Transition Economy and its Implications on the Kyrgyz Business Environment: Analysis and Recommendations

Since declaring its independence from the Soviet Union in 1991, Kyrgyzstan has undergone a substantial transition period marked by major reforms in the cultural, socio-political, legal, and economic environment. These developments have turned Kyrgyzstan into one of the most advanced investment destinations in Central Asia. Yet, Kyrgyzstan has not been able to receive the high levels of foreign direct investment other transition economies have attracted. In reality, numerous promising business areas exist in the country along with risks. This paper examines the opportunities and challenges awaiting multinational firms in Kyrgyzstan and recommends proactive strategies that will help them succeed in this transition market.