Globalisation and external debts: Case in Kyrgyz Republic

By the end of the 20.century the term ?global? had became the most used definition of all the knowledge researches. The technological inventions got to the top just as the marketing of these staffs did. Especially, political changes accelarated the economic transitions, the planned economy was occupied by market economy. The globalisation process forced the world to be just one big global village.In 1991, after the collapse of USSR the Kyrgyzstan became sovereign Kyrgyz Republic. After the collectivist regime the government chose market economy instead of socialist-planned system, aiming to proceed the globalisation process. The new economic system was called as the ?transition economy?.The trade was absolutely liberalized, government started to became member of international organisations, signing a variety of international agreements. But the deficit did not stop accelarating. To cutt off the deficit internal sources was not enough. So asking for external sources was vital.The republic had zero(o) debt after the collapse of USSR, the first external debt was taken in 1993.İnterval of 1999-2003 total external debts overlapped the GDP of the country, during other years total external debts was more than the %60 of GDP.İn 2006, because of the heavy debt burden, IMF wanted Kyrgyzstan to became a HIPC member country.The Heavily Indebted Poor Countries İnitiative was launched in 1996 aiming to reduce the growth of debt in member countries and to provide them a sustainable growing economy.Aim of this paper is to analyse the external debt burden while considering the globalisation process and determining the effects of globalisation on the Kyrgyz Republic?s liberalised economy. The paper therefore also defines the countries HIPC entrance, compering the it?s economical datas with other HIPC countries? datas.