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	<title>Postcard from Bishkek &#187; Economy</title>
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	<link>http://ianbek.kg</link>
	<description>Observations from an expat</description>
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		<title>Cotton Club</title>
		<link>http://ianbek.kg/?p=17921</link>
		<comments>http://ianbek.kg/?p=17921#comments</comments>
		<pubDate>Fri, 14 Mar 2014 01:00:47 +0000</pubDate>
		<dc:creator><![CDATA[ian]]></dc:creator>
				<category><![CDATA[Economy]]></category>
		<category><![CDATA[Flora and Fauna]]></category>
		<category><![CDATA[Agriculture]]></category>
		<category><![CDATA[Fauna_and_Flora]]></category>
		<category><![CDATA[Statistics]]></category>

		<guid isPermaLink="false">http://ianbek.kg/?p=17921</guid>
		<description><![CDATA[Not long ago I was chatting with a friend who dropped a bombshell on me, (figuratively &#8211; not literally), when he told me that Kyrgyzstan was on of the top Cotton producers in the world.  I expressed my surprise &#8230; I know that cotton is often listed as one of the country&#8217;s main agricultural products [&#8230;]]]></description>
				<content:encoded><![CDATA[<div id="attachment_17924" style="width: 310px" class="wp-caption alignright"><img class="size-full wp-image-17924 " alt="Cotton Bolls" src="/wp-content/uploads/2014/03/cotton-300.jpg" width="300" height="214" /><p class="wp-caption-text">Cotton Bolls</p></div>
<p><span style="line-height: 1.5em;">Not long ago I was chatting with a friend who dropped a bombshell on me, (figuratively &#8211; not literally), when he told me that Kyrgyzstan was on of the top Cotton producers in the world.  I expressed my surprise &#8230; I know that cotton is often listed as one of the country&#8217;s main agricultural products along with tobacco, and that it was an important product in the Ferghana valley &#8230; but it seemed to me that Uzbekistan he was probably thinking of Uzbekistan, not Kyrgyzstan.  </span></p>
<p><span style="line-height: 1.5em;">Anyway, I decided to look into it.</span></p>
<p>In fact he is not alone in thinking this &#8230; <a href="http://kloop.info/2012/05/10/kyrgyzstan-cotton-production-reaches-five-year-high/" target="_blank">one news report</a>, echoed what he told me, saying: &#8220;according to some sources, Kyrgyzstan is among the leaders of cotton production in the world&#8221;, although it also added, &#8220;Kyrgyzstan does not figure in the National Council of U.S. cotton producers’ <span style="line-height: 1.5em;">list</span><span style="line-height: 1.5em;"> of the </span><span style="line-height: 1.5em;">top ten cotton producing countries.</span><span style="line-height: 1.5em;">&#8220; </span></p>
<p><span id="more-17921"></span>It turns out that Kyrgyzstan is about halfway down the league table of the world&#8217;s major cotton producers, (somewhere about 38th place, out of 77 countries), producing around 100,000 bales of cotton a year (about 20,000 tonnes).  That&#8217;s not much compared to approximately 25 million tonnes produced globally annually; six million tonnes produced by China and India, the three million tonnes from the United States, (the world&#8217;s largest exporter of cotton), two million tons from both Pakistan and Brazil or with Uzbekistan, (which is up there in the top ten with about a million tonnes) &#8230; but it&#8217;s still a significant quantity.</p>
<p style="padding-left: 30px;"> <strong>For the record</strong>: I have to admit to a certain amount of confusion because some of the statistics are quotes in tonnes &#8211; whilst others are quoted in &#8220;<strong>bales</strong>&#8221; &#8230; a bale weighs 480lbs (pounds) which is the equivalent of about a fifth of a tonne &#8211; so, China at the top of the table produces about 32 million bales, or 6 million tonnes.     A recent news report (in 2012) commented on the harvest of 100,000 tonnes of the crop that year &#8230; but according to one set of figures I have seen, Kyrgyzstan produces around 100,000 bales &#8211; which would be only 20,000 tonnes.</p>
<p>&nbsp;</p>
<p>Cotton, (<em><strong>Klopock</strong></em> in Russian), is fiber  that grows in a round seed bearing capsule, called a boll, of the Gossypium plant, (or cotton plant).  The shrub is found all round the world and it was domesticated, (cultibated and utilised), in both the Old and the New Worlds in antiquity.  The fiber <span style="line-height: 1.5em;">is almost pure cellulose and is spun into a yarn or thread which can then be use to make a soft textile fabric, and the invention of new technologies in the Industrial Revolution led to a growth in its use and it is now the most widely used natural fiber cloth in the world. </span></p>
<div id="attachment_17926" style="width: 210px" class="wp-caption alignright"><img class="size-full wp-image-17926 " alt="An early, hand powered, Whitney Engine" src="/wp-content/uploads/2014/03/Whitney-Engine.jpg" width="200" height="188" /><p class="wp-caption-text">An early, hand powered, Whitney Engine</p></div>
<p style="padding-left: 30px;"><span style="text-decoration: underline;"><strong>For the record</strong></span>: Today happens to be the anniversary of an important event in the history of cotton &#8230; as important as the invention of the cotton gin.  On March 14th, 1794, Eli Whitney received a patent for his engine, basically<span style="line-height: 1.5em;"> </span><span style="line-height: 1.5em;">a wooden drum, spiked with metal hooks &#8211; which, when it was turned, </span><span style="line-height: 1.5em;">separated the cotton fibers from the seeds, husks and other impurities.  Whitney&#8217;s invention allowed a massive increase in productivity in the extremely labour intensive process &#8230; and whilst this led to the success of the cotton industry in the Southern States of America, according to some historians, it also played a role in helping to perpetuate the institution of slavery. </span></p>
