Foreign Trade Problems of Kyrgyzstan

This paper aims to explore export potentials of Kyrgyzstan and proposes possible measures to increase it. Comparative factor endowment estimations show that export production of Kyrgyzstan is labor-intensive. Therefore, promotion of labor-intensive sectors of the economy is important for growth of the export. Thus, determination and promotion of relatively advantageous sectors of the economy are most important measures. In particularly promotion of textile and processing industries are characterized as significant among other sectors of the economy. Development of export potentials necessitates special state support and advisory agencies. Further acceleration of integration process with other Eurasian economies is expected to positively contribute to growth of the export. However, recent socio-political developments in Kyrgyzstan have shown that stability and provision with security are fundamental factors for development of export potentials.

Multilateralism versus Regionalism in Eurasia: Theoretical Reasons of Choosing Sides for Kyrgyzstan

This paper asks whether Kyrgyzstan should take part in the newly established Customs Union among Belarus, Kazakhstan and Russia or in the World Trade Organization (WTO). From the start of the foundation of the new Customs Union there have been deep discussions among the proponents and opponents of organization. This issue attracted extra attention and interest because the new Customs Union includes non-members of the World Trade Organization such as Russia, Belarus, and Kazakhstan. In Addition, the new Customs Union, unlike previous regional trade agreements, has formed a supranational body –the Custom Union Commission - which will decide on Common External Tariffs. Kyrgyzstan is already a member country of WTO and is going to join the new Customs Union. How will this membership work for Kyrgyzstan in short and long-term period? Will the new Customs Union be substitutive or complementary to the WTO in the development of international trade of Kyrgyzstan? Which side would be more beneficial for Kyrgyzstan: membership to a regional Customs Union or to a multilateral WTO? This paper hopes to answer these main questions. This paper will have five sections. Section one will provide a brief introduction. Section two will analyze the development of regionalism and multilateralism in the region. In section three, theoretical compatibility of regionalism and multilateralism will be discussed. Section four will determine what can be proposed for the current situation of Kyrgyzstan according to selected theoretical literature. Concluding remarks will be given in last section.

Implications of the Global Financial Crisis on the Banking Sector in Eastern Europe and Baltic States

In 2008-09 the banking sectors of four Central and East European States and three Baltic States have experienced a large-scale financial crisis in the EU for the first time since becoming foreign-owned. Amongst the new EU member states Baltic States and Hungary were the worst affected economies. The paper first explores why the extent of crisis varied among these seven states by distinguishing major differences in the pre-crisis bank lending practices which reflect different macroeconomic developments and exchange rate policies in these states. Based on the analysis of bank performance indicators since 2008 and my interviews with representatives of major banks active in the region, the important role of foreign banks in mitigating the risks of financial contagion is outlined. The implication from the crisis is examined mainly from the perspective of the financial supervision and regulation in the enlarged EU. By inspecting the concrete experience of financial supervision authorities in the Baltic States the paper shows why the host country supervisors were not able to curb excessive lending and risk-taking by large Scandinavian banks. Since it is expected that the new EU regulatory and supervisory framework will reinforce the financial stability in the case of large cross-border banking groups, the paper addresses the issues in the financial crisis prevention, management are resolution in the new EU member states which will improve based on the new EU regulatory and supervisory framework for credit institutions.

An Evaluation of Human Development Index in Central Asian Countries

Economic development and growth had been the most important target among all goverments throughout the history. In this respect, Kazakhstan, Turkmenistan, Uzbekistan, Tajikistan and Kyrgyzstan in Middle Asian Region had chosen development as primary target in 20 years time after their independence. Human capital is the leading factor to maintain economic development and growth. Development and growth terms over which different meanings and concepts were imposed in time, necessitated several political economic alterations. Before 1970’s, increase in income had been sufficient criterion for the development of a government. But nowadays economic development incorporates factors such as life expectancy at birth, school enrolment ratio, literancy rate, gender discrimination, poverty alleviation, equal distribution of income beyond economic growth. Herewith this change political preference and priorities has started to differentiate. The aim of this study is to discuss human development index (HDI) data of 5 Middle Asian countries in 2010 and changes in HDI in years after their independence. Comparisan between Gross Domestic Product (GDP) and HDI rates are also performed within this analysis. This study consists of data of 5 Middle Asian countries between years 1990-2010. Basic, retrospective, illustrative library method is used as the study method. In conclusion, we find that increase in GDP did not reflect over HDI in Middle Asian Countries within 20-years period.

An Analysis of Differences in Firms’ Perception of Banks based on Sectors and Number of Monthly Transactions

In this study, it was aimed to put forward the perception differences of banks, one of the most important tool of the capital market which is a political tool to develop financial improvement on owners and managers of firms. The data was collected by means of face to face meetings with the managers of 520 companies from manufacturing, trading and service sectors, randomly selected from Adana, Mersin and Gaziantep provinces. The relationship between the perception of banking services and the number of monthly transactions and provinces with the banks with which their firms have business activities was studied by analyzing the collected data and doing the frequency, percentage and ANOVA tests. According to the results of the analysis, even though there was no difference in terms of sectors, there was seen an important difference in terms of the number of monthly transactions and provinces. The satisfaction of different products and services for the firms having relatively fewer number of monthly transactions is also crucial today, when the customer satisfaction is of great importance.

