2 № December 2005 - January 2006

Valentin Bogatyrev: TABLE OF CONTENTS

Kyrgyzstan-Kazakhstan: how to build new “Today, any country is relations with an old friend incorporated into a great Kumar Bekbolotov ...... 2 variety of connections, and building a unidirectional Topical issues of Kyrgyzstan’s foreign policy BRIEF KYRGYZSTAN policy would mean to lose Roundtable proceedings ...... 10 one’s sovereignty.” - p. 14 The dangers of property redistribution Emil Umetaliev: Kumar Bekbolotov, Shairbek Juraev ...... 17

“Unprotected business Guest of the issue: Emil Umetaliev ...... 21 does not have confi dence in further development, and Constitutional changes: issues and is set to withdraw capital preconditions from the country.” - p. 22 Roundtable proceedings ...... 25

Civil service today: problems and solutions Esenbek Urmanov ...... 39

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№ Kyrgyzstan-Kazakhstan: how to build new relations with an old friend

HOW TO BUILD NEW RELATIONS WITH AN OLD FRIEND

If before, the calm, diplomatic facade concealed turbulent negotiations, if the mutual assurances of eternal friendship only disguised a chaotic policy of ad-hoc problem solving, now more than ever the day’s agenda should include Kyrgyzstan developing a new strategy in relation to the region’s superpower - Kazakhstan. KYRGYZSTAN BRIEF KYRGYZSTAN Kumar Bekbolotov1 due to colossal energy resources and purposeful economic policies, ruled by Presidential elections in Kyrgyzstan an able and authoritarian leader who and Kazakhstan were perhaps the most fi rmly defends his right to strong lead- important events in the region in 2005. ership. While in Kyrgyzstan they took place af- For today’s political elite of Kyr- ter the “Tulip Revolution,” confi rming gyzstan, Kazakhstan is becoming a the legitimacy of new authorities for the strategically important state. next fi ve years, in Kazakhstan the in- Kyrgyzstan has begun to realize cumbent leader, Nursultan Nazarbaev, that, despite maneuvering amongst the claimed a massive victory, gaining the world’s superpowers (US, Russia and right to rule for another seven years. It China), in geopolitical dimensions it is should be mentioned here that the Ka- above all dependent on Kazakhstan. zakh leader’s election campaign placed For instance, any blocking of the trans- a strong emphasis on critiquing Kyr- portation routes that Kyrgyzstan’s gyzstan’s situation… economy relies on may lead to the iso- The latest events related to Kyr- lation of the country. One region of Kyr- gyzstan’s northern neighbor (expansion gyzstan (Talas) is completely depend- of Kazakh businesses in Kyrgyzstan, ent on Kazakhstan, and could soon be- ill-treatment of work migrants, closure come an appendage of Kazakhstan’s of borders, etc.) demonstrate that Kyr- Jambyl region with regard to trade and gyzstan strongly needs to shape its raw materials. “Kazakhstan policy.” Within Central Asia, Kyrgyzstan is If before, the calm, diplomatic facade forced to seek an alliance with the re- concealed turbulent negotiations, if the gional superpower, which Kazakhstan mutual assurances of eternal friendship is becoming. The USA, Russia and only disguised a chaotic policy of ad- China will defi nitely remain key players hoc problem solving, now more than in the region, but the Kazakh infl uence ever the day’s agenda should include can be felt with increasing strength in Kyrgyzstan developing a new strategy the daily life of Kyrgyzstanies. in relation to the region’s superpower - It is no secret that the political elite Kazakhstan. of Kyrgyzstan who came to power af- ter the March events are competing Mutual Perspectives: amongst themselves to gain the favor Kazakhstan In The of Nursultan Nazarbaev, frequenting the Eyes Of Kyrgyzstan southern and northern capitals of Ka- zakhstan. Top offi cials regularly praise In the eyes of many Kyrgyzstanies, the neighboring country’s president. Kazakhstan is fi rst of all a country that Some of the Kyrgyzstani politicians are has achieved serious economic growth discussing the possibility of creating a 1Kumar Bekbolotov is country director of the Institute for War and Peace Reporting in Kyrgyzstan. He holds MA in Political Science from Central European University. -2- 2 № Kyrgyzstan-Kazakhstan: how to build new relations with an old friend

confederation with Kazakhstan. political opponents of the previous re- In late April, on his fi rst state visit gime. Furthermore, so far there has abroad as the interim president, Kur- been no convincing denunciation of the manbek Bakiev went to Kazakhstan rumors that Kazakh special police force and met with Nazarbaev. Acting vice units participated in the March 20, 2005 Prime Minister Daniar Usenov went on assault of the main government build-

the trip as well. ing in Jalalabad, occupied at the time BRIEF KYRGYZSTAN In late July, acting vice Prime Minis- by the opposition forces. ter Adakhan Madumarov had important For Kyrgyz society, the Kyrgyz au- meetings in Almaty to save the tourism thorities’ clear readiness to make season in Issykkul. In mid-June Daniar large political concessions to Kaza- Usenov participated in an international khstan is an alarming trend that signi- business conference of the Asian So- fi es strengthening Kazakh infl uence. In ciety in Almaty, where he announced addition, there are fears that having a his intention to create a Council of For- strong enough infl uence on Kyrgyz pol- eign Investors in order to protect their itics, Kazakh capital can actively lobby interests in Kyrgyzstan. Within a short its interests and affect the results of key period, Prime Minister Felix Kulov vis- appointments in government and par- ited Kazakhstan twice, visiting Astana liamentary elections. in October and Taraz in December. Such fears are aggravated by the fact This attention shows how much that in both countries, the personality stronger a role Kazakhstan plays for element of internal politics traditionally the new Kyrgyz political elite. Yet, more has a strong infl uence on foreign policy and more often issues are raised of po- decisions. During the period of “mari- tential risks and dangers coming from tal relations” between the presidential Kyrgyzstan’s northern neighbor. families of Kazakhstan and Kyrgyzstan, In political dimensions, there is a there was a short but noticeable phase great risk of gradual cooption and/or in- of rapprochement, when many issues, tegration of Kyrgyzstan’s political elites such as the delimitation of the Kazakh- in the event of the creation of some Ka- Kyrgyz border, were solved more eas- zakh-Kyrgyz political arena inside Kyr- ily. In 2001-2002, after the dynastic gyzstan. The idea of joining with Ka- marriage failed, the relations cooled. zakhstan in a confederation is closely Anti-Kazakh feelings were raised in associated with the development of Kyrgyzstan, and limitations were intro- such an arena. At the same time, the duced in Kazakhstan on Kyrgyz transit fact that Kyrgyzstan risks losing its in- and imports, with a 200% increase of dependence frightens many supporters tariffs.1 of such regional integration. Considering Kyrgyzstan’s inconsist- The close relationship of Kyrgyzstan’s ent history in offi cial positions on many fi rst presidential family to Kazakhstan critical incidents related to Kazakhstan (involving kinship ties with the presiden- (such as the secret deportation of Kyr- tial family of Nazarbaevs in 1998-2001 gyz citizens in 2002, accompanied by and the privileged role of Adil Toigo- unlawful intrusion into Kyrgyz territory, nbaev, the Kazakh son-in-law of the as well as the scandal around the con- Akaevs, in Kyrgyz business until 2005) frontation of the Kyrgyz and Kazakh already caused many fears among the wholesale markets Dordoi and Barys),

1Anders Oslund, Kyrgyz Republic: Towards Economic Growth through Expansion of Export, UNDP report (March 25, 2002) avail- able at http://www.undp.kg/russian/publications.phtml?l=1&id=39 -3- 2

№ Kyrgyzstan-Kazakhstan: how to build new relations with an old friend

the new authorities of Kyrgyzstan may tions (Alians Kapital), industry (Kad- in the future fi nd themselves hostage to amjai antimony combine, Kant slate a diplomatic position that is too submis- and cement combine, and many indus- sive. trial enterprises in the Chuy region), In economic dimensions, Kyrgyzstan media business (NBT TV station) and would hope to be more successful in tourism (mainly in Issykkul).

KYRGYZSTAN BRIEF KYRGYZSTAN benefi ting from the positive effects of Expansion of Kazakh capital has Kazakh economic growth. Economic been characterized by the entrance of indicators of Kazakhstan are impres- strong fi nancial-industrial groups (FIG) sive in comparison with Kyrgyzstan. A from Kazakhstan into the Kyrgyzstan typical point of comparison is the level market. Due to their fi nancial power of average monthly salary. In October in Kazakhstan, these FIGs sometimes 2005, the nominal monthly salary in have a stronger infl uence on certain Kazakhstan was 37 521 tenge (280 US political processes than the entire state dollars).1 In Kyrgyzstan, this fi gure in apparatus of Kyrgyzstan. October 2005 was 2620 soms, or about According to the Eurasian Center for 64 US dollars.2 Political Research, one can fi nd the vis- Therefore, a number of apprehensions ible and invisible presence of many in- can be pointed out in relation to the fl uence groups and FIGs in Kyrgyzstan.5 expansion of Kazakh capital into They include, but are not limited to, the Kyrgyzstan, the inhibition of Kyrgyz group of Dariga Nazarbaeva/Rakhat trade and economic interests, and Aliev (former chief prosecutor Azimbek the gradual “fi nancial colonization” of Beknazarov once stated that Dariga Kyrgyzstan’s weak economy. Nazarbaeva owns 32% of the Kant In the fi rst six months of 2005, Ka- cement and slate combine6), Timur zakh fi nanciers invested 14,1 million Kulibaev (the recent vice president of dollars in Kyrgyzstan, which constitutes Kazmunaigaz and Nazarbaev’s son- 71% of all direct foreign investment in in-law – through daughter enterprise that period.3 According to the Kyrgyz limited company KyrKazGaz7), the national statistical committee, in the group of Nurzhan Subkhanberdin fi rst nine months of 2004, investors (Kazkommertsbank – working in from Kazakhstan invested 24,4 million Kyrgyzstan through its only daughter dollars in the Kyrgyz economy, out of bank abroad – Kazkommertsbank- the total sum of 32,4 million dollars that Kyrgyzstan). In addition, Alexander came from all CIS countries.4 Mashkevich of the Eurasian Industrial Kazakh business fi gures prominently Association, originally from Bishkek, in banking (Kazkommertsbank, Kha- is a very infl uential fi gure not only in lykbank, ATF-Bank), telecommunica- Kazakhstan, but also in Kyrgyzstan,

1 Agency of the Republic of Kazakstan for Statistics through the website of the Embassy of Kazakstan in the Russian Federa- tion, available at http://www.kazembassy.ru/economics/social/ 2 National Statistical Committee of the Kyrgyz Republic, Poslednie ekonomicheskiei i fi nansovye dannye ot 18 dekabria 2005 goda, available at http://www.stat.kg/Rus/Home/hlatest.html#Top1 3 Interview of the ambassador of the Republic of Kazakstan to Kyrgyzstan Umarzak Uzbekov, Nashi Investitsii Mogut Uvelichit- sia v Razy, by Renata Esambaeva (Obshestvenny Reyting, December 15, 2005) 4 Brief note on social economic development of the Kyrgyz Republic for January-November 2005, dated December 25, 2005 (Ministry of Finances of the Kyrgyz Republic) available at http://www.minfi n.kg/news.php?fi len=news583 5 Infl uence Groups in the Power and Political System of the Republic of Kazakstan, Eurasian Center for Political Research and Agency for Social Technologies “Epicenter” (published by the Agency of Political News of Kazakstan on November 29, 2005), available at http://www.apn.kz/?chapter_name=advert&data_id=87&do=view_single 6 Information agency AKIpress, October 6, 2005 http://www.akipress.org/_ru_news.php?id=22653 7 National Company Kazmunaigaz http://www.kmg.kz/main.php?page=inc/posted&mid=25&sid=237&type=subm&showm=25

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even though he does not have any interests. In the debates on ratifi cation declared assets in Kyrgyzstan. of this agreement, parliamentarians Aggressive infi ltration of FIGs into the wanted to include in it the mechanisms Kyrgyzstan economy, followed by the for solving the issues of labor migration takeover of key, strategically important and trade and economic cooperation, spheres of industry, makes Kyrgyzstan while the administration stressed the vulnerable to and dependent upon agreement’s provisions relating to polit- BRIEF KYRGYZSTAN economic leverages. For instance, ical and military-technical cooperation, investment into the Kyrgyz part of the deliminatation of state borders, and im- Naryn-Syrdaria cascade of hydroelectric provement of legislative cooperation.1 stations would secure shareholder control over the water resources and Mutual perspectives: energy systems, not only in Kyrgyzstan, Kyrgyzstan for Kazakhstan but also in some of the major areas in Central Asia. Kazakh investors have A survey of the main points of politi- shown serious interest in the possibility cal and economic interaction between of investing in reconstruction of the the two countries would be incomplete Kambarata hydroelectric stations. without looking at how the image of Kyr- In addition, there are fears that gyzstan is projected in Kazakhstan. Kyrgyzstan may become a “laboratory” In the eyes of Kazakh society, Kyr- for economic tests by Kazakh gyzstan is a generally friendly country, businesses, tests which may not necessarily be successful. Expansion where systemic economic crisis result- of Kazakh capital in Kyrgyzstan also ed in a political crisis, culminating in a entails the supplanting and exodus of forced change of regime. signifi cant (for Kyrgyzstan) amounts of It should be noted outright that Kyr- Kyrgyz capital to Kazakhstan (mainly to gyzstan is of interest to Kazakhstan Almaty). in the economic sphere as a coun- Pressure on Kyrgyz trade and try where more or less similar eco- economic interests produces worries nomic reforms have been conducted, in several directions – raising tariffs on and the level of compatibility between transit of goods through Kazakhstan, the two economies is high. This is which renders Kyrgyz production and the reason why some of the emerg- export to other countries (Russia above ing Kazakh capitalists use Kyrgyzstan all) unprofi table; setting quotas on as a starting point for refi ning their Kyrgyz goods in Kazakh markets, for foreign experience, buying up shares instance cement; and discriminatory of promising Kyrgyz companies and policies against labor migrants from investing in restoration of profi table Kyrgyzstan, amplifi ed by political enterprises. apprehension on the part of Kazakh In Kazakhstan, a worrisome fact is authorities. that the high profi ts of the oil and gas A telling example of Kyrgyzstan’s sector have a tendency to “heat up” fears was the refusal of the Kyrgyz par- the economy, leading to the “Dutch liament to ratify in December 2004 the disease.” This is why the economy and Kyrgyz-Kazakh agreement on allied infrastructure of northern Kyrgyzstan, relations, which many deputies called most similar to that of Kazakhstan, has “toothless” in terms of defending Kyrgyz recently been attracting more and more

1 Salamat Alamanov and Lidia Imanalieva, Kyrgyzstan-Kazakhstan: Novy Uroven’ Otnosheniy (Slovo Kyrgyzstana, January 11, 2005, №2).