<p>Cotton has been a controversial crop over the years &#8211; what with the connections with the Slave trade, Gandhi&#8217;s commentary about the economic injustices of the British empire buying Indian cotton at rock bottom prices &#8211; transporting the crop to Britain to be processed and then selling the finished product back to India at top dollar prices &#8230; and more recently the alleged use of &#8220;child labour&#8221;, and other economic, environmental and social problems associated with the intensive farming methods of its mono-cultural cultivation.</p>
<p>Cotton requires a long frost-free period, plenty of sunshine and moderate rainfall, (or substantial irrigation &#8211; which leads to other problems), and &#8220;heavy soils&#8221; &#8230;</p>
<p>Recent developments have seen the introduction of Genetically modified cotton plants &#8211; designed to improve resistance to pests.  However, another trend has also emerged, the production of organic cotton &#8211; produced from plants cultivated without the use of chemicals such as fertilizers and pesticides.</p>
<p>Apart from its use in textiles, cotton also has a wide variety of uses &#8211; such as in the manufacture of explosives, paper &#8211; most banknotes are actually made from cotton paper.</p>
<p>&nbsp;</p>
<div id="attachment_17925" style="width: 210px" class="wp-caption alignright"><a href="http://www.indexmundi.com/agriculture/?country=kg&amp;commodity=cotton&amp;graph=production"><img class="size-full wp-image-17925 " alt="Cotton production in Kyrgyzstan" src="/wp-content/uploads/2014/03/cotton-production.jpg" width="200" height="101" /></a><p class="wp-caption-text">Cotton production in Kyrgyzstan</p></div>
<p>In the days of the Soviet Union, the collective planners in Moscow decided that the Ferghana valley should become a center for cotton production and set in motion measures to bring this about &#8230; plowing up grazing land and damming rivers to provide irrigation for the incredibly thirsty cotton crop, chemical fertilized were purchased and distributed and pretty soon the valley was harvesting thousands of tons of cotton a year.</p>
<p>In recent years, production levels have fluctuated considerably.  with a low of 60,000 bales (in 1993) and peaking at 248, (in 2004).  The variation is partly due to climatic conditions, but also to variations in the area of land used for the crop year by year, (as in, for example, in 2013 when poor prices paid to farmers the previous year led to few acres being planted with the crop), and the availability of fertilizers and pesticides, &#8230; and other socio-economic factors such as  improved techniques as farmers receive specialist training &#8211; thanks partly to the intervention of international donor organizations.</p>
<p><span style="line-height: 1.5em;">It&#8217;s a cash crop and has a significant impact on the economy of the whole region.  When the Soviet Union collapsed, the market for cotton diminished, which led to a downturn in production &#8211; according to one source the acreage dedicated to the crop fell by something like 70% &#8211; which in turn led to widespread unemployment in the region and increasing poverty among those who worked in its production.</span></p>
<p>Over the last ten years or so, there have been several projects supported by international donors that have introduced farmers to Organix Cotton production.  Although they tend to achieve lower yields they also benefit from lower production costs and premium prices … not to mention additional sources of income from diversification from the production of by-products, (such as Cotton oil for cooking, and press cake for animal feed), which all help to lead to an increase in net profits.  In additional these projects also provide for greater access to credit which in turn reduces the pressure on farmers to sell livestock during hard times and perceived improvements in soil.</p>
<p>According to official figures, something like 25% of the production is exported &#8230; although some people say the real figure is far greater.  Earlier this year, it was announced that Pakistan is looking to purchase Kyrgyz cotton &#8230; even though it is a major producer in its right.</p>
<p>&nbsp;</p>
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		</item>
		<item>
		<title>Uhhh &#8230; who are you?</title>
		<link>http://ianbek.kg/?p=16735</link>
		<comments>http://ianbek.kg/?p=16735#comments</comments>
		<pubDate>Thu, 06 Mar 2014 00:00:23 +0000</pubDate>
		<dc:creator><![CDATA[ian]]></dc:creator>
				<category><![CDATA[Business]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Inspections]]></category>

		<guid isPermaLink="false">http://ianbek.kg/?p=16735</guid>
		<description><![CDATA[The other day we had a visit at the hotel from some officials who seemed to be convinced that there was &#8220;something wrong&#8221;. It&#8217;s not the first time we&#8217;ve had such a visit &#8211; so we went into &#8220;automatic mode&#8221; and asked &#8211; &#8220;where are your papers?&#8221;.  They fished out their ID-cards and so that [&#8230;]]]></description>
				<content:encoded><![CDATA[<p>The other day we had a visit at the hotel from some officials who seemed to be convinced that there was &#8220;something wrong&#8221;.</p>
<p>It&#8217;s not the first time we&#8217;ve had such a visit &#8211; so we went into &#8220;automatic mode&#8221; and asked &#8211; &#8220;where are your papers?&#8221;.  They fished out their ID-cards and so that part, at least, seemed OK &#8230; however, they didn&#8217;t have an order explaining what it was they were &#8220;investigating&#8221; or checking so it was case of &#8220;Come back when you&#8217;ve got one.&#8221;</p>
<p style="padding-left: 30px;"><span id="more-16735"></span>The order should identify them and the issue being checked &#8230; then we know what information they need and we can provide it.  No problem &#8211; we&#8217;ll provide it, but if we are being asked to &#8220;follow the rules&#8221; and are going to face the possibility of penalties for &#8220;infringements&#8221; of the rules and regulations, then it only seems fair and logical to ask that the authorities do likewise.</p>
