Kyrgyzstan as an economy in transition

Social and economic appearances in transition economies have been unsolved within the initial policy advices based on the mainstream economics. Rapid implementation of mostly advised comprehensive economic reform packages have not been resulted in anticipated outcomes. Most studies on these economies confirm non-existence of the corresponding efficient institutions as one of the major reasons for inefficient outcomes of economic reforms. However, these studies are generally limited by indicating the extent to which institutions important for these economies. While better understanding of the success of economic reforms in transition economies requires further analysis on formation of institutions, sources of inefficiency in institutions and persistence of inefficient institutions in the context of transition economies.This thesis has attempted to analyse structural economic reforms in transition of Kyrgyzstan to market economy and explain their inefficient outcomes. Particular emphasize is given to analysis of implementation of structural economic reforms and on the efficiency of institutions. Transition process under the research include period of 1991-2007. Analyses are based on interpretation of statistical data, other relevant documents and studies. Results of the thesis are in line with the other studies which conclude that formation of efficient institutions is precondition for successful transition to market economy. Character of implementation of structural reforms along with historical legacies and growth performance are found as major determinants of institutional efficiency in the context of transition. As the primary solution for institutional improvement measures taken by government with focus on administrative reforms are recommended. Also eventual increasing economic growth performances and corresponding behavioral adjustment have potential to contribute to improvements of institutions.