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Trip of the First Lady to Kazakhstan, Kyrgyzstan, Uzbekistan, Russia, and Ukraine, November 9-8, 1997 (David) [Binder][3]
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Trip of the First Lady to Kazakhstan, Kyrgyzstan, Uzbekistan, Russia, and Ukraine, November 9-8, 1997 (David) [Binder][3]
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Records of the First Lady's Office (Clinton Administration)
Noa Meyer's Files
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Withdrawal/Redaction Sheet
Clinton Library
DOCUMENT NO.
SUBJECT/TITLE
DATE
RESTRICTION
AND TYPE
001. reports
bios (8 pages)
c 1997
P1/b(1)
COLLECTION:
Clinton Presidential Records
First Lady's Office
Speechwriting (Noa Meyer Subject Files)
OA/Box Number: 13007
FOLDER TITLE:
The Trip of the First Lady to Kazakhstan, Kyrgystan, Uzbekistan, Russia, and Ukraine,
November 9-18, 1997 (David) [Binder] [3]
2012-0869-S
kc956
RESTRICTION CODES
Presidential Records Act - [44 U.S.C. 2204(a)]
Freedom of Information Act [5 U.S.C. 552(b)]
P1 National Security Classified Information [(a)(1) of the PRA]
b(1) National security classified information |(b)(1) of the FOIA|
P2 Relating to the appointment to Federal office [(a)(2) of the PRA]
b(2) Release would disclose internal personnel rules and practices of
P3 Release would violate a Federal statute [(a)(3) of the PRA]
an agency [(b)(2) of the FOIA]
P4 Release would disclose trade secrets or confidential commercial or
b(3) Release would violate a Federal statute |(b)(3) of the FOIA]
financial information [(a)(4) of the PRA]
b(4) Release would disclose trade secrets or confidential or financial
P5 Release would disclose confidential advice between the President
information [(b)(4) of the FOIA]
and his advisors, or between such advisors [a)(5) of the PRA]
b(6) Release would constitute a clearly unwarranted invasion of
P6 Release would constitute a clearly unwarranted invasion of
personal privacy |(b)(6) of the FOIA]
personal privacy |(a)(6) of the PRA]
b(7) Release would disclose information compiled for law enforcement
purposes [(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed
b(8) Release would disclose information concerning the regulation of
of gift.
financial institutions |(b)(8) of the FOIA]
PRM. Personal record misfile defined in accordance with 44 U.S.C.
b(9) Release would disclose geological or geophysical information
2201(3).
concerning wells [(b)(9) of the FOIA]
RR. Document will be reviewed upon request.
Central Asian Conf. on Women
in Politics Keynote Address
EVENT PAPER: WOMEN IN POLITICS CONFERENCE
Scenesetter
You will deliver either the opening or. the keynote address at the
Central Asian Conference on Women in Politics at the main
auditorium of the Academy of Sciences. Your speech will
highlight the theme "Women as a Force for Political and Social
Change".
You will enter the site at the main entrance and proceed upstairs
to a holding room adjacent to the stage. You will enter stage
left, deliver your address, and exit stage left. You will be
introduced by Saule Kenesbayeva, the conference coordinator, who
understands and speaks some English.
Background
The conference is organized by the women's association "LIANA"
unquote and is sponsored by a small Embassy Almaty democracy
grant. The conference will last three days, and is he third
annual conference organized by LIANA. The Academy of Sciences is
in the same building as the Ministry of Science. The Ministry
and the Academy have both worked with the U.S. on a host of
programs, most recently on a multinational nuclear
nonproliferation conference that opened in Almaty in August.
Guest list/audience
You will be met by Saule Kenesbayeva, the director of the women's
association, LIANA. The conference will be attended by
approximately 380 women from all five Central Asian countries and
the U.S. The audience will include political figures, media
representatives, directors of NGO's and charitable organizations,
business leaders, and academicians. There will be very few
English speakers in the audience. Your speech will be translated
simultaneously from translation cabinets on either side of the
upper balcony of the auditorium.
Central Asian Conference "Women in Politics"
USIS and USAID, together with the Friedrich Ebert Stiftung Foundation and Mobil Oil, are
proud to sponsor the Central Asian Conference "Women in Politics", put on by the local
NGO "LIANA." This is Liana's third annual conference for Women in Central Asia. USAID
is sponsoring travel costs for 30 to 33 women from Kyrgyzstan, Tajikistan, Turkmenistan and
Uzbekistan. These participants include elected officials, high government officials,
independent journalists and outstanding NGO leaders involved in human rights,
businesswomen's associations, media associations, women leaders and women's resource
centers. They will join together with many activist women from Kazakhstan to discuss a
lively agenda of women's involvement in political issues.
The program includes discussion of the legal status of women in the Central Asian Countries,
how to measure growing women's activity in political life, political education of women and
their participation in election campaigns. The conference will include roundtables on the role
of NGOs in increasing women's political activity and the role of mass media in increasing
women's political activity.
LIANA is an NGO devoted to women's issues in Kazakhstan and the other countries of
Central Asia. LIANA is active in supporting the introduction of laws which benefit women.
It also encourages women to become active in NGOs and has hosted two previous
conferences on the topics of Women in NGOs and Women in Business. LIANA has
participated in several USAID NGO training programs.
Of the 137 women in attendance, 58% of them have received USAID assistance. They have
benefited from USAID trainings in broadcast journalism, NGO& Community, Project Design,
NGO Management, Strategic Planning, Public Education Through the Media and Fundraising
for Development. Nineteen have traveled to the United States for training in fiscal
federalism, pension systems, health insurance management, NGO leadership, developing
public understanding of economics, maternal and child health, judicial system reform, human
rights and democratic development, management of welfare systems and health facility
management.
The women represent 16 NGOs which have received USAID assistance in the form of small
grants totalling $159,000 for projects in sectors of women's issues, poor families, pensioners,
civil society, human rights, NGO support, legal and judicial issues, children and youth, arts,
crafts & culture, and independent media. USAID welcomes activism on the part of all
women and NGOs in Central Asia and hopes this tradition will carry on in all five Central
Asian Republics.
Meet and Greet with
Prominent Women
EVENT PAPER: LUNCHEON WITH LEADING WOMEN OF KAZAKHSTAN
Scenesetter
We are arranging a lunch in your honor at the Ambassador's
residence. The lunch is designed to give you an opportunity to
speak in some depth with leading women in the Kazakhstani
government, business, media, and NGO communities about the
challenges they face unique to Kazakhstan. You will enter the
Ambassador's residence through the front door, where you will be
met by Ambassador Jones. She will introduce you to the other
guests while standing in the living room, and then you will all
proceed into the dining room, directly to your right. The lunch
will last approximately 45 minutes. Some of the participants may
present you with gifts or informational material about their
organizations during the lunch.
Background
The Ambassador's residence is a newly-built two story home at the
southern end of Almaty. Construction of the residence was
completed in summer 1996, and the Ambassador moved in August.
The residence is in a gated compound with two other homes, one of
which is the Australian Ambassador's residence. The embassy is
completing negotiations for the purchase of the residence.
Guest list
The lunch will be attended by no more than 20 people. Many of
the Kazakhstani invitees speak and understand English. The
Kazakhstani invitees include:
Valentina Sivryukova, Deputy Minister of Labor and Social
Protection; Zinaida Fedotova, Senator; Raisa Sher, Member of
Parliament; Liyazat Ishmukhamedova, President, Association of
Single Mothers; Maisiya Kaipozarova, Director, United Nations
Gender Center; Irina Katseyeva-Chernolovskaya, independent
journalist; Saule Abdigapparova, President, Association for Youth
Assistance; Olga Bakhareva, President, Almaty Special Olympics
Federation; Raushan Sarsembayeva, President, Association of
Businesswomen of Kazakhstan; and Svetlana Sinitskaya, President,
Association of Women Journalists of Kazakhstan.
FROM : Panasonic FAX SYSTEM
PHONE NO. :
Nov. 06 1997 09:13AM P3
List of Potential Participants
Visit of the First Lady
"Meet and Greet" with Prominant Kasakhstani Women
1. Ablova, Natalia (ob-LOW-vuh, Nuh-TALL-yuh)
Kyrgyz-American Human Rights Bureau Director
2. Babajanova, Rano (Bah-bah-JON-uh-vuh, RAN-no)
Chief editor, TV Channel-Seven
3. Bakhareva, Olga (bah-KHAH-reh-vuh, OLL-guh)
President, Special Olympics, Kazakhstan
4. Baliyeva, Zagipa (buh-LEE-yeh-vuh, zuh-GEE-puh)
Chairwoman, Central Election Commission
5. Chernolovskaya, Irina (chair-nuh-LOW-v-sky-uh, I-REE-nuh)
Journalist, former director of television station
"Family Channel"
6. Fedotova, Zinaida (feh-DOH-tuh-vuh, zin-eye-EE-duh)
Senator of the Republic of Kazakhstan
7. Fokina, Ninel (FOH-ki-nuh, NEE-nuhl)
Chairwoman, Almaty Chapter, Helsinki Watch Committee
8. Ishmukhamedova, Lyazat (ish-moo-ka-MYED-uh-vuh, lee-vuh-ZAHT)
President, Association of Single Mothers
9. Kainazarova, Mansiya (k-eye-nuh-ZAH-ruh-vuh, man-SEE-yuh)
Director-Coordinator, United Nations Gender Center
10. Kenesbayeva, Saule (ke-ness-BUY-yeh-vuh, S-OW-lay)
President, Women's Association "Liana"
11. Korzhova, Natalya (KOR-zhuh-vuh, nuh-TALL-yuh)
Minister of Labor
12. Loar, Theresa
Women's Issues, U.S. Department of State
13. Margolies-Mezvinsky, Marjorie
Women's Campaign Funds, USA
14.
Nazarbayeva, Sarah (na-zar-BUY-eh-vuh, SAIR-uh)
wife of the President of the Republic of Kazakhstan
15.
Petuhova, Ludmila ( (peh-T00-huh-vuh, lood-ME-luh)
Head of the Women's Club "Ynam" (Faith)
16.
Rashidova, Sayura (rah-SHEE-duh-vuh, sah-YOU-ruh)
MP and Ombudsperson
17.
Sarsembayeva, Raushan (sahr-sem-BUY-yeh-vuh, R-OW-shahn)
President, Business Woment's Association of Kazakhstan
18.
Savostina, Irena (suh-vOH-stee-nuh, ee-RAY-nuh)
Chairwoman, Pensioners' Movement "Pokoleniya"
19.
Shamcutdinova, Evotlano (chahm-coot-DEEN uh vuh, svet LAH nuh)
Deputy Director, Consumer Rights Protection Organization
20. Sher, Raisa (SHARE, R-eye-EE-suh)
Member of Parliament, Republic of Kazakhstan
21. Sinitskaya, :Svetlana (sih-NIT-sky-uh, svet-LAN-nuh)
Chairwoman, Association of Women Journalists 1
22. Sivryukova, Vaalentina (siv-RYOU-kuh-vuh, vall-uhn-TEE-nuh)
Deputy Minister of Labor
23: Turmagambetova, Zhemis (toor-mah-gahm-BYET-uh-vuh, ZHEMM-iss)
Deputy Director, Kazakh-American Human Rights Bureau
24. Yertlesova, Zhannat (yair-TLESS-uh-vuh, ZHA-nat)
Deputy Minister of Finance
KAZAKHSTAN: TALKING POINTS: WOMEN MEET AND GREET
The women gathered here today represent exactly what
women worldwide have sought for many generations. We
have all worked hard to gain positions of leadership in
industry, politics, business, and society. I am honored
to be given this opportunity to meet with so diverse and
successful a group.
