Kyrgyzstan Local Politics - The Times Of Central Asia

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Traffickers of Human Organs Detained in Kyrgyzstan

The State Committee for National Security (SCNS) of Kyrgyzstan has detained members of an international criminal group at Manas Airport. The criminals had organized a black-market channel for the illegal sale of human organs abroad. All detainees are citizens of the Kyrgyzstan. According to the investigation, the criminal group looked for patients in foreign clinics who were willing to pay large sums of money for the transplantation of a healthy organ. The gang then found donors in Kyrgyzstan, who were fraudulently induced into undergoing organ-harvesting operations. "Donors necessarily underwent a medical examination, where, regardless of [their overall health], always issued a positive conclusion, after which the organizers through corrupt schemes made false documents on the relationship with the patient necessary for submission to the clinic, where the operation will be held," said the SCNS. Investigators found that the donors received between $1,000 and $7,000 for their kidneys. The recruiters of those donors earned about $3,000, and the organizers of the criminal channel received between $30,000 and $70,000. The SCNS said that all necessary measures are currently being taken to identify all those involved in this crime. Earlier this year, Kyrgyz president Sadyr Zhaparov signed a law on the protection of citizens' health, according to which private and public hospitals can engage in organ transplantation. However, a major stipulation requires that the organ recipient must be a relative of the donor. This loophole in the legislation was exploited by criminals by issuing fictitious documents on family kinship.

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Low-Income Kyrgyz Citizens Offered Financial Literacy Training

Kyrgyzstan's Ministry of Labor, Social Security and Migration has begun to provide training in financial literacy for low-income citizens from all over the country. Those wishing to participate in the state program known as "Social Contract" were offered free training on the basics of entrepreneurship, marketing and financial literacy. At the first lessons, participants were shown how to create business plans and approach marketing communications. Commented minister Gulnara Baatyrova: "For two years already, a program to support families in difficult economic situations has been implemented. Today, the most successful projects bring start-up entrepreneurs 40,000 som ($500) a month." This year the authorities intend to enter contracts with 20,000 families. Participants will receive $1,100 from the state budget to start their own businesses. Another 3,000 families will be financed using funds from the World Bank. The National Bank of Kyrgyzstan has been promoting a program of financial literacy, especially among children, for many years. Government officials conduct trainings and interactive programs across various media channels. "A person who manages his money manages his life. The family budget is a micro-projection of how things are done in business and the state. Everything should be taken into account, it is necessary to know your expenses and proportion them with income," reads a statement outlining the National Bank of Kyrgyzstan's mission.

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State Mortgages in Kyrgyzstan Can Now Be Obtained Without Credit History

On April 15, a law introducing a mechanism called "Shared Housing Construction" within the framework of the program, "My House 2021-2026" came into force in Kyrgyzstan. The program, as defined by the State Mortgage Company (SMC) of Kyrgyzstan, is available to all citizens. According to authorities, Kyrgyz citizens should be able to participate in collective housing developments without risks. According to the new program, citizens can apply for state mortgages without possessing a bank credit history in the country. Furthermore, those wishing to take out a mortgage will not have their incomes checked and will not have to submit to a work history. "Until today, one of the problems of housing provision [for] citizens in the republic was the lack of a state mechanism of equity financing of housing construction. In this regard, President Sadyr Japarov on January 30 this year signed a decree 'On measures to further improve the mechanisms of housing provision and construction of housing for citizens of the Kyrgyz Republic in the field of state housing policy'" - reported the SMC's website. Loans under the program will be issued under certain conditions: the down-payment should be at least 50% of the cost of the housing, the mortgage can be taken for up to 15 years at 8% per annum. Residential mortgage issuance by commercial banks in Kyrgyzstan today operates on more stringent conditions. For example, the interest rate for borrowers starts at 20% with a down-payment of at least one-third of the value of the property. Earlier, Kyrgyz President Sadyr Japarov instructed the Cabinet of Ministers to determine the list of state-owned land plots to be transferred to the SMC.

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Open Society to Close its Foundation in Kyrgyzstan, Citing Law on Foreign-Funded NGOs

