Two problems of Kyrgyzstan

Kyrgyzstan faces two main problems for coming years: energy and food. An illusion and constatnt talks about Kyrgyzstan as a land of endless electricity source eclipsed the minds of many, including our officials who are faintly attempting to stabilize the situation. Winter of 2007-08 showed that threat of being left in the dark and without heat is real. Despite the fact that Uzbekistan increased gas prices (40%), this winter revealed that our main power dam- Toktogul water level has dropped dramatically due to absence of formal policies regulating waterflows.

Currently, government is trying to restore water level by limiting usage of electricity (switching off). It has also initiated a construction of two additional dams on the same Naryn river as Toktogul. Although, Prime Minister Chudinov announced today that limits on electricity usage will be dropped, my friend, who works in one of the electricity companies told me that limitations may be active till one of the new dams start functioning (Fall 2009).

Another problem of food security was also discussed in the parliament upon entring agricultural season 2008, where they decided to determine specialized regions to grow grain-crops, establish another vice- prime minister, who will be responsible for "social issues and food security" and subsidize farmers. These policies are very much Soviet and authoritarian. From my recent to Open KG TV show, where participants discussed this problem, I concluded that Kyrgyzstan lacks long-term agricultural policy and stimulation mechanisms. While many still percieve agriculture as a government sector, not many (including our government) consider free market regulations to encourage production (fiscal, monetary, tariffs). Another aspect of this problem is our import-dependency, especially on consumer products, which should induce our government to look at our neighbor (Kazakhstan) in search of good deals.

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