Our successes will serve as examples to our daughters,
but there is much to achieve before we can rest. Women's
needs must be better met in our changing world,
particularly on such important issues as gender equity in
the workplace and the availability of adequate health and
child care.
We must work to create a world in which women can balance
our professional and personal lives in such a way that
both are happy and fulfilling.
Women must work together to achieve equality. Unless we
work with and for each other, we have no guarantee that
our needs will be met.
No one can deny the fact that such depends upon the
participation of women at the highest levels in both the
public and private sectors. Civil society cannot succeed
without women like us, for the equal participation of all
its members is necessary for the shaping and achieving of
common goals.
BACKGROUND
ON KYRGYZSTAN
Interactive Central Asia Resource (ICARP) Description of Kyrgyzstan
http://www.rockbridge.net/personal/bichel/Kyrdescr.htp
Sherm
Interactive Central Asia Resource Project
Description of Kyrgyzstan
Kyrgyzstan is located in eastern Central Asia bordering China, Kazakstan, Tajikistan and Uzbekistan. Its
has a total land area of 76,641 square miles with a population of about 4.4 million. Its capital city, Bishkek,
has a population of 626,900. The population consists of 52 percent Kyrgyz, 21 percent Russian, 13 percent
Uzbek, 2.5 percent Ukrainian, 2.4 percent German, and 1.6 percent Tatar. The country has an annual
population growth rate of 2 percent. The official language is Kyrgyz, but here too there have been disputes
with the "indigenous" Russian population over linguistic and citizenship claims.
Kyrgyzstan declared its sovereign independence on December 12, 1990, shortly after Askar Akayev was
elected president by the Supreme Soviet. On October 13, 1991 Akayev became the country's first freely
elected president. He was unopposed in the election. As president Akayev is both head of government and
head of state, a feature common to all of the Central Asian republics. He presides over a constitutionally
founded government that is comprised of the 313 member Zhogorku Keneshom (legislature) and the
Supreme Court. The president appoints a prime minister who forms a government. The current
government was formed on December 18, 1993. The current legislature, formerly the Supreme Soviet, was
elected during the Soviet period and did not stand for election until March of 1995. Akayev himself faces
an election in December of 1996. The major political parties include the Communist Party of Kyrgyzstan
and Alta-Mekel and Erkin, both of which are small Kyrgyz nationalist parties. Akayev is the only sitting
president of the Central Asian region who was not a former Communist.
Visit Other ICARP Pages
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11/6/97 11:59 AM
Quick Facts
http://www.kyrgyzstan.org/facts.htm
Quick Facts
GEOGRAPHY
Official name:
Kyrgyz Republic; digraph: KG (KS)
Location:
Kyrgyzstan is situated in Central Asia bordered by Kazakhstan, Uzbekistan, Tajikistan and China
Capital:
Bishkek
Area:
Total area: 199,900 square km (76,641 square miles). It is about the size of Minnesota. 5.2% - forests, 4.4% -
water, 53% - agricultural land, 36% - other
Land Boundaries:
Total 3,878 km, China 858 km, Kazakhstan 1,051 km, Tajikistan 870 km, Uzbekistan 1,099 km
Climate:
Dry continental to polar in high Tien Shan; subtropical in southwest (Fergana Valley); temperate in northern
foothill zone
Terrain:
Peaks of Tien Shan rise to 7,000 meters, and associated valleys and basins encompass entire nation. Highest
point - Peak Pobeda (7,439 meters)
Natural Resources:
Abundant hydroelectric potential
-
Significant deposits of gold and rare earth metals
Locally exploitable coal, oil and natural gas
Other deposits of nepheline, mercury, bismuth, lead, and zinc
Irrigated Land: 10,320 sq. km (1990)
GDP: 22,467,800,000 soms (1996)
Currency: Som ($1 = KGS17.10 (as of October, 1997)
PEOPLE
Population: 4.6 million (01.01.97); unofficial sources: 4,769,877
Age Structure: 0-14 Years - 37% (female 868,108; male 888,479)
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Quick Facts
http://www.kyrgyzstan.org/facts.htm
15-64 Years - 57% (female 1,377,221; male 1,345,990)
65 Years and Over - 6% (female 185,807; male 104,272)
Population Growth Rate: 1.5%
Birth Rate: 25.97-births/1,000 population
Death Rate: 7.32 deaths/1,000 population
Net Migration Rate: 3.66 migrant(s)/1,000 population
Infant Mortality Rate: 45.8 deaths/1,000 live births (1995 est.)
Life Expectancy at Birth: Total population: 68.13 years
Male: 63.92 years
Female: 72.56 years
Total Fertility Rate: 3.31 children born/woman (1995 est.)
Nationality: Noun: Kyrgyz(s)
Adjective: Kyrgyz
Ethnic Divisions:
Kyrgyz 60.8 %
Russian 15.3 %
Uzbek 14.3 %
Ukrainian 1.5%
Other 8.1% (includes Dungan, German, Kazakh, Korean, Tajik, Tatar, Uighur and others). Kyrgyzstan has more
than 80 ethnic groups
Religions:
Islam, Russian Orthodox etc. The freedom of worship is guaranteed under the Constitution. Most major religions
are practiced in Kyrgyzstan
Languages:
The official state language of Kyrgyzstan is Kyrgyz. Russian is also very widely used, and English is becoming
popular among the younger generation
Literacy:
Age 15 and over (1989)
Total population: 97%; Male: 99%, Female: 96%
Labor Force:
1.836 million
By occupation:
11/6/97 12:09 PM
2 of 5
uick Facts
http://www.kyrgyzstan.org/facts.hm
Agriculture and forestry 38%. Industry and construction 21%, other 41% (1990)
Government
Type: Republic
Head of State: President
Government Power:
Legislative Branch - Jogorku Kenesh (Parliament) consisting of two
chambers, with the Legislative Assembly and People's Representatives
Assembly
Executive Branch - Government, Local Akimiats (local state administrations), Ministries and State
Establishments
Judicial Branch - Constitutional Court, Supreme Court, Highest Court of Arbitration
Adm. Divisions:
-
Bishkek (capital) and 6 oblasts: Chui Oblast, Jalal-Abad
Oblast, Naryn Oblast, Osh Oblast, Talas Oblast, Issyk Kul
Oblast
Independence: 31 August 1991
National Holidays:
New Year's Day (January 1)
Russian Orthodox Christmas (January 7)
Orozo Ait (winter) - Muslim holy day celebrated by the lunar calendar (date is not fixed)
International Women's Day (March 8)
Nooruz (March 21)
Kurman Ait (spring) - Muslim holy day celebrated by the lunar calendar (date is not fixed)
International Worker Day (May 1)
Kyrgyz Constitution Day (May 5)
WW II Victory Day (May 9)
Independence Day (August 31)
Constitution: Adopted 5 May 1993
Suffrage: 18 years of age; universal
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'uick Facts
http://www.kyrgyzstan.org/facts.htm
Member of: More than 30 international organizations, like AsDB, CIS,
EBRD, ECE, ECO, ESCAP, FAO, IBRD, ICAO, IDA, IDB, IFAD, IFC,
ILO, IMF, IOC, IOM (observer), ITU, NACC, OIC, OSCE, PCA, PFP,
UN, UNCTAD, UNESCO, UNIDO, UPU, WHO, WIPO, WTO etc.
Kyrgyzstan's flag was adopted on March 3, 1992 and shows a combination of esoteric and practical symbols. On
a field of red - traditional color of the Kyrgyz - is centered a yellow sun with 40 rays, representing the 40 tribes
led by the ancient national hero, Manas, who united them to form the Kyrgyz nation. Centered on the sun is a red
circle containing two crossed sets of three curved lines, a stylized representation of the opening at the peak of a
boz uy (yurta, yurt) - the traditional Kyrgyz house. The sun symbolizes light, nobility and eternity to the Kyrgyz.
Diplomatic Representation in U.S:
Ambassador Extraordinary and Plenipotentiary,
His Excellency Mr. Baktvbek Abdrisaev
Embassy of the Kyrgyz Republic
1732 Wisconsin Avenue, NW
Washington, D.C. 20007
Tel.: (202) 338-5141
Fax: (202) 338-5139
:-mail: [email protected]
Ambassador Ms. Zamira Eshmambetova,
Permanent Representative of the Kyrgyz Republic
to the United Nations
866 UN Plaza, Suite 477, New York, NY, 10017
Tel.: (212) 486-4214; Fax: (212) 486-5259
U.S. Diplomatic Representation:
Ambassador Anne Sigmund. Embassy: Erkindik Ave. #66, Bishkek 720002
Telephone: [7] (3312) 22-29-20, 22-27-77,
22-26-31, 22-24-73
FAX: [7] (3312) 22-35-51
Additional General Information about Kyrgyzstan
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11/6/97 12:09 PM
KYRGYZ REPUBLIC: MAIN ISSUES IN BILATERAL RELATIONS
Economic and political reform. Overall, U.S. relations with
Kyrgyzstan are close and cooperative. In a region that has not
enjoyed a good reform record, Kyrgyzstan is often described as an
example for other Central Asian states in terms of political and
economic reforms. However, the reforms remain tenuous. While
the Kyrgyz Republic leads the Central Asian states in terms of
political and economic reform, the U.S. continues to press for
democratic institution building.
U.S. Assistance. U.S. assistance to Kyrgyzstan in 1996 totaled
approximately $58.3 million and covers a broad spectrum,
including health, education, democratic reforms, agriculture,
economic restructuring and law enforcement. The Kyrgyzstanis are
seeking additional U.S. assistance in the following areas:
a) Kyrgyz-American University. During President Akayev's
July 1997 visit to the U.S., he met with George Soros and the
Open Society Institute to discuss transforming the Kyrgyz
American Faculty (currently a department of the Kyrgyz National
University, established in 1993 with USG funds) into an
independent American university. Soros promised a. donation if
the U.S. government would match his commitment. President Akayev
also raised the issue with Vice President Gore, who promised to
consider it. The U.S. government supports an independent
university, building on the Kyrgyz-American Faculty's strengths
in business, law, journalism and English language.
b) Radioactive waste removal. Radioactive contamination
from old Soviet mines, and uranium mining equipment stored in
crumbling storage facilities along the Kyrgyz river system,
threaten fresh water supplies.
c) Border guards/Customs training. Kyrgyzstan has asked for
U.S. assistance to remodel its border guard and customs services
to function effectively and independently of Russian support.
d) Mountain rescue. During his July 15 meeting with Vice
President Gore, President Akayev requested U.S. assistance in
establishing a mountain rescue specialty unit within the
Kyrgyzstani military.
e) Joint seismic center. Also during that July meeting, the
U.S. offered up to $250,000 in funding to support the startup and
first year's operation of an international geodynamics center in
Kyrgyzstan.
f) Afghanistan. Like other Central Asian states, Kyrgyzstan
sees the continued conflict in Afghanistan as destabilizing to
the region. In August, President Akayev wrote to President
Clinton requesting support for his initiative to hold a peace
conference in Bishkek. Acting Secretary Talbott replied on
behalf of the President, noting our commitment to finding a
lasting peace within a UN framework. During his October visit to
the U.S., Foreign Minister Imanaliyev discussed President
Akayev's proposal, emphasizing that Kyrgyzstan's priority is that
a peace conference be convened, regardless of venue or auspices.