The Importance of Unemployment Insurance in Underdeveloped Countries

In the absence of unemployment insurance, unemployment descends over like a nightmare on the personnel in business life and constitutes his/her utmost anxiety. Particularly in underdeveloped countries where population increase is rapid whereas speed of industrialization is back, unemployment introduces with itself a good number of adverse effects as well. On accounts of these reasons there is a substantial need for Unemployment Insurance which is a state-enforced social security in order to meet maintenance and living expenses of the dependant personnel whose active business life has been, due to socio-economic accounts, terminated against their will. Indeed, Unemployment Insurance not only provides fiscal support to the worker but it also guarantees future employment and gains collective bargaining power to the person. By means of an effective job-oriented training and effective operating job-placement system the insurance system also offers a chance of obtaining a new job to the unemployed. In other terms “it provides the power and opportunity to acquire in better conditions a new job with appropriate payment answering to the competency and skill of the unemployed”. Unemployment insurance that is desperately needed to make people live happy under the security of job must be, as it is the case for the rest of other countries as well, established in underdeveloped states as well.

Ukraine Pension System and Financial Markets: Conceptualization Problems

The paper analyzes some aspects of Ukrainian pension system formation. All its three levels taken as a whole are a real source for the formation of domestic investment resources and implementation of their potential through financial market instruments. At the present stage relationship of these two institutes is pronounced in the frameworks of non-state pension funds. Implementation of the accumulative level of pension system has only to accelerate processes at work. Investigation is focused on the problems of integrating pension system investment resource into financial market infrastructure. It is noted that in the current conditions infrastructure of domestic financial market is being formed. Its instruments are developed and are functioning irregularly. However, there exist general problems that require their solution. They are related to insufficient operational capacity and efficiency of financial market regulating mechanism and other factors. Analysis of the quality of implementation of financial market basic macroeconomic function associated with redistribution of pension savings allowed us to make conclusion on the incompatibility of the achieved level of its development with the current needs adjusted for pension reform. Proposals for improvement of the concept of pension system and financial market along the lines of their harmonization and enhancement of the functioning efficiency in the context of social-economic development of Ukraine are worked out.

An Analysis of Structural Changes in Kyrgyz Economy using Input-Output Technique (2005-2009)

Structural changes in economy become the important goal of economic development in the developing countries. During the ongoing globalization process, the successful execution of special analysis and approaches caused the growing interest in macroeconomic planning and development policies. In this context, input-output analysis is emerging as an alternative research method among the other economic planning methods. The purpose of the present paper is to describe the structural changes in production, compare the structural parameteres of production for the years 2005-2009, investigate the sources of differences and give recommendations that will bring solutions to the problems. Research is based on input-output analysis and used input-output tables prepared for the years 2005 and 2009 by The National Statistical Committee Kyrgyz Republic. Industrial structure dependency, production techniques, efficiency of input usage, were calculated in this paper. The results are as follows: there were found some sub-sectors in agriculture, manufacturing and service sector, on which economy depends on; equal efficiency of production techniques and input usage. It is notable that for achieving economic growth, economy needed investments to stimulate the production capacity, which strengthening inter-sectoral relationship and stable macro-economic planning.

A Look at the Perceptions of the Turkish Youth towards Shangai Cooperation Organization from a Marketing Perspective

In search of new markets and trade partners after its thrill for European Union has faded, Turkey began to look at its east recently. Having strong ties with many countries in Central Asia due to its cultural and historical ties, Turkey is a bridge between Europe and Asia. Due to its importance and successful historical development, Shanghai Cooperation Organization (SCO) is Turkey’s one of few options. In order to build closer trade relations between Turkey and members of the SCO, it’s better to know what Turkish people, especially youth know and think about the Organization. This pioneer empirical study, by examining a sample of Turkish university students’ knowledge and attitude towards SCO, is a first step of building the relations between the Organization and Turkish people and Turkish youth. Findings indicate that Turkish youth examined have positive attitude towards SCO compared to other alternative integrations and organizations. Besides, they think that a stronger SCO will be in favor of Turkey both economically and politically. Also, gender differences seem to exist like women’s tendency towards North American and South American integrations.

The Current State of Audit Services in the Kyrgyz Republic

Studied the organizational aspects of the formation and current state of audit services for the whole country, as well as by region. Problems of the quantitative growth of skill-certified auditors and its impact on improving the quality of the audit. Explored public knowledge about the necessity and usefulness of the audit, and its influence on the formation of national capital in total capital of real sector of the economy. The role of audit in the development of financial and economic activities of businesses. Determined the influence of audit on the transition economy, reviewed its present contradictions, acute legal problems and prospects of development.