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Paper abstract:

Three decades of independence Kyrgyzstan lived within the paradigm of the neoliberalism, privatizing property, liberalizing trade and actively adjusting to the globalization agenda. It signed agreements with the International Monetary Fund and the World Bank, along with other international institutions, on cooperation and assistance and strictly followed their advice. In 1990-s and early 2000-s Kyrgyzstan was often referred as an island of democracy and a star student of the IMF and World Bank. Actually, all the efforts failed flat. By 1995 the GDP of Kyrgyzstan shrank by half, making up just 50.6% to the level of 1990. The level of poverty soared to 60% (official data, while in reality it was even higher). The social reality caused series of destabilization in Kyrgyzstan, with the coups in 2005, 2010 and 2020. Despite all the hardships, before 2020 Kyrgyzstan never stepped aside of the neoliberal agenda. While after 2020 revolt Kyrgyzstan has started slow motion to a kind of its own “New Deal” with the policies it never did since 1990-s: (re)constructions of roads, factories, and electric networks restarted; construction of housing for policemen, military, teachers and doctors was declared; the government started giving non-collateral interest-free loans (one hundred thousand soms) to the poorest farmers in Kyrgyzstan. The government is trying to intensify foreign investment (for example, after signing border agreement with Uzbekistan, Uzbekistani car assembling, pharmaceutical and other factories are expected) and widen budgetary expenditures.

Within this paper we will discuss the factors that capacitated to the switch to such kind of policies, evaluate if these policies could be sustainable and analyze what outcomes the republic could expect as a result.