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№ Kyrgyzstan-Kazakhstan: how to build new relations with an old friend

capital from Kazakhstan. in Kyrgyzstan. There is a growing understanding Events in neighboring Kyrgyzstan, in Kazakhstan that in the long run, in with which Kazakhstan shares many the epoch of globalization, no single similarities (mentality, language and country can develop successfully in political culture), except for the level of isolation, and poor neighbors will always economic development, have had a affect the situation inside Kazakhstan. KYRGYZSTAN BRIEF KYRGYZSTAN double effect. First, the Kazakh political Considering the fact that the economies opposition was extremely interested in of Uzbekistan and Turkmenistan have the example of a more or less non-vio- not adapted well for open market lent regime change. Right after the relations, Kyrgyzstan is becoming the March events, Kyrgyzstan was visited most convenient economic partner for by prominent representatives of the Kazakhstan in Central Asia. Kazakh opposition, who wanted to However, dissonance of political pri- study on site the successful experience orities is preventing full realization of the of the “Tulip Revolution.” potential for economic cooperation. In Second, pre- the opinion of Nurbolat Masanov, presi- For the average cisely because Kazakh citizen, dent of the Kazakhstan association of of this interest, it political sciences, “for Kazaks, Kyr- Kyrgyzstan is proved very re- now strongly as- gyzstan is a fraternal country, events in warding for the sociated with which are taken to heart by Kazakh so- Kazakh ruling elite post-revolution- ciety, but the events in Kyrgyzstan are to professionally ary looting, polit- interpreted differently by different politi- confront the Kyr- ical contract kill- 1 cal forces in Kazakhstan.” gyz case to fright- ings, and econom- Before the March events in Kyr- en their elector- ic decline result- gyzstan, discussion of potential threats ate. Throughout ing from endless demonstrations. for Kazakhstan that emanate from Kyr- the summer and gyzstan focused more on trans-bor- fall of 2005, Kazakh authorities dis- der, geopolitical threats – radical Is- seminated propaganda for stability, de- lamic groups (after the Batken events crying the “Kyrgyz coup” as a clear il- in 1999-2000), international terror- lustration of a negative outcome. In the ism (especially after the explosions in eyes of an average citizen, Kyrgyzstan Osh and Bishkek), organized crime, is now strongly associated with post- drug traffi cking, and biological threats revolutionary looting, political contract (strains of dangerous infectious dis- killings, and economic decline resulting eases like SARS). Military maneuvers from endless demonstrations. As Ka- on the southern edges of Kazakhstan zakh observer Sergey Duvanov said, were conducted to calculate the possi- “common people have an impression ble consequences of invasion by large that there is no order in Kyrgyzstan, insurgent groups through the Kazakh- and that things went so badly that peo- Kyrgyz border and mass exodus of the ple are fl eeing from the country.”2 population from Kyrgyzstan. In the opinion of Masanov, in political After the March events, the attention dimensions, Kyrgyzstan is a “competi- of the Kazakh authorities and society tive” country for Kazakhstan, which in shifted to the risks and dangers condi- addition to economic leadership has se- tioned by the internal political situation rious claims to leadership in the sphere 1 Interview for the Institute for Public Policy, December 28, 2005. 2 Interview for the Institute for Public Policy, December 29, 2005.

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of democratic reforms. Such was true khstan, while economic reforms have for both the Kazakh authorities and the already resulted in tangible results. opposition. In March 2005, the most Prevalence of politics over economics fearful thing was that after turning into in Kyrgyzstan and economic pragma- a radically democratic republic, “Kyr- tism over politics in Kazakhstan will in- gyzstan would become some type of a evitably lead to different understanding

mirror, in which Kazakhstan would see of bilateral issues and posit hard ques- BRIEF KYRGYZSTAN all its negative characteristics, which tions. would be visible to the international In Berlin in spring 2005, the opposi- community as well.” tion forces of the Central Asian coun- However, the ensuing developments tries held a founding conference of the in Kyrgyzstan have strongly decreased Central Asian Democratic Congress. In apprehension by the Kazakh political summer, the second meeting of the re- elite that Kazakhstan will have a com- gion’s opposition activists was held in petitor in the struggle for the image Warsaw. After that, rumors were circu- of the most democratic state in Cen- lating that Bishkek would become the tral Asia. Nevertheless, in Freedom base for revolutions and preparations House’s 2005 ranking of the degree of for regime changes in the neighboring political rights and civil liberties available countries. in countries of the world, Kyrgyzstan is On November 15th, youth activists of ahead of Kazakhstan, among the “par- the movement “For a Just Kazakhstan” tially free,” while Kazakhstan remains announced the creation of a so-called an “unfree country.”1 Kyrgyz Bureau of Kazakh Opposi- tion, based in Bishkek. Right after the Problem areas in presidential elections in early Decem- bilateral relations ber, those activists were detained by Kyrgyz police and, by some unoffi cial Dissonance of priorities accounts, with the participation of rep- In Kyrgyzstan, the process of prop- resentatives from the Kazakh security erty and business redistribution that fol- service. Representatives of the opposi- lowed the March events demonstrated tion-minded part of Kazakh society ap- clearly that the priorities which prevail pealed to president Bakiev, asking him are often dictated by political objec- to personally interfere in the situation. tives. Struggle for political power slowly Nevertheless, Kyrgyz law enforcers turned into struggle for control of eco- extradited one of the activists to Kaza- nomic assets. In general, Kyrgyzstan khstan. has entered a period in which political After the Andijan events in Uzbekistan reforms have priority over economic in May 2005, mass exodus of refugees reforms, which, as admitted by repre- into Kyrgyzstan resulted in the deterio- sentatives of the new authorities, were ration of relations with the Uzbek au- radical enough already under the previ- thorities. Even though the bulk of the ous regime. refugees were transferred to third-party With the victory of the incumbent countries, Kyrgyzstan was forced to ex- president in the last elections, the proc- tradite several political refugees to Uz- ess of political modernization and dem- bekistan. Unoffi cially though, Bishkek and Osh became sanctuaries for many ocratic reform is only starting in Kaza- 1 Freedom House, Annual Global Review of Political Rights and Civil Liberties 2006 http://www.freedomhouse.org/research/ freeworld/2006/Charts2006.pdf

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№ Kyrgyzstan-Kazakhstan: how to build new relations with an old friend

opponents of the Uzbek authorities. Kyrgyz migrants on the eve of the pres- idential elections in Kazakhstan had a Fuel and energy sector great resonance. Earlier, the exploita- tion of labor migrants in the tobacco Mutually benefi cial management of plantations of southern Kazakhstan, water and energy resources remains accompanied by gross human rights vi- a traditional point of confl ict between KYRGYZSTAN BRIEF KYRGYZSTAN olations, caused indignation within Kyr- Kyrgyzstan and Kazakhstan. For Ka- gyz society. zakhstan, the bulk of whose territory Furthermore, the number of people lies in an arid zone, water has great with dual citizenship is expected to grow value. Southern Kazakhstan is de- steadily, denoting ethnic Kazakhs who pendent on the stable infl ow of water want to settle in Kazakhstan as offi cial from Kyrgyzstan in summer. In winter, immigrants while remaining citizens of Kazakhstan has a vital interest in en- other countries, using Kyrgyzstan and suring that water accumulates in Kyr- Kazakhstan as transit points for enter- gyz reservoirs for later use in summer. ing Western countries. For Kyrgyzstan, water has even greater value as a source of electricity, espe- Economic and business disputes cially needed during wintertime, result- ing in winter fl oods in Kazakhstan and scarcity of water in summer. The issues The dynamics of economic growth in of mutual compensation and functional Kazakhstan testifi es that once things exchange schemes – water-electricity- become stable in Kyrgyzstan, Kazakh oil – will remain key to the energy secu- investors will only be more interested in rity of Kyrgyzstan. investing in this country which presents Also problematic in recent years has familiar conditions. This indication rais- been the issue of the gas pipe running es key issues for protecting the rights through Kyrgyzstan and of Kyrgyzstan of local investors from Kazakhstan, as taking gas intended for Kazakh con- well as the possible provision of prefer- sumers. According to gas company ential conditions. Serious fears among representatives, the amount of debt for Kazakhstanies stem from the weak this gas, reaching 18,5 million dollars, protection of their rights, extra bureau- has already become a subject for inter- cratization in the sphere of state control governmental negotiations between the over businesses, and the possibility of two countries.1 nationalizing foreign assets and recon- sidering the property rights of foreign Population migration owners. For instance, for the last several years With the growing prosperity of the Kazakhstan has insisted on the resto- neighboring republic, the tendency for ration of the rights of Kazakh owners in Kyrgyz labor to migrate to Kazakhstan several resorts in Issykkul, last raising will only increase. Currently, there are the issue December 15th, 2005. up to 80 thousand legal and illegal mi- The last visit of Prime Minister Felix grants from Kyrgyzstan temporarily Kulov to Taraz resulted in preliminary working in Kazakhstan (of which there confi rmation of the rights of Kazakh are many more illegal than legal). In owners in four resorts in Issykkul (Sa- early December, forced deportation of mal, Avtomobilist Kazakhstana, Univer-

1 Information Agency Kabar, December 19, 2005 http://www.kabar.kg/rus/econom/20051219/80

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sitet and Kazakhstan). The Kyrgyz side started seeking ways of expanding into made the confi rmation conditional on Kazakhstan, and there have already the observance of some of Kyrgyzstan’s been some examples of successful interests, including recruitment of the penetration of the Kazakh market. workforce from among local inhabit- ants and a fi xed amount of investment Each year, with the start of the tour- in these resorts. Nevertheless, the Kyr-

ist season in Issykkul, publicity attacks BRIEF KYRGYZSTAN gyz parliament, which must approve against recreation in Kyrgyzstan are the agreement that includes this issue, launched through Kazakh media out- may again refuse to ratify such arrange- lets. The interested parties are provid- ments. ers of tourism services inside Kaza- khstan, for whom Issykkul is a strong Kyrgyz businesses in Kazakhstan challenger. This competition will inevi- tably cause friction between the tour- In economic and trade relations with ism companies of Kyrgyzstan and Ka- Kazakhstan, status as a WTO member zakhstan. gives Kyrgyzstan some advantages, but also creates known diffi culties. Conclusion So far, demand in Kazakhstan in- cludes a cheap and qualifi ed workforce This review of problem areas in Kyr- from Kyrgyzstan, electricity for grow- gyz-Kazakh relations is by no means ing industrial needs, water resources, exhaustive, but it demonstrates Kyr- tourism, gold and jewelry, clothing, and gyzstan’s need to order its priorities and – more irritating for Kazakh producers shift to a more fl exible and consistent – cheap re-export goods from WTO policy in relations with Kazakhstan. In member-states. a commonly accepted format of public Traditionally, Kyrgyzstan has provid- agreement, a clear and sensible policy ed tourism services, agricultural prod- of relations with Kazakhstan will assist ucts, and construction materials for Ka- Kyrgyzstan in reaching a better under- zakhstan’s market. A newer tendency standing of its interests, and in actively is the outfl ow of emerging Kyrgyz capi- defending them. tal to Kazakhstan, as seen by growing It must be emphasized here that, by interest of Kyrgyzstanies in purchas- and large, the infl uence of Kazakhstan ing realestate in Almaty. Businessmen in Kyrgyzstan is positive, and that an shift their enterprises to Kazakhstan understanding of this fact should lay and gradually leave Kyrgyzstan. From the preamble of the new “Kazakhstan the late 90s, Kyrgyz businessmen have policy” of Kyrgyzstan.

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№ Kyrgyzstan-Kazakhstan: how to build new relations with an old friend

ROUND TABLE:

TOPICAL ISSUES OF KYRGYZSTAN´S FOREIGN POLICY

A round table on “Topical issues of Kyrgyzstan´s Foreign Policy” was held on December 21st, 2005 at the Institute of Public Policy. Valentin Bogatyrev, Director of KYRGYZSTAN BRIEF KYRGYZSTAN the International Institute for Strategic Studies under the President of the Kyrgyz Republic, and Murat Suyunbaev, Vice-rector of the Diplomatic Academy under the Ministry of Foreign Affairs of the Kyrgyz Republic, who also works as an Ex- ecutive Secretary for a Working Commission on Developing a New Concept of Kyrgyzstan´s Foreign Policy, were invited as speakers. Representatives of inter- national organizations, political parties, and public associations also participated in the discussion. Below are excerpts from the transcript of the round table. Valentin Bogatyrev: The question work with democratic values. I think it of what foreign policy we need can be is always necessary to distinguish the divided into three parts. The fi rst is the limits whereby politics ends and ideol- current world setup and trends in its ogy begins. For instance, all of the talk transformation, as it is clear that the of partnership between Russia and Kyr- foreign policy positioning of any state is gyzstan in the post-Soviet period is pure dictated by two condi- shamanism, pure ide- tions: internal goals of Valentin Bogatyrev ology. At one of the development, values, Director of the International Institute for Strategic round tables when and historical prefer- Studies under the President of Kyrgyzstan; ad- viser to the President of Kyrgyzstan. they started talking ences of the state, and about foreign states, structural setup in gen- In 1988-91 served as Deputy Minister of People’s Education of Kyrgyzstan; Bolot Januzakov, eral. A state’s internal President Akaev’s goals of development 1989-95 – director, co-director of Central Asian Deputy Chief of Staff, School of Cultural Politics; 1995-2002-director depend on the system of the Institute for Ethnic Politics. Bogatyrev is suddenly shuddered of international affairs chairman of the Board of Trustees of the Euro- and said: “We should of which it is a part. pean Club in Kyrgyzstan. not talk about Russia This is what defi nes as of a foreign state.” the situation within a state. In my opin- He has a very ideological approach in ion, Kyrgyzstan is a state where the cir- assessing this partnership. cumstances in which it exists dominate The third bloc is, of course, the most in defi ning its internal goals. diffi cult – national interests of a state. The second part is connected to the Which means, which strategy and tac- ideologems that form the space and tics should be employed in order to values of a foreign policy. You know well observe these national interests? As who is working on this. The space of a a rule, there are two positioning para- foreign policy discourse is overly my- digms from which to proceed in foreign thologized, since powerful states and policy. The fi rst is an approach based alliances of states try to impose their on national interests; they are declared own understanding of the world and as priorities. The second paradigm is policies on others. This understanding an approach that I call “vassal behav- is rarely benefi cial or desirable for the ior,” i.e. when in international relations rest of the world. American foreign pol- a state is guided not by what it needs, icy is a prominent example of how to but by what others need. The former

