Local Government in Asia and the Pacific:
A Comparative Study

Country paper: Kyrgyzstan

  Description of the Country
  Evolution of Local Government
  Local Government Categories
  Local Government Functions
  Local Government Finances
  Central-Local Links
  The Way Ahead

Brief Description of the Country and its Nation/State Government Structure

Demography

The Kyrgyz Republic was one of the five new independent states that emerged in Central Asia after the breakup of the Soviet Union. The history of the Kyrgyz people can be traced back to a very distant past. Kyrgyzstan as a territory was first mentioned in Chinese sources as long ago as in 201 BC. However, the description of the land was scant and sometimes ambivalent. The geographical origin of the people is still the subject of scientific disputes. It is believed that the early feudal state of Kyrgyz stems from the fourth or fifth century BC when they settled in the Minusinsk basin along the Siberian river Enisej, Northeast of today's Kyrgyzstan. In the fifteenth and sixteenth centuries, the territory inhabited by various Kyrgyz tribes stretched from West Mongolia to West Turkmenistan. However, Central Tjan-Shan, Chuj Valley and the Southeast of the Fergana region, the territory that approximately coincides with today's borders, made the nucleus of the Kyrgyz settlements.

From the middle of the nineteenth century, Kyrgyz tribes gradually joined the Russian Empire. A new stage of economic and cultural development of the Kyrgyz people within a communist state began after the Great October Socialist Revolution of 1917. After the breakup of the Soviet Union, the Kyrgyz Republic became the legitimate successor of the Soviet Kyrgyzstan and was recognized as an independent country by the world community. The government announced that Kyrgyzstan would become a democracy.

Table 1. Chronological Table of the Kyrgyz History

The borders of the Kyrgyz Republic are demarcated by natural boundaries: mountain ranges, rivers and the Chuj and Talas plains and the Fergana Valley. In the north Kyrgyzstan borders with Kazakhstan, in the west with Uzbekistan, in the south-west with Tajikistan and in the south-east with China. The total territory of the country from east to west is 900 and from north to south 410 kilometers. The territory of the country is 198.5 thousand square kilometers. The average elevation above sea level is 2750 metres; the maximum elevation is 7,439 metres (Pobeda Peak), the minimum 394 metres (South-West Kyrgyzstan). Kyrgyzstan lies between 39 and 43 north latitudes. Mountains provide Kyrgyzstan with various natural resources such as drinking and mineral water, gold, silver, aluminum, mercury, tin, iron, coal, etc. Mountain glaciers and rivers supply water and help produce electricity.

The population was 4,483,400 people in 1995 with an average population density of 22 people per square kilometer. However, four-fifth of the population resides in the valleys and low places that altogether make 15 per cent of the territory. There are six big regions in the Kyrgyz Republic: Chuj Oblast, Issik-Kul Oblast, Osh Oblast, Jalal-Abad Oblast, Naryn Oblast and Talas Oblast. Each has a Mayor. Besides, Bishkek, the capital city, is self-governed and its Mayor is elected on a regular basis.

Table 2. Distribution of the Population in Different Regions (1995)

Table 3. Demographic Data

Table 4. Population Dynamics

Currently there are 80 ethnic groups in Kyrgyzstan. The table below demonstrates the ethnic composition of the Kyrgyz nation, which has considerably changed over recent years.

Table 5. Ethnic Composition

Table 6. Educational level for the Kyrgyz Republic
(x 1000, 15 years >)

The rate of urbanization is relatively small and stable. Population increase in the cities has amounted to 1.8 per cent due to the increase in the number of population (as opposed to the increase in the number of new towns). In 1995, according to official data there were 1,558,171 people, including 748,889 men and 809,282 women (of which 504,121 people below and 177,997 above the working age) living in urban areas. However, the real figures are most probably higher. Due to the financial crisis in the agricultural sector, a large number of working age rural population is migrating to the cities.

The capital city Bishkek, is situated in the middle of the Chuj Valley, at the foot of Ala-Too mountain range at an altitude of 700-900 metres above sea level. According to official data, there are currently 700,000 people residing in the area of Bishkek. The second important city of the Chuj Valley is Tokmak where some key industrial, food processing and other companies are located. From the tenth to the twelfth century, Balasagun, the capital of the Karahanids and Karluks States was situated on the location of present day Tokmak. In the beginning of the fourteenth century, military fortifications were constructed by Kokands in the area of today's Tokmak.

