Mining Industry as a Source of Economic Growth in Kyrgyzstan
The study 'Mining as a source of economic growth in Kyrgyzstan' is developed by the project implementation unit of the World Bank for 'building capacity in governance and revenues streams management for mining and natural resources&#...
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| Language: | English en_US |
| Published: |
World Bank, Bishkek
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2005/01/18550903/mining-industry-source-economic-growth-kyrgyzstan http://hdl.handle.net/10986/16959 |
| Summary: | The study 'Mining as a source of
economic growth in Kyrgyzstan' is developed by the
project implementation unit of the World Bank for
'building capacity in governance and revenues streams
management for mining and natural resources'. This
study is aimed at defining a role for the mining industry in
the country and evaluating its possible impacts on economic
development in the future. Mineral resources development is
an essential condition for successful economic development
of Kyrgyz Republic. In fact, it is the only possible way to
raise social welfare in remote high mountainous regions. At
the present time, some recovery of investment activities in
mining industry has been observed. However, the lack of
long-term capital investments in mining and geological
exploration projects is still acutely felt. International
experts have noted more than once that in spite of the
significant size of territory and good level of geological
study, the minerals potential of the country remains
underdeveloped. At present, its output is 25.578 billion som
or 48 percent of all the industrial production. Its share in
Gross Domestic Product (GDP) is 10.2 percent, in export
volume-41.1 percent and tax revenues - 11 percent. The
royalty on subsoil use yields budget revenues of 568.0
million som per year. The mining industry involves more than
15 thousand workers. Monthly average wage is about 10 600
som about four times higher than the average for Kyrgyzstan,
which was 2240.3 som in 2004. The study showed that creation
of one job in mining industry would lead to creation of 1.6
jobs in related industries that provide supply of goods and
services for mining. The prognosis of mining sector
development to 2020 is made on the basis of the results of
the study of data related to: production volume, direct and
indirect employment, tax revenues to state budget. The
implementation of recommended reforms will require
significant efforts by the Government. However, they will be
repaid by the enhancement of mining industry, which will
become a substantial source of economic growth in Kyrgyzstan. |
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