = 2011-08-05 | url = http://www.nocutnews.co.kr/show.asp?idx=1880053 | work = Nocut News | access-date = 2011-08-21 | language = ko | archive-date = 2020-03-31 | archive-url = https://web.archive.org/web/20200331204237/http://www.nocutnews.co.kr/show.asp?idx=1880053 | url-status = live }}</ref><ref>{{cite news | script-title = ru:В зданиях бюджетных учреждений Ленинского района будут установлены современные отопительные котлы | date = 2010-12-01 | url = http://www.zpress.kg/news/news_only/3/25402/46 | work = Zamandash Press | access-date = 2011-08-21 | language = ru | url-status = dead | archive-url = https://web.archive.org/web/20120322234251/http://www.zpress.kg/news/news_only/3/25402/46 | archive-date = 2012-03-22 }}</ref> ===Services=== [[File:Glamping in Kyrgyzstan.jpg|thumb|Glamping in Kyrgyzstan]] Substantial post-Soviet growth in the services sector is mainly attributable to the appearance of small private enterprises. The central bank is the National Bank of the Kyrgyz Republic, which nominally is independent but follows government policy. Although the banking system has been reformed several times since 1991, it does not play a significant role in investment. High interest rates have discouraged borrowing. A stock market opened in 1995, but its main function is trading in government securities. Because of the Akayev regime's economic reforms, many small trade and catering enterprises have opened in the post-Soviet era. Although Kyrgyzstan's mountains and lakes are an attractive tourist destination, the [[Tourism in Kyrgyzstan|tourism industry]] has grown very slowly because it has received little investment. In the early 2000s, an average of about 450,000 tourists visited annually, mainly from countries of the former Soviet Union.<ref name=cp/>
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