The second largest Kyrgyz city is Osh, the capital of the Osh Oblast and one of the most ancient cities of Central Asia. The City of Osh was first mentioned in Arab sources as long ago as the ninth century. Starting from the sixteenth century, it became a religious centre in the Fergana Valley due to the myth that Prophet Suleiman (Solomon) had established it. 22 kilometers north-east of Osh, a large railroad station is situated at Kara-Suu City. 45 kilometers north of Kara-Suu is the city Jalal-Abad, the capital of the Jalal-Abad Oblast. The city was founded along healing mineral springs in 1880 as a small settlement at the foot of the Aibub-Too Mountain. Jalal-Abad is one of the industrial centres of Southern Kyrgyzstan. The City of Uzgen is situated in the eastern part of the Fergana Valley, on the banks of Kara-Darya river. It is one of the oldest and most ancient cities in Central Asia and was founded between the twelfth and thirteenth centuries as a commercial settlement on one of the sub-roads of the Great Silk Road connecting Central Asia and China.

National and political structure

The government structure is divided into three branches: the executive branch, the legislative branch and the judiciary. The executive branch is headed by the President of the Republic and comprises the government and its local state administrations. The legislative branch comprises the Parliament (Jogorku Kenesh) consisting of two houses: the Legislative House and the House of People's Representatives. The judicial branch comprises the Constitutional Court, the Supreme Court, the Supreme Arbitration Court and smaller courts and judges.

According to the Constitution, the President is the head of state, supreme commander, symbol of the unity between the state and the people and guarantor of the Constitution and the rights and freedoms of citizens. The President determines external and internal polities of the country, represents Kyrgyz Republic inside the country and abroad. The President is the guarantor of the sovereignty and territorial integrity, as well as of the unity and continuity of state power. He is also the ultimate coordinator of the functions and responsibilities of all state branches and bodies and their accountability to the citizens.

The President is elected for a period of five years and may not be re-elected for more than two consecutive terms. The President should be at least 35 years old but not older than 65. The President must speak the state language and must have been a resident of the republic for at least 15 years prior to his election. The President may not act as a Deputy of Jogorku Kenesh, hold any other positions or get involved in entrepreneurial activities.

Main powers of the President

The Constitution provides the following powers to the President:

• Determination of the governmental structure;
• Appointment, upon approval of the House of People's Representatives, of the Prime Minister;
• Appointment and dismissal, upon consultation with the Prime Minister, of the members of government and heads of administrative agencies; taking appropriate decisions on dismissal of the Prime Minister or the government by a presidential initiative;
• Appointment and dismissal, upon approval of the appropriate territorial Keneshes, of administrative, regional, city and village Mayors;
• Appointment of the State Secretary, determination of his status and powers; formation of the President's administration;
• Formation and dissolution of executive bodies (to the extent those are not part of the Parliament);
• Formation of and presiding over the Security Council and other coordination bodies; and
• Upon consultation with the Prime Minister, approval of the unified system of training and employment of personnel of the budget institutions and agencies, financing of state bodies and compensation of state employees.

The President issues decrees and instructions mandatory for execution in the territory. According to article 35 (provision 5, subparagraph 6) of the Constitution, a presidential decree has the power of law.

Jogorky Kenesh

The Parliament is a representative body with executive powers. The Jogorky Kenesh consists of two houses:

• The Legislative House consisting of 35 deputies acting on a continuous elective basis and representing the interests of the citizens; and
• The House of People's Representatives consisting of 70 deputies meeting in session and elected to represent territorial interests.

The deputies of both houses are elected for the period of five years. Procedures for election of the deputies are established in the Constitution. Each house of Jogorky Kenesh meets for its first session right after the election, if no less than two thirds of its deputies have been elected. The house conducts its first assembly within 30 days after publication of the election results. The Legislative House and the House of People's Representatives sit and meet separately. In some instances the houses meet together. These are stipulated by the bylaws of Jogorky Kenesh and include occasions such as the oath taking, presidential addresses and reception of official foreign speakers.

A Deputy should be a citizen, be at least 25 years old and have been residing in the republic for no less than 5 years prior to his or her election. A Deputy is a representative of the citizens of Kyrgyzstan and is governed by the Constitution and his or her conscience. A person may not be elected as a Deputy for both houses, nor may he or she act as a Deputy of a local Kenesh. A Deputy may send an inquiry to an executive body or officer, which the latter must satisfy within 10 days from the date of receipt.