-10- scope, aprocessofrestructuring istak- Islam, drugs,etc.). As fortheregional an problemsoriginate here(migration, as manyEurope- very important, For Europeitis to havein rope stillhopes Asia, whereEu- and evenCentral casus, Turkey, Europe, theCau- pense ofEastern are activelybeingformedattheex- control hasbeencreated.Itsborders new Europeanareaofinterestsand have alsoclashedinCentral Asia. A activities. ghanistan servesasexampleofsuch formats ofpossibleagreements. Af- an activesearchforsuchactorsand ferent actors. At themoment,thereis to switchadifferent strategywithdif- political restrictionswillforcetheU.S. domination, butcertainresourceand U.S. willresignitsworldpresenceand Of course,thisdoesnotmeanthatthe and tocreateaunited American space. form andstrengthenitsownleadership, this stateundertakesmanyattemptsto tion onacontinentalscale.We seethat the U.S.therewillde centers ofpowerwillform.Firstall,in of history;soonseveralbigmulti-state this istheeventthatturnedcourse ginning ofthewarinIraq,andIbelieve polar constructioncoincidedwiththebe- new con of aunipolarsystem,andismovingto my view, theworldhaspassedpeak of itspoliticalpositionsandstrategy?In and howdoesitin pragmatism. for weakstatesorthoseprofessing countries, whereasthesecondoneis position istypicalofpowerfuloractive The interestsofRussiaandChina Topical issuesofKyrgyzstan’s foreignpolicy In whatworlddoesKyrgyzstanlive, fi guration. The peakoftheuni- fl uence. fl uence theformation Uzbekistan. Kazakhstan, and centers –China, region-forming between three several regions, intersection of located atthe Kyrgyzstan is fi nitely beuni fi ca- ness. This isclosetotheJapanese – anideologemofnational distinctive- country tosuggesta third ideologem Defense Treaty, i.e.Russia. aegis oftheOrganizationCollective the Sovietperiod–toliveunder priorities herearethesameasduring Kazakhstan, andChina.Foreignpolicy logic ofdevelopmentsetbyRussia, Economic Union(EEU),andfollowthe pendent States(CIS)ortheEurasian context oftheCommonwealthInde- Kyrgyzstan hastoliveineitherthe gem thatstillworkshereis“soviet”: sibly Kazakhstan. The secondideolo- ate controltoRussia,China,andpos- the U.S.willhavetoconcedeimmedi- region iskeptundercontrol,although a meansbywhichthesituationin Japan. Nowitbecomesaninstrument, transmitted fromtheU.S.,Europe,and ropean values;thisideologemisbeing munity. ItalsoincludestheideaofEu- to becomepartofademocraticcom- democratic; thismeansKyrgyzstanhas in connectiontoKyrgyzstan. The employed inforeignpolicy, whichwork gions. cal waragainstotherstatesandre- refugees andsomethingofanideologi- coming fromUzbekistan:immigrants, Finally, thereisanegativeexpansion ment ofKazakhorderinKyrgyzstan. confederation throughtheestablish- sion andfrequentproclamationsofa of formingaregionis pansion. Kazakhstan’s basicprocess source, humanitarian,andculturalex- of trade,whichisthenfollowedbyre- China isformingaregionexpansion bekistan. The basicprocessbywhich centers –China,Kazakhstan,andUz- gions, betweenthreeregion-forming located attheintersectionofseveralre- not haveasingleregion.Kyrgyzstanis would disagree,butIthinkthatwedo ing placehereaswell.Manypeople Attempts arebeing madeinour In myview, twobasicideologemsare fi nancial expan- nancial fi rstis -11-

KYRGYZSTAN BRIEF № 2 KYRGYZSTAN BRIEF № 2 -12- to serveascriteria. The issueofna- tions withforeignpolicy partnersbegin malities andfearofcomplicating rela- assessment. Thus, observationoffor- are nocriteria,pointofdeparturefor one couldsaywhetheritisright. There but maygoagainstthemaswell.No and goalsofthestatepeople, which mayoverlapwiththeinterests to thepoliticalgoalsofleadership, rent foreignpolicyisformedaccording are notyetde foreign policyisthatitsinternalgoals nal goals. The problemofourcountry’s it isnecessarytoknowwellourinter- ed. Inordertoconductsuchapolicy, ing thirdcountriescannotbeconclud- ideological orpoliticalliabilitiesregard- foreign policytreaties,agreementswith tion ofcitizen’s rightsabroad.Second: of freedommovement,andprotec- country; accesstomarkets;provision nal threats; real, notmythicalprotectionfromexter- fi the statebene tions: Whatwillthisgiveus?How is ananswertothefollowingques- de eign policycommunicationsmustbe core ofaforeignpolicy. First,allfor- consists oftwoitems,shouldbeatthe a principleofstrictpragmatism,which marily ideologicalorganizations.Ithink SCO, aswellCISandEEU,arepri- tion (SCO)andthe American base. the ShanghaiCooperationOrganiza- An exampleisthedevelopmentswith state, asourceofpermanentproblems. logical preferencesarebondagefora based onideologyasamistake;ideo- However, Iconsideraforeignpolicy in foreignpolicy, strategy, andtactics. of foreignpolicy, forde ternative variantsofastate’s course considered asabasisfordraftingal- neutrality inthisspace. model. There areideasofforeignpolicy ve thingsunderthenotionofbene As arule,thesethreeideologiesare fi ned andsupported onlyafterthere fl ow ofinvestmentsintothe fi ned. Therefore, the cur- the Therefore, ned. fi t? We shouldconsider fi nn positions ning fi t: Topical issuesofKyrgyzstan’s foreignpolicy mean eachother, peoplefromTV…. real state.Whentalking aboutstate,we do notthinkoftheirown countryasofa have anideologyofstatehood. Citizens problem isthatKyrgyzstandoesnot Kumar Bekbolotov(IWPR): still entertainsthemindsofelite. is aleftoverfromtheSovietperiod,and zakhstan, China, America orRussia.It everything forus–withthehelpofKa- swer allofourquestionsandprovide effort to In theseactions,Iseeourpermanent even askingpermissionorapologizing. openly makinguseofKyrgyzstan,not witnessed howithappened. They are during theelectoralcampaign,andyou do here? They madeuseofKyrgyzstan stan needus?Whataretheygoingto ever, theissueis:WhywouldKazakh- solve ourproblems. This isclear. How- which allegedlyimmediatelycouldre- money –bigmoney, Kazakhmoney, union, etc.However, Ithinkitisallabout advantages anddisadvantagesofsuch with Kazakhstan;theytalkaboutthe discussing theideaofaconfederation ber ofveryseriouspeoplehavebeen For thepastone-twomonthsanum- make sensetotalkaboutit. not beendoneyet;thereforeitdoes of thepublicanditselite. This workhas tain technologicalactions,involvement thing thatisformedasaresultofcer- this. This isnotaclearnotion.It certain thingsbeforestartingtodiscuss national interest.Ithinkweshoulddo issues likeformingideology, identifying nological approachwhenitcomesto Valentin Bogatyrev: how arenationalinterestsformed? Shairbek Juraev(IPP): those interestsare. including thepopulation,knowswhat tional interestsremainsopen.Noone, fi nd apatronwhowouldan- Iemployatech-

Where and I thinkthe

two Russiancompanies…. Neverthe- the Russianpresence is awarbetween the exceptionof real projects,thereare nonesofar, with mation environmentandsoon. As for about unity, commonlanguage,infor- mension. We keep hearingtheoldtalk here onlyinamilitary-ideologicaldi- not doanything,astheyarepresent have neverdoneanythingandtheywill us. Onthecontrary, Iamsurethatthey sians wouldcomeanddosomethingfor I thinkweshouldnotrejoicethatRus- own advantage,whichmakessense. eviction ofthe American base)toits in Uzbekistan(the Andijan eventsand sia hassuccessfullyusedthesituation be anaturalprocess.Ofcourse,Rus- always swinging,andthisseemsto the word ago itwasprohibitedeventopronounce devil incarnate,whereasonlytwoyears Central Asia, whereastheU.S.is that Russiaisthebulwarkofsecurityin very strangenowtohearin Tashkent swung theotherway. Forinstance,itis left thecountry. Nowthependulumhas able helptoKyrgyzstanwhenRussia maximum. The U.S.providedconsider- the American presenceherereachedits certain circularity. There wastimewhen Valentin Bogatyrev: discussion. foreign policymustbesubjecttopublic ily dependentonexternalfactors,so with otherstates.Kyrgyzstanisheav- resolve issuesrelatedtoourrelations the publicalsohasarighttoraiseand ion, itistimetopromotetheideathat Ministry ofForeign Affairs. Inmyopin- experts, itwastheprerogativeof For alongtimeitwasde cy dependsheavilyondomesticpolicy. not laiditsfoundationyet.Foreignpoli- til domesticpolicyisformed.We have cy cannotbesolvedunambiguouslyun- Meanwhile, theproblemofforeignpoli- Topical issuesofKyrgyzstan’s foreignpolicy Russia ! These pendulumsare Bitel . Whatwegetfrom We witnessa fi ned bysome his pointofview, soof thing issimple:IslamKarimovchanged lum existatall?InUzbekistanevery- Murat Suyunbaev: both withtheU.S.andRussia. have normalandsustainablerelations and becomeorderly. Kyrgyzstanwill Russia’s sideeverythingwillstabilize less, sincethependulumhasswungto people. strophic consequences fortheKyrgyz However, Ithinkthatwouldhavecata- be aconfederationwithKazakhstan. Valentin Bogatyrev: would itbeeffective? rectional foreignpolicy?To whatextent imagine Kyrgyzstanconductingaunidi- account thecurrentsituation,canyou Elmira Nogoibaeva(IISS): all. therefore, itisnotanaccidentalshiftat sia turnedouttobesuchacountry; political harassment,andtorture.Rus- blame himforviolatinghumanrights, connections, statesthatwouldnot He startedtoseekbackingfromnew rection, thestatewouldhavecollapsed. that werehetoproceedinthesamedi- change hispointofview. Karimovfelt around UzbekistanmadethePresident and processeswhichtookplacein reason. That is,certaincircumstances stan changedhisopinionduetosome nevertheless, thePresidentofUzbeki- Yes, itappearedasasubjectivefactor; Valentin Bogatyrev: gate this. I thinkitwouldbeinterestingtoinvesti- in Kyrgyzstan,anddoesitexistatall? sons fortheswingingofpendulum subjective ones.Butwhataretherea- tive factorsinUzbekistan,butpurely changed. There arenomysticalobjec- Iwouldnotagree. Does thispendu- Probably itwill fi ca policies cial Taking into -13-

KYRGYZSTAN BRIEF № 2 KYRGYZSTAN BRIEF № 2 course, Iwill.” This istheway. At pres- with thiscouncil.He answered,“Of Djekshenkulov whether hewouldwork Foreign Minister. Yesterday Iasked Mr. was setupwhenMs.Otunbaeva policy, chairedbyMuratbekImanaliev, of Foreign Affairs. A councilonforeign decisions.” ‘We’ stands fortheMinistry “everyone keepsilent,wewillmake enkulov, ForeignMinister. Hesaid, clearly demonstratedbyMr. Djeksh- Valentin Bogatyrev: our country? tegic foreignpolicydecisionsmadein entirely differentthings.Howarestra- State orSecretaryofDefensewesay during avisitoftheU.S.Secretary withdrawal ofthe American base, but icy. At theSCOsummit,wedemand problems ofKyrgyzstan’s foreignpol- inconsistency isoneofthebiggest Shairbek Juraev(IPP): not tohaveit. eign policyisgood,anditimpossible will alwaysexist. A multidirectionalfor- elements ofmultiple-directionpolicy ereignty, toloseone’s state. Therefore, policy wouldmeantoloseone’s sov- nections, andbuildingaunidirectional corporated intoagreatvarietyofcon- icy strategy. Today, anycountryisin- is alsoapoliticalmove,foreignpol- direction andtomorrowanother. This It meansthattodayyoucanfollowone but itisextendedintime,notspace. have thesamemultidirectionalpolicy, as longitischangedtimely. They that aunidirectionalpolicyispossible Valentin Bogatyrev: policy isimpossible. cy showedthataunidirectionalforeign foreign policy, althoughKarimov’s poli- criticized thepositionofmultidirectional cent interview, MuratbekImanaliev Elmira Nogoibaeva(IISS): -14- Karimov thought The waywas In myview, In hisre- Topical issuesofKyrgyzstan’s foreignpolicy Oblast ofKazakhstan. Iaskedwhether on bordercooperation withDjambul las Oblasthadsigned anagreement found outthattheadministrationof Ta- of thetown Talas threeyearsago,I was workingonstrategicdevelopment veloping ontheregionallevel.WhenI what ishappening. ests, andthestatemustbeawareof Their activitiesmustfollowstateinter- Kyrgyzstan’s national interestsabroad. der whatconditionsNGOswillrealize ties ofNGO’s shouldbede reformatted; rightsandresponsibili- it needstobe foreign policy; of national new concept to workouta there isaneed quirements. the currentre- does notmeet 1990s, and the early old basisof 1997 onthe veloped in policy wasde- cept offoreign case withthe American dures, withtheexceptionofrecent civil societyparticipateintheseproce- in theprocessofjusti cisions. At best,theyareinvolvedonly engaged intheprocessofmakingde- erable knowledgeofthisareaarenot expert communitiesthathaveconsid- in de procedures ofpublicpolicy, especially involve experts. viduals makedecisions,andtheyrarely ent everythingispersoni Foreign relationsareactivelyde- Therefore, Murat Suyunbaev: We donothaveinstitutesandformal fi ning policy, becausetheexisting gyzstan’s foreignpolicy. developing aconceptofKyr- the Working Commissionon baev isExecutiveSecretaryof At themoment,MuratSuyun- Aral internationalfoundation. tainable developmentofthe national commissiononsus- In1994-97–memberofinter- of theKyrgyzRepublic. Studies underthePresident tional InstituteforStrategic partment headattheInterna- Suyunbaev workedasade- gyz Republic. of Foreign Affairs oftheKyr- Academy undertheMinistry Vice-rector ofthe Diplomatic Murat Suyunbaev fi cation. Nordoes The statecon- fl ag…. fi ed, i.e.indi- fi nd un- ned, done draftingaconcept paper, itwillbe segments. Oncetheworking groupis concept paperideasfrom theseother therefore wedecidedto includeintothe foreign policyaremoreorlessknown, ment, andNGOs.Stateinterestsin local self-government,regionalgovern- bers arerepresentativesofbusinesses, tration, andmyself. The othersixmem- fairs Of representative oftheInternational Af- sentatives oftheForeignMinistry, a dealing withforeignpolicy:tworepre- four ofwhomrepresent formed consistingof10members,only departmental workinggrouphasbeen ing developedatthemoment. An inter- correspond tothesenotions. foreign policy, theformatofworkmust policy ideologyisanationalconceptof gic planswerechanged.Sinceforeign started itsactivedevelopment;strate- Shanghai CooperationOrganization and “Kant”airbasesappeared;the 1998 wejoinedtheWTO; then“Manas” sphere offoreignpolicysince1997.In or evendiplomaticpassports. of theseNGOscouldbeissuedservice of partnershipwiththeMinistry, leaders projects ofthissort,withinaframework NGOs areactivelyinvolvedinlong-term pages long)onitsactivities.Sincelocal fl stance, anNGOworkingonbordercon- divided intoseparatesegments.Forin- pening. Foreignpolicyshouldnotbe inform theMinistryaboutwhatishap- get certaincounselingassistance,and their activitieswiththeForeignMinistry, and localgovernmentmustcoordinate good deeds,butontheirown.NGOs ciple. The samewithNGOs:theydo that agreement. This isnotrightinprin- that theMinistrywasnotevenawareof tance withthisevent,anditturnedout the ForeignMinistryoffered anyassis- ict preventioncouldwriteareport(2-3 Topical issuesofKyrgyzstan’s foreignpolicy A newforeignpolicyconceptisbe- A lotofeventshavehappenedinthe fi ce ofthePresidential Adminis- fi ca bodies cial is noinvolvementof the publicorin- will discussthedraft. together people,andtheworkinggroup Secretariat willorganizethework,bring cil, whichisinfactahugebazaar. The the workofConstitutionalCoun- However, allofthisworkwilldiffer from and tore to engageabignumberofparticipants cil’s approval. will besubmittedfortheSecurityCoun- After theanalysis,conceptpaper of theNational Academy ofSciences. lov, andathirdexpert–Vice-President former SpeakerMedetkanSherimku- nary andPlenipotentiary Ambassador, former SecretaryofState,Extraordi- specialists likeIshenbai Abdrazakov, go theexpertanalysisofauthoritative mitted forof external world. fi ary Ambassadors, i.e.peoplewhohave ing ofExtraordinaryandPlenipotenti- It willbefurtherconsideredatameet- Staff. tration, andthePrime-Minister’s eign Ministry, thePresident’s Adminis- be discussedbyemployeesoftheFor- and theMinistryofDefense. Then itwill of CustomsService,Frontier students, businesses,andemployees ment, NGOs,youngscholars,graduate of representativeslocalself-govern- widely discussedwiththeparticipation they sitintheirof two tothreeemployees oftheMinistry; ments? A Ministerappointsagroupof typical procedureindraftingsuchdocu- the approachtowork.Whatis type ofdiscussion? what arethemaindifferencesofthis rsthand accesstoinformationonthe Ainagul Abdrakhmanova (IPP): Ainagul Abdrakhmanova This particularapproachallowsus Beforetheconceptpaperwillbesub- Murat Suyunbaev: fl ect interestsofallparties. fi cial approval,itwillunder- fi ces andwork. There Itisallabout -15-

