Debureaucratizing Kyrgyz economy: from regulatory guillotine to new culture of governance

Economy Загрузка... 08 December 2025 10:24
gossluzba2.max-2560x1440.format-webp.jpegquality-90.webp

A new model of economic governance is gradually taking shape in Kyrgyz Republic — less bureaucratic, more transparent, and focused on outcomes.

A new wave of reforms: from concept to sustainability debureaucratization initiative has Kyrgyz Republic become one of the most ambitious governance reforms of the past decade. Unlike earlier campaigns, it was conceived not as a temporary effort, but as a new management philosophy embedded within the state apparatus.

The reform began with the systematic work of the Ministry of Justice, the first to raise the issue of how excessive bureaucracy slows the development of public services. Drawing on international experience and modern management practices, the Ministry designed and introduced a new model of internal processes within its own system.

The Ministry of Justice’s example — where digitalization and new work standards were implemented within a short timeframe — became a convincing argument for the country’s top leadership: the state machinery can evolve when given the right strategic impulse.

The reform culminated in the Presidential Decree of March 10, which tasked the Ministry of Justice with launching a systemic debureaucratization effort. The Minister himself went on to lead the National Institute for Strategic Initiatives (NISI) under the President of the Kyrgyz Republic and temporarily assumed the position of Deputy Chairman of the Cabinet of Ministers.

Early steps and resistance within the system

NISI’s Deputy Director, Shumkarbek Adylbek uulu, shared that at the beginning the team questioned whether it would be possible to overcome the inertia of the state apparatus.

1730095900_shu.max-2560x1440.format-webp.jpegquality-90

“We understood that the hardest part was not rewriting regulations, but convincing civil servants that change was necessary. Bureaucracy is not paperwork; it is a mindset. It suppresses initiative and energy,” he said.

To ensure a structured analysis, an Interagency Commission on Debureaucratization was established under the leadership of the Chairman of the Cabinet of Ministers, Adylbek Kasymaliev, while NISI assumed a special analytical and coordinating role.

The Institute began performing an “audit-consulting” function: visiting government agencies, identifying overlapping functions, administrative barriers, and gaps in digitalization and outsourcing.

“We understood that agencies rarely admit inefficiency. We had to pull the problems out of them, sometimes even push solutions forward. But the results were worth it. Within a short time, the commission adopted a record number of decisions, and the President signed an unprecedented package of regulatory acts (note: 20 laws, 20 Cabinet decisions, 6 decrees),” the NISI Deputy Director emphasized.

Breaking habitual barriers

The economic component of the reform became central. As Shumkarbek Adylbek uulu notes, the essence of the reform is not only to reduce business costs, but also to dismantle the long-standing mechanism of “collective irresponsibility” that for decades shaped the behavior of the bureaucratic apparatus.

“We became accustomed to the idea that any document must pass through a commission, a review, and a signature. As a result, no one bears responsibility, while entrepreneurs lose time and money. Now the emphasis is shifting toward personal accountability of authorized officials, and this is a fundamentally new approach.”

According to him, bureaucratism long served not only as a tool of control but also as a form of protection for civil servants. “I’m not the one who decides, the commission does” was the excuse that stalled decisions and created corruption risks. The new policy demands a different behavior model: fast, responsible, and grounded in data and digital tools.

Reducing excessive procedures

One of the most tangible outcomes of the reform has been the large-scale simplification of licensing and permitting procedures. Zhainagul Azamatova, Head of the Business Environment Policy Department at the Ministry of Economy and Commerce, explains that the process began with removing the most obvious barriers: notarized confirmations, coordination commissions, and redundant certificates.

17115344946603.max-2560x1440.format-webp.jpegquality-90

“We eliminated the requirement for notarization; now a legal entity can certify a document with its own seal. We removed coordination commissions that had become a bottleneck in decision-making. Responsibility now rests with the state body itself, and processing times have been reduced several-fold.”

A key step was the implementation of the so-called regulatory guillotine, a full review of the entire system of permits and authorizations. Of the 905 documents identified in the state register, only 496 remained after analysis, and more than 200 were submitted for optimization.

“If a government agency cannot justify why a document is necessary, it must be abolished. That is the essence of the guillotine principle,” explains Zhainagul Azamatova.

As a result, the state is dismantling a multilayered system of approvals, overlapping functions, and excessive requirements. This is not merely “cleaning the archives,” but a fundamental restructuring of the governance model.

Balancing control and trust

Uluk Kadyrbaev, Head of the Secretariat of the Investment Council under the Cabinet of Ministers, emphasizes that debureaucratization does not mean anarchy or weakened oversight. On the contrary, it requires a more mature and accountable system of public administration.

482985296_9497.max-2560x1440.format-webp.jpegquality-90

“Reducing bureaucracy is possible only where clear digital processes are in place. Automation is not just convenience; it is a guarantee of transparency. When the system records every action, a civil servant no longer feels the need to insure themselves with commissions and signatures.”

According to Uluk Kadyrbaev, digitalization and debureaucratization are two interconnected processes that must move in sync. Kyrgyz Republic is already heading in this direction: unified platforms for licensing, registration, and certification are being introduced. This not only reduces time and costs but also shapes a new business culture — one built on trust, yet subject to oversight.

Bureaucracy as a growing pain

Businesses in Kyrgyz Republic, as acknowledged by Sergey Ponomaryov, President of the Association of Markets and Services, operate under unstable rules.

“Every time, some government agency invents new rules for doing business. It’s extremely difficult. Regulators always mean more bureaucracy.”

1220557_Wx4AKo.max-2560x1440.format-webp.jpegquality-90

According to him, the country lacks not only stable economic benchmarks but also a regulatory strategy that would clearly define the relationship between the state and entrepreneurs. Instead, businesses face “mini-laws” issued by each agency, which appear faster than they are repealed.

“We see political will at the top,” Ponomaryov says. “The Ministry of Justice is working actively and listens to the business community. But bureaucracy is not just paperwork.

These are thousands of connections, procedures, habits. You cannot abolish them with a single decree. That is why it is essential not only to change regulations but also to encourage a new management culture within state institutions.”

Economic impact and investment climate

Experts note that the debureaucratization reform is already yielding tangible results. Reducing administrative barriers directly affects the country’s investment attractiveness.

Zhainagul Azamatova emphasizes that the goal of these measures is not only to make life easier for entrepreneurs but also to create conditions in which investors feel confident in the predictability and transparency of decisions.

“When every government agency operates under unified rules, when procedures are clear and timelines transparent, it sends a signal to investors that the system works — not mere chance.”

Shumkarbek Adylbek uulu shares this view: “An investor does not need personal contact with an official if everything is resolved online. And that is the core purpose of debureaucratization — eliminating space for subjective influence.”

According to Sergey Ponomaryov, the success of the reform depends on two factors: the competence of implementers and the transparency of procedures. The fewer reasons an official has to “protect themselves with paperwork,” the lower the risk of arbitrary decisions for entrepreneurs.

As Uluk Kadyrbaev notes, in the coming years it will be essential to solidify the results achieved through civil-service training, the development of analytical centers, and continued digitalization.

Looking ahead: a new culture of public governance

Debureaucratization in Kyrgyz Republic goes beyond a purely economic reform. It is becoming part of a broader transition: from agency-centric thinking to a model of responsible governance.

Thus, the debureaucratization reform in Kyrgyz Republic economic sector has already moved beyond being an administrative experiment. It has become a long-term transformation that reshapes the very logic of public governance: from endless approvals to personal accountability, from paperwork to digital systems, from bureaucracy to efficiency.