Powers of the Legislative House

The Legislative House of Jogorky Kenesh has the following powers under the Constitution:

• Making amendments and annexes to the Constitution;
• Adopting laws;
• Changing borders;
• Approval of the laws passed by the House of People's Representatives; and
• Upon a suggestion of the President, election of the Chair of Constitutional Court, its deputies and judges; taking a decision on dismissal of the above officers in accordance with the procedures stipulated by the Constitution;
• Election of one third of the Central Election and Referendum Commission;
• Appointment of one third of the auditors serving on the Clearing House; and
• Filing a litigation against the President for his dismissal.

Powers of the House of People's Representatives

The House of People's Representatives has the following powers under the Constitution:

• Making amendments and annexes to the Constitution;
• Approval of the laws passed by the Legislative House in the instances stipulated by Constitution;
• Approval of the national budget and budget execution report;
• Changing borders;
• Administrative and territorial arrangements;
• Selecting the date of presidential elections;
• Upon a suggestion of the President, electing the Chair of Constitutional Court, his deputies and judges;
• Upon a suggestion of the President, appointing the Chair of Supreme Court, Supreme Arbitration Court, as well as their deputies and judges;
• Selecting one third of the members of the Central Election and Referendum Commission;
• Selecting one third of the members serving on the Clearing House;
• Dismissal of the President; and
• Vote of no confidence in the Prime Minister.

Implementation bodies of the executive branch

Executive power is exercised through the following bodies:

• Government and its subordinate ministries;
• State committees;
• Local state administrations; and
• State commissions, funds and business programmes (projects).

The government is a supreme executive and instructive body of the state administration. The government makes decisions on all questions of state administration, except for those pertaining to the competence of the President and Jogorky Kenesh. The term of office of the government is concurrent to the term of office of the President. Therefore, a new President may dismiss the government and select a new Cabinet. The government consists of the Prime Minister, First Vice Prime Minister, Vice Prime Minister for Social Matters, Vice Prime Minister for Agricultural Reform and ministers of various ministries. The structure of the republic is determined by the President upon a recommendation of the Prime Minister and is subject for further approval by Jogorky Kenesh. The government forms:

• Ministries;
• State committees;
• Administrative agencies;
• State commissions; and
• Government (state) funds and business (commercial) projects.

The President appoints the Prime Minister who is in charge of the government and is personally responsible for execution of the government's functions. Besides he determines the main activities of the government, facilitates its operation and is personally responsible for the results of such operation. The Prime Minister nominates various minister and heads of departments to the President. Decisions of the Prime Minister on appointment or dismissal of an officer become effective only upon approval by the President.

Judiciary branch

The following kinds of courts exist in Kyrgyzstan: the Constitutional Court, Supreme Court, Supreme Arbitration Court and Local Courts (including military courts). The status of the courts and judges is established in the Constitution. Organization and procedures for operation of the courts are determined in the respective legislations. A judge is subject to the Constitution and law only and is provided with all the appropriate social, material and other guarantees of independence. Article 80 of the Constitution establishes age and qualification requirements, as well as procedures for election of the judges. According to the above article, a judge of the Constitutional Court should be at least 35 and no older than 70 years old, hold a legal university degree and have at least 10 years of professional practice. The Legislative House of Jogorky Kenesh and the House of People's Representatives elect judges of the Constitutional Court for a 15-year term. Judges are selected at the suggestion of the President. Judges of the Supreme and Supreme Arbitration Courts are elected, by suggestion of the President, for the term of 10 years. The judge of a local court should be a citizen, no older than 65 years old, with a university law degree and at least 5 years of professional experience. The President appoints local judges. A judge is normally appointed for a 3-year term and may be re-elected for a consecutive 7-year term.

Judges may be dismissed due to medical reasons, through their personal initiative, or on the basis of the court decision rendered on the fact of alleged violation (crime) committed by the judge, as well as on the basis of other reasons stipulated by the law. Judges of local courts may be dismissed on the basis of unsatisfactory results of the regular attestations. Judges of the Constitutional Court may be dismissed upon a suggestion of the President by decision of no less than two thirds of votes of the total number of deputies in each of the houses. Judges of the Supreme Court and Supreme Arbitration Court may be dismissed upon suggestion of the President, if approved so by no less than two thirds of the total number of deputies of both houses. The Constitutional Court is the supreme justice body. The Constitutional Court may announce any piece of legislation unconstitutional and stop its implementation.