<p style="padding-left: 30px;">Once the &#8220;check&#8221; is over they write a report, (called an <em><strong>Akt</strong></em>), and record their visit in the <em><strong>Inspections Book</strong></em>.  That &#8220;paper trail&#8221; Provides the proof that the visit took place &#8230; otherwise it&#8217;s just an &#8220;informal chat&#8221; &#8230;  and one of the problems with &#8220;informal chats&#8221; is there are no rules to govern them.</p>
<p>I am sometimes amazed that people think the ID-Card is enough &#8230; after all, it&#8217;s supposed to &#8220;identify&#8221; the person as working for this authority, or that. However, it&#8217;s not enough. Possession of an ID-card does not necessarily mean that they are the rightful owner &#8211; especially when they just flash it at you. Not everyone reads a card and I have to admit that, even of they let you read it, (because they are in Russian &#8211; or Kyrgyz), it can sometimes present me with problems.</p>
<p style="padding-left: 30px;">On one particular occasion, a couple of &#8220;officials&#8221; approached me on the street and one of them flashed his ID at me.  I cursorily looked at it before he folded it up and put it back in his pocket &#8211; I looked OK, but I didn&#8217;t really make a note of the details, (name, official body, ID number and so on), During the ensuing conversation something &#8220;twigged&#8221; and started setting off &#8220;alarm bells&#8221; in my head.  I asked to see the card again and he refused &#8230; I said that as a public servant he had to present if and when asked and I wanted to write a note of the details &#8230; at that point he started &#8220;blabbering&#8221; something about being being trainees.  That was enough &#8230; I stopped and screamed at the top of voice, &#8220;<em><strong>Mitisia, Militsia, Mne noozhen Militsia!</strong></em>&#8221;  (Police, Police, I need the the police!).  That was enough for them &#8230; they turned and ran.</p>
<p style="padding-left: 30px;">On another occasion, someone claiming to be an official turned up at the office and, before admitting him, I asked him for his ID card.  He gave it to me.  He actually handed it to me! Now, they are not supposed to do that &#8230; they are only supposed to hold it and let you read it &#8230; so, I told him that I didn&#8217;t believe him and to go away.  I turned around and went back into the office.  He did go away &#8230; and he never came back.</p>
<p style="padding-left: 30px;">On a number of occasions, people have turned up claiming to be officials and when asked for the their ID card they shamefacedly reply that they &#8230; &#8220;don&#8217;t have it&#8221;.  It&#8217;s in the car, they left it at home or it&#8217;s in their &#8220;other suit&#8221;.  OK &#8230; no problem &#8211; come back when you&#8217;ve got it and then we&#8217;ll talk further.</p>
<p style="padding-left: 30px;">These days, I am pleased to say &#8211; things are much better &#8211; more disciplined.  Visiting officials nearly always have their cards with them &#8230; and they are much more cooperative when showing it to us so that we can note the details and compare it with those on the official order.</p>
<p>As it happens, in this case, an informal chat seems to be exactly what they wanted.  It appears that a question had arisen back in their office about The Silk Road Lodge.  Someone had asked: &#8220;Who is the Silk Road Lodge?&#8221; and when they went looking they couldn&#8217;t find it registered &#8230; anywhere.  So, could it be that we were a &#8220;shadow&#8221; company &#8211; working in the &#8220;Grey Economy&#8221; without registration and paying our taxes &#8230; someone had decided to find out.   Hence the visit.</p>
<p style="padding-left: 30px;">In a way, that struck me as quite funny.  It&#8217;s a five storey building in the center of Bishkek.  We have lots of corporate clients and government agencies who use our services It&#8217;s not really possible to hide the business.</p>
<p>When we said &#8211; &#8220;No wonder you couldn&#8217;t find us &#8211; there isn&#8217;t one,&#8221; a perplexed look appeared on the face of one of the visitors, and I think I detected a smile breaking out on the other and I could almost hear the anticipated &#8220;Aha! &#8211; I knew it.&#8221;</p>
<p>The smile soon disappeared, however, as we explained &#8230; &#8220;You looking for the wrong thing.   The Silk Road Lodge is not registered because it&#8217;s not a &#8216;legal entity&#8217; &#8211; it&#8217;s a &#8216;department&#8217; of The Celestial Mountains Tour Company &#8211; which is properly registered and does pay its taxes &#8211; in fact we are subjects of the Large Taxpayers Unit and have been ever since it was established.&#8221;</p>
<p>That&#8217;s basically all we were prepared to tell them without an official order.</p>
<p>&nbsp;</p>
<p>Now, there&#8217;s nothing wrong with doing a check on registration and location &#8211; but it does need to be documented, or else there is no control.  Without following the proper procedures then anyone could just walk in and present themselves and who knows where that could lead?</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
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		<title>St Yuri&#8217;s Day</title>
		<link>http://ianbek.kg/?p=16654</link>
		<comments>http://ianbek.kg/?p=16654#comments</comments>
		<pubDate>Mon, 09 Dec 2013 01:00:43 +0000</pubDate>
		<dc:creator><![CDATA[ian]]></dc:creator>
				<category><![CDATA[Calendar]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Religion]]></category>
		<category><![CDATA[Agriculture]]></category>

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		<description><![CDATA[Today is the second of the St, George&#8217;s Day of 2013.  It&#8217;s actually St. Yuri&#8217;s Day, but Yuri is one of the Russian equivalents of George. In the Orthodox calendar, Russians commemorate two St. George&#8217;s Day: the first in the Spring falls on April 23rd &#8211; as in the West &#8211; but there is a [&#8230;]]]></description>
				<content:encoded><![CDATA[<div id="attachment_16655" style="width: 220px" class="wp-caption alignright"><a href="http://en.wikipedia.org/wiki/File:Yuriev_day.jpg"><img class=" wp-image-16655 " alt="A Peasant Leaving His Landlord on Yuri's Day - by Sergei Ivanov" src="/wp-content/uploads/2013/12/800px-Yuriev_day-300x213.jpg" width="210" height="149" /></a><p class="wp-caption-text">A Peasant Leaving His Landlord on Yuri&#8217;s Day &#8211; by Sergei Ivanov</p></div>