More attention at higher levels. The Kyrgyz government places
great value on high level meetings as an endorsement of its
political and economic reform efforts. President Akayev was
disappointed that President Clinton was unable to meet with him
during his mid-July visit to the U.S., and due to a scheduling
conflict, Kyrgyzstani Foreign Minister Imanaliyev did not have a
chance to meet with the Secretary of State during his October 5-7
visit for the UNGA. We are examining possibilities for a high-
level meeting in 1998.
KYRGYZ REPUBLIC: POLITICAL AND SOCIAL OVERVIEW
Political freedom. The Kyrgyzstani people enjoy more political
freedom than citizens of the other Central Asian states.
President Akayev is the only Central Asian president who has not
extended his term by means of referendum and who allows political
opponents a relatively active role in Kyrgyzstani politics.
Kyrgyzstan has several independent political parties that
competed in the 1996 parliamentary elections. However,
democratic reform and institution building remain fragile and
need continued reinforcement.
Presidential elections. In December 1995, Presidential Akayev
was reelected in the first multi-candidate presidential elections
in Kyrgyzstan. The conduct of the elections was generally free
and fair, but in the pre-election period, many candidates had
trouble getting needed signatures certified and three candidates
were de-registered by court order after being accepted by the
Central Election Commission. Two candidates ran against Akayev,
although his strongest challenger was prevented from doing so at
the last minute. Two opposition campaign workers were arrested
just before the elections, held without trial for four months,
and eventually convicted of libeling the president.
Consolidation of presidential power. A February 1996 referendum
(in violation of the Constitution and the law on referendums)
amended the Constitution to give President Akayev more power.
The changes gave the president the power to dissolve parliament.
It also removed the clause that parliamentarians be directly
elected by universal suffrage. President Akayev has continued to
strengthen the executive by expanding its staffing and purview,
and by forming a personal cabinet within the presidential
apparat. For the most part, the parliament and judiciary tend to
be subordinate to the executive, and the overwhelming majority of
local government officials are appointed by the president.
Authoritarian tendencies. Akayev has said publicly that his more
authoritarian approach is intended to speed implementation of
economic reforms, but his discomfort with domestic criticism
appears to have motivated him to take a tougher line toward
domestic opposition and to backpedal on democratic reforms and
human rights. Although Akayev has denied that he is planning to
change the Constitution to allow him to run for a third term, or
preparing a referendum to extend his second term, such high-
handed action cannot be ruled out.
Parliament. Despite Akayev's attempts to strengthen presidential
power at the expense of the legislature, the Parliament has
demonstrated some independence from the executive branch.
Earlier this year, the legislature overruled a presidential veto
and passed legislation to allow it to call for a no-confidence
vote on any cabinet appointment.
Judiciary. Kyrgyzstan has also undertaken some steps toward the
creation of an independent judiciary. In November 1996, the
Constitutional Court ruled that the speaker of the parliamentary
lower house had been unconstitutionally elected. The legislature
accepted the court's decision and elected a new speaker.
Military. Kyrgyzstan is facing a formidable task in maintaining
its 16,000 man armed forces. Reduced budgets have led to growing
shortages in all areas of operation, training, maintenance and
basic supplies. Kyrgyzstan has a conscription system with an
alternative service option. A treaty with Russia allows Russian
servicemen to serve in the Kyrgyzstani military on a contract
basis. An estimated 4,000 border guards (virtually all ethnic
Kyrgyz) still under Russian command are stationed in Kyrgyzstan
to guard the Sino-Kyrgyzstan border. A Kyrgyzstani motorized
company participated in the successful mid-September joint
CENTRASBAT military exercises with Kazakh, Uzbek and U.S. forces.
KYRGYZ REPUBLIC: ECONOMIC AND COMMERCIAL OVERVIEW
Kyrgyzstan is the most reformist of the Central Asian states, but
also one of the poorest and most vulnerable due to its relative
lack of natural resources. Kyrgyzstan's economic decline has
bottomed out, however, and it is beginning to reap some rewards
from its economic reform program.
Industrial decline. During the Soviet period, Kyrgyzstan's
industries were heavily subsidized and not internationally
competitive. Once Moscow's subsidies stopped and inter-republic
trade collapsed, Kyrgyzstan's industry suffered. Between 1990-
1996, industrial output fell 64 percent, while GDP fell 48
percent. The steepest declines were in the energy, machine
building, construction, and chemicals sectors, where production
fell by 80-90 percent. According to official statistics, in
1996, 43 percent of enterprises were losing money. Before
industry can fully revive, much of Kyrgyzstan's obsolete
industrial base will need to be rebuilt or replaced.
Economic reform. In 1993, Kyrgyzstan launched a bold program of
economic reform which won the support of international financial
institutions. The government introduced favorable laws on
privatization, joint ventures, foreign trade and investment,
free economic zones, and concessions to foreign investors -- all
designed to facilitate the rapid development of a market economy.
Also in 1993, Kyrgyzstan became the first republic in the region
to introduce its own currency, the som.
Trade, legal and tax reform. Since then, the government has
liberalized trade, introduced land rights, and launched a program
to privatize large companies on a case-by-case basis. A tax code
has been put in place and a new body of commercial law
introduced. Kyrgyzstan has also applied for WTO membership, and
hopes to accede next year, thanks in part to U.S. funded
technical advice.
Production. By 1995, the post-independence decline in output
appeared to end. According to official statistics, GDP grew by 5
percent in 1996, and industrial and agricultural production rose
by 11 percent and 13 percent respectively. These positive trends
continued in the first five months of 1997. The operations of a
large gold joint venture accounted for most of the increase in
industrial production. Wheat production grew by 45 percent, and
meat production also rose after several years of decline.
Monetary policy and inflation. Tight monetary policies and
improved performance in collecting budget revenues has kept
average monthly inflation at 5 percent or less since early 1994,
although there was some slippage in 1996 when the som's exchange
rate depreciated by 40 percent. However, in 1997, average
monthly inflation has totaled just over 2 percent and the som has
appreciated slightly.
Income and wages. Official statistics indicate that income and
wages in 1995 and 1996 have largely kept pace with inflation.
Poverty, however, remains endemic. According to the World Bank,
almost half of the population lived in poverty in the early
1990's and one-third of the population was considered severely
impoverished. Unemployment remains a serious problem.
Privatization. The government has steadily advanced its
privatization program and restructuring efforts by expanding the
use of auction sales, targeting bankrupt enterprises for
restructuring, and improving the legal infrastructure for private
entrepreneurs and foreign investors. However, the results have
been mixed thus far. According to official statistics, much of
the construction and retail trade sectors has been privatized.
In 1997, according to Western economists, 50 percent of GDP and
over 90 percent of retail sales are expected to come through
nonstate channels. State regulation has also been almost
completely eliminated in agriculture, and the government has
transformed most state farms into agricultural collectives;
however, the privatization process is hampered by widespread
corruption.
Foreign investment. According to EBRD statistics, Kyrgyzstan
received only $122 million in foreign direct investment between
1994 and 1996. Most of this went into a joint venture with a
Canadian firm to develop the Kumtor gold mine. The signing of
several other agreements with foreign mining firms to develop
gold fields should fuel further growth in this sector.
Foreign assistance. Despite the difficulties of reform,
government commitment remains strong, with leaders generally open
to foreign advice and technical assistance. Donor assistance
will remain crucial to the success of continued reforms.
KYRGYZ REPUBLIC: HUMAN RIGHTS OVERVIEW
Democratic progress. Kyrgyzstan is the most open, progressive,
and democratic of any of the Central Asian republics. A
tradition of consensus building among the Kyrgyz elite has
fostered a modest amount of political pluralism and strengthened
many democratic practices, despite President Akayev's domination
of the government. Kyrgyzstani citizens have the right to free
assembly and generally meet without government interference.
Permits are required for public marches and gatherings, but have
not been denied arbitrarily. The government also has not
prohibited labor strikes.
Inconsistency in practice. While the government expresses
support for human rights, democracy and the rule of law, in
practice respect of these rights is uneven. Local elder's courts
responsible for trying petty crimes and local disputes have
committed a number of abuses as they have handed out harsher
punishments than allowed under law.
Freedom of the press and speech. Press freedom and freedom of
speech are more secure in Kyrgyzstan then elsewhere in Central
Asia. Nevertheless, there have been incidents of repression
including the closing of newspapers in 1994 and the conviction of
two journalists for criminal libel against the president in July
1995. In 1997, repression against independent newspapers,
journalists, and opposition members increased. In January 1997,
opposition activist Topchubek Turgunaliev was convicted of
embezzlement, fraud and abuse of position: he remains in prison.
Although independent newspapers and magazines continue to be
published, almost all electronic media and a significant portion
of print media operate under government control. Earlier this
year, several journalists from the opposition newspaper Res
Publica were arrested and convicted of criminal libel for
insulting one of Akayev's advisors. Several of these journalists
served jail time; however, most were freed immediately after
conviction, probably in response to pressure from human rights
groups and the international community.
USG actions. The U.S. Embassy has actively monitored the
progress of the Res Publica cases, and continues to press for
greater press freedoms, including redefinition of libel as a
civil, rather than a criminal, offense.
KYRGYZ REPUBLIC: ETHNIC AND RELIGIOUS ISSUES
Ethnic and religious make-up. Among Kyrgyzstan's estimated
4.5 million people, 59.7 percent are Kyrgyz, 16.2 percent
Russians, 14.1 percent Uzbeks. The remainder include a mixture
of ethnic Germans, Ulgurs, and other Slavic groups. Non-Kyrgyz
are often lumped together in the so-called "Russian speaking"
minority. Growing Kyrgyz nationalism is prompting many
minorities to emigrate. Kyrgyzstan is predominantly Muslim
(reports indicate 80 percent of the population is Islamic), but
religious practices are generally relaxed and there are no signs
of a growth in Islamic fundamentalism.
Ethnicity in the government. Ethnic Kyrgyz continue to dominate
government positions in far greater numbers than their
representation in the general population. The appointment of
ethnic Kyrgyz to key judicial positions has led to charges by
non-Kyrgyz that the system is unfair and that the courts treat
ethnic Kyrgyz more leniently.
Ethnic tolerance and tension. President Akayev has urged calm in
ethnic relations and supports a policy of guaranteeing rights and
freedoms to ethnic minorities. He has blocked laws that would
discriminate against non-Kyrgyz ethnic groups and warned all
anti-Russian political parties that such policies are not
acceptable. Nevertheless, Kyrgyzstan has experienced ethnic
friction -- particularly between Kyrgyz and Russians in Bishkek
and between Kyrgyz and Uzbeks in the southern part of the
country.
Religious freedom. The Kyrgyz constitution guarantees all
citizens freedom of religion, and Kyrgyz authorities have
respected this law for the most part. However, the formation of
a state religious affairs commission in March 1996, which
requires religious groups to register with the state, has raised
concerns. Since its formation, Muslim leaders have complained
that the commission has begun to make decisions about religious
events without consultation. In Naryn province, a Baptist
congregation was denied registration and there have been reported
instances of Naryn police disrupting Baptist services. In
addition, ethnic Kyrgyz Christian congregations and some Muslim
congregations with foreign ties appear to face special barriers.
USG activities. The U.S. Embassy has been active in urging the
GOK to prevent harassment of religious groups.
KYRGYZ REPUBLIC: EDUCATION ISSUE
Statistics. Krygyzstan has an estimated 97 percent literacy
level. Education is compulsory for the first nine years.
Approximately 60 percent of all children aged six to 23 were
enrolled in schools in 1995. According to 1994 figures, women
over- twenty-five years of age had completed an average of 9.4
years of schooling and men over twenty-five, ten years.