The Supreme Court is the supreme judicial body in the area of the civil, criminal and administrative proceedings. The Supreme Court supervises oblast, Bishkek city, regional and village courts. The Supreme Arbitration Court and regular arbitration courts of the republic form the system of arbitration. Arbitration courts resolve economic disputes arising between various economic entities. Supreme Arbitration Court supervises judicial activities of other arbitration courts. Along with the three branches of power forming a democratic foundation, Kyrgyzstan has local governments. According to the Constitution, there is a distribution of powers between the local and state governments.

Evolution of Local Government, its Legal and Political Background

The history of local self-government is rather vague. There are two schools of thought. Some scholars believe that local self-government has deep historical roots and consider that the Kyrgyz have had certain self-governing institutions (councils of the oldest respected citizens, oldest representatives of clans, etc.) that independently decided on virtually all questions of the community life. The Kyrgyz self-organization, self-protection and self-government, reliance on internal resources and collegiate decision-making allowed them to survive as a nation. The second school of thought states there has never been a serious experience of what is currently defined as self-government. By the beginning of the twentieth century, Kyrgyzstan had not known the phenomenon of territorial self-government based on the compliance with law and civil rights. Both of the above views may have some validity.

The Kyrgyz of the middle ages did not have local self-government as we know it today. However, certain primary forms of local self-government had existed since the ancient times. During the early Soviet era (1924-1926) the Councils (Soviets) of People's Deputies acted as self-government bodies. At that time, the Soviets executed political and economic decisions of the central government, which fully conformed to the existing system of a single economic policy and form of property (national property). Local Soviets acted as mere representatives of the central power. This could be regarded as the first era of modern local government in Kyrgyzstan. For a brief period of time, the Soviets were allowed relative Independence. Self-government bodies were allowed to act as supreme local governmental bodies within their subordinate territory and were even allowed to attract private capital. This can be termed as the second stage of the institution of self-government

Beginning in 1933, the Soviets returned to their old responsibilities and began acting as implementers of central government decision. During this period, the concept of centralization became deep rooted. The concept that local governments are only implementers of national policies and programmes rather than a system of various community and public organizations can be traced to this era. This third era lasted from the 1930s to the 1980s.

The last (fourth) period of development of self-government began in the middle of the eighties. The law of the Soviet Union served as a decisive factor. The law, as the authors believed, was utopian, romantic and was more of a desire for freedom from censorship and propaganda rather than a statement of the reality. The law provided the Soviets with certain independent functions, with an independent property and budget.

When Kyrgyzstan became independent, self-government was not a priority question. Rather, the country was dealing with the urgent political and legislative issues. However, with the continued development of democracy and a market economy, the question of self-government re-emerged on the agenda. The President, Askar Akaev, formulated the concept as follows during a meeting with the heads of local governments: "The foundations of a democratic state have been raised and the walls and the roof have been constructed. Therefore, the right time for interior improvement has arrived. Along with material values, it is necessary to ensure and preserve humanitarian values. In order to achieve this, we need to work as a country and there is only one way to reach the goal - through the self-government institutions." Self-government reform started in 1994-1995, based on international experience, local tradition and mentality.

The reform changed the very nature of self-government in Kyrgyzstan. There are certain peculiarities in the system of self-government. As Kyrgyzstan has known a long tradition of bureaucratic, centralized power and has always had a well-organized system of state bodies, the new form of self-government has weaknesses. There is lack of delineation and hierarchy of power between various national and local government bodies. Secondly, people are used to being subsidized by the government and do not quite believe in the concept of self-government and its constructive benefits. Consequently, various central government organs have not fully delegated the agreed portion of their power to the local governments and the latter are unable to solve all the problems of their subordinate territories. Currently, national administration is very strong. However, all regions and oblasts of the republic are involved in establishing and developing self-government bodies.

