“Made in Kyrgyzstan”: Innovative Approaches to Sustainable Industrial Development

Abstract New economic conditions in Kyrgyzstan today demand new approaches to industrial development. Huge, old plants and factories built in the Soviet era have collapsed, increasing the country's poverty level and the number of jobless people, especially in mountain regions. Lack of finances, poor management, privatization, and the breakup of the centralized industrial system have led to a decline in industrial production in Kyrgyzstan. Industry in the Kyrgyz economy decreased from 62% in 1990 to 16.1% in 2004, as a share of gross domestic product. This economic decline caused disparities between lowland and highland development, and resulted in the migration of rural populations to towns, especially from mountain regions isolated from the outside world. Under such conditions there is a great need to establish a liaison between lowlands and highlands. This role can be played by a network of new small-scale industries based on the obviously high potential of mountain regions. Small investments based on l...