Paper abstract:

The Kyrgyz government considers the sector of agriculture as a priority sector of economy. Each national strategy sets up a up-to-date action plan toward agricultural development. This is because more than 60% of total population live in rural areas, and about 45% of working popupation are engaged in agriculture. The statistical data shows that to advance the economic development the government should take agricultural policy making in comprehensive account. In looking into the state financing scheme the high level of credit lines is observed on paper, in practice not a such. Only larger companies have more credit opportunities rather than SMEs due to higher risks, low competition ability, etc. Are there any better practices and ways to support in agricultural SMEs and farmers? How deep and wide should the government intervene to SMEs' framework to promote agricultural economy? Moreover, due to climate change issues the government studies introduction of new green technologies into all sector of economy. In what way it is beneficial to farmers and agricultural SMEs is unclear due to lack of researched done in that field.