Since the collapse of the Soviet Union, the Kyrgyz Republic has made significant progress in adopting market-based reforms, with private sector development as the key engine of growth. Nevertheless, growth has occurred largely from natural resource exploitation and remittances-backed private consumption.
Lake Issyk–Kul in the eastern part of the Kyrgyz Republic is the world’s second largest saline lake; a Ramsar site of globally significant biodiversity; and a United Nations Educational, Scientific and Cultural Organization designated biosphere reserve. In September 2009, the Asian Development Bank (ADB) approved a $16.5 million loan and a $13.5 million grant for the Issyk-Kul Sustainable Deve
Transport corridor 3 of the Central Asia Regional Economic Cooperation (CAREC) program runs from the People’s Republic of China (PRC) through Irkeshtam at the PRC–Kyrgyz Republic border and Karamyk at the Kyrgyz Republic–Tajikistan border toward several Central Asian countries, including Afghanistan and Pakistan to the south and Uzbekistan to the west.
By project appraisal in 2004, significant progress had been made in trade liberalization and trade-related policy by the Kyrgyz Republic, which was still in transition to private sector-led and market-oriented economy. This was evidenced by the country’s accession to the World Trade Organization in 1998.
In November 2008, the Asian Development Bank (ADB) approved a $2.9 million grant for the Investment Climate Improvement Program System Support Project of the Kyrgyz Republic. The project aimed to reduce the cost of doing business in the country by streamlining business registration and foreign trade clearance as measures to improve the investment climate.