Local government reform was started on the basis of various suggestions of local organizations and communities. The first stage of the local self-government development was the preparation of a legislative framework. Kyrgyzstan now has sufficient legislative basis to implement sound self-government practices. The reform of local self-government was initiated by the President and was legally guaranteed by various legislative and normative acts. Local self- government, as a principle and a notion, was included in the Constitution. The most important aspects of the reform are:

• Legislative background;
• Financial basis of the local self-government;
• Vertical structure;
• Determination of the powers and functions of local self-governments and their relationships with the state structures;
• Education of local self-government bodies, coordination of activities of various self-governments, implementation of best practices; and
• State programme of support for self-government.

Local Government Categories and Hierarchies

Legislative acts regulating self-government are the Constitution, its laws and presidential and governmental decrees, referring to the creation of village self-government councils.

Local self-government

Local self-government refers to a group of people that has been formed in order to resolve, directly or through their elective local bodies, various local issues. A local self-government unit administers local issues on behalf and in the interests of its citizens and on the basis of the specific features of certain administrative and territorial units. All decisions made by a local self-government body are based on and regulated by the legislation and are financed by appropriate material and financial base. Local government is a democratic form of execution of the people's will. It is implemented on behalf of the population residing in the area (local community) on the basis of independent regulation of local life on the basis of the laws and other normative and legislative acts of the country.

Local community

Citizens residing in the territory subordinate to the local government body are called the local community. Common interests unite a local community. A member of the local community is a citizen, permanently residing in the territory of the community and connected with it by mutual interests. A person not residing in the territory of the local community, provided he or she has a property in the form of real estate and pays tax on such property, is also considered a member of the community. Local self-government is implemented through the local Keneshes (councils) and their executive bodies, as well as through the direct referendums, meetings, conferences, etc. The legislation envisages several levels of local self-government:

• Primary territorial level (small village, ale and town Keneshes as part of larger districts);
• Basic territorial level (city and city district Keneshes as part of large cities); and
• Oblast territorial level (Oblast Keneshes and Bishkek Municipal Kenesh).

A Kenesh of any level is considered a legal entity and has the right to independently regulate and resolve any issues in their competence. The system of local self-government includes:

• Local Keneshes;
• Territorial self-government bodies (councils of city districts, committees of large complex buildings, street committees, block committees, village councils, etc.); and
• Local referendums, people's assemblies, meetings and other forms of direct democracy.

Local self-government bodies are accountable to both the state and the citizens of the respective communities and can become subject to revision by the state when it loses the trust of its citizens. A higher-level government body may change the decisions of a local self-government body if they are found to violate the Constitution and its laws. Decisions of local self-government bodies may be appealed against in the court. Disputes between self-government bodies may be resolved through conciliatory commissions or the court. Local Keneshes are elected by their citizens through general elections. A Kenesh is elected for a period of five years. Currently, about 9 to 15 deputies are elected at the village level. A city may elect as many as 25 deputies

Local Government Functions

Local self-government bodies - Keneshes - have the following functions:

• Utilization of land owned by the community;
• Development of social and economic programmes for the community;
• Maintenance of roads and all means of communication;
• Maintenance and financing of public educational and medical institutions;
• Control over rational utilization of natural resources;
• Maintenance of historical monuments and traditions;
• Rendering everyday economic and other social and cultural services to the citizens;
• Development of sports and tourism;
• Provision of public order and safety;
• Registration of legal entities/individuals involved in entrepreneurial activities;
• Approval of territorial budget; and
• Making suggestions to the administrative and territorial arrangements of the local community (i.e. organizing local referendums, etc.)

A local self-government body may express its distrust in the heads of local state administrations. Decisions of local Keneshes, taken within the area of competence of those Keneshes are obligatory for execution by all entities, agencies and institutions of the respective territory regardless their form of ownership, as well as by officials, government agencies and citizens. Decisions of referendums, meetings, conferences and other assemblies of local Keneshes may not contradict the legislation. Any decision of the local referendum is rendered exclusively within the competence of that local community and is obligatory for execution by the local Kenesh, local state administration, territorial self-government bodies and by all entities and citizens of the respective territory.

Local Keneshes cannot take decisions on subjects that have been allocated to the national administration by legislation. Likewise, national administration organs may not take decisions on the issues that fall under the competency of the local Keneshes. A failure to execute decisions of local Keneshes or those of national administrations by citizens or officials, may lead to prosecution. Suggestions of the local self-government bodies must be considered and accounted for by supreme governmental and management bodies, as well as by public organizations. The results of consideration of such proposals should be communicated to the local self-governments in accordance with the procedures provided by law. In certain cases, local self-government bodies may be delegated authority over certain other questions in excess of those described above. Keneshes work in sessions that are convened as necessary, but at least once every year. Sessions of local Keneshes are open to representatives of economic entities, companies, public organizations and civil society groups as well as mass media.