Deteriorating conditions. Expenditure on public education rose
from 4 percent of GDP in 1993 to 6.1 percent in 1995. However,
the education system has suffered the same material and financial
hardships as other social sectors following the breakup of the
Soviet Union, and conditions continue to deteriorate due to an
acute shortage of material resources. Teachers are poorly paid
and the school system is under stress to maintain standards and
quality. Construction of schools lags behind the growth of the
school-age population. The number of pre-schools has dropped
precipitously. Although there is a network of after-school
institutions, only about 10 percent of children participate. In
addition to funding shortages, there is a need to address the
centralized decision-making process, and to revise and
restructure curricula to fit the changed political circumstances.
Benefits from USAID. The educational sector benefits indirectly
from USAID's market transition programs. It is also expected to
benefit from USAID initiatives in the NGO sector, such as
development of associations like PTA.
Kyrgyz American Faculty. In 1993, following a request from
President Akayev to Vice President Gore, USIA provided $635,000
to help establish the Kyrgyz American Faculty (KAF), a department
of the Kyrgyz National University. USIA funding supported
faculty and curriculum development, student exchanges, library
and Internet access. KAF has been a notable success, offering
bachelor degrees in business management, economics, journalism,
and English as a second language. Recently, law courses were
also added to the curriculum. The students of the first
graduating class this past June found jobs in business and the
public sector. USIA and the State Department are exploring ways
for KAF to become a fully independent university. George Soros'
Open Society Institute, has indicated an interest in assisting
this endeavor.
KYRGYZ REPUBLIC: WOMEN'S ISSUES
Kyrgyzstani law gives equal status to women, but the dramatic
drop in family incomes due to the economic transition has put
tremendous pressures on the traditional family structure.
Alcohol, drug abuse, unemployment, malnutrition, and the
breakdown of support systems have all contributed to spousal
abuse of women. Although media reports and hospital records tend
to document these changes, law enforcement and government
programs have not adequately met the increased need for
intervention and services.
Women in the work force. Women represent 45 percent of
industrial employees, 42 percent of small businesses employees
and 36 percent of executives. However, according to the 1996
UNDP report, women appear to face higher layoff and unemployment
rates. Every second unemployed person is a woman, and 18 percent
of these are mothers with several children. In addition, women
appear to have been disproportionately affected by non-payment of
pensions. Women receive lower wages, have less access to
employment and fewer years of schooling than men. On the other
hand, women exceed men in absolute numbers in the population (2.4
million out of 4.6 total), life expectancy, and in secondary
education enrollment.
Women in the household. Women generally spend many hours in
unpaid household work, including child care. This situation has
been exacerbated with the cut-back in government programs, such
as free pre-school and after-school programs for working mothers.
The Kyrgyz National Statistics Committee has determined that most
working mothers cannot afford the fees charged by pre- and after
school programs. In rural areas, women often fulfill the roles of
homemaker, mother, and wife, not worker. Forced marriage of
underage girls is becoming more common.
Legal and social status. In public life, one deputy prime
minister, Mira Jangaracheva, (out of three) is a woman. Two
ministers (Larisa Gutnichenko, Justice and Asylgul
Abdurekhmenova, Labor and Social Welfare) out of eighteen are
women, as is the head of the Constitutional Court, Cholpon
Baekova. Women's rights are anchored in the Constitution and the
legal codes. The Criminal Code provides for "freedom and
dignity" of women, and protection against forced marriage or
forced abortion. However, judicial enforcement of many of these
protections has been weak. Also, social traditions sometimes
mitigate against legal action as a redress of grievances.
Kyrgyz government programs. At the UN's Beijing Conference on
Women, Kyrgyzstan committed itself to develop a women's program
and to create a comprehensive legal basis to achieve gender
equality. With the support of UNDP, the Women's Bureau has set
up women's resource centers in each of the regions. Among other
things, the centers provide training in establishing NGOs and in
grant-writing.
USAID assistance. USAID programs that have benefited women
include FINCA (micro-lending, mostly to women traders, farmers,
and entrepreneurs), CARANA (training in international accounting
standards -- some 75 percent of accountants are women), IBTCI
(bank and accounting training -- over half of bank executives are
women), Aid to Artisans, and programs to create housing
cooperatives, provide NGO training and improve health programs.
KYRGYZ REPUBLIC: POPULATION AND FAMILY PLANNING ISSUES
Future population trends. Like several other former Soviet
states, Kyrgyzstan saw its population fall in the mid-1990s due
to ethnic Russian emigration and a rise in mortality rates.
However, with 37% of Kyrgyz under the age of fifteen and high
fertility rates, Kyrgyzstan's population--now at 4.5 million--is
expected to almost double over the next fifty years.
Demographic statistics. Post-independence turmoil strongly
affected the reproductive situation in Kyrgyzstan. Fertility was
4.1 births per woman as recently as 1985 but dropped to 3.3 by
1995. At the same time, contraceptives from Russia dwindled for
several years, which may have exacerbated heavy reliance on
abortion. A Bishkek clinic study of its abortion patients in
1995 showed that over 30% had had at least three prior abortions
and 80% one or more. Repeated abortions, sexually transmitted
diseases, and poor nutrition due to falling incomes all weakened
women's reproductive health, causing infant mortality to rise.
Contraception and infant mortality. Kyrgyzstan's performance
relative to some of the targets set by the 1994 International
Conference on Population and Development (ICPD) held in Cairo
falls short in several respects. At just 30% in 1990,
contraceptive usage sank to 21% at present, according to First
Lady Mairam Akayeva. Most sources put Kyrgyz infant mortality at
30-40 per 1,000 live births, but the U.S. Census Bureau estimates
it at 78 (the ICPD target is 50 or fewer). UN Population Fund
(UNFPA) data show above-target maternal mortality as well.
Reproductive health. Reproductive health problems highlighted by
First Lady Akayeva include retarded physical development among
teenage girls, high mortality among mothers of large families,
abnormally high births to women age 40-49, low body-weight
infants (over 50%), prenatal disease and anemia, inadequate birth
spacing, and unwed teenage mothers.
USAID assistance. Kyrgyzstan is one of the Central Asian
republics included in USAID's regional Reproductive Health
Services Expansion Program started in 1993. To strengthen and
focus public policy planning, USAID personnel analyzed the
policies and practices that impede modern contraceptive usage,
ran strategic planning exercises with the Health Ministry and
conducted service provider surveys. They assisted Health
Ministry officials to update and distribute medical guidelines
for reproductive health services and set up three sites to train
several hundred clinicians, pharmacists and other service
providers in contraceptive technology. Two demonstration family
planning centers have been equipped and opened, and a
reproductive health communication campaign was developed and
launched. Because of concerns about the viability of the
commercial pharmaceutical sector, USAID trained pharmacists and
physicians in customer focus before finally beginning the
contraceptive social marketing campaign in Kyrgyzstan as an
extension of the Kazakhstan program.
Kyrgyz government and international programs. The Kyrgyz
government has mounted an active training and education program
in family planning, focused in the south where infant mortality
is particularly high. It is also redirecting efforts from the
old health system to the nascent private sector and to NGOs for
family health and reproductive services. Our embassy reports
that Government and donor activities contributed to a decline in
abortion rates to 330 per 1,000 by 1996 (from 610 in 1990). The
Kyrgyz Ministry of Health is also working with UNDP, UNFPA and
UNICEF on basic and reproductive health programs. The Japanese
Government is funding a new children's hospital in Bishkek, and
the Islamic Bank for Reconstruction and Development is assisting
the state maternity hospital. American and other foreign NGOs
are helping with clinical staff training and reproductive health
campaigns for teenagers.
KYRGYZ REPUBLIC: CHILDREN'S ISSUES
Bleak prospects. Six years after independence, the situation for
children remains grim. Despite government efforts, the current
socio-economic situation does not effectively guarantee decent
living conditions for children. Too often, basic needs for
shelter, food and clothing are not met. The rising cost of
sending a child to school has raised drop-out rates.
Infant mortality, vaccination and nutrition. In 1996, the U.S.
Census bureau estimated Kyrgyzstani infant mortality at 78 per
1,000 live births. Among the serious problems affecting
children, respiratory infections accounted for 48 percent of
infant mortality, prenatal conditions 22 percent, and diarrheal
diseases 13 percent. Immunization rates are quite high by world
standards. However, after independence, vaccine-preventable
diseases such as diphtheria, polio, and measles re-emerged. In
1994, the Ministry of Health cooperated with UNICEF, UNDP,
DANIDA, USAID/BASICS and the International Red Cross in opening a
children's immunization center. A range of serious nutrition-
related problems affect a large number of children, especially in
rural areas, due to large families, low incomes, and poor
supplies of major food products.
USAID assistance. USAID has undertaken initiatives in
immunization and prevention of child deaths from acute
respiratory infections and acute diarrhea which cause 60 percent
of infant mortality. The introduction of new training and
treatment protocols are expected eventually to reduce infant
mortality by half.
Inadequate social safety measures. Traditional social safety
measures are unable to cope with the social pressures affecting
families. In Bishkek, Osh and Jalalabad, children are regularly
observed begging or selling cigarettes and other sundries in the
streets, where they are often exposed to exploitation, abuse, and
crime. Arrested children are frequently denied lawyers and are
reportedly intimidated into confessions by being put in holding
cells with adults. The law prohibits the use of child labor
under age sixteen, but families frequently call upon their
children to work to help support the family.
Orphans. The number of children in full-time institutional care
is increasing. "Orphans" (over 15,000) do not necessarily lack
parents, but often come from dysfunctional families, often with
alcoholic parents. The number of handicapped children (nearly
7,000) is also rising. There are increasing reports of
abandonment due to parents' lack of resources to care for
children. In many cases, institutions have had to meet increased
needs with no additional funding. Although there is a law
allowing international adoptions, Kyrgyzstan has not determined
which children can be adopted by foreigners. In 1997, there were
no adoptions by U.S. citizens.
NGO assistance. In 1996, the Danish organization "Save the
Children" undertook to improve conditions for orphans and
handicapped children. Also the "Meerim Children's Fund" (headed
by First Lady Akayeva), and "SOS Kinderhof" organized village
orphanages for abandoned children. Immediate needs are now being
partially addressed, partly due to work by UNICEF, UNESCO, UNHCR,
Mercy Corps, Counterpart Consortium, Adventist Relief and France
Liberte.
Child abduction. Kyrgyzstan is not a party to the Hague
Convention on Child Abduction. Cases of children abducted to or
from the Kyrgyz Republic must be handled in the family courts of
the country to which they have been taken by local legal counsel.
The Department of State is not aware of any pending cases in
Kyrgyzstan.
KYRGYZ REPUBLIC: HEALTH ISSUES
Demographic indicators. The economic downturn in the six years
since independence has had a large impact on the health sector.
The death rate rose from a record low of 6.9 deaths per 1,000 in
1991 to 9 deaths per 1,000 in 1995. Major causes of mortality
are cardiovascular diseases, respiratory diseases, accidents, and
tumors. Tuberculosis and sexually-transmitted diseases have
increased significantly. The country's mortality rate from
tuberculosis has doubled in the past five years. Other
demographic indicators show an increase in maternal mortality to
80 per 100,000 live births. Nearly half of these deaths are
preventable. Approximately 85 percent of Kyrgyzstani women
suffer from anemia.
Services and facilities. Like all former Soviet systems,
Kyrgyzstan's health system relies heavily on inpatient and
tertiary (rehabilitative) hospital-based care. Although an
infrastructure exists to provide primary health care, most health
resources are directed at tertiary facilities. With a declining
health budget, the government is attempting radical changes in
its financing of health care services.
