Kyrgyz Republic is the second poorest country in central Asia with GDP per capita of $880. The economic base is narrow, fragile and dependent on remittances (which represented 35% of GDP in 2012), trade and transit. Social indicators are poor. Ethnic tension, often mobilised by political par ties and other groupings, has periodically derailed economic growth. The national poverty rate has reduced to 38%, but with negligible improvement since 2009. Economic and democratic gains have not been consolidated and risk reversal. After the 2010 revolution the Kyrgyz Republic established a Parliamentary Democracy, the only one in the former Soviet Central Asia. Political parties are not yet sufficiently familiar with this model to make it work efficiently. Robust debate and challenge between parties and factions within Parliament has contributed to delays in enacting much needed reforms.
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