KYRGYZ PRESIDENT OUTLINES DEVELOPMENT STRATEGY IN

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