Celtic Tiger model for Kyrgyzstan?
Ireland was one of the poorest countries in Western Europe, a small country with scarce natural resources and with a lot of economic problems. The government regulation of economy was very tight, one seventh of its population left the country. It seems like it was experiencing the same problems which now Kyrgyzstan is facing. During 90’s Ireland showed sustainable and astonishing economic development, and currently Irish economic growth is higher than one in developed countries, and it has become European “tiger”, or “Celtic tiger” and more and more people are migrating to Ireland. How could Ireland manage its problems and achieve good results in economy? And can Kyrgyzstan use Irish model?
There are a lot of debates about Irish economic boom, various theories and explanations, and still, the Kyrgyz Government can learn some lessons. Of course, the proximity to rich countries of European Union, like UK and Germany, and other factors, which are not quite applicable to Kyrgyzstan played a big role for Ireland. Kyrgyzstan can benefit from its neighbors like China and Kazakhstan, and probably Russia. Other reasons, perhaps more important than being in a European Union, were the deregulation of Irish economy, government expenditures cuts, decrease of corporate taxes, and etc. These measures attracted more investments from Europe and America.
The Kyrgyz government has been taking measures for reforming the economy, including some measures for economic freedom. But it seems that it is not quite enough. The government inefficient bureaucratic system, corporate and income taxes, social fund taxes, and corruption are slowing down the Kyrgyz economy.
on September 12th, 2007 at 11:49 am
Yes right, and 15 years ago the model was Switzerland. I know it’s well meant but it’s pointless for Kyrgyzstan and Kyrgyzstani society to try to copy Europe.
on September 19th, 2007 at 6:10 pm
Dear Ataman,
I do not agree with you. It is not a bad comparization as Akbalta says. Also Ireland did not have any resources and jobs and a lot of people went to the USA and Australia.
But look at this country now! Big companies related to computers have their bases now in Ireland and the high tech industry is booming there.
Software and computer hardware only needs educated people and believe it or not, lots of high educated people all over the world are moving to Ireland now. Of course there have been coming some money from the European Union but you can see that some investements pay off.
A country (or government) needs a vision of the future.
John.
on September 24th, 2007 at 11:39 am
Dear Ataman,
I think perhaps you’ve got a wrong impression from the article. I do not suggest to declare another model, like it was done 15-17 years ago by former KG president. Actually, it was not a bad idea about becoming second Switzerland. The problem was that president Akaev sincerely wanted it but didn’t believe it would come true.
Kyrgyzstan should not copy other models without good analysis and before clearly stating its strategic development priorities. However, meanwhile, the government of Kyrgyzstan might want to learn the experience of other countries, which had almost the same problems.
Dear John, thank you for your support and a good comment.
on September 26th, 2007 at 2:06 pm
There are indeed a number of similarities which you named: little or no raw materials, small country for regional standards, a diaspora and remittances, external/instutional development money, …
Yet there is one factor that I have not heard in both the OP and the comments and that is: culture. By ‘culture’ I do not mean art (as most do) but the mentality, norms and values as well as ways of social organization. IMO, that is one of the most fundamental factors that explain economic and social development — or the absense thereof. And here we have to admit that Celtic/Northwestern Europe and Central Asia are lightyears apart despite naive affinities of the latter’s power elite and intelligentsia for ‘Europe’.
What also plays an important role are patterns of past colonisation.
“A country (or government) needs a vision of the future.”
Yes at that’s exactly what lacks in this region. Visions are either based on complete misperceptions or unrealistic, or pseudo-visions that basically justify eating/picking from everyone’s table (eg. ‘multivectoralism’).
on May 24th, 2008 at 4:01 am
Hi there…Thanks for the nice read, keep up the interesting posts about atom models..what a nice Friday .