ABSTRACT
On 31 August 1991 the Kyrgyz Supreme Soviet voted to declare independence from the USSR. This stimulated the political development that changed the former Soviet Socialist Republic (SSR) into the independent Kyrgyz Republic. The constitution was adopted on 5 May 1993 and defined the form of government as a democratic Republic.1 This provided for a parliamentary system of government which, despite some subsequent periods of political instability, ensured that the Kyrgyz Republic was seen (for the first half of the 1990s) as the most liberal and reform-minded of the Central Asian states. There is no doubt that reform in the Kyrgyz Republic proceeded furthest of all the Central Asian countries. An ambitious agenda of economic reform ensured that economic transition was, in part, effective. Prices and foreign trade were liberalised, privatisation advanced significantly, the financial system was strengthened and public sector reform progressed steadily. However, the quality of reforms has been patchy and some intended reforms have not been implemented fully. The economy is vulnerable to external shocks and its prospects for growth are limited by heavy debt burdens.