<p>Today is the second of the St, George&#8217;s Day of 2013.  It&#8217;s actually St. Yuri&#8217;s Day, but Yuri is one of the Russian equivalents of George.</p>
<p>In the Orthodox calendar, Russians commemorate two St. George&#8217;s Day: the first in the Spring falls on April 23rd &#8211; as in the West &#8211; but there is a second in the Autumn which falls on 26th November.  There is a catch in that the Russian Orthodox Church still operates on the Julian Calendar &#8230; whereas the rest of the world &#8211; well, most of the rest of the world &#8211; operates on the Gregorian Calendar. November 26th on the Julian calendar corresponds to 9th December on the Gregorian one.</p>
<p>This second St. George&#8217;s Day commemorates the consecration of the Church of St. George in Kiev by Yaroslav I, Yaroslav the Wise, in 1051.</p>
<p><span id="more-16654"></span>Yuri&#8217;s Day happens to be held at a time when the agricultural year is over and it had a significant importance in the life of the Russian peasant.</p>
<p>Traditionally, this was the day by which all debts had to be settled and the two week period around the day, (the week before and the week after), was the only time when peasants were free to move from one landowner to another, but this practice was brought to an end by Boris Gudunov &#8211; thus establishing the system of serfdom that helped to shape the Russian Empire.</p>
<p style="padding-left: 30px;">Although I see the logic in this day being chosen &#8230; the harvest having been safely gathered in &#8230; it seems a little late in the year for commemorating the Harvest.</p>
<p style="padding-left: 30px;">Coming from Britain, I am used to Harvest Festival falling in the early Autumn.  In Britain, as in most of Europe, the Harvest Festival is normally held around the time of the Harvest Moon, the Full Moon that falls closest to the Autumn Equinox.  In most years, this occurs in September, but it can also fall in early October.  The Jewish equivalent, Sukkot &#8211; The Feast of the Tabernacles &#8211; also falls in September/October.  The American festival of Thanksgiving, however, which commemorates the first harvest gathered in by the pioneers after landing in the &#8220;New World&#8221; falls in November.</p>
<p style="padding-left: 30px;">In Russia, there are several occasions which amount to Harvest Festivals &#8230; <em><strong>Drozhinki</strong></em>, which falls as early as 15th August in some places, (28th August on the Gregorian Calendar), but elsewhere it falls in September.</p>
<p><span style="color: #ffffff;">.</span></p>
<p>There has been a fair amount of news in recent weeks about the annual harvest having been gathered in &#8230; and it seems to have been a successful year with the harvest bringing bumper crops <span style="font-size: 13px; line-height: 19px;">, (especially in wheat and sugar beet),</span><span style="font-size: 13px; line-height: 19px;"> </span><span style="font-size: 13px; line-height: 19px;">not necessarily as a result of more land being brought under cultivation but because yields have been higher.</span></p>
<p><span style="font-size: 13px; line-height: 19px;">  </span></p>
<p>When it comes to the tradition of repaying debts by St. Yuri&#8217;s day &#8230; there is no chance that this will happen &#8230; Kyrgyzstan&#8217;s external debt is estimated at 3.6 billion dollars. OK, that&#8217;s peanuts compared to that of the United States, (which stands at 14,710 billion dollars &#8211; and incidentally, for the record, although that&#8217;s a record sum it is nothing extraordinary &#8230; the last time the US didn&#8217;t owe anyone any money was in 1835), and I think that, for once, we can pleased that Kyrgyzstan finds itself pretty far down in the rankings on an international league table, ranking 127th out of some 204 countries and territories in terms of external debt.</p>
<p>In fact the country&#8217;s external debt has shown a remarkable growth since the turn of the century &#8230; although in the last full year for which figures are available, they actually fell &#8230; not by much &#8230; but a reduction all the same.</p>
<p style="padding-left: 30px;"><span style="text-decoration: underline;"><strong>For the record</strong></span>: This table shows the total public and private debt owed to nonresidents repayable in foreign currency, goods, or services &#8211; in billions of US Dollars &#8211; the final figures for 2013 are, of course, not yet in:</p>
<p style="padding-left: 60px;">2000      1.1<br />
2001      1.4<br />
2002      1.6<br />
2003      1.5<br />
2004      1.5<br />
2005      1.97<br />
2006      2.43<br />
2007      2.48<br />
2008      2.97<br />
2009      3.47<br />
2010      3.47<br />
2011      3.74<br />
2012      3.6<br />
2013      ???</p>
<p>The level of debt and reliance on the international community for grants and/or loans in order to fulfill certain projects &#8211; or even to maintain the everyday operations of government has been the subject of much comment &#8230; especially as the percentage of debt to GDP has also inexorably risen to raise the question of its sustainability &#8211; last year, according to the Minister of Finance, the country&#8217;s &#8220;foreign debt&#8221; amounted to 47% &#8230; although estimates put it this year at somewhere between 43 and 45%.</p>
<p><span style="color: #ffffff;">..</span></p>
<p>As to the traditional right of the peasant to change allegiances to a new landlord, even if Boris Gudunov did away with it, I am not sure what the more nationalist elements might make of the parallel with the current trend back towards the Russian sphere of influence.</p>
<p><span style="color: #ffffff;">.</span></p>
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		<title>Organic Kyrgyzstan</title>
		<link>http://ianbek.kg/?p=16531</link>
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		<pubDate>Tue, 03 Dec 2013 01:00:49 +0000</pubDate>
		<dc:creator><![CDATA[ian]]></dc:creator>
				<category><![CDATA[Economy]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[Agriculture]]></category>