The Chair of a Kenesh, his Deputy and the Secretary of Kenesh are elected during the first session through a secret or open vote. The candidacy of the Kenesh Chair is suggested by the head of the appropriate state administration from the total number of deputies of the respective administrative and territorial units. In very small rural areas, the Kenesh Chairman also acts as the head of the local state administration. In addition to the above, the population of a small village may select a monitor to whom it may delegate certain of the Chairman's functions. A local self-government body has the right to create its own committees, recognize deputies, receive Deputy execution reports. A Kenesh Chairman may be dismissed through a secret vote during a Kenesh session, if voted so by no less than two thirds of the total number of Kenesh deputies. At the same time, a Kenesh Chairman may resign prior to the end of his or her term of office. A simple majority of the total number of Kenesh deputies takes the decision to accept or reject the resignation through an open vote.

A Kenesh Chair convenes sessions of the Kenesh, conducts meetings, signs decisions rendered by the Kenesh, ensures implementation of those decisions, coordinates permanent and other Kenesh commissions and Deputy groups, assists deputies in the realization of their powers, receives citizens, reports to the electors, provides citizens with information, considers questions regarding the rights and responsibilities of deputies, ensures transparency and openness, represents the Kenesh and its bodies in relationships with other state bodies, public associations and citizens, facilitates interaction between the Kenesh and territorial self-government bodies, suspends the effect of normative documents adopted by territorial public self-government bodies under the Kenesh jurisdiction, if such acts violates the rights and lawful interests of the citizens pending a final court decision. In addition, the Kenesh Chairman initiates elections of deputies of newly formed Keneshes of administrative and territorial territories under its jurisdiction as well as issues instructions on the questions within his or her competence.

The kenesh deputies form permanent commissions that consider and prepare reviews on various issues to be discussed during the session. Deputies also participate in the implementation and monitoring of Kenesh decisions. The list of Kenesh commissions, as well as their quantitative compositions and selection procedures is determined by Keneshes independently on the basis of their own needs. During the term of its operation, a Kenesh may form new commissions, dismiss or reorganize old commissions, make changes in the composition of those. Chairmen of ale, village, town (subordinate to the district authority) are accountable to the respective Kenesh. In terms of the executive and administrative policy, the Chairmen of the above Keneshes are accountable to the Chairman of the regional state administration. Chairmen of ale, village and town (subordinate to the district authority) Keneshes implementing their executive and administrative functions within the related territory, enjoy the same powers as those of the local state administrations. In addition, the Chairmen of the above mentioned Keneshes:

• Control compliance with the passport system; register residence status of the citizens;
• Specify the civil and social status of citizens;
• Assign trustees and legal guardians, control execution of their responsibilities;
• Implement notary functions in accordance with legislative acts;
• Issue certificates on personal, marital and other statuses of citizens; issue other documents established by the legislation; and
• Implement other functions stipulated by legislative acts.

Territorial public self-government bodies may be formed in the territories under the local Keneshes to solve certain local questions. The above bodies are voluntary associations of citizens residing in the territory. The following associations (groups) are classified as territorial public self-government bodies: councils and committees of city districts, groups in large housing complexes, street, block and ale committees, as well as other voluntary bodies (associations). The powers of local public self-government bodies are established by the Keneshes. These bodies are registered by the appropriate Kenesh and may be delegated the rights of legal entities. The above bodies are subordinate to their electors and the Kenesh and function in close interaction with public associations (public, political and other civil society organizations) with whom they can enter in contractual relationships.

Public groups and associations participate in the work of local Keneshes, as well as in the process of acceptance of social infrastructure (buildings, constructions and premises), renovation and cleaning of the territories, assist in the execution of Kenesh and local state administration, prepare various recommendations to local Keneshes and local state administrations (as well as to state administrative bodies, economic entities, organizations and agencies) on the questions of territorial competence. Besides, public self-government bodies control compliance over the construction and architectural regulations, housing utilization, housing maintenance, fire safety and sanitary norms, rational land utilization and water utilization, historical monuments maintenance and protection, etc.