USAID assistance. As one of the major donors in the health
sector, USAID has provided approximately $6 million during the
past two years to improve the efficiency and quality of health
care services. USAID works closely with other donors, especially
the World Bank and United Nations Fund for Children, on policy-
related issues in health reform and service delivery. In
addition, under USAID's hospital partnership program the Kyrgyz
government has developed medical partnerships with U.S. hospitals
to exchange and transfer technology. USAID has also initiated a
new program to improve diagnosis and treatment of tuberculosis.
Reform efforts. The government, with USAID assistance, developed
an experimental model of health reform in the Issyk-Kul region to
address the problem of health sector financing. The pilot model
developed mechanisms to generate revenues through an insurance
system, introduced new provider payment systems, and established
family group practices to improve primary health care facilities.
To date, 90 percent of Issyk-Kul residents have enrolled in a
family group practice. With additional assistance from the World
Bank and the Asia Development Bank, the government is seeking to
expand the Issyk-Kul model nationwide.
KYGRYZ REPUBLIC: ASSISTANCE PROGRAM OVERVIEW
The U.S. government has provided Kyrgyzstan approximately $340
million in humanitarian, technical, and investment promotion
assistance since 1992. This is the highest per capita figure for
any of the five Central Asian countries, and reflects the
government of Kyrgyzstan's strong commitment to market economic
and democratic reform.
Privatization and trade programs. USAID supported the
Kyrgyzstan's voucher-based mass privatization program from
September 1993 until that program's completion in September 1996.
USAID is now focusing on privatizing "blue chip" state
enterprises and developing Kyrgyzstan's capital markets. In
addition, USAID advisors are assisting Kyrgyzstan develop a legal
framework for trade and investment that will facilitate its
accession to the World Trade Organization.
Treasury assistance. The Treasury Department funds a resident
government debt advisor in Bishkek who counsels Kyrgyzstan's
Ministry of Finance and National Bank on the fundamental
principles of a government-run securities market.
Small business assistance. The U.S. has budgeted $12.5 million
for the Central Asian-American Enterprise Fund's efforts to
develop small and medium-sized businesses in Kyrgyzstan through
equity investments and micro-lending. The Fund has committed
$3.7 million for four investments in food processing, light
manufacturing, and real estate ventures.
Democratic reform. The United States has budgeted approximately
$8.7 million for democracy building programs in Kyrgyzstan since
1992. USAID focuses much of this effort on supporting the
development of non-governmental organizations (NGOs). USAID
funds programs run by the International Foundation for Election
Systems, the National Democratic Institute, and the American Bar
Association. These programs provide NGOs training on how to
influence government policy and help build the legal foundation
for NGO operations. Another major USAID project seeks to
increase the autonomy and effectiveness of regional government
structures.
Health and family planning. USAID funds a hospital partnership
between Kansas University Medical Center and the Institutes of
Obstetrics/Pediatrics and of Oncology/Radiology in Bishkek which
focuses on nursing reform, neonatology, family medicine,
management training and oncology. Since 1993, USAID has also
provided funding for the Central Asia Reproductive Health
Services Expansion Program, designed to reduce maternal mortality
and decrease reliance on abortion through the use of modern
contraceptives. The program also helped the Kyrgyzstan State
Medical Institute develop its family planning curriculum. Other
USAID funded programs aim to develop consumer-oriented and cost-
effective family group practices in rural areas, and to assist
with the implementation of the GOKG's national health care
insurance law.
Infectious disease. USAID and the U.S. Center for Disease
Control are also operating training programs aimed at battling
infectious diseases such as polio, diphtheria, and Kyrgyzstan's
two major causes of child mortality -- pneumonia and diarrhea.
Environment and energy. The U.S. has provided over $7.4 million
since 19 92 for projects based in Kyrgyzstan to reduce regional
economic and political tensions generated by transboundary
environmental and energy issues. USAID is encouraging regional
cooperation through water sharing and use agreements among all
five Central Asian republics which share the Aral Sea Basin.
USAID is also working with the government of Kyrgyzstan to
establish a legal and regulatory framework for its oil and gas
industries. These projects aim to attract investment to the oil
and gas sector and to promote the use of cleaner burning domestic
energy systems such as natural gas and hydroelectricity.
Humanitarian assistance. Although humanitarian assistance is no
longer a major focus of U.S. assistance programs in Kyrgyzstan,
the U.S. Department of Agriculture (USDA) did deliver $13.65
million in food aid under its Food for Progress program in FY 97.
The USDA also provided $22.4 million in food and other
commodities to private voluntary organizations operating in
Kyrgyzstan in FY 96.
Training and exchanges. USIA runs a full range of programs in
Kyrgyzstan including the Fulbright Academic Exchange, the Bradley
High School Exchange, the Muskie Graduate Program, and the
International Visitors Program for future leaders.
Agriculture exchanges. USAID has provided $2.5 million to fund
farmer-to-farmer programs that provide technical assistance in
the agribusiness sector. These programs have brought 151 U.S.
farmers and agricultural professionals to Kyrgyzstan as
volunteers since FY 92 in an effort to increase Kyrgyzstani
access to credit and to provide technical assistance on
enterprise start-up, business planning, and product distribution
and marketing.
Scientific and business exchanges. Kyrgyzstani managers and
scientists also participate in the U.S. Department of Commerce's
Special American Business Internship Training Program, which
places business and scientific leaders with private U.S.
companies for three-to-six month internships.
KYRGYZ REPUBLIC: ENVIRONMENTAL ISSUES
Kyrgyzstan's environmental concerns are centered on pollution
reduction and resource protection.
Pollution. Kyrgyzstan's pollution problems are not as severe as
those of most of the former Soviet republics due to its
comparative lack of industry. However, the areas of Kyrgyzstan
where industrialization has occurred have experienced significant
environmental damage, including contaminated water supplies,
toxic air pollution and hazardous solid waste pollution.
Soviet nuclear waste. Kyrgyzstan is burdened with radioactive
waste deposits left by the former Soviet authorities and has been
unsuccessful in its attempts to have Russia take responsibility
for these deposits.
Commitment to environmental protection. Despite a lack of
financial resources, Kyrgyzstan is trying to adopt
environmentally sound domestic policies and seems committed to
protection of the environment. It has, for example, joined the
Globe program initiated by Vice President Gore with two schools
in Bishkek now full participants in the program.
Economic pressures. Kyrgyzstan's desire for environmental
conservation is at odds with its need for economic development.
The country's lack of industrial development makes the
exploitation of natural resources Kyrgyzstan's best source for
sustaining economic growth.
USG activities. The Department of State has established a
regional Environmental Hub in neighboring Uzbekistan to monitor
environmental issues in Central Asia as part of the its
Environmental Initiative.
KYRGYZ REPUBLIC: OVERVIEW OF U.S. MISSION
Embassy facilities and staff. The U.S. Embassy in Bishkek is
located in a crowded interim facility in downtown Bishkek that
formerly served as a kindergarten. A new U.S. Embassy Chancery
is being built on an 11-acre site in the suburbs of Bishkek.
Construction is well under way, with completion estimated for
next August and occupancy in September.
Staff. The post has a small staff, with a total of 19 U.S.
direct-hire employees, three personal services contractors, and
75 Kyrgyz nationals. Five U.S. government agencies are
represented - State, USIA, DOD, AID and Peace Corps. There are
approximately 80 Peace Corps volunteers in country.
BIOS
Kyrgyzstan
Bishkek
President
Askar Akayev
(since 1990)
Year of Independence: 1991
Population: approximately 4.5 million
Cabinet of Ministers
Key Kyrgyzstani Officials
Prime Minister
Apas Jumagulov
State Secretary
Ishenbay Abdurazakov
First Deputy Prime Minister (Economics)
Kemelbek Nanayev
Chairman. State Property Fund
Askar Sarygulov
Deputy Prime Minister (Agriculture)
Karimshev Abdimomunov
Chairman. Kyrgyzaltyn State
Deputy Prime Minister (Social Issues)
Mira Jangaracheva
Gold Mining Company
Dastan Sarygulov
Minister of Agriculture & Water Resources
Jumkadyr Akineyev
Chairman, National Bank
Marat Sultanov
Minister of Architecture & Construction
Aleksandr Moiseyev
Chief Justice. Constitutional Court
Cholpon Bayekova
Minister of Cooperation with CIS Countries
Yan Fisher
Commander. National Guard
Abdygul Chotbayev
Minister of Culture
Cholponbek Bazarbayev
Ambassador to the United States
Bakyt Abdrisayev
Minister of Defense
Col. Gen. Myrzakan Subanov
UN Permanent Representative
Zamira Eshmambetova
Minister of Education & Science
Askar Kakeyev
Minister of Emergency Situations & Civil Defense
Mumbetjunus Abylov
Minister of Environmental Protection
Kulubek Bokonbayev
Zhogorku Kenesh (bicameral parliament)
Minister of Finance & Economy
Talaybek Koychumanov
Minister of Foreign Affairs
Muratbek Imanaliyev
Chairman, Legislative Assembly
Minister of Health
Naken Kasiyev
(lower house)
Usup Mukhambayev
Minister of Industry & Trade
Andrey lordan
Chairman. Assembly of People's
Minister of Internal Affairs
Maj. Gen. Omurbek Kutuyev
Representatives (upper house)
Almanbet Matubraimov
Minister of Justice
Larisa Gutnichenko
Minister of Labor & Social Welfare
Asylgul Abdurekhmenov
Minister of National Security (KNB)
Feliks Kulov
Minister of Transportation & Communications
Jantoro Satybaldiyev
October 1997
KYRC
STAN
Population: 4.8 million
GOVERNMENTAL STRUCTURE
Ethnic Divisions:
-- Kyrgyz
(52%)
-- Russian
(21%)
-- Uzbek
(12%)
Constitutional
Supreme Council
President
Date of Independence: 31 August 1991
Court
(Zhogorku Kenesh)
Askar AKAYEV
Status of Political Reform:
-The President is popularly elected and has appointment
Chairman,
Chairman,
Prime Minister
powers to cabinet posts, local officials, and the National
Legislative Assembly
Assembly of
People's Representatives
Apas JUMAGULOV
Bank, but he need parliamentary confirmation for
Usup MAKHAMBAYEV
Almambet MATUBRAIMOV
appointments to the post of Prime Minister, Prosecutor
General, and judges on the Constitutional and Supreme
Ministries
Courts.
-- President Akayev was reelected to a second term in late 1995,
National Bank
receiving over 70 percent of the vote in a flawed, but generally
Chairman
open election.
Marat SULTANOV
-- President Akayev's powers significantly expanded at the
expense of the legislature because of a 1996 amendment
to the constitution that was passed in a national referendum.
Regional Governors
-- The Parliament and the Constitutional Court are fairly weak in
practice and have squabbled among themselves, leaving the
executive branch to dominate Kyrgyzstan's politics.
Composition of Legislature:
-- The Zhogorku Kenesh is a bicameral legislature
composed of 105 deputies.
- The Legislative Assembly--which is more powerful
and controls most of the parliamentary powers--has
35 deputies and the Assembly of People's Representatives--
which meets several times annually to discuss budget and
tax issues-has seventy legislators.
Akayev's insistence on a bicameral legislature may
reflect his desire to reduce the influence of legislators
that hail from Kyrgyzstan's Osh region, which generally
feels neglected by the current administration
Withdrawal/Redaction Marker
Clinton Library
DOCUMENT NO.