		<category><![CDATA[Food and Drink]]></category>

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		<description><![CDATA[Today happens to be International Day Against Pesticides. It is not an official UN recognized commemorative day, but was established by the 400 members of the Pesticide Action Network International, (PAN). Their aim was to draw attention to problems caused by production and use of hazardous chemicals used as pesticides in order to increase cop [&#8230;]]]></description>
				<content:encoded><![CDATA[<div id="attachment_16532" style="width: 210px" class="wp-caption alignright"><a href="http://en.wikipedia.org/wiki/File:Warning2Pesticides.jpg"><img class="size-full wp-image-16532  " alt="Pesticides - not universally popular!" src="/wp-content/uploads/2013/11/day-against-pesticides.jpg" width="200" height="133" /></a><p class="wp-caption-text">A sign warning about pesticide exposure</p></div>
<p>Today happens to be <strong>International Day Against Pesticides</strong>.</p>
<p>It is not an official UN recognized commemorative day, but was established by the 400 members of the <strong>Pesticide Action Network International</strong>, (PAN).</p>
<p>Their aim was to draw attention to problems caused by production and use of hazardous chemicals used as pesticides in order to increase cop yields.  <span style="font-size: 13px; line-height: 19px;">The choice of 3rd December</span><span style="font-size: 13px; line-height: 19px;"> </span><span style="font-size: 13px; line-height: 19px;">was to commemorate an incident at Bhopal, in India, in 1984.</span></p>
<p>The incident is classified as one of the worst industrial accidents in history and involved a chemical leak from the Union Carbide pesticide plant in Bhopal, which resulted in the death of more than 3,800 people, (some reports say 8000), and caused injuries to many more, (&#8230; between 150000 and 600000 depending on different estimates), including some 6,000 of whom would later die from their injuries.</p>
<p><span id="more-16531"></span></p>
<p>Pesticides are substances intended to prevent, destroy or mitigate the effect of different types of &#8220;pests&#8221;, (weeds, diseases or insects), and this improve crop yields.   Although we tend to think of pesticides as being synthetic chemical agents &#8211; different measures of crop protection &#8211; such as the use of sulfur &#8211; date back to around 2000BC.  Over the years different chemicals have been used, arsenic, lead, mercury, nicotine sulfate, pyretheum &#8230; to name just a few.</p>
<p>The use of pesticides has been increasing over the years as farmers have sought to improve harvests.</p>
<p>In the 1950&#8242;s the use of DDT began to predominate, but a decade later warning signs emerged &#8211; DDT seemed to inhibit many fish-eating birds from reproducing &#8230; the loss of these bird species would have a starting and significant effect on the biodiversity in their locales and as a result of theis discover, the use of DDT as a pesticide is now basically banned by an international convention.  It is still used, however, in some parts of the world where it is sprayed onto walls in order to kill or repel mosquitoes, thus providing a means of preventing the spread of malaria and other tropical diseases.</p>
<p>This unexpected side effect of the use of a pesticide is just one problem that activists highlight when trying to point out what they see as the inherent dangers of the use and reliance of these chemicals. Other risks identified includes a growing resistance developing in the targeted pests against the pesticide &#8211; creating stronger and more virulent strains.  They also point to mutations and diseases developing or being caused by the chemicals.</p>
<p>Many people suggest the use of &#8220;natural&#8221; or &#8220;organic&#8221; means of pest control &#8211; as opposed to using synthetic chemicals.</p>
<p>In the West, Organic Farming is seen not just as a way of producing environmentally friendly crops, the harvest also attracts a premium price as a more demanding and sophisticated public appear to be willing to pay higher prices for ecologically pure produce &#8211; both a health choice and/or as a statement  of support for environmental values and policy.</p>
<p>&nbsp;</p>
<p>Here in Kyrgyzstan producers have often proudly the ecologically pure nature of the crops &#8211; and not just producers; I remember some early discussion about an information brochure about Kyrgyzstan when one official from the Tourism department wanted to emphasis the &#8220;ecologically pure&#8221; nature of the food grown in Kyrgyzstan.</p>
<p>Some have cynically suggested that this support for organic farming is more pragmatic than based on philosophical principle &#8230; the farmers being unable to afford the high cost of chemicals.</p>
<p>At the beginning of November, here in Bishkek, there was a forum dedicated to the development of organic farming, where the Minister for the Economy said that Agriculture is one of the government&#8217;s top priorities in its strategy for sustainable development over the next four or five years.  The strategy includes specific provisions relating to the development of organic farming &#8230; but there is a still a lot of work to be done in order to create an effective and trustworthy system &#8230; where products can be tested and certified as organic.</p>
<p>There has already been some work done in this field &#8211; supported by the Swiss and the Koreans &#8230; the Swiss agency Helvetas, for example, working with farmers in Southern Kyrgyzstan &#8230; and the Koreans in growing, certifying and selling organic fruit and vegetables.  Further support for organic farming was forthcoming last week from the German Society for International Development (GIZ), which currently support the development of production of organic apricots and medicinal herbs, as well the Kyrgyzstan&#8217;s participation in various international exhibitions and trying to raise public awareness about organic farming.</p>