As a legal entity, a territorial public self-government body may open bank accounts, including foreign currency accounts, independently implement economic and social development policy, for which purposes they may form self-financing divisions. In addition, territorial public self-government bodies may form small businesses, co-operatives, clubs, amateur groups, entertainment centres, etc. which can interact with local Keneshes, local state administrations, economic entities and other organizations on a contractual basis. Likewise, they may purchase various services in the social infrastructure, for which purpose local budget and independent financial resources may be used. Buildings, premises and non-residential buildings owned by the Kenesh, may be leased by territorial public self-government bodies. The structure and staff of local self-government bodies, as well as work compensation procedures, are determined by decision of the general meting (conference) of local citizens. Economic entities subject to jurisdiction of a certain local community are created and transformed in coordination with the local self-government bodies or its officers.

Economic resources of the local self-government are land, its depths, water, forests, flora and fauna, as well as all economic entities and organizations regardless of their form of ownership, situated within the related territory. However, the objects of the communal (municipal) property were not initially transferred to the local self-governments. Therefore, belonging to virtually nobody, they were left without an owner and a proper care. Due to the above, in October 1997, the Local Self-Government and Agricultural Reform Department initiated the transfer of local infrastructure and selected state properties to local self-governments. Local needs and financial capacities of local self-governments will be accounted for while transferring properties. In certain cases, the responsibility of maintenance and supervision of certain cultural and historical monuments may also be transferred to local self-government bodies. All of the transferred properties can only be used for their initial purpose. Local departments of state administration may assist local self-governments to develop other properties to achieve financial and economic independence.

Local Keneshes and local state administrations may, on a contractual basis, assign certain of their functions to local public self-government bodies (such functions include social and economic development of the territory, economic management of business entities, housing and non-housing funds) as well as delegate a portion of their financial, material or other resources to them.

Local Government Finances

Local governments have their own budgets comprising of revenues, credits and subsidies, local taxes, fees and charges, as well as by other revenues whose collection does not contradict legislation. The main local tax is the land tax. Land tax rates vary in different oblasts: in the Osh Oblast where land is scarce the land tax is 1000 Soms per hectare of land. In Naryn Oblast land tax amounts to approximately 300 Soms per a hectare of land. In accordance with the Tax Code, local Keneshes have been enabled to establish local taxes. Currently there are sixteen taxes, namely:

• Tax on citizens who grow flowers for sale;
• Hotel tax;
• Tax on health resorts;
• Tax on private service industries;
• Tax on entities (individuals) using national symbols;
• Tax on non-utilized production premises;
• Hunting and fishing tax;
• Tax on advertisements;
• Casino tax;
• Retail tax;
• Tax on Kyrgyz tourists;
• Tax on garbage removal;
• Parking tax;
• Auction and lottery tax;
• Tax on dog owners; and
• Capital gains tax.

The main purpose of these taxes is to strengthen the financial basis of local self-governments, increase local budgets and execute various community-based programmes. It is necessary to point out that local Keneshes may adopt only those taxes that suit the needs of the community. For instance, taxes on casinos, tourists and health resort are only relevant in certain areas and regions. Local budgets are besides other things used to maintain cultural, housing, communal and social infrastructure, extend subsidies and help the aging and low-income population. Local self-government is committed to satisfying basic needs of its citizens so that at least the minimum social standard established by state administrative bodies, is maintained. In the event local budget is unable to satisfy the minimum social standard of living, state bodies may release, for the benefit of local budgets, other sources of national budget revenue.

Preparation of the local budget

Local state administration prepares a draft budget on an annual basis. Then the draft budget is submitted to the appropriate Kenesh for approval and is implemented. National or regional bodies may not interfere in the process of development, approval and implementation of local budgets. National government may intervene when Keneshes of higher territorial levels do not release the established amount of funds from central tax collection and other revenues to the local government. The minimum local budget is determined on the basis of the budget normative requirements (per capita) established. The financial basis of the territorial public self-government bodies comprises voluntary or charitable contributions of the citizens, companies and other economic entities, by agencies and organizations. In addition, they are allowed to use revenues collected during public events organized by them. Territorial public self-government bodies independently use their financial resources in accordance with their purpose, including those for maintaining territorial self-government.

