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C O N F I D E N T I A L SECTION 01 OF 02 BISHKEK 001383 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR SCA/CEN 
 
E.O. 12958: DECL: 09/28/2016 
TAGS: PREL PGOV ECON EINV KG
SUBJECT: KYRGYZ PRESIDENT OUTLINES DEVELOPMENT STRATEGY IN 
NATIONAL ADDRESS 
 
 
BISHKEK 00001383  001.2 OF 002 
 
 
Classified By: DCM LEE LITZENBERGER; REASONS 1.4 (B,D) 
 
¶1.  (SBU)  Summary.  Kyrgyz President Bakiyev presented his 
national development strategy to the assembled parliament, 
diplomatic corps and other dignitaries on September 28. 
Speaking in Kyrgyz, he stressed the need for all branches and 
levels of government to work together to attract foreign 
investment, extolled the virtues of private versus state 
companies, called for the transparent privatization of the 
energy sector, and a new emigration policy to halt brain 
drain while retaining remittances.  On political reform, he 
called for pragmatic constitutional amendments, with a strong 
Presidency, that would help the country develop; he urged a 
new law on political parties, decentralization of fiscal 
authority to empower local officials, and a restructuring of 
the executive branch (but did not announce any cabinet 
changes).  Turning to foreign policy, he said national 
interests dictated good relations with neighboring countries 
(including Russia), adding that he would seek close ties to 
all countries interested in helping Kyrgyzstan, and mentioned 
Japan and the U.S. specifically in this regard.  End Summary. 
 
Economic goal:  Attracting foreign investment 
----------------------------------- 
¶2.  (SBU)  Kyrgyz President Bakiyev presented his annual 
address to the nation, titled &On the National Strategy for 
Development and Near-Term Tasks8 to the assembled 
parliament, diplomatic corps and other dignitaries on 
September 28.  In his one-hour address (delivered in Kyrgyz) 
Bakeyev focused on the tasks ahead, several times noting the 
futility of debating past mistakes or engaging in political 
squabbling.  He lamented the time wasted since independence, 
noting that Russia, Kazakhstan and other CIS countries have 
moved much farther ahead than Kyrgyzstan.  He presented a 
strategy focused on economic development through attracting 
foreign investment in energy, transportation, agriculture and 
mining.  Bakiyev specifically noted the need to privatize the 
energy sector, contrasting the efficiency and increased tax 
revenues of private vs. state energy firms.  He called for a 
new policy on migration that would maintain the benefits to 
Kyrgyzstan of the remittances of Kyrgyz expatriates while 
minimizing the resulting loss of qualified workers within the 
country. 
 
Decentralized Government, Strong Executive Power, Active 
Parties 
------------------------- 
¶3. (SBU) Bakiyev listed four goals for creating &effective 
government,8 the absence of which he said was the basic 
problem facing the country.  First, full restoration of 
&hard power8 (tverdi vlast) and rule of law.  Second, 
carrying out necessary changes in the Constitution ) calling 
for a strong executive power and a pragmatic text.  &We 
don,t need an idealistic, abstract model constitution( a 
parliamentary form of government works very well in countries 
where there is a developed political elite.8  Bakiyev also 
called for the formation of capable political parties (a new 
law is needed, he said), civil society, and raising a new 
generation of political elites.  Finally, Bakiyev called for 
a transformation of the economy focused on new technology. 
Much of his speech was devoted to the need to restructure the 
executive branch, improve coordination among regional and 
local authorities and the Presidency, and hold ministers 
accountable for their portfolios. 
 
Good relations with neighbors, and those who help Kyrgyzstan 
-------------------- 
¶5.  (SBU)  Turning briefly to foreign policy, Bakiyev said 
from day one he has insisted that Kyrgyzstan will adhere to 
all of its international and bilateral obligations and 
agreements.  The changes he has made in foreign policy were 
due to the principle of giving priority to national 
interests.  This means placing greater attention on good 
relations with neighboring countries.  (Departing from his 
 
BISHKEK 00001383  002.2 OF 002 
 
 
written text, he mentioned Kazakhstan, Turkmenistan, 
Uzbekistan, China and, in a geographic sleight of hand, 
Russia.)  This pragmatic foreign policy, Bakiyev said, means 
Kyrgyzstan values foreign assistance and will recognize those 
who honestly help the country.  Kyrgyzstan needs to build 
partnerships with the largest number possible of countries 
that are interested in supporting Kyrgyzstan.  (Again, 
departing from his text, he mentioned Japan and the U.S. as 
examples.)   Bakiyev then laid down some markers:  no country 
can interfere in Kyrgyzstan,s internal affairs if Kyrgyzstan 
does not violate any international obligations; and there are 
no &teachers8 or &students8 in international affairs, all 
countries are sovereign.  Kyrgyzstan has developed to the 
point it can make its own decisions, as the events of March 
2005 (the Tulip revolution) demonstrate.  Bakiyev ended 
saying his government was working on a new foreign policy 
&concept,8 which he said parliament should adopt as a law. 
 
Kyrgyzstan must do the hard work itself 
---------------- 
¶6.  (SBU)  Bakiyev said he wanted to break with past practice 
when the President offered his vision, no one raised any 
objections, but no one did anything either.  He said the 
country,s development and strategic goals should be 
discussed this fall ) by parliament, local assemblies, 
citizens and NGO,s.   Bakiyev ended his remarks with an 
appeal to face the tasks before Kyrgyzstan &with one will.8 
 He cautioned his audience against counting on foreign 
assistance to make Kyrgyzstan rich.  &We lived with this 
hope for a long time, but only received a lot of debt.  We 
must do our own work.  We have a worthy land and a worthy 
people, and worthy goals.  We need only work and harmony.8 
 
Comment: Something for Everyone 
------------ 
¶7.  (C)  Bakiyev,s speech included many positive elements in 
support of political and economic reforms, but it remains to 
be seen whether he will be able or intends to carry them out 
in a transparent manner.  Bakiyev only made two brief 
references to civil society and NGOs in his remarks, but both 
were positive.  His endorsement of private enterprise and 
decentralization of power were also encouraging, as was his 
call for a nation-wide discussion of the strategy he 
presented, but as always the devil is in the details of how 
the process unfolds.  Bakiyev reiterated his commitment to 
pursue constitutional reform, but stated his clear preference 
for a strong Presidential government to be the outcome. 
Although Bakiyev did not announce any of the rumored changes 
in the cabinet, he cautioned that he would be assessing 
ministers and local officials between now and the end of the 
year, and those who perform poorly &will go.8  From our 
perspective, there is plenty in the speech that we can use to 
push for continued political and economic reform. 
 
 
 
 
YOVANOVITCH