So,

KYRGYZSTAN BRIEF № 2 KYRGYZSTAN BRIEF № 2 -16- ing grouptodraftanewconcept? resentatives ofthepublictojoinawork- – Whatarethecriteriaforselectingrep- we needanewconcept? And thethird cept. The secondquestion–Whenwill that wewerelatewiththepreviouscon- cept offoreignpolicywork? You said questions. Howlongwillthenewcon- ness Club): ident. worked andkeepsworkingforthePres- er citizens. The ForeignMinistryhas standing ofthecountrytheyrepresent. eign Ministryhaveaverylimitedunder- tive circumstances. is notrealistic,andfailstore Therefore, thebulkofsuchdocuments terested parties;theworkisnotopen. represent. the countrythey derstanding of very limitedun- of Foreign Ministry Esenbek Urmanov(BishkekBusi- Unfortunately, employeesoftheFor- fi cers havea I wouldliketoaskthree know lessthatoth- about whichthey sent acountry abroad theyrepre- So itturnsoutthat within thecountry. They donottravel fl ect objec- Topical issuesofKyrgyzstan’s foreignpolicy you de to thequestiononconcept,howdo there ismoreusefromthem. ple weliked;Iinvitedmyenemiesas representation. We neverinvitedpeo- ment. We wanttohaveaproportionate together capableheadsoflocalgovern- NGOs. Withtheirhelpwearebringing worked withlocalself-governmentand sively traveledaroundthecountryand Academy ofManagementwhoexten- people intheSecretariatfrom country fordiplomaticcorps. short-term, containaguidebookonthe strategy andactionplanshould,forthe eign Ministryforthreetofouryear. The be developed,anactionplanoftheFor- number ofissues.Laterastrategywill a Constitution.Itcoversconsiderable a documentwithdirectapplicationlike What isaftertheconcept? this conceptintoaworkabledocument? thought ofspeci not merelyrestonpaper?Haveyou Ainura Umetova(IISS): MuratSuyunbaev: Murat Suyunbaev fi ne theprobabilitythatitwill fi c stepsinordertoturn : A conceptisnot We havetwo Going back 2 № THE DANGERS OF PROPERTY REDISTRIBUTION

THE DANGERS OF PROPERTY REDISTRIBUTION? Increasingly chaotic redistribution of property in Kyrgyzstan, triggered by the Tulip Revolution in March 2005, poses a real threat to economic and social stability in the country.

Kumar Bekbolotov, Shairbek Juraev1 KYRGYZSTAN BRIEF KYRGYZSTAN

The Constitution and relevant laws rights may serve a very bad role as a of Kyrgyzstan grant the citizens of the catalyst of social tension. The country’s country the full and indefeasible right leadership must take immediate meas- to dispose of private property. Property ures to ensure legal and practical pro- rights in all forms compatible with mar- tection of private property and capital ket economy were legally fi xed after against arbitrary attacks from the side Kyrgyzstan received its independence of third parties and state agencies. in 1990. However, scandalous cases of own- The beginning ership confl ict over such big entities as Bitel mobile operator, Piramida TV The privatization of state-owned company, Akkeme hotel and others property, which became the main ele- vividly demonstrate to what extent the ment of economic reforms in the post- institution of private property owner- communist countries, had mainly been ship remains underdeveloped in Kyr- concluded in Kyrgyzstan by the late gyzstan. The dramatic change of po- 1990s. The most comprehensive pri- litical regimes in March 2005 brought vatization took place in the service and about a very tough process of property trade sectors, creating a stable layer of redistribution, ongoing to this day. private ownership. Privatization of ma- Initial signs of a forthcoming ‘reevalu- jor industrial, transport, and construc- ation’ of property disputes included the tion fi rms has been only partial. The cases of mass looting in Bishkek March latest stage of privatization, still under- 24th-25th, which virtually destroyed big way, touches strategic areas where the businesses/trade entities that were state earlier maintained its monopoly believed to be related to the previous (energy, communications, air transpor- regime, and cases of mass-scale arbi- tation, and mining). trary seizure of land plots in and around During the last stages of privatiza- Bishkek. Still more tellingly, the March tion, starting from 1999, former Presi- events generated a large-scale proc- dent Akaev and his family increased ess of property redistribution involving their use of power for large-scale expro- high-ranking politicians, businessmen priation of property. By early 2005, the and criminal groups, fully demonstrat- family of Akaev and those of his closest ing the vulnerability of private property allies had established control over key rights in the country. For a country in high-profi t business entities in various deep economic crisis and on the brink spheres, from consumer services to of social explosion, chaos in property 1 Kumar Bekbolotov is country director of the Institute for War and Peace Reporting in Kyrgyzstan, and holds MA in Political Science from Central European University. Shairbek Juraev is program coordinator at the Institute for Public Policy, and holds MSc in International Relations from the London School of Economics. 2 On 8 February 2005, opposition newspaper MSN published a long list of property objects reportedly belonging to the President, his family and close allies. The list consisted of more than 40 companies/plants in key economic sectors. See Rina Prijivoit, “Prezident izdal ukaz: vseh otmyt’ v poslednii raz”, MSN, No.14, 08 February 2005.

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№ THE DANGERS OF PROPERTY REDISTRIBUTION?

telecommunications companies.2 The Commission’s report, made pub- Political euphoria and a sense of im- lic on the 24th of June 2005, revealed punity after the collapse of Akaev’s re- the linkages between the companies gime made any property that had ac- and the family of the former President. tual or alleged links to the previous re- Apart from the accounts of tax eva- gime extremely vulnerable to various sion and illegal use of state fi nances,

KYRGYZSTAN BRIEF KYRGYZSTAN attacks. There were cases of arbitrary the report disclosed 17 cases in which seizure of property by previous owners state-owned property was privatized by who had been fl eeced by Akaev’s re- Akaev’s relatives.1 gime, by the offi cials of the current re- However, the work of the Commission gime, and simply by adventurers seek- itself drew a heavy criticism from vari- ing to make a fortune in this “interlunar” ous non-state actors. It was accused time. of exerting pressure on legal owners of In this situation, the interim govern- various businesses, with the purpose ment’s fi rst step was to establish on of redistributing property in favor of the April 11th, 2005 a special state commis- current power-holders. Maksim Maksi- sion, led by then acting Deputy Prime movich, the lawyer of Akaev’s family, Minister businessman Daniyar Usen- rejected all the conclusions of the re- ov, to “determine the movable and im- port, claiming that “all the numbers of movable property belonging to the fi rst Usenov [head of the Commission] are non-existent, and are the conclusion of President Askar Akaev, to his family and the Commission but not a result of in- closest relatives, and ensure its safety.” spection.”2 Initially, the Commission prepared a list The case of Bitel illustrates some of 42 companies to be inspected, but general characteristics of current prop- later 136 more companies were added, bringing the total number of items to be erty confl icts. First, the law is usually inspected to 178. violated in the very beginning, during Bitel mobile operator Bitel is the only mobile telephone operator in Kyrgyzstan using the GSM standard. As of October 2005, Bitel claimed 440 thousand subscribers, occupying 90% of the mobile communications market in the country. Its earnings for 2004 reached 32 million USD. The State Commission investigating Akaev’s property determined the market cost of the company to be 150-200 million USD.

The commission established that in 1998 Kyrgyztelecom, a state-owned communication monopoly, illegally provided 40% of Bitel’s start-up capital, thus becoming its co-founder. It was also established that former tech- nical director of Kyrgyztelecom, Marat Mambetaliev, had illegally used 500 000 USD in the interests of Bitel.

Since March 2005, Bitel has remained torn between different parties. At various times, confl ict over owner- ship of the company has involved Bermuda Islands-based IPOC offshore fund, Kazakhstan-based Fellowes and Russian Alfa-Telecom which bought out Fellowes, and Kazakh Alians Capital. During the court hearings between various parties, it was revealed that Bitel was owned by President Akaev’s son, Aidar Akaev, and Nur- bek Turdukulov, former Deputy Minister of Transportation and Communication, via three offshore companies from the British Isle of Mann: Kyrgyzstan Mobitel, Flaxendale and George Resources.

After a very rapid and not always coherent series of events, two Russian companies – Reservspetsmet and MTS – emerged as leaders in the struggle for Bitel ownership. The former won the case in the Supreme Court of Kyrgyzstan December 14th 2005, and stormed and took over the Bitel building on the same day. At the end of the day, the main victims were hundreds of thousands of Bitel mobile network users, who lost adequate net- work service for several weeks following the change of owners.

1 Report of the State Commission to determine the movable and immovable property belonging to the fi rst President Askar Akaev, his family and closest relatives, and ensure its safety. 24 June 2005. Full text in Russian accessed at http://www. analitik.kg on 25 October 2005. 2 Statement of Maksim Maksimovich, lawyer of Askar Akaev’s family on the results of the State Commission on 5 July, 2005. Excerpts of the statement are available at http://www.akipress.kg.

-18- 2 № THE DANGERS OF PROPERTY REDISTRIBUTION

the establishment of original owner- 1990, the high level of corruption, and ship rights, thus sowing the seeds for the exceptional inability of state agen- future confl icts. Bitel was created with cies to enforce legality, one can assume illegal attraction of state funds, mak- that the number of owners in confl ict ing the company vulnerable for force- with the law has been hight throughout ful changes in ownership. The use of the era of privatization, and remains so

political links allowed many companies today. BRIEF KYRGYZSTAN to survive during Akaev’s rule. The col- Semi-legal means are used when lapse of the regime made these com- an expropriator does not have suf- panies highly visible targets. Second, fi cient connections to make a legal it is apparent that the current property case against the owner. This method confl icts still involve people in the high- includes a wide range of tricks with a est rungs of authority and those related general pattern: the property redistribu- to them. This point is illustrated by the tion itself appears formally legal, but the contradictory decisions of the Minister means of convincing the legal owner to of Justice and his deputy, and of vari- give his property up are not so. Admin- ous courts in the Bitel case. Similar sto- istrative, fi nancial, psychological, phys- ries are occurring with other large-scale ical and other forms of pressure make properties, including Kant Cement and the owner agree to give away or sell Slate plant and others. his/her property in a ‘voluntary-forcible’ way, but one that is formally legal. Methods of redistribution Less often, property may be seized in an illegal way. This may happen in It is possible to identify legal, semi- the form of seizing legal property doc- legal and illegal forms of property re- uments, or property itself, through the distribution. use of physical force or the threat of Legal methods do not formally vio- it. Legitimization of the seizure follows late the law; moreover, their use en- later, and is sought in arguments such forces certain legal acts. Property may as “restoration of justice,” or via bribing be expropriated as a result of lawsuits, the judicial agencies or forging docu- bankruptcy, fi nancial fi nes and so on. ments. We call these methods “legal” only as a formality. The selectivity of legal inves- Implications tigations demonstrates that they only happen when certain infl uential fi gures Several conclusions can be drawn are interested. Legal ways of seizing regarding the peculiarities of the inter- property are most convenient for peo- relationship between politics and busi- ple who either work within the state ap- ness in Kyrgyzstan, and regarding their paratus, or have special infl uence on affect on the process of property reeval- policy makers, since the main tools of uation after the March events. expropriation are wielded through ad- First, it is hard to draw a clear line ministrative state agencies such as tax, between politicians, businessmen and law-enforcement, or judicial offi ces. criminals in this country. At this stage, The “victims” are usually owners who political power is valued fi rst for its are deliberately in confl ict with the law, provision of access to economic prof- i.e. who have violated certain legal pro- its. One can easily see that almost all cedures. Taking into account the nature politicians have their own businesses, of privatization of state property since while most big businessmen are mem- -19- 2

№ THE DANGERS OF PROPERTY REDISTRIBUTION?

bers of Parliament. Organized criminal things that happened to the previous groups have long been important eco- administration. Many people who lost nomic players in the country, and with their property during Akaev’s rule have the fall of Akaev’s regime, these groups it back today. However, there are many gained more freedom and more politi- owners whose ownership has become cal support. the target of attacks today, and who

KYRGYZSTAN BRIEF KYRGYZSTAN Second, the abundance of adminis- may well wait for a day to return their trative agencies produces government property. Emergence of a cycle of co- interference in the economy on an ex- ercive property exchanges is not in the ceptional level, though the government interests of the state, of business, nor, has formally adopted a liberal, non- importantly, of the ruling political re- interference approach to economics. gime. This interference results in a big share Second, purposeful interference of of latent economic activity, ranging be- state agencies into business, along tween 25% and 60% depending on the with the state’s inadequate perform- source of assessment. “Latent busi- ance of its role in enforcing the law, nessmen” become vulnerable to vari- makes current and potential investors ous forms of semi-legal attacks on their scared. Business likes stability, and property, while state authorities dem- one can easily make investor leave the onstrate utter ‘indifference’ to the cases country by telling the story of Bitel mo- of open legal violations. bile operator or Piramida TV company, Third, it is important to understand in the case of which even the Parlia- that one cannot expect effective social mentary commission failed to identify pressure in support of property rights in the main confl icting party. As a country Kyrgyzstan. The society of Kyrgyzstan with no considerable exportable natural has not gone through the gradual de- resources, Kyrgyzstan is strongly de- velopment of capitalist traditions/princi- pendent on external capital. Given to- ples, and the local population has not day’s economic problems and societal ingrained private property rights. Rarely tension, the authorities must not under- can one see a “western-style” transac- estimate the importance of real invest- tion in the market for large-scale prop- ments. erty, be it merger or acquisition, with no Post-March redistribution of property political forces interested or involved. illustrates where Kyrgyzstan stands in This situation may have several neg- terms of political, economic, and social ative implications for the country. development. In light of the unstable First, the practice of addressing busi- situation in the country and the region, ness problems via political methods Kyrgyzstan’s leadership has to develop and tools very much repeats the habits a consistent and well thought-out policy of Akaev’s regime, and subsequently to avoid further escalation of events. sows the seeds for repetition of other

-20- 2 № GUEST OF THE ISSUE

GUEST OF THE ISSUE

EMIL UMETALIEV:

“Unprotected business does not have confi dence in further development, and is set to withdraw capital from the country.”

