Socio – Economic Reasons of Poverty in Kyrgyzstan

Actual number of the world´s population is about 6.8 billion people. And from these almost 7 billion of people, 5 billion are living at levels of poverty. They do not have the full access to the basic human needs. From shortage of the important human need, food, suffer almost 1 billion people in the world (Powledge, 2010) The Central Asians republics, since their independence from the former Soviet Union, have problem with rising poverty, malnutrition and food insecurity. At macro level, the national incomes of the republics have been declining whole the 90s and their GDPs belong to the lowest in the world. Directly in Kyrgyz republic remains poverty an actual problem. It was estimated that 40 % of the population lived below the poverty line 9.1 % lived in extreme poverty (Reidhead; Babu, 2000).

Central Asian is a region with its special poverty situation. It is similar like in most post – soviet republics in the world. The collapse of Soviet Union in 1991 caused a hares rapture at all levels. The whole Soviet Union was one big market where countries were producers and exporters. Not anymore - after the independence, the Central Asia countries were not able to continue in these market traditions. Each country has chosen to produce the products just for themselves. It caused the market changes that led to economic instability and the countries have suffered by in terms of food security. In the case of export problem, Central Asian countries were traditionally exporters of cotton and wheat for other Soviet republics. But after independence the demands for these products almost diminished and it led to the jobs reduction (Reidhead; Babu, 2000).

These political and economical changes dramatically reduced income of population. Many families in remote rural areas had to rely on their own resources trying to secure basic needs. In Soviet era, the country was supplied by commercial agriculture inputs like seeds, fertilizers, pesticides. This support was disrupted and a lot of rural people are not able to afford them anymore (Shigaeva, 2007) and without them improving agriculture is almost impossible. Although the Kyrgyz government initied agriculture reform to improve efficiency and productivity of agriculture, the situation is still not solved. The reform consists mainly from transforming collective enterprises into private ownership. But still a large percentage of land is in state hands. Many farmers sold their land away because they actually do not use it, but they need to pay taxes from it. Large amount of soil is not irrigated enough and access of the poorer households to this land is very limited. From this purpose many households prefer to invest into the livestock, the prices for meat are higher. But the livestock breeding can be very problematic in the future. The pastures are still state owned and in principle accessible to all. But in theory they are regulated including leasing contracts and certificates. There is almost no coordination from the state and information about numbers of animals is insufficient. There is need of institutional support crucial for regulating and managing access to natural resources and implementation of agricultural policies (Shigaeva, 2007). However the welfare of the population is very sensitive to state social support policy. Not just rural household are affected by scarcity of state involvement. Also other fields need some regulation and improvements. There is almost no social system in Kyrgyzstan. There would be no economic growth without reducing the inequality by social assistance. The most affected groups are low educated people, woman, people with disabilities, individuals from rural and depressed areas, young people and migrants (Bernabè and Kolev, 2005) (In this case is more working the foreign aid. Many international organizations have project in Kyrgyzstan to support woman involvement into the labor market, migrants rights and children education). International organizations also helped Kyrgyzstan with supporting development of small and medium enterprises and loans providing. These improvements really help to the people.

It is necessary to improve the situation of Kyrgyz state apparatus. If the state does not work properly, the situation cannot globally improve. There can be some economic growth, even some social security from the international organization but no sustainable development. Before fixing the “wholes” in Kyrgyzstan state apparatus, there is unnecessary to provide some global financial help like in 90s. The political situation in whole Central Asian region is very tense. Etnical problems caused by Russian setting of boarders are coming into foregroung, specifically in Kyrgyzstan. The violence opened a Pandora's Box of nationalism, polarizing the different ethnic groups. And there should be more of them, mainly around Fergana Valley. These problems should be also caused by scarcity of water. The problem already caused conflicts between Turkmenistan and Uzbekistan for Amudarja River, in future can be expected that also Afghanistan would like to get more water, because now is almost excluded. And also Islam in Central Asia is increasing and some radical parties are artificially implemented into Central Asia region, also in Fergana Valley, the important transit way for drugs in the region. Kyrgyzstan is in field of interest of Russia, China and USA (the transport point to get to Afghanistan), has one of the highest corruption in the world. It will cost a lot of effort to improve the political, economical and culture situatuion in the country to get foreign investment, crucial for the economic growth, to the country.

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