SUBJECT/TITLE
DATE
RESTRICTION
AND TYPE
001. reports
bios (8 pages)
c 1997
P1/b(1)
COLLECTION:
Clinton Presidential Records
First Lady's Office
Speechwriting (Noa Meyer Subject Files)
OA/Box Number: 13007
FOLDER TITLE:
The Trip of the First Lady to Kazakhstan, Kyrgystan, Uzbekistan, Russia, and Ukraine,
November 9-18, 1997 (David) [Binder] [3]
2012-0869-S
kc956
RESTRICTION CODES
Presidential Records Act - |44 U.S.C. 2204(a)]
Freedom of Information Act - 15 U.S.C. 552(b)]
P1 National Security Classified Information [(a)(1) of the PRA
b(1) National security classified information [(b)(1) of the FOIA]
P2 Relating to the appointment to Federal office |(a)(2) of the PRA]
b(2) Release would disclose internal personnel rules and practices of
P3 Release would violate a Federal statute [(a)(3) of the PRA]
an agency |(b)(2) of the FOIA]
P4 Release would disclose trade secrets or confidential commercial or
b(3) Release would violate a Federal statute |(b)(3) of the FOIA|
financial information [(a)(4) of the PRAJ
b(4) Release would disclose trade secrets or confidential or financial
P5 Release would disclose confidential advice between the President
information ((b)(4) of the FOIA]
and his advisors, or between such advisors |a)(5) of the PRA]
b(6) Release would constitute a clearly unwarranted invasion of
P6 Release would constitute a clearly unwarranted invasion of
personal privacy [(b)(6) of the FOIA]
personal privacy |(a)(6) of the PRA]
b(7) Release would disclose information compiled for law enforcement
purposes |(b)(7) of the FOIA]
C. Closed in accordance with restrictions contained in donor's deed
b(8) Release would disclose information concerning the regulation of
of gift.
financial institutions [(b)(8) of the FOIA]
PRM. Personal record misfile defined in accordance with 44 U.S.C.
b(9) Release would disclose geological or geophysical information
2201(3).
concerning wells |(b)(9) of the FOIA]
RR. Document will be reviewed upon request.
MAPS
EVENTS IN BISHKEK
Arrival Statement on
U.S. Humanitarian Aid
November 12 - Bishkek, Kyrgyzstan
Event: USG Humanitarian Flight (IL-76) to Bishkek and Osh
(AN-26)
Dicussion: A USG contracted IL-76 carrying pharmaceuticals for
10 medical institutes in Bishkek, clothing for Bishkek and Osh,
and pharmaceuticals for Osh will land the envening of November
11 in Bishek. This aircraft and a second cargo aircraft
(An-26) will be on the ramp in Bishkek and should be
downloading cargo while the First Lady is in Bishkek on Nov 12.
Suggested talking points that might be included in the First
Lady's remarks concerning the Bishkek humanitarian mission are:
O This humanitarian mission is carrying pharmaceuticals and
clothing for both Bishkek and Osh donated through three U.S.
private volunteer organizations.
O I want to personally acknowledge the hard work and
dedication of CitiHOPE and the Reverand Paul Moore and his
staff, who I understand are here today, Heart-to-Heart/The
approx.
American Academy of Family Physicians, and Americorps/RSVP of
Indiana. Their cooperative efforts go well beyond global
politics and humanitarian assistance programs and are a
shinning example that the people of the U.S. care for and
support the people of Kyrgyzstan during a period of critical
change.
O I encourage you to continue your humanitarian efforts in
Kyrgyzstan and the rest of the Newly Independent States during
this critical time of transition.
o The aircraft that you see unloading cargo here today is the
30th humaitarian airlift to Kyrgyzstan funded through a USG
funded transportation program called Operation Provide Hope
which has delivered over $70 million in humanitarian assistance
from the American people to the the people of Kyrgyzstan since
1992.
O By the end of this year, it is estimated that this program
will have delivered over $2 billion in humanitarian assistance
to the twelve countries of the Newly Independent State (NIS).
KYRGYZSTAN: ARRIVAL/U.S. ASSISTANCE
SCENESETTER
As you deplane, you will be greeted by First Lady Akayeva,
Foreign Minister Imanaliyev, Chief of Staff Jumanliyev and U.S.
Ambassador Anne Sigmund.
An IL-76 transport plane, carrying humanitarian assistance for
hospitals and orphanages in Bishkek and Osh will be unloading
medical supplies on the tarmac. You will observe the unloading
and make a arrival statement highlighting this assistance. The
event is scheduled to last 15 minutes.
BACKGROUND
The humanitarian assistance cargo is in two parts. The Bishkek
donation consists of medical supplies and medicines from
CitiHope International and Project Hope, and clothing donated by
the Retired and Senior Volunteer Program for Allen County
Indiana (RSVP). CitiHope and Project Hope's donations will be
distributed to three hospitals, four health centers, a research
center and an orphanage. The estimated value is more than $2
million.
The RSVP donation consists of clothing and goodwill items valued
at $5,000. Bishkek Peace Corps volunteer Katie Joley's mother,
who is the Director of RSVP, coordinated this assistance. The
Peace Corps will deliver the items to those most in need.
The Osh mission consists of pharmaceuticals donated by Heart-to-
Heart International, valued at over $700,000, to be given to the
Osh Free Medical Clinic. RSVP has also provided $5,000 worth of
children's clothing which Osh-based Peace Corps volunteers will
distribute.
PARTICIPANTS
Government of the Kyrgyz Republic
First Lady Mayran Akayeva
Foreign Minister Muratbek Imanaliyev
Chief of Staff, President's Office, Kubanychbek Jumanliyev
(TBD) Kyrgyz Ambassador to the U.S., Bakytbek Abdrisaev
American Embassy
Ambassador, Anne Sigmund
Deputy Chief of Mission, Angus Simmons
NGO Representatives
Citihope, Reverend Paul Moore and his staff
2
KYRGYZ REPUBLIC: ARRIVAL STATEMENT/U.S. ASSISTANCE PACKAGE
I am delighted to be here in the Kyrgyz Republic.
Under President Akayev, the Kyrgyz Republic has been a leader
in Central Asia in building a democratic nation with a market
economy, in a multi-ethnic society.
The Kyrgyz government also recognizes the importance of
education and women's rights, and, while modernizing its
economy, the need to protect its environment.
The United States has been a committed partner in these
endeavors, providing assistance in democratic institution-
building, economic reform and education.
Many of our efforts have been in partnerships with non-
governmental organizations. I am particularly pleased to
highlight such an effort today.
The aircraft unloading cargo here today is the 30th
humanitarian airlift to the Kyrgyz Republic from Operation
Provide Hope, a U.S. government-funded transport program.
This humanitarian mission is carrying more than two million
dollars worth of pharmaceuticals and clothing for hospitals
Bishkek and Osh (pronounced like "ocean") donated through
three U.S. private volunteer organizations; CitiHope
International, Project HOPE, The Peace Corps, Heart-to-Heart
International, and RSVP.
I wish to acknowledge the hard work and dedication of Madame
Akayeva, without whose assistance this humanitarian mission
could not have been coordinated.
I would like to praise the dedication and hard work of the
Reverend Paul Moore and his staff at Citihope, who I
understand are here today, as well as Heart-to-Heart/The
American Academy of Family Physicians, and Americorps/RSVP of
Indiana.
The United States recognizes that the Kyrgyz Republic has
undertaken a difficult journey towards a freer and more
inclusive society.
3
I commend President Akayev for his leadership in that
endeavor, and look forward to meeting with him later today.
I am confident that our discussions will strengthen the
diverse and close ties between the United States and the
Kyrgyz Republic.
I thank you for your very warm reception this morning and look
forward to my visit here. God bless you all.
Tour Market / FINCA
Roundtable Discussion
FINCA FACTSHEET
FINCA Worldwide
Founded in 1984, The Foundation for International Community
Assistance (FINCA) is a nonprofit, private voluntary organization.
In 13 developing countries (Mexico, Guatemala, Honduras, El
Salvador, Costa Rica, Ecuador, Peru, Haiti, Dominican Republic,
Uganda, Malawi and Kyrgyzstan) as well as the U.S. (Washington,
D.C. and Minnesota), FINCA Village Banking programs provide small
loans, a savings program and technical support for the self-
employed poor, helping them to work their own way out of poverty.
Since 1989, USAID has provided $23 million to FINCA International
affiliates including El Salvador ($10 million), Nicaragua ($1.5
million), Malawi -- through World Learning ($1.47 million),
Kyrgyzstan ($6.2 million), Uganda ($1.77 million), Honduras ($1
million), Tanzania ($1 million) and Ecuador ($250,000).
A Village Banking group consists of 20 to 50 neighbors-usually
80% or more are women-who come together to guarantee one
another's loans, to administer group lending and saving
activities and to provide mutual support. By offering credit,
not charity, to these women, FINCA enables them to start or
improve their own small businesses, which provide a steady source
of employment and income for themselves and their families.
Throughout most of the world, working capital-the money needed to
start or expand a business-is simply not available to the poor.
During 1996, FINCA provided $16, 911, 051 in working capital for
69,888 small businesses in 14 countries.
FINCA Kyrgyzstan
In 1994 FINCA received a $6.2 million grant from USAID to
establish a microenterprise credit project in Kyrgyzstan. In two
and one-half years of operations, FINCA Kyrgyzstan (F/K) has
successfully refined and implemented its international
proprietary business technologies to help meet the needs and
improve the lives of the economically disadvantaged of
Kyrgyzstan. To date, F/K has disbursed over US $1.4 MM to
approximately 15,000 individuals with a bad debt expense of less
than US $500. The project is operating in three Oblasts and has
100 national employees. During the period ending June 30, 1997,
F/K reported an increase in the number of active Village Banks
from 349 to 421 representing a net gain of 21%.
Over 85% of loan recipients have been women. With the collapse
of the Soviet system many men lost their jobs and families lost a
comfortable life style as food became expensive and scarce and
schools and medicine were no longer free. Self-employment became
the only hope for some. With the help of FINCA, many women were
able to obtain small working capital loans to buy rice, eggs and
other products which they could sell in the local bazaars.
Through FINCA's Village Banking savings system these women have
increased their working capital and income which allows them to
purchase butter, sugar, and meat-luxuries they previously could
not afford.
FINCA Briefing Paper
FINCA Worldwide
What is FINCA
Founded in 1984, The Foundation for International Community
Assistance (FINCA), is a nonprofit, private voluntary
organization. In 13 developing countries (Mexico, Guatemala,
Honduras, El Salvador, Costa Rica, Ecuador, Peru, Haiti,
Dominican Republic, Uganda, Malawi and Kyrgyzstan) as well as the
U.S. (Washington, D.C. and Minnesota), FINCA Village Banking
programs provide small loans, a savings program and technical
support for the self-employed poor, helping them to work their
own way out of poverty. FINCA's first major partnership with
USAID was in El Salvador in 1989 when USAID provided $10 million
to FINCA to establish and build the CAM (Centro de Apoyo a la
Microempresa).
What is a Village Banking group
A Village Banking group consists of 20 to 50 neighbors-usually
80% or more are women-who come together to guarantee one
another's loans, to administer group lending and saving
activities and to provide mutual support. By offering credit,
not charity, to these women, FINCA enables them to start or
improve their own small businesses, which provide a steady source
of employment and income for themselves and their families.
FINCA's average loan per borrower is only $144, yet the
accumulated savings of members exceed $3.2 million.
Why credit
Throughout most of the world, working capital-the money needed to
start or expand a business-is simply not available to the poor.