Our guest is Emil Satarovich Umetaliev, President of the company Kyrgyz Concept BRIEF KYRGYZSTAN and Chairman of the Bishkek Business Council. Mr. Umetaliev is one of Kyrgyzstan’s most experienced and successful businessmen; Kyrgyz Concept, founded 1990, is one of the biggest players in the service sector today. Mr. Umetaliev is also actively participating in the work of a dozen commissions, councils, and associations, namely the Union of Taxpayers, Board of the Soros Foundation-Kyrgyzstan, the Congress of Business Associations, etc. Our conversation is about the processes that are taking place in the sphere of private property, and their consequences for business in the country.

IPP: Mr. Umetaliev, how do you eval- diffi cult to understand what is going on uate what happened on March 24th, with Bitel, Pyramida and other compa- 2005? What was it according to a busi- nies. What do you think is the main rea- nessman? son for such developments?

Emil Umetaliev: From the retrospec- Emil Umetaliev: We are experienc- tive of the past ten months, I would say ing the consequences of a situation that those events set a precedent for when a pendulum swung in a different changes of power. That is probably the direction. Under the previous regime, biggest value of those events. Actually, this pendulum was artifi cially defl ected the public did not have a well thought- in one direction. The previous regime out decision regarding the strategy for dominated in some spheres of the the country’s development. Separate economy, in a specifi c business. Now groups, each of us perhaps, had some that pendulum has swung in a different understanding in that regard; however, direction, a derivative of legal mayhem. there was not a consolidated choice of It would not happen were there fun- a way. Moreover, there were no propos- damentals of law in the foundation of als either. Thus, on March 24th we had the state. It is bad that the pendulum emancipation – emancipation from the swung from one extreme to another. regime which annoyed everyone, the On the other hand it is good, as there is regime with which everyone was disap- now a polarity of forces and the existing pointed. Certain parts of the society, in- vacuum is disappearing. We would like cluding the business community, were this process to be directed at establish- concerned about their future, as mo- ing a progressive and more logical bal- nopoly over political power and econ- ance of powers. omy always threatens development of Today the assets of the previous re- business and the economy. gime are being called into question. Some are indifferent to this, but other IPP: Today, according to many ex- people are willing to take revenge. This perts, we are observing a tough proc- situation allows some to act as a Robin ess of redistribution of property. It is Hood. On the other hand, loopholes in

-21- 2 № GUEST OF THE ISSUE

legislation were used, resulting in judi- would happen anyway, even in a much cial precedents that allow for manipula- worse condition. Even if we had dev- tion. Therefore, without having specifi c astation they would have come here criteria the public cannot build its rela- and, risks notwithstanding, would have tion to the current processes. Yes, in- invested in order to profi t. A risky busi- stability is bad, so is property redistribu- ness knows how to profi t under any

KYRGYZSTAN BRIEF KYRGYZSTAN tion, but it is diffi cult for the majority of conditions. Even during a fl ood, dev- the society to learn who is right. astation, and war. This is not the type of business which facilitates develop- IPP: How do you evaluate the conse- ment. However, under better conditions quences of the current developments there would be a hundred times better for the private business and foreign investments. investments, both in the medium and long-term? IPP: What will the consequences be of the penetration of foreign capital in- Emil Umetaliev: The consequences to our business? For instance, into the are already being felt. Except for big in- banking sphere? vestors who can be interested in certain sectors of the economy with natural re- Emil Umetaliev: There are adequate sources, and who are able to come to modern rules which regulate the pro- agreement with the government, the cess and protect the country. You may rest of the dependent entities of small allow foreign capital to enter our do- and medium business are concerned mestic market, our banking sector, but and afraid – many of them are leaving you should indicate certain segments the country either due to their concerns so that the foreign capital cannot entire- and fears or due to pressures exerted ly control the country’s economy. There on them. Therefore, it is a very strained are reasonable limits and you just have situation at the moment: small and me- to set them. dium business – unprotected business There is a widespread misconcep- – not only has no confi dence in further tion that you have to separate your own development, in receiving investment, interests from the interests of foreign but is further set on withdrawing assets capital. However, the main thing is that from the country. people should have the opportunity for self-suffi ciency. Does it matter whose IPP: Today we are observing an money this is? There is always a short- ever-increasing role of fi nancial and age of one’s own money. Even the big- business-structures from neighbour- gest countries live with the help of for- ing countries, in particular Kazakhstan, eign investment. The United States is Russia, and, to a certain degree, China. the country which receives most of the How do you view the process of their foreign investment compared to others. penetration into Kyrgyzstani business? All countries attract foreign investment for their development. China, which is Emil Umetaliev: This is a natural demonstrating rapid economic growth process. If there is a lot of money, and today, is developing namely due to there is no room for the Kazakh econo- foreign investment. Therefore, foreign my to invest it at home, it expands and money is the only opportunity for the simply reaches out to our country. We development of the economy and im- should not talk about our failure, as this provement of the nation’s welfare. This -22- 2 № GUEST OF THE ISSUE

is the fi rst thing. The second thing is that managers. At these forums we can the main criterion for us should be not consider perspective issues, develop the citizenship of an investor, but the certain technologies, opinions, and number of jobs, the number of emerg- ideas, as well as consider issues that ing enterprises, the size of the aver- can be used for strategic planning. The age per capita income, the number of fi rst forum was on Kyrgyz export strat-

investments attracted into the country, egy; the topic of the second forum was BRIEF KYRGYZSTAN and only in the last place – public reve- “Shady KR (Kyrgyz Republic) or Sunny nues from investment. Public revenues KG (Kyrgyzstan)”; the third – “Is Edu- will be the result cation a Business or Enlightenment?”, Does is matter of the abovemen- and the fourth – “A Stabilizing Role of whose money tioned factors. One the Middle Class”. For the fourth, re- this is? The has to fi ght over gardless the issues we discussed, we main thing is foreign investment; always stumbled over the problem of that people the entire world the form of government; that is why the have the oppor- fi ghts over invest- Bishkek Business Club started to ac- tunity for self- ments. Our old tively participate in the Constitutional suffi ciency. mentality is mak- reform in 2005. ing us fear, be jealous, and show irra- tional concerns. Indeed, it is profi table, IPP: And what should the govern- as any owner will make his money work ment do in order to create a favorable effectively. Our only concern will be the climate for the development of private protection of the environment, life, and business? health of the people. Emil Umetaliev: The fi rst thing the IPP: You are a Chairman of the Bish- government should do is change the kek Business Club. What kind of mea- Constitution. The Constitution must sures and activities are you able to un- bear in-depth changes and become a dertake in order to improve the climate progressive document that takes into for development of private business? account the international experience of developed countries. The Constitution Emil Umetaliev: We started to work should include the following: setting in several directions at once. First, up a parliamentary republic and party those who make decisions should have democracy; providing preconditions accurate information on economic and for fair elections based on program- business conditions so that their deci- matic goals; consolidating the nation sions corresponded to reality. Second, through elections with party lists and we develop private projects, such as a proportional system; forming admin- changing certain taxes in favor of en- istration from the bottom up through trepreneurship, or a project on budg- elections, not by appointment; real in- etary dialogue designed to make sure dependence of the judicial branch from that the process of forming the politics the executive and legislative branches; of interrelations between the Interna- and a less bulky hierarchy of govern- tional Monetary Fund and our govern- ment. The government may have only ment is more transparent and takes in- three levels, since there is no socialist to account our national interests. Third, property now, and therefore no neces- we conduct fee-based business forums sity to manage property and economy. for interested people and motivated Considerable powers have already -23- 2 № GUEST OF THE ISSUE

been passed to property owners – en- terests, but would not strive for power. terprises and local self-governing bod- Hence, businessmen are not able to re- ies. Power should be shared with local alize their interests without power. For self-government, and should allow it to this reason, they need to delegate their be established through elections and to interests to a certain political party that develop the budget from bottom to top. would realize those interests by means

KYRGYZSTAN BRIEF KYRGYZSTAN Moreover, all of these reforms should of striving for and gaining power. There be realized step by step. For instance, are no such parties today. There are no as it was already suggested by the Peo- rules, motivation, or conditions for their ples’ Coalition of Democratic Forces, appearance or existence either. We we need to hold by-elections for thir- have to create these conditions and ty more seats in parliament based on rules when government will be formed party lists, and fi ll in seats of outgoing through party democracy. MPs only through elections with party Therefore, business is interested in lists. All elections in general should be creating a new construction of govern- done on a party basis. This reform will ment and new rules for the development be a consolidating factor in uniting the of a party democracy. Otherwise, there nation. Secondly, it will lead to the dis- is nobody to whom we could delegate carding of tribalism and clan politics. our interests: since we are not striving Thirdly, programs and strategies sup- for offi cial power, we stay vulnerable ported by the whole country will come and unprotected. Then no small or me- to the fore, instead of the selfi sh goals dium business will exist in our country, of certain groups of people. but only groups of monopolistic busi- The thing is that monopolistic busi- nesses bound up with those in power, ness is already mixed up with power, as it is under dictatorial and authoritari- and monopolistic business is the center an regimes. There will be a small group of evil in peoples’ minds. But we are talk- of very rich people, and a large group ing about small and medium business- of very poor people. es, which use more effective means IPP: Thank you very much, and good to increase the nation’s self-suffi cien- luck! cy and welfare. In fact, medium busi- nesses are vulnerable and unprotected from the arbitrariness of the authorities. They have only one way to protect their own interests: through associations and unions that would promote their in-

-24- dent hadtonegotiate with theleaders in hishands.In2002, the formerPresi- trated virtuallyallofthe politicalpower that thepreviousPresident hadconcen- one. to supportthatidea,asitwasagreat course, ourtheninterimPresidenthad initiated theconstitutionalreform. The tutional CourtoftheKyrgyzRepublic the Constitution.JusticesofConsti- left thecountry, anditistimetochange erly speaking,theusurperofpower) The guarantoroftheConstitution(prop- elected accordingtotheConstitution. about bytheabsenceofaheadstate in theKyrgyzRepublicwasbrought round table. and publicunionsparticipatedattheroundtableaswell.Belowisatranscriptof Expert andformerMP. Representativesofinternationalorganizations, politicalparties, the PresidentofKyrgyzRepublic,andZainidinKurmanov, UNDP Parliamentary Valentin Bogatyrev, DirectoroftheInternationalInstituteStrategicStudiesunder invited foraroundtableMaratKaiypov, MinisterofJusticetheKyrgyzRepublic, the workofConstitutionalCouncilaswell.To discussthe mosttopicalissues,IPP sues asformofgovernmentandseparationpowers,butonproceduralaspects cil broughtaboutdifferingopinionsamongthepublic,notonlyonsuchsigni Institute ofPublicPolicyonDecember8,2005.TheworktheConstitutionalCoun- ROUND TABLE: Marat Kaiypov Republic tional CourtoftheKyrgyz a judgeoftheConstitu- In 1999-2005heworkedas gyz Republic. Arbitrage CourtoftheKyr- Chairman oftheHighest served astheFirstDeputy In 1996-1999MaratKaiypov Kyrgyzstan. ratus ofgovernment unit headattheappa- In 1992-96workedas Kyrgyz Republic Minister ofJusticethe Everyone knew, eventhepopulace, М A roundtableon“Constitutionalchanges:issuesandpreconditions”was arat Kaiypov: Constitutional changes:issuesandpreconditions Constitutionalreform country. Of ic crisisinthe and econom- the political root causeof endum asa tutional refer- every consti- powers after of presidential strengthening who sawthe by politicians supported idea wasthen President cheated.Having comfort- tact. the ConstitutionalCourtremainedin- Supreme Courtweremerged,whereas only theSupreme Arbitrage Courtand after thenation-widepublicdiscussion, into asingleSupremeCourt.However, Court –weresupposedtobemerged Supreme Court,andtheConstitutional ry –theSupreme Arbitrage Court,the Constitution, allbranchesofthejudicia- cussion oftheproposedchangesto at thetimeofnation-widepublicdis- ond importantfactor:ifyouremember, of theConstitution. To mentionasec- tional systemaltogetherfromthedraft the expertgroupexcludedpropor- cil adjourneditswork;however, later The decisionwasmadeandtheCoun- other 50%throughamajoritysystem. of proportionalrepresentation,andthe would beallocatedthroughasystem stitution, 50%oftheseatsinparliament new proposedamendmentstotheCon- al Councilinfall2002thataccordingto decision wasmadeattheConstitution- on theballotdraftthathefavored. A veloped, buttheformerPresidentput stitution oftheKyrgyzRepublicwasde- and thepeople. A newdraftoftheCon- of oppositioninordertocomfortthem It becameobviousthat theformer

held atthe fi cant is- cant -25-

KYRGYZSTAN BRIEF № 2 2

№ CONSTITUTIONAL CHANGES: ISSUES AND PRECONDITIONS

ed the population of Aksy, he virtu- them could know what suits Kyrgyzstan ally adopted the form of the Constitu- and what does not. tion that was suitable for him. Then he Now the situation is different. We are abandoned the country, and according learning from our own mistakes, our to the existing wording of the Consti- own experience of building relations tution, the acting President does not between the public, individual people,

