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National Council for Sustainable Development of the Kyrgyz Republic

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National Council for Sustainable Development of the Kyrgyz Republic National Council for Sustainable Development of the Kyrgyz Republic NATIONAL SUSTAINABLE DEVELOPMENT STRATEGY FOR THE KYRGYZ REPUBLIC For the period of 2013-2017 1 TABLE OF CONTENTS PART ONE: TO SUCCEED AS A STATE AND TO ESTABLISH FOUNDATION FOR SUCCESSFUL DEVELOPMENT OF THE KYRGYZ REPUBLIC .................................................. 5 Chapter 1. KYRGYZSTAN AND MODERN CHALLENGES ........................................................... 5 1.1. Nation without priorities or twenty years in survival mode ................................................ 5 1.2. Expectations and realities of the post-April period ............................................................ 6 1.3. National Development Project – Strategic Vision .............................................................. 7 1.4. Five constructive years (2013-2107): to succeed as a state and lay the foundation for successful development of Kyrgyzstan ..................................................................................................... 8 Chapter 2. ESTABLISHING A STATE GOVERNED BY THE RULE OF LAW AND ENSURING SUPREMACY OF LAW ................................................................................................................. 10 2.1. Strengthening of the legal system as a basic prerequisite for creating a country governed by the rule of law. ............................................................................................................................................ 10 2.2. Ensuring stability of the Constitution and laws, implementation of their potential .................... 11 2.3. Respect to the law and increase in legal culture of citizens ......................................................... 12 2.4. Ensuring free democratic elections .................................................................................................. 13 2.5. Combating corruption ........................................................................................................................ 14 2.6. Increasing effectiveness and ensuring transparency of governance Strengthening cooperation between the government and the civil society ................................................................. 16 2.7. Development of local self-government ............................................................................................ 18 2.8. Reforming the judicial branch, ensuring that its activities are governed by the rule of law ..... 20 2.9. Reforming the law-enforcement branch, ensuring that its activities are governed by the rule of law ................................................................................................................................................................ 24 2.10. Establishing a comprehensive system of national security ........................................................ 25 2.11. Ensuring military security ................................................................................................................ 26 2.12. New understanding of foreign policy ............................................................................................. 27 Chapter 3. UNITY OF THE NATION AS A PREREQUISITE FOR PRESERVING STATEHOOD AND SUCCESSFUL DEVELOPMENT ......................................................................................... 30 3.1. Ensuring inter-ethnic accord through increasing unity of the people .......................................... 30 3.2. Optimizing relations between the state and denominations and among denominations ......... 32 3.3. Ensuring freedom of speech and formulating state information policy ....................................... 34 Chapter 4. RESOLVING SOCIAL ISSUES AND CHALLENGES ................................................. 36 2 4.1. Reform of the Education and Science System .............................................................................. 36 4.2. Health Care Reform ........................................................................................................................... 39 4.3. Increasing effectiveness of social protection and pension coverage .......................................... 41 4.4. Improving cultural environment, developing sports and youth initiatives ................................... 42 4.5. Increasing the role of the family and gender development .......................................................... 46 Chapter 5. ENVIRONMENTAL PROTECTION TO ENSURE SUSTAINABLE DEVELOPMENT . 48 5.1. Environmental security and objectives of economic growth ........................................................ 48 5.2. risk reduction and improvement of preparedness for emergencies ............................................ 51 PART TWO: ECONOMIC DEVELOPMENT PRIORITIES FOR THE KYRGYZ REPUBLIC FOR 2013-2017 ..................................................................................................................................... 54 Chapter 6. ECONOMY AS PRINCIPAL DRIVER OF SOVEREIGNTY AND NATIONAL SECURITY .................................................................................................................................... 54 Chapter 7. SUSTAINABLE ECONOMIC DEVELOPMENT AND MACROECONOMIC STABILITY58 7.1. Monetary Policy .................................................................................................................................. 60 7.2. Fiscal policy and public debt management ..................................................................................... 61 7.3. Foreign Trade Policy .......................................................................................................................... 62 Chapter 8. IMPROVING BUSINESS ENVIRONMENT AND INVESTMENT CLIMATE ................ 64 8.1. Reduction in the informal economy ................................................................................................. 64 8.2. Tax and Customs policy .................................................................................................................... 64 8.3. Investment Policy ............................................................................................................................... 66 8.4. Small and Medium Enterprise Development .................................................................................. 67 8.5. Managing State Property and Public-Private Partnership ............................................................ 69 8.6 Development of Intellectual Property and Innovations .................................................................. 70 Chapter 9. FINANCIAL SECTOR DEVELOPMENT .................................................................... 72 9.1. Banking sector .................................................................................................................................... 72 9.2. A project to create “long-term money” ............................................................................................. 78 9.3. Micro-financing ................................................................................................................................... 79 9.4. Insurance Activity ............................................................................................................................... 81 9.5. Private Pension Funds ...................................................................................................................... 83 9.6. Securities market ................................................................................................................................ 84 Chapter 10. DEVELOPMENT OF STRATEGIC INDUSTRIES OF THE ECONOMY ................... 86 3 10.1. Agri-industrial sector ........................................................................................................................ 86 10.2. Energy ................................................................................................................................................ 91 10.3. Mining ................................................................................................................................... 94 10.4. Transport and communications ...................................................................................................... 98 10.5. Tourism and services industry ...................................................................................................... 100 Chapter 11. ECONOMIC DEVELOPMENT OF THE REGIONS ................................................. 102 Chapter 12. FROM DISPERSING INVESTMENTS TO THEIR CONCENTRATION (NATIONAL PROJECTS) ............................................................................................................ 104 EXPECTED RESULTS ............................................................................................................... 107 4 PART ONE: TO SUCCEED AS A STATE AND TO ESTABLISH FOUNDATION FOR SUCCESSFUL DEVELOPMENT OF THE KYRGYZ REPUBLIC Chapter 1. KYRGYZSTAN AND MODERN CHALLENGES In recent years, the social, economic and political life of Kyrgyzstan has been undergoing important changes that shape the future of the country. The people have paid a high price for the opportunity to build on our land an independent and strong, prosperous nation. In the latest history of Kyrgyzstan the first steps towards restoring statehood and establishing our own economy and reviving our national culture were made in the XX century, under the former Soviet Union. Our people have achieved a great deal in the Soviet period of development, but
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