<p>One of their project managers told the Parliamentarian Committee for Agrarian Policy that &#8220;“Development of organic production will help to minimize impact of human activities on the environment,&#8221; but also pointing that this would require a internationally recognized form of certification.  He even thought that this might be a requirement imposed if and when Kyrgyzstan joins the Customs Union, in order to export produce to other member countries.  Furthermore, it reduce the country&#8217;s dependence on imported supplies of fertilizers, health risks, and adverse effects on the environment, whilst increasing the income of farmers.</p>
<p>There is also a company, <a href="http://www.ecoproduct.kg/" target="_blank">Ecoproduct Asia</a>, based in Sokoluk which specializes in producing &#8220;organic juice&#8221; made from products purchased from growers &#8211; primarily from  the Issyk Kul oblast.</p>
<p>There&#8217;s even an online virtual co-operative, a sort of <a href="http://www.farm.kg/" target="_blank"><em>Farmville </em></a>- where users, (members of the public), can place advanced orders for products &#8230; and in exchange for their early investment they are guaranteed both organic food and guaranteed  prices.</p>
<p>In fact,<span style="font-size: 13px; line-height: 19px;"> although still relatively small, both </span><span style="font-size: 13px; line-height: 19px;">the acreage and number of producers dedicated to organic farming.  I am not sure to what extent the local population will be prepared to pay premium price for organic foods, but there is growing middle class and the Korean collective in particular targeted both hotels and  restaurants, (both of which rely on high levels of disposable income among the population), in their early marketing &#8211; as well as potential export markets.</span></p>
<p><span style="font-size: 13px; line-height: 19px;">   </span></p>
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		<title>Energy</title>
		<link>http://ianbek.kg/?p=9260</link>
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		<pubDate>Thu, 30 Aug 2012 01:00:31 +0000</pubDate>
		<dc:creator><![CDATA[ian]]></dc:creator>
				<category><![CDATA[Economy]]></category>
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		<category><![CDATA[Kyrgyzstan]]></category>

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		<description><![CDATA[&#160; The Kyrgyz Republic has the potential of being a source of energy for many regions within Central Asia.  Whereas neighbouring countries may be rich in mineral resources like oil (Kazakhstan) and Gas (Uzbekistan), Kyrgyzstan has only limited deposits of oil and gas.  There are however, extensive deposits of coal &#8211; and considerable potential for the [&#8230;]]]></description>
				<content:encoded><![CDATA[<p>&nbsp;</p>
<div id="attachment_9261" style="width: 210px" class="wp-caption alignright"><a href="/wp-content/uploads/2012/08/transformer.jpg"><img class="size-full wp-image-9261" title="transformer" src="/wp-content/uploads/2012/08/transformer.jpg" alt="" width="200" height="267" /></a><p class="wp-caption-text">Transformer - a common image of the energy industry</p></div>
<p><span style="font-size: small;">The Kyrgyz Republic has the potential of being a source of energy for many regions within Central Asia.  Whereas neighbouring countries may be rich in mineral resources like oil (Kazakhstan) and Gas (Uzbekistan), Kyrgyzstan has only limited deposits of oil and gas.  There are however, extensive deposits of coal &#8211; and considerable potential for the production of hydro electric energy.</span></p>
<p><span style="font-size: small;">Indeed, one characteristic of the Kyrgyz energy sector is that most of the electricity produced in the country is generated by the sixteen Hydro electricity power stations that stretch along its network of mountain rivers.  What is more, although the proportion of energy generated this way is growing &#8211; the country is estimated to utilize only about one tenth of its total potential.</span></p>
<p><span style="font-size: small;"><span id="more-9260"></span>During the Soviet period, of the electricity generated in the republic, about a third was produced by its two thermal power stations, burning expensive fossil fuels, and two thirds by hydro-electric generators.  Since the collapse of the Soviet Union, however, the proportion of output from thermal power stations has fallen to under 10%.  </span></p>
<p>&nbsp;</p>
<div id="attachment_9262" style="width: 210px" class="wp-caption alignleft"><a href="/wp-content/uploads/2012/08/Dam.jpg"><img class="size-full wp-image-9262 " title="Dam" src="/wp-content/uploads/2012/08/Dam.jpg" alt="" width="200" height="146" /></a><p class="wp-caption-text">The Toktogul Dam</p></div>
<p><span style="font-size: small;">The sixteen hydroelectric power stations range from small stations to the 1200 megawatt Toktogul Power Station at the head of the Toktogul Reservoir.  </span><span style="font-size: small;">The Toktogul dam on the Naryn River and associated power complex were constructed in 1973 &#8211; the 215m high dam flooded part of the river valley creating a massive reservoir, which takes an hour to bypass as the Bishkek-Osh road skirts its shore.  Planned as one of a series of dams across the mighty river &#8211; the complete cascade was never finished but the plans still exist and there are proposals to complete the cascade on the upper part of the river and the Kambarata cascade.  The Toktogul dam is featured on the 100 som bank note. </span></p>
<p><span style="font-size: small;">The use of water from the Toktogul Reservoir for irrigation downstream, and there are a number of international agreements governing this activity.  This means, in effect, that electricity generation from the Toktogul power station is to all intents and purposes a by-product of the water release agreements, and this has led to a number of problems.  For example, during 2008 the water level in the reservoir fell close to its minimum and a series of restrictions on power consumption were introduced.  Three phase supply was virtually withdrawn, certain applications (such as heating and saunas) were forbidden and a series of rolling power cuts effected across the country. </span></p>