KYRGYZSTAN BRIEF KYRGYZSTAN have a right to make any changes to and the state. Now this chance allows the Constitution. His opponents wanted us, through changing the Constitution, to take advantage of that situation and to act more accurately and adequate- introduce changes to the Constitution ly. Besides, the precondition for these before the Presidential elections. Constitutional changes was brought As for the main achievements in the about by numerous prior changes to the work of the Constitutional Council, I Constitution, as a result of which it now will focus on three principal moments. resembles a patchwork quilt or a car First, it is de jure fi xed that the Kyrgyz assembled from parts of different cars. state is rejecting such punishment as There is an obvious need to change it. I the death penalty, which is de facto have talked to a number of specialists, confi rmed since 1998. This is what our experts in constitutional law, and they draft of the Constitution contains. Sec- also agree with this. ond, we introduce a principle of pro- However, there is a certain danger in portional-majority system of elections change as well. I fi nd it a serious mis- in our draft. If before, the previous ad- take to reconsider a Constitution in a ministration abandoned the system of hurry, in times of political crisis, and we proportional representation altogether, are making the same mistake repeat- now the Kyrgyz Republic secures it in edly. An attempt to hold a quick con- the Constitution. And third: the draft stitutional reform, prior to Presidential proposes merging the Supreme and elections, was the fi rst mistake. Constitutional Courts. In the political sense, a Constitution is a system of social contract for those Valentin Bogatyrev: Of course, the in power in terms of the setup of the Constitution is not a holy cow; it is noth- government and relations between the ing more than a legal form of social state and the individual, between the contract. The public has a right to de- state and civil society. There are three cide when and where the Constitution sides that make this type of social con- should be reconsidered. For example, tract: the individual, civil society, and in the U.S. the Constitution is reconsid- the state. It is clear that any manipula- ered not often, but we should remem- tion of the Constitution, any changes to ber that it was a newly created state, it, should be a subject of discussion by the citizens of which had a many ex- these three sides. I think that the Con- amples of social set up at their choice. stitutional Council is not the best fo- The U.S. Constitution was born out of a rum or form for this kind of discussion, mixture of different systems, whereas as it does not have formal distinctive- our current Constitution was created ness or procedural rules which would by a generation of citizens who grew suit everyone. Probably the most sus- in Soviet formats. Authors of the fi rst tainable form in this regard would be Constitution did not have the best in- a Constitutional Board, created and ternational experience in constructing working based on Constitutional norms a theoretical model; therefore, none of and laws. I think a Constitutional Board -26- its interestshavingno realconnection tation, withthosepeople whorepresent entirely arbitraryscheme ofrepresen- civil society, itparticipated throughan Cabinet –thatmany, andsoon. As for many members,President–thismany, the parliament,wasrepresentedbythis independent subject.JogorkuKenesh, branch ofpowerwasrepresentedasan jects ofthegovernment,wherebyeach sentation, whichwasinfavoroftwosub- infringement ontheprincipleofrepre- mistake oftheConstitutionalCouncilis thority, nothingmore. Thus, thesecond ity servicetothepublicwithinitsau- government, whichprovidesgoodqual- the realessenceandfunctionsof is thatthoseproportionsshouldre options aswell;however, themainthing representatives. There mightbeother number ofmembers,butproportions It isobviousthatitnotaboutthetotal in theConstitution. what willbewritten have toimplement agencies which interests, state sentatives ofstate groups; andrepre- ing certainsocial ciations represent- society, i.e.asso- sentatives ofcivil and needs;repre- speci resentatives ofcitizen’s interests,ofa of threeequal,proportionalparts:rep- tional Council.Imean,itshouldconsist setting upastructurefortheConstitu- – state”shouldbecomethebasisfor come themostimportantthings. al Councilanditsworkingformatbe- procedure forsettingupaConstitution- stitutional Council.Inthissituation,a that form,wehadtoworkwiththeCon- tutional Court.Sincewedidnothave could haveexistedinsteadofaConsti- CONSTITUTIONAL CHANGES:ISSUES AND PRECONDITIONS A triangle“individual–civilsociety fi c individualwithhis/herproblems tion. of representa- the proportion members, but number ofits not thetotal al Councilis Constitution- portant inthe cipally im- prin- What is fl ect dent toparticipateinthe the public. beginning itdidnotenjoythetrustof representation; therefore,fromthevery Council wasnotlegitimateintermsof ther. Inmyopinion,theConstitutional setting uptheConstitutionalCouncilei- However, thisoptionwasnotusedin cal, etc.)aredelegatedtotheCouncil. from eachelitegroup(business,politi- of elites.Forexample,representatives al Council:throughtherepresentation kinds ofinstitutionsastheConstitution- in de to participationingovernment. the Councilhavevoiced theiropinions. stitution, atleastuntil allmembersof ple approachestoreforming theCon- to speakonlyonprinciples andprinci- just managetheprocess.Heisallowed content oftheConstitution;heshould from expressinghisownopiniononthe content. The Presidentmustabstain moderator whodoesnotdealwiththe that hemustonlyactasamanageror this ideaseveraltimestothePresident, normal. Bytheway, Ihaveexpressed authority asthePresident. This isab- er membersoftheCouncilthroughhis the nation,ortoputpressureonoth- pass hisownopinionastheof is Bakiev, whohasanopportunity to dividual withaconcretename,which Constitutional Councilwehaveanin- than that. Thus, asachairmanofthe of powerasthepeople,andnomore he representsthesameabstractnotion but theentirenation. This meansthat in theCouncilanysinglesocialforce, popularly elected,doesnotrepresent cil. IsaythisbecausethePresident, work wasthethirdmistakeofcoun- in thesecondstageofCouncil’s contrary. ParticipationofthePresident to beamistake. As forme,Ithinkthe the workofConstitutionalCouncil Some Of course,thereisanotherapproach fi ning principlesforsettingupsuch fi nd thefailureofPresi- fi rst stageof -27-

KYRGYZSTAN BRIEF № 2 2

№ CONSTITUTIONAL CHANGES: ISSUES AND PRECONDITIONS

The President maintained this position work – targeted and requiring a high de- to some extent, and tried not to form his gree of professionalism in politics and opinion beforehand. He spoke up only law – everything resulted in discussing when they insistently called upon him peripheral remarks and suggestions, to be an umpire. This happened, for in- and then voting on them. stance, on issues like merging the posts That was absurd, even more so tak-

KYRGYZSTAN BRIEF KYRGYZSTAN of the President and Prime Minister, or ing into account the level of legitimacy on questions regarding the Constitu- of the composition of the Constitutional tional Court or the Russian language… Council. The second important stage However, I think he was forced to voice was completely omitted, that is, creat- his opinion, because he was directly ing an expert commission with partici- blamed for secretly regulating the proc- pation of foreign experts, which would ess of introducing amendments into the have to do a legal analysis of the Con- Constitution. stitution and then offer several drafts I think the Constitutional Council of the new Constitution. This is a very should have been chaired by one of the laborious part of the work, and it had public fi gures, or just a group of mod- to be done in a half year. Those drafts erators representing various sectors in should be submitted to the Constitu- the Constitutional Council. tional Council, which then works on the The most serious mistakes were fi nal draft, the one that will be submit- technological ones. As a technologist, I ted for a nation-wide public discussion. understand that in order to achieve re- Askar Akaev was very smart to skip this sults you have to set in motion a normal stage: fi rst there was a Constitution- process of constitutional reform, its full al Council, then there was an expert technological cycle. After having set up group, and afterwards it would be logi- a Constitutional Council, the fi rst thing cal to submit the draft to the Constitu- is to develop main principles of the new tional Council again to decide whether Constitution and to defi ne the format of the draft should be submitted to a ref- the constitutional reform. This had to be erendum or not. But he did not want to done before Presidential elections, so negotiate. He said: “I do not want to talk that candidates confi rmed their readi- to these people,” and just submitted the ness to follow these principles and their draft immediately to the referendum. intention to undertake a constitutional The most important thing was not reform. This stage of developing main done, and we see what the results principles was not missed, but on the were. We got three negative results. contrary, they decided to include the The fi rst is that we did not get a draft of whole process of constitutional reform the Constitution which would satisfy the within this stage. In such a hurry, lump- public and facilitate better governance ing everything together, they failed to in the country, or which would prevent do the most important conceptual work. authoritarian rule. Secondly, we got a We had to fi gure out what kind of Con- crisis-prone political situation, which stitution we wanted and then compare could bring about serious standoffs in it with what we had. We had to fi nd the the society, which now we will witness defects, which would then make clear unfolding. And thirdly, the image of the whether there was a way to change the President has been seriously dam- Constitution, and if yes, then how, or aged, and the people who worked with whether we should rewrite it and have him before and after March 24 are very a new one. Instead of doing this kind of disappointed. -28- before thenextelections. other constitutionalreformintwoyears were made,thenwecouldexpectan- based onmarketeconomy. This trans- come anewrulingstratum ofasociety attempt oftheformerSoviet elitetobe- transformation wasdetermined bythe been completed. The contentofthis the post-communisttransformationhas following obviousthing:the states forthelast15yearsshowed of thedevelopmentpost-Soviet ments foryoutoconsider. The overview versions emerge?Herearemyargu- forces way, inthecaseradicaldemocratic cal games. The are threescenariosforfurtherpoliti- legal spacetopolitical.Ithinkthere of theConstitutionhasmovedfrom to oneofthe sible thatthingswilldevelopaccording to acompromisesolution,oritispos- of theopposingsides. They maycome Everything willdependonthefortitude new draft–thissituationisatrade-off. President andPrimeMinisterinthe possible combiningoftheposts third scenario:thePresidentacceptsa do muchgoodforthecountry. And the consequences ofthisscenariowillnot in dissolutionofJogorkuKenesh. The cause aconstitutionalcrisisandresult cal draftoftheConstitution,whichmay drafts, theparliamentwilladoptaradi- tation betweentheauthorsofvarious is that,asaresultof deal withforanotheryear. The second have alengthy, permanentreformto es. Incasethedraftisrejected,wewill proposed draftwithinsigni Jogorku Keneshadoptsorrejectsthe ther developmentsdependonwhether without anysigni everything remainsthesameasitis, CONSTITUTIONAL CHANGES:ISSUES AND PRECONDITIONS Zainidin Kurmanov: Presently, thesituationwithdraft fi nd thatnosuf fi rst twoscenarios. Any- fi fi rst scenarioisthat cant changes.Fur- Whydoradical fi cet changes cient fi erce confron- erce fi cant chang- fi rst stageof tion inbothpoliticaland economicar- their dominationbyrestricting competi- Elites usedthissituation tosafeguard olized byanarrowgroup ofnewelite. while powerandpropertyweremonop- was forcedtofocusonjustsurviving, trol sincethemajorityofpopulation were virtuallyremovedfrompubliccon- space. ization anddegradationofthesocial modern economy, infurthermarginal- gions stayedoutoftheactivity etc. Entiresocialgroupsinsomere- welfare, managingmoderntechnology, as wellinequityinaccesstosocial mation andthemassofpopulation who pro income disparitygrewbetweenthose entwined withgovernmentinterests. An tional elites.Businessinterestsclosely of narrowgroups,clans,andnewna- power wasconcentratedinthehands velopment ofourcountry. Essentially, permanent andrestrainedfurtherde- lems andcontradictionsthatbecame social orderbroughtaboutnewprob- och. However, theemergenceofanew cessfully writeoff thecommunistep- human rights. All ofthishelpedtosuc- servance of law, andob- ity beforethe powers, equal- separation of democracy, by slogansfor accompanied mation was this transfor- the sametime, nist system. At old Commu- return tothe impossible to which madeit scale privatizationofthestateproperty, formation wasmadethroughlarge- Bureaucratic governmentinstitutions fi ted fromeconomictransfor- Strana party. tion CounciloftheMoya member oftheCoordina- Zainidin Kurmanovisa of JogorkuKenesh. the Legislative Assembly In 2000-2005–memberof University. Kyrgyz-Russian Slavic of theLawdepartment In 1997-2000–Professor Expert ofUNDP-Bishkek. Zainidin Kurmanov -29-

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eas. This policy led to the emasculation growth. At the same time, econom- of democratic principles and proce- ic growth increased the expectations dures, and the emergence of the phe- of the entire population, especially of nomenon of double standards. Exten- those the impoverished. sive use of administrative resources and media manipulation allowed the New conditions promoted sensibility

KYRGYZSTAN BRIEF KYRGYZSTAN ruling elite to regularly achieve the re- towards clannish government, its lack sults they desired during elections and of accountability and highly bureaucrat- referendums, thus discrediting the most ic nature. As a result of the monopoliza- important democratic procedures. As a tion of power by a few individuals, gov- result, we got a social order with pro- ernment became a family affair, and nounced inequality in the distribution of favoritism led to a serious shrinkage power and property, lack of social bonds of the regime’s social basis. Layers of between groups, and lack of system of dissatisfi ed gradually emerged among public control over the activities of the the political elite and the clans who lost President or his circle, or over other offi - their infl uence over government deci- cial authorities. This order turned out to sion-making; among business circles be internally conservative, and instead faced with serious diffi culties in devel- of being oriented toward further devel- oping their businesses and with threats opment of the country, it was oriented of takeover by the ruling family and their at self-preservation and at strengthen- favored people; among the democratic ing the positions of the ruling elite. The community, which was observing back- social passiveness of the population sliding on democratic goals and val- gave way for the creation of a social ues; and among youth organizations, system of authoritarian, clannish gov- because of the lack prospects for pro- ernment. The burden of adjustment to fessional and personal growth. A com- new realities suppressed the interest of bination of the protests of these groups the population to participate in political against the arrogance of the elites and and social activities, allowing the ruling their unwillingness to change, to enter elite to impose its own agenda, which into a dialogue with the society, or to was presented as an inevitable choice respond to public inquires and chal- between bad and worse options. As a lenges through established democrat- bad option, the administration present- ic procedures, resulted in total aliena- ed itself as unjust, thievish, ineffective, tion, and created critical conditions for but able to maintain stability in the so- revolutionary changes. Activities of the ciety and provide opportunities for the opposition were constantly restrict- people to survive. The worse option ed; mass media was persecuted; and was attributed to opponents of the re- there was only one way – to play out gime: radical opposition, fundamental- a revolutionary scenario. And so it was ists, nationalists, destructive elements that revolutionary events were caused and so on. They were associated with by mass falsifi cations of the elections instability, chaos, civil war, and political in Georgia, Ukraine, and in our country. repressions. The 21st century has been Gradual movement towards authoritari- marked with economic growth in our anism and deviation from constitutional country as well as in the entire post-So- checks and balances towards extraor- viet space; however, given the estab- dinary powers for the President led to lished social order, only narrow groups a situation wherein government agen- have reaped the benefi ts of economic cies, courts, and law enforcement bod- -30- Another basicshortcoming isadualism net. We donot havethisinoursystem. sponsibility forthework oftheCabi- dent isstrengthenedand hebearsre- litical force,thenthepowerofPresi- the parliamentrepresentsamepo- President, Cabinetandthemajorityof for theworkofCabinet.Incase and thePrimeMinisterareresponsible in adifferent camp, boththeparliament political forceswinandthePresidentis forms ofgovernment.Incasecertain as exampleswithpremier-presidential and otherstateswhichwemaymention work oftheCabinetinFrance,Poland, el. Itisclearwhoresponsibleforthe ference fromasemi-presidentialmod- the Cabinet’s work. This isthemain dif- – itisaboutalackofresponsibilityfor between thePresidentandparliament ernment isnotaboutdivisionofpower presidential-parliamentary formofgov- successful bythesamescholars. A of governmentisfoundtobetheleast I justwanttoaddthatourcurrentform not goingtocountalltheadvantages; as oftenpresidentialforms.Iam ry formsofgovernment“survive”twice countries. Inpoorstates,parliamenta- work andbesustainableeveninpoor countries, parliamentarysystemsmay ern studiesbasedonanalysisof135 and morepoverty. According tomod- try alwaysgiveswaytodictatorship amples ofthat.Povertyinapoorcoun- viet states.Ourneighborsaregoodex- largely truefortherestofpost-So- ian regimesinCentral Asia, anditis serve atendencytowardsauthoritar- tures toitthannegative.Onecanob- tures, buttherearemorepositivefea- has, undoubtedly, certainnegativefea- men insteadofprotectingthem. and persecutedcitizensbusiness- failed toexecutetheirprimaryfunctions, tion andprofessionalincompetence, ies wereparalyzedbysystemiccorrup- CONSTITUTIONAL CHANGES:ISSUES AND PRECONDITIONS A parliamentaryformofgovernment new con ble system,whichwillalwaysgenerate manent struggle;thisisaveryunsta- Cabinets whichareinastateofper- tion inreturn.Essentially, wehavetwo tried toachievethisandgotarevolu- sentatives inparliament. Askar Akaev forced tohavepro-presidentialrepre- implement apolicy, thePresidentis to thePresident.Inordersecureand the fullsubordinationofparliament dualism? Itcouldfunctiononlyunder lic functioninasituationofgovernment liamentary repub- a presidential-par- course, howcould the President.Of parliament and power between nent strugglefor all aboutaperma- Soviet historywas teen yearsofpost- to becomeaspowerfulpossible.Fif- two institutions,aseachofthemtries for inherentcon on behalfofthepeople. This isasource President, whoareempoweredtoact elected institutions,parliamentand of government;wehavetwopopularly very dif ditions, trends,andpreconditions.Itis tion historical,cultural,andnationaltra- ment, weshouldtakeintoconsidera- new socialtensions. that therewasnocentralized govern- considerable partofour historyshows had existedinKyrgyzstan initially;a well knownthataform ofdemocracy of Kyrgyznationaldevelopment.Itis the centuries-longhistoricalexperience tions dowehave?Firstofall,have and Ferdinand MarcosinthePhilippines, in Venezuela, Alberto FujimoriinPeru, ample forthat,butalsoHugoChavez ry state.Kyrgyzstanisnottheonlyex- President inapresidential-parliamenta- While choosingaformofgovern- fi nally, Uzbekistan.Whatprecondi- fi cult togetridofanunpopular fl icts andpushthecountryto fl icts betweenthese President. ment andthe tween parlia- for powerbe- nent struggle about aperma- history wasall of post-Soviet Fifteen years -31-

