Foreign Direct Investment in Kyrgyzstan - Реферат

8, 13.) Despite the difficult position that confronted Kyrgyzstan because of the high degree of its dependence on the Soviet economy, its reforms followed the path of «shock therapy.» Simultaneously, the government of Kyrgyzstan encountered problems that were associated with the assertion of sovereignty, the need to pursue a policy aimed at macroeconomic stabilization and economic reform, and the establishment of a new posture with respect to foreign policy and foreign trade. Data on foreign direct investment (FDI) in Kyrgyzstan are reported by the National Bank of the Kyrgyz Republic (NBKR), based on data collected by the National Statistics Committee (NSC). FDI data are collected from enterprise surveys on joint-ventures and foreign-owned non-financial enterprises conducted by NSC. However, FDI data on the banking sector are collected by NBKR through the international transactions reporting system, which was introduced in 1997. A new «Law on Investments», enacted in 2003, provides the legal framework applicable to activities of investors within the country. It provides fair and equal treatment for investors and the protection of their investments in Kyrgyzstan. The law also regulates legal relationships between investors and governmental bodies of Kyrgyzstan, allowing investors to resolve any disputes that may arise through international arbitration proceedings. Ownership of land by foreign investors is restricted. However, land can be leased. Kyrgyzstan has established four free economic zones under the 1992 Law «On Free Economic Zones in the Kyrgyz Republic», which was amended in 2002. Foreign investors may establish wholly foreign-owned enterprises or joint-ventures, acquire shares in existing entities and participate in privatization programmes. In 2001, the Government established the Investment Promotion Centre (IPC) under the State Committee of the Kyrgyz Republic on State Property and Direct Investments. IPC acts as a one-stop shop to assist foreign investors in investing in the country. It provides information on investment opportunities, assists foreign investors to contact interested partners for project implementation, and provides administrative facilities in obtaining permits, licenses and registration certificates. The Consultative Council on Foreign Investment was established in 2001 by the Decree of the President. The Council, chaired by the President, provides a platform for investors and the Government to exchange views and discuss policy implementation and related measures in improving the investment climate of the country. Foreign Direct Investment (FDI) (millions of US$) FDI 2000 2001 2002 Inflows -2 5 -12a Outflows 5 6 6a FDI stock. Stock data after 2001 are estimated by adding flows Inward 439 427 415a Outward 33 39 45b FDI flows to Kyrgyzstan were stagnant at US$ 5 million during 2000-2002 after they peaked in 1998. Outward FDI flows during 1999-2001 were at the similar level of US$ 5.6 million. Inward FDI stock tripled from US$ 144 million to $415 million between 1995 and 2002, while outward FDI stock grew marginally during 1998-2002. Summary of FDI Variable Inward Outward 1. FDI flows, 1998-2002 (annual average) 13.0 14.2 2.