Interaction between local self-government and local state administrations

Activities of the local self-government and local state administrations are implemented on the basis of the following principles:

• The will of citizens is declared through local Keneshes, territorial public self-government bodies and through other forms of democracy;
• Protection of the rights and interests of the citizens as established in the law;
• Social justice;
• Compliance with the law;
• Openness and transparency of operation, accountability to the public opinion;
• Combination of local and state interests;
• Separation of functions and powers of the representative and executive and administrative bodies;
• Election of local Keneshes and territorial public self-government bodies; accountability to the citizens; selection of the heads of local state administrations;
• Collegial decision-making, free discussion and resolution of questions; and
• Independence and responsibility of the local Kenesh and other local self-government bodies for the local policy.

Local self-government bodies and local state administrations work in coordination and cooperation with economic entities and public associations in their respective territories and ensure all necessary conditions for realization of all the constitutional rights for participation in the management of the state and public affairs. Superior state authorities may not interfere in decision-making on the questions in the competence of the local self-government bodies. For consultative and expertise purposes in decision-making on territorial questions, local Keneshes may invite representatives of appropriate ministries, state committees, administrative agencies and local state administrative bodies. Local state administration ensures the enforcement of the constitutional rights, freedoms and interests of citizens in compliance with presidential and governmental as well as discipline and public order. Local state administrations submit local budget proposals to the local Kenesh for approval, implement local budgets, facilitate tax collection and timely social security payments, collect fines assessed on economic entities regardless their form of ownership and control compliance with environmental, land and natural resource normative and legislative acts, sanitary norms and regulations. Besides, local state administrations may suspend construction or functioning of industrial enterprises if these are undertaken without coordination with the appropriate local state administration and coordinate utilization of local human resources.

In addition, local state administrations ensure employment of local citizens and social protection of low-income families. Local state administrations may acquire social and industrial loans, invest in bank deposits and issue securities, local loans and lotteries. Local state administrations also prepare aggregate territorial financial balances. Activities of local state administrations are supervised by the suggestion of the Prime Minister upon approval of the candidate by the appropriate Oblast Kenesh. The citizens of Bishek elect the Head of Bishkek municipal state administration or the Mayor of Bishkek from the candidates suggested by the President. Similarly the Prime Minister, subject to the approval of the local kenesh appoints heads of lower level local administration (city and district administration). Local Keneshes approve the appointments of lower staff recommended by the heads of local administrations.

In the event of improper execution of their responsibilities, or committing a wrongdoing, the President or the Prime Minister, depending on the territorial level as described above, may dismiss a head of local state administration. At the same time, two thirds of the total number of deputies of local self-government bodies may express a no confidence vote to the head of local state administration and appeal for his or her dismissal. In such a case, the President or Prime Minister must make a decision and inform the respective Kenesh within one month.

Heads of local state administrations ensure the rights, freedoms and legitimate interests of the citizens of their territories and prepare a report on the situation in the territory to the local Kenesh at least once a year. The President or the government may revoke normative acts issued by the heads of local state administrations. Heads of local state administrations may revoke normative acts and instructions issued by Chairmen of respective primary Keneshes. The head of the local state administration approves local administration's staff schedule independently. In order to render a decision on the most important questions pertaining to the executive and administrative activities of the local state administration a consultative and counselling board may be established whose composition the head of the local state administration approves. The heads of the local state administrations may not act as Kenesh deputies, accept any paid positions in other state administrative bodies, public associations, companies, organizations and agencies, be involved in entrepreneurial activities, serve the management and other boards of organizations or agencies subsidized by the local budget; receive any income and/or single/regular compensation from companies and organizations fully or partially financed by the local budget nor receive any tax or financial benefits.

The Way Ahead

Transition to the market economy prompted an active development of democratic institutions in the republic, which in turn has lead to the development of the local self-government bodies. As a result, Kyrgyzstan has initiated the reform of the local self-government. The purpose of the reform is to transfer or delegate certain of the central powers, to the lower levels of the state administration. Today the course of the reform is not quite smooth. The time of transition is characterized by inevitable complications and inherited ideas. However, the local self-government reform has made significant steps towards the creation of the appropriate legal, economic and social environment to ensure a successful functioning of the local self-governments. Gradually, people are getting used to the idea that local self-government is an important basis of democracy. At the present stage of reform, the government and its subordinate structures have received a lot of support. State and local self-governments co-exist in the same public and political environment; their functions overlap and assist each other. On the whole, strengthening and development of the local self-government is one of the most important aspects of decentralization and democratization.

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