<p><span style="font-size: small;">Although the network apparently generates some 11 billion Kilowatt hours, domestic sales amount to on seven billion, which implies a loss  of approximately 40% in transmission or, to put it another way, that considerable amounts are &#8220;stolen&#8221;.   The pattern of demand for electricity has changed dramatically since independence in 1990, when industry used 85% of the power generated.  As factories closed, this dropped to just 40% &#8211; the rest being consumed by domestic users, especially for heating, cooking and hot water, (with most consumption occurring in the winter &#8211; in the first and last quarters of the year).    </span></p>
<p><span style="font-size: small;">Electricity is highly subsidized by the government &#8211; even though the law specifies that tariffs should cover the cost of generation, transmission and distribution and that one group of consumers should not subsidize others &#8211; and tariffs were below the level required to service the industry.  Despite the fact that the government had begun a policy of switching from &#8220;socially protected&#8221; pricing to a basis of &#8220;profitability and efficiency&#8221; as early as 1998, one of the conditions which led to the Kyrgyz rejecting the HIPC debt relief programme was the requirement to raise tariffs (by 30%) as it was claimed that would be socially unacceptable, raising manufacturing costs and placing local industry at a disadvantage.    </span></p>
<p><span style="font-size: small;">The subsidized  pricing policy has led to one of the biggest problems facing the industry since the collapse of the Soviet Union: the lack of resources for further investment.  This does not mean new investment &#8211; but also investment for repair and renovation of the existing equipment.  This has been exacerbated by the additional wear and tear placed on the equipment from the switch to greater use of hydroelectricity as a source of energy.  Other problems have included the fact that many consumers are late in making payments for the electricity they use and that (as noted above) large quantities of power are stolen from the system. </span></p>
<p><span style="font-size: small;">To try and generate investment the main generating enterprises have been privatized and increased opportunities for exporting power to Kazakhstan, Tajikistan and China and beyond are being exploited.  There are even discussions about extending exports to the growing markets in Pakistan and Afghanistan.   This resulted in considerable criticism of the government &#8211; for selling electricity to its neighbours, only to buy it back from them at a higher cost. </span></p>
<p><span style="font-size: small;">A number of projects have been initiated which provide for smaller power stations, designed to meet the needs of specific small remote communities and users.</span></p>
<p><span style="font-size: small;">There has also been some exploration of the possibility of implementing wind power, thermal heating, organic production using methane from organic waste and utilising solar energy.   One such project which has been explored is the possibility to place wind turbines at the entrance to Boom Gorge, near to Balykchy and in some places, especially in some of the resorts around Lake Issyk Kul, it is possible to see solar panels which were installed in a former period &#8211; but, apparently, few are still operational.  </span></p>
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		<title>Agriculture in Kyrgyzstan</title>
		<link>http://ianbek.kg/?p=4697</link>
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		<pubDate>Thu, 11 Aug 2011 01:00:17 +0000</pubDate>
		<dc:creator><![CDATA[ian]]></dc:creator>
				<category><![CDATA[Society]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[For_the_Record]]></category>
		<category><![CDATA[Kyrgyzstan]]></category>

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		<description><![CDATA[It&#8217;s been announced that with something like 90% of the harvest completed, (from just over 198 thousand of the almost 223 hectares planted),  Kyrgyzstan has collected over 770 tons of grain which is 40 tons than in the same period last year.   Although gathering in the harvest is almost complete in the southern regions, [&#8230;]]]></description>
				<content:encoded><![CDATA[<div id="attachment_4699" style="width: 210px" class="wp-caption alignright"><a href="/wp-content/uploads/2011/07/agriculture2.jpg"><img class="size-full wp-image-4699  " title="agriculture2" src="/wp-content/uploads/2011/07/agriculture2.jpg" alt=" " width="200" height="150" /></a><p class="wp-caption-text">Bringing in the Harvest</p></div>
<p>It&#8217;s been announced that with something like 90% of the harvest completed, (from just over 198 thousand of the almost 223 hectares planted),  Kyrgyzstan has collected over 770 tons of grain which is 40 tons than in the same period last year.   Although gathering in the harvest is almost complete in the southern regions, it has only just started in the mountainous regions of Issyk Kul, Talas and Naryn.  However, with some local variations, productivity per hectare is up.</p>
<p>Reading the report was interesting because it introduced a me to a new unit of measure; it kept referring to centners &#8211; the equivalent to a hundredweight in imperial units, (110 pounds or 50 kilograms) &#8211; which is apparently used in Germany and Scandinavia.</p>
<p>Agricultural production is the largest sector of the Kyrgyz economy accounting for something like 40% of the country’s GDP.</p>
<p><span style="font-size: small;"><span id="more-4697"></span>The Tien Shan and Pamir mountains that make up the territory of the modern Kyrgyz Republic have been home to nomads from ancient times – some archaeological evidence suggests for over half a million years.  Animal breeding, hunting and gathering were their main activities of the early inhabitants of the region.  Their lifestyle, culture, crafts and agriculture evolved from their annual migrations with their livestock – and remained largely unchanged over the centuries until collectivization under the Soviets.</span></p>