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ment or monarchy, bureaucracy as a alized. The interests of various social or class, or other institutions. Afterwards, ethnic groups are ignored. However, all for more than 150 years we lived as of the above mentioned problems are part of a European state, the Russian taken care of in a parliamentary form Empire and Soviet Union. The latter al- of government, which tends to be more so had a specifi c parliamentary repub- democratic in this sense.

KYRGYZSTAN BRIEF KYRGYZSTAN lic, where according to the law the su- The seventh factor is a relatively high preme power belonged to a Supreme level of literacy and development of civ- Council, although in reality it belong il society. Many people say that political to the Central Committee of the Com- parties have not matured yet. However, munist Party of the Soviet Union. Fur- we do have about fi ve to six relative- thermore, we have little territory and a ly big political parties, and this is suffi - relatively small population, which is the cient in principle; we do not need all 60 size of one oblast of Russia or maybe parties to develop and be on a par, as even of Kazakhstan. that is impossible in the fi rst place. The I would like to point out that our presence of numerous groups of inter- President has too many legislative and ests and the highly confl ictual situation non-legislative powers. For instance, a in the society, the absence of a siz- French President has only two legisla- able middle class, abject poverty of the tive powers, whereas our President has population, unemployment, and gender seven legislative and twelve non-legis- problems – these problems must be re- lative powers. Probably only the king solved in the nearest future. The public of Saudi Arabia has more power. This can no longer tolerate a corrupt system is the issue: why should a President of which is supporting only one person’s such a small country like ours be given rule. It is necessary to boost the pro- superpowers? cess of political In our country we The fourth factor is an acute shortage and economic should not have of time. Reforms have been carried out modernization. one ‘highest’ of- for the last twenty years in our coun- This is also one fi ce, because if it try, whereas a new country was built in of the precondi- is a representa- twenty years in Malaysia. As for us, we tions: it is neces- tive of the South, have been experiencing endless prob- sary to utilize the then northerners lems and confl icts over the last twenty capacities and are unhappy, and years. The fi fth is the ample opportuni- potential of the vice versa. ties provided by the age of information: opposition in vari- real-time communication, shrinking dis- ous spheres of government. It is essen- tances, opportunity to make use of the tial that we promote a democratic po- latest achievements in political thought litical system, encourage the activities – all of these opportunities allows us to of political parties and civil society, and move forward without having to wait for overcome the political consequences an evolutionary stage of development. of tribalism and regionalism. These in- The sixth is that our country is a multina- stitutions start to form quickly under a tional state with pronounced segmental parliamentarian system, increasing the features. In these circumstances, it is availability of charismatic leaders, most very important that the winner gets ev- of whom are now out of the game. We erything. In a presidential-parliamentary have a north-south division in the coun- republic, the President gets everything try, and patron-clannish relations. Thus, while the opposition becomes margin- in our country we should not have one -32- favored peoplemayresult intheproce- any affairs relatedtohischildrenor be accountabletothe parliament,and mentary republicthePrime Ministerwill very end. At the same time,inaparlia- would standforthePresidenttill there willalwaysbe impeachment isimpossiblebecause countable toanyone. The institutionof ry formisthatthePresidentnotac- vantage ofapresidential-parliamenta- executive branchofpower. The disad- son responsiblefortheactivitiesof tive andheorshewillbetheonlyper- Prime Ministerwilltakeovertheexecu- opinion isabsolutelyunfounded,asthe and theexecutivewilldisappear. This dent willbecome“anEnglishQueen” in aparliamentaryrepublicthePresi- tary system. There isanopinionthat about theadvantagesofaparliamen- should notbeasinglehighof or SpeakeroftheParliament,butthere you arewelcometobeaPrimeMinister a goodPresidentandpeopletrustyou, for Turkmenbashi anymore.Ifyouare long hispowers. This isnotaheadache Karimov isalsothinkingofwaystopro- next termthroughoutthelast5years. ly withattemptstobereelectedforthe because President Akaev wasbusyon- other term. This isastumblingblock, stricted abilitytowinelectionsforan- the nearest Asian states,haveunre- names. Headsofstate,presidents tion of Akaev’s regimeunderdifferent stage wearewitnessingtherestora- repetition atthemoment,sincethis ology ofourcountry. We areafraidof tional law–aconstitutionisanarche- tween thebranchesofgovernment. Power shouldbeequallydividedbe- tor shouldalsobetakenintoaccount. are unhappy, andviceversa. This fac- tative oftheSouth,thennortherners high of CONSTITUTIONAL CHANGES:ISSUES AND PRECONDITIONS According toexpertsinconstitu- I wouldliketotellyouonemorething fi ce, becauseif itisarepresen- fi ve peoplewho fi ce. a Constitutionshould be introducedto endum issues,i.e.he decides whether tution, theheadofstate de that accordingtothe presentConsti- such elections? When doyouthinkitispossibletohold an electorate. candidates towinillegallybygrafting Hence, itwillbemorecomplicatedfor they willconstantlybethinkingofthis. have tobeelectedagainintwoyears, and ful be busiertakingcareoftheirelectorate lition. Thirdly, singlemandateMPswill have tojoineithersomepartyorcoa- ly, duetotheirsmallnumberstheywill steel alotinonlytwoyears.Second- tage oftheirMP privileges–onecannot years. This waytheycan’ttakeadvan- must leavetheirpositioneverytwo of amixedformandsinglemandate liament memberselectedonthebasis I suggestedthefollowingscheme:par- not passintotheConstitutionproject. tem. Unfortunately, mysuggestiondid gested tocomplicatethebriberysys- tional basis. This varianthasbeensug- ing majoritywouldbeelectedonpropor- mandate districts,sothatthedominat- be electedbyamajorsysteminsingle 30% oftheseatsinparliamentshould in theworkinggroupthatnomorethan in theConstitution,butitwasdiscussed will beallocatedthroughapartylists? proportion oftheseatsinparliament judgment. my arguments,whichIpresentforyour ner andheedpublicopinion. These are tive branchwillbehaveinaproperman- Prime Ministerasaheadoftheexecu- dure ofimpeachment.Inthiscase,the Marat Kaiypov: Ainagul Abdrakhmanova (IPP): Ainagul Abdrakhmanova Marat Kaiypov: Kumar Bekbolotov(IWPR): fi lling theirpromises.Sincethey This isnotindicated You areallaware fi ns refer- nes

What -33-

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referendum or addressed to the parlia- aware of power that he would have as ment. He had no doubts on parliament the head of state and of the executive ad interim; he is still working with it. I branch. I mean, the government has to think he will introduce some amend- be under his control; he is commander- ments to the parliament. In case the in-chief of the Kyrgyz Republic. He won parliament approves the draft, we will people’s trust and the presidential man-

KYRGYZSTAN BRIEF KYRGYZSTAN see if it contains a proportional system date, and I would consider his resigna- for elections. Then we can talk on fur- tion as a betrayal. ther steps. Meanwhile we cannot say when it is going to happen. Zainidin Kurmanov: That is a prob- lem of morality. Rakhat Mamytkojoev (“Erkin Kyr- gyzstan” party): I have one question Marat Kaiypov: No, I do not think to Marat Tashtanovich as a lawyer. In so. One must not treat the people who what way will elections take place – will elected him like this. After all, he was parties run independently, or will some elected as a President for fi ve years. of them be able to unite into pre-elec- tion blocks? Zainidin Kurmanov: Yushchenko, for instance, agreed to reduce his pow- Marat Kaiypov: Yes, they will be able er. to unite and act as a bloc. Marat Kaiypov: Yushchenko’s policy Rakhat Mamytkojoev (“Erkin Kyr- and electoral campaign initially aimed gyzstan” party): Let’s say they pass at reducing presidential powers, unlike into the parliament as a bloc and col- Bakiev’s. As for Bakiev, he did not do lapse afterwards. Then the same thing that, but accepted the ideas of his ar- that we have under the majority sys- dent opponents related to a constitu- tem happens again: no discipline, no tional reform. rights. In my opinion, the form of govern- Marat Kaiypov: This is a worldwide ment does not depend on the country’s practice. Many parties unite during welfare or its economic development. elections to gain the votes of electors. I It depends on the controlling mecha- think this is normal. nisms that we set up over ruling individ- uals. If we want to save a presidential Shairbek Juraev (IPP): As a gov- form of government, then we need to ernment representative, what do you let it work instead of constantly criticiz- think about changing the form of the ing it. We need to think out a mecha- government? nism whereby the form of government is transparent, and not corrupt. Marat Kaiypov: First, I am an adher- In case we want a parliamentary form ent of consistent steps. The people of of government, then, as was already Kyrgyzstan elected Bakiev as a pres- discussed, we need to wait until 2010. ident with all that scale of power that The reason is very simple: the current is provided by the present Constitu- President was elected by the people tion. People voted for him since they while holding all the power that he had trust him and believe that he will pull at that moment, and it is impossible just the country out of crisis. People were to throw him out until his term is over. -34- branch aswellhead oftheCabinet. The Presidentishead oftheexecutive dents haveinthepost-sovietstates. Cabinet. LookwhatpowersthePresi- to cancelanyresolutionspassedbythe government, tochairtheCabinet,and Chief; heisempoweredtodismissthe selves ruleaspresidents. work totheCabinetwhiletheythem- net inordertoshiftresponsibilityfor Prime MinistertogetherwiththeCabi- Turkmenistan. They setupthepostof rimov inUzbekistan, Turkmenbashi in tries: NazarbaevinKazakhstan,Ka- same peoplearestillrulingtheircoun- and thenameplatesontheirdoors. The then leadersjustchangedtheirchairs years beforethecountrycollapsed,so authority toSovietsapproximately crisis). Communistshaddelegatedtheir the USSRcollapsedduringaserious of theCabinet(takingintoaccountthat want totakeresponsibilityforthework leaders ofpost-Sovietrepublicsdidnot peared inthepost-sovietperiod. The the theoryofconstitutionallaw;itap- is nopresidential-parliamentaryformin liamentary formofgovernment. There vented –theso-calledpresidential-par- the newformofgovernmentthatwein- in laws. main principles,andtherestiswritten the futureofstate.Itcontains was writtenforfuturegovernments, into theConstitution. This Constitution that certainpersonalpowersbewritten no Presidentorof There isonlyonereason:therewas been changedforsomanyyears? that hehasnow. agree tosimplyresignalltheauthority term. Moreover, Ithinkhewouldnot The Presidentmust CONSTITUTIONAL CHANGES:ISSUES AND PRECONDITIONS Ainagul Abdrakhmanova (IPP): Ainagul Abdrakhmanova A Presidentis aCommander-in- By theway, letmesaysomethingon Why hastheU.S.Constitutionnot fi cial, whodemanded fi nish his nish fi ve-year fi ve

vise certainspheres. ously thestatecounselors whosuper- now itistheministers andsimultane- Secretaries oftheCentral Committee; tion withtheCabinet.Before,itwas supervising certainspheresinconjunc- the so-calledstatecounselors,whoare model. results whileweareusingthiskindof is verylikelythatwewillhavesimilar for-beating incasetheprojectfails.It Minister whoalwaysbecomesaboy- projects, buttheyalsohaveaPrime Actually, heisresponsibleforsome is simultaneouslyheadoftheCabinet. form ofgovernment,buttheirpresident Uzbekistan, theyhaveapresidential government. see thatwehaveapresidentialformof ister. Butifwedidthis,everyonewould tween thePresidentandPrimeMin- due tothatnotoriousagreementbe- executive. However, thiswasnotdone, wardly thatthePresidentishead bicycle, butwritingdownstraightfor- Therefore, Isuggestnotreinventingthe out thatheheadstheexecutivebranch. we transferPresident’s power?Itturns ment istheCabinet,thenwhereshould dent appearsonthislist.Ifthegovern- tive, andjudicial.SuddenlythePresi- the KyrgyzRepublic:legislative,execu- There arethreebranchesofpowerin separation ofpowersisakeyone. accident happened. ernment wasreplacedeverytimesome were severalcasesinwhichthegov- responsible. Forthelast11 years,there fact, itisthegovernment,whomore bear responsibility, butasamatterof What aboutresponsibility? Valentine Bogatyrev: Zainidin Kurmanov: Article sevenoftheConstitutionon Marat Kaiypov: The Presidentmust There arealso In neighboring

-35-

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even more power than the ex-President Rakhat Mamytkojoev (“Erkin Kyr- Akaev had? Is it necessary to specify gyzstan” party): How is it possible to all of these powers in the Constitution? restore people’s trust in the process Thank you. that was lost during the last events? Zainidin Kurmanov: We were mak-

