ICT & E-commerce development strategy the Kyrgyz Republic UNCTAD-UNECE High-Level Regional Conference for Transition Economies “ICT&E-Commerce Strategies for Development” Palais Des Nations, Geneva, October 2003 Presentation by: Mr. Muktar Jumaliev First Deputy Minister of external trade and Industry of the Kyrgyz Republic Tel Fax e.mail: www: mvtp.kg

KYRGYZ REPUBLIC Population: 5 million Territory: 199,500 km2 Capital: Bishkek 800 thousand people Race: 80 races 53% Kyrgyz Language: Kyrgyz (state) Russian (official) Altitude: 94% over 1000 m WTO: member

Kyrgyz Republic Location near the Biggest World Markets  4 hours flight to 2.5 bln consumer markets including China, Russia and India hours flight to Frankfurt, Geneva, Paris  hours flight to Shanghai, KualaLumpur Low Cost of Production (US$)

Kyrgyz Republic Competitive Labor Cost and Highly Educated Population  Among the world’s highest percentage of literacy rate and graduates in science and technical fields (OECD study) Literacy Rates KR 99.9% China 81% India 52%  Monthly Wages

ICT in the Kyrgyz Republic Hardware Software Internet services Telecommunications

Hardware Joint stock enterprise «Kristal» (up to 2000 tons polycristal silicon) Joint-stock, Kirghiz chemical metallurgy factory (up to 150 tons of monocrystal silicon)

Software Offshore programming Germany Italy USA Ireland Japan The qualified and cheap manpower ($1/h - $5/h)

INTERNET Services  16 Internet - providers (with a cumulative modem pool more than 800 modems, the general capacity 15 Mb/s.)  Since 1998 the National network of data transmission Actively develops broadband access to DSL

Telecommunications  Company " Kyrgyztelecom” - The national operator of communication Digital communication ISDN (service of digital networks with integrated service)  Mobile communication  TDMA GSM CDMA

ICT National Strategy in the Kyrgyz Republic E-Government E-Economy E-Education ICT Strategy

E-Government 1. Mastering of informational systems 2. E – governance 3. Development of a personnel policy adequate to the ICT context 4. Further development informational infrastructure for public administration both at the central and regional levels.

E-Economy Main directions Information Business Electronic commerce Central Asian Regional ICT Business Center

E-Education Human capacity building in the ICT area Informatization of education and educational management Development of human resources and capacity of the staff employed in the ICT sector Application of ICT for adult training, creation of ICT - based distance education systems Partnership with Japan - in 2004 IT Center will be established

Fast integration in to the regional and the world economy Objectives of the E-commerce Doubling of annual indicators of economic growth from 5-6 % up to % Development of new Industry Strengthening of competitiveness of Kyrgyz goods and services

Development of the Internet access services

Development Internet services market

Expected outcomes  By 2010 the e-commerce is capable to generate 1 billion US $  In the GDP structure of the e.commerce can achieve % (share ICT will make 8 % of GDP)  The volume of investments in ICT sector will generate till 2010 about 1 billion US$

Stages of implementation I stage ( )  Adoption of corresponding for e.commerce laws and regulation  Offshore zones  Propagation of new on line opportunities of purchase of goods and services  Creation and perfection of delivery systems of goods and services  Inclusion of the Banner Network of Kyrgyzstan in to the system of exchange banner of CIS and other foreign countries

Development of projects on electronic and online - payments  Creation processing and the certification centers  Introduction of corporative information networks  Attraction of investments  Transition of the tax reporting to electronic forms, payment of municipal services through electronic payments  Introduction of electronic technologies in to the priority sectors (продолжение)

II Stage ( гг.) Start of the Mobile economy М-economy E-economy Processing Economy

Priority Project e-METI ・ e-Trade Project - 1 Concept: Make METI armed with ICT Purpose: 1 Raise up METI capacity for global communication and intelligence 2 Promote external trade and foreign investment through ICT Task: (1) Hardware renewal and addition (2) Building e-METI & e-Trade system (3) Establish “Trade Promotion Center” in METI as a self-financing organization 1 - continued -

e-METI ・ e-Trade Project - 2 (4) Establish ICT department Note: A foreign ICT expert shall be invited for one year to support ICT Dept. (5) Give education and training to METI members for ICT 2

e-METI ・ e-Trade Concept Trade Promotion Center 〔 Inter Net 〕 〔 Intra Net 〕 M E T I Related Organizations Liaison Offices ICT Dept. e-METI Domestic Enterprises & Organizations Foreign Enterprises & Organizations e-Trade 3

Thank you & Welcome to Kyrgyzstan