Chapter 7 Overview of Kyrgyzstan's Public Sector Institutional Reforms from 1991 to 2011

Following the collapse of the Soviet Union, Kyrgyzstan found itself cut out from Moscow's subsidies that constituted 10% of its GDP at that time (World Bank, 2003). Kyrgyzstan's economy went into severe crisis as it was interwoven into the economic infrastructure of the other republics of the former Soviet Union, which were also disintegrating. Hence, the most urgent issue on the agenda of the government and donors was economic recovery and stabilization. Partly because of this excessive external economic dependency, the new government was forced to seek out funds from donors in exchange for a commitment to a series of institutional reforms.