The Open Society Foundations said it will close its national foundation in Kyrgyzstan after the country’s parliament passed a new law that tightens control over non-governmental groups that receive foreign funding. Open Society, which was founded by billionaire investor and philanthropist George Soros, said Monday that the law“imposes restrictive, broad, and ill-defined regulations” on internationally funded NGOs. The decision to pull out of Kyrgyzstan came two weeks after the country’s president, Sadyr Japarov, signed the law, saying more rigorous registration requirements and financial oversight would make non-governmental groups more accountable. The dispute between the government of Kyrgyzstan and foreign-funded groups represent a wider struggle over the direction of the Central Asian country. Opponents of Japarov believe he is systematically rolling back relative freedoms inKyrgyzstan. The president says local NGOS are embezzling money from foreign donors, an allegation denied by civil society groups. The Soros Foundation-Kyrgyzstan has spent more than $115 million on projects in education, public health, criminal justice, supplying water to rural communities and other areas since it opened in 1993, a year in which the Central Asian nation was mired in crisis after the fall of the Soviet Union, Open Society said. Under the new law, foreign-funded NGOs must “report broadly defined ‘political’ activities to the authorities” and risk uncertain consequences, Open Society said in a statement. Its president, Binaifer Nowrojee, said “this repressive new law will see civil society operate in a climate of uncertainty and intimidation.” The Open Society Foundations, which funds activities in more than 120 countries, says it aims to promote justice, human rights and democratic governance. It says it joins “policy debates on controversial issues that other funders might avoid” and the group has attracted criticism from conservative and authoritarian leaders in a number of countries. The United Nations has expressed concern about Kyrgyzstan’s so-called “foreign representatives” law. Jeremy Laurence, spokesperson for the UN High Commissioner for Human Rights, said on April 8 that many affected NGOs could close to avoid possible arbitrary checks by the authorities or having to pay for annual audits, or might end up self-censoring if they continue operations.

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Kyrgyzstan’s New Tariff Policy Aim to Solve Problems in Energy Sector

Kyrgyzstan's minister of economy Daniyar Amangeldiev has told a press conference in Bishkek about his vision for the country's energy sector. A new tariff pricing policy has been presented to the Kyrgyz parliament, and will be adopted in May this year. According to Amangeldiev, the new electricity tariff policy will allow for new capacity to be introduced, and for the country to reduce the country's electricity deficit year by year until the country's power-demand needs are met. Electricity prices will rise by 10.8% as early as May 2024, and taking into account inflation, this increase will be permanent. Amangeldiev said that it will now be much easier to obtain permission from the authorities to build energy facilities in the country. Measures have also been taken to make it easier for investors to invest in Kyrgyzstan's energy sector. "With its adoption (the new law on tariff policy), those capacities that are planned will be introduced, and accordingly, every year we will reduce the shortage of electricity to fully meet the needs of the country, and possibly [lead to] electricity export," he commented, adding that this year in Kyrgyzstan developers have started 10 small hydropower plants (HPPs). Earlier, Kyrgyz president Sadyr Japarov said that in addition to the construction of large energy facilities, it's necessary to build small HPPs. In 2022, the World Bank allocated $50 million to Kyrgyzstan to modernize its energy infrastructure -- upgrading transformers, power lines and installing smart meters. A year later, the bank provided another $80 million in concessional loans (at below-market lending rates) to improve the power grid and support small-scale power generation. Last fall, the World Bank allocated $5 million to the republic for a feasibility study of the project of a new large HPP called Kambarata-1.

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20,000 Families in Kyrgyzstan to Receive $1,100 Each for Entrepreneurship

Low-income families who receive cash benefits from the state will now be able to sign a social contract with the state - as long as recipients have a real business plan, according to a report by the Ministry of Labor, Social Security and Migration of Kyrgyzstan. As part of the fight against poverty in 2024, 20,000 families will enter a social contract with the state. According to the Ministry of Labor, priority will be given to those with three or more children or people with disabilities. The ministry emphasized that the money can also be allocated to families for the development of existing businesses. Businesses will need to comply with the state program, "One Village - One Product." "It is supposed to produce from local resources, develop skills of producers in terms of business management, marketing and expanding opportunities for product sales, promoting products in local and international markets, creating local brands and increasing the value of products," the Ministry of Economy and Commerce stated in describing the program. The "One Village - One Product" project has been underway in the Issyk-Kul region for many years and is showing good results. New jobs are being created and the region is seeing increased profits, including from exporting products abroad. Previously, this project was supported by Japanese humanitarian organizations working in Kyrgyzstan. "The project helps domestic entrepreneurs to produce quality certified products exclusively from local resources. Over the last six years, thanks to the project, local producers have signed 167 export contracts totaling 238 million som," ($2,670,000) the Ministry of Economy emphasized. The Ministry of Labor, in turn, said that over the past few years it has allocated money to 13,000 low-income families who have opened their own businesses. The project produces honey, natural juices and jams from local fruits, felt products, as well as meat products. "Income from the realization of business projects in 2023 helped to improve the lives of 55,400 people, of which 33,500 are children. Eighty percent of these children previously received a need-based allowance... Now, thanks to the Social Contract program, all families earn their own income and do not need government support," the Minister of Labor, Social Development and Migration, Gulnara Baatyrova said. According to the ministry, the majority of successfully implemented projects were in the Jalal-Abad and Osh regions. According to the Ministry of Economy and Commerce, 280 products have been developed over five years that are successfully sold in domestic and foreign markets. Many of these entrepreneurs' products, although not yet produced in large volumes, are supplied to Japan, China, South Korea, the U.S. and Europe.