A Central Asian country of incredible natural beauty and proud nomadic traditions, Kyrgyzstan was annexed by Russia in 1864; it achieved independence from the Soviet Union in 1991. Nationwide demonstrations in the spring of 2005 resulted in the ouster of President Askar AKAYEV, who had run the country since 1990. Subsequent presidential elections in July 2005 were won overwhelmingly by former prime minister Kurmanbek BAKIYEV. The political opposition organized demonstrations in Bishkek in April, May, and November 2006 resulting in the adoption of a new constitution that transferred some of the president's powers to parliament and the government. In December 2006, the Kyrgyz parliament voted to adopt new amendments, restoring some of the presidential powers lost in the November 2006 constitutional change. Current concerns include: privatization of state-owned enterprises, expansion of democracy and political freedoms, reduction of corruption, improving interethnic relations, and combating terrorism.

Kyrgyzstan is a poor, mountainous country with a predominantly agricultural economy. Cotton, tobacco, wool, and meat are the main agricultural products, although only tobacco and cotton are exported in any quantity. Industrial exports include gold, mercury, uranium, natural gas, and electricity. Following independence Kyrgyzstan was progressive in carrying out market reforms, such as an improved regulatory system and land reform, but political instability during 2005-06 has undercut the investment climate. Kyrgyzstan was the first Commonwealth of Independent States (CIS) country to be accepted into the World Trade Organization. Much of the government's stock in enterprises has been sold. Drops in production had been severe after the breakup of the Soviet Union in December 1991, but by mid-1995, production began to recover and exports began to increase. The economy is heavily weighted toward gold export and a drop in output at the main Kumtor gold mine sparked a 0.5% decline in GDP in 2002, but GDP growth bounced back the following year. In 2005 Kyrgyzstan again experienced a decline in GDP, this time 0.6%. The government has made steady strides in controlling its substantial fiscal deficit, nearly closing the gap between revenues and expenditures in 2006. The government and international financial institutions have been engaged in a comprehensive medium-term poverty reduction and economic growth strategy; in 2005 Bishkek agreed to pursue much-needed tax reform and in 2006 became eligible for the heavily indebted poor countries (HIPC) initiative. Progress fighting corruption, further restructuring of domestic industry, and success in attracting foreign investment are keys to future growth.

This information is from The World Factbook.