KYRGYZSTAN BRIEF KYRGYZSTAN Valentine Bogatyrev: There are ing very careful and well-balanced ways to improve the situation, of suggestions at the very beginning of course. First, all of the work done by the work of the Constitutional Council. the parliament, by its radical-demo- We were just asking the President to cratic group, is to be presented to the refuse powers that can lead to turning Constitutional Council again. They will the country upside-down, for instance, work further with this version, not with the President’s authority to introduce the truncated version that was suggest- amendments to the Constitution, which ed to nation-wide public discussion. It was the most crucial law allowing is necessary to return to a zero read- Akaev to use his power just the way he ing and start discussing all proposals. liked for the last 15 years. Kazakhstan All of them are noteworthy, to be con- is a powerful and huge country but sidered, but I doubt that anyone would even its President Nazarbaev does not like to start this process, because it is a have powers for law making. It would political battleground. As usual, we will be good if our President made a choice have authorities bargaining. This is our to refuse at least this power. Absolute problem, because in this way we do not power corrupts an individual absolute- solve troubles, but on the contrary pre- ly; this is known to everyone from an- serve and redouble them. People’s trust cient times. If one individual concen- in the authorities decreases when they trates absolute power in his/her hands demonstrates unwillingness to give up (especially without any political organi- their power and do not want to move zation or any program goals), then the towards democratization. power is generally transferred to illegiti- The situation can be improved only mate institutions. We have a parliament by a cardinal decision. Let’s say the and a Cabinet; however, decisions are President would address the parlia- made by the President’s daughter, son ment with: “give us your decision, and or son-in-law. Since he cannot man- let’s vote for it”. I think that in this case age all his powers, he starts delegating the situation could be improved. But them to his relatives and friends. This this is a suicidal project for him and for is our trouble. It was like that under Kulov, as well as for all those who hold Akaev, and we still face the same prob- executive power at the moment. There- lem. Akaev also was a good President fore, they dare not do that. at the beginning; I was happy in all sin- cerity when he was elected. Later how- Aibek Suyuntbekov (“Alga, Kyr- ever, we could not fi nd a way to get rid gyzstan!” party): In article 53 of the of him, and had to resort to a rebellion. new draft of the Constitution, it is writ- Any other President can suffer from the ten that the rights of an ex-President same fate. Therefore, it is necessary to are additionally established by a law. create a constitutional model that would Are not you afraid of the fact that af- not allow us to go back to that past, so ter the referendum, the President will that there will not be a new tragedy dur- surreptitiously sign the law giving him ing new times. The authorities must be -36- question: whyareyou teachingthem, for ministersareconducted, Ialways frequent replacement. Whentrainings teach theauthorities;they aresubjectto work onarguments. to heareachother, tonegotiate,and teraction, acquiringskillsandtheability ess ofworkingoutmechanismsforin- issue atall.Ithinkweareintheproc- In myopinion,thisisnotalaw-making so thatyoucanliveyourpeacefullife. will begrantedahigherpension,car, power. IfyouareagoodPresident, throw youawaytogetherwithallyour If youareabadPresidentpeoplewill that nowthereisnoguaranteeatall. rent draftoftheConstitution. You see why itisreferredtoinalawthecur- ex-President intotheConstitution,and question onincludingpowersofthe considered. and onlyinternalargumentsmustbe No situationisuniquetoKyrgyzstan, not serveasanargumentinthiscase. suppose internationalexperiencecan- topic todiscussinthismatteratall.I to steel. cess toproperty, tocontrol,rob,and a ruler, toreignsupreme,haveac- prolong personalpower, tostayonas only onepurpose,hiddenfromus–to since forever. All ofthiswasdonewith has beenaproblemfortheircountries Presidents intermsofpower, which dent isevenaheadofLatin-American age andbearresponsibility. Ourpresi- because theyareempoweredtoman- institutions, theparliamentandCabinet, them mustbetransferredtolegitimate of oneindividualwhofailstoexercise nary powersconcentratedinthehands ble, andtransparent. responsible, undercontrol,accounta- CONSTITUTIONAL CHANGES:ISSUES AND PRECONDITIONS My opinionisthatitimpossibleto However, Iwouldliketoanswerthe Valentine Bogatyrev: We seeonlyoneway:theextraordi- I donotseea the eventsofMarch24 led peopleupablindalley, and constitutional reforms. All thesereforms pening atthemomentisaresultoffour tional? would maketheparliamentdysfunc- think theabsenceofastrongPresident other divisionsinoursociety, doyou consideration regional,clannish now: thepresidentwas replaced,but parliament. Lookwhat ishappening majority outof Akaev’s adherentsinthe be solvedwashowto create aquali disgrace, becausethemainproblemto the lawwereactivelyinvolvedinthis agencies thataresupposedtoprotect violation, withweldingpeople?State Who wasbusywithfalsi is veryanxiousaboutelectionresults. tions. The reason isthatthePresident will neverprovidehonestandjustelec- is different fromamajoritysystem. since asystemofproportionalelections the riskwillconsiderablydeceased will againberepresentedbyclans,but solutely excludetheriskthatparliament of electionislessrisky. We cannotab- tary republicwithaproportionalsystem changed considerably. a personlot;forexample,Kulovhas fortunately, powerfulpositionschange one else. The restwasthrownout.Un- beliefs, whichwereformedbysome- in thetextthingsthatcoincidedwithhis text butreaddifferent things.Hefound when webothwerelookingatthesame years, andwitnessedaphenomenon need it? nology –whyintheworldwouldthey they havenoidea–managementtech- ver theyaretaughtthingsaboutwhich they willbereplacedtomorrow?Moreo- Zainidin Kurmanov: I wouldarguethatthepresentsystem Shairbek Juraev(IPP): I workedwith Akaev foralmostthree th fi cation andlaw . AParliamen- What ishap- Taking into fi nally to , -37- and fi ed

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№ CONSTITUTIONAL CHANGES: ISSUES AND PRECONDITIONS

the system remains the same. Again fa- Bogatyrev has said, our President is vored individuals have appeared close not subject to re-education. As long as to the President; the factor of family has there is no earnest political market with come forth; a process of property redis- earnest and real competition, it is hard tribution is going on; and we know who to talk of bringing up political leaders. are favored in electoral districts.

KYRGYZSTAN BRIEF KYRGYZSTAN Our constitution is always written for Elmira Nogoibaeva (Internation- someone. However, it needs to be writ- al Institute for Strategic Studies): It ten for the country, for the citizens. A seems to me that while discussing, we Constitution is not to be written by the have not solved the main issue: who or authorities, and government members what will lead the country out of crisis? are not to participate in the Constitu- Valentin Borisovich said it could be civil tional Council. The Constitution should society and Zainidin Karpekovich does be written by specialists in constitution- not agree. Is it possible to voice any ar- al law. I agree that it needs an inventory guments on civil society? in order to fi nd out what are the prob- lems and tragedies of our Constitution. Valentin Bogatyrev: I think so just Where are our lawyers? Where are because now, for instance, I am dis- our counselors who were supposed to cussing these problems with those who suggest this way so that it did not turn want to change the situation. There are into a bazaar? The Parliament started many of such people, and their num- to force this process because revolu- bers are growing. Therefore, I think this tionary enthusiasm decreases quickly, is the only instrument. No one but the and it was obvious that the President civil society with all its sectors – analyti- was not going to change anything. The cal elites, NGOs, mass media – is able President is not an expert; he may be to counteract the government. It was al- unaware of many things. Besides, as ways like that. Otherwise, it will be an external power. Someone from the out- side will have to establish order.

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Civil service today: problems and solutions №

Civil service today: problems and solutions

The political events that unfolded after the “Tulip revolution” have exposed prob- lems regarding the competency and civic responsibility of government employees at all levels. KYRGYZSTAN BRIEF KYRGYZSTAN Esenbek Urmanov1

If previously this problem was com- of power should depend on the level of pensated because the population had professional training of the staff. not run out of patience, and the short- In Kyrgyzstan, in order to join the gov- comings of government were “forgiven” ernment one has to meet the require- in the hope of achieving positive chang- ments of the “old gentleman’s club”: es in the long-run, then at the moment personal loyalty, friendly association the situation has been exacerbated. with people from the same area, nepo- The disgraceful end of Akaev’s rule has tism, and “solvency.” destroyed the public’s patience, and It is no secret that the problem has today time is already playing against become systemic: those who join the the new administration. Rhetoric and government in order to serve the pub- dogma, which have been used in the lic, who openly in practice reject nepo- past by the leadership of the country to tism and bribery, cannot make a good cover up nepotism and a lack of profes- and progressive career. A great defi cit sionalism in personnel policy, should of educated and competent personnel, be replaced in the nearest future with adequately prepared to face the chal- specifi c actions intended to bring spe- lenges of the day, threatens Kyrgyzstan cifi c results. with the prospect of becoming a failed Now there is an understanding that state. government bodies, as decision-mak- It is impossible to solve this problem ing centers, are in dire need of com- immediately, of course. Such aspects petent and responsible employees. of the problem as nepotism and bribery Since government decisions affect the are manifestations of the general cor- entire society and are aimed at provid- ruptibility of the system and society, and ing citizens with public goods and cre- they require consistent reforms with a ating conditions for the realization of long-term perspective in education and their rights and freedoms, then public performance of the government, as practice itself requires that all decisions well as incorporation and strengthening made by government bodies be of good of market mechanisms in the govern- quality, feasible and productive. ment. However, the problem of educa- Decisions are directly depend on the tion and competency is forced to the quality of human resources. Ideally, background by a number of primary is- there should be a concentration of the sues, the solution of which could con- best staff in government agencies, and siderably improve the situation with hir- appointments in the executive branch ing personnel in government agencies.

1 Esenbek Urmanov, Public Relations Manager with the Bishkek Business Club, is a participant of the “Policy debate and good governance” project. This is the second essay in a series of articles by participants of the project.

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№ Civil service today: problems and solutions

The following could be listed among result in exacerbation of the systemic these issues: crisis in Kyrgyzstan. • Low salary of civil servants. To- Furthermore, the crisis is aggravated day civil servants cannot have a salary by the fact that high-ranking offi cials which could be adequately compara- still do not have clear and specifi c goals ble with salaries at commercial compa- that are understandable to the public or

KYRGYZSTAN BRIEF KYRGYZSTAN nies and international organizations. A to mid-level offi cials. The VIPs should low salary forces people to use budg- identify what direction Kyrgyzstan is etary funds illegally or to sell informa- taking and what our end goal is as soon tion within their jurisdiction. According as possible, say, in the next ten years. to data from the National Statistical Another part of the problem is that the Agency, as of December 1st, 2005 the government is virtually detached from average cost of living is 1,843 soms per the public. It exists by and for itself, and month nationally, whereas in Bishkek it is not aimed at serving the needs of citi- is 1,943 soms. Presently, employees of zens. ministries make 1,200 to 1,600 soms Thus, now we can already see po- per month. As a comparison, employ- tential risks for Kyrgyzstan. ees of NGOs, depending on rank, re- First of all, ineffective government ceive from 100 to 300 USD per month, could result in the loss of the country’s and employees of international organi- independence, if not de jure then de zations make from 200 to 800 USD, al- facto. This situation could be caused so depending on their rank. It is obvi- partially due to the incompetent work ous that the situation with remuneration of local and central government agen- in government agencies is unenviable: cies, by which some parts of the coun- the salary of an employee in a ministry try fall under the material, commercial is below even the average cost of liv- and informational infl uence of neigh- ing. boring states. On the other hand, the • Instability of work in government current personnel chaos on the top lev- agencies. Personnel reshuffl ing is done el of government could be bring about because of voluntarism and the ambi- a situation whereby certain ambitious tions of political appointees, whereas in politicians, in search of political sup- stable countries civil servants become a port, seek assistance from the infl uen- stably-functioning social stratum. Every tial political circles of other states. All of newly appointed offi cial in Kyrgyzstan this cannot but concern us! brings along “his own” people and cre- Secondly, persistence and function- ates a corporate culture which favors ing of the political system inherited from him. the Soviet epoch and Akaev’s rule will • Absence of guarantees for pro- give way to, not prevent, new dictator- motion and lack of prospects. Civil ships – if not of one person then of a service does not guarantee a desir- ruling clan. The country is not rich with able career or high reputation. Moreo- natural resources, which could com- ver, civil servants as a social group are pensate authoritarian rule, which the the most unprotected in legal and social administration could rely on while solv- spheres. ing socio-economic problems. The only It is obvious that lack of attention to resource of the country – its citizens, these problems of governance could their entrepreneurial spirit and creativ- -40- 2

Civil service today: problems and solutions №

ity, their energy and courage – could sions of special services and the mili- work only under a policy of non-inter- tary) should be considered illegitimate. ference from offi cials. In this way, it is possible to eliminate Thirdly, persistence of inconsistent, management practices which serves unclear personnel reshuffl ing threatens the interests of offi cials. It is also nec- to aggravate the social tension, fraught essary to establish control over the with a “new revolution” accompanied implementation of norms of legislation, BRIEF KYRGYZSTAN by new lootings and redistribution of which requires entrance to the civil ser- resources (property), which the coun- vice through merit-competition. try will not likely endure. In addition, in a short-term perspec- tive – it is advisable to reconsider the What could be recommended under current administrative-territorial division these conditions? of hierarchy: heads of oblasts and ray- ons and their staff deal with issues that In a short-term perspective – it is ad- the local self-government could suc- visable to intro- cessfully handle. Thus, there should be As the best man- duce norms that a reduction of the staffs of offi cials. It is agement technol- bind government essential to delegate government func- ogies at the mo- agencies to make tions to local self-government as much ment, procedures decisions in the of public policy as possible. All of this should result in format of public allow the public releasing budgetary funds to raise the policy. Proce- to infl uence de- salaries of civil servants several fold. It dures of public cisions made by is also essential to determine the form policy, the best government offi - of government: presidential or parlia- management cials and to con- mentary. As management practices technologies at sult them. in our country have demonstrated, a the moment, al- mixed form of government allows the low the public to infl uence decisions President, Cabinet and parliament to made by government offi cials and to avoid responsibility for the implementa- consult them. State policy concepts, tion of government policy. This system laws and resolutions made by authori- inevitably leads to the creation of par- ties, should be determined in certain allel administrations, parallel depart- spheres with mandatory participation by ments and offi ces in the administration interested parties. During the process of of the President and Prime Minister’s employing procedures of public policy, Offi ce, both bodies being presented as the positions of such parties are heard executive agencies. Based on natural and coordinated; analytical reports are managerial needs, both the President prepared which present variant plans and Prime Minister set up the structure and the anticipated consequences of of their staffs, hire staff, assign duties implementing each alternative. The and tasks, etc. Moreover, the staffs advantages of decisions made in the grow in size due to attempts of VIPs format of public policy are observation to supervise all spheres of public life and realization of the interests of the according to Soviet tradition. For this public, of the citizens of the country. reason, the public has to realize that, Consequently, decisions made outside given scarce resources, maintaining the format of public policy (except deci- these structures of the state machinery -41- 2

№ Civil service today: problems and solutions

and organizing their work bears heavily servants. A useful compulsory measure on the national budget, and therefore could be the withdrawal of government on taxpayers. offi cials who represent the generation In a long-term perspective – it is es- of the 40s and 50s of the previous cen- sential to introduce special legal norms tury. The values and knowledge of this which will protect the administrative staff generation do not meet the challenges KYRGYZSTAN BRIEF KYRGYZSTAN of government agencies, including the and realities of the present day. Their post of deputy minister, from arbitrary attitudes to many phenomena in the political appointments, and to provide society, their thinking and decisions, a high level of social protection for civil contradict the interests of the public.

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