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AGRICULTURE > Assessment of Global Crisis Impacts An Assessment of the Impacts of the Global Financial and Economic Crisis on the Agro-Food Sector of Kyrgyzstan
In recent decadesthe agro-food sector has become not only more globalized through international trade, but also more integrated into the modern financial system. Consequently, agro-food is to become more a subject to the exogenous fluctuations and changes originating in the external macroeconomy and depend on the strength and depth of its linkages to the financial system and the global economy. In other words, international financial and economic crisis differently influence on the agro-food sector of different countries, and Kyrgyzstan is not an exception.
Agriculture is not only the backbone of the national economy of the Kyrgyz Republic, but it also serves as an important source of livelihoods for the rural population. The agricultural sector makes up about 40% of shares in total GDP structure of the Kyrgyz Republic, whereas more than 750 thousand people of economically active population are involved in agro-food production.
Project aim In spring 2009 the Food and Agricultural Organization of the United Nations has decided to finance the research study aimed to assess the impacts of the global financial and economic crisis on the agro-food sector of countries: Kyrgyzstan, Hungary, Armenia and Ukraine.
In order to get an overall view of the agro-food sector, there were selected two subsectors - one was from the crop production and second was from the livestock farming. Fordeterminingthelevelofeconomicdependenceofagro-foodsectoronthe global financial land economic crisis, it was decided to select three agricultural supply chains: wheat, sunflower and milk. The choice was justified by the substantial share of these agricultural supply chains in total proceeds of production and trade.
Project area The research in Kyrgyzstan, which was implemented by the RDF team, commenced in July, 2009 and was completed in three months. The research has covered 4 oblasts (Chui, Osh, Jalalabat and Issyk-Kul oblasts) of the Kyrgyz Republic, including 5 cities and towns and 18 villages.
Besides other data collection tools utilized in the course of the research, the in-depth interview with the stakeholders of the selected agro-food chains was used as the main research instrument. Researchkey questionswerefocused not only ontheprocessesofproduction, consumption and trade, but also on effects of the economic downturn, indirect or direct credit constraints. There were conducted more than 75 in-depth interviews with different agricultural producers, leading input suppliers, processors, integrators, traders, retailers, representatives of banks and governmental sector.
Project results The main trends of development and changes in agro-food sector of Kyrgyzstan, which were evolved by the impacts of the global financial and economic crisis, were found out at the very end of the research. In addition, there were worked out the recommendations and policy options for the FAO and public authorities to lessen the undesirable effects of the current or future financial and economic crises on the agro-food sector.
A pre-arranged final synthesis report based on analytical reports of participant countries (Kyrgyzstan, Hungary, Armenia and Ukraine) was prepared by the Research Institute for Agricultural Economics (AKI, Budapest) and available by request on general@rdf.in.kg. |
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Rural Development Fund 102-104, Toktogul Street, Office 1 Bishkek, 720040, Kyrgyz Republic Phone: +996 (312) 976 100 Fax: +996 (312) 976 103 E-mail: general@rdf.in.kg |
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