<p>Sheep and horses were the main animals husbanded.  In the Soviet period, the country was apparently able to provide all the sheep-meat requirements for the whole of the Soviet Union.  With the advent of economic liberalization, however, the number of animals declined sharply.  It is said that “every cloud has a silver lining” – and in this case the decline in the herds was actually thought to be a positive element, in that it helped to limit the over population and over grazing that some say was common in the Soviet period.  The decline in the number of animals also had, however, a detrimental effect on the quality of pedigree, with several “breeds” of sheep becoming “extinct”. There was also a shift from producing wool to producing meat.</p>
<p><span style="font-size: small;">Yaks, first domesticated somewhere over 4000 years ago, were also kept. Their adaptation to mountain life, and “semi-wild” nature, made them ideal for the nomads requiring little attention and providing meat, milk and hides. They were also useful as pack animals. Today yak meat is highly sort after as a delicacy. </span></p>
<p><span style="font-size: small;">Conventional cattle breeding became more important in the Soviet period and Kyrgyzstan now exports dairy product to its neighbours. </span></p>
<p><span style="font-size: small;">Goats are also an important form of livestock raised in the republic. </span></p>
<p><span style="font-size: small;">Before Independence, there were 16 operating chicken farms – but with the break-up of the soviet union, most of these were unable to compete and fell into disuse – or produced far less poultry meat and eggs than before – although some are now receiving investment and reopening. </span></p>
<p><span style="font-size: small;">Because the landscape of the country is mainly mountainous – only about 6% of the country is suitable for arable farming, whereas some 42% is suitable for pasture. Arable farming has long been practiced in the valleys and low lying plains of Central Asia – there is a large amount of archaeological evidence to show this.  During the thousand years after 300 AD, irrigation was introduced expanding the amount of land brought under cultivation which not only allowed for an increase in the amount of crops grown, but also their variety. Now more than half the cultivated land is irrigated. </span></p>
<p><span style="font-size: small;">The main crops grown include: cotton, sugar-beet, tobacco,  (apparently Stalin used to smoke Kyrgyz tobacco), grains, fruits, vegetables, rice and nuts.  Wheat is probably the main crop which is grown – and the second most important crop is potatoes. </span></p>
<p><span style="font-size: small;">In recent years a number of farms have been established, dedicated to producing organic produce – with certification from American and Korean growers’ associations.  Recent developments have included the cultivation of organic cotton.</span></p>
<div><span style="font-size: small;"><span style="font-size: small;"> </span></span></p>
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<dt class="wp-caption-dt"><a href="/wp-content/uploads/2011/07/Bee-hives-in-Tuu-Ashu.jpg"><img class="size-full wp-image-4698" title="Bee hives in Tuu Ashu" src="/wp-content/uploads/2011/07/Bee-hives-in-Tuu-Ashu.jpg" alt=" " width="200" height="267" /></a></dt>
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<p>Honey is very popular and is harvested from both cultivated and wild bees and is thought to have curative properties.  There is a lot of rivalry between the regions as to who produces the best honey.  In the mountains it is possible to come across a wagon surrounded by hives in the fields by the roadside.  The beekeepers have to pay to place their hives on particular plots and have to move them several times throughout the season.  (Incidentally, in his book “<a href="http://http://ianbek.kg/?p=4457" target="_blank">Hunted through Central Asia – On the run from Lenin’s Secret Police</a>”, Paul Nazaroff describes how, for a time during the Civil War, he worked as a bee keeper in the mountains.)  For those wanting to buy honey direct from the beekeeper, it is best to have a jar to put it in.  The first bees for commercial use were brought to the Prezhervalsky region (Karakol) from Verney (Almaty) as early as 1876, and were rapidly introduced throughout the country.  A single hive can produce about 32 kilograms of honey in a season.  Their importance is evidenced by the fact that they were included on the emblems of local authorities in both Pishpek and Prezhervalsk.  During the Soviet period the beekeepers in the Republic produced enough honey to satisfy local demand and export 12500 tons a year, (for example to Europe and Japan), but the collapse of the Soviet Union led to a loss of markets and this has dwindled considerably.  Regulations, particularly in Europe, have meant extensive product testing being necessary, which is not easily available – the nearest laboratories are in Germany, although there are plans to open one in Kyrgyzstan in the near future. <span style="font-size: small;">Herbs grow and are harvested for culinary, medicinal and other purposes, (for example, as dyes), throughout the country . </span></p>
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<p>&nbsp;</p>
<p><span style="font-size: small;">Primitive tools such as the “omach” – a type of plough – were widely used right until the twentieth century and the soviet period, when industrialization brought many new types of implements. Kyrgyz factories produced many different types of farm machinery and they had the only baler plant in the whole of the Soviet Union. Unfortunately, much of the equipment is now showing signs of age and needs replacement. </span></p>
<p><span style="font-size: small;">“Collectivization” under the Soviets led to the creation of many large farms – but since independence Kyrgyzstan began to privatize collective farms.  In 2000, Kyrgyzstan was the first Central Asian country to introduce private land ownership, and there is now a small market in buying and selling agricultural land.  In 2003, only something like 2% of all produce came from state owned land.  Private gardens, on the other hand, produced over 40% of the country’s produce. </span></p>
<p>&nbsp;</p>
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