In its twelve years, FINCA has proven that, given access to
credit, poor people can create their own business, repay their
debts and set aside savings for the future. During 1996, FINCA
provided $16, 911, 051 in working capital for 69,888 small
businesses in 14 countries. These business provided critical
income for families, and in some cases, employment for additional
family members or members of the community. While income and
profits are hard to measure, FINCA-supported small business
generated $3, 746, 783 in family savings worldwide-an average of
$54 per family. While $54 may not seem like a lot of money, it
represents three weeks pay in Uganda and over three weeks salary
in Malawi and Kyrgyzstan.
Who benefits
The typical FINCA borrower is a woman between 25 and 44 years
old, supporting, or helping to support, three children. She has
little hope of being hired by a business outside of the home.
She wants to start her own small business that would allow her to
1
earn the income needed to feed, clothe and educate her children.
She has a plan to improve her life and that of her family, yet
she is too poor to qualify for a loan from a commercial bank. A
FINCA loan is clearly the best-and perhaps the only-hope she has
for improving her prospects.
FINCA in Kyrgyzstan
FINCA's performance in Kyrgyzstan
In 1994 FINCA received a $6.2 million grant from USAID to
establish a microenterprise credit project in Kyrgyzstan. In two
and one-half years of operations, FINCA Kyrgyzstan (F/K) has
successfully refined and implemented its international business
technologies to help meet the needs and improve the lives of the
economically disadvantaged of Kyrgyzstan. To date, F/K has
disbursed over US $1.4 MM to approximately 15,000 individuals
with a bad debt expense of less than US $500. During the period
ending June 30, 1997, F/K reported an increase in the number of
active Village Banks from 349 to 421 representing a net gain of
21%. The project is operating in three Oblasts (Chui in the
north and Osh and Jalal-Abad in the southwest) and has 100
national employees. FINCA's activities in Kyrgyzstan directly
address USAID's Strategic Objective 1.3 "Accelerated development
and growth of private enterprises" and is highly regarded by the
Ambassador and USAID Country Representative there.
F/K has established and maintained the highest level of financial
performance among microfinance practitioners in Kyrgyzstan. F/K
charges a positive interest rate through the effective design and
implementation of an appropriate pricing structure. By charging
interest rates that sufficiently cover administrative costs,
expanding the scope of operations, and creating an efficient
institutional structure, F/K has consistently posted gains
towards self-sufficiency. In May 1997, F/K achieved its first
month of financial self-sufficiency, or break-even, after two
years of lending. FINCA Malawi, Honduras and Nicaragua have also
achieved financial self-sufficiency. In addition, F/K has
maintained repayment rates in excess of 98%, the highest return
in both the informal and formal sectors.
Through August 1997, F/K has expended $3.0 MM of USAID funds in
grant management, on-site technical assistance, local operations,
overhead and loan capital. F/K has utilized this funding to
develop the institution as a financial intermediary, capitalize
the loan portfolio, subsidize operating losses and purchase fixed
assets. Therefore, USAID's funding has been used as a catalyst
to build efficient operations and scale.
Who receives the loans
Over 85% of loan recipients are women. With the collapse of the
Soviet system many men lost their jobs and families lost a
2
comfortable life style as food became expensive and scarce and
schools and medicine were no longer free. Self-employment became
the only hope for some. With the help of FINCA, many women were
able to obtain small working capital loans to buy rice, eggs and
other products which they could sell in the local bazaars.
Through FINCA's Village Banking savings system these women have
increased their working capital and income which allows them to
purchase butter, sugar, and meat-luxuries they previously could
not afford.
Future performance projections
In the coming years, FINCA will accelerate the rate of
microfinance activities. To date, F/K has leveraged USAID
funding by directly lending $1.4 MM in funds originating from
USAID. F/K clients have lent approximately $2.0 MM of their
personal savings, a direct result of USAID's funding. Combined
lending-USAID and client savings-through August 1997 totaled $3.4
MM, 113% of grant funds expended. This ratio will increase over
the successive periods. The remaining grant funds, $3.2 MM, will
yield nearly $13 MM in loans originating from USAID grant funds
during the period from September 1998 to August 2000. Moreover,
clients are projected to lend $17 MM for the same period
extrapolating from historical data. Thus the expected ratio of
total combined lending-USAID and client savings-for the remaining
grant funds through the year 2000 will equal nearly 800%.
USAID funding to FINCA
Since 1989, USAID has obligated $23 million to FINCA
International affiliates including El Salvador ($10 million),
Nicaragua ($1.5 million), Malawi -- through World Learning ($1.47
million), Kyrgyzstan ($6.2 million), Uganda ($1.77 million),
Honduras ($1 million), Tanzania ($1 million) and Ecuador
($250,000). Of the $23 million, $16.9 million has been spent on
projects that continue to benefit tens of thousands of poor
families. FINCA programs disbursed $20 million in loans last
year. The funding for the Honduras and Tanzania projects was
just obligated and has not yet been disbursed. USAID recently
approved a grant to Shorebank for operations in the Caucuses new
projects that will include a $6.94 million subagreement for FINCA
to start three affiliates (Armenia, Georgia and Azerbaijan) and a
technical assistance Hub in Georgia.
FINCA has also received two Matching Grants from USAID. The
first Matching Grant for $1 million began in September 1992. The
second Matching Grant is for $4,997,706 for the five year period
ending September 1999. In addition, FINCA has received start-up
funding for its Village Bank Capital Fund and for implementation
of a FINCA Affiliate Financial System through USAID's
Implementation Grant Program ($1.1 million grant and $1 million
MSED loan).
3
PAGE
29
4TH STORY of Level 1 printed in FULL format.
Copyright 1997 Information Access Company,
a Thomson Corporation Company;
ASAP
Copyright 1997 UNESCO (France)
UNESCO Courier
January, 1997
SECTION: Pg. 32; ISSN: 0041-5278
IAC-ACC-NO: 19208924
LENGTH: 2751 words
HEADLINE: Village banking: a report from 5 countries.
BYLINE: Scofield, Rupert
BODY:
In Latin America, Africa and Asia, an international nonprofit foundation has
created a 3, 000-strong network of autonomous village banks
HONDURAS
For as long as anyone can remember, the women of Siguatepeque, a rural pueblo
in central Honduras, have produced ceramics. You can see them for sale on the
side of the highway that runs between the capital city of Tegucigalpa and the
northern city of San Pedro Sula: great stacks of flower pots, urns, plates and
ornamental pieces in the shapes of roosters, parrots, dogs, cats and caimans.
Six years ago, most of the women worked for a man - let's call him Don
\lejandro - who purchased the pottery the women made, and resold them to a
wholesaler who trucked them to retail markets in Tegucigalpa. The women of
Riguatepeque were poor, and disorganized. Most of them sold the pieces as fast
IS they made them, for a fraction of what Don Alejandro and the retailers earned
on them. They had no choice: they needed the money to buy their daily food.
In 1990, when I was looking for a suitable place for the first village bank
0 be organized by the Foundation for International Community Assistance (FINCA)
.n Honduras, a friend of mine suggested I go to Siguatepeque. The organizational
meeting took place with about thirty women, in Don Alejandro's house. Our host
vas quite chagrined when, halfway through the meeting, I explained that the bank
vas for women only. Still, Don Alejandro was a good sport, and supported the
.dea that FINCA would make $ 50 loans to the assembled women to invest however
they felt best, and that, four months later, they would repay the loan with
interest of 3 per cent per month. Another condition of the loan, I explained,
was that they would save at least 20 per cent of it, or $ 10.
I kept waiting for some of the women to drift away, or to be scared off by
the interest or the savings requirement, but they all remained, nodding
solemnly, as if they understood and were in complete agreement. I didn't tell
them it was only the second time I had organized a village bank. But as I was to
learn from this and subsequent organizing meetings, they all go this way. It was
is if the women already knew how the system worked. It was that simple.
PAGE
33
UNESCO Courier January, 1997
.o1d me she intended to borrow 100,000.
The men in the village, who had initially viewed the village bank with
suspicion, now welcomed 10. As the Kimantu village chief told me: "When the
vomen first started to hold their meetings, we men were concerned. We thought
they were talking about divorcing us. But then, when we saw them earning money,
and they no longer came to us for money to buy salt, and pay school fees, we saw
:hat the village bank was a good thing. But Mr. Scofield, I have one question.'
'And what is that?" I asked. The chief grinned. "Can you create a village bank
for us men?"
In many communities of Uganda, Aids has left its brutal imprint, sweeping
away husbands, wives, and sometimes entire families. In most cases, however, the
children survive, to be raised by the village as a whole. Many Ugandan village
bankers are supporting not only their own children, but those orphaned by
leceased relatives and neighbours. It is an intensely sad, but at the same time
inspiring experience to meet these selfless, struggling mothers. "Women who are
_n village banks are seen as the most responsible members of the community, was
:he way one observer put it. "It 1S natural that people look to them, when they
vant a secure future for the children they leave behind.
KYRGYZSTAN
Can microenterprise succeed in a country where, until recently, private
enterprise was officially discouraged, considered immoral, and, in some cases,
even outlawed? In 1994, FINCA established the first village banks in the newly
independent state of Kyrgyzstan, Central Asia, in the capital city of Bishkek.
With the snow-capped Himalayas as a backdrop, Bishkek is a city just coming
:0 life, economically, after years of surviving on subsidies from mother Russia.
Today, an estimated 15 per cent of the population is unemployed, and more
expected as state-run enterprises are privatized or closed altogether.
Increasingly, the population is moving to self-employment as an alternative to
the meagre wages of the public sector.
Today, the village bank Bereke ("Blessing") is receiving its first loan.
Village banks are smaller in Kyrgyzstan than in other countries in the FINCA
letwork, reflecting an added cautiousness on the part of the members towards
their neighbours, the vast majority of whom have never operated a business.
FINCA has learned to respect the members' appreciation of local conditions as
eing far superior to its own, and seldom intervenes in decisions regarding the
selection of the bank's members, or in the loan approval process. In this case,
nost of the fifteen borrowers will be investing their loans in consumer goods,
:o be sold in the local market. A great feast for the visitors was laid out on a
jorgeous, hand-woven rug in the village bank president's living room. Other
rugs, of equally dazzling patterns, adorned the walls. These rugs, which sell
lomestically for less than $ 10, can command over $ 100 in export markets.
"hough it was only mid morning, glasses of brandy were offered and accepted.
The meeting began, presided over by a democratically elected President,
Treasurer and Secretary. The President followed the standard village bank
agenda: financial report, approval and disbursement of loans, and collection of
obligatory and voluntary savings. Besides the small size of the village banks,
the methodology has suffered little modification in its adaptation to the Kyrgyz
context. Contrary to initial warnings that no one would be interested in small
PAGE 34
UNESCO Courier January, 1997
loans in Kyrgyzstan, FINCA has found the demand to be strong. To date, FINCA
Kyrgyzstan has reached 2,300 borrowers, and, in a country of five million, the
word is just beginning to spread.
GRAPHIC: Illustration; Photograph
LANGUAGE: ENGLISH
IAC-CREATE-DATE: March 24, 1997
LOAD-DATE: March 25, 1997
KYRGYZSTAN EVENT PAPER: FINCA ROUNDTABLE AND MARKET TOUR
SCENESETTER
In Novo Povloka village you will meet a total of 24 FINCA
bank members, divided into two roundtables of 12 members,
each roundtable representing a village bank. The roundtable
participants are microentrepreneurs, primarily women, who
have businesses in the local market.
Novo Povloka is approximately 20 minutes from Bishkek. The
motorcade will proceed to the single family home where the
village "Bolsun" bank group meets. There will be three-four
people outside the home to greet you and the press may also
be present. As you enter the home, you should remove your
shoes.
You will hold the roundtable sitting in traditional fashion
on the carpeted floor of the meeting room. The estimated
time of the roundtable is 10 minutes. You will then tour
the Novo Povloka market, viewing stalls owned and operated
by FINCA members.
The second roundtable will meet in a traditional Kyrgyz
yurt, and you should remove your shoes before entering. You
will observe a typical "Saykal" bank meeting and have a
brief discussion with bank members.
BACKGROUND
FINCA is operating under a four-year, $6.2 million USAID
grant. It is a microfinance program which targets the poor,
providing lending and savings services. To date, FINCA has
made approximately 20,000 loans. Repayment rates are in
excess of 98 percent.
In Novo Povloka, FINCA has established eight village banks
with 100 active members. Over 90 percent of bank members
are women. The average loan size is $250. Members have
used their loans to expand their businesses and excess
profits to improve their families' standard of living. It
is estimated that each FINCA client partially or fully
supports eleven others from their small businesses.
PARTICIPANTS:
USAID
John Bayer
C.J. Rushin-Bell
FINCA/Kyrgyzstan Management Staff
Mark Rostal, Chief of Entourage
Kim Kuznia, Osh Regional Manager
Steve MacLeod, Osh Manager
Reuben Summerlin, Financial Services Advisor
Kirsten Weiss, Business Training Manager
Indira Ruzieva, Bishkek Finance Manager
Galena Griniova, Osh Senior Accountant
Ainura Turdalieva, Bishkek Financial Services Manager
Nurjan Miasheva, Osh Financial Services Manager
Vladimir Kovaliov, Bishkek Internal Audit Manager
Ainura Turgunbaeva, Osh Office Manager
TALKING POINTS
To the poorest women microentrepreneurs, $80 is a
fortune. They can invest this money to make their labor
more productive.
Village banks can break the vicious cycle of poverty.
Without credit, poor people may work hard, but stay poor
because of lack of opportunity and capital.
FINCA borrowers receive working capital SO that their
efforts become more productive.
As village bankers become more productive, they increase
their income and are able to accumulate savings for other
investments and for family emergencies.
70 percent of the world's poor are women. Worldwide
there is an increase of women-headed households, in which
a mother is the sole support for her children.
Women invest more of their income in their families.
Extra cash in the hands of mothers lifts a family out of
poverty faster than increased income in the hands of men.
Having a steady income and a savings account raises a
woman's self-esteem and status.
Village banks are grassroots democracy in action: members
elect their leaders, design their by-laws, keep their
books, manage their funds and are responsible for loan
supervision.
Courtesy Call
on President Akayev
KYRGYZSTAN: MEETING WITH PRESIDENT AKAYEV
SCENESETTER
You will pay a courtesy call on President Akayev at the "Beli
Dom" (White House). In the meeting, Akayev will probably be
accompanied by Foreign Minister Imanaliyev and his Chief of
Staff Jumaliev. Akayev speaks a few words of English, but will
probably speak Russian for the meeting.
In this meeting you should praise President Akayev for the
political and economic reforms the Kyrgyz Republic has taken
thus far, and reaffirm the warm and friendly relations between
the U.S. and Kyrgyzstan. You should encourage President Akayev
to continue the reform process, in particular in the areas of
human rights, press freedoms (making libel a civil, rather than
criminal offense), and democratic institution-building. You
should remind President Akayev that foreign investors need a
legal and commercial framework which upholds negotiated
contracts, and is fair and transparent.
President Akayev may bring up his idea of holding a regional
peace conference on Afghanistan. This, and other bilateral
issues were discussed on October 29 with the Secretary of
State's Special Advisor to the Newly-Independent States,
Ambassador Sestanovich. Ambassador Sestanovich spelled out the
U.S. position on these issues during this meeting. President
Akayev may also ask why he could not meet with President Clinton
during his private visit to the U.S. in July (President
Clinton's schedule did not permit such a meeting).
President Akayev is friendly and engaging, and will probably
present you with a gift, as well as offer presents for the
President and Chelsea. At the conclusion of the meeting, you
and President Akayev will proceed to lunch in Beli Dom.
KYRGYZ REPUBLIC
TALKING POINTS FOR MEETING WITH PRESIDENT AKAYEV
General
Pleased at this opportunity to strengthen our relations and
bring Kyrgyzstan to attention of all Americans.
Kyrgyzstan is taking brave stand on political and economic
reform in difficult circumstances.
Appreciate Kyrgyzstan's political & economic reform efforts
under your leadership. Realize this is not easy - regional
and domestic pressures against reform exist. Respect your
determination to "stay the course".
Human Rights/Democracy-Building
Pleased with Kyrgyz progress on human rights and reform, you
are showing way forward in Central Asia in this important
area.
Pleased at your commitment to hold free, fair and truly
democratic local elections in 1998-99 and presidential
elections in 2000 - this is visionary leadership.
Pleased at release of journalists held on criminal libel
charges, and your efforts to promote legislation for
protection of the rights of journalists and freedom of the
press.
The ability of non-governmental organizations, such as the
Soros foundation, to operate freely is a hallmark of civil
society and democracy. Such organizations are critical
avenues of support for your reform efforts.
Economic Reform
Praise economic reforms accomplished thus far - realize next
step is to attract greater investment.
Continue institution-building efforts as way to promote right
climate for investors.
2
Renegotiation of contracts hinders Kyrgyzstan's ability to
attract foreign investment, which needs a level playing field.
Pleased at your progress thus far towards WTO accession.
(If Asked) President Akayev's Afghan Peace initiative.
Common interest in ending the conflict with emergence of
broad-based, multi-ethnic government, capable of addressing
reconstruction, narcotics problem, terrorism, refugees, and
human rights.
U.S. committed to finding a lasting peace achieved within a UN
framework.
U.S. seeking ways through UN for countries with influence in
or concern over Afghanistan to join in an effort to find a
settlement. Support UN Secretary General's appointment of
Ambassador Brahimi.
(if asked) Mrs. Akayeva: assistance with one of her humanitarian
projects
Aware of her commitment to better the lives of the Kyrgyz
people. The U.S. has provided support to the Kyrgyz Republic
in a number of humanitarian areas. I cannot promise anything,
but please convey the details of this initiative to Amb.
Sigmund SO that it can be considered in our overall dialogue.
Lunch Hosted
by President Akayev
KYRGYZSTAN PAPER: LUNCH WITH PRESIDENT AKAYEV
Lunch will be served in the dining room of the presidential
residence Beli Dom. You will be seated at the head table with
President Akayev, First Lady Mayram Akayeva, U.S. Ambassador
Anne Sigmund, and Foreign Minister Imanaliyev.
Toasts are the most important part of a Kyrgyz formal meal, and
President Akayev will make a long toast in your honor. A long
and flowery toast indicates the toast-giver highly values the
honored guest. Once the President has made his toast, it is
permissible to eat while other guests give toasts throughout the
meal. You should respond to President Akayev's toast with a
toast to him and the Kyrgyz Republic. Mention of the First
Family would be well received, as the Kyrgyz place great value
on close family ties.
President Akayev has visited the U.S. a number of times, most
recently in July when he met with Vice President Gore. (He did
not meet with President Clinton due to conflicts in the
President's schedule). Madame Akayeva believes that she and the
First Lady have much in common - professional women balancing
the demands of First Lady and mother. This includes children
far away at college (Their oldest daughter has just married and
lives in Kazakhstan, the oldest son is studying at the
University of Maryland, their second daughter is in Boston and
their youngest son is in Bishkek). Conversation about coping
with common family experiences would not be out of place.
KYRGYZ PARTICIPANTS
President Askar Akayev
First Lady Mayran Akayeva
Prime Minister Apas Djumagulov
Deputy Prime Minister Kemelbek Nanayev
Deputy Prime Minister Ms. Mira Jangaracheva
Foreign Minister Muratbek Imanaliyev
State Secretary Ishenbay Abdurazakov
Kyrgyz Ambassador to the U.S., Bakytbek Abdrisaev
Minister of Agriculture Karimsher Abdimomunov
Minister of Labor Ms. Asylgul Abdurekhmenova
Minister of Education Askar Kakeyev
Chairperson, Constitutional Court, Ms. Cholpon Beyekova
TOAST POINTS
Thank you Mr. President. I am very glad to be here today.
As I look around me, at the different groups represented here
today, I am reminded of values which I hold dear.
It is the coming together of diverse groups, in harmony and
commitment, which is the greatest catalyst in creating a civil
society.
There may be differences, but all are committed to working
towards a common goal of a better life for our children.
This is how a strong family functions, and from this point, a
strong community grows, dedicated to democracy and civil
society.
The "leaders" within a family are those who are open to other
opinions. They are also those who dedicate themselves to
improving the family via their compassion and charity work.
As we share this wonderful meal Mr. President and Madam
Akayeva, I would like to think of myself as a guest of your
Kyrgyz "family".
I raise my glass to you Mr. President, and to your remarkable
efforts to place Kyrgyzstan on the path of democratization and
economic reform.
May the warm relations between our two countries grow even
stronger.
Ribbon Cutting at Kyrgyz-
American University
American
Community Event
KYRGYZSTAN: AMERICAN COMMUNITY EVENT/DEPARTURE
SCENESETTER
At least 100 members of the American community in Bishkek
will be at the airport. They will include American Embassy
employees, AID workers and contractors, Peace Corps
volunteers, NGO representatives, and their families. Press
and Kyrgyz government officials may also be present.
You will greet members of the American community and make
brief departing remarks before being seen off by
First Lady Akayeva, Foreign Minister Imanaliyev and Chief of
Staff Jumanliyev and U.S. Ambassador Sigmund. The event is
projected to last 30 minutes.
PARTICIPANTS
Government of the Kyrgyz Republic
First Lady Mayran Akayeva
Foreign Minister Muratbek Imanaliyev
Chief of Staff, President's Office, Kubanychbek Jumanliyev
(TBD) Kyrgyz Ambassador to the U.S., Bakytbek Abdrisaev
American Embassy
Ambassador Anne Sigmund
Deputy Chief of Mission Angus Simmons
KYRGYZ REPUBLIC: DEPARTURE STATEMENT
I am deeply touched by the generous and kind hospitality shown
to me by President Akayev, Madame Akayeva and all those I have
met today.
My discussions with President Akayev were marked by the spirit
of cooperation that has long been a part of our relations with
the Kyrgyz Republic.
I have spoken with women entrepreneurs, who, via financing for
microenterprises, are empowering themselves and their
families.
They are not only the foundation of a modern market economy,
they represent grassroots democracy in action.
I encourage the Kyrgyz Republic to continue the brave course
it has chartered, to work towards promotion of democracy human
rights, press freedoms, and the free functioning of non-
governmental organizations.
These are key elements as the Kyrgyz Republic begins its next
stage of nation-building.
President Akayev, the warmth of your and your wife's welcome
will remain with me. I thank you for your hospitality.
I thank Ambassador Sigmund and her staff at the American
Embassy for their hard work and superb efforts in coordinating
this visit.
I am also grateful to Ambassador Abdrisaev ("Ab-dri-sigh-ev)
at the Kyrgyz Embassy in Washington for his assistance in
preparing for this visit.
Lastly, I thank the people of Kyrgyzstan for their warm smiles
of welcome and their courage in striving for a better world.
May God bless and protect you all!